How to Select Your Mutual Funds

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      Selecting a mutual fund is more or less like selecting a stock but the
variation to the list is less frequent when it comes to mutual fund than in
stocks. I would suggest you some of the best funds which are tested over
Best Funds
    1. DSP Blackrock Mutual Fund
            a. DSPBR LYNCH T.I.G.E.R Fund
            b. DSPBR Equity
    2.  Fidelity Fund Management Private Limited
            a. Fidelity Equity Fund
            b. Fidelity International Opportunities Fund
    3.  ICICI Prudential Mutual Fund
            a. ICICI Prudential Services Industries
            b. ICICI Prudential Infrastructure
    4.  Reliance Mutual Fund
            a. Reliance Growth Fund
            b. Reliance Vision Fund
    5.  SBI Funds Management PVT LTD
            a. SBI Magnum Sector Funds Umbrella Contra1
    6.  Sundaram BNP Paribas Mutual Fund
            a. Sundaram BNP Paribas Select Midcap
    7.  Birla Sun Life Asset Management Company LTD
            a. Birla Mid Cap
    8.  HDFC Asset Management Company Limited
            a. HDFC Top 200 Fund
    9.  TATA Mutual Fund
            a. TATA Infrastructure Fund
      1 = Minimum investment amount is 2000 Rupees. Rest are all 5000 Rupees.
      If you prefer to make a one time investment into the above funds
they have a minimum requirement of 5000 Rupees. The number of funds
you select depends on your investment budget and risk appetite. You can
select as many of the above funds as you like or you can use the above
list or can even make a subset of the above list or add more in your
investment portfolio.
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                    Fund Name                    Min Period in Min Amt in
                                                    Months      Rupees
DSPBR LYNCH T.I.G.E.R Fund                             6         1000
DSPBR Equity                                           6         1000
Fidelity Equity Fund                                  10          500
Fidelity International Opportunities Fund             10           500
ICICI Prudential Services Industries                   6          1000
ICICI Prudential Infrastructure                        6         1000
Reliance Growth Fund                                   6          1000
Reliance Vision Fund                                   6         1000
SBI Magnum Sector Funds Umbrella Contra               12           500
Sundaram BNP Paribas Select Midcap                    12          250
Birla Mid Cap                                          6         1000
HDFC Top 200 Fund                                     12          500
TATA Infrastructure Fund                               5          1000
      Above table is for systematic investment plan (SIP) which tells you
what is the minimum amount you should be investing in SIP and for how
many minimum months.

      After reading through so many chapters this is the time where we
start to lose money. Why I say lose is because we are learning and so if
we lose the money to start with we would have good knowledge of
things. If we make money, you should consider yourself lucky and if you
loose some consider it as the fees to some institution to learn stock
investment in a practical way.
      The investment should be such that you invest very small amount
(probably the minimum possible) in your entire list of stocks and funds
selected in the previous steps. This investment is not for making money
but to understand the stock market. When you have some money invested
in stocks you would concentrate more on its moves and read news about
the upcoming events of the company.
      Minimum investment for investing in any stock is either 1 unit of
share or 500 to 1000 Rs per stock depending on your broker’s minimum.
Normally it’s 500 Rs for most of them.
      I would show mutual fund investment with an example using the
table in Chapter 5. Assuming we are investing in all the 13 of the
suggested funds for the minimum possible amount.
Orthodox SIP
      If you start a Systematic Investment your per month investment
would be 10250 for first 5 months, 9250 for next month, 2250 for next 4
months and 1250 for last couple of months which makes a total sum of Rs
72000 over a span of 12 months.
      If you do direct investment then your investment would be Rs 62000
(12×5000 + 2000) for investing in all the funds in the list.
My Special SIP
      As we have selected 13 funds and we are planning to do some
investment over a span of time I select one fund each month and do a
Non-SIP investment into that fund.
      E.g.:- You invest in Tata Infrastructure Fund in First month for a
minimum amount of Rs. 5000. Then in second fund you select Sundaram
BNP Paribas Select Midcap fund and so on and continue for 13 months


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