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Q.

How important it is to have a good mix of Large, mid & small size funds in the selection of a Mutual fund?
Regards,
Ramanand Tiwari

Tags: regards, ramanand tiwari, selection of a mutual fund
Asked by ramanand tiwari, 29 Apr '07 06:00 pm
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Answers (2)

1.

It would depend on ur objective. But from view point of diversification it is prudent to have around 60% of money (not applicable to everyone as a blanket rule) into large cap stocks/ funds which should form part of our core portfolio. This adds a good amount of stability to the portfolio. The remaining should be made up of mid and small cap companies. It adds a puch to the returns in the long run inspite of carrying more risk. If u look at past data u can observe that different caps tend to perform differently over time.

This is V Sridhar here a Specialist in Financial Planning.
Answered by sridhar veta, 29 Apr '07 08:37 pm

 
  
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2.

Hello.My advice for your long term investment would be these fund schemes.These funds are Equity linked and have delivered good returns when the market has gone up and sustained the bad periods of the market since its inception.Hence they are the proved ones.They are tax free for upto 1Lac rupees invested in them.Equity linked Mutual Fund earnings are Profit (or) Loss earnings and not interests (or) fixed income earnings as in case of Balanced (or) Debt Funds.Try to invest in 3-5 schemes if you can to diversify your portfolio.They are 1)SBI Magnum Global-G(Blue Chip),2)SBI Magnum Contra-G(Midcap),3)Franklin India Prima Plus-G(BlueChip),4)Sundaram Select Midcap-G(Midcap),5)Reliance Vision-G(Midcap),6)HDFC TOP 200(BlueChip),7)HDFC Tax Saver,8)SBI Magnum Multiplier Plus-G(BlueChip),9)SBI Magnum Taxgain-G,10)HDFC Equity-G(LargeCap)
You may invest in any of these funds for your long term plan(above 5 years atleast) and you will surely get good returns.Remember invest 60% of your investment ...more
Answered by Abdul Rehman, 12 May '07 11:36 am

 
  
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