Is it a stupid thing I did by asking my son to invest in HDFC ELSS in 07, which he eventually did?

Question

I ask it, for, I find its NAV is reducing slowly but steadily since 07. Unfortunately it has a locking period of THREE l o n g years

Answer 1

Em caso de urgencia ligue 190 ou 193

Os amigos certos nas horas incertas!!!

Answer 2

Probably. Investing in stocks like this is VERY risky. Did you discuss his risk tolerance, financial goals and asset allocation with him?

Regarding HDFC, the 10 largest customers have loans totaling 80% of the bank's equity. Did you consider that any adverse circumstances that cause even one of these customers to fail will severely affect the bank's financial health?

Answer 3

but, then what is your question now. what has been done cant be undone.please try to understand that your son has not done anything wrong, HDFC elss IS one of the best performing ELSS mutual fund. The value is going down every day because the stock market in India is going down every day. it is bound to go still lower for a month or so, and then may start recovering. once the stock market normalises the nav of MFs will also rise. I also have money in HDFC elss, six months ago i was sitting on a 54 % increase ( in one year ) and now it is down by about 5 %, i.e. app 60 percent down from the high I have seen. dont blame your son, but blame the stock market

Answer 4

no you did a real wise thing, its just a matter of time, and its a good thing that it has a locking of 3 years, do yourself a favor, stop checking it everyday and torturing yourself, after the end of 3 years, you will be happy man running all the way to bank

p.s- if you have more money its the best time to invest, invest in same elss or find some other.

Answer 5

Perhaps you invested in HDFC Taxsaver. Check out the fund snapshot at http://www.valueresearchonline.com/funds...

You have some reason to be worried. Read the fund analysis here at

http://www.valueresearchonline.com/funds...

Its been one of the best funds to invest in for a very long time, save the recent dip in fortunes over the last year. So you cant be blamed, really. Perhaps the fund manager change couldnt have come at a worse time! You need to be watchful for sure, but there's not much that you can do before the 3 year lock-in expires. However, I would say staying invested over 3 years will surely see positive returns -be sure of that , only perhaps it may take a little longer for the fund to catch up with the best in the lot like SBI Magnum Taxsaver. The positive thing to note is that the long termn track record of HDFC TAxsaver is the best -no fund comes near that -see returns since launch!

Answer 6

Do not worry. This is a short term happening due to market faring badly. Over the three year period you should get returns of minimum 15% p.a.

Answer 7

Most of the equity based funds are returning a negative return now because of the prevailing market conditions.

With ELSS you cannot exit as it has got a lockin period.

Answer 8

Your son is invested for 3 years & I am confident that he will get 15-20% annual return in this period.

Do not worry because of these ups & downs.