If you are not too confident about where best to invest to make maximum profit, then it's best to take the help of an expert.
Invest in equities or mutual funds? Which are the best mutual fund options? Which type of mutual fund to invest in?
In an hour-long chat on rediff.com on Friday, Devangi Bhuta, vice president of Lotus Knowlwealth, replied to many such queries.
Here is the transcript:
mili asked, Which is the best investment option? Debt or equities?
Devangi Bhuta answers, at 2012-02-24 16:01:38Mili -- Depending on your risk profile, you can allocate across asset classes to have a well diversified portfolio
varun asked, Hi Sir,I have inevested in following mutual funds, please advise me it is ok, for making wealth: HDFC-Top200, Rs 2000, DSP-Rs1000, Fidelitey-Rs1000, Uti Dividend-Rs1000, Birla Frontline-Rs1000, Hdfc tax saver-Rs1000, SBI Tax saver-Rs1000.
Devangi Bhuta answers, Varun -- You can reduce the exposure in large cap funds and diversify into balanced and gold
Mukesh asked, Should I switch out of a fund if the portfolio manager changes?
Devangi Bhuta answers, Mukesh, it would be better to wait and watch the performance before making the decision. track the performance for now.
indo_can asked, I am looking to invest 1 lakh in mutual fund for 4-6 months; which one should I invest in.
Devangi Bhuta answers, Typically, MFs are for longer term investments. However for shorter term you can consider Liquid Funds.
Sukhi asked, Should I pay any attention to the portfolio turnover ratio of a mutual fund?
Devangi Bhuta answers, Yes Sukhi, it is a key Parameter while analysing funds. A buy and hold strategy typically works i.e. not a very high churning ratio.
Jeyaseelan asked, How to select mutual fund investments during this volatile market and which are the best to invest during growing market & volatile market. Few inputs about best use of switchings
Devangi Bhuta answers, Depending on your risk profile you can consider investing in equity , debt and gold asset classes through SIP in Mutual Funds. This will protect you against sharp moves and volatality. feel free to mail us at email@example.com or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com to assess your risk and structure your PF
susobhan asked, Sir, I have SPI in HDFC Equity (Rs 2000/m) and HDFC Top 200(Rs 3000/m).. I want to invest another Rs 5000/m. I can take risk. Please advice
Devangi Bhuta answers, Consider a balanced fund and gold fund to diversify your existing equity investments.
kk asked, i invested in Reliance diversified power sector & reliance regular savings.... i have not found MF as good way to invest as i just croped 3% return after 2 years.
Devangi Bhuta answers, Reliance Schemes have under performed to a great extent. Consider exiting from both these schemes. feel free to mail us at firstname.lastname@example.org or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com to get your portfolio structured.
Ruchira asked, I am having SIP in HDFC Equity Fund - Growth, HDFC Prudence Fund - Growth, HDFC Top 200 Fund - Growth should I continue or switch over to some other funds
Devangi Bhuta answers, While individually your schemes are out performers, over exposure in any one AMC should be avoided. Consider ICICI Pru Focussed Blue Chip over HDFC Top 200 and Birla Balanced 95 over HDFC Prudence. Its also important to have gold in your portfolio.
himanshu asked, Hi Devangi, currently i am having 6 sip's of worth INR 10 k,/month, this includes all the giants like hdfc 2oo, hdfc tax saver, hdfc growth, icici tax plan, relaince tax saver, etc. Request suggestion whether i wud look for any other sip or switch to some portfolio. Thanx Himanshu
Devangi Bhuta answers, Himanshu, your portfolio needs to be diversified in terms of asset classes . At present it looks over exposed in large caps. Contact us at email@example.com with your details and we will be happy to assess your risk profile and provide an optimal portfolio.
ssp asked, I have SIP in HDFC Top-200 (Rs.3000), DSP BR Small & Mid Cap (Rs.1000), Sundaram Select Mid Cap (Rs.500), Relaice regulor saving Equity (Rs.3000), HDFC Prudence (Rs.500, How is my MF portfolio, any changes require?
Devangi Bhuta answers, SSp, you have a well diversified portfolop, however consider exiting from Sundaram Select Mid Cap and re-investing in IDFC Premier. Also, you can consider switching from reliance regular saving fund to UTI Opportunities Fund.
jpandiyan asked, Pls advise the status of Franklin bluechip fund.
Devangi Bhuta answers, We have observed that Franklin Bluechip's performance has dipped. Consider exiting for now and switching to a better performer like ICICI Pru Blue Chip or UTI Dividend Yield
himanshu asked, you said that my portfolio needs to be diversified in terms of asset classes, what does this mean?
