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Sectoral Funds Are High On Risk

Value Research CEO Dhirendra Kumar addresses investors’ queries on Fund ka Funda, a Star News show

Would like to invest in Reliance Regular Saving Fund or ICICI Infrastructure Fund through SIP for 3 years. Which fund is better? – Gautam. Kolkata
Both funds have done well till now. Reliance Regular Savings Equity is small and mid cap oriented fund and ICICI Prudential Infrastructure is a sectoral fund; this makes the portfolio risky. If you are not comfortable with high risk funds, opt for diversified equity funds like Reliance Vision, DSP ML Top 100 or Sundaram Select Focus.

I have to invest one lakh rupee in a tax saving fund. Which tax saving fund is better?

Invest in well rated tax saving funds like Sundaram Tax Saver, Magnum Tax Gain, Birla Sun Life Tax Relief 96 or HDFC Tax Saver. Try and spread your investments over 6 months via SIP.

How much corpus can I create if I invest Rs 1000 pm for 20 years and expect 20% return pa. Pramod New Delhi

Your investment of Rs 2.4 lakh over 20 years (Rs 1000 per month) would grow to Rs 24.76 lakh in 20 years (assuming a 20 per cent return per annum).

Which is the best mutual fund in real estate?
There are no mutual funds currently that invest in real estate directly. Fund houses may soon launch such schemes as SEBI has given them a go ahead. Currently there are only two real estate oriented funds - ING Global Real Estate (Equity international Fund of Fund) and ICICI Pru Real Estate Securities (Debt Fund).

I have invested rupees Rs 1 lakh in Tata Indo Global Infrastructre Fund in October 2007. How much exit load will be charged if I redeem all the units today. Rakesh Saxena Bareilly

This is a 3 year closed ended scheme. If you exit before 3 years an early exit charge would be levied. This will be equal to the unamortized new fund offer expenses. Contact the AMC to know the exact charges.

I invested in Birla Sun Life International Equity Fund. What should I do? Exit or hold? B.S.Zala. Jamnagar

This fund was launched in October 2007 and has done reasonably well till now. Remain invested for some more time before deciding.

Out of my surplus fund should I go for repayment of my housing loan or for mutual fund please advice me sir.
Clearing your housing loan would help you save on interest over the long term. If the available amount is high, you could repay some amount of home loan and invest the remaining in mutual funds via SIP.

As per the condition of markets today, for how many years should I remain invested so that I get a decent return? Which funds should I opt for investment currently? Raaz, Bhagalpur, Bihar
Ups and Downs in the stock market are a usual sight. One needs to be patient as equity as an asset class is most rewarding over the long term. Do not worry about such gyrations and be patient. For investment, consider well diversified equity funds with a good performance history. Choose from – DSP ML Top 100, Birla Fronline Equity, HDFC Top 200 or Sundaram Select Focus.