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Which MFs can get you maximum profits

November 09, 2007 15:27 IST
Do things like mutual funds baffle you? Are you aware of the investment options they provide? What are the best mutual funds available in the market? Which funds accrue maximum profits? What are the crieria for evaluating a fund?

Which funds provide the best SIP options? Are SIPs the easy way of making quick bucks? When and how should one buy mutual funds?

To get answers to your queries, speak to mutual fund expert Rahul Goel on November 8 at 1 pm.

Rahul Goel says, 
Good afternoon! Wish you all a very Happy Diwali! Let's start the discussion...

sampat asked, i am sampat,happy diwali to all of u. i have invested in jm basic div-reinvest,DSP-ML tiger div reinvest. but growth option of both funds have returned much better return comparative to div. should i switch to growth?
Rahul Goel answers,  at 2007-11-08 12:58:38sampat, hi. more important than whether you should be in the growth or div reinvestment option is whether you are invested in the right schemes! for most investors, rather nearly all, its best to invest in well-managed diversified funds only. with regards to being in div or growth option, that should depend on your need for capital. if you need money, then opt for the div option; else go in for growth.
qazi asked, HI WISH U HAPPY DIWALI In your earlier chats you mentioned word core funds what does that mean? can u explain please
Rahul Goel answers, qazi, hi. core funds would mean those which would form the largest and most important chunk of your portfolio. this would comprise funds which are really the best suited for you, and where the risk return tradeoff is firmly in your favour.
pritam asked, I've invested in DSP ML Small and Mid Cap Fund, Sundaram Rural India Fund and ICICI Equity Derivatives Fund all Growth Options are they good funds pls advice
Rahul Goel answers, pritam, hi. well, these are sectoral/thematic funds (the first two). if you understand the risk that comes along with sector funds then good. else, you should take a relook at your portfolio.
pradeep asked, Hi, In the view of volatility of market, is it advisable to invest now or wait for some time and study.
Rahul Goel answers, pradeep, hi. if you have appetite for risk then you may want to invest at one go. however, a better strategy would be to space out your investments over the next several months. SIPs and STPs are a good option.
sampat asked, i am planning to but 24 carat gold. is it useful to invest in gold or to invest in ulip for 10-12 years through sip. ulip is icici flexi cap pension plan
Rahul Goel answers, sampat, hi. gold off late has become very popular amongst investors due to the spurt in prices. however, you need to be careful about where you buy gold from. we recently did some research and it was eye opening... you can see it here - www.personalfn.com%2Fgold' target='_blank'>www.personalfn.com/gold
dolphy asked, Is it worth investing in reliance diversified power sector fund?
Rahul Goel answers, dolphy, hi. power sector funds are very popular these days. the most rational of investors are tempted to put in some money. however, in our view, one should avoid such funds. in any case well-managed diversified equity funds may own power stocks in their portfolio if it meets their investment criteria. why invest in funds where the money has to be invested in a particular sector. this could work against you when the cycle for power stocks turns.
BINOD asked, is there any mutual fund which gives guaranteed returns
Rahul Goel answers, binod, hi. mutual funds do not give guaranteed returns. if someone has told you that they do, beware!
sam asked, hi,let me know the future of standard charter premier equity as it is hot in this year. i want to invest 5k in this month. plz let me know the any colsed ended fund.
Rahul Goel answers, sam, hi. as a rational investor you should not be investing in what is hot. you should be investing in instruments which will deliver you the desired return over the time frame you wish to invest for. and also why do you wish to invest in a close ended fund? it may be best to invest in the well-managed diversified equity funds which have been there for many yesrs now and consistently delivered.
vishalgawand asked, hi rahul its vishal here.i hv observed dat a one time investment proves fruitful than SIP considering identical returns say 15%.then y shud 1 go 4 SIP
Rahul Goel answers, vishal, hi. you are right. but this would hold true only in a rising market. if the markets were volatile or if they were to fall, then SIPs would be far better. and given the fact that no one knows where the markets are headed, its best to go in for SIPs.
Moneysh asked, Hi Rahul ! Happy Diwali… is it safe to invest in funds with concentrated holdings? can u please name a few good funds who have concentrated portfolio yet they have performed well and worth investing..
Rahul Goel answers, hi, as long as you understand that funds with concentrated holdings are more risky per se it is ok. for example hdfc equity fund is a lot more concentrated as compared to hdfc top 200. your portfolio of funds should refect your preference for risk. best is to have a mix of both.
