The World of Investments and Money

Thursday, December 14, 2006

Stock market rebound and mutual funds you must own

The stock market has finally rebound nicely after sliding down for a few days. Investors who bought at the peak when BSE was 14,000 and NSE was crossing 4,000 but sold when market started going down would have lost substantially. That is one of the reasons longs won't be affected by such short term trends or corrections. The market always goes up in the long term and they make money. That's a reason why buy and hold strategy works better in favour of more investors. Similar is the case with Mutual Funds.

Talking of mutual funds, the last issue of Outlook money had a list of 10 you must own. Here's the list in no particular order:

DSP ML Opportunities Fund
Franklin India Flexi Cap
HDFC Equity Fund
HDFC Top 200
Prudential ICICI Dynamic Fund
Reliance Vision
SBI Magnum Contra
SBI Magnum Global 94
Sundaram BNP Paribas Leadership
Sundaram BNP Paribas Select Midcap

Is it wise to own all 10 MFs? Is it possible that a few of them have matching portfolio and hence it wouldn't matter if you buy this or that. Having similar portfolio makes them behave the same with the money invested.
I don't own any of them, but if the Outlook guys have done the research right, some of them look tempting.


Random J. Investor said...

while googling blogs, I found that you were looking for a online trading portal that's firefox friendly... I too was looking for such service myself and matter didn't help that Debian GNU/Linux is the operating system that I use.

I stumbled upon this: -- UTI Securities, I read in a news site online that they had entered into a JV with Standard Chartered to offer brokerage services for Standard Chartered Bank customers.

I learnt that is independent by itself and was surprised to see this:

It says that trading platform supports Mozilla Firefox and Microsoft Windows * is only desired and not mandatory!

Price is equivalent to Kotak and ICICIDirect, the two brokerage services, which partially work in Firefox.

Don't go by any tips(perhaps the most cliched advice... er... no suggestion! ;)

Use to read recent news about the company, plan your investment considering even that.

The stocks you pick should be of known credible companies and, even if it plummets in these "corrections", it can be kept there for a year or two(at max.) and cashed off.


Anonymous said...

Thanks for the info, RJ! I guess I will wait a while before jumping into online trading. I've heard SBI too has entered into an agreement with Motilal Oswal group to offer online trading and should start next year. If I have to open another bank account for online trading, I'd prefer SBI over others. I have some MF investments through UTI securities so I should check with them more about it.
Good luck with your investments!

Random J. Investor said...

Not having to open a new account is exactly the reason, I am looking at UTI Securities.

Motilal Oswal's web interface is not known to work with any browser other than Internet Exploder.

Certainly don't hope that, SBI eZTrade(or however they spell that fancy name) to be a conservative firm without over-anxious employees ruining their reputation(like IndiaBulls' case where employees abused the Power of Attorney given by customers to sell their stocks without notifying them)... because this will be a new company with a reputation as good as any other brokerage service in the market.

Be cautious about Motilal Oswal too, as they were too indicted in the recent scams.

Anonymous said...

That's great indeed if it doesn't require investors to open an account. I will get more info from the relationship manager.
Thanks for the warning. I will keep it in mind and will do more research before persuing anything with the mentioned brokerage houses.

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