From: ajay kumarHi Sir, What's happening with these income funds? where r theyheading? what's your take on income funds? I had invested 20000 inHdfc Income fund(of course as per your advice) on 26th DEC and now itis showing negative returns. what's your take on Hdfc Income fund ?should i stay invested with it? if yes how long? thank u.SRIKANTH SHANKAR MATRUBAI replied :Dear Ajay Kumar, Yes, your investment in HDFC Income Fund would be showing a negative return of 2.74% as on date. The reason for the negative return (for now) is because...
Monday, 23 March 2009
Going by the Fact Sheets of Most Mutual Funds these days, one thing is crystal clear. They are sitting on Huge Cash. While Funds typically do have cash in hand at around 5%, it is susprising that across board, maximum Funds are not holding cash levels ranging anywhere between 10% to even 60% in some cases!!!. And, Some Funds like Reliance Natural Resources Fund has been sitting on Cash of upto 30% for more than a year now!!!Why are funds sitting on cash, when they can buy shares cheaply and maximise returns for their investors? A fund could...
From: Akhil SharmaHi Sir,Hope you are doing really well and your Family and loved ones are in the Pink of Health.I've finally thought of starting a new SIP in Fidelity Equity Fund.As of now i'm invested in the following funds:Sundaram Capex Opportunities - Rs.5500 ( Latest Value :Rs. 3156 )Reliance RSF Equity - Rs.5000 ( Latest Value :Rs. 2753 )Reliance Diversified Power - Rs.5000 ( Latest Value :Rs. 2434 )Kotak Indo World(Closed Ended)- Rs.5000 ( Latest Value :Rs. 1982 )ICICI Pru Infrastructure Fund -Rs.5000 ( Latest...
HDFC Young Star PlusThe Young Star Plus (YSP) plan from HDFC Standard Life is another unit linked child plan, the earlier being Young Star. The plan aims to provide financial security to the child in case of the unfortunate demise of the parent/insured. The demise of the insured (i.e. parent) during the policy term leads to the sum assured being paid to the child. However, the policy continues until the end of the stipulated tenure with the insurance firm paying the premiums.HDFC YSP offers a wider range of six investment options, across equity...
Sunday, 22 March 2009
JM basic fund SIPDear SirMy sip for jm basic fund(G)expires on 25 jan,it was from last one year.Should i continue or not.I have 8 diff. sip of 1000/pm and plannig for 10 year.Others are sbi Contra,hdfc prudence,hsbc equity,Magnum global,diversi power reliance,rel vision and growth,icici infra.All r growth option.I have to re-arrange portfolio,pl advice.uday1972SRIKANTH SHANKAR MATRUBAI repliedDear Uday,JM Basic Fund has been one of the Disasters of 2008. In fact, the JM Fund House itself has had a Disasterous Year in 2008. Almost all their...
Hello, Taurus Mutual Fund has launched a New Fund named TaurusThe New Fund Offer has already open now and will close on 20 March 2009.The Fund is particularly targetted at Investors who want to put their money in a Shariah-compliant instrument. The fund will make investments only in the shares of companies that are compliant with the dictates of the Shariah, which forbids ties with companies involved in banking, alcohol, tobacco, gambling, non-halal meat or pornography. As interest cannot be earned on investments made as per Shariah laws,...
JEEVAN ANANDAt first glance, Jeevan Anand looks attractive. All insurance policies look great while buying and look quite meagre when you receive it.Sample this -A 30Y old male person `ll put in 27550 Rs. prem. per annum for a 20Y policy. Now look at the bonus announcements of past years for this policy.2004-2005 - 43 Rs. per 1000 Rs. Sum assured2005-2006 - 40 Rs.2006-2007 - 41 Rs.From the above bonus rate, u can expact an average bonus rate of around 41 Rs. for all the 20 years (not guaranteed).So after completing 20 years -A. Total prem....
