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Got JNJ last month. Now I’ll chose India Fund IFN over Wipro WIT and Boeing BA

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In September I was undecided between those 4 options: Johnson & Johnson JNJ, India Fund IFN, Wipro WIT or Boeing BA: Graph

Powerful Indian stock markets

I took JNJ because of its good numbers, because it could be a safe heaven in times of markets turmoil and because I was convinced by other investor that it was the right choice. Now I have to make my October investment choice.

I think I will get IFN today. In September, I wrote: “ India Fund because I still think India has great opportunities and this closed end fund is trading at a favourable 10% discount. I called this fund a rip off when is used to trade at 30% premium, but now it is undervalued. Also IFN owns shares of many excellent Indian companies that are not available for Western investors.”

Also, among the two main economies of the future, I noticed that this year China’s stock prices have grown much faster than India’s This graph shows it clearly: one year ago India’s stock-market had outgrown China’s, so it was wise to invest on China. Now China’s stock prices have, have grown much more than India’s. Maybe even too much. So now I think it is wiser to invest on India. And this is what I’ll do buying IFN (which, by the way, is now at 13% discount).

Let the force be with me… and with India 🙂

13 responses to “Got JNJ last month. Now I’ll chose India Fund IFN over Wipro WIT and Boeing BA”

  1. deminvest Avatar
    deminvest

    I just bought 18 IFN shares at $56.50 each, spending a total amount of $1,017.00

    Reply
  2. Nav Avatar
    Nav

    I am looking into buying this on the next dip. I should have bought it on Oct 22nd.
    WHere do you think this will be going? Any mile stones.

    ALso what do u think about FXI

    Reply
  3. deminvest Avatar
    deminvest

    Nav,

    I bought it now because I think the best time to buy it is now. It may never have any dip and also a 13% discount on the NAV is excellent for a fund that a year ago you had to pay a 30% Premium to get.

    I own 8 FXI that are worth $1700. I got them for free thanks to my free stock strategy.
    FXI went up about 200% since I jumped into last year. I think it has gone very very far and I’d be afraid to buy it at such expensive price.

    I think it is time for IFN. I hope that it will reach my target of 40% up in 6 or 7 months, but nobody can know…

    When India was expensive I invested a lot on China, and it did pay off. Now China is expensive and I plan to invest a lot on India. I really hope it will pay off too!

    Reply
  4. Nav Avatar
    Nav

    What ur free stock stratergy?

    I am planning to buy 5 of IFN next week sometime and then add 5 later. THe later 5 will be like a backup just in case it goes down i can add on the dip to cover the loses.

    Reply
  5. deminvest Avatar
    deminvest

    @NAV,

    here is an explanation link.

    For IFN “Free stock strategy” will mean that I’ll sell 13 IFN when their price arrives to $79.1 (40%up) each. By doing soI will:

    1) cash in $1028, a bit more than I spent.

    2) keep the remaining 5 IFN shares, that will be free for me, because I will have got all my money back.

    Regarding your buying in 2 steps, I wonder if you have to pay commissions or use Zecco too.

    Usually, when I decide to invest in a stock, I do so because I believe it will do well. I don’t want to risk that, if I am very right, it starts doing well the next day and I never have a opportunity to buy in the dips. That is why I buy all at once something I like.

    Look at this comment, moiliiliquarry wanted to buy BIDU, when it was around $120, but she waited for a dip. BIDU went up, the dip never arrived and moiliiliquarry had to buy at $168.
    Moiliiliquarry, still made a great deal: BIDU is now at $353, but if he had not waited for the dip, he would have got 40% more shares with the same investment.

    Reply
  6. Nav Avatar
    Nav

    IIF vs IFN

    Any thoughts on IIF?

    Reply
  7. deminvest Avatar
    deminvest

    IIF and IFN are very similar. Right now IFN has 13% discount that is better than IIF’s 6%.
    On 2007 IFN is doing a bit better. in the last 12 months IIF has done a bit better. Over 5 year they had almost identical results:
    http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1193774400000&chddm=492660&cmpto=NYSE:IFN&q=NYSE:IIF

    I prefer IFN because I like discounts…

    Here you can get all the info you need on both funds:
    http://www.cefa.com/FundSelector/FundDetail.fs?ID=8816
    http://www.cefa.com/FundSelector/FundDetail.fs?ID=8775

    Reply
  8. nav Avatar
    nav

    If you dont mind can you explain the discount concept.

    Reply
  9. What are “Discount” and “Premium” for Funds (ETFs and Closed End)? Why do I love the first and hate the second? « Democratic Investments by the people for the people Avatar
    What are “Discount” and “Premium” for Funds (ETFs and Closed End)? Why do I love the first and hate the second? « Democratic Investments by the people for the people

    […] What are “Discount” and “Premium” for Funds (ETFs and Closed End)? Why do I love the first and hate the second? October 30, 2007 Posted by deminvest in etf, investment, investment strategies. trackback @nav, I hope this answers to your comment […]

    Reply
  10. nav Avatar
    nav

    Finally got 10 at 62.77. Thanks for all the info.

    Reply
  11. deminvest Avatar
    deminvest

    Gl nav!

    Reply
  12. Nav Avatar
    Nav

    Sold at $70. Is this the time to buy or is Dow heading to $0

    Reply
  13. deminvest Avatar
    deminvest

    I have no clue Nav, but if you buy a little every month, you can be sure to catch the minimum, whenever it will come.

    BTW, congrats for the gain on IFN! Very few investors could make an actual gain in those difficult months.

    Reply

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