what are mutual funds and 31 tips for choosing top best performing mutual funds for investment

what are mutual funds and 31 tips for choosing top best performing mutual funds for investment:

if you are looking for some tips for choosing best performing mutual funds, so that you can invest your money at right mutual fund that will give you high returns. then you are at right place. here we are going to discuss about top 31 tips for choosing best performing mutual funds. apart from this, we we also cover these 6 point in our discussion.

 

In this article, we will discuss about 6 following point.

  1. What are mutual funds?
  2. How to choose best performing mutual funds for investment.
  3. Which are top 10 best performing mutual funds for investment in India?
  4. What are the main advantages and disadvantages of mutual funds?
  5. Top 31 tips for choosing top best performing mutual funds for India investors.
  6. How to calculate net asset value of mutual fund.

 

 

 

 

What are mutual funds?

Mutual funds are a collective pool of investment in which investments collects from various investors and creates a pool of investments. Here pool of investments means a fund manager who manages this fund invest in different type of stocks, bonds, debentures, government securities etc. so, it’s a investment portfolio which must match the investment objectives stated in the mutual fund prospectus.

 

 

tips for choosing top best performing mutual funds for indian investors

 

 

If you are looking for mutual funds basics knowledge, then you are ate right place. Here you will get basics knowledge about mutual funds. Mutual Funds are the best way to earn your wealth if you did not have I time for research or did not have enough money. You can choose the systematic investment route to

invest in mutual fund and your fund grows systematically. In this, each investor owns a portion of holding of the funds and proportionally participates in the gain or loss of the fund.

 

also read:

gst full name detail

india top 10 best card in india for salaried person

forex trading in india 

 

 

 

What is switching in Mutual Fund?

Switching is an option through which on can transfer their investments from one scheme to another, this transfer is called STP (Systematic Transfer Plan). Suppose if you want to switch your funds from equity to debt at the highest peak of the market you can do so by just putting the request.

 

 

 

BENEFITS OF INVESTING IN MUTUAL FUNDS:

If you have decided to invest in mutual fund, then you get so many benefits. Some of them are as follows:

  • Small Investments: There is no need of big funds required to invest in mutual funds. With small amount of money you can invest in mutual funds and build your wealth. Also you can take the benefit of diversity of investments. See below the power of small investments in mutual fund.

 

  • Professional Management: All the mutual fund investments are managed by professionals who have considerable expertise, experience and resources. They know the interpretation of economic events and its impact on the investments. So, that they know when to invest and when to exit.

 

  • Diversification of Risk: Since investments does not hold in single fund or single sector. Its spreads across various sectors or industries. By doing this the investment manager spreading the risk which provides them enough space for analysis.

 

 

  • Transparency: Mutual fund companies always act in a transparent manner; they regularly publish their Nest Asset Value with the help of which you can track your portfolio Value. You can also check your investment value on your daily basis.

 

  • Choice of Funds: You can choose wide variety of funds across the mutual funds schemes according to their investment objective. You can also switch from one funds to another fund.

 

 

  • Regulations: All the mutual funds are registered with SEBI and they will follow strictly all the compliance rules laid down by the SEBI.

 

What are mutual funds

 

 

 

 

How to choose best performing mutual funds for investment :

Before investing in mutual funds you must know the pros and cons of investing in mutual funds, in this article we are trying to give you some tips which will help you in taking the decision of investing in mutual funds. After having this tips in mind, you will know  how to choose a best mutual fund.

 

 

 

 

How to choose a best performing mutual fund to invest?

There are more than 5,500 mutual fund schemes available for investment in equity and debt market. Out of which more than 300 included in the equity category alone. Now, with these lots of avenues investor has to choose among from them. Below are the few points which every investor needs to keep in mind before selecting any mutual fund.

 

If you want to create your wealth along witHow to choose best performing mutual funds for investmenth your current job or business then investing in mutual fund is the best way through which you can achieve your financial freedom. But, the biggest problem arose in mind of investor while deciding in which fund to invest, choosing right mutual fund is the daunting task. So, to solve this problem I mention few points to remember while choosing mutual fund.

1.Check the history: Before choosing any mutual fund, you must check the history of mutual fund. You can go to that particular mutual fund website and check the performance of 1,3 and 5 year performance. If the average performance of fund is greater than 15% then it is a qualifying parameter for investment.

