Short/Long Term Investment

moobo 1
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Thanks Pankaj for your response.

with respect to my current status, mentioned in question Portfolio Makeover Required, Pl guide me on investment as follows:

  1. Previous best funds are not in picture today, What about current best funds. What is the criteria/policy to select funds for long short/long term investment.
  2. If I start SIP from today, Your views on Reliance RSF - Equity (G), HDFC Equity Fund (G), Kotak Opportunities Fund (G), Sundaram Select Midcap -RP (G), Kotak Bond (Regular) (G)
  3. Gold and Property seems like the best investment driver as past records, why should not focus on these.
  4. For lum-sum investment, Is Corporate FD is safe as Bank FD. Pl give your views on JP Infratech, Surya Roshni, Unitech, Jagatjit Industries FD's.

Thanks

long-term-investment mutual-funds gold-investment systematic-investment
1 Answers
  1. Past mutual fund performance is not always guarantee of future performance as there are multiple factors involved. Fund manager may leave fund, company may be acquired (like fidelity case) etc. Its better to check portfolio once in a year atleast and pick/drop mutual funds. While choosing best funds check for their 5,3,2 and one year returns. Pick top five in all tenure and you may pick fund which appeared most in this list. You may also look for rated funds on ValueResearchOnline, Moneycontrol and MorningStar websites.
  2. Reliance RSF - Equity (G), Kotak Opportunities Fund (G) and HDFC Equity Fund (G) are good but comes under same multicap category. Pick only HDFC equity from these. Pick from IDFC Premier Equity or ICICI Pru discovery inspite of Sundaram Select Midcap -RP (G) in small and midcap category. Pick Birla Sun Life Dynamic Bond instead of Kotak Bond (Regular) (G) in Debt-income category. Also pick one each from (HDFC Top 200 or Franklin India prima plus) and (DSPBR Top 100 equity or Franklin India Bluechip) to balance your portfolio.
  3. Gold and property works on sentiments largely and they don't have real underlying value. These has no value except assigned by speculators. Gold has only improved in last decade whereas it did not have good returns prior to that globally. In India, rupee fall is also a reason for gold's rise even when global prices are stable. You should only have 10-15% of your portfolio invested into these. Property have large issues with it. It needs huge investment, there is no liquidity, If you need your money, its not easy to get it back. Plus government policies, natural calamities and other factors can almost kill an investment.
  4. Corporate FDs are not as safe as bank FD. RBI guarantees against bank FDs but not against corporate FD. If company is bankrupt, you may loose your money. More the interest offered, riskier it is. They raise money from public at higher rates because banks don't provide them cheaper loans because of their not so well business.
Pankaj Batra5212

Very Thanks for detailed clarifications on said points.

moobo•
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