We have more than 11,000 Mutual Fund Schemes that are currently available in the market (Equity & Debt Schemes as on Sep, 2016). It is a highly challenging task for any advisor / investor to select best mutual fund schemes out of these thousands of schemes.
There is no doubt that Mutual Funds are one of the best investment options for long term wealth creation. However, if you pick wrong MF schemes that do not match your investment objective(s) and time-frame then it could spell disaster for you.
Investing in right mutual fund schemes which have been performing consistently well and monitoring your MF portfolio performance is a very important task.
Equity Mutual Funds are risk oriented products. You can consider investing in the below top performing mutual funds through SIPs (or lump sum) only if your time horizon is atleast 5 or more years.
I had published an article on ‘Best Equity mutual Fund schemes 2016’ in December, 2015. Below is the top 15 mutual funds (category wise) list as per my old article.
- Large-cap fund category
- Birla Sunlife Frontline Equity Fund
- ICICI Pru Focused Blue-chip Equity Fund
- UTI Equity Fund
- Diversified or Multi-cap category
- Franklin India Prima plus
- ICICI Prudential Value Discovery Fund
- Mirae Asset India Opportunities Fund
- Small & Mid-cap fund category
- UTI Midcap
- HDFC Midcap
- Franklin India Smaller Companies Fund
- Hybrid – Equity oriented category
- HDFC Balanced
- TATA Balanced Fund
- ICICI Prudential Balanced Fund – Regular Plan
- ELSS / Tax saving category
- Franklin India Tax shield
- Axis Long Term Equity Fund
- Birla Sunlife Tax plan
Below are some of the top performing best mutual fund schemes (Equity oriented) that you can consider for investing in 2017 and beyond. In this review, I have listed mid-cap and small-cap funds as separate categories.
Best Mutual Fund Schemes for 2017
(Click on the above image to open it in a new browser window)
- Large Cap Funds 2017 : I have retained Birla Frontline Equity & ICICI Prudential Focused Bluechip funds but replaced UTI Equity fund with SBI Blue chip fund. If you have invested in UTI Equity fund, you may hold on to the existing units and consider investing future SIPs/additional investments in other suggested Large cap funds.
- Multi cap Equity Funds 2017 : I have replaced Mirae Asset Opportunities Fund with L&T Value Fund and retained the other two diversified equity funds. If you have invested in Mirae fund you may continue with your existing and future investments.
- Mid-Cap Funds 2017 : I have retained both the Mid-cap funds that were listed in my last review (HDFC Mid-cap & UTI Mid-cap). I have added one more fund to the mid-cap fund category list ie Franklin India Prima Fund.
- Small Cap Funds 2017 : Besides Franklin Smaller Companies fund, I have added DSP Micro-cap fund and SBI Small & Mid-cap fund to the current list of best small cap funds.
- ELSS Tax saving funds 2017 : I am considering the same list of ELSS funds this year too.
- Equity oriented Balanced Funds 2017 : I have added SBI balanced fund to the list.
Let us now look at some more details of the funds listed under each of the fund categories.
Top 3 Best Large Cap Equity Mutual Funds
- There are around 150 large-cap equity funds. The average return from this category is around 12% for the last 5 years.
- Birla Frontline Equity fund has been one of the best and most consistent performer among the large cap funds. The Assets under Management (AUM) of this fund are around Rs 13,800 cr. The fund generally invests around 80 to 90% of its corpus in Large cap stocks and the remaining 10 to 20% in mid-cap stocks. It has managed to contain declines very well during bear phases (in 2008 & 2011).
- SBI Bluechip fund has been performing really well for the last few years. It has a ‘low’ risk grade and ‘high’ return grade.
- ICICI Focused bluechip fund has been a consistent performer for the last 5 to 6 years. The fund usually allocates 90 per cent plus to large-cap stocks and 5-10 per cent to mid caps.
- Franklin Bluechip fund, Birla top 100 fund & Quantum Long-term equity fund are the other large cap funds to watch out for.
Best Diversified / Multi-cap / Flexi-cap Equity Funds
- Multi-cap funds are also referred to as flexi-cap or Diversified Equity funds. Currently there are around 260 equity diversified equity schemes.
- Some mutual fund research portals list Franklin Prima plus fund under large-cap fund due to the fact that around 70% of its corpus is invested in Large cap stocks and the remaining balance in mid/small cap stocks. So, if you would like to pick a diversified equity fund with high large-cap exposure then Franklin Prima plus fund can be your choice.
- Currently, the portfolio allocation of ICICI Pru Value Discovery fund is also similar to Franklin Prima plus fund. Otherwise, this fund generally invests around 30 to 40% of its corpus in mid-cap stocks. It typically follows contrarian style of investing.
- L&T Value fund, relatively a new fund under multi-cap category, has been performing well in the last few years. This fund has a very good allocation across large, mid & small cap stocks (40:35:25). So, if you would like to make an aggressive investment in a diversified fund, LT Value fund can be your best bet.
- Franklin India High Growth Companies fund & Birla Equity fund are the other multi-cap funds to watch out for.
Best Mid-cap Equity Fund Schemes
- There are around 140 Small & Mid-cap equity fund schemes. The average returns from this category is around 25% over the last 5 year period.
- HDFC Mid-cap fund currently invests around 56% of its corpus in mid-sized companies. In 2008, 2011 and 2013, this mid-cap contained losses which are far lower than its benchmark (Nifty Free Float Midcap 100). If you are looking for a mid-cap fund which can withstand the choppy rides during bear phases then HDFC mid-cap fund can be your apt choice.
- Franklin Prima Fund has invested around 68% of its corpus in Mid-cap stocks and around 5% in Small cap stocks. It is one of the oldest mid-cap funds. It has beaten its benchmark (Nifty 500) in the last six years by big margins.
- UTI mid-cap is ranked consistently high for 5 year and 10 year period. Though the fund manager has been changed, its performance remained almost the same. The fund’s portfolio mix features a 55 to 60% mid-cap exposure and a 15 to 20% small-cap weight.
- The other notable mid-cap funds are Mirae Asset Emerging blue-chip fund and Principal Emerging Bluechip fund.
Top 3 Best Small cap Mutual Funds
- Franklin Smaller Companies fund invests in stocks with a market cap below that of the 100th stock in the CNX 500 index. Last one-year returns haven’t been top of the charts, but the three and five year records more than make up for this. As the fund’s investment style is more conservative, it is a good choice for investors who wants to invest in small cap fund with a less bumpy ride. Currently, the fund has allocated 43% of its corpus to Small Cap stocks and 47% to mid-cap stocks.
- DSP Micro cap fund has a very high allocation to small cap stocks which is currently around 65% of its corpus. The fund has been overweight on small cap stocks relative to its peers and underweight on both mid- and large-cap holdings. It follows buy & hold investment strategy. Hence, it has a very low Portfolio Turnover ratio which is at 13% (Turnover ratio is a measure of how a fund’s portfolio changes in a year.)
- Around 76% of SBI Small & Mid-cap fund’s corpus has been invested in small cap stocks. It has ‘below average’ risk grade and ‘above average’ return grade. Kindly note that the fresh investments have been ‘ Suspended Temporarily’ by the fund.
- Reliance Small cap fund is another good small-cap fund that is worth tracking, but its Standard deviation is very high.
Top performing Tax-saving Mutual Fund Schemes (ELSS)
- There are more than 100 tax saving ELSS mutual fund schemes in the market. This category’s average returns are around 12% for the last 5 years.
- Franklin Taxshield is an ELSS fund but you can consider this as a typical Large-cap fund, as around 80% of its corpus has been invested in large cap stocks. This fund generally doesn’t take cash calls and remains fully invested through market cycles. If you are a risk averse investor and wants to take tax benefit, this is a good bet.
- Axis LTE fund can be treated as flexi-cap fund with tax benefits. Its risk grade is ‘low’ and return grade is ‘high’.
- Birla Tax plan, Birla Tax relief 96 fund & DSP Tax Saver funds have also been consistently performing well.
Best Balanced/Hybrid Equity Funds
For a detailed review on Balanced funds, kindly read : Best Equity oriented Balanced funds.
My Mutual Fund Portfolio
I have remained invested in the same set of funds in this calendar year too. However, I have added Franklin Smaller Companies fund to my long-term portfolio.
In the next calendar year i.e., 2017-18, I am planning to discontinue my future investments in TATA balanced fund and continue my SIPs/additional lump sum investments in other funds. (Kindly note that I have disclosed my portfolio only for information purposes and these are not recommendations. Kindly pick MF Schemes as per your financial goals.)
My observations & general suggestions
For the last two years, I have been receiving thousands of comments/queries on mutual fund schemes. I get a chance to learn new things when answering these queries. Let me share my observations and suggestions with you all;
- Identify your Goals : Majority of us identify the products first and then try to shortlist best investment avenues. An investor has to first identify his/her financial goals and then try to short-list best available options. This is applicable for mutual fund investments also.
- Invest Goal-wise & not as per your age-wise: Even if you are a Senior citizen, you can invest in Equity funds if they are suitable to your investment objectives. Equity funds are for any type of investors.
- Diversify across Fund categories & Fund houses : I often observe that investors invest in multiple funds of same Fund house. Suggest you to not only invest in funds offered by different fund houses but also try to pick funds from different fund categories. (Kindly read: ‘What are Large, Mid, Small,Multi-cap funds?‘)
- Ignore Short-term volatility : It is understandable that an investor (especially new investors) may panic if he/she sees negative returns on his MF portfolio. If you have invested in Equity oriented mutual funds for medium to long-term, kindly stick to your investment objectives. It is advisable to ignore short-term volatility (if any). But do track the performances of your funds & portfolio once in a year.
- Consistency is the key parameter : A ‘good mutual fund scheme’ is the one that consistently manages to outperform its category returns and also it’s Benchmark’s. It is prudent to be with the consistent performers for long-term goals instead of churning your portfolio based on Star ratings or recent performances of the funds.
- SIP & Additional investments : Is SIP a sure-fire way of creating long-term wealth? Systematic Investment Plan (SIP) inculcates financial discipline. However, it is not a fair comparison to equate SIPs with investing in a lump sum. Both have their own pros and cons. It is better to have SIPs in place and at the same time, you can make additional investments (lump sum) when you believe that markets are down.
- Realistic Expectations : If you analyze the returns generated by the above list of funds for the last 10 years, the maximum is 16% and the minimum return is 10%. So, let’s have realistic expectations from equity funds. May be, a 12% rate of return sounds very good 🙂
- Regular & Direct plans : I do get lot of queries on what is the difference between ‘Regular plan’ and ‘Direct plan’. Kindly read this article for a detailed explanation on this topic : What are Direct Plans of Mutual Fund Schemes?.
Kindly note that the above list of best mutual fund schemes is not an exhaustive one. Mutual funds are not guaranteed, their values/returns change frequently and past performance may not be repeated.
Continue reading :
- How to select best Mutual Fund Scheme?
- Mutual Fund investments are subject to market risks : My opinion!
(References : valuereasearchonline, moneycontrol, freefincal & morningstar portals)
( Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post published on 16-December-2016)
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Top 6 Best ELSS Tax saving Mutual Funds to invest in 2016
Hi,
I like your articles and your analysis.I had started SIP is SBI Bluechip and Kotak Select focus fund one year back. now after some gaining a little knowledge like downside protection, rolling returns etc and reading articles a couple of reliable sites like yours, I want to continue long term SIP for 15 years with low to moderate risk in terms of equity. I am investing around 50:50 in debt and equity Debt is my PF and PPF for 15 years.
After re-categorization of fund Kotak select and Franklin Prima plus both are multicap. I want to make a core portfolio for equity where I will need to analyse this once in an year.
SBI bluechip 40%
Franklin Prima Plus 40%
HDFC Mid cap opportunity 20%
or
SBI Bluechip 40%
Kotak Select Focus 40%
Franklin Prima (mid cap) 20%
I am confused choosing between Kotak select and Franklin Prima plus and another confusion between Franklin Prima and HDFC Mid cap. also in case I need to choose one fund from Franklin what will be your recommendation.
Dear prakash,
Since you have already invested in SBI bluechip & Kotak selectfocus, suggest you to kindly continue with them, both are decent choices.
You may add one mid-cap fund to your portfolio as mentioned by you.
Very tough call to pick one fund out of HDFC mid-cap or Franklin Prima fund.
Given a choice, I would pick HDFC Fund.
Related article : How to select the right and best Mutual Fund Scheme based on the Measures of Volatility?
Thanks Sreekanth. The main reason of my confusion was because of portfolio overlap between SBI bluechip and Kotak select focus. in last few months there were huge overlap. my investment is not much in any of them, so before making final decision if we should continue either or both of funds I thought to ask for your opinion.
Also High AUM of HDFC midcap should not be worrying as of now? what is your opinion here?
Dear prakash,
Owing to change of Investment objective, fund type and strategy, we may see a change in their portfolios and overlap.
In case, you have not invested heavily then you may start investing in either of them and pick Prima plus (check overlap) and then a mid-cap fund.
I do not worry much about high or low AUMs.
Thanks Sreekanth.
Dear Sreekanth,
I’m 35 years of age, Marriage with 2 boys(twins 3yrs old).
We have no current liabilities. 10 Lacs in FD(shall move it to equity as they mature). I have Term plan for 1.4 cr + 50 lacs Parmenant disability cover. Medical is covered from our office(14 Lac for me & 6 lacs for my wife). However looking for a family cover in addition, appreciate if can also suggest on this front.
Below is my and my wife’s(also working) portfolio, appreciate your views on we achieving the desired goals.
Below are monthly additional investments except Emergency Fund which was a lump sum investment.
Emergency Fund Allocation % Allotted
ICICI Prudential Equity Arbitrage Fund -Direct 200,000
ICICI Prudential Liquid Plan 200,000
400,000 NA
Short Term(3+ yrs) Allocation
Franklin India Low Duration Fund 1,000
SBI Magnum MIP 2,000
3,000 7.06%
Medium Term(10+ yrs) Boys Graduation(Target 10-12 Lacs) Allocation
Franklin India Smaller Companies fund 5,000
HDFC Balance Fund 4,000
Birla Sunlife MIP II WEALTH 25 Plan 1,000
UTI MID CAP Fund 2,000
12,000 28.24%
Medium Term(20+ yrs) Boys Post Graduation + Marriage Allocation
HDFC Mid-Cap Opportunities Fund 5,000
ICICI Pru Value Discovery fund 1,000
Franklin India High Growth Companies 5,000
L&T India Value Fund 4,000
15,000 35.29%
Long Term(30+ Yrs) Retirement Allocation
DSP BlackRock Tax Saver Fund 3,000
SBI Blue chip 3,000
Axis Long Term Equity Fund 1,000
Tata India Tax Savings Fund 1,000
Birla Sun Life Tax Saver 96 1,000
Birla SL Frontline Equity Fund 3,500
12,500 29.41%
Medium Term(20+ yrs) Boys Post Graduation + Marriage- Required amt will be around 1cr as per todays cost.
Long Term(30+ Yrs) Retirement- Required amt will be around 1cr as per todays cost.
Sorry missed this point.
Regards,
Sam
Dear Sam,
1 – Medical cover.
Kindly go through below articles:
Best Family floater plans
Important factors to keep in mind when buying a health cover
Super top up health insurance plans
Best portals to compare health insurance plans
2 – You may keep an eye on UTI mid-cap fund’s performance, as it is not upto the mark.
You are following goal-wise portfolio approach. That’s fine!
The listed funds are all good ones.
Suggest you to kindly go through below articles;
Kid’s education goal planning calculator
Retirement goal planning
What is 200 DMA?
How to pick right mutual fund schemes?
MF portfolio overlap analysis tools
Dear Srikanth,Although this article is seven months old,but many investors look forward to new Ideas for investment in MFs in new year 2018.looking forward to a fresh article from you for investment in 2018.
Dear Jawahar ji ..Sure, will publish the article at the earliest.
As per the latest SEBI’s circular on MF re-categorization, the fund houses have to re-organize their scheme portfolio. Hence, awaiting for the latest update. If this is going to take some more time, will surely go ahead and publish my article by this month end or in Jan 2018.
Hi Sreekanth,
I’m 38years and am repaying a Home loan of 27lakhs with 27k EMI.
Apart from that I have 2 Life Term Insurance plans of 50lakhs each from AegonLife & Aviva .
I want to start SIP for my daughter’s Studies & marriage after 10-15 years.
And also need to save for my retirement.
I’ve ruined a lot of lakhs in Share Markets Futures & options, in an attempt to get Rich overnight.
So Please suggest me where to start from, for my future goals.
I can spare 10k-15k per month after my home needs & EMI.
I’m quite new to your Blog & Mutual funds also.
Please suggest accordingly.
Regards
RK
Dear Nagraj,
Suggest you to kindly go through below articles, can be useful to you, and you may revert to me with more queries (if any) ;
Kid’s education goal planning
Retirement goal planning
How to create a solid investment plan
List of important articles on financial planning
Hi Sreekanth
I have to setup sip for Rs 10000 for my daughter higher education for 10 years, I am not sure which category fund I choose and in which proportion.
Please help me to achieve my goal.
Regards
Sameer
Dear Sameer,
Kindly go through this article :
Kid’s education goal planning
Hi Srikanth
I have taken a home loan this year with monthly emi of Rs28500 for next 20 years. Now I have 10 lacs, instead of paying principal now. I am planning to invest this some in MF for 6 to 7 years to repay loan completely. My goal is to use this amount effectively to repay remaining loan in one go. Please suggest me how to achieve this goal and which MF should be chose and in what proportion.
REgards
Sameer
Dear Sameer,
Kindly go through this article : Pay-off home loan or invest in MF?
If your time-frame is around 7 years, you may consider equity oriented balanced funds, invest them for next 5 years and then switch to safer bet 1 or 2 years before you plan to settle the home loan.
Kindly read :
Best Balanced funds
How to pick right mutual fund schemes?
Hi Sreekanth Sir,
First of all thank you so much for sharing such a valuable investment information and suggestions as investment in mutual funds is really challenging
I just came across your blog while searching for best mutual funds.
I am yet to read your blog completely.
I am 30 year old with no investment plan yet and married too and i am the only single earning person in family .
I am a salaried person and salary is 35k per month
I am planning to invest for long term though i read about mutual funds, stocks and shares but still confused
Please give me sir guidance over this
Thanks in advance
Dear Manoj,
Suggest you to kindly go through below article, you may get some idea about financial planning, you may revert to me with more queries ;
List of important articles on FP
Thank you Sreekanth Ji
Hi Sreekanth,
Thank you for sharing knowledge with us. I have been following your blogs quite some time and must say its amazing.
Request you please review my portfolio– Long term (12+ years) , Children education and wealth creation for retirement. Below fund are Direct and Growth type SIP
1. Kotak select focus fund – 1500
2. Motilal oswal multicap 35 – 1500
3.HDFC midcap 1500
4. Franklin I smaller companies – 1500
5. Mirae emerging fund – 1500
6. Reliance small cap – 1500
7. DSP blackrock tax saver – 1500
8. Birla sunlife tax saver 96 – 1500
9. HDFC Bal fund – 1500
Dear Murari,
All the listed funds are good ones, but investing in too many funds may not be that beneficial.
May be 2 to 4 funds is more than enough, can be one diversified equity fund + one mid-cap fund + one balanced fund.
Suggested readings :
Retirement goal planning
Kid’s education goal planning calculator
How to select right mutual funds Schemes?
MF portfolio overlap analysis tools
Hi Sreekanth , I am regular follower & reader of your blog and thanks for keeping posted on recent financial changes and helping me to take decisions in new investments.
Pls review my portfolio & advise if anything needs correction.
I am 27 year old (unmarried) and as of now I don’t any liabilities on me .
My goal is tax saving + wealth accumulation only.
My SIPs are perpetual and I want to invest for more than 25 years , adding to my past SIP’s now I want to invest more ,can you please suggest me few funds (Large or Mid or Small caps).
As of Now I am investing 6000/Month and want to add 5000/Month more.
Please suggest.
My portfolio is –
SBI Pharma Direct-G(1000/M) 14 Months Old
SBI Bluechip Direct-G(1000/M) 14 Months Old
Kotak Select Focus Direct-G(1000/M) 14 Months Old
DSPBR Tax Saver Direct-G(1500/M) 6 Months Old
Axis Long Term Equity Direct-G (1500/M) 6 Months Old
Dear Ankit,
Thank you for following my blog posts!
The above mentioned funds are decent ones. You may add one Mid-cap fund. Ex : HDFC Mid-cap opp fund (or) Mirae Emerging bluechip.
Kindly read :
How to pick right mutual fund schemes?
MF Portfolio overlap analysis tools
Hi Sreekanth ,Thanks for the Quick response and recommending good funds!
I am still finalizing the sips in which I want to make investment .
