Few good Mutual Funds for Systematic Investment Plan (SIP)

Here are few good Mutual Funds for SIP

Large Cap:
1. Birla Sun Life Frontline Equity Fund
2. Kotak Select Focus Fund

Small & Mid Cap:
1. DSP BlackRock Small and Mid Cap Fund
2. Mirae Asset Emerging Bluechip Fund
3. Reliance Small Cap Fund

Diversified:
1. DSP BlackRock Opportunities Fund
2. Sundaram Rural India Fund

Sectorial Fund:
1. Reliance Banking Fund

Systematic Investment in Mutual Funds

How to start mutual fund SIP online (without any agent)?
Many of us think on buying a mutual fund and their assumption is that if we buy it online, there will be no commission. There are many sites which says they are channel for online mutual fund purchase. All this is just a marketing strategy to attract small investors like us.
So which is the best option to start a Mutual fund SIP?
There are different categories of mutual funds like LargeCap, Small & Mid Cap, Diversified, Sectorial, ELSS.
If tax saving under Income tax section 80C is not the purpose of your investment, then that is good point to start with.
First and most important suggestion is that Don't invest in too many funds. 5-8 mutual funds of different categories are enough.

Do some research and finalize the mutual fund in which you are planning to start SIP.
There are many ways to finalize good mutual fund.

Assume that you have Rs.10,000 to invest in Mutual fund through SIP every month.
What you should do next?
1. Do not invest in single fund.
2. Do not invest in funds of only one category.
3. Best ways to invest is divide your investment amount as 40% in Largecap, 30% in Mid & smallcap, 20% in diversified, 10 % in Sectoreal. (You can decide on percentage)
4. Sectorial funds are more risky so keep track of that fund and you can switch/move funds between different sectors but don't do it more than once per two years.

Where to Invest
Division of your 10000/- will be
1. 4000/- in LargeCap - Choose 1 or 2 good performing Funds
2. 3000/- in Mid & SmallCap - Choose 1 or 2 good funds
3. 2000/- in Diversified - Choose one good fund
4. 1000/- in Sector fund - Choose one good fund

So you will invest in around 4 to 6 mutual funds only.
If you feel that your fund is not performing good enough, you can change fund but it should not be done before analyzing your SIP returns for at least 15 months.


How to Invest
Go to mutual fund website and there is option for online investment option.
Choose Direct plan of mutual fund
There is no agent commission in Direct plan so you will find difference in NAV of Direct and regular plan of same mutual fund.


Difference between Direct and Regular plan of Mutual Fund

Direct plan : You subscribe directly without agent. Expense ratio is less than regular plan.

Regular : Subscribed through agent.

Update on redemption of Tax saving Mutual funds of year 2010

Earlier I had given details of investment made in tax savings mutual funds in year 2010 and recently in early 2013.
Three year locking period was completed In January 2013 for all the investments done in 2010.
My observation during these three years:
1. Fixed deposit or PPF is better option for tax saving.
2. ELSS mutual fund returns are not good. Instead it is better to invest in PPF for tax saving purpose.
3. Investing in Good stocks if you want to get benefit of appreciation from stock market as Good stocks will give returns better than ELSS Mutual funds as there is additional cost involved in mutual funds like fund management, employee cost, commissions etc.

Details of Redemption:

Fund Name	Purchase Date	Purchase Amount	Sell Date	Sell Amount
Kotak Taxsaver - Dividend (KM100)	21/12/2009	2000	07/01/2013	2563.15
Reliance Tax Saver Fund - Dividend (RC182)	07/01/2010	5000	18/02/2013	4802.12
SBI Magnum Tax Gain Scheme 93 - Dividend (SB023)	07/01/2010	5000	18/02/2013	4015.40
Birla SunLife Tax Relief 96 - Growth (BM382)	07/01/2010	5000	10/01/2013	5440.54
HSBC Tax Saver Equity Fund - Dividend (HS107)	07/01/2010	3000	18/02/2013	3361.75
Religare Tax Plan - Dividend (LT011)	08/01/2010	2000	29/05/2013	2077.75
HSBC Tax Saver Equity Fund - Dividend (HS107)	27/01/2010	2000	18/02/2013	2241.16

