Ask our experts – December 2023

Investment queries

I would like to invest Rs. 3000 per month through SIP for a minimum of 10-15 years. This is not a goal-oriented investment and I’m ready to take high risk. Please suggest best mutual fund
schemes in various categories.
Since you are planning to invest for a longer tenure and are willing to take above average risk, you can consider Midcap, Smallcap Funds, or Focused Funds. By far, SIPs are a better option for building equity portfolio over the long term.
Below are our recommended funds in these categories:

I would like to start SIP in mutual funds investing in overseas markets. Is the process same as that of normal mutual fund investments? Which are good funds? Will the dollar-rupee
fluctuation affect the investment?

Maintaining good asset allocation is important for long-term investors. So, you can build your portfolio with some allocation to international funds through SIP as it offers you diversification across geographies and acts as a hedge against rupee depreciation. Given the geopolitical
uncertainties and an expected gradual slowdown in interest rates, growth-oriented business is likely to perform well and are attractive. The investment process is the same as that of normal mutual fund investment.
Some of the funds mostly in ETF/Index which can look for investments are as follows:
ICICI Pru NASDAQ 100 Index Fund(G)
PGIM India Global Equity Opp Fund(G)
Motilal Oswal Nasdaq 100 FOF (G)
DSP US Flexible Equity Fund-(G)
Axis Global Innovation FoF-(G)

What is grey market? Can I purchase shares from the grey market before listing? Are shares of all companies issuing IPO are available in the grey market?

IPO grey market is a kind of an informal market where IPO applications or shares are transacted before they become officially available for trading on the stock exchange. As IPO grey market is unofficial overthe-counter market, it is not regulated. All transactions are done in cash and on personal capacity. SEBI, Stock Exchange, or Brokers are not involved or back these transactions.
Trading in the IPO grey market is risky and is unregulated. If there is a default by either of the counterparties, there is no way to have a recourse.

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