 

 

2. Crisil Rating: Crisil is a rating company which check the credibility of the company and rate that company accordingly. If rating is good then you can consider that particular mutual fund.

 

3. Financial Ratios: Always check the financial ratios of mutual fund like Sharpe Ratio, Beta, standard deviation, these indicates the risk, volatility and expected performance of the fund.

 

 

4. Fund Manager: Check the background of the fund manager, his expertise, experience, previous performance of the funds managed by him.

 

5. Objective of Investment: You must first analyze what is your investment objective, what is the purpose of your investment like want to invest for higher studies of their son, finances required for their daughter marriage etc. Invest in equity fund for long-term objective and invest in debt funds for short-term goal.

 

6. know the fund house: Choose the fund house whose investment objective must align with your objective. Know their fund manager, check his background, check the scheme introduce by the fund house because a good fund manager is the one who can take care of all your investment and take you near your goals.

 

 

7. performance of Funds: Check the performance of the fund based on the risk ratio analysis like Sharpe ratio, beta, standard deviation and alpha. A positive alpha is desirable and shows performance that is better than the benchmark.

 

 

8. Expense Ratio and AUM: Before choose any mutual fund you must check the expense ratio of the fund and also do peer analysis of the expense ratio, check whether the same theme mutual fund of other companies charging the same expense ratio or not. Expense ratio must be low as it will give large impact on the performance of the fund. Also choose the fund whose asset under management must be low.

 

If all the above parameters match the criteria mention above then you will invest in that particular mutual fund.

 

 

 

top 10 best performing mutual funds for investment in india:

 

 

 

 

 

Which are top 10 best performing mutual funds for investment in india?

 

1.SBI Magnum Multicap Fund: The scheme would invest in equities and equity related instruments of companies spanning the entire market capitalization spectrum. The fund will invest 50-90 per cent in large cap stocks, 10-40 percent in id-cap and 10 per cent in small cap stocks.

 

 

 

 

 

 

2. ICICI Pru Focused Bluechip Equity Fund: The funds investment strategy to invest in 20 large cap companies from the top 200 stocks listed on the NSE on the basis of market capitalisation.

 

 

 

 

 

 

 3.UTI Opportunities Fund: The scheme seeks to generate capital appreciation by investing in equity shares and equity related instruments. The focus of the scheme is to capitalize on opportunities arising in the market by responding to the dynamically changing Indian economy by moving its investments amongst different sectors as prevailing trends change.

 

 

 

 

 

4. Franklin India Prima Plus: The scheme aims to provide growth of capital and regular dividend from a portfolio of equity, debt and money market instruments and focusing on wealth creating companies across all sectors and market cap ranges.

 

 

 

 

 

5. ICICI Pru Dynamic Fund: The scheme aims to invest primarily in equities and for defensive consideration in fixed income securities including money market instruments with the aim of generating capital appreciation. The actual percentage of investments will depend on the economic conditions.

 

 

 

 6. HDFC Capital Builder Fund: The fund seeks to invest in companies that are priced below their fair value thereby generating capital appreciation in the long term. The scheme will retain the flexibility to invest in the entire range of debt instruments and money market instruments.

 

 

 

 

 

 

7. UTI Midcap Fund: An open ended equity fund with the objective to provide ‘Capital Appreciation’ by investing primarily in midcap stocks.

 

 

 

 

 8. HDFC Mid Cap Opportunites Fund: The aim of the fund is to generate long-term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of mid and small cap companies.

 

 

 

 

9. Franklin India Smaller Companies Fund: The scheme aims to provide long term capital appreciation by investing in mid and small cap companies. Normally, it would invest at least 75 per cent of its assets in smaller companies.

 

 

 

 

 

10. HDFC Balanced Fund: The scheme seeks to generate capital appreciation with current income from a combined portfolio of equity and debt instruments. The scheme would take 60% exposure to equity instruments while the balance would be allocated to debt instruments.

 

 

 

 

 

 

Top 31 investment tips for choosing best mutual funds for Indian investors:

 

 

 

 

  • Clear define your goals; what is your motive behind investing in mutual funds, of course, no doubt it is money but here investing in mutual funds means to meet your short-term and long-term financial goals.

 

  • Second you must define your investment time horizon. For how much time you want to invest and in return what you are expecting from that investment.

