Dhirendra Kumar hosts a weekly TV programme where he answers questions related to mutual funds. We have briefly reproduced the transcript here.
Name of programme: Fund ka Funda
Time of programme: 1.30 pm/Sunday
Channel: Star News
Q. Which fund is better - Reliance Vision or Reliance Growth?
Both funds have different investment strategy. Reliance Growth is a mid cap heavy while Reliance Vision is large cap heavy portfolio. If this will be your only fund then choose Reliance Vision.
Q. I invested in Sundaram BNP Paribas Select Mid Cap (G) via monthly SIP. I want to know that how is this fund and can I invest more in this fund now?
Sundaram Midcap is a good fund which has not very well in recent times. Stays invested and continue you SIP if your investments are for few years.
Q. I have SIPs (Rs 1,500 pm) in Franklin Prima Plus & SBI Contra for one year. Should I continue or stop? Which option is better Growth or Dividend?
Sunder Rana, New Delhi.
Both funds have 5-Star Rating. Continue your investments to accumulate your savings for good returns over next few years. Choose dividend reinvestment option.
Q. I invested Rs 7000 in the NFO of Reliance Equity Advantage Retail fund. How is it?
It is a very new fund launched in July 2007. Allow it some time to evaluate its performance.
Q. Should I redeem from SBI One India and switch over to schemes like Magnum Global and Magnum Contra?
Jayanta Chakraborty. Siligur
SBI One India is a relatively new, closed ended fund. Yes, you should consider moving your investment to a well rated diversified equity fund like Magnum Contra. Though this will cost you a higher exit charge.
Q. What is the future of Morgan Stanley Growth Fund?
- Pravin Parkeria.
It is a listed closed ended equity fund due for redemption in February 2009. It's current NAV is Rs 66.24. It has been an average fund but you should hold it till its redemption to realize its NAV.
Q. What is your opinion about LICs money plus?
Money Plus is a ULIP. ULIPs are costly. Don't mix insurance and investment.
Q. I want to invest Rs. 25000 for six months. Please suggest some good fund?
It is dangerous to make investment in an equity fund for six-months. Consider a bond fund or a bank deposit.
Q. As a first time investor, which diversified equity fund should I pick for three years?
Choose from our top rated diversified equity funds like Reliance Vision, HDFC Equity, Fanklin India Prima Plus or Birla Frontline Equity.
Q. Seeing the market rally like this, is it advisable to exit from mutual funds or stay invested?
Sita Ram Gupta, Patna
It is difficult to predict market movements. If you need money in coming weeks it would be wise to reduce exposure to the stock market.
Q. I want to start a SIP of Rs 2000. Please suggest some good funds.
Start investing in some five or four star-rated mutual fund like HDFC Equity, Reliance Vision or Franklin India Prima Plus.
Q Looking at the recent performance of Franklin India Flexicap and Sundram Select Midcap, should SIP in these be changed to other MFs?
Continue your SIP in these two funds. They make a good combination.