TTK Prestige is one of the few Multibagger stock for past 52 weeks with a six-fold gain.

What triggered the massive rise in the stock price?

TTK Prestige has managed to tap into the purchasing power in rural market and tier-II/III cities.

What next?

I think this stock has lot of steam left. An EPS of 50+ and P/E ratio of around 17. I expect a return of 20% in the next coming one month or so.

Data by MoneyControl.com, Charts by Yahoo Finance

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1. Equity-Linked Savings Schemes or ELSS funds are no longer part of 80C tax savings.

I have never been a fan of Insurance as a mode of investment and has always preferred ELSS funds over insurance which saves me tax and brings me the benefits of equity returns. I am badly hit by this move and so is the ELSS fund houses where they loose their single best USP or Unique Selling Point.

It is not only a hit to the current investors but in the long run this will also restrict the new investors entering into mutual fund market. Many retail investors are attracted to equity market through tax-savings funds. They invest in ELSS funds for the first time and three year lock-in generally ensures good returns. This experience converts many of these investors to investing in equity based mutual funds.

Coming back to 80C tax savings, we are only left with term insurance, Provident Fund (PF), Public Provident Fund (PPF) and the New Pension System (NPS). I think all of the above are crap including NPS which offers some equity (upto 50%) exposure with a lock-in period upto your retirement age.

2. Taxable Dividend

Dividends from mutual funds will be taxable and so now instead of going the dividend way it would be a better strategy now to derive regular income from redemption’s as long as you avoid short-term gains by not redeeming within one year of investing. I think this will make systematic withdrawal plan (SWP) a far more exercised option.

I am not sure why dividend is made taxable but as I read news on the web I get the feeling that it is something to do with ULIP’s but I do not agree on it. I think it is something to do with misuse of dividend. I think misuse is not the right term and “not the right use” will be correct term.

I myself have done lots of things with dividends and one of them is I get Full tax saving without investing complete one lac using dividends and so I am sure there will be many other ways like mine. One of them which I can think of right now is -

Let us say that you invest in a fund 100,000 and you get a dividend of 10,000. Mutual funds announce the dividend date few days in advance. Once you have the dividend you redeem all the amount and the amount will be close to 90,000 and so on books you made a loss of 10k but actually that is not true. I am not sure how this has and was treated but just came to my mind right now.

How this will impact you? Speak your mind out in comments below.

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1. Taxation for Non-ELSS Mutual Funds
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Share your views on the New Direct Tax Code in comments.

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Yes you heard it right. One of India’s largest bank is having such an issue. You may be wondering how?

Call ICICIBank customer care number in your city. To log-in as somebody else you need only 2 things.

1. User’s Account Number
2. Primary User’s Date Of Birth

If you issue a cheque or even do an online fund transfer, the other person knows your account number and so all he need to do is go to your online profile to find your date of birth. My FaceBook profile has my date of birth and I even checked with Orkut and they have it online too.

Now if I issue a cheque to you I risk my complete ICICIBank account. Do you think this is tolerable?

ICICIBank online facilities has always pretended to be much more secure with password grids and what not but this type of lapse is by no means tolerable.

Are you still using an ICICIBank account? If your answer is yes it is the time to think now.

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1. Best Infrastructure Funds
2. Best Tax Saving Funds
3. Best Technology Funds of 2009?
4. Best Rated HDFC Funds
5. Best Midcap Funds

Do let me know in comments below what other best categorization of mutual funds you will love to read and I will be more than happy to compile it for you?

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If we look at the above Nifty chart for last one year we see a clear and definite pattern. Nifty after the gap of 3 months corrects 7-8%. The dips were on

1. Nov 3, 2009
2. Feb 15, 2010
3. May 25, 2010

So now my question is
Note: There is a poll embedded within this post, please visit the site to participate in this post's poll.

I myself do see a correction and so August will be the month when I offload my portfolio and remain cash heavy (close to 50% in cash).

You do not need to agree on my views because when I discussed the same with my friend he totally disagreed and has contrasting views on the above chart. He told me that this time as we are more in a tight range for last 6 months and there is no bad news expected in results season and so the market should break out on the higher side.

Which opinion do you support? Share your thoughts in comments below.

