The ONGC follow-on offer (FPO) is expected soon. Is it advisable to invest in it? Or, should one wait for the fresh shares to be listed on the exchanges?
The FPO has been deferred. Otherwise, it does make sense to invest in such public sector FPO, since the government usually provides retail investors, applying for shares up to Rs 2 lakh, a five per cent discount on the issue price on allotment. More, the issue itself is normally priced below the market, making it attractive for investors.
I have a surplus of Rs 50,000 and don't need it for two years. I wish to invest it. I was considering international funds, as I don't hold these. Would it be a good option in the current market?
One could look at the current global economic uncertainty as both a situation to stay away from or as a long-term investment opportunity. If you decide to invest in such funds, please do your research carefully in choosing which fund(s) to invest.
I am 36 and a non-resident Indian. I wish to start investing in Indian equities and am considering the portfolio management service (PMS). However, I wish to invest partly through the PMS and the rest directly, to split risk. Is it possible? Or, should I choose two separate PMS providers?
Yes, it is possible to invest in Indian equities, both in PMS as well as directly. The mode you wish to invest through will depend on whether you have the time and expertise to track stocks and take investment decisions on your own or need a professional portfolio manager to do the same.
I invested Rs 1 lakh in infrastructure funds two years ago. Their returns have not been good. I have a horizon of six years. Should I redeem my investments? Do I have any other option? What is the outlook for the sector?
The infrastructure sector has been bogged by various problems — rising interest costs, land acquisition issues, project delays. Since the stocks have underperformed in an already weak market, you could stay put. It would not make sense to book heavy losses, since you have a long horizon. More, the Indian economy would need to expand and develop its infrastructure facilities. Therefore, this sector could possibly see better days ahead, once the present negatives are sorted.
The writer is director, Touchstone Wealth. The views expressed are his own. Send your queries to yourmoney@bsmail.in
