Guys.
What equity mutual funds would you recommend for someone who lives in India and can legally invest in mutual funds. Investor horizon is long term.
Note : This is not for USC or other categories who cannot invest in India MF.
How does this allocation look ?
PruIcici Nifty : 50%
Sundaram Select Midcap : 30%
Franklin Flexicap : 20%
Sample 3-4 Fund Portfolio for India Residents ?
Sample 3-4 Fund Portfolio for India Residents ?
This looks good to me.
Some thing I wrote in 2004 for selection of indian mutual funds..
Introduction to Indian Mutual funds /Selection of funds : Part1, Part2
Indian Mutual Funds FAQ
Some thing I wrote in 2004 for selection of indian mutual funds..
Introduction to Indian Mutual funds /Selection of funds : Part1, Part2
Indian Mutual Funds FAQ
Sample 3-4 Fund Portfolio for India Residents ?
RRK,
I was looking for Fund of Funds in India such as we invested back in US -- Vanguard STAR.
So far I have found the following:
http://www.franklintempletonindia.com/GeneralAccess/Mfs/FTLF.asp
http://www.franklintempletonindia.com/GeneralAccess/Mfs/FTDPEF.asp
This is not exactly as STAR but come close it and please post if there are any alternatives.
thanks,
Nagari
I was looking for Fund of Funds in India such as we invested back in US -- Vanguard STAR.
So far I have found the following:
http://www.franklintempletonindia.com/GeneralAccess/Mfs/FTLF.asp
http://www.franklintempletonindia.com/GeneralAccess/Mfs/FTDPEF.asp
This is not exactly as STAR but come close it and please post if there are any alternatives.
thanks,
Nagari
Sample 3-4 Fund Portfolio for India Residents ?
dvfinance;43863Guys.
What equity mutual funds would you recommend for someone who lives in India and can legally invest in mutual funds. Investor horizon is long term.
Note : This is not for USC or other categories who cannot invest in India MF.
How does this allocation look ?
PruIcici Nifty : 50%
Sundaram Select Midcap : 30%
Franklin Flexicap : 20%
What is the idea behind adding Franklin Flexicap here? Doesn't it overlap with Nifty and Midcap? Rather it might be good to add small portion on small cap? As per valuesearchonline, Flexicap has about 25% invested in small and midcap, rest in large cap.
http://www.valueresearchonline.com/funds/fundanalysis.asp?schemecode=2605
Sample 3-4 Fund Portfolio for India Residents ?
The diversification of indian mutual funds leave lot to be desired.
I was just browsing HDFC mutual fund fact sheet for the month of Aug 2007.
8 out of top 10 funds are repeated in almost all of the funds in their family. Only the ranking order is different.
If you are selling the same shampoo, why package it in so many different names.
The funny side is your AMFI ceritified agent will be asking you to quit from one and buy the other. The fund names has no meaning in this part of the world, our fund managers have learnt all the bad stuff from US managers. Is this why they go for partnerships ?
Nifty index fund has 200+% turnover. Some of the funds hoard about 20-25% cash. Why pay 2.25% expense for holding cash ?
All these issues are defended by Sensex performance... :(
SEBI has no backbone to step in to defend the small investors.
I was just browsing HDFC mutual fund fact sheet for the month of Aug 2007.
8 out of top 10 funds are repeated in almost all of the funds in their family. Only the ranking order is different.
If you are selling the same shampoo, why package it in so many different names.
The funny side is your AMFI ceritified agent will be asking you to quit from one and buy the other. The fund names has no meaning in this part of the world, our fund managers have learnt all the bad stuff from US managers. Is this why they go for partnerships ?
Nifty index fund has 200+% turnover. Some of the funds hoard about 20-25% cash. Why pay 2.25% expense for holding cash ?
All these issues are defended by Sensex performance... :(
SEBI has no backbone to step in to defend the small investors.
Sample 3-4 Fund Portfolio for India Residents ?
Simpler portfolio for India
Franklin Templton India Index Fund (NIFTY) = 40%
Sundaram Mid Cap =20%
PPF To maximum possible extent
+ POMIS
+ EPF =X%
ICICI Prudential Flexible Income = (40-x)/2 (Expense 0.39%)
Templeton India Income = (40-x)/2
The problem with the fixed income funds are that they are changing very fast. At times, they are corp bond funds, and couple of months later they are fully invested in Govt bonds!)
Franklin Templton India Index Fund (NIFTY) = 40%
Sundaram Mid Cap =20%
PPF To maximum possible extent
+ POMIS
+ EPF =X%
ICICI Prudential Flexible Income = (40-x)/2 (Expense 0.39%)
Templeton India Income = (40-x)/2
The problem with the fixed income funds are that they are changing very fast. At times, they are corp bond funds, and couple of months later they are fully invested in Govt bonds!)
Sample 3-4 Fund Portfolio for India Residents ?
AAR7412;56008Simpler portfolio for India
Franklin Templton India Index Fund (NIFTY) = 40%
Sundaram Mid Cap =20%
PPF To maximum possible extent
+ POMIS
+ EPF =X%
ICICI Prudential Flexible Income = (40-x)/2 (Expense 0.39%)
Templeton India Income = (40-x)/2
The problem with the fixed income funds are that they are changing very fast. At times, they are corp bond funds, and couple of months later they are fully invested in Govt bonds!)