 

 

  • Before investing in mutual funds you must aware that do not put all your egg in one basket. You must need to adopt the diversification strategy.

 

 

 

  • Define the asset allocation strategy, diversification is the key, not only invest in mutual funds but diversify your investments among mutual funds, bonds, gold, stocks etc.

 

 

 

  • Every mutual fund offers Key Information Memorandum (KIM) or offer document, you must read this before investing in mutual funds. It contains all the relevant information regarding the mutual fund, investment theme, fund manager etc.

 

 

 

  • There are many tools available online through which you can educate yourself on mutual funds.

 

 

 

  • If you want to properly research a fund then you must know how to read the annual mutual fund report.

 

 

  • You must compare the expenses ratio of different fund. A small difference in the expense ratio creates a lot of difference in the performance of the fund.

 

 

  • Check the background of fund manager of a particular mutual fund in which you want to invest. Check his past performance, education etc.

 

 

  • While checking the performance of the funds you must check the 5 year performance it will give the clear picture of the performance.

 

 

How to choose top best performing mutual fund for investment- tips number 20 to 30-

  • Learn about the important terminologies of the mutual fund like Net Asset Value, Units, stamping, exit load.

 

 

  • Check the Asset under management before investing, large AUM put lots of pressure on the fund manager and it will indirectly affect the performance of the fund.

 

 

  • There are many different types of mutual funds in India like Equity Fund, Debt Fund and Balanced Fund.

 

 

  • In Equity Fund, major portion of the fund are invested in equity assets.

 

  • In Equity fund there are two type of option available, growth fund and dividend fund.

 

 

  • In growth option your investment grows with the increase in the value of the equity asset calls.

 

  • In dividend option profit are distributed in terms of dividend as declared by the mutual fund time to time.

 

 

  • In Debt fund major portion of your investment goes into the government securities like bonds, debentures, certificate of deposit, commercial papers and T-Bills.

 

  • In balanced fund, fund is distributed 50:50 in both equity and debt funds so that you can take the advantage of diversification.

 

 

  • There are more than 40 asset management companies available in India and these companies launches many mutual fund schemes every year.

 

how to invest in mutual funds – choose top best performing mutual funds tips number 21 to 30:

 

  • Investing in New Fund Offer is also the best option of investment in mutual fund.

 

 

  • It is similar to the Initial Public offer which offers subscription of mutual fund units at initial level.

 

  • Always choose minimum investment period of 10 years for investing in mutual funds. As you can compare the 10 years performance of any top line mutual fund you can find growth of 15%-20% every year.

 

 

  • Always choose consistent performance giver fund, compare the fund performance of different interval like 3, 5 and 10 years and see the consistency in their performance.

 

  • Select the mutual fund which beaten the benchmark indices and give consistent performance during bull and bear markets.

 

 

  • Always check the risk-return tradeoff, means that fund which above average return by the risk free return given by the government backed securities.

 

  • If you are looking for investments regarding the tax saving purpose then go for ELSS funds (Equity Linked Saving Scheme) instead of insurance products.

 

 

  • You can invest directly into the mutual fund or you can take the help of any registered financial advisor. We always recommend to take the help of registered mutual fund advisor because they analyze you financial goals and suggest the funds accordingly.

 

 

  • Always use SIP method to invest in mutual fund, SIPs work on Rupee cost averaging principle and helps the investor to average out the price.

 

 

 

  • Do not lure by the high price NAV. NAV is simply a outcome of asset under management and no. of outstanding units. So, a scheme having a higher NAV does not necessarily mean that scheme is good.

 

 

 

 

 

 

 

DIFFERENT TYPES OF MUTUAL FUNDS:

Mutual Fund industry grows every year as people are becoming more aware of making money by investing in mutual funds. Currently as per the survey data only 2% of total Indian population is invested in equity market. So, there is lot of vacuum in this industry, people are not aware of the power of compounding which greatly works in mutual fund industry. Well for the reader we will tell you the different types of mutual funds exist in India.

 

 

 

1. open ended mutual fund: Most comprehensible and most common type of mutual fund available for investment is an open ended fund. In this investor can make entry and take exit at any point of time. It does not have a fixed maturity date. You can invest and redeem you mutual fund units at any given point of time.