My old friend Akhil sharma wrote :Hi Sir,Hope you are doing really well and your Family and loved ones are in the Pink of Health.I've finally thought of starting a new SIP in Fidelity Equity Fund.As of now i'm invested in the following funds:Sundaram Capex Opportunities - Rs.5500 ( Latest Value :Rs. 3156 )Reliance RSF Equity - Rs.5000 ( Latest Value :Rs. 2753 )Reliance Diversified Power - Rs.5000 ( Latest Value :Rs. 2434 )Kotak Indo World(Closed Ended)- Rs.5000 ( Latest Value :Rs. 1982 )ICICI Pru Infrastructure Fund...
IDFC has recently launched a New Fund Offer named IDFC India GDP Growth Fund. The IDFC India GDP Growth Fund seeks to invest the assets in the sectors representing the three components of India's GDP viz., Agriculture, Services and Industry. The allocation to these levels of GDP will be in the same proportion as their contribution to the overall India's GDP, and will normally be revised on a semi-annual basis, or whenever the GDPgrowth estimates are revised.COMMENTS AND RECOMMENDATION : The Fund is innovative and aims to capture the Growth...
Neha Agarwal wrote :Dear Sir,I Just came across your blog and read few suggestions and i really want to say thank you for all your valuable advise to the investors.I am 32 years old and I have invested in mutual fund by starting from Rs. 500/- from one fund in 2005 and increased year by year. All the funds are having growth option. My investment horizon is +15 years.I am having 3 year old son and I am investing for retirement and son’s education.I am the only earning member of my family having 5 members including me.I am having a housing loan...
Mr.Tyagi wrote :HI, Mr.Srikanth,First of all I cannot fin dout any space in your blog where I can ask questions. Can u educate me where am I suppose totype in my question?My actual question is I'm a NRI and woul dlike to park my money in safe Debt funds. Can you suggest some safe Debt funds that I can invest in? Also let me know is it safer to invest in Long term debt funds or short term debt funds?REgardsThyagiSRIKANTH SHANKAR MATRUBAI replied:Mr.Tyagi, I am not a Technical Person, hence there is no provision to type your question in...
Ms.Shalini asked :Dear Sir,What are NON-CONVERTIBLE DEBENTURES (NCDs)?How safe are Tata capital's recently open secured NCDs? Is Income from them is taxable?ShaliniSRIKANTH SHANKAR MATRUBAI replied :Dear Shalini,How are you?. I remember answering your query in August last year. Hope you are sticking to your investment in HDFC Top 200 Fund....Non Convertible Debentures (NCDs) are those that cannot be converted into equity shares of the issuing company, as opposed to Convertible debentures, which can be. Non-convertible debentures normally earn...
Mr.Badrinath wrote ;Dear Friend,I Saw your blogspot its realy very attractive. This year i am planning to invest 6,00,000 rupees every year for 20 years for my kid education, according to you which is most preferable ULIP Child Plan or Mutual FundPlease send me if you have any comparisions about the Mutual fund and ULIPThanks and Regards,Badarinath C.R.BangaloreSRIKANTH SHANKAR MATRUBAI replied :Dear badrinath, First of all, thank you for you very nice words on my blog.Before answering your question, I happened to go through your blog (http://badrirathod.blogspot.com)....
The Uncertain times, we are living in, is reinforcing that Gold as the Best Investment Option in times of Distress. Gold Share indices have nearly doubled from October 2008 lows, though Gold has been up by 35%. The strong investment interest in gold has been fueled by concerns about the falling health of the US financial system. US President Obama's stimulus package is not enthusing many. In these times of tight liquidity, many were pleasantly surprised when Gold Major Newmont's $1.5 billion deal sailed through quite easily, indicating...
Mr.Sumit Gupta wrote :Hi,I am looking to invest around 35-40k in MF to avail the tax saving as well.searching the option around about now, i got SBI Magnum Tax Gain (Dividend), i can go with now.could you please suggest some good investment now, looking the market scenarioThanks & RegardsSumit GuptaSRIKANTH SHANKAR MATRUBAI replied :Dear Sumit, Mutual Funds are the best avenue for Tax Savings. The Best ELSS/Tax Saving Fund is that which is not Baised towards any Sector or Theme and my Pick would be :1. Birla Sunlife Tax Relief...