I read few articles on Indian Finance sites that say that Indexing is not recommended in India as there are many inefficiencies and only active funds can take advantage of this.
What's the expert opinion on this?
Thanks.
Sample 3-4 Fund Portfolio for India Residents ?
Hi VRG, I'm not an expert, but my $.02 are as follows
If you look at 5 year returns of index funds versus diversified actively managed funds (at valueresearchonline.com), you'll see that the average actively managed fund beats the index by quite a bit.
So there is some factual evidence to the assertion that there are inefficiencies and the actively managed funds are able to take more advantage of them.
But how long will this continue is the million dollar (soon to be million rupee :emsmilep: ) question. If you look at just the last 1 yr (an year that had a couple of sharp corrections) you will see that index funds actually beat the average diversified fund (not by much, but nevertheless). So maybe index funds are better in the years of high volatility?
My opinion is - Why not do a little of both? Index funds have lower expenses and no FE loads so there is some advantage there and then you can also pick up a diversified large cap and mid/small cap actively managed fund to complete your portfolio.
So IMO, with 3 funds (1 index, one large cap diversified and one mid/small cap diversified) spread across different fund houses one can pretty much run the gamut on the Indian equity market.
If you look at 5 year returns of index funds versus diversified actively managed funds (at valueresearchonline.com), you'll see that the average actively managed fund beats the index by quite a bit.
So there is some factual evidence to the assertion that there are inefficiencies and the actively managed funds are able to take more advantage of them.
But how long will this continue is the million dollar (soon to be million rupee :emsmilep: ) question. If you look at just the last 1 yr (an year that had a couple of sharp corrections) you will see that index funds actually beat the average diversified fund (not by much, but nevertheless). So maybe index funds are better in the years of high volatility?
My opinion is - Why not do a little of both? Index funds have lower expenses and no FE loads so there is some advantage there and then you can also pick up a diversified large cap and mid/small cap actively managed fund to complete your portfolio.
So IMO, with 3 funds (1 index, one large cap diversified and one mid/small cap diversified) spread across different fund houses one can pretty much run the gamut on the Indian equity market.
Sample 3-4 Fund Portfolio for India Residents ?
Just my 2 cents...
Why invest in MF and pay fees to manager? You can just pick top leader in industry and invest their.
Banking-Finace-- HDFC Bank- ICICI Bank-Kotak-Reliance Money
Infrastructure- L&T- Bhel-DLF
Energy- RIL
IT- INFY
Communication - Bharati- Reliance Comm
As RRK said long time back selcet Nfity 50 and invest there.
If you do not have time to do DD then pick top 5 from last 5 yrs
1 Reliance Growth
2 Magnum Contra
3 Magnum Global
4 DSP Merrill Lynch
5 Reliance vision
You may wnat to check these funds also....
Standard Charted primer Fund
Fidelity Equity Fund
Sundaram Select Midcap Fund
Franklin India Opportunities Fund
Reliance Media & Entertainment Fund (Risky)
PS. I have not invested in any of these funds, My most of the exposer to Indian equity mkt is in directly in stock.
Why invest in MF and pay fees to manager? You can just pick top leader in industry and invest their.
Banking-Finace-- HDFC Bank- ICICI Bank-Kotak-Reliance Money
Infrastructure- L&T- Bhel-DLF
Energy- RIL
IT- INFY
Communication - Bharati- Reliance Comm
As RRK said long time back selcet Nfity 50 and invest there.
If you do not have time to do DD then pick top 5 from last 5 yrs
1 Reliance Growth
2 Magnum Contra
3 Magnum Global
4 DSP Merrill Lynch
5 Reliance vision
You may wnat to check these funds also....
Standard Charted primer Fund
Fidelity Equity Fund
Sundaram Select Midcap Fund
Franklin India Opportunities Fund
Reliance Media & Entertainment Fund (Risky)
PS. I have not invested in any of these funds, My most of the exposer to Indian equity mkt is in directly in stock.
Sample 3-4 Fund Portfolio for India Residents ?
Hi Lakshya,
I have not done much research on brokerage fees and costs associated with trading stocks in India, but if I were to invest in the Nifty by buying the stocks individually that make up the index, I would incur trading costs when I buy/sell/rebalance to the Nifty at regular intervals.
Not sure which is more - the trading costs and the time spent rebalancing versus the .5% (or sometimes lower) that index mutual funds charge as expenses (and there is no load)
I would personally pick an index mutual fund, but that is where PFIC comes in and makes it worth considering individual stocks that make up an index. Also, from the individual stocks you would need to weed out certain banks that are considered PFIC. I think its a lot more complicated - but thats just me.
I have not done much research on brokerage fees and costs associated with trading stocks in India, but if I were to invest in the Nifty by buying the stocks individually that make up the index, I would incur trading costs when I buy/sell/rebalance to the Nifty at regular intervals.
Not sure which is more - the trading costs and the time spent rebalancing versus the .5% (or sometimes lower) that index mutual funds charge as expenses (and there is no load)
I would personally pick an index mutual fund, but that is where PFIC comes in and makes it worth considering individual stocks that make up an index. Also, from the individual stocks you would need to weed out certain banks that are considered PFIC. I think its a lot more complicated - but thats just me.