 

 

2.money Market funds/Liquid mutual funds: This type of funds are very convenient for parking your cash reserve when it is available for short-term or when it is not needed for 1 or 2 months period. Since money market fund is an open ended fund so you can exit at any point of time. Money market mutual funds offer liquidity and safety as it invests in short term government deposits, commercial papers etc.

 

 

 

3. Debt mutual Fund: This type of fund are most suitable for risk averse investors, who don’t want to take maximum risk for maximum gain but instead want to settle with decent return with low risk avenue. Debt fund involves a large investment pool, in which core investment includes in government securities, short-term and long-term bonds, money market instruments etc. Expense ratio is also lower than the equity fund which increases the return of the fund. It is very ideal for people who are looking for steady income.

 

4. Equity/Growth mutual Fund: In this type of funds, investment is mainly in good quality stocks. Means those companies which are above average in its earning, capital expansion, low debt, and good cash reserves. These types of companies are good candidates for investment. If you want to invest in this type of funds then you must have high tolerance of risk and patience to wait for at least 10 year. As we talk about the Indian market, it is said that India is a developing economy and thee is lot of potential in the stocks market of India.

 

 

5. Index mutual Fund: Index fund is the mirror of market Index like BSE Sensex and CNX Nifty. Portfolio of Index fund is constructed or tracks the components of a market Index. It is a passive form of investing and cover lower operating expenses and lower portfolio turnover.

 

 

 

6. Sectoral mutual Funds: Sector specific funds are those type of mutual funds in which investment made on any specific sector like IT, Pharma, Infrastructure etc. Since the investment offers only one kind of investment they consider risky because diversification element is not present here.

 

 

 

7. ELSS mutual Funds: It is a tax saving fund, it is a diversified fund having exposure in equities. ELSS funds stands for Equity Linked Saving Scheme which means return are to be expected from the equity market. In ELSS funds there is a minimum lock in period of 3 years; means if you start doing investment now then your investment get locked for 3 years from the respective investment date. ELSS funds include both dividend and growth option. In growth option you will get the lump sum amount after 3 years and in dividend option you will get dividend if declared by the company time to time even in lock in period you can claim your dividend. Regarding tax element you can claim up to RS.1 Lakh from your total gross income in a financial year under sec 80c of the Income Tax Act.

If you compared the ELSS funds from the traditional investment schemes available in India like PPF, NSC, Fixed deposit then you will find ELSS funds are much better with these funds in terms of return. In PPF there is a lock in period of 15 years while in ELSS funds there is only lock in period of 3 years and in NSC there is a lock in period of 6 years and in fixed deposit for tax eligibility you must have to take the fixed deposit for the period of 5 years.

 

 

8. Balanced mutual Fund: A balanced fund combines a component of both Debt and Equity, these funds are suitable for those who are continuously looking for mixture of safety, income and capital appreciation. Balanced find is also called hybrid funds which provide investor in single investment both the option of growth and income objectives. In times of downturns in the market these types of fund suffered less losses in comparison to pure equity based funds.

 

 

9. Close Ended mutual Funds: In close ended funds, the funds are launched for limited time period and those investor who want to invest in these type of funds can only invest during the launching period. Close ended fund are known as NEW FUND OFFER. After this period offer you can bought and sold your units at stock exchange.

 

 

10. Capital Protection mutual fund: Till know people of India is only aware of bank fixed deposit in terms of safety but in the mutual fund industry there is one more option called Capital Protection Fund which gives safety of principal by investing in Treasury bills, bonds and certificate of deposits, remaining amount invested in equities. For example, If you want to invest Rs.100 in capital protection fund which give 10 per cent yield. Now, how capital protection fund invest this amount. They invest Rs. 90.909 in the above mentioned securities so that it will become Rs.100 after a year and remaining Rs. 9.091 will be invested in equity and equity related instruments. Investors should only invest in those capital protection funds which has a rating of AAA.

 

 

11. Fixed Maturity mutual Plans: FMPs are close ended debt mutual Funds. As the name suggests it invest in those securities which have fixed maturity period in aligned with investment objective of FMPs. The offered tenure by the FMPs are 30 days, 180 days, 370 days, and 395 days. So, one year FMP will invest in those debt papers which mature in 1 year. Investor cannot redeem their units before the locking period is over nor fund manager can sell any part of the portfolio during this tenure thus locking the yield of the portfolio.