1.Can you please clarify the significance/effect of expense ratio in Direct SIP , how can I calculate my returns on the running/past SIP’s and Should I concern about the higher expense ratio (above 2.0) for investing in future SIP’s .
2. Also if my SIP is performing well , can I increase the SIP installment value (from 1000 to 5000) in the same one or I’ll have to book a new SIP in the same fund.
Thanks
Dear Ankit,
1 – Most of the platforms do provide the performance report (returns calculations). In case, it is not available, suggest you to add a dummy portfolio with the funds that you have inveted in, on portals like Moneycontrol / Economic times and track their performances.
For manual calculation, kindly read :
What is XIRR excel formula?
Five formulas to calculate return on investments
Kindly do not worry too much about expense ratio, as most of the funds have it in the same range. In case, you see a drastic difference out of the say two shortlisted funds, you may pick the one which has lower expense ratio. Kindly note that expense ratio can vary from time-to-time.
2 – You may make additional investment/SIP in the same fund with the same folio number.
Dear Sreekanth,
I would like to know why it is not advisable to invest in many funds ( more than 5 0r 6 ) when the portfolio overlap ratio is less than 10% among each.
My time-frame is 10 yrs and want to achieve high corpus by investing in multiple funds across different sectors.
Goal is for New house construction, Child Education/Marriage etc.
Dear Angari,
Kindly note that most of the funds do invest in different sectors.
Reviewing multiple funds can be a difficult task and more the funds in ones portfolio there can be a higher chance of frequent churning of portfolio.
Also, may be it is tough to find multiple funds with a portfolio overlap of less than say 10%, as there are limited number of available stocks.
Suggested readings :
Retirement planning calculator
Kid’s education goal planning
Hi Sreekanth ,
I have started following your blog a month back . Must say its amazing !! Thanks for sharing the knowledge .
I am new to Mutual Funds , And after studies planning to invest in the below :
1. SBI Blue Chip : Large Cap : 2000 pm
2. Axis LTE : 2000pm : Tax Saving
3. DSP Micro Cap Fund : 1000 pm
Please let me know if any changes are required .
Dear Pooja,
Thanks for your appreciation!
May I know your investment objectives and time-frame??
Is Axis LTE for your tax saving purposes?
Kindly note that fresh investments to DSP Micro fund have been temporarily suspended.
Related articles:
How to create a solid investment plan?
How to pick right mutual fund schemes?
MF Portfolio overlap analysis tools
Hi ,
The main objective is to get good returns and a bit of tax saving under 80c (I also have NSCs).
Time frame is 5 years . If DSP Micro Fund is suspended May I know what is the other option for it.
And also Lemme know if below portfolio looks good :
1. SBI Blue Chip : Large Cap : 2000 pm
2. Axis LTE : 2000pm : Tax Saving
3. *** Replacement for DSP
Dear Pooja,
The first two funds are fine. But do note that the units allotted under each SIP of an ELSS fund (Axis LTE) get locked for 3 years, in case your time-frame is 5 years, you need to plan your investments accordingly.
Instead of a small cap fund, you may consider an equity oriented balanced fund like HDFC balanced fund (for a 5 year time-frame).
Hi ,
Thanks for your response .
For ELSS Fund , If locking period is 3 years , it can be withdrawn anytime thereafter ; Right ?
Let me know for ELSS Funds what locking period you suggest !
Thanks for your suggestion , would include HDFC Balanced Fund in my portfolio .
Also are small cap funds not good for 5 years ?
Dear Pooja,
Yes, after 3 year period, the units can be withdrawn.
But kindly note that the units allotted say in Jan 2017, will come out of lock-in period after Jan 2020 and same is the case with respective SIPs.
3 years lockin period is a mandatory one for ELSS tax saving funds like Axis LTE.
For regular MFs there is no lock-in period as such.
It is not good or bad, but investing in small cap funds for shorter term can be a risky bet.
Hi Sir ,
Thank a lot , I proceeded with the investments as per your suggestions 🙂
I am 27 years and want to have Insurance where I need to have returns in between as well.
I can invest upto 36k per annum for Insurance .
Let me know which ones can I go ahead with !
Thanks
Dear Pooja,
Kindly do not mix insurance with investment.
If you are an earning member of your family and have dependents and/or have financial liabilities, you may buy a basic term life insurance cover.
Do buy a stand-alone personal accident cover and a health insurance policy.
Suggested readings :
Traditional life insurance plans – a terrible investment option?
Term insurance plans Vs endowment insurance plans
If life is unpredictable, insurance cant be optional!
Best Term insurance plans
Best Personal accident insurance plans
Hi Sreekanth,
Nilesh here once again. My current Age is – 32 .
I have below current MF investment.
1 Birla Sun Life Equity Fund -Dividend Payout – 5 Years – 5000 (Monthly) from Dec 2016
2 HDFC PRUDENCE FUND – MONTHLY DIVIDEND PAYOUT – 5 Years – 3000 (Monthly) from Dec 2016
3 Franklin India PRIMA FUND GROWTH – 25 Years – 5000 (Monthly) from Dec 2016 – MID CAP
Can I cancel my existing both Dividend Fund and instead of this I will add new MFs along with existing Franklin India Prima Fund.
So my new MF portfolio will be as follows
1) Birla Sunlife Frontline Equity Fund -(D) Growth – 20 Yrs – 5000 Rs
2) Franklin India Smaller Companies (Direct Growth) – 20 Yrs – 3000 Rs
3) Kotak select focus Fund Direct Growth – 20 Yrs – 3000 Rs
4) HDFC Balanced Fund Direct Growth – 20 Yrs – 4000 Rs
5) Franklin India Prima FUND GROWTH – 20 Years – 5000 Rs
Considering the above new portfolio Can I achieve my goal 2 Crore during retirement (At the age of 55-60 )
Kindly suggest your comments .
Thanks.
Dear Nilesh,
You may do so. You may switch the funds from HDFC Prudence to HDFC balanced fund (growth).
Birla Equity fund is a good one, but you may switch to Growth option.
You may kindly use the calculators available in the below articles regarding corpus accumulation calculation ;
Retirement planning calculator
Kid’s education goal planning calculator
Hello Shreekanth,
I am a DIY investor and have chosen the following fund for sip:
1. Absl frontline equity fund -dir growth -5k
2. Kotak select focus -dir growth – 5k
3. Reliance small cap -dir growth – 4k
4. Uti opportunities – -dir growth -2k
5. Kotak emerging equities – -dir growth – 2k
6. Hdfc mid cap opp – -dir growth – 2k
My question is that is my portfolio diversified or over diversified.?
My investment horizon is 13 years and I my current age is 35 and I am investing for my early retirement by age 48.
Also according to Value research my investment is like – 38.83 % in giant cap, 15.45 % in large cap, 28.16 % in mid cap, 16.24 % in small cap, 0.13 % in tiny cap, 1.19 % is unclassified.
Can u please put forward your valuable input regarding my investments.
Thx n regds
Sonit
Dear Sonit,
You may ignore UTI opp fund. This is a large-cap oriented fund (as of now based on the fund’s portfolio), you have Birla frontline, which is a decent fund.
You may ignore Kotak Emerging if picking HDFC Mid-cap opp fund.
I prefer investing in Franklin Smaller cos fund to Reliance small cap fund.
Related articles ;
How to pick right mutual fund schemes?
MF portfolio overlap analysis tools
Dear Sir,
I am going to get 12 lacs in Jan 2018.I am doing SIPs.I want to invest 10 lacs in Mutual Fund from where I can do 10k per month SWP for 2 years and I want to do STPs also.I want to Invest this amount in Franklin,HDGC,SBI and Birla SL Mutual Funds 2.5lacs each.
Pl suggest.Thanks
Dear Kedar,
For SWP of 2 year time-frame, you may consider a Short term debt fund like Franklin low duration fund.
Do note that SWPs are subject to taxes (if any). Kindly read : MF taxation rules
May I know your investment objective and time-frame for lump sum investment? Any specific funds in your mind??
Related article : How to pick right mutual fund schemes?
Thanks Sreekanth. My goal is for 5 years wealth creation. My plan-25% SBI Savings Fund-Swp and STP to SBI Mid cap, Blue chip, Multicap, Balanced Fund. 25%in Birla SL-swp and stp to Front line equity.25% to Franklin Ultrashort Bond Fund-Swp and stp to Smaller companies and High growth and Prima Plus. Last 25%In HDFC MADCAP OPPORTUNITIES FUND AND BALANCED FUND.10%SWP and STP at regular 15days span
Dear Kedar,
Your investment strategy is fine.
But, investing in too many funds may not be really beneficial.
In case, your investment time-frame is around 5 years, you may allocate lesser amount to mid/small funds. Can prefer largecap/balanced funds.
Kindly read :
MF portfolio overlap analysis tools
Hi Sreekanth,
Thanks for creating such nice informative Blogs about Mutual Funds.
MySelf Nilesh Patil – Age -32 Yrs and working as NRI. Dependents – Spouse and 2 Yr Daughter
I am investing in Mutual Funds since last 11 months and planning to invest around 10K (total) more fund for SIP Long term one for 20 Yrs and another for 25 Yrs from Dec 2017.
My goal is to achieve at least 2 Crore during retirement (At the age of 57-60) and should have 50 Lacs for my Daughter marriage and Education at her age around 21-27 Yrs.
* Mutual Fund investments-
1 Birla Sun Life Equity Fund -Dividend Payout – 5 Years – 5000 (Monthly) from Dec 2016
2 HDFC PRUDENCE FUND – MONTHLY DIVIDEND PAYOUT – 5 Years – 3000 (Monthly) from Dec 2016
3 Franklin India PRIMA FUND GROWTH – 25 Years – 5000 (Monthly) from Dec 2016 – MID CAP
Please suggest your comments
1) Please review my portfolio and suggest do I require to change in existing Mutual fund ?
2) Planning to invest in SIP for Long term MF (20 and 25 Yrs) . Kindly Suggest which Mutual Funds should I invest ?
3) Recently there was new Mutual Fund announced called Axis Multicap Fund on October 30, 2017 (An Open Ended Equity Fund) What is your opinion about this Fund and will it be good for SIP ?
Thanking You in advance..
Nilesh Patil
Dear Nilesh,
If you are planning for long-term goals, suggest you to opt for Growth option instead of Dividend payouts of MF schemes.
The listed three funds are decent ones.
You may kindly ignore Axis Funds NFO.
Suggested readings :
Retirement goal planning
Kid’s education goal planning
How to pick right mutual fund schemes?
Hi Sreeknath,
Thanks for your quick response. Because of your MF blogs I started my MF investment and future financial planning very easily to achieve my goals.
Could you please recommend which Mutual Fund should I invest with Growth option as SIP at Low Risk and High Grade ?
Appreciate for your big Thanks.
Dear Nilesh,
You may opt for Growth option in your existing schemes itself.
Hi Sreeknath,
Might you explain correctly, but I am not understand your guidelines.
Please elaborate in details about opt for growth Option and correct me If mentioned something wrong. Sorry to bother you again on same point.
Also I need your views on below mentioned MF.
1) The below mentioned Funds are good for Long term (around 15-25 yrs) with Low risk or Moderate risk profile
2) You can give your best opinion to select best MF out of below 4
SBI Blue Chip Fund – Direct Plan – Growth – 4000 Rs
Franklin India Smaller Companies (Direct Growth) – 2000 Rs
HDFC Balanced Fund Direct Growth(Equity based Balanced Fund) – 2000 Rs
L & T Value fund Direct Growth – 2000 Rs
Apologies for inconvenience.
Thank in Advance.
Dear Nilesh,
You have invested in Birla Equity (Dividend), HDFC Prudence (Dividend) & Franklin Prima (Growth).
As your time-frame is long-term, instead of Dividend option, it is advisable to opt for Growth option for the first two funds as well.
The listed four funds are good ones.
You have HDFC prudence fund in your portfolio, so you may ignore HDFC Balanced fund.
Kindly read : MF Portfolio overlap analysis tools
Hi Sreekanth,
Appreciate your effort.
Thanks for your valuable guidelines.
Hi Sreekanth,
My current Age is – 32 . ( Daughter Age – 2 yrs) . My goal to achieve around 2 Crore during retirement (At the age of 57-60) . In future I should have 50 Lacs for my Daughter marriage and Education at her age around 21-27 Yrs.
I have below current MF investment.
1 Birla Sun Life Equity Fund -Dividend Payout – 5 Years – 5000 (Monthly) from Dec 2016
2 HDFC PRUDENCE FUND – MONTHLY DIVIDEND PAYOUT – 5 Years – 3000 (Monthly) from Dec 2016
3 Franklin India PRIMA FUND GROWTH – 25 Years – 5000 (Monthly) from Dec 2016 – MID CAP
Now planning to invest in below mentioned MF. Kindly review below MF and suggest which MF should I select and move ahead for Long term investment considering my current portfolio MF
Aditya Birla Sun Life Frontline Equity Fund – Direct Growth – 4000
Kotak Select Focus Fund Direct Plan – Growth – 3000
SBI Blue Chip Fund – Direct Plan – Growth – 4000
Franklin India Smaller Companies (Direct Growth) – 2000 Rs
L & T Value fund Direct Growth – 2000 Rs
Franklin India Smaller Companies (Direct Growth) – 2000 Rs
Thanks in advance.
Dear Nilesh,
The shortlisted funds are good ones.
But you may pick either of the two large cap funds (Birla frontline or SBI bluechip) and kotak select focus or L&T value fund.
Investing in too many funds may not be really beneficial.
Related articles:
MF portfolio overlap analysis tools
Hi Sreekanth,
Thanks for sharing the regular blog and your information keep us motivating to invest in proper way.
I need your assistance to include sum fund or to add the amount in current SIP, as i want to increase my allocation, kindly see the below my current SIP allocation,
ICICI Pru focuse Blue chip – Direct G – 1k
ICICI Pru Value discovery – Direct G – 2K
Franklin India Smaller Comp – Direct G – 1K
Axis LTE – Direct G – 2K
Franklin Tax shield – for Wife – Direct G – 2k
now i want to increase 2 – 3 K per month in SIP, hence suggest that shall i start new SIP or add amount in above any one or two fund.
Kindly suggest. Consider time frame as maximum as 5-10 yrs.
Regards
Mihir
Dear Mihir,
ELSS funds can also be considered as Multi-cap funds, so you have three diversified funds (ICICI Value, Axis LTE & Franklin Tax shield).
You may check their portfolio overlap.
May it is advisable to add one Equity oriented balanced fund to your portfolio. For ex : HDFC Balanced fund.
Hi Sreekanth,
Thanks for your response.
Can i go with ICIC Pru advance balance fund or Franklin Balanced or DSP Black rock.
Please suggest your view on above balance fund.
Regards
Mihir
Dear Mihir..You may kindly go through my article on Balanced funds..
Hello Sreekanth ,
Good morning !
Seek your advice as I am rechurning my portfolio.
As per Sebi’s new norms regarding reclassification/merging of Mf’s should one wait till this process is over or go ahead irrespective.
Mf’s planned:
HDFC balanced fund
ICICI Pru focussed bluechip
Thanks & Regards,
Roy
Dear Roy,
Suggest you to go ahead with these schemes, as these are popular ones, I dont think the respective AMCs will close these, at the most they merge with other schemes or merge other schemes with these.
Thank you Sreekanth.Good day
Thanks & Regards,
Roy
Hi Sreekanth,
Hope you are doing well. Need your advice for modifying my portfolio.
I want to accumulate money with the aim of child education and marriage. Time horizon is 13 years.
For this goal, I have an existing monthly SIP of Rs 8000 in following funds. This was started 1 year before.
1. Franklin India High Growth Fund – 4000
2. Franklin India Prima Fund – 4000
I wish to increase the total monthly SIP amount from 8000 to 15000.
Could you please suggest on following
1. Should any one of the existing funds be replaced or I can continue with them.
2. Please suggest additional funds that should be added (would like to add 1 or max 2).
Thanks,
Amit
Dear Amit,
Both are good consistent performers and belong to diff fund categories.
You may add one Balanced fund like HDFC balanced fund to your portfolio.
Related articles :
How to pick right mutual fund schemes?
Kids’ education goal planning
What is 200 DMA?
Thank you, Sreekanth !
Hi Sreekanth,
What is your view on DSP BlackRock Opportunities Fund. The returns are good and this fund is running since year 2000, it has gone through all phases of the market.
Will it be a good choice if I have to pick a multicap/diversified fund.
Dear Amit,
You already have Franklin HGC Fund which is a multi-cap, its performance is better than DSP opp fund.
Suggested readings :
How to pick right mutual fund schemes?
MF Portfolio overlap analysis tools
Sir,
STCG tax is 15% on equity.
But someone say to me–
Trading (Interaday or very short term) & F&O gain is taxed as per ur tax slab.
It is true ?
Dear Pankaj,
STCG @ 15% is for delivery based investments. You buy some shares, take delivery and if sold within 12 months, you may make STCG.
Whereas, Intra-day trading is a Speculative income. F&O is categorized as a non-speculative income. Any gains from these activities have to be added to your other incomes like Salary, rental income,. bank interest income etc. and taxes have to paid at the applicable slab rate.
You may go through this detailed article on this topic..
Sir,
If I hold delivery 1-2 or 4-5 days only,
than it is delivery based investment & under STCG.
Dear Pankaj ..Yes, if you buy and take the delivery of shares on to your Demat account, and if you then sell them after a few days, any gains you make is categorized as STCG.
Related Article : Why one should avoid doing Short term Share trading..?
Hello Sreekanth,
I intend to make changes in my ongoing SIP portfolio towards both my daughters PG education and house renovation
This is specifically with regards to Tata Balanced fund -Direct Growth which i want to exit and re invest the same sip amount in other fund/funds.
Elder Daughter’s PG-10 yrs horizon-Current ongoing Sip’s:
Tata Balanced fund-5 k
Icici pru focussed bluechip fund-3k
Franklin india prima plus-4 k
Hdfc mid cap oppurtunities fund-4 k
Franklin india smaller companies fund-3k
Icici pru value discovery fund-2k
Want to exit Tata balanced fund and re invest the 5 k in HDFC balanced fund or divide the 5 k proportionately among the HDFC mid cap and ICICI pru value discovery.
Younger Daughter’s PG-15 yrs horizon-Current Ongoing sip’s:
Tata Balanced fund -6 k
Franklin India smaller companies fund -4 k
Franklin India taxshield-5 k
Want to exit Tata balanced fund and re invest the 6 k in HDFC balanced fund .
House renovation-8 yrs horizon-onging sip’s
Tata Balanced fund- 2 k
Icici pru value discovery fund-1 k
Exit tata balanced fund and the reinvest the 2k in ICICI pru value discovery.
Would appreciate your advice on the above mentioned changes
Thanks and regards,
Roy
Dear Roy,
Goal 1 – Ok.
Goal 2 – As the investment horizon is 15 years, may be allocate higher amount to Franklin funds and have a lesser allocation to HDFC Balanced fund.
Goal 3 – Have a balanced fund.
Thank you for your prompt response Sreekanth.Is the below revised allocation ok:
Goal 1:
HDFC Balanced fund-5 k
Icici pru focussed bluechip fund-3k
Franklin india prima plus-4 k
Hdfc mid cap oppurtunities fund-4 k
Franklin india smaller companies fund-3k
Icici pru value discovery fund-2k
Goal 2:
HDFC Balanced fund -2 k
Franklin India smaller companies fund -6 k
Franklin India taxshield-7 k
Goal 3
HDFC Balanced fund- 2 k
Icici pru value discovery fund-1 k
Thanks and regards,
Roy
Dear Roy..You may go ahead with your investment plan!
Thank you for your advice and guidance Sreekanth.
Wish you a ‘Happy and Safe Diwali’ .
Thanks & Regards,
Roy
Wish you all the same! Happy Diwali! Thank you!
Hello Sir,
I’m planning to start the SIP’s in the below funds.
SBI Blue Chip Fund – 10k
ICICI Pru Value Discovery Fund – 10k
DSP Black Rock Micro Cap Fund – 10k
I currently have a SIP of 10K – Axis Long Term Equity Fund for tax purposes.My goal is wealth creation.
Please advise if okay to proceed.Thanks.
Dear NT,
Kindly note that fresh investments into DSP micro cap fund are temporarily suspended.
As an alternative to this fund, you may consider Franklin Smaller cos fund.
May I know your investment time-frame?
Hello Sir,
My time frame is 3 years. I’m not sure now if I will continue working, hence the short time frame.I don’t want the money to remain idle hence looking for Investments with good returns.
Dear NT..If you are not sure about the time-frame and minimum horizon around 3 years, you may stick to large-cap and balanced funds.
Ex : SBI Bluechip fund, HDFC Balanced fund etc.,
You may avoid investing in Mid/small cap funds.
Also, do note that the units allotted under each SIP of ELSS (Tax saving fund like Axis LTE) are locked for 3 years.
