Are you ready with your shopping list???

Still not let me share with you some view about how you can add funds to your portfolio…

First of all you have to decide whether you want to be in large cap, mid cap or small cap. If you want to be with giant and somewhat risk averse in equity than large cap will be a best option for you. At the same time if you want to take high risk in equity market and looking for super normal returns over a period of time with some multi bagger scripts than Small cap or mid cap will be a good option for you.

Let me tell you one more thing that in a present market condition fund manager and their investment style will play a big role in your portfolio make over. Nowadays you will found many funds setting on huge cash level, near about 20% to 35% or even more, irrespective of any market cap fund that can affect your portfolio returns.

If a fund you have invested with a view to get super normal returns in small cap or mid cap fund and the same fund is setting on high level of cash than you probably dissatisfy with the performance of the fund.

So, as per your risk appetite, time horizon and level of aggressiveness to chase returns in equity market you should go for a scheme where your investment objective correlates the fund manager present and future investment pattern.

Mind well if you are of view to go with a very aggressive and fully invested fund than at the time of market raising you will gain a lot but at the time of market fall your fund will also fall with the same magnitude if the fund is fully invested in to equity and have very aggressive stock picks in his portfolio (high beta stocks).

Remember every coin has two sides.

Happy investing.

Jhunjhunwala, others see Magnificent Monday post UPA win

The nation has given its verdict: the Congress-led United Progressive Alliance (UPA) comes back to power without the baggage of the Left — just what the doctor ordered for the markets.
In an exclusive discussion on CNBC-TV18, leading investor and trader Rakesh Jhunjhunwala of Rare Enterprises said that the election results signalled the coming to end of divisive politics. “The victory is very important for what will happen ahead given the economic circumstances prevailing in the world,” he said, adding that he sees the country going back to 8–10% growth on the back of a stable government. “I expect a lot of capital inflow into to India,” the ace investor said, adding that the government was likely to be aggressive with reforms. “The market would prefer to see a pro-reforms finance minister.”
Samir Arora of Helios Cap said that he saw a big rally ahead in the markets. “On Monday, we could open one circuit — a thousand points on the Sensex — up,” he predicted. Arora added that Monday’s possible rally would be followed up with a long durable rally. For the post of finance minister, Arora said Montek Singh Ahluwalia, the current Deputy Chairman of the Planning Commission, would be an ideal candidate.
Manish Chokhani of Enam Securities said that the verdict had come at a good time with the continuation of the rally that had already happened recently. “It may now happen that people were earlier working with the 8,000-12,000 band. Then it came up to 10,000-14,000. Now the band could range between 12,000 and 16,000,” he said. Chokhani added that he expected insurance reforms ahead and that there may be huge inflows in the banking space. “If liquidity returns, engineering, capital goods and realty stocks will benefit significantly,” he said.

Source: http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=397898&special=mkt_topnews

Infra, banking, realty, telcom will outperform: Experts

In the stock markets, there is a smile across the board because the verdict has been just what the markets wanted. This, experts say, in the near term will almost certainly drive the markets by 10-20% over the next one week.
CNBC-TV18 spoke to a market experts on which stocks and sectors might outperform and which ones would remain underweight. The panel included Manish Chokhani of Enam Securities, Samir Arora of Helios Capital and trader and investor, Rakesh Jhunjhunwala.

What's ahead for infrastructure sector?
Chokhani and Arora opined that the banking, infrastructure, telecommunication and real estate sectors looked good.
Chokhani said, “The Indian market will get its next Sunil Mittal from the infrastructure space. Whether it will be a GMR or a GVK or even Reliance Infrastructure, but that’s the sweet spot for the next three to four years for India at least”.
Arora too feels that the infrastructure sector will outperform. Jhunjhunwala, however, refused to buy the argument. He said that though the real estate sector ‘will not drown now’, the stocks were not very significant in the current valuations. “I don’t find them attractive,” he said.
According to Jhunjhunwala, the retail and the commercial (infrastructure) space would not revive easily. “(In) residential, by cutting prices one will have a very good market. However for retail, even cutting rent will not help much. Commercial space also is facing a lot of over-supply.”

Will retail be the next big thing?
According to Jhunjhunwala, the next Sunil Mittal would emerge from organised retail. “The sector has got the biggest ability to grow. Today, 5-8% of retailing is organised. India’s retailing market grows by 10-12% a year. If this 5-8% is to go to 20-25%, one can imagine what kind of a market one can expect in the next five to seven years.”
Arora, however disagreed saying, “There is no billionaire who is going to come up from organised retailing. It’ll be in infrastructure.”

Should you bank on banking and insurance?
Positive on the banking sector, Chokhani said, “The banking index is very heavy with PSU banks, so the sector is going to probably just take-off.” Next, he said, “You will expect insurance reforms to happen because that was the most resisted bill by the Left. So that’s very likely to happen. Also, if money has to come into India, if you just go down the sectors you cannot put that much more into oil and gas. You’re very unlikely to go into technology. What's the most under owned bet for the foreigners? Most FII limits are open in the banking sector. I think the biggest flow is going to be in the banking space,” he added.

What sectors will underperform?
Chokhani said, in the context of a rising rupee and more flows coming in, it is unlikely that one gets significant performance from the technology (IT), pharma and fast-moving consumer goods (FMCG) sectors.
Commenting on the performance of the oil sector in these times, Jhunjhunwala advised investors to keep away from oil companies as long as they (the Government) didn’t de-control it. However, he said, “Once they de-control it, there is going to be big money. I would give it a 30-40% chance that it would be de-controlled.”

Source: http://www.moneycontrol.com/india/news/market-outlook/4-sectors-that-will-benefitelection-3909-verdict/397901