Rahul Wavhal asked, in present days when market is at peak, where I can go and invest money for tax rebate? Pls. let me know
Rahul Goel answers, rahul, hi. we still think that over a three year time frame the stock markets offer an attractive investmetn oppotunity. if your allocation permits, then you should consider tax-saving mutual funds.
mike asked, Hello Rahul, what is your view for investment in icicipru dynamic and sundaram capex fund?
Rahul Goel answers, mike, hi. if you were a personalfn client, we would not have recommended either fund to you. we do not recommend sectoral funds or funds which undergo a change in mandate as it beings in an unnecessary element of uncertainty from a future perspective. we prefer funds like hdfc equity and fr india flexicap.
Anwar asked, Dear Rahul, is it the right time to re Invest in MF's...
Rahul Goel answers, anwar, hi. anytime is a good time to invest. just select the schemes well and suit the mode of investment (lump sum or SIP) to your appetite for taking on near term risk.
Ashok asked, Good afternoon, Sir, I would wish to know as to which sector funds would be more investment worthy for the next 2-3 years ?
Rahul Goel answers, ashok, hi. let me turn the table and ask you why you wish to invest in sector funds in the first place?! are you not familiar with what happened to tech funds and pharma funds in recent history?
Abhik asked, Hi Rahul, I wanted to know a few things reagrding investment in ELSS.I have selected HDFC tax saver, SBI Magnum Tax Gain,Franklin Indai Tax Shield. Do u think the selection is good? How much should i invest in each of teh scheme % or amount wise? I have arnd 60000 to invest dis fiscal in mutuasl funds. What kind of term insureance should i opt for? I mean covberage and no of years wise?
Rahul Goel answers, abhik, hi. hdfc tax saver and fr taxshield are funds we tend to recommend to our clients. you may want to split the monies evenly between the two. with regards to insurance, opt for pure life insurance. take a large cover, which will cover all your family's needs till you are about 55 yrs of age. pure life cover is very affordable.
Anvita asked, whether to invest in share or Mutual fund?
Rahul Goel answers, anvita, hi. the answer would depend on your skill and also the time you have. if you have neither or any one, but not both, then mutual funds are best for you.
nileshb18@rediffmail.com asked, ok , happy diwali to u also. pl guide me abt financial planning.
Rahul Goel answers, nilesh, hi. that's a very broad question! here's a short cut :-) pl download our financial planning guide from www.personalfn.com%2Finvestment%2Fms' target='_blank'>www.personalfn.com/investment/ms
anurag asked, Hi Rahul i have invested 90% in equity and 10% in mutual funds. IS that a right combination or do I need to trim down the equity exposure
Rahul Goel answers, anurag, hi. your allocation suggests that you have several hours a day to track your investments in shares and also identify new opportunities. if that is not true, then you should be investing a lot more in funds.
rahul garg asked, hi rahul ,my father has invested in sbi bluechip mutual fund . can u tell me about the likely future trend of these MFs.
Rahul Goel answers, rahul, hi. this is one of those nfos which has not really met the expectations of the investors. you should discuss this in detail with the person who advised to invest in this in the first place.
dr.rajeev asked,  can you tell how long infrastruture funds will run
Rahul Goel answers, well, frankly, i do not have an anwer to that. all we know is that in the past sector funds have been poor performers over the long term as compared to the diversified equity funds. classic examples here are the tech and pharma funds.
Prakash asked, Hi I, am Doctor on monthly salary of about 63000,Montly EMI loan towards different stuff goes to 30,000.I have Birla sun life insurance/Lic for wife & daughter.I'm 32 yrs old any suggestions for further investment.
Rahul Goel answers, prakash, hi. you have taken a ULIP from an investmetn perspective. it would have been much better if you took an investment product for your investment needs. in any case, if you are investing more monies, pl do not confuse insurance with investment.
Anwar asked, My portfolio - ICICI 18%(infrastructure, Pru Index), Reliance 13%(Growth,Equity advantage),SBI 15%(infastructure, Contra), TATA 12%(infrastructure,indo global), Fidelity 11%(Special situation),HDFC 9% midcap opp, DSPML 4% TIGER,UTI 9% India lifestyle,Birla Sunlife international 9%Equity. Please comment
Rahul Goel answers, anwar, hi. yours is a very interesting portfoio as it has only thematic and sector funds. there are no diversfied equity funds! time to take a long hard look at all these investments...
praveen asked, i have sip in dspml technology and birla frontline equity.should i continue with them since their performance has been bad.
Rahul Goel answers, praveen, hi. indeed, being invested in the well managed diversified funds would be more rewarding for you over the long term.
Suresh asked, Hi Rahul, Happy Diwali. I want to invest in a tax saving Mutual funds and guide me what are the better tax saving Mutual funds. Thank you !!!
