Good Funds to Invest

Q. I have Rs. 2.6 Lacs currently. I am confused as to which funds should I invest in, so that I get a good return. Please Help. AK Bidar

A. Choose from any top performing five or four star rated fund like Birla Frontline Equity, Reliance Vision, HDFC Equity, or Franklin India Prima Plus.

Q. Will the market go up or down in the short term?
A. It is difficult to predict future market movements. For investing, consider a systematic investment plan and avoid lump sum investments.

Q. I had invested in Sundaram BNP Paribas Rural India Fund. Please advise its future?

A. It is a relatively new fund which has done well till now. Remain invested and evaluate its performance over time.

Q. How is Sundaram Capex (G) fund? Is it same as infrastructural funds?
Sharma S. Amritsar

A. Sundaram Capex fund has a portfolio that looks identical to an infrastructure fund. It's not a very old fund, but has done exceptionally well in the past one year.

Q. I want to buy UTI Infrastructure Advantage and ICICI Prudential Real Estate. Both are new. Is my choice right.
Sanjay Gupta Feroypur, Punjab
A. UTI Infrastructure Advantage is a closed end infrastructure sector fund whereas ICICI Prudential Real Estate fund is a closed ended debt fund which will invest in the real estate sector.

As new funds have no track record or performance history, it is better you invest in some old, performing funds which have a good track record.

Q. I did a sip of Rs. 1000 per month in SBI Magnum Tax Gain, Reliance Vision, Reliance Power and ICICI Infrastructure. I want to invest for a long term.How's my decision?
Amar
A. These funds make a good portfolio. Continue investing.

Q. What about HDFC Unit Linked Young Star. I can invest Rs. 25000/- monthly. Should I invest in this or somewhere else? Please suggest.

A. ULIPs are expensive products. Choose any well performing diversified equity fund for investment like HDFC Equity, Reliance Vision, or DSP ML Equity. For life insurance, opt for a term plan.

Q. I have invested Rs 20000 in UTI Contra Fund. Shall I continue or withdraw?
- Pramod, Sambalpur
A. UTI Contra is a relatively new fund which has not done well. Withdraw and invest in some other top performing equity diversified funds.

Q. I want to invest Rs. 5 lacs in one go. Please suggest the funds. Rajendra Sharma
A. If you want to invest in one go, invest in a liquid fund like HDFC Cash Management Savings or TATA Liquid. From these funds initiate a systematic transfer plan (STP) to a top performing diversified equity fund like HDFC Equity or TATA Pure Equity.

Q. I want to invest Rs. 30000 for tax planning. Please suggest me good funds.
Tanuj

A. For tax planning choose from five or four star rated tax saving funds like SBI Magnum Tax Gain, HDFC Tax Saver or Sundaram Tax Saver.