Hello sir,
Could you please help in achieving my goal. I have home loan of 16 Lacs. My target is to complete my loan in 3 years. I can invest 30k per month in MF. I have some amount in FD for emergency need.
Could you please suggest me good fund which will help in achieving 16 lacs by end of year 2020.
Also, curious to know whether SIP would be good or investing in bulk (in selected fund) in a month when market gets down ?
Appreciate your advise here. Thank you
Dear Vinoth,
Can you afford to take risk over the next 3 year period? May I know your risk appetite level (I mean, will you accept negative returns in short term)?
Dear Vinoth..If we look at numbers..to accumulate Rs 16 Lakh in 3 years with a monthly contribution of Rs 30k pm, the expected return is around 25%, which I believe is un-realistic (to expect).
As mutual funds do not generate guaranteed returns, this may or may not be achievable.
Thank you sir for your prompt reply and accumulating the return %. Regarding your first question. Yes, I can take risk. I know these days market is good but doubt about future of this high as this is unexpected for all of us.
In worst situation, I can even continue or hold till year 2022 even more. I know its better to invest in Mutual Funds rather than directly in shares as risk will be lesser.
What would be suggest. Should I go for MF or FD/RD? Just need your personal suggestion on this.
Many many thanks for doing this.
Thanks,
Vinoth
Dear Vinoth,
It all depends on whether you can afford to take risk or not?
You may consider a combination of FD/RD + Short term Debt fund + Arbitrage Fund + MIP Fund.
Ex – Franklin Low duration fund, ICICI Equity arbitrage fund, Birla MIP fund etc.,
These are debt oriented / hybrid funds, hence at max we can expect returns of around 7 to 10% over next 3 years, hence the desired corpus may not be achievable..
Thank you sir for your advise. This has given some idea on my future investment goal. Will plan accordingly.
God bless you.
Dear Sree,
I have a surplus amount of Rs1Lakh in my bank A/c and i wish to invest in Aditya Birla SL MIP II – wealth 25 Plan.
Can i Invest in this fund now? or have to wait 3 months to know the status of fund after new rules implemented which is announced by SEBI?
time horizon 5+ Yrs
Pls advice
Dear subbiah .. Tricky question!
If I have to invest, will go ahead and invest. As this is a popular fund, mostly the fund house may not close this fund.
If you do not want to take a chance, you may wait for couple of months to get a clarity …
Tks..ji
Hi Sreekanth,
I want to make SIP for my two goals Child Education and Retirement. I have shortlisted following funds. Can you please suggest if any modification is required in it.
Child Education: want to invest total 14000 monthly for 12 years.want to generate around 50 lakhs after 12 years. Following is the fund list with allocation percentage.
Hdfc balanced 35%
ABSL frontline 15%
Mirae Asset India Opportunities Fund 20%
DSPBR Opportunities Fund 20%
L&T india value fund 10%
Retirement: I want to generate around 2 Crores after 22 years with monthly SIP of 14000. Following is the list of funds with percentage allocation.
Hdfc balanced 25%
Axis Long Term Equity Fund (ELSS) 20%
aditya birla sun life advantage 20%
L&T india value fund Multicap : 20%
Mirae Asset Emerging Bluechip Fund 15%
Dear Anil,
1 – Education goal – You have two funds with large-cap orientation and two multi-cap funds. Kindly check their portfolio overlaps. All the listed funds are decent ones.
2 – Retirement goal – You have three multi-cap funds (Axis LTE though an ELSS fund, can be considered as a multi-cap fund). Kindly check their portfolio overlaps. All the listed funds are decent ones.
Related articles :
MF Portfolio overlap analysis tools
How to pick right mutual fund schemes?
Retirement goal planning
Kid’s education goal planning
Hi Sir,
I am investing Rs 1500 in each of below per month. Now i want to increase SIP in one of them. Can you please suggest, in which fund i should increase amount for long term.
icici prudential value discovery fund -Direct
icici prudential midcap fund -Direct
HDFC Mid cap Opportunity Fund -Direct
Regards,
Gourav
Dear Gourav,
You may allocate the amount to 1st and 3rd funds.
Thank you Sir
Hi basu,
Your work is highly appreciated.Thanks a lot for your valuable service.
I have already investing in SIP and have identified goals and accordingly invested in SIP ,PPF with 70% in equity and 30% debt with time horizon of more than 10 years.
However,I still have around 30 lokh in my saving account which i dont need in near future atleast 7-8 years.What is the best way to utilize this money?
Dear Sravan,
You may consider setting up STPs (systematic transfer plans) to invest the lump sum corpus.
You may kindly share the MF scheme names that you have already invested in..
Hi Srikanth, Thank you for the information.
Please let me know the strategy to redeem if I need to withdraw the PARTIAL amount from the invested mutual funds, probably in a month or so. Do I need to redeem the profits from all of the invested mutual funds from the portfolio or just redeem one or two MFs. Please assume all the mutual funds are equity oriented and don’t attract short-term capital gains tax(most of the funds in my portfolio are performing at the same level in my case)
Thanks
Dear Tom,
You may kindly share the MF scheme names and their respective returns.
Also, let me know your investment horizon..
Hi Srikanth,
Here is the list of mutual funds and respective returns. I want to keep it invested and redeem only small portions when needed. Time horizon is more than 10 years(of course I may change the mutual funds on regular basis based on the ratings and returns)
(all are falling into long term capital gains category and don’t attract tax)
Fund: approx return (CAGR) :
SBI magnum midcap 11%
UTI midcap 12%
Motilal oswal multicap35 17%
hdfc micap opp 17%
canara robeco emerging equities 18%
Franklin india smaller comapnies 19%
Thanks
Dear Tom,
If you require and have to redeem some units, you may consider making partial redemptions from SBI and UTI funds.
Thanks Srikanth. Even If I redeem most of the units from SBI and UTI, it will not meet my need and I am forced to redeem from other Mutual Funds. This puts me into dilemma whether I should go for partial redemption of units across all of the funds or just some of them. Please let me know your suggestion on this.
here is the sample portfolio
Mutual fund Name CAGR Invested amount
SBI magnum midcap 11% 20K
UTI midcap 12% 30K
Motilal oswal multicap35 17% 50k
hdfc micap opp 17% 40K
canara robeco emerging equities 18% 40k
Franklin india smaller comapnies 19% 40k
Dear Tom,
If it is so, you may redeem all units of SBI & UTI, and may be equal amounts from the rest of the funds.
Thanks Srikanth
Hello Srikanth,
I have 10 lack surplus amount and i want invest in mutual funds. I expect 25 lacks in 2024 for one my goal. Can you please suggest me how to move ahead. Should i invest directly in equity MF or invest in debt and make SIP to equity ?
Please suggest.
Dear Mahee,
So, the expected CAGR (returns) is around 14% in next 7 years.
As returns are not guaranteed in MFs, you have to keep reviewing your Portfolio performance over the next 7 years.
You may consider setting STP from a liquid fund to an equity oriented balanced fund(s), may remain invested in a balanced fund for 5 to 6 years and then can gradually move your accumulated corpus to safer investment avenues, as you reach the target year.
Ex – HDFC Liquid fund to HDFC Balanced fund.
Dear sir
I want 1 crore after 20 years. My investment is following
1) SBI emerging business fund-1000
2) reliance tax saver-2500
3) Birla tax relief 96-1500
4) IDFC premium equity-2000
5) Birla frontline equity-2000
6) Birla India gennext -2000
7) Franklin smaller fund-3000
8) Kotak select focus-2000
9) reliance gold fund-1000
Kindly guide me if any chance regarding to achieve my goals.
Dear Ritesh,
Kindly go through below articles ;
Retirement goal planning Calculator
Kid’s education goal planning calculator
MF Portfolio overlap analysis tools
How to pick right mutual fund schemes?
Hi,
Am planning to invest in PMS..Can you suggest whether it is advisable to opt for PMS or to go with self trading option.
Is returns are good in PMS??
Dear Kannan,
Personally, I stay away from PMS.
I believe that most of such facilities do lead to unnecessary churning of portfolios and lack their vision on your goal based investing.
Also, if you are planning to do trading in direct equity, suggest you to be aware of the risks associated with short term trading..
Dear Shree,
I am investing 21K / month through SIP in below funds, please advice me weather these funds are ok.
I want to increase sip by 4K/month, please suggest the fund.
1. DSP BlackRock Tax Saver Fund -3000
2.Mirae Asset India Opportunities Fund – 2500
3. Mirae Asset Emerging Bluechip Fund – 6000
4. HDFC Mid-Cap Opportunities Fund – 1500
5. DSP BlackRock Micro Cap Fund -3000
6. Franklin India Smaller Companies Fund -1500
7. UTI MNC – 1500
8.UTI Transp & logistic -2000
My SIP investment is at least for 15 years .investing since 2015 & gradually increased the SIP amount.
My age is 38 years. I want to retire with Rs 2.5 cr.
Please review my portfolio and suggest the changes , add or delete any fund.
Dear Mahesh,
You may continue with your investments!
Keep an eye on UTI funds’ performance.
Kindly read : Retirement goal planning & calculator
Dear Sreekanth
Hope you are well. I wanted to check with you on Birla Sunlife Dynamic Bond Fund. I had invested 2 lakhs in it last year, and it has given me a return of 6.5% as on Aug’17. This is the least return I have seen from any fund. Requesting your advice as to how much time do i need to remain invested to see returns or do you recommend me opting out from it and investing in Birla Sunlife MIP.
Kindest regards
Dear Ksam..May I know your investment time-frame when you have invested in this fund?
Though the performance of this fund compared to its peers is on lower side, one needs to hold a dynamic bond fund for at least medium term say 3 – 5 years to expect decent returns.
Thanks Sree. I will remain invested in it for 3-5 years.
Hello Sree,
Request you to clarify my doubts:
1. What is the different between Birla sunlife equity and Birla sunlife advantage equity funds. Both are multicap. Investment style is same.
2. If i want to investin one multicap fund using SIP out of these funds (Birla sunlife equity, Birla sunlife advantage equity and Franklin india high growth companies) which one should i choose.
3. ICICI pru val discovery – new investments are recommended or not recommended in this fund.
Regards
Mukul
Dear Mukul,
Yes, their investment strategy, benchmark index, fund category, large-mid-small cap allocation etc are almost same. And both of them are pretty old funds, and have been performing decently.
Just more options to the investor and nothing else!
All these years, SEBI/AMFI has been allowing multiple similar funds under same fund categories from same AMCs , but looks like now they want to cut the count to half. Kindly go through this article….
2 – Birla Advantage or Franklin HGC can be considered. Birla Adv fund has a long track record. You may check their risk ratios and take a call.
3 – Do you have investments in this fund?
Thanks Sree.
1. I have investments in icici pru val discovery. Total accumulation is 24K and I stopped SIPs in this fund last month. AT this point of time I do not want to withdraw money but no further investments in this fund.. I am planning to start SIP in Birla sunlife advantage fund.
Sree also comment on my overall portfolio:
I have direct investments using SIP in below funds from last 2 years. Investemnts are for 18 years.
2. Axis long term equity: 4K/m – I read in many blogs that from last 1 years Axis LTE performance has gone down. But I feel it is recovering slowly and I will continue with this fund. DO you recommend any changes..
3. HDFC balanced: 2.5K/m
4. Mirae asset emerging bluechip: 3k/m
Request you to provide comments on point 1 and 2.
Sree, do i need to add one large cap fund in my portfolio. I always feel that having a multicap in portfolio is covers the requirement of large cap.. Please suggest me 1 large cap fund along with your views as I am doing annual review of my investments..
Dear Mukul,
I dont think any fund will remain as a 5 star pick or top 1 place forever, we need to see whether it is consistent over the last many years/different market cycles etc., We cant keep on churning our portfolio every year. Personally, I have made investments in Axis LTE and continuing with them. Let’s track this fund for some more time.
Yes, if you observe many of the multi-cap funds have now higher allocation to Large cap stocks, its the duty of the active Fund manager to implement an investment strategy which benefits the fund investors as per current market conditions. So multi-caps can serve the purpose.
Hello Sree,
Thankyou for your time and responding queries.
I agree with you and want to learn from your experience. Refering to first paragraph, do you mean that I should continue with investments in ICICI pru value discovery keeping a long term view.
Mukul
Hello Sreekanth,
Considering the mediocre performance of Tata balanced fund in the last 1-2 years is it advisable to exit or should one give it some more time say around a year and then take a call.
Thanks and regards,
Roy
Dear Roy,
There has been a change of fund manager(s) for this fund.
I agree that its performance has been AVERAGE for the last 1- 2 years.
Personally, I would give it one more year before taking a decision.
Hey Sreekanth ,
I want to know whether will there be any difference in these 2 cases !!
Case 1: Automatic SIP on 7th every Month in XYZ fund
Case2: Monthly Purchase of Units (equivalent amount as that of SIP) on 7th of every month in same XYZ fund
Though it looks a silly question but i am a bit confused.
My bank support direct purchase but not support SIP.
Dear Bharat,
Nothing much..
However, if you are investing manually, you need to make sure you invest before the cut-off time to get that day’s NAV for your investment(s).
Also, watch out for any service fee charged by your banker.
May I know if you are aware of Direct plans of mutual funds?
Hey Sreekanth , Thanks for such a fast reply
I am aware of Direct plan (Read from your blog some few weeks ago)
I am investing in Direct Plan only.
The problem was my bank do not support Auto SIP. It support puchases.
Where can i check service fee ?
Dear Bharat,
Is your bank allowing investments in Direct plan?
Service Fee (if any) – can be checked with your banker..
Thanks Sreekanth.Have a nice day.
Good morning Sreekanth.Thank you for your suggestion.
I have recently started 2 SIP Plans for long term (10 years)
1. MIRAE ASSET EMERGING BLUECHIP FUND – REGULAR PLAN GROWTH- 5000 per month
2.SBI Blue Chip Fund – Direct Plan – Growth- 4000 per month
Please suggest one more SIP Plan.
Dear Prince.. You may consider either one diversified equity fund (or) one equity oriented balanced fund.
Ex : Franklin High growth companies fund or HDFC Balanced fund.
Thanks
Hi Sreekanth,
current portfolio
Axis long term equity fund 2000
SBI Blue Chip fund direct plan – growth-5000
Mirae asset emerging blue chip fund- 5000
Reliance tax saver-5000
I want to invest another 3000 thousand. Please suggest.
Dear Sandeep ..May I know your investment objective(s) and time-frame??
Looking for long term investment 10 years from now.
1) Axis long term equity fund 2000 ( SIP started in Feb 2016 for 5 years)
2) SBI Blue Chip fund direct plan – growth-5000 ( SIP Started in July 2017 for 10 years)
3) Mirae asset emerging blue chip fund- 5000 ( SIP started in June 2017 for 5 years)
4) Reliance tax saver-5000 ( SIP started in July 2017 for 3 years)
Dear Sandeep ..How about adding one equity oriented balanced fund?
Hi Sreeknath,
Can you suggest which one to pick among below 3
HDFC Balanced Fund
ICICI Prudential Balanced Fund
L&T India Prudence Fund
Dear Sandeep,
Tough to pick one among these three…Personally, I hold HDFC balanced fund.
Kindly read : How to pick right mutual fund schemes?
Dear,
I have invested in TATA Balanced fund direct Growth, and after 18 months of SIP i am not satisfied with returns. so i planned to switch to another equity fund in same AMC. My question is…
If i switched all units…will this transferred in lumpsum method(by latest NAV) OR in respective NAV which i was invested for last 18 months SIP date??
Pls advice….
Dear subbiah,
If you redeem all the units in a day, that particular days NAV is applicable as sale price (provided you redeem before cut off time, generally before 1-3 pm).
If you make a partial redemption, the units will be redeemed as ‘first-in-first-out’ basis.
Kindly read :
MF taxation rules..
Thanks for your kind reply…….
Instead of investing in new equity fund… can i buy Bitcoin in SIP method? Pls advice. Zebpay & coinsecure provides this facility. i can bear medium risk. In future(say 8-10Yrs) is it worth full???
Dear subbiah ..As of now, I cant comment on Bitcoin as an investment..
OK ji… thanks
Hi Sree!
Hope u r doing well!My present investments are as follows:
SIP
Franklin india prima plus growth direct-5000/pm
Franklin’s india smaller companies fund direct-4000/pm
Pf-15000/pm
Post office rd-5000/pm
Now I wish to invest further total 10000 per month in equity mf devided in 2 sip,duration- 10+ yrs and 3-5 yrs.My plan is as below:
HDFC balanced fund-4000 pm-3-5yrs
Icici Pru focussed blue chip /frankline ind blue chip fund or
Any other large cap fund- 6000/pm-10+yrs
Kindly give ur valuable advice about my overall portfolio and new investments.
Waiting for your feedback.
Dear Shekhar,
The listed funds are good ones.
You may go ahead with HDFC balanced fund.You may pick ICICI Focused or SBI Bluechip fund.
Any specific objective for saving in PO RD?
Thanks for quick response.It is 5yrs Rd & is giving 8.5% safe return.which I feel is better than investing in debt fund.
I will go with icici focussed blue chip fund for large cap mf.
With Regards,
Shekhar
I am having this portfolio from last 2 years and they have given decent returns.
SIP BSL Frontline – 2000pm
SIP HDFC MidCap Opportunity Fund (G)Direct – 1000pm
I want to invest in 2 more SIPs of 2000 each. What would be a good choice.
Also I want to go for ELSS with SIP of 11000 pm. So will it be better to go for 2 SIPs or only single SIP of 11000pm ?
Dear Bharat ..May I know your investment objective(s) and time-frame?
Kindly read :
How to pick right mutual fund schemes?
Best ELSS Funds FY 2017-18
There is not any specific objective. Time frame is around 15-20 Years.
Only want to shift the money from Bank Account to different areas
Dear Bharat,
You may add one Diversified equity fund like Franklin High growth Cos fund / ICICI Valuediscovery and one Equity oriented balanced fund like HDFC balanced fund .
Kindly read : Best Balanced funds.
Dear Sreekanth
Thank you so much !!
One more Query
My father invested 10000 in RELIANCE VISION FUND – GROWTH PLAN in 2013. Its current valuation is around 28000. Should i exit now or should continue on it !!
*2009
Dear Bharat.. He may switch to some other Large-cap fund like SBI Bluechip or Birla Frontline equity etc., (assuming he has a long-term view)..
My twins son is two and half years old. I would like to create a corpus of Rs. 1 crore for both education when he attains the age of 18 years. Please suggest a fund scheme/Policy that can yield good returns to reach the goal and tax saving. I would like to go for a ELSS Mutual Fund SIP . How much should I invest in through SIP and what is the procedure?which policy is better.
Dear Sanjay,
Your plan of investing in Equity mutual funds is a good decision. You may kindly avoid buying life insurance plans for investment purposes.
Kindly read :
Kid’s education goal planning
Best ELSS Funds
Best Equity funds
How to pick right mutual fund schemes?
By the by, do you have adequate life insurance cover?
Dear sree,
1) I opened a PPF A/c in 2005 in SBI bank…..After that i became a NRI from 2007… but still i am investing in PPF A/c every month. can NRI invest in Exist PPF A/c? Is this allowed?
somebody told NRI cann’t invest in PPF A/c. some one told NRI can invest Existing PPF A/c up to maturity.
Pls advice. My both Accounts in same SBI branch.
2) I also invested in mutual funds by Direct options in Franklin India , ICICI AMC. when invest i didn’t mention as NRI. I m not paying any tax in abroad (qatar). Is it necessary to change my status as NRI? If yes , how can change?
3) NRI can invest(online banking) by NRE A/c only or any savings A/c?
your advice will be very valuable……..
Dear subbiah,
1 – Yes, NRIs can continue contributing to existing PPF accounts (opened when Residential status was Resident Indian).
But, kindly note that extension of PPF a/c after 15 years is not allowed. You may kindly go through this useful link..
2 – Yes, you need to update your residential status with AMCs. You can submit new CKYC form.
3 – Normal savings account should be converted to NRE/NRO accounts, cant be maintained by NRIs..
Thanks for your reply….
But if i investing (online platform) through NRE A/c ….how can get redemption as local currency credit in NRE A/C is not possible?.
Dear Subbiah,
Amount will be paid in local currency and then need to be exchanged into foreign currency.
Redemption proceeds (after deduction of taxes) are paid in rupees by cheque to the account number provided. Some banks also offer direct credit of redemption proceeds to the NRE/NRO account.
If investments are made on non repatriable basis, redemption proceeds shall be credited to NRO account
You may find more information here… NRIs & MFS – FAQs
Hi Sreekanth,
Thanks for your valuable suggestions.
I am investing in HDFC Top200 G (monthly SIP Rs.2000/-) for last five years. This month, I received mail from HDFC that, I need to take Investment Services Account (ISA) if want to continue.
