Is it good to invest in Energy Sector Mutual Fund now?

Question

Hi,

I am 23 yr old from India. Recently, Govt had moved forward for Nuke Deal. For me it seems that govt will be able to prove confidence and this deal will happen soon.

So is this is a good time to invest in energy sector before "No Confidence" in parliament? I have also zeroed to Reliance Diversified Power Sector Mutual Fund.

I am planning for Rs 10000 investment.

Please suggest if this is a good idea?

Answer 1

Dear friend

In January when the markets started to slide there was not much threat to the govt. Therefore, we can conclude that the market is not entirely dependent on the stability of the govt. Yes, there is a good amount of turmoil in the market,  if the govt is unstable.

Whether N-deal or no deal the energy sector needs huge investments - thousands of crores. The markets are sure to recover.

Reliance diversified Power sector  Fund is a very good fund to invest in. Consider investing through the route of SIP (Systematic Investment Plan) and try to avoid timing the market.

good lucj !!

Answer 2

gold is a safer haven

Answer 3

Sumeet,

At very first, appreciated your interest to start investing in the early age. This is a right move. Disciplined investment in good product for long term focus will make you a very successful investor.

Now here is the answer for your question:

Energy sector is fast growing and rising one in India. The starting of energy sector mutual funds are the example for the future expected growth and profitability of this sector.

The energy sector mutual funds are very new and because of that we cannot say or analyze the growth possibility in these short period. Start investing using Systematic Investment Plan instead of at a time 10000 investment and keep investing for long term. timely monitor the portfolio to find out the performance issues and take necessary actions to avoid subscription or hike the amount.

This will give you good result.

Does this make sense to you

Answer 4

hihi

Answer 5

I think if u are looking for energyy sector because of nuke deal then i must advise u stay away from any investment in that sector untill and unless it finalised.......

Politicians are pure rascals and can do anything anytime just because for their intrest......so, untill and unless the deal is not finalised pls dont try 2 read the politicians mind.....Use ur mind as because its ur hard earned money and sit idle with the money in hand .........

But yes, as soon as the results are finalised and u look some good for energy sector then u can go blindly.....otherwise, going this time might cost u ur money......