Devangi Bhuta answers, feel free to mail us at firstname.lastname@example.org or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com
Mathew asked, Please advice on below points: 1. I am 37 years old, can you tell me the portfolio percentage i need to keep for below sector (Equity,Debt,FD,Gold,Liquid fund). How much insurance coverage i need. My CTC-12 Lakhs per annum, married with 2 kids. 2. As you know ELSS scheme MF's to get stop from this fin year. So is it worth to invest in ELSS? What would be the future of this type of ELSS. Thank you,
Devangi Bhuta answers, Mathew, you can consider 65% in Equity, 25% in debt and 15% in Gold. feel free to mail us at email@example.com or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com for portfolio structuring.
bvmallikarjun asked, presently i am investing in HDFC EQUITY, ICICI FOCUSSED BLUE CHIP FUND, ICICI DISCOVERY, HDFC TOP 200, DSPBR EQUITY, DSPBR SMALL & MIDCAP, FIDELITY EQUITY & SBI GOLD FUND. I WANT TO DISCONTINUE TWO FUNDS TELL ME WHICH FUNDS I CAN DISCONTINUE OR ANY NEW FUNDS I CAN START OR CHANGE SOME EXISTING FUNDS.
Devangi Bhuta answers, Your individual fund selection is all right. However will be able to advise you accurately if we know the amounts invested and your risk profile.
kesarirs asked, Hi,I have a corpus of 8 lac aprox. I am 37, with a single daughter. My present investment is 2k each in LIC Samridhi Plus, Canara Robeco Tax Saver & 1K each in Bank R/D, Canara Eq. Diverisified, Franklin Blue Chip, Franklin Prima Plus, Rel Growth, Rel Reg Savings(Eq), HDFC Top200 & HDFC Index Sensex Plus. I also have life insurance of 20 lac - 50% term plan & 50% money back. I want to have 1 crore at age of 55 for my daughter's education & marriage + my retirement. Do I need to make changes or additions to my present investments? Pls suggest.
Devangi Bhuta answers, You need to streamline your portfolio in terms of exposure in equity to have good diversity. You can exit the reliance funds.
bond411 asked, Hi, i want to start investment my monthly savings is 4000-5000 Rs? How shall i start?
Devangi Bhuta answers, You can consider investing 2K in large cap like ICICI Pru Focussed Blue Chip, 2K in Birla Sun Life 95 Fund and Balance in Gold ETF or Kotak Gold F-o-F.
roger asked, For a 2-year time horizon, can I invest Rs. 2 lakh in a FMP? Any suitable FMP?
Devangi Bhuta answers, Yes, FMPs are a good investment option in your debt exposure. You can consider investing in Birla FMPs
swapnil asked, Please suggest me best MF for the 15 year's long term investment for my kids eduction need
Devangi Bhuta answers, Swapnil, given the longer time horizon you have, consider investing 55% in equity (1 large cap, 1 multi cap and 1 mid cap fund), another 25% in Debt funds ( MIPs , Bond Funds) and balance in gold for good returns.
chintu asked, I have a SIP of 1000 each for the following MFs, which I want to continue long term for 15-20 years: HDFC Equity Growth HDFC Mid cap opportunities HDFC Top 200 DSPBR Equity DSPBR Top 100 Equity DSPBR Small & Microcap Reliance RSF Reliance Growth Franklin India BlueChip IDFC Premium Equity Plan A Growth.. Is this portfolio Ok to give me retirement benefits, if I plan to redeem it 15-20 years down the line?
Devangi Bhuta answers, Chintu consider reducing the number of schemes and consolidating them. You can exit DSPBR Top 100 and put in HDFC Top 200. Exit Reliance and Franklin schemes and add in IDFC Premier, HDFC Equity. Diversify your portfolio with debt and gold.
Hash asked, Madam, I had invested 10K each in HDFC Long Term advantage fund and ICICI prudential tax plan and 15k in Birla Sun life Tax relief 96. pls advise whether i need to hold on each of these funds or exit any of these?
Devangi Bhuta answers, elss schemes have anyway under performed and after DTC they will not help save tax either. consider exiting
r asked, Hi, I am investing following mutual funds in SIP, please suggest wheather selected current funds or not. Funds are: HDFC Top 200, DSPBR Equity, Franklin Bluechip and IDFC premier Equity, GOLD Bees.
Devangi Bhuta answers, your scheme selection is good. the proportionate investment in each of these will depend on your risk profile. consider a balanced fund too.
raje asked, Although MF provide good return in long term but why can't we consider full investement (100%) in Gold ETFs for long terms say 5 years because gold prices always appreciate yearly. Please suggest.
Devangi Bhuta answers, There is no such guarantee Raje, diversification across asset classes is a must to hedge your risk and maximise your returns.