My query:
1. Is ISA (Investment Services Account) necessary and will it helpful with HDFC? (My salary account is ICICI)
2. Shall I continue SIP with HDFC Top 200 fund? or
3. Shall I stop HDFC and start Mirae emerging blue chip fund which i found good returns comparatively?
4. If I need to stop HDFC top 200, shall I take out money and invest in new fund or can i hold whatever accumulated so far in same fund for some time?
Please help,
Thanks in Advance.
Dear Mahesh,
Are you investing through HDFC bank?
I think HDFC bank charges few hundreds rupees (around Rs 200) per quarter to maintain ISA, and I dont think they offer Direct plans of Mutual Fund schemes.
Kindly read :
What are Direct plans of MFs?
Regular Vs Direct plans
Dear Sreekanth
First of I want to Thank you for this initiative. It is really helpful.
My age is 29 years & I’m married. My current portfolio is mentioned below, Kindly review it
1: HDFC TOP 200 (50K lumpsum investment in 2010)
2: Reliance Growth Fund (50K lumpsum investment in 2010)
3: IDFC Premier Equity Fund (Monthly SIP of Rs 2500 ongoing since 2010)
4: ICICI Prudential Value Discovery Fund (Monthly SIP of Rs 2500 ongoing since 2010)
5: AXIS Long Term Equity Fund ( ELSS 30K investment)
6: Franklin India Taxshield (ELSS 50K investment)
7: DSP BlackRock Tax Saver (ELSS 30K investment)
My queries are:
1. Do I need to change fund amount in any of the above funds or discontinue any?
2: Suggest me couple of more funds for long term investing.
Thanks in advance.
Dear Yatin,
Are you satisfied with the performances of 1, 2 & 3 funds?
Appreciate your long term view …
4,5,6 & 7 are more or less like Multi-cap funds (though 5,6, & 7 are ELSS funds). So, you may check their portfolios overlap and may trim down the number here.
You may consider adding one Balanced fund and one Small cap fund to your portfolio.
Hello Sreekanth
Thanks for sharing portfolio overlap comparison tools.
Well Funds 1 & 2 are showing CAGR of 12% approx. While IDFC one, is giving XIRR of approx 18.5 %
Should I redeem any of these funds ? What do you reckon ?
Thanks & Regards
P.S Please share, if you have any article on calculating returns on mutual fund investments.
Dear Yatin,
As these are lump sum investments, if you are happy with the returns, you may hold on to them.
In case, planning to invest (afresh) or through SIPs, you may add on balanced fund, and continue with Franklin Tax shiled (for tax saving), and can add one mid-cap fund.
Kindly read :
Five formulas to calculate Investment returns
How to calculate XIRR
Hi,
Thank you for enlightening the fin literacy.
I have SIP of 3000 pm in ICICI pru value disc (D) last 18 months, somehow it makes me that it is not performing as expected. Is it good idea to shift into Motilalal Oswal most focused 35 (D) or Kotak select focus. Please suggest me if any other fund is there.
Regards
Ram
Dear Rama,
No fund can be a star performer year or year..we need to look at the consistency in its performance for the last many years.
The mentioned funds may not also be a star performers say after 1 year.
You may give some more time before you make a switch..
Below is the extract of Analysis done by Valueresearchonline on this fund :
A fund that follows the contrarian style of investing, it is a top-of-mind choice in the multi-cap category. Having climbed to a four-star rating way back in 2009, it has held onto a four- or five-star rating since then. It has enjoyed a five-star rating in the last one year.
Despite its label, the fund doesn’t hunt for deep-value stocks but for stocks that have growth potential and are trading at a discount to their intrinsic value. The parameters used to measure value are price-to-book value and relative market capitalisation. The fund is market-cap agnostic.
From a high mid-cap exposure a year ago, the fund has raised large-cap bets to 75-80 per cent of the portfolio in the last few months due to more attractive valuations in this space. Mid-cap bets have been moderated from above 40 per cent to 20 per cent. This has probably helped the fund contain losses well during the recent market correction.
This fund has one of the best records in its category in the last five years, beating its benchmark as well as the peers. The fund’s three- and five-year returns are 9-11 percentage points ahead of that of the benchmark and about 6 percentage points ahead of that of the category average.
Popularity has seen its asset size burgeon to over Rs 15,000 crore. This seems to have led to a large-cap tilt in its portfolio choices. But the fund’s multi-cap approach ensures that it doesn’t have to dilute its contrarian mandate in order to manage a larger fund size.
Dear Sir,
I wish to gift about 50 lacs each to my two grand kids, aged 6 & 2 years, for their higher studies after 15 and 20 years respectively.
Every time, the mutual fund experts suggest to review the performance of each scheme of fund house at the interval of each year. This exercise is very difficult for me to continue for 15/ 20 years each year.
As per my following calculation with conservative 12 % yearly return, I need only three SIP schemes of any Mutual Fund house. I therefore request to please suggest me maximum three names of schemes of any Mutual Fund house. I can invest 15000/ on monthly basis. (SIP schemes should be pure equity portfolio scheme)
5000x15yearsx12%return=investment (900000) +interest (1597901) =total maturity2497901
5000x 20 years x 12% return= investment (1200000) +interest (3746277) =total maturity 4946277
Please reply me on my mail id.
Thanks.
Ashok
Mob 94570765**
Dear Ashok Ji,
Kindly note that the returns are guarenteed on mutual funds.
Also, the performance of funds may vary over longer period, hence the requirement of continuous monitoring is advised.
You may take the service of any trusted mutual fund adviser or fee only financial planner.
If you insist me to short list few funds, you may consider balanced fund like HDFC balanced fund, Large cap like Birla Frontline equity, Diversified funds like Franklin Prima plus / ICICI Value discovery, Mid-cap like HDFC Mid cap opp fund etc.,
Suggested reading : How to pick right mutual fund scheme?
Hi Sree,
Value research has reduced rating from 4 star to 3 star for UTI mid cap fund.
I started investment(SIP) in UTI mid cap in 2015. Now the fund performance is also average.. Do you suggest to stop investment in this fund and switch to other mid cap fund.
My other investments are in ICICI pru val disc, Axis LTE, HDFC Balanced.
Dear Mukul,
Yes, the performance has not been upto the mark after the change of Fund manager.
You may discontinue your future investments and divert them to may be HDFC mid cap or Mira Emerging bluechip or Franklin prima fund.
HI Sree,
This is the first time I will be doing STP/redemption of units form a mutual fund. So need your advise:
UTI mid cap does not provide STP option. One can redeem(SWP) units only.
Load structure is:
Exit Load Comments: Exit load of 1% if redeemed less than 1 year
CDSC (in %): 1.00
What is CDSC. I googled it found that “A contingent deferred sales charge (CDSC) is a fee (sales charge or load) that mutual fund investors pay when selling Class-B fund shares within a specified number of years of the date on which they were originally purchased. This is also known as a “back-end load” or “sales charge”.”
Units which are purchased 1 year before are CDSC charges applicable on that??
Dear Mukul,
Kindly note that STP can be set between the funds which belong to same fund house only.
What I meant was..you may stop future SIPs in this fund and invest those in the other suggested funds.
I dont think CDSC charges are applicable, however 1% exit load is applicable if units are redeemed within an year.
Dear Sir,
Good morning. After a long time I am writing to you. I am looking for a good STP plan immediately. From different websites I got the following plans:
1. From BSL CASH MANAGER (G) to BSL FRONTLINE EQ.
2. From HDFC HIGH INT. SHORT TERM PLAN to HDFC TOP 200 OR HDFC EQ.
Now I need your help to make a decision and if you suggest any other plans, that is also welcome.
Have a nice day and enjoy.
Dear KAUSHIKI .. Do you currently hold any other MFs?
DEAR SIR,
MANY THANKS FOR YOUR EARLY REPLY. PRESENTLY I HAVE THE FOLLOWING SIP.
AXIS EQ FUND DP (G), AXIS LONG TERM EQ PLAN DP (G), IDFC PREMIER EQ FUND DP (G) & ICICI BALANCED ADV. FUND.
Dear KAUSHIKI .. IDFC premier has not been performing that well offlate.
You may consider STP from HDFC liquid fund to HDFC mid-cap fund (and may discontinue IDFC SIPs, which is a mid-cap fund).
You may consider Birla Funds for STP.
HI Sreekanth
I have a FD of Rs 5 lakh which is about to mature and i do not need this fund for next 2.5 years. Please suggest which debt or liquid fund i should invest to have a good return along with safety. shall i keep 50% in FD and rest in fund?
Dear Sameer,
Kindly note that even debt funds have some risk associated with them and returns are not guaranteed.
You may consider a short term debt fund + Arbitrage fund.
Ex : Franklin low duration fund + ICICI Equity arbitrage fund.
Hi Sreekanth
First of I want to say Thanks a ton for such an informative post.
My age is 26 and I’m a software engineer. I want to invest per month 10k rupees in mutual funds through sip and 1 lakh as lumpsum there fore please guide me how should I update my current portfolio. My current portfolio is mentioned below
1. DSPBR Tax Saver Direct-G – lumpsum 5krupeess
2. ICICI Pru Value Discovery Direct-G – lumpsum 11k rupees and sip 2k
3. Kotak Select Focus Direct-G – lumpsum 15k rupees and sip 1k
4. Reliance Small Cap Direct-G – lumpsum 5k
5. SBI Bluechip Direct-G – lumpsum 10k rupees and sip 2k
6. Mirae Asset Emerging Bluechip Fund – Direct Plan- Sip 1K
And one more query is How much part of income one should invest in mutual fund for moderate risk investor.
How can I achieve diversification in my portfolio
Dear Anuj,
How much to invest? – It depends on your financial goals. May I know about them? May I know your investment horizon?
Kindly read : Retirement goal planning and calculator
Your portfolio is fine, you may continue with your investments.
Suggested readings :
How to create a solid investment plan?
How to pick right mutual fund schemes?
MF portfolio overlap checking tools
I am Rama,
I am grateful to your valuable info.
I have 50 K to invest in MF for 10 years. Please suggest 2 or 3 good funds which can give 20+ CAGR returns.
I have few in my mind as given beow, pls suggest.
1. ICICI balanced – 25K
2. SBI pharma fund 15 K (reason: pharma is now at low valuation)
3. Suggest one small cap or any other. Just to inform you I am doing SIP of 15K.
Pls suggest me.
Regards
Rama.
Dear ramakrishna,
May I know the details (scheme names) of your existing mutual funds?
Kindly note that returns are not guaranteed on MFs.
Thank you for the info.
I am fully aware of the risk involved in MFs.
My personal SIP are 1. Rel small cap, Sundaram select mid cap, ICICI value disc, SBI multicap, Kotak select focus fund, Rel regular savings fund. The SIP in each is 2k except ICICI which is 3k.
Just to inform you that this 50K is my wife’s money, her brother gifted. She wanted to multiply in MF’s in long term. please suggest.
Regards
Rama.
Dear Rama,
You may consider investing in an equity oriented balanced fund.
Hiii Sreekanth,
Pls advise SIP for one Midcap and one Diversified fund for 10+ year horizon
I am new investor in SIP and having below 3 SIP in my portfolio,
Birla Sunlife Frontlife equitiy – 4k
HDFC balanced fund – 4k
Franklin India Smaller companies fund- 3k
Dear Aakash,
You may consider HDFC mid-cap or Mirae Emerging blue chip
And
Franklin High Growth companies / ICICI Value discovery fund.
Kindly read :
How to select right mutual fund schemes?
Hello Sir,
I am investing in UTI equity and UTI mid cap as per your suggestion in 2016 best fund(total 6 fund).
Now the performance of the these fund is not that much good.
Can you please advise what to do with these fund..shall i switch to other fund or hold some more time for these two fund. If i have to switch then shall i do the whole amount as one short lumpsum or do STP for 5-6 month.
Please advice
Thanks & regards
Rajesh
Dear Rajesh,
Do you hold any other schemes in your MF portfolio?
May I know your investment horizon?
Hello Sir,
i am also investing in icici focused blue chip, HDFC balance fund, Franklin small company fund and ICICI VALUE DISCOVERY fund apart from UTI mid cap and UTI equity fund.
My investment horizon is 10 year.
Please suggest about UTI mid cap and UTI equity fund.
Thanks & regards
Rajesh
Dear Rajesh,
You may switch the existing units of UTI equity to ICICI bluechip & HDFC balanced fund.
You may discontinue your future investments in UTI mid-cap and hold on to existing units.
HI Sreekanth
I have been reading you blogs contents which are very useful and easy to understand, after going through various article on how to invest in MF. I have identified my goals are long term and planning to start sip for Rs 25000 monthly to achieve them.
1-child higher education – 10 yrs
2-Retriment planning -17 years
3-Daughter Marriage-20
I have identified below MF.Please sugget me with mf selection or should i add another fund or delete any one of them
Mirae Asset India Opportunities Fund-Reg(G) -RS 4000
sbi blue chip fund -RS4000
Kotak Select Focus Fund(G) -RS4000
Franklin Prima plus fund -RS4000
HDFC Balanced Fund(G)-RS4000
HDFC Mid-cap fund -RS 2000
Franklin Smaller Companies fund -RS2000
Thanks
Sameer
Dear Sameer,
Thank you for following my blog posts!
Your portfolio looks fine. For a 20 year goal, you may allocate higher SIP amount to mid / diversified funds. For a 10 year goal, may be higher SIP amounts for Balanced & diversified funds.
Kindly read :
How to pick right mutual funds schemes?
MF portfolio overlap analysis tools
200 Day moving average – how to use to in MF buying decisions?
Hello Sreekanth,
I am thinking to invest a lumpsum amount of 1 lac in Franklin Build India Direct fund Growth(Thematic-infrastructure) and start a SIP of 2500/- for a period of 5 years.
It is said that there is so much growth expected in this sector as Govt. is quite focused toward infrastructure.
Request you to please advise on the same.
Dear Jitendra,
Do you currently hold any other mutual fund schemes in your portfolio?
Hi Sreekanth,
Yes, I have below ongoing investment from past 2 years. All thanks to you as below portfolio is created based on recommendation and suggestion.
My investment time horizon is 7 to 8 Years.
Below are the details of current portfolio.
HDFC equity fund Direct Plan Growth – 2000
HDFC Balanced fund Direct Plan Growth – 1500
Franklin India smaller companies fund Direct Plan Growth – 2500
Birla sunlife frontline equity fund Direct Plan Growth – 2000
Franklin India Prima Plus Direct Plan Growth – 2000
Birla Sun Life MIP II -Wealth 25 Plan – 1 lac ( in lumpsum from July 2016)
And last month I have added below funds via SIP in my portfolio after discussing the same with you on 6th july last month.
Reliance Small cap fund growth Direct Plan – 3000
Mirae emerging bluechip fund growth Direct Plan – 2000
Dear Jitendra,
All the listed funds are good ones. Hope you have checked their portfolios overlap.. especially schemes from same fund categories..
I am very sure that most of these funds would have good exposure to infrastructure companies in their portfolio, which makes me believe that it may not be required to add one more fund (thematic) to your portfolio. You may allocate the corpus to your existing funds itself.
I need your suggestion about my investments in Mutual fund.
My investment horizon is for more than 10 years.
At present i am investing below funds since 2014
RELIANCE EQUITY OPPORTUNITIES FUND – DIRECT GROWTH PLAN GROWTH OPTION- 2500
ICICI Prudential Foused Blue Chip – DIRECT GROWTH PLAN GROWTH OPTION – 5000
Birla SL Frontline Equity fund – DIRECT GROWTH PLAN GROWTH OPTION – 5000
Mirae Asset Emerging Bluechip Fund – DIRECT GROWTH PLAN GROWTH OPTION – 5000
Could you please review and let me know your suggestions :
Whether I should let go off RELIANCE EQUITY OPPORTUNITIES FUND ? As its not performing well .
Also, I want to increase my monthly investments 2500 to make it 20000 each month.
Can you suggest if I need to buy new funds or distribute that extra amount in the funds that I am already investing in?
Dear Nishant,
Except Reliance fund, the other three are decent performers.
You may consider to replace it with another Multi-cap alterntive, Ex : Franklin High Growth Cos fund.
Dear Sreekanth ,
Thanks for your advise.
I will stop SIP Reliance fund . Please advise if I should come out of all my investment in Reliance fund ( Approx 2.5 Lakh )and invest as lump sum in SBI Blue chip fund or keep it invested for some more time in Reliance fund only.
I am selecting another Large cap fund as my investment horizon is for more than 10 years.
Please advise , if this approach is OK.
Dear Nishant,
As you have a long time frame, may be a multi-cap fund is good, you already have one large cap fund.
You may switch totally from reliance fund. Kindly be aware of taxes (if any).
Read : Mutual fund taxation rules..
Hi Sreekanth,
Thanks for sharing your expertise with us. i have done similar mistakes when
my career starting in terms of finacial planning. ex :trading with out much reseach ,
intraday trading, buying ulip policies and lic jeevan anand policies.
after burning my fingers with share market in 2007, i came out completely from shares.
here i have one question that my jeevan anand policy started in 2006, already 10 years are over.
tenure for policy is 18 years, premium is 36000 per annum.
My current assets:
50 laksh in property, 20 laksh in PPF.
and 36000 per annum for jeevan anand policy.
now a days, i am doing calculations and moving towards equity plans now , is it ok to cancel the jeevan anand policy?
Thanks
siv
Dear Siv,
You may make it a PAID-UP policy.
Kindly read : How to get rid off unwanted life insurance policy?
Do you have Term insurance plan with adequate life cover?
Hi Sreekanth,
Thanks for your suggestion. Yes i do have life cover.
Thanks
siv
Dear Sreekanth,
Can you advise name of some portals
1) For purchase of direct funds
2) Who charge on a fixed or nominal basis
3) Where there are options for STP and VTP
I am presently invested with Fundsindia, they have STP as well as VTP, but does not have Direct MF’s.
It is difficult to get a platform with all three above.
Dear Saikat,
Kindly read go through this article..
I invest in mutual fund through my share broker.can I invest as DIRET?
Dear Dr Prabir .. Kindly go through this article ..
Hi,
I have invested from July 2017 onwards in Monthly SIPs in the below funds. Could you please review and let me know your suggestions, whether I should let go off few funds?
Birla Sun Life Midcap Fund Growth Direct Plan – 2000
ICICI Prudential Value Discovery Fund Growth Direct Plan – 1500
Mirae Asset India Opportunities Fund Growth Direct Plan – 2000
DSP Black Rock Opportunities Fund Growth Direct Plan – 2500
SBI Blue Chip Fund Growth Direct Plan – 2000
IDFC Super Saver Income Fund Short Term Growth Direct Plan – 1000
Reliance Dynamic Bond Fund Growth Direct Plan – 500
DSP Black Rock Income Opportunities Fund Growth Direct Plan – 500
ICICI Prudential Flexible Income Plan Growth Direct Plan – 1000
HDFC Gold Fund Growth Direct Plan – 500
Motilal Oswal MOSt Focused Multicap 35 Fund Growth Direct Plan – 1500
Franklin India Smaller Companies Fund Growth Direct Plan – 1500
Also, I want to increase my monthly investments by 14500 to make it 30000 each month. Can you suggest if I need to buy new funds or distribute that extra amount in the funds that I am already investing in?
Dear Ragini,
Investing in too many funds may not be really beneficial. May I know your investment time-frame??
Suggest you to kindly go through these articles :
MF portfolio overlap analysis tools
How to pick right mutual fund scheme?
What are large/mid/small cap fund categories?
Time frame is 10 years.
Dear Ragini,
You may retain couple of diversified equity funds, one large cap fund, mid and small cap funds and also debt funds.
For ex: ICICI value discovery, Motilal 35, SBI bluechip fund, Franklin Smaller cos fund.
You may invest additional amount in the existing funds itself.
I am planning to discontinue the below funds and invest that amount in other funds.
IDFC Super Saver Income Fund Short Term Growth Direct Plan – 1000
Reliance Dynamic Bond Fund Growth Direct Plan – 500
DSP Black Rock Income Opportunities Fund Growth Direct Plan – 500
ICICI Prudential Flexible Income Plan Growth Direct Plan – 1000
HDFC Gold Fund Growth Direct Plan – 500
Please let me know if this approach is good.
Dear Ragini,
These are primarily Debt oriented funds (except Gold fund).
Do you have investments in any other debt oriented schemes, life PPF etc?
You may consider adding one Balanced fund..
Yes, I am making investments (Monthly ~5K) in PPF
Dear Ragini ..If so, you may switch from debt funds to equity funds. But be aware of any exit load and tax implications..
Kindly read: MF taxation rules..
Hello Sir,
I have started to follow your article from past 2 years and accordingly created my portfolio.
My investment time horizon is 7 to 8 Years.
Below are the details of current portfolio.