Dividend is also credited for few dividend schemes and Details of dividend is as below:

• Reliance Tax Saver Fund - Dividend
• 11-Feb-2011 : 520
• 29-Mar-2012 : 520
• 25-Jan-2013 : 243
• Total Dividend: 1283
• Religare Tax Plan - Dividend
• 20-Jan-2011: 312
• 30-Mar-2011: 117
• Total Dividend: 429
• HSBC Tax Saver Equity Fund - Dividend
• 19-Feb-2010: 373
• Total Dividend: 373
• SBI Magnum Tax Gain Scheme 93 - Dividend
• 22-Mar-2012: 394
• 18-Mar-2011 :450
• 05-Mar-2010 : 450
• Total Dividend: 1294

Intraday trading : 6 May 2013

Today, there was no clear idea which way the market will move. Banking stocks opened in negative. Asian market was in positive so I was doubtful that Nifty may go up after opening.
I bought 20 Axis Bank shares at 1446 in that anticipation when that stock was falling. Luckily it reversed from where I bought it (with low of 1445).
I placed sell order for 10 Shares at 1450 to book small profit instead of waiting. It got executed within 5 minutes.
But Axis bank again started moving down and came to 1447 so I placed sell order of 5 each at 1451 and 1452.60. Within 5 minutes those 2 orders also got executed and it moved upto 1158.
I thought, it will come down so I placed sell order of 10 shares at 1159.60 and it got executed immediately and still stock was moving up. So I added sell position by 5 at 1162.50.
I added 5 more at 1166.10. and placed buy order of 5 shares at 1157 and one more buy order of 5  shares at 1456.25.
Axis share was moving between 1460-1465 for few minutes so i was bit worried. But luckily it fall sharply and both my buy orders got executed.
So now i was having only short position of 10 shares. I put buy order of 1454 for 10 shares.
But suddenly it started moving up and went above 1465. I added 5 mor at 1470 and cleared it immediately at 1464 because it was very volatile and if it moves up then i was at risk.
Still buy order of 10 shares at 1454 was open. Axis bank stock was above 1463 for half an hour. I was doubtful whether it is upward breakout.
But suddenly it fall and came below 1460. I modified buy order for 5 shares at 1455.30 at it got executed immediately after 12 p.m.
Now i was having only 5 shares which got squared of at 1454 after an hour.

Transaction Details

Good day again which ended in profit.
I will update final details after brokerage and taxes once i get mail from sharekhan.

Profit after brokarage : Rs.156.90

Intra-day trading experience

Last few days, I am doing small amount of intraday trading occasionally. New plan for new financial year.
Luckily, no loss till date. I was expecting loss today but axis bank fell after 10:30am. I shorted 30 at average price of around 1464 and it went up after that up to 1480. It went down and i booked profit at around 1456.
I am not trading daily because daily trading is very risky. I shorted axis today because it was continuously going up. My trade was going wrong within few minutes but luckily went into profit. Today i traded after more than a week
Details of trade are:

Date	Stock	Qty	Buy	Sell	Profit after brokarage
3 Apr	Axisbank	20	1296.53	1311.30	256.84
5 Apr	Axisbank	10	1236	1243.50	56.58
10 Apr	Relinfra	40	325.50	329	120.59
12 Apr	Axisbank	35	1254.89	1258.25	52.34
22 Apr	Axisbank	30	1456.11	1464.11	174.83

Investment in Tax saving Mutual Funds

This week i have invested small amount in tax saving Mutual Fund for tax saving purpose.
Three years back i have invested in Tax saving scheme and locking period of all those investment is complete. I have invested in too many schemes that time with small amount in all investments.
Details of investment in year 2010:

Fund Name	Date	Units Allocated	Price	Amount
Kotak Taxsaver - Dividend (KM100)	21/12/2009	204.29	9.79	2000
Reliance Tax Saver Fund - Dividend (RC182)	07/01/2010	346.789	14.418	5000
SBI Magnum Tax Gain Scheme 93 - Dividend (SB023)	07/01/2010	112.587	44.4100	5000
Birla SunLife Tax Relief 96 - Growth (BM382)	07/01/2010	454.545	11	5000
HSBC Tax Saver Equity Fund - Dividend (HS107)	07/01/2010	217.055	13.8214	3000
Religare Tax Plan - Dividend (LT011)	08/01/2010	156.128	12.81	2000
HSBC Tax Saver Equity Fund - Dividend (HS107)	27/01/2010	156.509	12.7788	2000

Reliance tax saver fund is the best performing fund among the funds which i invested. So this time also I choose it for investing. Instead of investing in too many funds, i decided to invest only in 2 funds.
After doing some study, I decided to invest in Axis Tax saver as second option.

I have invested total Rs. 11000 this year.
Details are as below:

Fund Name	Date	Units Allocated	Price	Amount
Axis Long Term Equity Fund - Growth (AX012)	11/01/2013	266.5120	15.0087	4000
Reliance Tax Saver Fund - Dividend (RC182)	11/01/2013	443.1840	15.7948	7000

Opening PPF (Public Provident Fund) account in SBI

As financial year is coming to an end, tax savings options like PPF, ELSS mutual fund, insurance etc are main topics of interest for Salaried person like me.
Few days back, I went to State bank of India bank (SBI), Chinchwad branch to open PPF account. After enquiring, I came to know that you need SBI Savings account in any Branch for opening PPF account.
As I was not having SBI savings account, I completed all formalities to open savings account that day. I was told that I will get SMS when account opening process is complete (within 2-3 days).
I did not get SMS for more than one week so I went to SBI branch. Account was still not activated. They have activated it in front of me.
I collected Pass Book by depositing amount in my Account.

Next, I collected PPF form and came back Home. Today (9th Jan 2013) I am going to complete PPF account opening procedure.

Updating procedure to open account (now after opening PPF account in SBI). It was very smooth process.
To open PPF (Public Provident Fund) account in State bank of India bank (SBI),
1. You need savings account in any of the SBI branch.
2. Collect PPF account opening Form (It is one page form ) from SBI branch which is having PPF account facility.
3. Documents Required

• 2 Photos (1 on PPF form and 1 on account Passbook)
• Pan Card Xerox (Original also required for verification)
• Address Proof Xerox (Electricity Bill, Passport with Current address etc.) with originals

4. Fill PPF form. On Nominee details page, witness details also need to be filled. (Witness Name, address, signature). Witness can be your family member, friend.
5. Verify PPF form and documents.
6. After verification, PPF account opening procedure starts . (Entering form details in Bank system)
7. Once you get PPF account number, fill PPF slip to deposit money in account.
8. Collect PPF Passbook by showing PPF payment slip to passbook counter.

Share Market: Details of investment made In Dec 2012 : IFCI, Fortis, Reliance Infra

Thought of giving details where i am investing in stock market.
On 7th Dec & 14th Dec 2012 bought few shares. Details as below:

Date	Stock name	Quantity	Rate
7 Dec 2012	IFCI	50	34.5
7 Dec 2012	FORTIS	40	110.5
14 Dec 2012	IFCI	100	33.80
14 Dec 2012	GUJARAT NRE COKE	100	20.10
14 Dec 2012	RELIANCE INFRA	6	519.30

Lets see how much loss/profit i'll get from this.
Earlier thought of giving Investment details on shava28.blogspot.com which is my another blog mainly for Technical things. But better use this blog as it is mainly for Personal things.
So now onwards, I'll track and give details of Stock market investments here.