|
| Why you should invest |
| BS Research / Mumbai Aug 15, 2010, 00:49 IST |
|
I put Rs 10,000 via systematic investment plan (SIP) every month in: DSPBR TIGER, HDFC Top 200 and Sundaram Select Midcap. I put Rs 7,500 in HDFC Prudence and Birla Sun Life Frontline Equity Plan A. I plan to stay invested in HDFC Top 200 and HDFC Prudence.
However, I plan to switch from DSPBR TIGER to DSPBR Small- and Mid-cap or DSPBR Equity (multi) or DSPBR Top 100 Equity (large). Please suggest the best. Are Sundaram Select Midcap and Sundaram BNP Paribas Select Midcap the same? Should I stay invested in Birla Sun Life Frontline Equity Plan A?
-Vijaya Ramachandran
Let's tackle the simplest one first. Yes, Sundaram Select Midcap and Sundaram BNP Paribas Select Midcap are same. Now, your portfolio.
You seem to have a distinct lack of focus. Going by your questions, one cannot help but surmise that your investments were done in an ad hoc fashion. You plan to exit from DSPBR TIGER, why? Are you no longer in favour of your investment being in a thematic fund? Have you given up on the infrastructure sector? Or are you just upset the fund has not done well in a while? While we are clueless as to why you are exiting, there seems to be no rationale in your suggested options, other than the fact that they are from the same fund house. Here are our suggestions on your portfolio.
I am 28 years old and want to invest in an equity fund for 20 years . I am willing to go with an SIP of Rs 5,000/month. Suggest a stable fund house which can be trusted.
-Pavan G
We appreciate your determination to start investing early and consistently. Even if you do not increase the investment limit, though we strongly recommend that you do so every year, you would have Rs 49.95 lakh after 20 years (assuming return at 12 per cent a year).
You asked for a recommending a stable fund company, by which you imply a scheme recommendation, too. You can be sure no fund house is just going to collapse or disappear. The Securities and Exchange Board of India (Sebi), does a good job of protecting investor interests. There have been buyouts in the past where the schemes are transferred to the new owner, but no collapses which have left investors in a quandary.
We suggest you invest in any two diversified equity schemes from the selection given and do an SIP of Rs 2,500 in each. It would be wise to opt for a large-cap fund and a large- and mid-cap fund.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
