What you should do with your money now..
Well, you must have seen the markets and like all other Indians thought of the market reaching its bottom sooner than later at some point. As far as the Indian market goes, the worst fall may be over but there is plenty more to come.
However, Fixed Maturiy Plans and simpler money and even longer term fixed income funds are really going to boom in the next couple of months as yields steen down and the freed up SLR and CRR money does a few rounds. Yields are going to come to a saner point and then some , even though this rally is at the best temporary.
As of date, Gilt funds have already returned a positive 3-5% in one month, long term floaters upto 1%. Short term floaters and Money market funds have returned 1% and medium term income and bond funds have returned 2-4% in this 1 month till Nov 20. They all remain good investments. Fo fund selection, one can also refer to http://www.valueresearchonline.com
Also, it may be a good time to invest in some indices and keep your porfolio shored up with a Gold ETF or Gold in any other form. With elections round the corner, at least Christmas will be rosier than this Diwali was. Equity – if you are very sure, maybe 10% of your money in some really sound scrips. Some of the special situation funds are looking okay as is Reliance Regular Savings Equity Funds.
Banking funds are already down 10-20% in the last 1 month while even the Top 10 diversified funds have lost 5-10% and withdrawals continue to torment the fund managers plans. Withdrawals in October exceed Rs 1 Lakh Crores.
If you want specifics contact me and I will always be there to help you with a portfolio specific to your needs.