 

 

 

12. Interval mutual Funds: This type of fund combines the feature of both open ended and close ended scheme, which enables investor for sale and redemption of units during pre-determined intervals.

 

Mutual funds schemes are different from portfolio management schemes in a way that mutual fund schemes collect pool of money from different investor and invest in the same fund along with other investor. So, the profit and loss made during the investment period would be same for all the investors. However, if you choose portfolio management scheme then the profit and loss occur is based on your investment amount and would be different with other investors, also fees charges in the portfolio management scheme is also different that of mutual fund schemes.

Mutual Funds investment is also different from bank fixed deposits as bank will liable to pay you only fixed rate of interest for a fixed period, also you need to bear the tax on the gain from bank interest Whereas in mutual funds there are several schemes in which you will get the tax saving component plus you will get better return in comparison with bank fixed deposits.

 

 

 

 

WHY MUTUAL FUNDS ARE SAFE OPTIONS TO INVEST?

When we talk about investments there are hell lots of investments option which are available in the market which confuses the crowd where to invest. As per the data, 85% of Indian saves 20% to 30% of their income; we Indians are very good in saving but very bad when the point comes for investment. We invest in those products which we do not know properly, their pros and cons. We just invest on the advice of so called agents which has a sole purpose of closing the sale. They don’t ask your investment goals, future planning, money required to achieve your dreams.

It is tradition in India that 90% people of India invest in Bank fixed deposit, postal saving schemes, Kisan vikas patra and insurance products. There is a lack of investor education and awareness.

Investors always look for safe investment with better returns. By looking at the Indian economic scenario and the recent development in India we suggest mutual fund is the best option where you can invest and get both the element of safety and better return from the same product. Most of the people think investment in equity is a risky proposition but that’s not true systematic investment plan is a way by which you can minimize your risk. It means that you are doing averaging every month at every level in the market which gives enough space for your investment to grow.

Mutual funds also offer 100% equity, 100% debt and combination of both i.e. called balanced funds. You can also check the past performance of mutual fund’s by this you can the quality of the funds before to invest. If you want safer return then you will opt for debt funds, historically debt schemes gives 12% average return pa over the last 5 year. In the long run Equity funds always give superior return than any other calls and also give beat inflation return with a big margin.

 

 

 

 

advantages and disadvantages of mutual funds:

 

after knowing about mutual fund basic terms, now it is to discuss about advantages and disadvantages of mutual funds.

 

Advantages of Mutual Fund Investment:

1.Now days, there are many chit funds types of schemes which is a totally fraud schemes but did not worry about mutual fund schemes as these schemes are regulated y SEBI and the distributor also necessary pass the exams before sell any product of mutual fund schemes.

 

 

 

 

 

2.Before launching any scheme by any mutual fund house they must upload the Key Information Memorandum (KIM) which contains all the information related to the mutual fund schemes, objective of the company etc.

 

 

 

3.If you want to beat inflation then only mutual fund is the way by which you can beat inflation without spending lot of time and energy. Suppose if you have Rs. 100 in your bank account, now this Rs.100 will only buy 10 bottles of cold drink. Now, after one year bank will give you Rs.105 and if inflation rises by 10% then Rs.105 will not enough to buy 10 bottles of cold drink.

 

4. By investing in mutual funds you will get the benefit of diversification across all sectors. Diversifications reduce the risk of investment and give better results in the longer run.

 

 

5. Your funds are managed by expert professionals and a dedicated research team who can track the market extensively and find out the ways so that they can give good returns to the investors.

 

 

 

6. You can start with little investment of Rs. 1000 per month. Systematic investment plan is the best investment option available to invest for long run.

 

 

7.If you understand the interest rate cycle then investing in debt mutual is the best option for you. If interest rates decline the debt market mutual fund give good return and if interest rate rises then it will give less return.

 

 

8. Main advantage of investing in mutual fund is that it provides low cost investment avenues as compared to investment directly in capital markets. As young generation find it difficult to invest directly in stock market. So, investing through mutual fund is the best way of investments.

 

 

Disadvantages of Mutual Fund Investment:

1. too many choice.

2. some mutual fund are too big for investing, i mean have to pay more money in comparing other investment factor.