HDFC equity fund Direct Plan Growth – 2000
HDFC Balanced fund Direct Plan Growth – 1500
Franklin India smaller companies fund Direct Plan Growth – 2500
Birla sunlife frontline equity fund Direct Plan Growth – 2000
Franklin India Prima Plus Direct Plan Growth – 2000
And a month ago I have added Reliance small cap fund for 3000 and Mirae emerging bluechip fund for 2000 via SIP.
Now after going through some online forum I am under impression this is not correct time to invest or start new SIP specially in small and mid cap sector as market currently at its peak.
Even current benchmarks of these 2 funds are quite high against its 200 days moving average.
It will be great if you advise me whether I should continue or stop these 2 newly started SIP and wait for right time to start it again?
Dear Jitendra ..As your investment time-frame is long-term, you may go ahead with your investment plan.
Kindly read :
MF portfolio overlap analysis tools
How to pick right mutual fund scheme?
Hi Sree
My investment portfolio is as below:
SBI BLUE chip fund direct plan growth 2000 pm
SBI Magnum Global fund 2000 pm
Franklin India smaller cos. fund Direct Plan Growth 2000 PM
These are running for almost 3 years. I am not happy with SBI Magnum Global fund as the returns are low compared to other.
Could you please advise whether I should continue with same or
Switch to some other fund.
Also I want to start other investment for 6000 pm. Kindly suggest few funds. My horizon is long term and ready to take risks.
Dear Ankit ..You may include on Diversified fund in place of Global fund.
You may also consider adding one Equity balanced fund.
Hi Sree
Thanks for your advise.
1. I will change SBI Global fund with L&T value fund. Please advise if I should come out of all my investment in sbi global fund and invest as lump sum in some other fund or keep it invested for some more time in sbi global fund only.
2. Also I shortlisted DSP BR Micro Cap fund and Mirae asset emerging BLUE chip fund for further investment. I will add equity Balanced fund in my portfolio in next year. Please share your views on above selected funds.
3. Also I have some 50k in my daughter’s account which I want to invest in some very low risk area for next 5 years or so. Can you suggest where I can invest these.
Thanks for your response
Regards
Ankit
Dear Ankit,
1 – You may redeem then in few installments and switch to better performing fund. Be aware of tax implications (if any).
2 – Fresh investments have been temporarily suspended in DSP micro fund..you may consider Franklin smaller cos fund.
3 – In mutul funds?? If so, you may consider investing in a Conservative MIP Fund.
Hi Sree
I already have an existing SIP of 2000 pm in Franklin Smaller Co. Fund. Shall I increase the amount. Is there any other small cam fund which you may recommend.
Dear Ankit ..You may increase the allocation to Mirea fund & Franklin Smaller fund..if you are investing for longer period
Hi Shree,
Can you help us guide with your thoughts on Index Fund VS Mutual funds.
Should Expense Ratio be the only factor to consider? Does MF’s outform Index funds over long term? Which investment option will give better ROI(considering Expense ratio & Gain/Return factors).
PS: I am current invested in MF.
Dear Sonali,
Kindly note that an Index fund is also a type of mutual fund.
Suggest you to kindly go through this article…
Dear Sreekanth,
I am investing in mutual funds from last 2 years & my current portfolio is as follows: ( All are SIP’s monthly)
1. HDFC Mid-cap – 3000
2. DSP BR Micro Cap – 3000
3. Axis LTE – 3000
4. DSP BR Tax Saver – 3000
5. BSL Small & Mid-cap – 3000
6. BSL Banking & Finance – 3000
7. BSL Cash Manager – 100000 emergency fund
I don’t have any problem with more allocation to small & mid-cap as I can take high risk as my time horizon is more than 15 years. Please review my portfolio & suggest if any changes to be done.
Please suggest 1 fund between BSL Small & Mid-cap and L&T emerging businesses…
Thanks,
Nitin
Dear Nitin,
Considering your risk profile and investment time-frame, you may continue with your investment plan (which is very aggressive..).
Dear Sree,
Thanks for your immediate response.
I have few points regarding my investments.
1. From last 1 year Axis Long Term Equity is not giving expected returns as compare to its previous track record. Even it is lagging behind from peers. Should I stay invested or switch to other fund.?
If switch, then what fund you suggest except Franklin.?
2. Please suggest 1 fund between L&T Emerging Businesses & BSL Small & Mid-Cap. Time Horizon 10years.
3. As mentioned in my previous post I keep my emergency fund/SB account fund in BSL Cash Manager which is Debt Ultra short term oriented fund. I frequently redeem required amount from this. Is it ok to do the same and is there any tax on this.?
Thanks,
Nitin
Dear Nitin,
1 – Personally, I have investments in Axis LTE fund and continuing with my investments this FY too. It is still one of the consistent performing fund though it is not up to its mark offlate. I believe no fund will remain in the top quartile of performance for long period, advisable not to churn porftolio frequently. I will track its performance for some more time before switching to other ELSS fund.
2 – If you would like to invest in a small cap fund then may be you can consider Franklin Smaller cos fund.
3 – Yes, tax rules related to debt fund are applicable. Kindly read : MF taxation rules..
Dear Sir,
First of all I want to say big thank you to you for this beautiful portal.
1. Agreed Sir..
2. As you suggested Franklin (I) smaller companies My concern on this fund is only that asset size of this fund is very high (>4000Cr), Is it right bet to invest in this.? Is there any effect in returns investing in large size fund.
Please suggest why should I do not go with L&T emerging as It is a top trending fund these days with good portfolio…
3. Thanks for sharing nice article.
Thanks,
Nitin
Dear Nitin,
Franklin Smaller cos fund, and I generally do not get really worried at large AUM size.
L&T emerging fund is also a decent pick. But its risk grade and return grade are AVERAGE.
Hi, Sreekanth, Thank you for educating us on Fin Literacy.
I have a SIP of Rs. 2000 pm in Rel small cap since 3 years, it is showing ~30 CAGR return. Is it good idea to redeem of first 2 years along with profit and shift it into safer balanced funds like icici balanced (D) or any other balanced. Is it good to shift it into axis dynamic equity fund?
My plan is to shift the money into safer funds if I get 30 CAGR from any of my SIPS. by the way I have SIP in rel. regular savings fund also.
Needless to say your advice gives greatdifference to me. Thank you. Rama.
Dear ramakrishna,
This is primarily referred to as ‘portfolio rebalancing’.
May I know your investment horizon? (is this investment targeted towards any of your long term goals?)
Thank you for the reply.
My investment horizon is long term 10 to 15 years for wealth generation for my kids higher education etc.,. The point is 30 % CAGR is good and any way I wish to put in less risky funds.
Thanks!
Dear ramakrishna,
Ok.
Suggested readings :
Kid’s education goal planning
Hello Sreekanth ,
Thank you for such a nice details and your feedback for questions. Please have look into my profile for long term (10 -13 years) and suggest ,
DSP BLACK rock -Tax saver G-2500
Sundaram Rural fund G – 2500
Reliance small cap G – 2500
ICICI Prudential value discovery fund G -2500
HDFC Midcap opp fund G – 2500
Franklin India smaller companies G -2500
Dear Sourav ..You may continue with your investments, looks ok.
Suggested readings :
MF portfolio overlap analysis tools
How to pick right mutual fund scheme?
Thanks Sree sir ! If you have to alter any one from the above list, which one will you choose and replace with which MF scheme?
Advice please.
Dear Sourav ..I may replace Sundaram fund with an equity oriented balanced fund.
Dear Sreekanth,
Can you please have a look how is my portfolio.
1.Axis Long Term(ELSS), monthly SIP: Rs.1000
2.DSP BlackRock Tax Saver(ELSS) monthly SIP: Rs.2000
3.Birla Sun life Tax Relief’96(ELSS) monthly SIP: Rs.1000
4.Reliance Tax Saver Plan (ELSS) monthly SIP: Rs.1000
5.Mirae Asset Emerging Bluechip Fund Direct Growth monthly SIP: Rs.3000
6.HDFC MIDCAP Opportunity monthly SIP: Rs.2000
7.Reliance Smallcap Fund monthly SIP: Rs.2000
8.Kotak select focus monthly SIP: Rs.2000
All the above funds are direct growth.
The above total monthly SIP amount is: Rs. 14000. But I want to invest around 30k total in monthly SIP, so can I include some more funds?
And also I want to invest 5L amount in lumpsum. Could you please suggest some funds for lumpsum invest.
Thanks,
Rahul
Dear Rahul,
All most all the listed funds are good ones.
But investing in too many funds may not be really beneficial.
Kindly check portfolio overlap among these funds (especially ELSS ones).
Kindly read :
MF portfolio overlap analysis tools
How to pick right mutual fund scheme?
Best ELSS funds
I want to make corpus of 50 lakh for my first child for higher education in 10 years, and 2.5 crore corpus for retirement in 15 years. Can you suggest me suitable mutual fund? I am willing to take high risk as my time horizon is more then 10 years. Presently, I have 70 lakhs in bank FD and post office.
Recently, I have registered in MFU to invest in direct plan growth of any fund.
Please suggest me.
Also, I have recently invested 25 lakh in direct stock through demat account. Also, suggest me proper investment for my second child which born one month ago please.
Dear Nitinkumar,
May I know if you have adequate life insurance cover (for self) and health insurance cover (for family)?
Any specific reason for saving/maintaining high corpus in FDs?
Suggest you to go through below articles :
Why investing in FDs/RDs for long term is not advisable?
Retirement goal planning
Kid’s education goal planning
Hello Sree,
Request you to review my portfolio: All investments are made using SIP for >15+ years.
Axis LTE – Direct(G) – 4000/month
ICICI Pru val Dicovery – Direct(G) – 2500/month
UTI mid cap – Direct(G) – 2500/month
HDFC Balanced – Direct (G) – 2500/month
Debt part in PPF.
1) I checked my overall investment analysis in valueresearch and it shows:
Giant: 37%, Large: 15%, Mid cap: 34% and small: 14%. Using above portfolio, capital investment is appropriate or not. My portfolio overlap is below 18%.
3) Please suggest me 1 large cap fund for the 12 years of time frame period.
4) For short term goals say 3 years whcih fund i can pic..
Dear Mukul ..Your portfolio is fine. If you want to add one Large cap fund then you may consider Franklin Bluechip/ Birla Frontline equity.
Short term : You may consider a conservative MIP (Growth) fund.
Kindly read : What are MIP Funds.
Dear Sreekanth,
I am investing in mutual funds from past 2 years. I want a corpus of 1 CR to meet my long term goals.
My investment time horizon is 10 to 15 years. Below are the details of investment.
HDFC equity fund Regular Plan Growth – 1500
HDFC Balanced fund Regular Plan Growth – 1500
Franklin India smaller companies fund Regular Plan Growth – 2500
Birla sunlife frontline equity fund Regular Plan Growth – 3000
Franklin India Prima Plus Growth – 1000
After going through your article I have decided to switch all my above schemes to Direct Plan.
In addition to this I would like to do additional investment for 5000 as below.
Reliance Small cap fund growth Direct Plan – 3000
Mirae emerging bluechip fund growth Direct Plan – 2000
Please advice if they are appropriate or needs some change.
Thank you for all your valuable and expert inputs, helping me in creating correct portfolio.
Dear Jitendra ..You may go ahead with your investment plan, looks fine.
Suggested readings :
How to pick right mutual fund scheme?
MF portfolio overlap analysis tools
What is 200 Day moving average? How to use it in MF buying decisions?
With ref to your query, my investment time horizon is around 10 yearrs
Dear alok ..You may switch to ICICI Value discovery fund or Franklin Prima plus fund.
Hi Sirikanth,
Thank you for all your valuable inputs, helping us in planning personal finance. I am again here with few queries.
Currently i am investing in below mutual funds(regular growth plan) through sip:
SBI blue chip(Rs. 7000), ICICI prodential value discovery fund(Rs. 7000), HDFC mid cap opportunities(Rs. 10000), DSP black rock micro cap(Rs. 10000) and AXIS long term equity fund(Rs. 5000). Investment time horizon is 15-20 years.
1. DSP black rock micro cap sip is to be completed on 15 July 2017, so please suggest which fund i should start with? as new sip still blocked in this fund.
2. It would be great if you can provide overall feedback on above fund selection and amount allocated. Because I am little bit confused whether I am overexposed to small and mid cap funds(>50% allocation).
Thanks and Regards
Anil
Dear Anil,
Your portfolio is fine. You may pick Franklin Smaller cos fund (Small cap fund).
As your investment time-frame is 10+ years, you may afford to take high risk and have higher allocation to mid/small funds.
Hi Sir,
Based on multiple search, I have narrow down on following options . Please advice if they are appropriate or needs some change:-
SBI Bluechip Fund 8-10 year
Axis Long Term Equity Fund 8-10 year
Mirae Asset Emerging Bluechip Fund: 1000 8-10 year
Mirae Asset India Opportunities Fund – Regular Plan 8-10 year
motilal oswal most focused long term equity fund 8-10 year
Tax Saving:-
Reliance Tax Saver (ELSS) Fund 3 to 5 years
DSP Blackrock Tax Saver Fund 3 to 5 years
Birla Sunlife Tax Relief 96 3 to 5 years
Thanks
Vishwanath
Dear Vishwanath,
Kindly note that Axis LTE & Motilal LTE funds are also tax saving MF schemes. You may consider one/two ELSS fund for tax saving besides other equity funds.
Also, if your time-horizon is around 3-5 years, you may avoid investing in ELSS funds.
SBI Bluechip & Mirae Opp funds, both are large cap oriented funds. You may drop either of the two and may consider adding an equity oriented balanced fund to the list.
Kindly read :
How to pick right mutual fund scheme?
MF Portfolio overlap analysis tools.
Best Balanced funds
Best ELSS funds
Hello Sreekanth,
Good evening!
I intend to start a SIP from a contingency/emergency fund point of view.What are the catg. of MF’s i should look at.
I did have a lumpsum of around 4 lacs in bank FD’s but withdrew the same for additional expenses to be met.Do not have any lumpsum now and hence want to start a sip .
Thanks & Regards,
Roy
Dear Roy,
Saving avenues for creating an emergency fund can be : FD/RD, Liquid debt fund and/or Arbitrage fund.
Do note that even liquid funds can be associated with few risks and returns are not guaranteed on mutual funds.
Kindly read :
List of investment options
What are arbitrage funds?
Types of Debt funds.
Here, safety and liquidity of capital should be give high priority.
Thank you for your guidance Sreekanth.
Should i look at starting a SIP in a Arbitrage fund only or should i look at a mix of arbitrage and Liq fund in a 50:50 ratio.
Not very keen on a liq fund as it is very short term and more skewed towards parking of lumpsum surplus funds where as i am looking at building a emergency fund through the SIP route as i do not have the luxury of surplus funds and hence arbitrage looks a better bet.
Please advise.
Thanks & Regards
Roy
Dear Roy,
You may try to set up a bank RD + have a SIP in an Arbitrage fund.
Kindly note that it may take 2-3 days or so to get the sale proceeds of an arbitrage fund.
Exit load is also applicable for Arbitrage funds (if redeemed between 30 to 90 days, generally).
Thank you Sreekanth .Have a nice evening
Regards,
Roy
Dear sreekanth i am a regular reader of your blog and it is very useful for new investor… keep going
1) my question is i already invested 1Lakh in Franklin india low duration fund-direct growth
as per ur blog and Value research it was short term fund, but in some other website & blog they mentioned as ultra short term fund , some other websites morning star & money control mentioned Credit opportunities fund.
which one is correct? Actually my plan is to hold for 5yrs.
Can i hold in the same fund or move to Dynamic bond fund. pls advice
2) Last 14months i invested in TATA Balanced fund DG by SIP and the returns are very low compared to other balanced funds. so i stopped the SIP and planned to start ICICI pru balanced DG. Can i use STP to this fund.
Thanks in Advance
Dear subbiah,
1 – It can be termed as an ultra-short term or short-term fund.
In case, your time-frame is 5 years, may be investing in a dynamic bond / Floating rate bond fund makes sense.
2 – Kindly note that an STP can be set up between funds which belong to the same AMC only.
Kindly read : Best Balanced funds 2017-18 | Review
Thanks……
Dear what is Floating rate bond fund? I didn’t find the article in ur blog. Please guide me.
I already invested in ICICI pru Long term fund DG (Dynamic )1Lakh…so can i purchase additional units by selling low duration fund. or Invest in Floating rate bond fund….If yes pls. suggest best Floating rate bond fund
Dear subbiah,
You can invest some amount in your existing Dynamic bond fund.
‘Floating Rate Fund’ A mutual fund that invests in financial instruments with a variable or floating interest rate. A floating rate fund invests in bonds and debt instruments whose coupons fluctuate in line with the underlying level of interest rates, as opposed to fixed-rate coupons.
Ex : HDFC Floating rate Income Fund.
Also, you may have a look at MIP (Growth) funds for 5 year horizon.
Kindly read : Best MF MIP Funds.
Hi sree,
I need you help to start investing in sip. im planning to start it from past 1 yr. but couldn’t possible to do so. Im regular reader of your blogs.
Im 30yrs old, Im looking for a fund which will give me a high returns for my future, to secure my retirement life and child education. Want to be invested for next 10yrs. i dnt have any other investment.
Please guide me
Waiting for your responce.
Regard’s
Priyanka
Dear Priyanka ..Thank you for being a loyal reader!
May I know if you have adequate life insurance cover?
Suggest you to kindly go through below articles and you may revert to me with your analysis ;
Kid’s education goal planning
Retirement goal planning
Blocks of Financial planning pyramid
Hi Sreekanth,
Based on your suggestion “best equity fund to invest 2015 & 2016” I had started SIP in UTI Equity fund. The fund was doing well then but later shown poor performance. Subsequently I stopped the SIP. I have a corpus of around 2.7 Lakh in this fund and I would like to switch to some really good performing large cap or diversified fund. May I proceed with ICICI value discovery or Axis long term equity (ELSS) fund for better result. Pl suggest one among these. Rgdds
Dear alok ..Yes, there has been a change in Fund manager with this fund (since Jan 2016) and its performance has not been that good.
May I know your time-frame?
Hello Sreekanth,
Firstly, thank you for these amazingly helpful posts!
I am new to mutual funds investment.I just have 1 ELSS – DSP Black Rock Tax Saver(5k SIP) and a Home loan(EMI -26k) to take care of bulk of my Tax savings.
However, i need to accumulate and grow my savings so as to repay loan within 8 yrs
Based on the pointers you provided, i had shortlisted-
Large – SBI Bluechip,Franklin India Bluechi, Birla Sunlife Equity
Flexi-Cap – Franklin India Prima Plus, L&T India Value, ICICI Prudential Value Discovery
Mid-Cap – Mirae Asset Emerging, Franklin Prima,HDFC MidCap
Thinking to finalize the following based on the minimal overlapping %:
—————————————————–
Large Cap – Franklin India Blue chip Fund
Flexi-Cap – L&T India Value Fund
Mid Cap – Mirae Asset Emerging Fund
—————————————————–
Does this look good?Can you please suggest?
Dear tushar,
Considering the time-frame and purpose, may be you can add a balanced fund, the other shortlisted funds are good ones.
Hello Sreekanth,
I am currently working in MNC company.My Monthly income is 30000 per month.i got married 3 months back.
Below are my current SIP funds from last 3 years and planning to invest 6K more monthly.
Investment objective is to accumulate Rs. 2 cr at the time of retirement ( after 15 years from now).
Please review the investment and suggest if any change needed.
1)BSL Frontline Equity Fund -Growth -> 2000
2)ICICI Value Discovery Fund -Growth->2000
3)IDFC Prenier Equity fund growth —>2000
4)Axis Long Term Equity Fund (ELSS)->2000
5)Franklin India Tax shield (Elss)->2000
I am planning to invest 3k per month in below funds.could you please review and suggest where i have to invest .I am looking 15 years horizon.
1)Mirae Asset Emerging Bluechip-Reg(G)->3000
2)Franklin India Prima Fund-(G) ->3000
Dear Vaishali,
You may consider discontinuing IDFC fund.
Rest of the funds look fine.
Suggested readings :
Retirement goal planning & Calculator
MF portfolio overlap analysis tools
Dear SreeKanth,
You often say that investing in too many funds may not be beneficial (especially multiple funds from same fund category) but what is harm except one need to spent extra time to follow.
For example- If I have to choose one fund for mid cap, I will prefer HDFC mid cap being a bit conservative but if I gave to put 2 fund then I will choose Mirae emerging blue chip along with HDFC mid cap so by choosing 2 best, I know return % will average out in bull and bear market which is also a conservative approach for mid cap.
Whats your view and suggestion?
Dear Prem,
How many are too many??
As we have limited number of stock scrips, we invest in too many funds especially from same fund category, the portfolios of these funds may overlap. In case, this is on the higher side, then it is advisable to avoid investing in multiple funds.
Kindly read : MF portfolio overlap analysis tools!
