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Returns From Ruin

Here’s what shareholders can expect from a shuttered company

Does the issuing of warrant checks, which are given on preference shares, stop after a company is closed down?

Once a company is closed down, so does everything else. The treatment of preference shares is done like debt. You are guaranteed a definite return. So, until all the assets of the company are sold off, before shareholders get their money, it is necessary to complete the liabilities of preference shareholders.

If the company is closed down, then one can expect something in term of returns, though it is again a very long legal process.

I have invested in 5 mutual funds: Franklin Flexi Cap Growth Fund, Sundaram Mid Cap, DBS Chola Contra, SBI Magnum Contra Growth, and Sundaram Energy Opportunity. I wanted to find out their overall performances. Should I continue with them or I bring out money from time to time?

All of these funds make for a very evenly spread portfolio. However, Franklin Flexi Cap is an average fund, though Sundaram Mid Cap is a very good fund, DBS Chola Contra has been performing very well in the last few days and you should continue with it. SBI Magnum Contra is very impressive while Sundaram Energy is a relatively new fund. So, the moment you bought it, you should look at spending three-to five years in this investment as it claims that it would invest in companies dealing with gas which has been discovered in the country and it would take time to deliver returns. It is a special opportunity fund.

Most of your fund selection is good, but you need an advisor who will holistically analyze the views of all these funds.

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