Thursday, January 03, 2008

Investment Strategies in 2008 !

I feel 2007 was very good year for Investments in Indian Stock Market. Mutual Funds rocked as usual. If you bought good stocks, they all benefited from the Bull run which was too good in 2007.

Looking back at 2007, specially considering the mutual funds. In my personal opinion one can apply this simple strategy to maximize gains or invest wisely in 2008. This are my strategies to simply life in 2008 !

  • Do not invest in more than 5 Funds of your choice based on ratings from http://www.valueresearchonline.com
  • Do not invest in NFOs ..Its not worth in long term even though it looks great sometimes - e.g. Reliance Equity
  • Do not play short term in Mutual Funds. Keep at least for 2-3 years
  • Do not sell for profits, sell only when you have your objective met e.g. Planned selling only for a objective
  • Do not invest in Equity IPO's.
    • Many will disagree with me but for a small investor investing somewhere between 50k to 1 lacs, its simply not worth the time and money. e.g. Investing 1 Lac in IPO, getting alloted only 10k worth of stocks, money locked for more than 1-2 months. Refunds are no managed well sometimes. e.g. For CENTRAL BANK IPO in 2007 for many investors, the registrar issuesed a cheque via Speed Post for the refund money:)
  • Invest regularly using SIP method
  • Invest in bulk in the same funds when you feel market has come down a lot(benchmark of MF NAV's need to be kept for that)
My favorite Mutual Funds
  • Fidelity Equity
  • HDFC Equity
  • Reliance Vision or Growth
  • Magnum Contra
  • HDFC Prudence




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2 comments:

Prem Sagar said...

Hi Sandeep,
I agree with you that we need to limit funds to 5. The simpler the better. And moreover, if you look at most funds, their top 5 companies overlap. So there is no need to diversify beyond say 5. (i have around 10...4 of which i have stopped adding to)

SIPs are definitely the way to go for an average investor.

My favorite funds have been
(3 ELSS and 3 diversified)
HDFC LTA
HDFC Tax saver
Franklin Taxshield

HDFC Equity
Franklin flexicap (I replaced Prima and Bluechip with this one fund...but still hold the other 2)
Fidelity Equity

Happy investing.

Regards
Prem

Venkat Muthukrishnan said...

HDFC Equity has lagged behind its contemporaries in the last 6 months to 1 year. I am thinking of stopping my SIP with HDFC Equity.
If you are ok with sector/theme based funds, then Reliance Media and Entertainment is a good one.
Reliance Pharma is also doing good particularly if you are a long term investor.
regards
venkateswaran
www.venkateswaran75.blogspot.com