Dhirendra Kumar hosts a weekly TV programme where he answers questions related to mutual funds.
Name of programme: Fund ka Funda
Time of programme: 1.30 pm/Sunday
Channel: Star News
We have briefly reproduced the transcript here.
Q) I invest Rs 2,000 every month through an SIP in HDFC Equity
Fund. Is this a right fund to invest in because the NAV is very high?
- Jatin
The high NAV of the fund is irrelevant.
Q) Escorts Opportunity is a debt oriented fund. It gives a regular monthly dividend of 1.5%. Should I maintain my Rs 4 lakh retirement fund there?
Escorts Opportunity has a good dividend track record but it often
functions as an equity-oriented balanced Fund. It may not be great choice
for income. Instead, choose two good monthly income plans.
Q) Since March this year, I invest Rs 5,000 per month in 'Franklin India Prima Plus'. How much will I get after 10 years on my principal of Rs 6 lakh?
Tough to guess since mutual funds returns are not guaranteed. But one should expect a handsome return on your regular investment for 10 years.
Q) I invested in UTI Infrastructure, Reliance Regular Saving,
ICICI Pru Equity and Derivative, UTI ETSP and Birla Tax Relief. Should I hold or sell?
- Dr Sanjiv
It is difficult to guide you. You have funds of a varied kind. Think of your goals, define your time horizon and choose good funds.
Q) I invest Rs 1,500 every month in HDFC Standard Life Insurance in
their Growth fund (80%) and equity managed fund (20%). Must I continue?
It is a Unit Linked Insurance Plan. Not a mutual fund. A ULIP is not a great investment vehicle.
Q) All the schemes of JM Mutual Fund have started performing well. Should I invest in JM's funds?
Think of putting a very small part of your money in JM Basic or Emerging Leaders.
Q) I purchased 2,000 units of Reliance Equity Growth during its NFO. Now I want to switch to Reliance Growth. Please suggest.
- Akash
Yes. You must sell Reliance Equity. Switch to Reliance Vision or Growth based on your risk tolerance.
Q) I want to invest Rs 20,000 every year in a mutual fund for 6
years. I want to be a crorepati.
Your Rs 20,000 investment every year is unlikely to become a crore in 6 years. But carry out your plan to invest regularly in 1 or 2 5-star rated, diversified equity funds.
Q) I invested in UTI-Master Value fund in 2005. If I exit then
where should I invest to gain a better return?
Choose a 5-star rated, diversified equity fund.
Q) I want invest Rs 1,000 every month in 2 mutual funds for 3 years. Which is the best fund?
- Swapnil
Q) I want to invest Rs 1 lakh for 3 years. Please suggest options.
- Dr P K Choudhury
Choose a good balanced fund -- HDFC Prudence and Magnum Balanced.
Q) I invested Rs 40,000 in SBI Infrastructure, HDFC Midcap Opportunity and UTI Long-term Capital Gain Fund this year. Is this profitable?
- Aman
All your investment are relatively new for an opinion. Review it after six-months to take a call. Generally speaking, you should avoid a new fund for lack of history and higher expenses.
Q) Does investing in an equity fund amount to speculation?
- Amit Prasad
Investing for a few years and investing regularly cannot be termed as speculation. A mutual fund is not a suitable vehicle to speculate.
Q) I invested Rs 10,000 in Tata Equity Management Fund Growth in
July 2007. What is the future of this fund and its present NAV?
- S K Sinha
This fund is a big laggard against other funds and its benchmark. Its NAV is around Rs 11.
Q) I hold UTI Contra Fund. In 1 year there has been no
appreciation. Please advice.
- R N Sood
To be fair, UTI Contra is up 10% over the past 1-year, which is not
a good return. Consider switching to UTI Infrastructure or UTI Index
Select Equity fund.
This article was originally published on August 16, 2007.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