Mr.Naveen Ekbote Wrote :Hi Srikanth,Nice to know you work on mutual fund investments.I have made two SIP investments of Rs.1000 each in HDFC Tax saver and Franklin templeton Tax saver from last 1 1/2 year. Unfortunately I have lost heavily due to fall in the stock market. Almost to the tune of 50%. Do you suggest to hold on for lock in period of 3 years? What is your suggestion.I also want to take one Mutual fund SIP in my wifes name which gives tax benefit. Pls suggest.ThanksNaveenSRIKANTH SHANKAR MATRUBAI replied :Dear Naveen Ekbote, ...
Saturday, 21 March 2009
Mr.Akhil sharma had a few more doubts and wrote:sir,you said that the Tata Motors Fixed Deposit Scheme is "SECURED".I read the offer document and it says that..The Company hereby declares that:(i) The Company has complied with the provisions of the Companies (Acceptance of Deposits)Rules 1975, as amended upto date; (ii) The compliance with these rules does not imply that therepayment of deposits is guaranteed by the Central Government; (iii) The deposits accepted/renewed by the Company are unsecured and shall rank pari-passu with other unsecuredliabilities;...
Mr.Akhil Sharma wrote back :thanks a lot Mr.Advisor.You don't know what your recommendations and the information passed on by you means to me.I really hope that somewhere in life even i could be of any help to people.Thanks again Sir!But what i want to know from you is "what is term insurance".......can you suggest some product to me so that i can go thru it and understand and get myself insured!Thanks a lot sirRegardsAkhil SharmaSRIKANTH SHANKAR MATRUBAI replied :Dear Akhil sharma, Term InsuranceThe cheapest and the most basic, this is a...
This letter by me was published in Financial chronicle on January 27, 2009Tax-saving tools ¦ DHIRENDRA Kumar’s article Here’s why you should invest in tax-saving mutual funds made very interesting reading.People tend to ignore investing in tax schemes until the last minute and then rush in to invest in whatever instruments they can without analysing the pros and cons. Equities are the best avenue to invest your hard earned money.ELSS not only saves taxes but also give consistent returns. The icing on the cake is the very short lockin period...
A Regular Visitor to my blog, Mr.Akhil Sharma wrote :Hello Sir,How are you doing?....i again want to congratulate you for the terrific job you are doing.Coming to the point i wanted to know about Company FDs.I just saw an advertisement of "Tata Motors Fixed Deposit Scheme".It says earn 12.83% per annum on a 3 years deposit.i have just joined my first job and my salary is around 2,10,000.I along with my mother wanted to invest in a fixed deposit of Rs.50,000.Is this the right option.what will be the Net return after tax.i mean what will i get...
This article by me was published in Financial Chronicle on January 26, 2009 edition.MISSED target ¦APROPOS to the report that LIC failed to garner targetted funds through Jeevan Aastha. It must be mentioned that Jeevan Aastha failed because of huge misrepresentation by agents and even by LIC itself where it hides the real picture by using weasel words. The insurer claimed 10 per cent guaranteed return on the scheme but it’s not compounded. An investment of Rs 48,000, as shown in their own illustration, gives Rs 1 lakh after 10 years....
One Guest by name RR asked, Hi,I would like to have views about Sundaram Select Focus after Satyam fiasco. The MF has an exposure of 25.38 crores(abt 3.26%) investments in Satyam. How much do u think MF would be affected by the downfall in Satyam price?I have a SIP of 2k per month on it. Do you all think i should continue with the SIP? Srikanth Shankar Matrubai advised ; Dear RR,Sundaram Select Focus has been a consistent performer both during Bull Runs as well as Bear Runs. The Satyam Shockers has left many Fund Managers stumped and Sundaram...