In my experience, I have also observed that too many funds may lead to portfolio churning and that too very often..which is not good for a retail investor.
Hi Sreekanth,
First of all thanks a lot for your valuable suggestions on investments. It helping us so much. Could you please clarify the below queries I have on SIP investments based on my time frame and financial goals.
Investment Goals on Priority :
1. Child Education and Marriage( High) 2.Buying a house (Medium).
Time Frame : 5-10 yrs.
– Max how many SIPs I can do on Monthly basis to achieve this ? Currently I’m doing few ELSS schemes for Tax purpose ( 3000 PM)
– Please let me know the MFs apart from ELSS schemes to achieve above goals.
– Is there any harm in doing 2 MFs from each category ( i.e Equity, Debt, Balanced,ETF etc)
– Panning to choose 1MF from each of Equity Categories ( i.e Large Cap, Small-Mid Cap, Diversified) and 1MF from Debt, 1MF from Balance, 1MF from ETF.
I have a ULIP for 11 yrs and apart from these I’m not doing any other investments ( Like PPF, FD, RD, SSY).
So please suggest if it is good if I invest most of the money in MFs to achieve above goals within the specified time-frame.
Thanks
Dear Angari,
As you are not investing in any other asset classes, suggest you to consider investing (higher allocation) in equity oriented balanced funds.
A small portion in diversified and mid/small cap stocks.
Investing in too many funds may not be advisable.
There is nothing wrong in selecting two funds within same category, you may check their portfolios overlap and then decide.
In case, you do not have adequate life insurance cover, buy a term insurance plan.
Hi Srikanth,
My investment time-frame is for 3-yrs ,my goal is around 5 lakhs
i want to start sip for 10000 per month ,below are the funds i want to invest.
mirae Asset Emerging Bluechip Fund-mid
HDFC Balanced Fund-balance-large
Kotak Select Focus Fund-large
Birla SL Equity Fund-multi
please suggest me whether i can invest in above funds
Dear Durga,
If your investment horizon is around 3 years, suggest you not to invest in Equity funds, can be a high risk strategy.
Kindly read : List of investment options.
Hello Srikanth,
I have a SIP in Franklin India Prima fund for past 9 months and my XIRR has been 36% so far. Should I continue SIP in the same scheme or shall I stop SIP and hold the units for long term like 7-10 years and start SIP in another scheme.
I already have SIPs in SBI bluechip, Franklin Build India and Mirae emerging bluechip funds.
Dear Raghuma ..Why would you like to stop the SIPs?
Kindly link your investments to your financial goals and take decisions.
Suggested reading : How to create a solid investment plan?
Is there any criteria when to stop SIP in a fund? Can you share any article about when to come out of a mutual fund?
Dear Raghuma,
1 – Based on ones investment horizon
2 – If the performance of the fund over a period of time has been bad Vs its peers/benchmark/fund category Avg returns.
3 – Do track if there is any news related to change of Fund manager, track the performance of the fund after the change (may be for 1 to 2 years) and then take a call.
sir,
Is CREDIT CARD is good as axis bank insist me take credit card but i am afraid to take because i dn’t have control spending money, please advice.
Dear bhanudas ..If you do not need credit card then you can let your banker know this.
Dont take it if they insist..but if you need, nothing wrong in have one Cr card, but do pay all the dues (total) before the due date without fail.
Dear Srikanth,
Thanks for your help as always.
I have taken home loan for 30 years term to lower my EMI . I want to invest remaining amount in balanced mutual fund for 4-5 years and after 5 yrs withdraw the amount , prepay the home loan. I am planing to close my home loan max by 7 yr. Could you please suggest if I should pay more EMI and close or invest in mutual fund to get for returns than home loan interest and prepay the loan.?
Thanks in advance.
Dear Amlan,
May I know your other financial goals?
Have you been able to save/invest for those goals adequately?
Dear Sreekanth,
Currently I do not have other financial goal..except child education and I am unmarried . so I am thinking to repay the loan max by 7 years so that at the time of child birth and education it will easy for me.
I am doing SIP on below funds from last 4 months for the same.
Reliance Tax Saver Regular Growth(G) : 4000/monthly
DSP BlackRock Tax Saver Fund Regular – Direct Plan(G) : 4000
SBI Blue Chip : 4000
Mirae Asset Emerging Bluechip Fund: 4000
Franklin India Smaller companies Fund :3000
ICICI Prudential Value Discovery fund : 3000
Apart from that I have PPF and RD as my debt in my portfolio .
But I am recently bought a flat. So planning to remove
Reliance Tax Saver Regular Growth as I can use home loan as my tax saving and wanted to close the sip for Multicap(ICICI Prudential Value Discovery fund).
Appart from that I am thinking to lower sip for SBI , Mirae asset to 2000 and Franklin to 1000. So that I can give home loan EMI and can put 8000-10000 to some balanced fund for 5 years to repay the loan.
Could you please give the suggestion for the same.
Thanks as always.
Dear Amlan,
Yes, you may opt out of ELSS funds.
If you are planning to accumulate corpus for next 3 to 5 years and then redeem entire corpus to re-pay your home loan then investing in balanced fund(s) can be a good decision.
For the said time-horizon, you may reduce allocation to mid/small cap funds.
Dear Sreekanth,
Thank you so much for your quick response and suggestions.
I am planning to keep 1 tax saver for this year as for my home loan I wont be paying much amount in principal. (which is applicable for 80c).
So my portfolio would be
DSP BlackRock Tax Saver Fund Regular – Direct Plan(G) : 4000
SBI Blue Chip : 3000
Mirae Asset Emerging Bluechip Fund: 1000
Franklin India Smaller companies Fund :1000
HDFC/some other balance fund : 8000
Please suggest?
Thanks in adavnce.
Dear Amlan ..You may kindly go ahead with your investment plan!
Thank you Sreekanth for your help as always.
Hi Srikanth,
I have invested SIP on the following funds for last 2 years
Focused Bluechip Equity -Drt Growth- 3000 per month
uti Equity Fund-Direct plan-Growth- 3000 per month
HDFC Balanced Fund-DP-Growth- 1500 per month
Franklin India Prima Plus – Direct – Growth 1500 per month
HDFC Infrastructure Fund – Growth- 20,000 one time investment 8 years back.
Do you want me to continue or need to change? And also i have ulip plan and planning to cancel. I will get around 3.5 lakhs. Do you suggest to invest on the above funds or different funds. Thanks for all the support.
Thanks,
Ravi
Dear ravindra,
May I know your investment time-frame?
Suggested readings :
MF portfolio overlap analysis tools
How to select right mutual fund scheme?
Mostly 10 years Srikanth. For sure I won’t touch this amt for next 5 years unless fund is not performing.
Thanks,
Ravindra
Dear Ravindra..If so, you may continue with your investment plan.
You may invest the lump sum amount Franklin Prima plus & HDFC balanced fund over next few months.
Thank you Srikanth
Dear Mr. Reddy
I have invested 5 lakh in SBI Dual Advantage fund series 3 purely debt scheme which have maturity on this month 3 year lock in period. Now company have rollover the maturity for 1 year. Now it better to stay in this scheme or to withdraw the money and invest in other fund. My time horizon is more than 5 years from now. Wait for your prompt reply.
Thanks and regards
Ankit
Dear Ankit..If you have 5 years time-frame, may be you can consider investing in an equity oriented balanced fund.
Sir,
Balance advantage fund like—
BAF(birla balance advantage fund),& icici balance advantage fund,
are not equity oriented in terms of tax liability ?
Dear Pankaj..They are equity oriented balanced funds and any gains, if realized after 12 months are tax-exempt.
Dear Sreekanth,
Below are my current SIP funds and planning to invest 5K more monthly could you please suggest where i have to invest .I am looking 7 to 8 yr horizon
Biarla sunlife Banking and Financial GR Regular———3000
Biarla sunlife Mid cap fund growth ————————3000
ICICI Prudential Tax saving equity fund—————–3000
ICICI Prudential Top 100———————————3000
IDFC Prenier Equity fund growth ————————3000
Dear Shrikumar,
You may pick one Equity oriented Balanced fund like HDFC balanced fund.
You may have a re-look at IDFC Premier and Birla Mid-cap funds, especially IDFC fund. There are better alternatives in mid-cap category.
Hi sreekanth,
Please suggest any two mid cap equity fund where i can invest 5000Rs/month for 7-8 years
Regards,
Shrikumar
Dear Shrikumar ..You may consider Franklin Prima / Mirae Emerging bluechip/HDFC Mid-cap opportunities funds..
Dear Sreekanth,
I have been investing Rs25,000 every month in MF thro SIP for past 2 years.
My selections are in Diversified, Mid-cap, Balanced, Multi-cap & Large cap (Each Rs5000)
To add one more SIP in my Portfolio, my friend is suggesting to invest in Infrastructure equity fund
which is the future growing industry.
Is it ok to invest in this fund, if so which is the best fund?
Thanks in advance, Bye
Regards
Murali
Dear Murali,
May I know your investment objective and time-frame?
Dear Sreekanth,
Thanks for your reply.
It is an additional investment in SIP.
Also its a long term around 5~6years
Dear Murali,
If so, you may make additional investments in Large-cap/Balanced fund itself.
Thank you Sreekanth
Hi Sreekanth,
I am a regular reader of your blogs and really appreciate your guidance provided on different investment options. I have following query:
I am investing in Mutual Fund with 10K Per Month and goal is to maximize my Investment for Future. Also doing Lump sum investment into same schemes.
HDFC Top 200 Fund-Growth – 1000
HDFC Mid Cap Opportunities Fund- Growth -> 2000
ICICI Balanced fund-DP-Growth -> 2000
ICICI LTEF (Tax Saving)-DP-Growth -> 2000
BSL Frontline Equity Fund -Growth -> 1500
SBI Blue Chip Fund Plan-Growth -> 2000
Franklin India Prima Fund ->1500
I have below Questions:-
-Provide your suggestion if any add/deletion required in above MF Scheme for better return.
-Planning to invest 1Lakh in above mentioned schemes (25K per scheme). Is it fine?
-Planning to double my SIP’s from 10 to 20K per month.
Thanks in Advance !!
Dear Amit,
1 – Almost all the listed funds are good ones. Suggest you to check overlap among these funds (especially the funds which are from same fund category).
Kindly read :
What are Large/Mid/Small/Multi-cap funds?
MF portfolio overlap analysis tools
May I know your financial goals & time-frame ?
Hi Sreekanth,
Thanks for your reply.
Goal is to maximize my Investment for Future and time frame is for 5 years.
Also suggest on below Questions:-
-Planning to invest 1Lakh as lump sump in above mentioned schemes (25K per scheme). Is it fine?
-Planning to double my SIP’s from 10 to 20K per month. Is it fine?
Dear Amit,
If your time-frame is around 5 years, you may reduce exposure to mid/small cap stocks.
Also, plan your investments in ELSS funds wisely, as the units allotted under each SIP get locked for 3 years.
Lump sum investments you may make in Large/Balanced funds.
Can you suggest best Large/Balanced MF for Lump Sum.
Also suggest best MF for new SIP, out of below mentioned MF’s :-
1.DSP Black Rock Opportunities Fund – Regular Plan – Growth (Diversified)
2.Kotak Select Focus Fund – Growth (Diversified)
3.Mirae Asset India Opportunities Fund – Regular Plan – Growth (Large Fund)
4.Mirae Asset Emerging Bluechip-Reg(G)
Dear Amit,
You have already invested in around 7 funds, so you may make additional investments in the existing funds itself.
Hi Sreekanth,
Since there is a huge opportunity lying ahead from green revolution (agriculture), I was wondering if you have any plan to write blog about any of the following in near future?
1) Thematic fund (eg- L&T infra, Franklin Build India Fund)
2) Rural fund (eg- Sundaram Rural India Fund)
3) Value Fund (eg- TATAT P/E or ICICI pru value)
I know these comes with higher risk in comparison with mid/small cap but considering present scenario, Rural/value/thematic fund look more attractive in comparison to mid/small cap. For me, they look with equal risk of mid/small but with higher return than mid/small cap in future considering high valuation of most of the mid cap stocks.
Please help with your views. I already have HDFC balance, HDFC mid cap, Franklin prima plus, Franklin smaller, Axis ELSS.
Many Thanks,
Dear Prem,
If you have conviction that these thematic based funds can outperform the other mentioned fund categories, you may kindly go ahead and invest.
Though there is a huge opportunity in this sector, its mostly linked to Govt reforms and their ability to successfully implement these.
The biggest risk factor is ‘farmer loan waiver’, can be a huge factor in next elections. Things are going bad to worse in this sector.
Thanks for info.
If you have to choose one fund out of these, which one you would suggest for SIP for 7-8 years for 10% of my portfolio.
1) L&T infra
2) Franklin Build India Fund)
3) Sundaram Rural India Fund
I have SIP in HDFC balance (20%), HDFC mid cap (10%), Franklin prima plus(10%), Franklin smaller(10%), Axis ELSS(20%) and debit fund (20%), FD (10% as emergency fund).
Thanks
Dear Prem,
You may pick Franklin Build India fund.
HI Sreekanth, I am a regular reader of your blogs and really appreciate your guidance provided on different investment options. I have following query:
recently I came to know one important thing about MF investments. Asset mgmt company apply charges on the entire corpus that is present under a fund for each year. For e.g. If i have a blue chip fund that I am investing from last 3 years. Currently fund value is 1 Lacs and now if I invest 20 thousand more in current year, then SBI mutual fund would apply yearly/quarterly charges on the entire corpus (1 lac + 20 K) ?
Also, i want your suggestion relating to new NFO by ICICI Prudential Elite Life Super NFO fund (ending on 10th june). Please provide your inputs on this NFO and its comparison with MFs. As per the ICICI people explaining this product, allocation charges are equivalent (or less) than Mutual funds and returns will be more. Also, there would be life cover associated.
Please provide your suggestion considering following points:
– I am a long term investor and i am OK with the lock in period of 5 years needed for this NFO
– I don’t need any fund just for 80C purposes, as I already have other avenues to cover this amount
– I am conservative investor
Thanks.
Dear Saurabh,
Thank you for following my blog.
Yes, they do charge ‘Expense ratio’ on the Assets managed by them (fund house).
Kindly do not mix insurance with investment. ICICI Prudential Elite Life Super is an ULIP plan.
Given a choice, I prefer mutual funds to ULIPs.
May I know your financial goals?
Read :
List of best investment options!
My financial goal is to maximise my investment only. I don’t have any term insurance at the moment. If MF company is charging on the entire corpus (and not on the fund investment of given period) and if insurance company is not charging like that…then don’t you think that ULIP would be a better choice.
Dear Saurabh,
You need to check out the expense ratio of funds Vs total charges levied by an ULIP scheme (premium allocation charges, fund management charges, admin charges etc.,)
Also, mutual funds have more liquidity, options to select, more transparent…
So, on any given day, I prefer to invest in mutual funds to ULIPs.
Hi Sreekanth,
First, congrats for the awesome 3 years! Thanks to you, many like me are now consciously saving and investing.
Many thanks again.
Could you please guide on the following
1.How often should I review my MF portfolio for any changes needed?
2.On what factors should I decide whether or not any change is required?
3. In case there is a change needed, how can I make it? For example- in case I decide MF A is no longer suitable to stay invested in, how do I pull out from A and how do I move to B?
Are there any tax implications? Or any other costs I incur?
Will I lose out the benefit of long term investing?
Please advise.
Dear Anu,
Very good questions!
1 – There is no thumb rule. My suggestion would be, if one is novice investor, its better not to look at ones portfolio on a daily or weekly basis. May be once in couple of months is ok and that too to understand and learn how mutual funds work. Else, once in six months should be fine. Advisable to first look at overall Portfolio return and then individual fund’s performances.
2 – If you are investing to accumulate for a financial goal, you can have a re-look at the portfolio composition based on the number of years left to reach the goal target. Also, most of us do try to pick consistent ones, so lets give them sometime even if a particular fund under-perform. In case, a fund consistently under performs its peers/category/benchmark on a consistent basis (say 2 years), can replace it. Another factor can be, the various economic factors (inflation,interest rate cycle, govt reforms, global factors etc) to tweek the portfolio a bit.
3 – It depends…sometimes it is advisable to keep the existing units and then make future investments in some other fund.
4 – Costs can be Exit Load and taxes.
Read :
MF taxation rules..
SIP Vs Lump sum investment
Hi Sreekanth ,
Hope yo are doing well. I am new to the MF world and need you help in selecting funds for my requirement.My current age is 30 and I have following requirements and i have tagged them with the respective MFs i am planning.
Retirement(ELSS) – 15000 PM – Axis Long Term Equity Fund and Birla Sun Life Tax Relief 96
Children Education – 5000 PM – SBI Bluechip
Tax Savings – 10000 PM – DSP BlackRock Tax Saver Fund
Emergency – 5000 PM – Mirae Asset India Opportunities(large/mid cap),
– 5000 PM – Motilal Oswal MOSt Focused Multicap 35 Fund (multi cap) or ICICI Prudential Value
Discovery Fund – Direct Plan
– 5000 PM – Mirae Emerging Bluechip Fund (G)(small cap)/ Reliance Tax Saver
Pls suggest for the funds i have selected.
Dear vipul,
ELSS Funds : Kindly note that you can claim up to Rs 1.5 Lakh only u/s 80c . So, may be you can pick just one ELSS fund and contribute up to this limit for your (any) long term goal.
Are you planning to investing in Equity funds for building an Emergency fund?
For ELSS, i will reduce the amount and will make it to 12.5k per month.
What about the funds which i have selected ? Are they fine to go with ?
yes, i am planning to go with large cap equity funds for emergency fund
Dear vipul,
The shortlisted funds for tax saving are good.
For accumulating an emergency fund, kindly do not consider Equity funds, you may consider Liquid funds/Arbitrage funds (funds which have less risk profile).
Kindly read :
List of best investment options
Types of Debt Funds
What are Arbitrage funds
Can i consider Dynamic Bond funds for emergency category ?
Also apart from ELSS, are other equity funds good enough to go with ?
Dear Vipul,
Kindly note that it is advisable to invest/save in such products where risk is low, to build an Emergency fund.
Kindly go through the suggested articles.
Hi Srikanth,
I am investing in ICICI Value Discovery Fund from last one year but he returns are not that good compared to other funds in the same category.
I want to stop the SIP and invest in Birla SL equity fund in Diversified category. Please suggest.
Dear Naha ..May I know your investment time-frame?
My time frame is 10 yrs
Dear Neha,
one year is a too short period to judge the performance of a good fund which have been doing well for the last few years.
You may wait for some more time.
Dear Srikanth,I am holding Birla sun life MIP 25 for long term.Recently I read some where that Birla sun life has changed mip schemes to pure debt schemes.If it is true then should I exit MIP 25 or hold it in its new avatar.
Dear Dr Jawahar ji.. It still remains as a Hybrid-debt oriented scheme.
I have recently updated MIP article..you may kindly go through it..
Hi Sreekanth,
My current investment is in BSL Front Line Equity Fund – Rs. 5000/month.
Planning to invest in the below tow funds-
DSP Black Rock Tax Saver Fund – Rs 5000/month
Mirae Asset Emerging Bluechip Fund – Rs 3000/ month
Investment objective is to accumulate Rs. 2 cr at the time of retirement ( after 30 years from now).
Please review the investment and suggest if any change needed.
Thanks in advance…
Dear Manoj,
You may go ahead with your investment plan!
Kindly read : Retirement goal planning..
Hi Srikanath,
The information which you shared is very useful. I have been investing in below Mutual funds since last 3 years. I have invested in few mutuals funds 6 years back and stopped. kindly review and let me know if any changes required.
1) ICICI Pru Focused Blue-chip Equity Fund – 3K
2) Mirae Emerging Blue Chip Fund – Direct Plan (G) – 4K
3) Franklin India Taxshield fund. – 2K
4) HDFC Midcap opportunities fund – 4K
5) SBI Pharma Fund – One time investment – 50K ( 1.5 years ago)
6) HDFC Tax Saver – inverted 2 years and stopped SIP
7) L&T Tax Saver- Invested 3 years and Stopped SIP
PPF – 40K per year
Life Insurance – 50K
No -Term insurance.
Now, I would like to invest 5K in one or two MF for LONG TERM. Could you please suggest any LONG TERM Mutual funds. Also review my above portfolio and let me know you review and suggestions on this.
Many thanks in advance.
Dear Shreya,
Do you have any family member(s) who are dependent on you financially?
If possible, kindly share details of your exiting life insurance policies?? (Plan name, commencement date, policy term..)
You may redeem the units of HDFC Tax saver & L&T Tax saver funds and you may reinvest the amount in other existing funds.
You may invest additional amounts in HDFC mid-cap itself & Franklin Tax shield (for tax saving purpose also, if required).
Hello Sreekanath,
Yes. I have hubby and a boy(6 year).
