Sunday, April 27, 2008

Make Money in Real Estate

promising, to say the least. Over the past few years, a number of real estate companies were listed and foreign money poured into real estate funds. India's largest IPO - DLF in 2007 - was from this sector. The listing of DLF even benefited existing players like Ansal Properties and Unitech which witnessed a sharp rise in their stock prices. A new index was developed to track the performance of the sector. And as the Sensex soared, the real estate sector too delivered impressively.

BSE Realty, the index for the real estate sector in India, witnessed a sharp rise, gaining nearly 84% in just a span of six months starting from July 2007. The index reached an all time high of 13,647 on January 14, 2008. But when the Sensex crashed and lost nearly 20% (between January 21, 2008 and April 22 2008), BSE Realty lost nearly 41%. Despite this, investors in the ING Global Real Estate Fund were far from sorry. The fund came out with flying colours and stole the show. It outperformed the BSE Realty Index by a significant margin. The fund not only survived the jolt and took the crash in its stride, but delivered a return of 8% over the same time period.

If you had invested Rs 10,000 separately in the Sensex, BSE Realty and the ING Global Real Estate Fund on January 10, 2008, your investment would be worth Rs 7,900, Rs 5,500 and Rs 10,800 respectively (as on April 22, 2008).

The fund offered a return of around 11% for the one-month period ended April 22, 2008.

Simultaneously, ICICI Pru Real Estate Fund delivered a negative return of 1% over the same period. Of course, a blanket comparison is unfair since the latter is a domestically invested fund while ING Global Real Estate, a globally invested fund, is primarily a feeder fund to foreign equity fund ING Real Estate Securities.

Lesson to be learnt: Its not just asset diversification that matters. Geographical diversification too helps in enhancing the overall portfolio returns.

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Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
  • Biral Mid cap Fund (Mid cap Fund)
  • Fidility Special Situation Fund (Stock Picker)
  • DSP Gold Fund (Equity oriented Gold Sector Fund)