INCOME FUNDS' NAV TOO COULD FALL.....A Guest asked,"Can you pl enlighten me on what`s happening to the Income Funds ? It was considered a safe haven and I moved some of my Equity Funds into Income Funds last week. Now, to my dissappointment, the Income Fund NAVs have started falling especially in the last week and have given negative returns last week.How do you see returns from Income Funds developing / unravelling going forward ? "Srikanth shankar Matrubai's REPLY :Many income fund investors were surprised to see falling NAVs in income and...
Sir,I am aware that short term capital gains can be booked against short term capital losses. And similar action can be taken for long term capital gains and losses. I will take the liberty of putting some issues in question form, so as to be clear.1. Is there no difference between gains/losses from debt funds and equity for the said booking of gains/losses?2.All Short Term If I have capital loss of 2 lakh from sale of one particular stock and capital loss of 1 lakh from sale of another stock, and capital gain of 50 thousand from redemption...
Here is the formula for SIPs return calculation.A = S*R*(R Power n -1)/(R-1)In the above formula -A = maturity amountS = SIP amount (plz. note in case of multiple monthly SIPs it`s advisable to clubbed all SIPs considering a big single SIP)n = Time duration of SIPsR = 1 + r/100 (where r is mly. rate of return)Plz. note if the SIP frequency is qtly. adjust the rate of return to it`s frequency.The above formula is some what complicated to calculate manually so it`s advisable to use EXL sheet.Thanks to Ashal for valuable inputsAlso visit http://equityadvise.blogspot.com...
ICICI PRU HEALTH SAVER There is a new plan "ICICI Pru Health Saver" in market. This is being called as ULIP and which boast of availing tax benefits u/s 80D for the entire amount invested.Being a ULIP, Because of benefits u/s 80D It looks attractive.Here is the analysis of the same for your Benefit.Earlier the combo of Health Plan & ULIP was available from LIC as well as Reliance but in both these policies, the 80D benefit was not available...
Mr.Rakesh wrote :Hi Srikant,My name is rakesh, came acorss your blog. Its amazing, very hepful and has very good articles, keep up the good work. I just wanted ur opionion on my MF investments. At present i have started sip in foll. funds from sept'08 -Reliance Growth - 500 * 4 = 2000HDFC Top 200 - 1000 * 1 = 1000DSPML Top 100 - 2000 * 1 = 2000Sundaram Select focus 500 *4 = 2000Please advise if these funds are safe and good for longterm. I also have a host of other funds both diversified and ELSS which i have bene investing since...
Mr.Prakash Punekar wrote :Hi Srikanth,I visited your blog(goodfundadvisor.blogspot.com). I appreciate your good work.I am new to mutual funds and want to seek advise from you.I have started SIP since jan 06, 2009 (actually, I was about to buy satyam shares but did't) :1. UTI Dividend Yield Fund - Growth (UT189) - 1500/month for 5 years.I am planning to have 3000-4000 rs per month in couple of more funds for 5-10 years of horizons.Right now I am in USA.I would appreciate your advise on selection of funds. plan to am expect good returns in next...
My friend Ashal's answered this query recd from a guest. I found it very very interesting and thought you may like the same.Mr.Vivek asked :My insurance agent told me that There are many internal charges in MF which are charged by MF companies but these charges are not visible to Normal investor.He suggested : In case of ULIP, there are 2 things :- charges are completely transparent then MFs- And in long Term (10-15 yrs), ULIPs are cheaper than MFs in terms of charges.Please suggest and draw some clear picture about charges.-vivekSRIKANTH...
Lalitesh wrote back,Thanks a ton, for your kind suggestion on my prvious mail. sorry that i didn't reply on that ealier.As i have said that i do have started some other portfolio after long discussioin/analysis with you guys.First of all i have started portfolio of 8k whose time horizon is upto 4-5 yrs (it may vary too, infact its for the vehcile purpose , and as per me this is not basic requirement so time horizon may vary).Time Horizon : 3-4 yrsPortfolio size : 8K/month ...
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