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smartcat
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Joined: 29/Mar/2007
Location: India
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Posts: 4243
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   Topic: An Ideal Mutual Fund Portfolio
Posted: 30/May/2007 at 7:50pm |
Though I'm an avid direct equity investor, I still have a sizeable portion of my money in mutual funds. Actually MFs take up 33% of my overall equity portfolio.
These are some of my picks which I regularly recommend to newbies who are scared to invest in equities directly.
HDFC Tax Saver Fund - This will take care of 'Section 80 something' where Rs. 1 Lac investment can save Rs. 20,000 tax.
Reliance Vision Fund - A large cap diversified equity fund with a CAGR returns of 30% since 1995. Recommended exposure 30%
Fidelity Equity Fund - Another diversified equity fund. I have enormous faith in Fidelity's investment processes. Among on the top 10 performers since inception in 2005. Recommended exposure 30%
Sundaram Select Midcap Fund - A midcap fund to spice up the portfolio. Has returned a CAGR of 60% since its inception in 2002!! Recommended exposure 20%
Franklin India Opportunities Fund - An opportunity/multi-cap fund that takes care of temporary biases towards particular market caps. Eg: 2003 - 2005 was the era of mid caps. After that, large caps took over. This fund has returned 44% CAGR since 2004. Recommended exposure - 10%
I personally hold other funds like Contra and COMMA fund. But this is a portfolio I suggest to L-boards. Will this portfolio outperform other mutual funds and the benchmark?
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deveshkayal
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Joined: 04/Sep/2006
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Posted: 30/May/2007 at 8:55pm |
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Sundaram Midcap fund manager Anoop Bhaskar has quit who managed since 2002..so i would avoid it for now.In place of it,i would invest in Reliance Growth Fund...I will be always biased towards Sunil Singhania in all my posts..whether u agree with me or not,its upto u.Reliance Growth Fund manages the largest corpus,the fact that investors believe in him.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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smartcat
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Posted: 30/May/2007 at 10:01pm |
Devesh Ji - Tracking a mutual fund is ok, but it is impossible to track the performance of individual fund managers. They keep jumping here and there anyway. I have lots of faith in processes, controls and collective research that these fund houses reportedly have.
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basant
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Posted: 30/May/2007 at 10:08pm |
AMongst the fund managers these were the only ones to have bet on reale state stocks but after that they have really spread themselves out very wide and thin. The top stock is not even 3% of the portfolio but if they are able to generate returns we are not competent to comment on their investing style!
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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smartcat
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Location: India
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Posted: 30/May/2007 at 10:17pm |
Basant - as a AMFI registered MF advisor, what would your MF recommendations be to my friends? My buddies are typically -
- Software engineers
- Earning a take home salary of Rs. 30,000 - Rs. 40,000
- Generally, a casual attitude towards the concept of saving and investments.
- No time to track performance of a MF.
- Refuse to go for a SIP.
- Think of equity investments when market reaches all time highs.
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basant
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Posted: 30/May/2007 at 8:26am |
Originally posted by smartcat
Basant - as a AMFI registered MF advisor, what would your MF recommendations be to my friends? My buddies are typically -
- Software engineers
- Earning a take home salary of Rs. 30,000 - Rs. 40,000
- Generally, a casual attitude towards the concept of saving and investments.
- No time to track performance of a MF.
- Refuse to go for a SIP.
- Think of equity investments when market reaches all time highs. |
The last two points are something that no body except "time" can advise them.Even if they want to go in the market at all time highs tell them to buy HDFC Bank and sleep over it!!!
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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vivekkumar_in
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Joined: 19/Sep/2006
Location: United States
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Posts: 606
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Posted: 30/May/2007 at 10:48am |
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Smartcat ji,
You want to include SBI Magnum Global Fund.
They have a near to 54% CAGR in past 5 yrs. It has higher retuns than Reliance Growth and also seems to have been managed well during the dot com burst.
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Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch
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smartcat
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Posted: 30/May/2007 at 11:53am |
SBI Magnum Global Fund has done exceptionally well in the past 5 years but its ALL TIME returns is not so impressive at 16% CAGR in 13 years. Perhaps they took wrong calls early in the beginning?
When looking at diversified equity fund's performance, what do you look at? 1 yr performance? 3 yrs? 5 yrs? All Time?
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