Thursday, May 19, 2011

Investment Ideas for Kids - Moms Reviews

Visitors, Please feel free to add in more...

Key: Putting the eggs in different baskets

Minor PPF account.
gold- exchange traded fund via SIP (form of mutual fund)
More Gold ETF info here
Fixed Deposits
Mutual Funds - Mostly Diversified Equity(Which gives me liquidity, good distribution of investment avenue of my money in the equity market, no lockin period), ELSS ones (5 star rated ones alone and which are run by the best fund house/fund manager / and have proven track record , which give me tax savings plus good returns - 3 yr locking period)

- Split MF investments in 6 -7 best ones. Keep monitoring fund performance too and make wise switches among funds.

Madhu, you can think urself what you are looking for when it comes to MF - Do you have an orientation for largecap/midcap / bluechip kind of funds ? What is your risk appetite ? Do you need tax saving ? What is ur investment horizon ? Does liquidity matter to you ? You have already mentioned you'd invest quarterly . So, mode is ok. How better and how often you get time to monitor your fund performance and portfolio (top stock holdings of the fund) ?

As you have mentioned abt current investments - both are reputed good fund houses.

HDFC Prudence is a balanced fund :) A good (optimal) performer for those with moderate risk appetite. Reliance Vision - A good diversified equity fund.

To understand where your money goes , where it gets invested, how much % , what kind of sector - is it - its a well established mostly bluechip rated segment (large cap) or a fastgrowing segment with some risk potential (midcap) or totally new shores (small cap - highest risk) and how it reaps returns for you - its past performance (We know its no guarentee for same future returns.but atleast you know the track record) , How the fund has performed compared to its peers . What is the value research star rating , how experienced is your fund manager - how are perf. of funds that he manages, what is fund house strategy

These questions would matter while you make your selection.

You can learn more going through each of these. I have been investing in MFs more than 7 years now and I am glad - its a good choice. - the funds where i've put my money.

Insurance (Protection, Savings and tax saving).
Real estate - Includes regular income generating commercial complexes as well as empty plots with money multiplying potential as well as real estate venues as residential homes which gives one excellent tax saving as Home loan as well as is an asset.
Post Office Savings.

Courtesy:  Anusha, IP

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