LIC- Jeevan Anurag – 15 years – 35K
MetLife- Met Suvidha Par Regular – 12K Yearly
Ok. I will redeem the HDFC Tax saver & L&T Tax saver funds.
I want to invest in new Mutual Funds for the Long term. Can you please suggest.
Also, I would like to take one term insurance of 50L. Please suggest any good term insurance plans
Thank you
Shreya Patil
Dear Shreya,
If you are an earning member of your family, suggest you to consider buying a Term life insurance plan.
LIC Jeevan Anurag is a traditional Money Back plan. Metlife Suvidha plan is an Endowment plan.
These kind of traditional plans can at best give your returns in the range of 4 to 6%. They neither provide adequate life cover at affordable premium nor give you decent yield.
Once you buy a term insurance plan, you may discontinue these.
Kindly read :
Traditional life insurance plan : a terrible investment option!
Best term insurance plans.
How to discontinue bad life insurance policies?
You may continue your existing mutual funds portfolio.
Hello Sreekanth,
I’m investing in SIPs from June 2015 for children’s higher education around 2027. Every year, I review my portfolio in Mar to May.
I’ve finalized the below for 12 month SIP from June 2017 to May 2018. Please advise whether the below allocation looks o.k. or needs some consolidation / amendment.
Many thanks for your time & support.
Balanced:
HDFC balanced: 5k
Large:
ICICI Pru blue chip: 3k
Kotak select focus: 4k
SBI blue chip: 4k
Diversified:
Quantum long term: 3k
L&T India value: 3k
Sundaram rural: 3k
Mid & Small cap:
SBI magnum mid cap: 3k
UTI mid cap: 3k
Franklin India smaller companies: 3k
DSP micro fund: 2k
Last year I had all the above except for DSP micro fund & Sundaram rural fund.
Many thanks,
Lakshmi.
Dear Lakshmi,
Almost all the listed funds are good ones!
But investing in too many funds may or many not be beneficial (especially multiple funds from same fund category, in case if they have high portfolio overlap).
Kindly read : MF portfolio overlap analysis tools.
Thank you SO much for the prompt feedback, Sreekanth.
I’ll check the % overlap among each fund category.
Hi Sree, Request you to please review my portfolio,
Time Frame is 10yrs
1. Birla Sunlife FL Equity Fund -G —2500
2. SBI Blue-chip -G—–2500
3. Mirae Asset Emerging BC Fund -G—2500
4. Franklin Smaller Cos-G—2500
5. HDFC Bal fund –G –2500
6. DSP BlackRock Tax Saver Fund G–2500
PPF- 50k/Annaully
Life Insurance- 40K /Annually
Term Insurance-8K/Annually
Do you think any changes required?
Kotak select focus fund G, L&T Midcap Fund (G) should I considr these also?
Dear Manish,
The listed funds are good ones.
You have two Large cap oriented funds (SBI & Birla funds), and their portfolios overlap is around 47%. So, you may have either of them in your portfolio.
I believe there is no need to add any more funds to your portfolio.
Hi Sreekanth,
so much info from your article. Thanks for sharing that knowledge to public. I want to start freshly the MF investment through SIP for a long term for wealth creation. No time period. Please suggest 4 funds in different categories. Thanks in advance
Dear sharan ..You may kindly pick from the list given in the article.
Hi Srikanth,
Thanks for your blogs. I was following few of your blogs and they are really useful.
I am planning to start SIP in mutual funds from next month on wards. I am 32 yr old, married, have a daughter. I am planning to SIP next 15 years, 20000/- per month. I have prepared below portfolio based on my research. Could you please review and let me know your feedback? Also I have few questions below.
2500: Large-Cap, SBI Blue Chip Fund – Direct Plan (G)
2500: Large-Cap, Birla SunLife FrontLine Equity – Direct Plan (G)
2500: Multi-Cap, ICICI Pru Value Discovery Fund – Direct Plan (G)
2500: Multi-Cap, L & T Value Fund – Direct Plan (G)
2000: Mid-Cap, UTI Mid-cap Fund – Direct Plan (G)
2000: Mid-Cap, Mirae Emerging Blue Chip Fund – Direct Plan (G)
3000: Small-Cap, Franline India Smaller Companies Fund – Direct Plan (G)
3000: Equity – Balanced, HDFC Balanced Fund – Direct Plan (G)
1. Is it good to have so many funds in my profile? or shall I remove few of them and adjust that amount in other funds? For example removing SBI Blue Chip and add that amount to Birla SunLife FrontLine Equity?
2. How much percentage should I divide my investment in different kinds(caps) of funds? Should it more in Large-caps if your investment term is long?
3. I might not need regular/dividend income on these investment. BUt would it be better to choose dividend option for few of them (may be for Mid-caps or Small-Caps)?
I was not clear, so I have distributed my amount equally between all kinds of funds. Could you please guide me?
Thanks,
Kiran Boreddy
Dear Kiran,
1 – Yes, you may do so.
2 – Ideally, for long term goals, one can have higher allocation to Diversified/multi-cap and Mid/Small cap funds.
3 – Growth options is advisable if accumulation is your priority/objective.
Kindly read :
What are different MF Fund categories?
Kids’ education goal planning
Retirement goal planning
Myself Somdeb Majumder, 42 yrs old, already started investment in MF. I want to fulfill my following targets and want a healthy SIP portfolio for next 15 to 20 years to build corpus of Rs. 1Crore+.
1. Higher Education expense of my daughter – here my target for money – Year 2025 , also I have decided to invest lump sum monthly (Rs.1000/5000 whatever excess money I will have)
2. A Good Fund while I retire (age I choose @ 55 yrs, it may be 58 or 60 yrs, will decide later), here my target for money – Year 2030/2032, it can be extended depend upon my health & position that time.
3. Lastly a fund is require every year for family vacation
I have already invested in the following funds –
1. HDFC Top 200 Fung Direct Growth – Rs. 1000/month
2. UTI Dividend Yield Fund- Direct Growth – Rs. 2000/month
3. UTI Mid Cap Fund – Direct Growth – Rs. 1000/month
4. UTI Transportation & Logistics sector – Direct Growth – Rs. 500/month
5. Mirae Asset India Opportunities Fund – Regular Growth – Rs. 1000/month
6. DSP Blackrock Tax Saver Fund – Regular Growth – Rs. 1000/month
Total Rs. 6500 per month
Also I have started to invest Lump Sum amount (Rs.1000/5000) depend upon my pocket support month wise in direct option for that I invested – Birla SL Frontline, DSP black rock Opportunities, DSP black rock small & mid cap, ICICI prudential value discovery fund, Birla SL small & mid cap fund.
I need to know whether the above invest is good to fulfill my dream or need changes to select other funds in Direct Growth option.
Request you kindly suggest fund wise investment.
Dear Somdeb,
Kindly go through below articles, can be useful to you;
Kid’s education goal planning .
Retirement goal planning and calculator
You have invested in 11 mutual fund schemes. Too many funds may not necessarily lead to diversification. You may consider to trim down your portfolio.
Kindly read :
MF portfolio overlap analysis tools.
How to pick right MF Schemes?
Dear Sreekanth ji,
Thank you for your comments, can you guide me some funds which I can continue for next 15 to 20 years @ monthly Rs. 10,000 in SIP.
Dear Somdeb,
You may consider HDFC Top 200, UTI Mid-cap, DSP Tax saver, Birla Frontline / Mirae Opp fund, ICICI Value Discvoery funds…(these are just my suggestions..).
As per your suggestions and your best MF schemes I have rebuilt my investment portfolio for long term (15 to 20 years) – @ 10200/- monthly to build corpus of Rs. 1Crore+, what I have done, I stop some of them and going to start it from June-2017.
Large Cap Equity –
1. HDFC Top 200-Direct Growth – @1000/- (continue- SIP date 25)
2. Mirae Asset India Opprotunities Fund – Regular Growth – @1000/- (continue SIP date 22)
Diversified funds
3. Kotak Select Focus Fund Direct Growth – @ 1500/- (new-SIP date 01 & 10)
4. Franklin India Prima Plus Fund Direct Growth – @ 1500/- (new- SIP date 7)
Mid & Small Cap
5. UTI MID cap fund Direct growth – @ 1000/- (continue- SIP date 25)
6. Franklin India Smaller Companies Fund -Direct Growth – @ 1200/- (New SIP date 22)
7. Mirae Asset Emerging Bluechip Fund – Direct Plan Growth – @ 2000/- (new – SIP date- 10, 21)
ELSS (Tax Saving) – DSP Black Rock Tax Saver Fund Regular Growth – @ 1000/- (continue – SIP date 23)
Also I will continue LUMPSUM amount in some scheme as suggest by you.
Please suggest .
Dear Somdeb,
Kindly go through below articles, can be useful ;
How to select right mutual fund scheme?
MF portfolio overlap analysis tools
Hi,
I’m planning to invest 12000/pm as SIP in the best performing mutual funds. Please suggest 4 best MFs to invest 3000/pm in each. I have searched and found that below MFs are doing well for the last few yrs.
Large Cap – Birla SL Frontline Equity (G) – Direct
Kotak Select Focus Fund – Direct (G)
ICICI Pru Focused Blue-chip Equity Fund
SBI Blue chip fund
Small & Mid Cap – DSP-BR Micro Cap Fund – Direct (G)
Mirae Emerging Bluechip Fund – Direct(G)
L&T Midcap Fund -Direct (G)
Franklin India Prima Fund (G)
Birla SL Midcap Fund -Direct (G)
Franklin India Smaller Companies Fund(Franklin(I) Smaller Cos)
Franklin India Flexi Cap Fund
Diversified Equity – Principal Emer-Bluechip -Direct (G)
ICICI Pru Value Discovery Fund (G)
L&T India Value Fund -Direct (G)
Kotak India Equity -Direct (G)
Franklin Prima plus fund
ELSS – Mirae Asset Tax Saver Fund – DP (G)
Please suggest at least one(best one) from each category to invest.
Dear Angari,
Almost all the shortlisted funds are good ones. I have provided my list in the above article. If ok, you may consider any one fund from each fund category.
Kindly read : How to pick right mutual fund schemes?
Dear Sree,
Based on certain basic checks, way back in Sept 2015, I had invested 5 Lacs lumpsum amount in Reliance Pharmaceuticals, but till date it has been showing me only negative returns.
I am in no hurry to redeem this money. However, kindly advise if I should continue to hold onto this Mutual Fund or should I sell it (with some loss of capital) and rather invest the amount into some other Mutual Fund which will give me better returns such as a Mid & Small Cap fund.
Rgds
Dear Rajesh ..May I know your financial goals and time-frame?
Have you invested in any other MF schemes?
Hi Sree,
My financial goal is for wealth creation and I do not have any specific time frame in mind. I could be invested for possibly 15 years.
I have invested in other MF schemes as well, all of which are giving me positive returns (except Reliance Pharma Mutual Fund), especially in the current market condition.
Kindly advise in regard to specifically the Reliance Pharma lumpsum MF which I have invested.
Rgds
Dear Rajesh,
Personally, I do not invest in Sector oriented schemes.
Generally in a raising market, the defensive bets like FMCG or Pharma sectors may not out-perform the markets.
You may switch the investments in this fund to your other funds.
Hi sreekanth,
I want to convey some bad experiences that has happened to me recently so as to make your reader base aware.
Recently i did a couple of redemption in axis bank liquid fund to axis bank savings account. To my surprise which I later discovered, the mutual fund has done the redemptions but credited it randomly to my savings account. for eg amount was credited for redemption done on 4th but was not done for redemption done on 1st and now its 11 days and still I have not received the money, I was so surprised when i checked my bank account.
When contacted they say, direct credit failed (? what is this) so they have sent some warrant which will reach me in another 5 days (now image, redemption proceeds reaching me after 14 days for liquid fund). Now I dont understand how can direct credit will fail?
Now see again, my spouse is also having a liquid fund with axis bank and for her also, redemption confirmed on 8th has not been cleared to bank account till now?on calling they say someone is looking into it but they dont bother to call back.
Now Sreekanth, what shall i do? What is the point of investing in liquid fund when they take so much time to get the money back. Also, the customer care person mentioned that the RBI has mandated to stop insta redemption, so they have stopped it. is it true?
Dear Rajesh,
This is really surprising!
Liquid / ultra-short term funds would generally credit money to investor account the next working day, provided the redemption request was placed before 3pm.
So, do you mean to say that something is wrong at Axis MF end?
If so, suggest you to submit your grievance to SEBI immediately, at SCORES online facility.
Select complaint category as ‘Registrar & Transfer Agents’.
Select Mutual fund as option under the section ‘Whether Pertains to ?’.
Kindly do share the status update here, and this can be useful for all of us.
Dear Reddy,
I will retire Dec 2017 and would need your help to identify best investment option for myself post retirement. I have medical coverage from my company which will also continue post retirement. No other liabilities.
Senior Citizens Savings Scheme
Senior Citizens Pension Plan (Varistha Pension Bima Yojana)
Post Office Monthly Income Scheme (POMIS)
Bank and Company Deposits secured
Debt MF
Kindly advice.
Dear Mangala Ji,
Suggest you to kindly go through this article and may revert to me with your analysis..
Retirement goal planning..
Dear Sree,
Hope you are doing well. Below I have detailed my current investments and would appreciate you evaluation of the portfolio. Also, need some help with couple of quires as defined below?
Investing since Jan 2017
My current Investments (All Direct Plans) 10+ Yrs horizon, My current age 34 Yrs
Allocation Large Cap 36% Mid/Small Cap 57% Diversified 8%
1. HDFC Balance Fund
2. HDFC Mid-Cap Opportunities Fund
3. Birla Sunlife MIP II WEALTH 25 Plan
4. UTI MID CAP Fund
5. Franklin India Smaller Companies fund
6. DSP Black Rock Micro-Cap Fund-G
7. DSP BlackRock Tax Saver Fund
8. SBI Blue chip
9. ICICI Pru Value Discovery fund
10. Axis Long Term Equity Fund
My wife’s Investments (All Direct Plans) 10+ Yrs horizon, Her current age 31 Yrs
Allocation Large Cap 30% Mid/Small Cap 60% Diversified 10%
1. Tata India Tax Savings Fund
2. Franklin India High Growth Companies
3. L&T India Value Fund
4. Birla Sun Life Tax Saver 96
5. Birla SL Frontline Equity Fund
10 Lakhs in Bank FD’s(Emergency Fund) and 4 Lakhs in Saving accounts.
1.4 Cr Term plan for myself. 14Lakhs company medical insurance for family plus wife has 6 lakhs medical insurance from her company.
1 Jeevan Tarang policy- currently status PAID UP, maturity date 2027, current benefit 10lakhs maturity benefit will be 20 lakhs.
1 Money back policy- monthly premium 4400 for another 10yrs
Kindly share your point of view on my concerns below.
1) Need your comments on what to do with LIC policy Jeevan Tarang?
2) What should I do with the FD’s and Saving balance. Current ROI considering
Inflation and Tax. I understand Debt MF better than above options as I don’t want
principle to be at RISK here. Please suggest some funds.
3) What funds would be better say for targeting annual school fees for my children’s.
Dear Samson ..Suggest you to copy – paste the above query @ relakhs.com/forum .
Kindly create a login ID and click on ‘Ask question’ to post your query.
Excellent article, Sreekanth. There are different types of mutual fund which cater to the different needs of the investors. You have to identify your need and select the right fund that suite your needs. Always invest correctly for maximum benefit.
Sreekanth,
Just realized that Franklin India Smaller companies follow “Nifty Free Float Midcap 100′ which is a midcap one according to Valueresearch. so can we consider this fund as mid cap or Small cap?
Dear Hari,
The investment objective of this fund is : ” The scheme aims to provide long-term capital appreciation by investing in mid and small cap companies. Normally, it would invest atleast 75 per cent of its assets in smaller companies.”
So, based on the market valuations, fund manager may take a call whether to allocate more to mid or to small cap companies.
As of now, this fund has allocation of around 51% to mid-cap stocks and around 38% to small cap stocks.
Its peer, DSP Micro cap fund has allocation of around 42% to mid-cap and around 57% to small cap stocks (but fresh investments to this fund have been temporarily suspended).
Reliance Small cap has around 67% allocation to small cap stocks.
Kindly note that a fund manager may not invest 100% of corpus to small cap stocks and this may vary from time to time.
Many Thanks Sree! I am a long term investor and refining my portfolio now , hence the above query has came out during analysis.
In my portfolio I have only 10% allocation for small caps. If I need to choose one fund for small cap, which one I need to choose? DSPBR Micro cap fund or Franklin smaller fund?
DSP seems to be performing exceptional in last 5-7 years and having high allocation in small caps. returns are eye popping.. But ET says it is not safe to invest in micro caps.
However Franklin is known for its quality stock picking and Risk-rating is low compared to DSPBR, however only 38% stock to small cap allocation. Franklin smaller is less volatile compare to DSPBR.
Please note I have 30% allocation for Mid caps (Mirae asset Emerging bluechip) . Considering this can you advise
1. which small cap to opt. Franklin or DSPBR?
2. If Franklin, I have continue the SIPs and will do STP of existing DSPBR micro cap fund to DSPBR tax. -> Is that fine ? or pls provide suggestions
3. If DSPBR, I will withdraw money from existing Franklin smaller and will re invest in DSPBR micro fund. –> Is that okay? or pls provide suggestions
Dear Hari,
1 – Kindly note that fresh investments into DSP Micro cap fund have been temporarily suspended.
2 – If you are already holding DSP micro cap fund you may continue with your investments and future SIPs too (if your time horizon is long term). Do not go by a review of one Analyst.
Thanks for the prompt response Dear Sree!
I already have Rs 28000 + 2.5 years of future SIPs in DSP Micro cap and I have 14000 + 2.5 years of future SIPs in Franklin small.since the portfolio overlap was 16% of these funds, I kept both.
Now as part of the portfolio refining, I am planning to exit out from one fund.
In that case which one you suggest?
a) Keepig both
b) Franklin Small
c) DSPBR micro cap
Also as mentioned in your Q&A Forum, I need to have ELSS requirement for tax purpose as well for coming years. My ELSS selection was DSPBR tax plan.
a)If you suggest to keep both I will start new investments in DSPBR tax plan.
b)If you suggest to keep DSPBR, I will do SWP Franklin amount and will invest in DSPBR tax
c)If you suggest to keep Franklin, I will do STP from DSPBR micro cap to DSPBR tax. (or) Can I do STP to Franklin tax?
My equity portfolio funds are below.
Large cap – SBI bluechip (20%)
Mid cap – Mirae Asset emerging bluechip (30%)
Multi cap ELSS – You need to advise based on above queries. (allocation is 30%)
Small cap – You need to advise based on above queries. (allocation is 10%)
My sincere apologies for raising more sub queries and thanks in advance for your responses.
Dear Hari ..Suggest you to copy-paste the above query/comment @ relakhs.com/forum and continue this discussion there.
Kindly create your Login ID and click on ‘Ask question’ menu tab to publish your question. Thanks!
Hi Sree,
Now this is in Q&A forum. Please check and advise.
If 2 fund A & B, 5 yr return same like20%, But SD,alfa etc. different.
After 5yr both fund Maturity value different ?
Dear Pankaj ..Past performance may or may not remain same in the future.
Kindly read: How to pick right mutual fund scheme based on risk ratios?
Sir,
You don’t understand my question.
My question regarding sd,alfa etc. Impact on Maturity value,if return(like20%) & time period (like 5/10yr) are same in 2 fund in any time(past/future).
Dear Pankaj ..If both funds give 20% return (as said by you) then where is the issue of different maturity value (though the risk ratios vary).
As a rule of thumb higher alfa, lower beta and lower SD is better so you should chose those fund if fund A and B giving same return. BUT as Sreekanth said maturity value will be same if % of return is same, though risk-reward ratio will be different.
Hi Sreekanth,
Thank you for your reply. I have read the above articles and finalized the below MF.
My goal is for child education which is great than 15 years and the investment amount is 5000/m and my risk level moderate.
1. SBI BLUE CHIP FUND – 1000
2. HDFC Mid cap Opportunities – 2000
3. Franklin India Smaller cos – 2000
Please review my portfolio. Is above funds are good? or need to change/switch to any other fund.
Also please suggest an ELSS fund for Tax saving and the diversification of the funds.
Thanks
S.Saravanan
Dear Saravanan ..You may kindly go ahead with your investment plan/choices.
Kindly read :Best ELSS funds.
You may pick an ELSS fund if tax saving is one of your investment objectives..
Dear Sree,
Many thanks for answering my previous queries. Now I have collated all my queries and need your review.
My Goal:
1. Need to have one crore for my retirement in 20 years
2. Need 40 lakh for Girl child education and marriage in span of 15-20 years
Risk ability: Moderate
Investment horizon: 20 years
Debt-Equity ratio: 30-70% (investing last 6 months)
Emergency fund: Keeping 3-4 months of monthly income
Medical coverage: Have term plan of 50L, will need to take for my parents.