 

3.if you invest in mutual fund, then you have no control over in investment of fund amount. you losses the control over the decision whether you should buy or sell.

 

4. fees and expenses : there are so many expenses while you do in investing in mutual fund. you many have to pay sale commission and redemption fees etc.

 

 

 

 

 

Why Diversification of funds is so important?

Diversification of funds is very important as it minimizes the risk of your portfolio. As the old proverb saying “Don’t put all your eggs in one basket” is very true. This is due to the market volatility and risk associated to it. If one investment does not work out it’s not necessary that other investments also not working out.  Here diversification roles come into play which maintain your portfolio and give you stable returns.

 

 

WHAT IS AN ASSET MANAGEMENT COMPANIES ?

An AMC company is a company that manages all the mutual fund schemes launched by these AMC’s. If you want to invest in any mutual fund then you have to go to AMC fill the form and submit to any branch office of the AMC. A single AMC can run many mutual fund schemes, similarly, if you want to redeem your funds even then you need to visit the AMC office and submit the withdrawal form.

 

What is net asset value for mutual funds?

Net asset Value is the value of one unit of the fund of any scheme at any given point of time on any business day. It represents a fund’s per share market value. This is the price at which investor buys from the fund and sell to the fund. It is calculated as dividing the total value of all the cash and securities in a fund’s portfolio minus any liabilities by the number of shares outstanding.

For example, if mutual fund has an asset of 50 cr. And liabilities of 10 cr. It would have a NAV of 40 cr.

Now, by dividing the NAV of a fund by the number of shares outstanding you are left with the price per unit. In our example, if the fund had 4 cr. Shares outstanding the price would be equal to Rs.10

Redemption/Repurchase Price: Redemption price is the price at which investor sells back the units to the funds. The price is related to the funds current NAV value, if you withdraw the fund then they will charge the exit load fees on your investment.

 

 

 

WHAT ARE SECTOR FUNDS?

In sector funds investments are to be made in different sectors like Pharma, IT, energy, Utilities etc. By investing in sector funds you diversify your risk. Sector funds come in different flavors based on their objective, market capitalization, and class of securities.

 

 

Some of the sector funds discussed below:

  1. Franklin Build India Fund: This fund aims to invest in those companies which are directly or indirectly in infrastructure related activities. The scheme has generated 20% annualized return and 43% return in last 1 year.

 

  1. Reliance Parma Fund: Main objective of this fund is to invest in those companies which have exposure in dharma and medical related activities.

What is the difference between Growth Plan investment plan and Dividend Re-investment plan?

Main difference is that in growth plan your investment grows with the increasing in the fund’s value while in dividend re-investment plan, the dividend declared by the mutual fund scheme is re-invested automatically in the scheme.

 

 

 

What is account Statement?

Account statement is a statement of transaction that you do till date. It contains the number of units you hold, number of units you withdraw till date etc. All mutual fund schemes send monthly statement to the investor’s on their email ids.

 

What is systematic Withdrawal plan?

Systematic withdrawal plan offers the facility of withdrawing amount from the mutual funds at regular intervals be it on monthly basis, quarterly basis or annual basis. SWP is done by the retirees to meet their expenses.

 

 

 

Does higher return indicates a good fund?

It’s not always necessary; you must also check the risk ratio like Sharpe ratio, standard deviation, beta and alpha to judge the performance of the fund. If all these parameters qualify your filters then you can invest in that particular mutual fund

 

summary of article: hare, you have learn about how to choose top best performing mutual funds, what are mutual funds, what are the advantage and disadvantages of mutual funds and top 10 best performing mutual funds. after reading this entire post, you got a idea and basis knowledge about it. now you can identify best  mutual funds for your investment. i know this is little bit difficult. but you can do it.

also read:

gst full name detail

india top 10 best card in india for salaried person

forex trading in india 

 

 

if you like this post about top 31 tips for choosing top best performing mutual funds, then please share it with your friends. you can share it on social networking website like facebook, whatsapp etc.

4 COMMENTS

  1. these are one of the best tips for choosing best performing mutual funds. thanks for knowledgeable article. 🙂

  2. i am an mba student. i am making a project for my study. sir i want to get detail information about What are mutual funds? advantages and disadvantages of mutual funds, how to choose top best performing mutual funds among indian company etc.

LEAVE A REPLY