Rahul Goel answers, suresh, hi. you can consider investing in hdfc tax saver and fr india tax shield.
VIVEK asked, Hello sir, i am 37, businessman with annual income of 5 lakhs have child aged 6. would like to have a proper financial plan to cover hr education expenses, marriage expenses and assured pension for us. thanks.
Rahul Goel answers, vivek, hi. well, its great that you are clear on your objectives. hope you appreciate that for me to be able to guide you on this, i will require more details. if you want personalfn to guide you on this, then pl email all details on info@personalfn.com and someone will be in touch with you.
dutta asked, Hello Rahul, best of Deepavali wishes to you. Hope you are doing fine. I have 3 questions which go like this: 1. Most of Finalcial planners say to invest in 4* or 5* funds. Now suppose after investing for 2 years in one 5* fund, the fund underperforms and becomes say 2*. So do I continue to invest, stop or withdraw the invested money from that fund? 2. I have a home loan to complete in Sep/Oct 2018 with the current interest rate that ICICI offers (11.25). SBI offers 10%. The processing charges and the loan closure charges accumulate almost to 50-60K. I have calculated that with present interest rates I will at most gain 1 month of EMI at the time of closure assuming that the loan from SBI = current outstanding + processing + loan closure charges. So shall I continue with ICICI or switch to SBI? Incase of change in Interest rates which is best option? My outstanding loan amt is 18 L, initially taken for 10 years. 3. What procedure will you recommend to withdraw money invested through SIPs?
Rahul Goel answers, dutta, hi. the answer to your first query is that once you are invested in a fund, it does not mean that you do not track it. at personalfn we track funds in which our clients are invested. and in case there is a change in the long term prospects of the funds then we get our clients to switch... in the last many years, we have not had the chance to recmmend a switch to any of our clients. and we hope this remains true for many years to come!
AmitSharma asked, Hi! I have 1 lac rupees to invest in the share market. But this is the first time I am investing. Which are the best stocks to invest in??
Rahul Goel answers, amit, hi. if you are investing monies for the first time, then be very careful before commiting monies to the stock markets. make sure you have access to the right recommendations. if you wish to read up on stocks, you can visit our sister initiative www.equitymaster.com
Partha asked, Is it wise to invest in Gold ETF? And as the gold price is as per the market, is there any difference fund houses? if yes, then why is there the difference? It should be same
Rahul Goel answers, partha, hi. gold ets do make investment sense for some, but not all, investors. we will need to understand your circumstances well to be able to guide you on this. you can read more on this here - www.personalfn.com%2Fgold' target='_blank'>www.personalfn.com/gold
Rattan asked, Hi , this is rattan here , which are the best mutual funds to invest in.??? and secondly , investing in them will be for long term.??? thanks..
Rahul Goel answers, rattan, hi. you need to identify funds which are best suited to you. not necessarily the best funds! and yes, if you are investing in equity funds, you should be investing for the long term.
ritesh asked, i rahul i am small , but regular investor in MF , my portfolio contains DSP Tiger growth Reliance divesified and rel growth and also TATA infrastucture, can you pl tell me should i do the profit booking or hold and do more investing
Rahul Goel answers, ritesh, hi. you need to be sure whether you are invested in funds which suit you best or not. by being invested in sector funds you have taken higher risk, for which you should have an appetite. i suggest you employ the services of a professional to guide you on your portfolio construction.
Neeraj asked, Should I invest into HDFC TOP 200 and Birla Internationla fund?
Rahul Goel answers, neeraj, hi. assuming you have appetite for risk and are willing to invest for a long term horizon, hdfc top 200 is a great pick.
Vishesh asked, Hi considering current scenario I made a profit booking at ~ 18k sensex levels and have abt 3.5 L to invest which funds do you advise to invest for a long term perspective say 5-10 yrs..
Rahul Goel answers, vishesh, hi. we continue to believe that the long term prospects from the indian stock markets are attractive. however, one will need to either be a smart stock picker or will have to identify fund managers which have that skill. if you have a 5-10 yr horizon, exposure to the stock market should form a significant part of your asset allocation
Sanjeev asked, Hi Rahul, I am 42 yrs old class I central govt employee. All through my life I have been saving in GPF only as I had no knowledge of the markets and mutual fund. With present rise in markets do you advice me to put some portion of my savings in it. I can roughly save around Rs10000/- per month after catering for tax exemptions.
