This article on money control answers the most frequently asked and critical questions on Mutual Funds.
A must read for new investors in mutual funds.
Ace investors may also have a point or two to gain from this article..
Happy Reading...Link
Showing posts with label Questions answered. Show all posts
Showing posts with label Questions answered. Show all posts
Your queries answered
1) I have a SIP in ELSS fund for 3 years ( till 10 Apr 2009). Can I redeem the units from fund only after 10 Apr 2012 , after the 3 year lock- in period applicable for ELSS tax saving funds ?
Lock-in period in ELSS is applicable for units based on the date of purchase of that relevant unit.
Say I have an SIP for 6 months..
units purchased on 10th of may07 ,jun 07, jul 07, aug 07 ,sep07 ,oct 07.
redemption of units purchased on 10th may 07 can be dome on or after 10 may 10
same way ,units purchased on 10th jun 07 can be done on or after 10 jun 10. and so on
The lock-in for the units will be determined by the purchase date of that unit.
units purchased on 10th of may07 ,jun 07, jul 07, aug 07 ,sep07 ,oct 07.
redemption of units purchased on 10th may 07 can be dome on or after 10 may 10
same way ,units purchased on 10th jun 07 can be done on or after 10 jun 10. and so on
The lock-in for the units will be determined by the purchase date of that unit.
To determine one year holding to Equity MF for Long term capital gains, same rule needs to be applied.
Q & A - Mutual Funds
What do you think about the below mutual funds for long term, which one is the best . I am planning to invest, please spend some of your time and help me :)
1) Prudential ICICI infra
2) Reliance Growth
3) Reliance vision
4) Sundaram select midcap
5) Magnum Global fund.
Im looking for Equity diversified mutual fund for aperiod of 3-5 years. - ideasmoney blog visitor
1) Prudential ICICI infra
Infrastructure is a great growth area and it has fetched a lot of returns recently. This is a sectoral fund and carries diversification within the sector only. so , the risk/ return proportion is high. Sectoral Funds are not generally suggested for a beginner (investor).If you are willing to take the sectoral risk (infrastructure) ..you can go for it. ( Also look at Tata Infrastructure, Sundaram Capex before you decide)
1) Prudential ICICI infra
Infrastructure is a great growth area and it has fetched a lot of returns recently. This is a sectoral fund and carries diversification within the sector only. so , the risk/ return proportion is high. Sectoral Funds are not generally suggested for a beginner (investor).If you are willing to take the sectoral risk (infrastructure) ..you can go for it. ( Also look at Tata Infrastructure, Sundaram Capex before you decide)
2) Reliance Growth
4) Sundaram select midcap
5) Magnum Global fund.
All the three of the aforesaid funds are midcap funds . Midcaps tend to outperform other funds in the long term ..as the mid caps companies ability to grow is generally perceived to be higher than the large caps. But the time you keep invested in these funds need to be a bit longer than other diversified equity funds to fetch the results. You can definitely go for these, as you are looking for a 5 year investment period.( Sundaram midcap has multiplied money almost 9 times in four years and Reliance growth almost 25 times in 11 years!!)
3) Reliance vision
Funds like Reliance Vision, HDFC Equity are stable funds. They are more Large Cap oriented with an ability to fetch stable returns . They should form a core of your portfolio. (These are must haves and you can allocate a good share of your portfolio to these funds for more stability ).
Most importantly take the SIP route..happy investing
All the three of the aforesaid funds are midcap funds . Midcaps tend to outperform other funds in the long term ..as the mid caps companies ability to grow is generally perceived to be higher than the large caps. But the time you keep invested in these funds need to be a bit longer than other diversified equity funds to fetch the results. You can definitely go for these, as you are looking for a 5 year investment period.( Sundaram midcap has multiplied money almost 9 times in four years and Reliance growth almost 25 times in 11 years!!)
3) Reliance vision
Funds like Reliance Vision, HDFC Equity are stable funds. They are more Large Cap oriented with an ability to fetch stable returns . They should form a core of your portfolio. (These are must haves and you can allocate a good share of your portfolio to these funds for more stability ).
Most importantly take the SIP route..happy investing
Subscribe to:
Posts (Atom)