Need expert opinion for MF choseing and selecting a broker farm

Hi friends

I'm new in this type of investment so i need your opinion.I'm planing to start investment in MF.I will go for SIP.And after reading few article i decided to invest in open ended MF for long term(3 yrs target).I want to plan it for an expected return of ~20-25%.

I chose two types of fund
1.Growth
2.Balance

Is it a right choice?

And now i'm confused how to chose a particular MF?As there are lots of funds belong to that category.After hearing from some people and reading some article i understand that HDFC MF and a gold MF would be good.But still i'm not able to chose a particular MF.Please suggest me some MF for investing for 3yrs through SIP or tell me how to chose a good MF.


And for short term and long term direct equity investment i'm planning to open a trading account.I found sharekhan reliable.What you think?

And i heard that sharekhan also give facility to buy MF.so is it a good idea to buy MF through them or directly from bank?

Thanks

For MFs, I will strongly advise to go with fund plans linked to general equaty, i.e., avoid thematic plans linked to a special sector. Also would recommend going with large cap equity funds rather than mid-cap or small-cap. Stick to funds with long term history and avoid start-up/NFO funds.

HDFC Top 200, Franklin India Bluchip, Fidelity Equity, ICICI Prudential Focused Bluechip, SBI Magnum Equity, etc. are good funds.

As far as "growth vs. balanced", my personal preference is to "growth" but there is no hard and fast rule here.

Thank you for your advice and valuable information.
I am thinking to invest one equal portion in growth open ended MF and another portion in gold based MF.
What is the ideal time for SIP? Start, mid or end of the month?

Do you have any information about gold based MF? i followed usually when the equity market is down gold market is up.so it will be a good choice if i chose both type of fund.

Is it possible to buy more unit when the NAV is down which i'm already buying through SIP?

How you buy MF?Is it possible to buy online?I have a account with Axis bank but they said they only deal with HDFC MF.So for other MF i've to go to other MF.

Is broker farm is a solution for that?Do you experienced or heard the service about sharekhan?I read in their site that they deal with MF buy and sell online.

1. There is no ideal time for SIP as the stock market is nothing less than a gambling casino. One cannot predict any period when the market will peak, park or crash. There are certain global queues but that is all. However, if you wish to spread out, you can invest weekly or fortnightly. Most MFs have a minimum quantum of Rs. 500 or Rs. 1000.

2. Even if you are investing via SIP, you can also purchase units in the same fund any time you want.

3. Since SIP is an event based purchase, it should be a standing order of direct debit with the bank. Ensure than bank has sufficient balance. Axis bank is wrong. You will set up an SIP agreement with the MF of your choice and provide your bank account details. The MF will set up the direct debit instructions with the bank. All you have to do is sign the forms.

4. Broker firm (not farm) can do the same thing as stated above. I have heard about Sharekhan and used their services since 1999. You can use them. Check their fees, commission, etc.