[Cayman360]

Originally Posted by sgiitk

@Cayman360; Look at three years the numbers are very high. More appropriate look at five years. All in my folio are 6%+. This is with no tax liability, so is effectively about 9%. Not bad for a depression period.

Yes, well the last 10 years have been great for the mutual fund returns, and the reason why I did begin to invest last year. Then again, no guarantee of high growth in the coming years, so the next 3 year returns could very well not be so high. I'll be happy with 12-15% odd, tax free

However, a comparison of funds of the same type (say large cap) for 2011 gives one an idea about how each of them reacts to a downturn in the market. Of course its no indication of the future long term returns.

[sgiitk]

I looked into my portfolio. The Equity return over 5 years rages between 4.75 and 17.37pa. The median and typical value is about 8.5. For three years I am seeing a rang from 15.07 to 32.71. The average is about 25. I have been in MFs for over a decade and overall I have averaged well over 10%.

One area I have learnt (at my cost) to avoid is the Infrastructure (esp. construction). As one analyst put it is that by and large the balance sheet is fictitious (cost of land) so one cannot trust anything. I have been investing in high rated (3*+, mostly 4 & 5) funds and using www.valueresearchonline.com as my guide.

I was surprised to find the similarity in the portfolios of Giant and Large cap funds. So one is as good (or bad) as the other. I am now slowly reducing the number of funds in my portfolio. In addition to Dhirendra Kuamr's site I maintain a spreadsheet to keep track, updating it once a week. NAVs of most funds (Franklin Templeton is an exception) can be obtained from www.camsonline.com either there or through e-mail.

One other point brought out by a Insurance manager. The minimum percentage of your assets which should be in debt, FDs etc. is the same as your age!

[sgiitk]

With inflation down to 7.47% expect some serious action in debt funds. Every reason to believe that the RBI will cut the CRR. I expect the valuations of bonds to go up, with corresponding returns in debt funds. I put in some money into Debt on on Saturday, so should be actually placed today. I do not know whether I mentioned this or not at one time I made 14.5% in Debt funds, that too when they were also not taxable!

[faustus77]

Sgiitk
Hi your posts are very informative.Thanks
AFAIK equity and balanced funds with 65%+ of equity are tax free if held for more than a year.
Debt funds are taxable.Could you please recheck and advise.
The reason I checked was that I wanted to invest for my daughter in an equity/debt fund.HDFC prudence has an excellent track record but has less than 60% equity.I have to check the tax implications in case of gains.
Aware that dividend declared in the hands of the recepient is tax free.
Regards

[sgiitk]

@faustus77; you are correct. In the DTC the FM proposed to tax dividends from Equity and Equity oriented funds.

Prudence allows itself to stay 40-75 percent in Equity but has never lost its Equity Oriented rating. So I guess they stay 65%+ in Equity overall.

[faustus77]

Sgiitk
Hi
On 16th of January,page 11 economic times article by shalesh menon
"excellent oppurtunity reliance and tata steel $ bonds avlbl at 8.5 to 9 % yield You buy and sell in $ no exchange risk"
Do you have any idea about these bonds.They seem to be good.Any idea where are the traded?I tried google, bing and SGX.com but couldnt find a link.
Please reply
Thanks and regards

Moderators: it is a bit off topic as it has nothing to do with mutual funds but I could not find any other thread where I could post a query on bonds.My apologies.

[sgiitk]

@faustus77; You add the currency risk. Most projections I have seen of later (incl the Big Bear - Shankar Sharma) talk of the rupee improving to Rs.47/48 per dollar in the medium term.

[faustus77]

Originally Posted by sgiitk

@faustus77; You add the currency risk. Most projections I have seen of later (incl the Big Bear - Shankar Sharma) talk of the rupee improving to Rs.47/48 per dollar in the medium term.

Sgiitk
Thanks your reply.These are $ denominated bonds.Nothing to do with the Indian currency.Traded on SGX(at least that is what i could gather).Please look up the article.
Incidentally other than the psychological level of rs 50 the technical level is 49.I too heard him.The rupee has appreciated as the government allowed NRE deposits to carry higher rates.
Regards

[Reisender]

Dear Sgitk sir... Quick question on my portfolio.
Plan is for long term with moderate risk appetite

Want to know if this is a balanced and performing funds...
I gave ECS instructions for 2 years alone and will continue based on the performance.
SIP's
-------
1) Reliance RSF Dividend - 1000
2) HDFC Equity (G)- 1000
3) HDFC Prudence (G) - 1000
4) IDFC Premier Eq Plan A (G) - 2000
5) ICICI Pru Dynamic Growth (G) - 1000
6) DSPBR Top 100 (G) - 1000
7) Reliance Gold ETF - 1000

Your suggestions please...

Thanks for your time..
R

[Amazing]

Originally Posted by sgiitk

With inflation down to 7.47% expect some serious action in debt funds. Every reason to believe that the RBI will cut the CRR. I expect the valuations of bonds to go up, with corresponding returns in debt funds. I put in some money into Debt on on Saturday, so should be actually placed today. I do not know whether I mentioned this or not at one time I made 14.5% in Debt funds, that too when they were also not taxable!

Sgiitk,

I really value your inputs on this MF related area where honestly I dont understand much and go mostly by what collegaues/ friends suggest.

Can you please suggest a few reputed ( I mean Safe) and high return ( past record based ) Debt funds where I can sort of park my small amount of 'idle cash' for a duration of 10 years or so ?

I have a few funds from HDFC and Fidelity...all equity and ELSS based.

Have a good day!

[sgiitk]

@Reisender; By the looks of it you have an excellent portfolio. I do not have any experience with Reliance (never trusted the bunch). One fund you can consider is the IDFC Premier Equity a star performer at the moment. They are currently only accepting SIPs. You may have to be fleet footed with Gold. I suspect $2000+ will be a sell trigger for me.

@Amazing; The three debt based funds I am currently in are IDFC SSIF (Medium Term) which is pure debt, and Templeton Pension (not doing so well, but has 80C benefits, at least for now) and DSPBR MIP (used to be Savings Plus-Aggressive).

IDFC used to be the Grindlay's SSIF. In fact the fund was floated by Grindlays, then became StanChart who sold it out to IDFC. There are various plans, the best appear to be Investment Plan (IP) or the one I am in. The maturity periods of the holdings are about the same. I have also used their Floater & Dynamic Bond in the past. I am sure there are many others but I have no experience. Mr Andrade is considered by many to as the guru of Mid & Small Caps.

I will stay with not more than one or two funds, since in the long run all well managed funds do about the same.

[faustus77]

Sgiitk
Hi
Regarding your comment on Reliance mutual fund in the above post:
Their assets under management have reduced from 101576 crores(jan-mar) to 82305 crores(oct-dec) wheras HDFC has 86282 crores to 88628 crores.This is per todays economic times.
Regards
PS: Did you read the article of 16th Jan?

[Rameshdude]

I have been investing in 7 different Mutual funds (Rs 5000/ in each) for the last 3 years. It has all gone into the negative now. My initial plan was long term,that is for 5 to 10 years. My consultant advises me to continue with the same. What is your take in it? Thanks

[sgiitk]

@Rameshdude; I agree with your advisor. Just check that your funds are well rated.

[mazda4life]

Originally Posted by Rameshdude

I have been investing in 7 different Mutual funds (Rs 5000/ in each) for the last 3 years. It has all gone into the negative now. My initial plan was long term,that is for 5 to 10 years. My consultant advises me to continue with the same. What is your take in it? Thanks

If its ok with you, can you share the details of your portfolio ?