Maanchi asked, I have bought last month 3 mutual funds,like HDFC tax saver,ICIC pru tax,DS blackrock. are they good ? will i expect 20to 30% returns after 3 yrs.
Devangi Bhuta answers, elss schemes have anyway underperformed and after DTC they may not provide the tax benefit. exit from these schemes and consider diversifying your portfolio.
asdasd asked, hi , i have sip in the followig canara robeco equity tax saver (1000), hdfc top 200 (growth and dividednd) 1000, dSP black rock top 100 (1000); suncaram smile growth (2000) fidelity tax advantage (growth ) 2000..Please suggest if I need to continue ro exit any of these. also please suggest equity funds for lumpsum invesments at curretn levels
Devangi Bhuta answers, Consider exiting from DSPBR Top 100 and re-investing in UTI Opportunities Fund for Multi cap exposure. Consider exiting from Sundaram SMILE and Fidelity Tax advantage and putting in Birla SunLife 95 Fund and Gold
Vaibhav asked, Good answers. Really liked it.. Very informative..
Devangi Bhuta answers, thanks vaibhav , glad to help.
fsssds asked, hi Madam I am 40 years old my sip is hdfc top 200 rs.2000/, dspbrtop100 1000,reliance gold 3000, fidelity equity 1000, relianc growth 1000, idfc preimer equity rs,500, franklin bluechip 500, & anul insurance of rs.60000/ P.a, pls advice for corups of Rs 50 lack in 10 years for future goal , pls advice.
Devangi Bhuta answers, Consider exiting from reliance growth and investing in Birla Sun Life 95 Fund. Exit from Fidelity Equity and invest in debt/hybrid funds like IDFC SSIF , HDFC MIP.
rakesh asked, Which are the best diversified high risk high return mutual funds ?
Devangi Bhuta answers, Typically, Mid Cap Funds would be high risk and high return. IDFC premier or HDFC Mid cap are good schemes in this category.
anupam asked, Hi, i am 31 and started investing 10000 as recurring deposit 6 months back for secure retirement purpose.I wanna have rs. 50 lacs for retirement at 50, 30 lacs after 20 yrs. for child.s marriage and another 20 lacs in 20 yrs. for house refurbishing. how much money i will have to invest and in which funds. My current income is 40000 per month.
Devangi Bhuta answers, Anupam, you have age on your side and with the right asset allocation it is possible to achieve your financial goals. consider 65% in equities, 20% in debt and 15% in gold for a well balanced portfolio. For detailed structuring feel free to mail us at firstname.lastname@example.org or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com
rk asked, I have SBI Infrastructure fund. But have not got any good profit at all.. what can I hold with that fund. your opinions pls.
Devangi Bhuta answers, Infra funds have been poor performers and especially SBI's Infra Series I. Consider exiting.
RC asked, madam, my sal 40k, investing 15 k in MF's. Want to invest in other type of instruments. How and which gold funds to invest. Want to have some contingency liquid funds while earning returns.Pls advise
Devangi Bhuta answers, Based on your risk profile, you can add Gold to your portfolio for good diversification and returns. You can consider Goldman Sachs Gold ETF or Kotak Fund of Funds.
jagadeesh asked, Hi, I am investing 10K every month in ICICI focussed blue chip(2K), HDFC Top 200(2K), HDFC Mid cap (2K), IDFC Premier (2K) and Gold ETFs (2k). Is my allocation good or do I need to change any MF?
Devangi Bhuta answers, Jagadeesh, as such asset allocation depends on risk profile. Individually your scheme selection is good. However will need to know your age and financial objectives to comment on the overall portfolio.
roger asked, Devangi would you consider looking after my entire portfolio?
Devangi Bhuta answers, Sure. Contact us at email@example.com with your details feel free to mail us at firstname.lastname@example.org or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com
rajat asked, Dear Devangi, My all investments are SIP based and mostly in diversified equity fund such as HDFC Top 200, Fidelity EF, UTI dividend yield and DSP BR Equity, Quantum equity and in HDFC Prudence and BSL gilt as balanced fund. I also have HDFC Gold fund and NifTY ETF buying 2 units/month using demat A/C. Will you kindly suggest any modification in my portfolio. My age is 41+.
Devangi Bhuta answers, Rajat, will have to understand your financial objectives. However , prima facie, consider 55% in equity, 25% in debt funds and 20% in gold.
Devangi Bhuta says, We are running out of time..once again, my apologies to those whose questions remain unanswered....feel free to mail us at email@example.com or call on weekdays between 5 and 6.30pm on the contact numbers mentioned on www.gurukshetra.com. Before I sign off, invest according to your risk profile and through SIP/ STP to maximize your gains.
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