Religare PSU Equity Fund
Are you looking for a safe investment and a good return in mutual fund category. Check Religare PSU Fund (RPF).
RPF is categorized as an equity diversified fund, The fund aims capital appreciation by investing in equity and equity related instruments of companies where the Central / State Government(s) has majority shareholding or management control or powers to appoint majority of directors.
As on 31st Jan 2010.
| Name of Holding | % Net Assets |
|---|---|
| NTPC | 9.63 |
| BHEL | 9.06 |
| ONGC | 8.92 |
| SAIL | 7.81 |
| Oil India | 6.25 |
| Power Grid | 5.31 |
| State Bank Of India | 4.84 |
There is a huge possibility that Indian government will disinvest it’s own stake in future.
Robust growth and stability of PSU stocks makes this fund very attractive for long term investment.
Sector wise this fund is investing apprx. 45% of capital in energy sector. With India’s massive power requirements, energy is the sector which will outperform in future.
Saying all this, RPF is worth looking at.
Systematic Investment Plans
Here I am with a new post !!
Every investor has gone through a question while investing, is this the right time to buy? The answer is you cannot time the market. It’s beyond our capability. Now with internet speed increasing day by day, information is readily available through blogs, news channels, web sites, iphone applications etc. Markets have become very volatile these days because of that. Whenever you invest your hard earned money, you should be very careful.
Systematic Investment / Withdrawal plans are the ways to invest in mutual funds. It’s like a recurring plan in bank where you have to deposit a particular amount every month for designated number of months.
SIP’s are very good investment options for people with limited financial knowledge, people who are very busy with their regular job, and housewives to save their regular income in MF. If you be systematic in your investment it’ll average the investment amount over number of months. This technique will eliminate the skill required to time the market. Also SIPs make you save particular amount every month so it’s like a disciplined way of investing. I like these plans very much for this reason.
MFs give growth as well as dividend option while choosing these types of plans.I saw people getting confused about which option to choose and finally land up choosing whatever their broker or bank suggests. It’s your money, you should be the one who makes the decision and not somebody else.
As I mentioned above, if you are very busy and don’t have time to look at your investments for months or you don’t know when to sell your MF units – go for dividend option. If you track your portfolio on a regular basis and have knowledge about market movements go for growth option. Growth option will accumulate the gains in NAV whereas dividend option will distribute the gain at regular intervals.
Some tips to choose mutual funds!!
- Check the average market capital, prefer > Rs.10,000 cr.
- There are different types of funds available like equity – high risk, balanced – moderate risk and debt – low risk.
- Check past performance.
- Check dividend history
- Don’t fascinate with big names, after all MFs are also doing a business. Do your homework and invest.
- Very good website for researching MFs : Value Research
In the next post, i’ll try to write something on advanced trading. Appreciate your comments about how the posts are coming.
