First Question
Sir I have Rs. 100,000 to invest, what should I do? Want to invest for 7 years…
Answer: In such turbulent times you should not invest in an equity scheme. So please invest this money in a clutch of balanced fund – Franklin Templeton Balanced fund, Reliance..fund (do not remember which), Hdfc Prudence fund, and DSP Blackrock balanced fund.
I would have done it as follows:
My take: What is your age? and how long can you not worry about this and what is the amount of fluctuation that you can take.
If you can take a 25% fall look at equities – be ready for a 4500 nifty. Do a SIP for 6 months – not 2 years. Then relax. And it better be an equity fund like Franklin India Bluechip, Icici prudential discovery, Hdfc Top 200 or Hdfc Equity fund.
If you think this is too confusing, put in Templeton India Index fund.
Second Question
Is Franklin India Bluechip a good fund to invest?
Answer: Yes, it is a good fund and it has given a return of 84% last year. It has fallen less than the index during bad times and has given a 25% return over the life of the fund.
My take: I can swear that when it was under-performing, it was touted as a bad performer and another business channel was saying ‘it is now not a good fund, come out of it’. Luckily one editor and I discussed this particular scheme – and she said ‘I am happy with its performance why is this channel saying sell?’
She was then a kid…I said ‘Hey kid welcome to the world of financial journalism’..I will not name her here…but I hope she comes and comments, she is a regular blog reader anyway!!