Posted by: Arihant Expert

Re: Suggest shemes for investmet, Rs25000 pm

Your choice of mutual fund sheme would depend on your investment horizon and risk profile. If you don't need the money for the next at least five years, we recommend the following four schemes for investment: 1. DSP BlackRock Equity Fund, 2. HDFC Top 200 Fund, 3. Templeton India Equity Fund and 4. Sundaram BNP Paribas Select Midcap Fund. These funds have proven long term track record. In case you need more details on the schemes or wish to invest, please email us at: mutualfund@arihantcapital.com . You can invest Rs 12,500 in two different schemes each or divide monthly SIP in 4 schemes. But remember, having too many schemes in your MF portfolio is also not recommended......... Now as for your current schemes: 1. SBI Contra Fund: Launched in 1999, the fund has had an impressive track record over the years, despite its frequent change in management. The fund has consistently beaten its category average and benchmark handsomely, however it did have a lacklustre performance in the initial 2-3 years of its launch. The fund is overweight on large cap stocks, with concentration in energy, financial services and engineering sector (46.5% exposure in these three sectors). Over the years, the fund has evolved into a much more conservative offering. The fund has clocked a return CAGR of 90%, 11% and 29% over a 1-yr, 3-yrs and 5-yrs period respectively. Once the fund manager takes a stance, he holds the stocks and avoids aggressive churning. We recommend to stay invested in the fund. ...... 2. Launched in 1994, Franklin India Prima Plus has outperformed its category average and benchmark over a 3-yr and 5-yr period. The fund also managed to contain its losses in 2008 meltdown by restricting its absolute fall to about 48% against 57% of its benchmark S&P CNX 500 and 52% of the Nifty and the Sensex. However, in the current bull run, the fund failed to make a mark by delivering just an average return. The fund lacked aggression in the recent yeas, and hence trailed th market returns. However, the fund has stocked up more on mid-cap stocks recently and increased its exposure to favourable sectors. With a decent performance history and ability to contain losses, you can stay invested in the fund. ..... 3. Sundaram BNP Paribas Media and Entertainment Opportunities Fund: A fairly new fund in the market (launched in 2008), it is a sector/thematic fund and hence entails very high risk. The fund has clocked a 1-yr return of 66%, faring well below the returns of other diversified funds. We recommend that you exit from the fund and rather deploy the proceeds in other good diversified equity fund like HDFC Top 200 Fund. For your future investments, go for experienced funds rather than some newcomer, and avod sector or thematic fund as point of entry and ext is very important in these funds, which is difficult to monitor and time.