Dhirendra Kumar hosts a weekly TV programme on Star News where he answers questions related to mutual funds. We have briefly reproduced the transcript here.
Time of programme: 1.30 pm/Sunday
Channel: Star News
Q) I want to invest Rs 2,000/month in an ELSS fund. Can you suggest a fund?
Q) Please suggest three good tax-saving funds.
1) HDFC Taxsaver
2) Magnum Taxgain
3) Birla Equity Plan
4) Sundaram BNP Paribas Taxsaver
5) ICICI Prudential Tax Plan
Q) Should I switch from Sundaram Growth to Select Midcap in view of average performance of Growth and high cash holding of Midcap?
Decide on the basis of your investment objective. Sundaram Growth is a low-risk equity fund. Sundaram Midcap is a more volatile mid-cap fund.
Q) I have invested Rs 10,000 each in Magnum Global Fund, Magnum Contra Fund and Reliance Growth Fund for 6 months. Should I hold on or exit after 6 months?
Hold on to them as long-term investments. Exit only if you are in dire need of money.
Q) I want to invest Rs 2,000 via a SIP. I am thinking of SBI Magnum Contra. Please advice.
SBI Magnum Contra is a good diversified equity fund with an excellent track-record.
Q) Will investing in LIC Mutual Fund will be good enough?
Yes. They have some reasonably good bond funds.
No. If you are considering equity funds.
Q) I want to invest Rs 30,000 for my daughter's education, 15 years from now. Suggest a good fund.
Q) I want to invest Rs 3,000/month on a long-term basis.
Q) I want to earn Rs 10 lakh in 5 years. How much should be invested through SIP every month? In which fund?
Good diversified equity funds:
1) Birla Sun Life Equity
2) HDFC Equity
3) Franklin Prima Plus
4) ICICI Prudential Power
If you are doing a one-time investment, you can choose the same funds. But do not invest at one go. Spread out the amount over the next 12-18 months. Gradually begin to withdraw the money a few years before you require it.
It is not possible to guess the expected return over a long period. Also, the returns of the funds over this period will vary widely.
Q) I am a 41-year old man. I pay Rs 2 lakh per annum for a Tata AIG policy. I will pay this for 20 years and at the end of the policy I will get Rs 91,35,803 (non-guaranteed). I took this policy at the age of 39 years. Is this policy worth it? Should I discontinue even though I will lose a lot?
Depends on your investment objective. If it is solely capital appreciation, consider discontinuing this ULIP, choose few good equity funds and invest regularly in them.
Q) I invest Rs 20,000/annum in a ULIP. Is that wise?
We do believe that ULIPs are good investments.
Q) I want invest Rs 5,000 or Rs 10,000 for 1-2 years. Suggest a good fund.
An equity fund is not suited for such a short time horizon. Consider a bank deposit of a defined period. They are yielding good returns today.
Q) I watch your programme and have invested in 5-star rated fund. How much can I expect to earn in a year?
You can be hopeful of relatively higher returns with greater stability from the top rated funds over the next few years. Guessing the return over the next one year is difficult.
Q) Six months ago, I invested Rs 25,000 in HDFC Equity Fund and Rs 30,000 in Fidelity International Opportunity Fund. Should I exit or stay?
HDFC Equity is a good fund. You can stay.
Fidelity International is a new fund and holds promise. Wait for a while before evaluating.
Q) I work on a Sunday so cannot watch the TV programme Fund Ka Funda. I want to access the names of 5-star funds.
You will find the entire list on our website - www.valueresearchonline.com Q) Should I stay or exit from UTI Mastershare?
It is a below-average fund.
Q) What do you think of my funds? Sundaram Select Midcap, Fidelity Equity, SBI Magnum Multicap, SBI Global, SBI Contra.
Your portfolio has a dominance of mid-cap funds. Get your portfolio reviewed after defining your investment goal.