Rahul Goel answers, sanjeev, hi. since you are only starting of now, it is very critical that you get the right guidance. so spend time of finding yourself the right conultant. the long term opportunity is there, but not everyone will benefit from it.
sanjjuu asked, Hi Rahul.. I love learning from U.. Is it the right time to invest in ICICI-Pru Infrastructure Fund or Tata Infrastructure fund with 2 to 3 years horizon.
Rahul Goel answers, hi. frankly, i think such funds should be avoided. invest in diversified funds which in any case have exposure to infra related stocks (if they meet their valuation criteria). there is too much noise around infra funds and that in itself should make a rational investor cautious.
deepak asked, sir i am 37 & having daughter age 9 what investment can u suggest for her studies & marriage
Rahul Goel answers, deepak, hi. build a portflio of 5/6 funds and start sips. avoid ulips to begin with. for yourself take a term insurance plan to cover your daughter in case you were not around.
simon asked, i have invested in ICICI Lime time super mutual fund. What would you suggest? Is it worth or should i withdraw. I have not yet received the document of acceptence?
Rahul Goel answers, simon, hi. this is a ULIP and not a mutual fund. the decision to accept or not it yours. but you should know the product where you are putting in your money!
prasaddixit asked, Hi Rahul, this is Prasad, tell me if I have to invest money today in a Mutual Fund which is the best suited. I can take moderate risk and can hit the mutual fund with Lumpsum amt and also with an SIP.My need is to stay invested for longterm, say for about 10-15 years atleast.
Rahul Goel answers, prasad, hi. since your tenure is clear and your appetite for risk, you may want to inevst in funds like hdfc top 200 and fr india flexicap. have a total of 5/6 schemes in the portfolio; avoid sector funds. as long as you remain disciplined, you will do well! if you do not have the skill to build and then track your portfolio, opt for the services of a professional!
Megastar asked, I am 58 years old and working in a non-pensionable job. I retire at 60. I have 10 lakhs in hand and I have a good risk appetite. How can I get my money earn good returns ?
Rahul Goel answers, hi. if you have appetite for risk, does this mean that the income you need to cover your monthy expenses is already provided for. if you are keen to take risk, then you should have a min invetment horizon of 5 yrs during which you should not expect to earn an income. if this holds true, then you can invest in the stock markets. else, you will need to inevst in instruments like MIPs and post office MIS.
joy asked, what portion of a portfolio should allocated for real esate fund
Rahul Goel answers, joy, hi. for retail investors real estate funds are not yet available as an option. but yes, property as part of your portfolio, should account for about 50%... this on account of the high property costs. our view is that people should buy property for own use and inheritance. not as a investment opportunity... unless the money that can be committed is very large to make diversification in holdings possible.
bhanu asked, im a 21 yr old girl earning 15,000 but havenot started investments pls advise ? which is the best policy for me in lic and icici
Rahul Goel answers, bhanu, hi. if you have not started then all the more reason you should not rush into inevsting. ideally you should be investing in products like mutual funds to being with as against taking insurance. sugget you read up on financial planning on personalfn.com before porceeding.
Ravi1982 asked, Hi Rahul, i can keep aside 70k per month.am contributing to magnum contra, dsp tiger, jm basic,sbi bluechip,reliance vision, frankling prima plus, hdfc equity, fedility equity equally in SIPs.can you please suggest any modifications?do i exit and concentrate only on a few?which ones to exit please?
Rahul Goel answers, ravi, hi. you have some funds we like, and some that we do not. the ones we do not like are the sector and thematic funds. you should consider over time to reducing their combined weight to less than 10%. the core portfolio should be the well - managed diversified equity funds.
sujatha asked, Am 32 years old . Have to plan for my retirement life . I would like to keep aside some amount for the same . Do you advise investing the same in Mutual Fund ?
Rahul Goel answers, sujatha, hi. planning for retirement is very critical. you need to be clear on details like your monthly expenditure to sustain your standard of living and details of your existing assets. Based on this, and other inputs, one can guide you on how much you need to save to be able to maintain your std of living post retirement. mutual funds are not the only solution to accumulating wealth; but they are an important one. you should employ the sevces of a professional for this. if you wish to read up on retirement planning you can download the free guide from www.personalfn.com
Rahul Goel says, Thank you all for participating in this discussion. Wish you all a very Happy Diwali!

Rahul Goel says, Thank you for participating in the discussion! See you all next week!

Chat with Rahul every week!

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