Monday, July 28, 2008

Indian Mutual Fund Strategy for coming months - Part I

I believe it is time to redefine the strategy for Mutual Funds for coming markets. I have been thinking about it for sometime now. I am not expert on this but I believe that one needs to experiment a bit in order to gain in this kind of market where nobody knows whether it is in bearish phase or bull phase !

For those who were lured by the Borkers/Agents/Advisors to invest in Indian Mutual Funds in last six months or in late 2007 must be thinking that this Mutual Fund boom is over. And one should not never invest it in again. Just get out of the current investment and go back to good old Fixed deposits ..that too with Nationalized banks only ;) :)

Well I have a different opinion here. There is no need to panic with markets or try to run away from it. Just because the bears are back and they are taking away your returns as never before :)

But at the same time having good strategy do helps. Here is mine.

  • Stop all SIPs - Yes don't believe the Fund Managers and don't panic, but at the same time STOP SIPs for now
  • Redeem all Funds with profits - If you are lucky and still have some profit left in your earlier investment, please redeem that NOW!
  • STOP all Manual Investments - This is the most important point here. Many people have lost their profits just because they could not redeem the Funds as they were in a manual method. It was just laziness or ignorance which stopped them from redeeming E.g. Don't know what to do for redeeming, who is CAMSONLINE, Broker not available...etc
  • Prepare Net worth Statement - You need to take stock of your investments as well as expenses and income at once. If you have never made a Net Worth Statement till date. Search on Google and you will find many sample templates for doing this stuff easily.
  • Define Objective for Investments - If you had never done this. It is important that now we understand this concept of Investing with Objective and starting doing that. This will create lot of positive thought process in you - after going through this bearish phase - still counting though !
  • Pay mortgage partly - If you have home loan or any other loan. Please pay little bit more than what you have been paying monthly as EMI. Not too long ago (2003-2007) advisors/brokers/agents used to say that invest first and pay loan later from profit. I believe we need to do both together to gain most.
  • Start Online Investment with AMCs - In order to save 2.25% entry load, start investing with AMCs directly. Try do some research on this. Wait for few days and I will post something about it!
This is what I am doing for now. I will post more about how to plan the Investments in Mutual Funds and Stocks directly too in my Part II.

Happy Investing!


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Tuesday, July 22, 2008

Online Mutual Fund Services - be careful before you decide !

There is lot of trouble if you have taken account with

They stopped BUY option from their website 3 months back. Now their website is out of sync for the NAV information. So you need to do look out for REAL NAV information in websites like before you decide to SELL using their website ..well luckily the SELL option is still available !

So this is a good lesson learned for people who were looking for online options for MF services. So my recommendations would be :

  • Go directly with AMCs - the biggest benefit is the Entry Load - I am yet to verify this !
  • Better management of Funds
  • You actually need 2-3 AMCs to cover all the BEST Mutual Funds
  • Once you have done First Investment via the AMCs, they allow you to transact using their websites.
  • Going with Banks and established portals like ICICIDirect, HDFC is better than choosing some Online Broker for your investments.
  • I can't think of any other advantage at this point :)
Happy Investing !

Wednesday, July 09, 2008

HDFC Home Loan ...Excellent Online Transaction Services !

Recently when I got my HDFC Home Loan statement, I got to know that they have Online Services too :)

So went to the website and found out that they have excellent Online Transactions service for their Home Loan Customers. This is very good move by the bank. I am not sure which other banks have this service for their Home Loan customers, but this is very good. Mainly for NRI Customers where they need to get Income Tax certificates and other account statement online. No need to depend on the snail mail :) ..

Also the registration process is very simple. Just goto the web page : and provide your home loan account and create your online account with HDFC Home Loan. Immediately customers could login to the website and get all the required details for the Home Loan. Also there is a way to pay your Home Loan EMI via the website's secured payment gateway.

Only thing missing is the facility to pre-pay the home loan :) ..I hope they add that too in due course.

I know that ICICI Home Loan do have any such facility yet ...

Overall I like HDFC Bank. Their approach towards fairness in implementing policies is very good. Specially recently when one of my friend wanted to open Mutual Fund account with them. The relationship manager went out of the way to get the KYC done for the customer and activiated the MF account.

With all these nice things. They still need to more good job with their Interface design for the Online Mutual Fund web page! ICICI Direct is the best for the their Interface as well as providing all the Mutual Funds for subscription.