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I don’t think so.

You may ask Why? And even argue that – I do not pay anything for buying mutual funds which means that I am benefiting a lot. May sound true but … let us see if it actually benefiting common man or not.

Normally I do not visit my bank but last week I happen to visit my bank aka HDFCBank and as I entered I saw one big change. I saw that May I help You desk was used to be full of mutual fund forms and now they are all insurance forms. This is something expected. You showcase products that make you profit but then … As expected like every person visiting the branch I was also asked to do some investment. I thought let me see what they offer me and you will be astonished to know that when I talked about mutual funds the sales person told that mutual funds do not perform well these days. I asked about HDFC’s best performing funds (I am in HDFC Bank remember) and they quoted me that these fund performances are of past and it is written on the mutual fund reports that they may not be maintained in future.

Now I wanted to investigate if this is a one of case or is a common practice and I found that it is a common practice especially by banks to do mis-selling.

Now let us say any common man with very little knowledge about mutual funds wants to invest small amount i.e in range of 10,000 to 25,000. He visits his bank. Now bank representative will make sure he does not invest in mutual funds but goes for insurance which according to me is the worst possible investment option.

Do you still think SEBI’s decision to abolish mutual fund entry load is benefiting common man? Share your views in comments below.

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1. DSPBR Midcap Fund – By far the best mid cap for quite sometime now and I plan to move out of Birla Midcap fund to move into this fund. In fact in the middle of this post I placed the order in ICICIDirect.com to move out of the Birla Midcap Fund and would wait for the right time to get into DSPBR Midcap Fund.
2. Fidelity Equity – Fidelity Equity Fund has been a great performer for me and I am planning to add more to this fund when the market corrects. I think large cap funds will not show the same kind of performance as small and midcap funds in the future and so I plan to add very little position to the large cap funds.
3. Canara Robeco Infrastructure Fund – I think with the kind of result BHEL has come up with Infrastructure funds would outperform the market and so adding position in Infrastructure fund would be better option and who other than one of the best Infrastructure fund.
4. Sundaram BNP Paribas Select Small Cap Fund – I have not invested in small cap funds for quite sometime and the reason I did not do that is because I was sure that when market moved out of recession fears large cap funds would perform better than mid and small cap funds but as we are heading towards the 5500 Nifty there may be a period where large cap funds do not perform as good as mid and small cap funds and so this time I have more plans to add more position to the small cap fund.

Have you visited your portfolio to create a new list of funds for future? If no it is the time to do so and if you have some list of funds in mind share them in comments below. We would love to see your list.

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We can clearly see that Sensex and Nifty are in a very broad range for quite some time now especially in whole of 2010.

Now let us look at the chart of Midcap Index over last 1 year.

We can clearly see that there has been lot of activity in the Midcap segment of the market over the same period of time.

So it would be a good idea to have the list of best midcap funds that have performed well in the last one year.

Before I share the list of funds a line of thought about Midcap Funds.

Funds that invest in small to medium size companies are termed as Mid Cap Equity Funds but there is no standard definition for classifying a company as small or medium sized but as a general guidelines which is followed is market capitalization of up to Rs 500 crore are classified as small and between Rs 500 crore and Rs 1,000 crore are classified as medium sized.

Now using the above guidelines each mid cap fund manager invests in a different set of companies and so performance of Mid-Cap funds can vary considerably. So let me list the best performing Midcap Funds for last 1 year.

Small and medium sized companies have higher beta. This actually means that they move more than ever reliable big companies on either side up or down. So instead of getting into those funds right now it may be the right time to keep an eye on performing funds and accumulate them in declines.

Disclosure

I have investment in 2 of the oldest Midcap Fund aka Birla Sun Life Mid Cap and Sundaram BNP Paribas Select Midcap for quite some time now.

Over to you

Share your preferred Midcap Funds in comments below.

Data by ValueResearchOnline, Charts by Yahoo Finance

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So today I would like to ask you which one works for you and what is the main reason for it to work?

If you are Voting for Either there is no harm in it but it actually mean that you should start tracking your investment more closely from today.

My Answer is Mutual Funds and the main reason why mutual funds work for me is because I am at times too busy on my Other Websites and blogs and so could not work or track on my investments.

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