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SBI MSFU CONTRA |
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Deepak
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| 02 March 2009, 22:39:10 |
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WHETHER TO CONTINUE OR REDEEM |
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Re: SBI MSFU CONTRA |
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Sandip
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| 18 March 2009, 22:44:44 |
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it very good fund continue |
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Re: SBI MSFU CONTRA |
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Goel
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| 20 March 2009, 10:13:50 |
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My SIP in SBI contra gtowth is running. How I can see full statement of above investment. |
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Re: SBI MSFU CONTRA |
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Amal
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| 29 March 2009, 06:04:52 |
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Dear Deepak
it all depends when you have invested in this fund. Had you invested in the fund wherein you are seeing a negative then my advice to you is to invest and average out to get a lower average acquisation cost and once the cost is offset you may decide on to stay or get out of the fund. besides this if you are having an sip on in this fund than you may just continue as sip here would help averaging and once the markets revive you may then take a stock of the situation and decide accordingly. my personnal opinion of the fund is that over the life of the fund the scheme has shown more volitality which would be uncomfortable for any normal investor.
Mr Goel you can request for a statement from the fund house or your broker and they would provide you with the details. |
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Re: SBI MSFU CONTRA |
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Hi Deepak,
Looking at the track record of the fund and the FM, I believe that you can stay invested with the fund for quiet a while. If the current value of the fund reveals some positive numbers and are invested for a period of more than one year then you can shift your monies to ICICI Prudential Index Plan - Nifty for better returns with a lesser entry load in this bull run since they are more or less 100% invested unlike SBI Contra fund. |
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Re: SBI MSFU CONTRA |
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Amal
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| 07 May 2009, 06:51:04 |
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I am really surprised why a index fund? sir when you are going to be there for the long haul then i need to have actively managed fund than a passively managed fund. I want a reasonable amount of out performance. this is the reason I am paying fund management fees to the fund house.
moving funds from one fund to another fund and back again i am incurring cost. what about this.
I beleive in having a good neat small portfolio and a diciplined way of investing if you had done your home work correctly or you had the right advisor you almost would get the right combination. and then there is no need to fret and fume over these issues. |
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Re: SBI MSFU CONTRA |
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I appreciate your query.
There are number of reason for recommending an index fund during these days:
1. Active fund management generates an extra alpha by taking concentrated bets just to out perform their respective benchmarks. If u track the performance of the funds, hardly you would find the same fund out-performing the benchmark for a period of 3-5 years
2. During times like the one we observed recently when markets have tanked to reasonably panic levels, one would wish to make the most of it, but since fund mangers being humans at the end of the day shy of from taking calls and sit on reasonably high cash levels, leading to miss a rally like the one which we had currently observed
3. Nothing but law of averages only works out in the long haul & the only average is the INDEX or MARKET whatever we call. At the end of the day, fund managers compare their performance with the benchmark only and the most common benchmark is NIFTY or SENSEX
4. I can quote numerous examples where funds managed by reputed fund managers have underperformed the benchmarks even after being able to beat the same for a fairly food period. Some of them are - JM Emerging Leaders, Sundaram Select Focus and the list goes on....
5. Indices are so professionally managed that any aberation will be adjusted as soon as it comes to notice. For this I would like to quote the recent example of SATYAM. Within few days of the outbreak of SATYAM scam, it was removed from the index, and REL CAPITAL was taken in place of it. While many active fund managers were caught up, as they were not able to exit from it and they survived a reasonable under-performance.
By quoting the above points I don't want to bring home the point that active fund management is bad or whatsoever.. I just want to convey the point that during times when a 100% investment into the markets would have benefited, it makes sense to have a higher weightage of index funds in your portfolio. |
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Re: SBI MSFU CONTRA |
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Amal
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| 08 May 2009, 06:26:30 |
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dear chirag
Point taken for the window oct-08-april-09 or many similar situations, but the fact still remains if the fund managers were shying away and committed some errors. what about the normal investor. As the above case was there is an SIP going-on in this fund it is very good and it would be even better if he was maintaining this the positive would any way come. One more issue here is that this is a volitile fund and such funds tend to be good for sips. I don't want to name any funds here on professional level i can list out atleast 25 good funds which can be used for machinical investing and who have delivered good returns which are very good for an investor who comes with limited resources and knowledge. Similarly i would be able to list some funds who over their existance have not really created any good lasting impressions on the minds of investors.
my contention was why move from one place to another and back again increasing expenses. I belive in the KISS technique it should be so simple that all are comfortable doing it and belive me a few percentile changes in a short while (if you are lucky to catch it) will not matter over the longer period of time. the compounding factor will eclipse oall the undoing. |
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Re: SBI MSFU CONTRA |
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Hi Amal,
I agree with your point. I also believe in KISS principle, that's why I believe in having some part of the investor's portfolio to be free from human error (what we call as fund manager's risk). By investing in indices one is exposed to nothing but market risks, which can be very helpful during times like this.
I am strictly against undue exits and entries unless there are changes in the fund management team or a continuous significant under-performance.
If you can go thru my earlier posts, I have never mentioned of exiting or entering the fund just like traders or speculators. Also to mention that, I advised to exit only if the investment is over a period of one year so that its not eligible for an exit load or a capital gain. |
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Re: SBI MSFU CONTRA |
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Amal
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| 10 May 2009, 06:05:28 |
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hi chirag
I am a firm beliver tha my client has to take the rupee longest and work with a concept which questions will i do this with my money? then go with the answer.
well we had a good discussion on this issue. you could be right at this point but i go with the thought process that an sip will surely help the situation in which deepak is.
thanks again hope to be in touch |
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