I want to invest Rs.6000 in growth mutual funds for 5 years and want maximum returns. I have four options 1.Reliance Growth Mutual Fund.2. Franklin Growth fund. 3. HDFC Growth Fund 4.Sundaram BNP Paribas Growth Fund>Tell me which one is the best?
2006-10-17 03:49:11 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Yes, you should probably diversify.
Here’s a simple, three-fund portfolio consisting of low-cost ETF’s that is likely to outperform anything your stock broker throws at you over the next 10 years.
Vanguard's Total Stock Market ETF – VTI – total market
iShares International MSCI EAFE value fund – EFV – value fund
iShares Lehman Aggregate Bond Fund – AGG – aggregate bond fund
2006-10-17 04:08:50 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
You have already received several answers advising you not to put all of you money into just one fund, expecially not a growth fund. I am in full agreement with the other responders advising against this.
Of course everyone want maximum returns. That is a natural human trait. At least I think it is. But the path to maximum returns is many times, not the obvious path.
In the U S, growth funds during the past 5 years have turned in the absolutely worst performances. Average about 3% a year. Whereas value oriented funds have averaged about 15% a year over the past 5 years. Of course it was not always this way. There have been periods when growth fund have outperformed value funds, but not in the last 10 years.
No one knows what the future might hold. It is best to hedge your bets by diversifying your investments into several different categories and that way attempting to better protect yourself against the uncertainties.
Also remember what happened in May. It certainly can happen again and growth oriented securities will feel the largest impact because they normally have the highest betas.
2006-10-17 13:29:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Don't buy mutual funds period. There are a number of fees involved that they don't have to tell you about. The fund manager has to get paid, and the ppl below him or her get paid. This cuts into your earnings. Bc they take out money that otherwise would go to you, they pay advisors to recommend them, which further cuts into their earnings.
Buying a mutual fund is like adding middlemen. Buying stock is much more direct. If you want diversity, do a little research and get it on your own by buying stocks in different industries. Don't be lazy, especially when there are so many tools to help you learn about companies and find good ones to invest in. Yahoo! Finance has a good stock screener to help you do that.
2006-10-17 13:33:50 · answer #3 · answered by STEPHEN J 4 · 0⤊ 0⤋
i m a mutual fund advisor. i will suggest u to have 3 funds with Rs 2000 pm in each of them under SIP i.e. systematic investment plan. u can give mandate to debit ur bank a/c monthly to the mutual funds. so it becomes regular and automatic.
i will suggest Sundaram Select Midcap fund, SBI MSFU contra fund and Franklin India blue chip fund.
mail me at nirmaljain@rushpost.com if u need more information.
2006-10-18 11:43:21 · answer #4 · answered by NirmalJain 2 · 0⤊ 0⤋
relience growth shall fulfill u r expectetions.
2006-10-17 10:59:19 · answer #5 · answered by nandu 1 · 0⤊ 0⤋
Do not put all of your money into one investment you may regret it.
2006-10-17 11:52:37 · answer #6 · answered by t j 2 · 0⤊ 0⤋
this will answer a few possible questions
http://www.fundalarm.com/
2006-10-17 17:12:55 · answer #7 · answered by Anonymous · 0⤊ 0⤋