Current Debt portfolio: PF – 1500 & RD – 2000 per month
Current Equity portfolio: (all Direct Growth plan monthly SIP for 3 years)
————————————————————————————————————————
SBI bluechip – Rs 2000
ICICI value discovery- Rs 1000 –> Need to remove this multi cap as I am planning to add one ELSS(multi cap)
DSP BR Micro Cap – Rs 1000
Franklin smaller comp- Rs 1000
I was having two small caps as their portfolio overlap is 15%.
———————————————————————————————————————
Now I am planning to refine my portfolio after reading number of mutual fund forums/blogs/articles considering my below requirements/understandings.
a) I need to diversify my portfolio and remove the small cap ratio to some extent considering future corrections.
b) I need to accommodate ELSS funds(multi caps) to my portfolio to get tax exemption as well as Growth creation (same 20 years).
c) Since bank FDs not in favor of good interest rates, I am planning to move to Debt funds to replace my FDs.
d) Further I want add one mid cap to diversify my equity portfolio to have each category of Large cap, Mid cap, small cap and multi cap(ELSS)
Now my queries are,
1. Are my understandings are correct?
2. Is that okay if I invest Debt funds through monthly SIP? or Lump sum is recommended for Debt funds?
3. Is the below portfolio looks fine?
SBI Magnum Short term gilt fund(Debt) – Rs 4000
SBI Blue chip (Large Cap) – Rs 3000
Franklin smaller companies(small) – Rs 1000
Mirae Asset Emerging blue chip (Mid) – Rs 3000
DSPBR tax Plan(ELSS/Multicap) – Rs 4000 –> Large cap oriented ELSS
Many thanks in advance.
Reply
Dear Hari,
As you are looking for comprehensive financial plan, suggest you to copy paste the above Comment at relakhs.com/forum .
Kindly create login Id and click on Ask Question on top menu bar.
Hi Sree, Done. Please check and advise.
Dear Sreekanth,
I am new to investing , can please suggest a mix of Large Cap, Mid Cap, Small Cap and Balanced fund for long term ( 10 + years ).
I am looking to invest 20k per month in SIP
Regards
Sunit
Dear Sunit ..Kindly go through the above list and you may shortlist the funds.
Kindly read :
How to pick right mutual fund scheme?
MF portfolio overlap analysis tools
Hi,
I am starting new investments from this month. Can I please request you to review my portfolio. My investment plan is for 5 years for all below SIPs I am choosing to invest. Please correct wherever possible.
Mirae Asset Emerging Bluechip-Reg(G) 2000
HDFC Mid-Cap Opportunities FUnd(G) 2000
HDFC balanced Fund – Growth 3000
SBI blue chip Funds – Regular plan (G) 1500
Birla sunlife frontline equity fund (G) 1500
I have already started Mirae Asset Emerging Bluechip-Reg(G) few month back but before starting other 4, it would be good if you review them and let me know if change is required.
Thanks in advance.
Dear Chandra,
As you have a time-frame of around 5 year, balanced funds & large cap funds are find and suitable.
Mid-cap funds are ok if you are ready to take high risk.
Hi,
My current portfolio as below. Please confirm whether i can go forward for long term
Birla Sun Life Tax 96(G)-3000(pm)
Franklin Tax Shield(G)-2500(pm)
HDFC Balanced Fund(G)-5000(pm)
Birla Sun Life FT Equility -3000 (pm)
Dear Avik ..You may continue with your investments.
Thanks Sreekanth for your suggestion.
I am also thinking for one midcap fund. Can i go for Franklin India Prima Plus Fund. Which fund category should i go (Mid cap or Diversified)
How is L&T income opportunities fund ? I have a 3 + year horizon to build retirement corpus. I am looking for a good debt fund with moderate risk.
Dear Mr Babu ..Are you planning to invest lump sum investment? Is it that you are switching from any other investment avenue to debt funds or you have to accumulate from here on..??
Hi Sreekanth,
I am 33 and I have started investing 26000 pm from Fy18, in all the 15 funds you have mentioned above. I have also checked from moneycontrol site and its the best funds available. Is there any way I can track the performance of all these funds, I am getting the report mailed to me from respective fund houses like nav details, but still it is always better if there is one place where I can track it.
Also,
I have an lumpsum amount of 20L with me in liquid funds, considering the current ‘bubbly’ market situation what do you suggest where should i invest?
All my goals like child higher education+marriage, retirement are almost 15+ years away.
Dear Rajesh,
Did you invest in all the above mentioned schemes or only in few?
Do you invest through websites of respective fund houses?
You may create a dummy portfolio on portals like Moneycontrol wherein you can track your portfolio performance with up to date NAV data.
May I know your investment objective and time-frame for investing in Liquid debt funds?
Dear Sreekanth,
1. I have invested in all the 24(including the above 15) mutual funds as all were having comparable returns and are best in class, there is no truly best MF, I invested in axis bank long term (elss) fund which was best till last year but not any more, so i thought why to bet on one best, lets divide it among the best. Do you think there is a logical error in what i did. I did SIP in all 15 funds for 1500 for retirement + tax planning.
2. Now i see i have a surplus of 20 lakh cash, i want to invest, till now it was invested in stocks but i am tired of watching stock market with regular job, not my cup of tea, so i am thinking of investing it for long term 15+ years to take care of child education and marriage.
3. Also to create an emergency fund i have invested 2.5L in liquid funds and reliance short term fund (simply save), do you think i have done the right thing.
Dear Rajesh,
1 – Too much diversification may not necessarily yield good returns.
Kindly read : MF Portfolio overlap analysis tools.
2 – Ok.
Suggested redaings :
Kid’s education goal planing
Retirement goal planning
3 -Liquid funds can be the right choice. However, you may consider a mix of Liquid fund, arbitrage fund, cash, FD/RD etc.,
hi,
I have started SIP in below funds,
Tata Tax India – 1000
SBI Blue Chip 1000
HDFC Mid Cap Opp 2000
Birla sun life tax 96 1000
Kindly suggest for Good portfolio OR suggest better options.. Thanks.
Dear Tushar ..May I know your investment horizon? (Time-frame)
For Tax saving 2 year & rest for 4 year..
Dear Tushar ..Kindly note that units allotted under each SIP of ELSS tax saving fund(s) are locked for 3 years and advisable to remain invested in equity funds for little longer period (especially investments in Mid cap fund).
Dear Sreekanth,
I sincerely want to thank you for this blog as it has vastly improved my knowledge regarding investments and tax saving.
I am 26 years old and following are my current monthly SIPs:
1. BNP Paribas Long Term Equity Fund (ELSS)- Rs. 2,000/-
2. Franklin India High Growth Companies fund – Rs. 2,000/-
3. ICICI Prudential Focused Blue Chip equity Fund – 4,000/-
4. ICICI Prudential Value Discovery Fund – Rs. 2,000/-
Now I am planning to invest Rs. 4,000 p.m. in DSP Blackrock Micro Cap Fund or Franklin Smaller Companies Fund for a time horizon of maximum 5 years.
Please guide which option is suitable.
Dear urvish,
Thank you for following my blog posts!
If your time-frame is around 5 years, you may invest the additional amount in your existing plans itself.
DSP micro cap fund has temporarily suspended accepting fresh investments.
Hi Sreekanth,
As the market is at its all time high so, I was just thinking about redemption of some of the best performers from my mutual fund portfolio at this level and use that money again to buy more number of units at the time of market correction. Though I am a long term investor and continuing my sip’s since 2010, for another 15-20 years. What’s your thought?
Today’s market level made me greedy to earn more…. 🙂
Thanks and Regards
Anil
Dear Anil,
Let’s say if market does not correct drastically in the near future, what would you like to do with the redeemed proceeds?
As you have been investing for the last 7 years, you might have noticed that it is very difficult to TIME the markets and no one can predict the future.
In case, if you have a need now, you may redeem and utilize the funds, else you may continue with your investments.
Hi Sir,
I have active sips in the following funds, please let me know if I need to consider investing in any one of the multi-caps also for good diversification. My investment horizon is 5-7 years.
Axis Long Term Equity Fund (ELSS) – 10k/month
ICICI PRU Balanced Fund – 10k/month
Franklin India Smaller Companies Fund – 10k/month
Thank you,
Lakshmi
Dear Lakshmi,
Axis LTE though it is an ELSS fund, we can consider it as a Diversified fund.
You may continue with your portfolio..
Hi Sreekanth,
I have 10-20 year retirement goal and keeping debt- equity ratio as 30-70%. Moderate risk taker. Can you advise which one of the below portfolio is better? I am planning to have a proper allocation in equity itself for diversification.
a) large cap fund,- 1, mid cap-1 and small cap -1
or
b) 3 Multi cap funds (Franklin high growth – G, ICICI Value discovery-G and Birla equity -G )
In option a –> Even Mid and small caps have large cap allocation in it. vice versa all funds have others in it.
In Option b –> Multi cap funds have a mandate to move according to the current market. i.e they can move it to any caps in which we can’t guarantee the proper equity allocation of mid,small and large caps.
Kindly advise.
Dear Hari,
May be, given a choice, I prefer to opt for one Multi-cap fund, mid cap and a small can fund.
Kindly read: How to pick right mutual fund scheme?
Thanks Sreekanth!
If I choose 2 ELSS funds (DSPBR tax plan -G and Birla Tax relief 96-G), would that be okay as the ELSS funds are considered as a multicap funds.
Advise the choice of selection of these funds?
Dear Hari,
Both are decent and consistent ones. You may consider them if tax savings is one of your investment objectives.
Kindly read : MF portfolio overlap analysis tools.
Dear Sree,
I already have ICICI – Value discovery fund (multi cap fund )in my portfolio. so if I add again these two funds for tax saving then mine would be large cap-1, Multicap-3 and midcap-1, mall cap-1. will that be a good portfolio?
Anyways I have two long term goals
1. Retirement –> 20 years from now
2. Child education –> 18-20 years from now
Can I use
Large cap-1 , mid cap-1 and small cap-1 for Goal 1 and
3 multi cap funds for Goal 2?
or else
shall I come out of value discovery and keep Large cap-1 , mid cap-1 and small cap-1 and multi caps(2 ELSS) as my core portfolio?
Please advise.
Sorry for making things little complex?
Dear Hari,
This looks fine : Large cap-1 , mid cap-1 and small cap-1 and multi caps(2 ELSS).
Kindly read :
Kid’s education goal planning!
Retirement goal planning!
Sree, Just to clearly understand, can I come out of ICICI value discovey fund?
Sorry, got it now. Thanks for your response. 🙂
hello sree,
I have heard that we can switch from one mutual fund to other? is it true?
If so can i switch from icici value disc to icici focused bluechip.
also how about the units gained from value disc fund. are they transfered to other.
please guide
Dear abhee ..Yes, you can switch, have to submit Switch form.
This will be treated as normal redemption and applicable taxes (if any) are levied.
Also do watch out for any exit load.
thanks sreekanth.
this is new to me.is there any article on this?
is this switch option available in MF UTILITY.
also when this option is to be used.
please reply.
Dear abhee ..I am not sure if this option is available in MF Utility platform.
Hello Sir,
I plan on the below Investments.My Investment horizon is 2-3 years.I’m looking for wealth creation.I can approximately save 40,000/- per annum.Please advise if I can start them.
Axis Long Term Equity Fund – Regular Plan (G) – 11,000 – Existing SIP
L&T Midcap Fund – Direct Plan (G) – 11,000 SIP
Birla Sunlife MIP II Wealth 25 Plan – 11,000 SIP
DSPBR Natural Resources and New Energy Direct-G – 7,000
Thanks
NT
Dear NT,
You may kindly avoid investing Equity oriented funds if your time frame is around 2 years.
You may consider MIP fund but be aware of the risks associated with MIP funds.
Kindly read : What are MIP funds?
Thank you Sir. On reconsidering, I don’t see an immediate need to stop the SIP’s by 2 years. I can try to mange to pay it for about 5 years as I’m looking for good returns.
Please advise if I can still go with the same ones. Also, I’m not looking to invest in too many SIP’s . If you want me to reduce some of them , can do that. I’m looking to save about 40K per annum and get good returns.Please advise.
Thanks,
Niketa
Dear NT,
Kindly note that Axis LTE fund is a tax saving ELSS fund, the units allotted under each SIP are locked are for 3 years.
Birla MIP fund is fine.
You may avoid DSP fund.
There are better funds in mid/small cap category. But given your time-frame of around 5 years, you may consider an equity oriented balanced fund instead. Ex – HDFC Balanced fund / SBI balanced / ICICI Balanced fund.
Thank you Sir.
Hello Sree,
Request you to review my portfolio: All investments are made using SIP for >15+ years.
Axis LTE – Direct(G) – 4000/month
ICICI Pru val Dicovery – Direct(G) – 2500/month
UTI mid cap – Direct(G) – 25000/month
Lump investment of 9000 Rs in DSPBR microcap. I was planning to start SIP in this but further investment in this fund has been temporarily suspended.
Debt investment in PPF.
Now, I am planning to add two more funds using SIP. Request you to suggest:
1. Franklin India Smaller Co – Start sip of 2500/month
2. Want to add one balanced fund. Can you suggest me from these 3: ICICI balanced/sbi magnum balanced/Tata balanced.
3. I am investing in Axis LTE from sept-15. I have read that performance of this fund has been deteriorated in last 12 months. But I think i do not need to worry if investment is for > 15 years. Please advise on this.
Dear Mukul,
You may continue with your portfolio, its ok.
You may consider Franklin Smaller companies fund as an alternate to DSP micro cap fund.
You may consider SBI Balanced fund .
3 – Yes, let’s give the fund some more time ..
Hi Sreekanth,
Thanks for your effort to educate us.
I want to know whether the returns mentioned above is after deducting the expense ratio or before it?
Yes, after accounting for all types of expenses. (NAV stands for NET Asset Value)
Dear Sreekanth,
I am a avid reader of you r blog.
As per various research, for last one year i am having SIP (5000 each) in following funds all for long term goals
SBI Blue chip
Franklin small co. fund
HDFC balanced fund
ICICI Value discovery fund
I have selected these funds by using your method of diversification & avoiding overlap.
I have some additional fund from this month which i can use as additional SIPs
Will you recommend increasing SIP amount to above funds. or starting any other good funds (All long term goals 8+ years) ?
once again thanks for your awesome blog
Sreejith
31 yeard Old
Dear Sreejith ..You may pick one Mid-cap fund, if you would like to be more aggressive with yoru investments. Ex : Mirae Asset Emerging bluechip fund.
Else, you may increase the SIP amounts of your existing funds itself.
Thank you for following my Blog!
I am Deepak Bhattacharya, My father is retired now and wanted to invest 5lakhs rupees as lump sum in mutual fund, which will give at least 12% return annually i.e 60,000 annually which means 5000 monthly.
Please guide that which mutual fund has given at least 12% return every year more or less, whether it is balanced fund, debt fund, elss fund or equity fund.
I know there is no guarantee of any mutual fund since it is linked to market but anyways I want an idea of the same.
Thanks a lot. Awaiting for an reply
Regards,
Deepak Bhattacharya
Dear Deepak,
For how long he would like to get this fixed and regular monthly income? Can he afford to take risk on this investment?
Hi Sreekanth,
He can take moderate risk , but not high level risk so I think balanced fund is better, what do you suggest. Time horizon is 3-5 years.
Thanks,
Deepak
Dear Deepak,
If so he can set up SWP (systematic withdrawal plan) for one Equity balanced fund and one MIP Fund.
Read:
Best Balanced funds
Best MIP Funds.
why certain funds like Tata Equity P/E funds which is a diversified fund is missing from your report, the fund has giving 43% returns in 1 year. I just want to understand, is there any specific region to omit it from diversified category?
Dear Rajesh ..The fund may have given abnormal returns recently, but it is not a consistent performer if we take slightly longer period.
Hi Sreekanth,
I want to invest in small cap MFs. I have already invested in Franklin smaller companies fund, wanted to invest in DSP micro cap or SBI small n mid cap, but investment in both these is suspended.
Therefore please suggest alternative funds in this categories.
Dear Vibhuti ..May be you can consider Reliance Small cap (but kindly note that risk grade of this fund is on higher side).
i am regularly reading your articles on all financial products and am very thankful for the extensive coverage.
very useful for people who are in the financial arena and for those who want to learn the nuances of financial planning.
pichai
Blog: moneyandmany.com
Thank you dear Pichai for following my Blog.
All the very best!
Hi Sreekanth,
I wanted to invest 10 lakhs in mutual fund, i would like to take moderate risk but would like to invest only for short term say 18-20 months.
I am thinking of investing 50% of amount in debt mutual funds, 20% in Balanced funds 10% in equity funds and the remaining 20% in FD. Is this a good option or you have some other suggesetion.
Please advice.
Dear Avinash,
You may go ahead with your investment plan.
Kindly have a look at MIP Funds too.
But plz be aware of the fact that all types of MFs (even Debt funds / MIPs) are subject to market risks and returns are not guaranteed.
Thanks Sreekanth,
I have gone through the MIP Funds link provided by you and the funds mentioned over there seems a very good options to invest. (Please keep up the good work going as I seriously think that this will help new investors like me to gather useful information regarding investments)
Actually my motive is to get more interest than the FD(> 7-8%) I am Ok even if I doesn’t get good returns , but just wanted my principal amount to be safe, I would be watching the funds performance on regular basis, just need some info if one of the fund is not performing well can I withdraw from it any time ?
Dear Avinash,
All most all types of funds allow any-time withdrawal (subject to exit loan / taxes if any).
Plans like ELSS Tax saving funds (3 year lock-in), Fixed maturity plans (FMPs), close-ended schemes etc do not allow any-time withdrawal.
Kindly note that debt funds or equity funds, your principal may not be safe (just a word of caution note).
Yes, you need to track your portfolio once in a while..
Hi Sreekanth,
This is regarding L&T value fund that you have given under Diversified list. As per value research, this fund is a mid cap fund. Could you please confirm if this is a diversified fund and if it is possible to get this info that how much is allocated to largecaps and how much is allocated to midcaps. I have icici ivalue discovery fund in my portfolio and want to have one more diversified fund. I see that these 2 funds have overlap of just 12%. Could you please advise if my choice is OK or if you have some other suggestion.
Thanks.
Dear Saurabh,
It is a multi-cap fund, however the fund currently has higher allocation to mid-cap stocks. Do note that it has an allocation of around 40% to large-cap stocks.
The same fund has been categorized under ‘Diversified fund / Flexi-cap’ by moneycontrol & Morningstar.
Investment Objective of the Fund :
The Scheme seeks to generate long term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, in the Indian markets with higher focus on undervalued securities. It could also additionally invest in Foreign Securities in international markets.
Thanks for the response Shree.
One more add on query – I want to invest some lumpsum amount (1 lakh). Could you please advise which MF can be good for this. I am thinking of investing in some fund with monthly dividend. If this is a good option, can you please advise few good funds
Thanks.
Dear Saurabh,
May I know your investment time-frame? Are these dividends used to meet your monthly expenses or for re-investment? (purpose??)
There is no investment timeframe. Frankly speaking, i don’t need this monthly dividend. Only reason is to opt for this option is to minimize risk of lumpsum invested amount. I am in 30% tax bracket FD is not a option for me anymore.
Dear Saurabh,
If you do not require dividend income, suggest you to go for Growth option.
IF you do not have a time-frame (assuming you can remain invested for few years) and can afford to take risk, you may consider a Balanced fund.
Hi Sree,
Thank u so much for good info… is that DSP Micro fund is stopped now ?
Dear sudhakar ..They have temporarily suspended New investments / SIPs.
Hi Sree, Good morning !
My current investment details :
Axis LTE Mutual Fund( Tax) 4,000
Franklin Mutual Fund(Tax) 4,000
Franklin Smaller co Mutual Fund 4,000
Mirae Emerging Bluechip -Direct (G) 4000
LIC Quartley installment ₹ 5,163.00
I am planning to invest one more fund for 4k monthly which would be short term 1.5 to 2 yrs. I can take risk. Let me know which will be best to opt .
few which i selected as :
1.Birla Sun Life Small and Midcap Fund – Direct Plan (G)
2.L&T Midcap Fund -Direct (G)
3.Birla Sun Life Frontline Equity Fund
4.L&T Emerging Businesses Fund-DP (G)
or any other….
Dear sudhakar,
You may share details of your LIC policy (Plan name, commencement date & tenure).
For short term – you may consider MIP fund.
Read : Best MIP funds.
Suggest you not to consider mid-cap or equity funds for very short term.
May be at best, you may consider a balanced fund.
Hey Sree. Again thanks for your help !
LIC details – Started on 27/04/2011. Its Jeevan Anand policy for 25 years. Premium – Quarterly- 5163
and if i like to invest 7000 for next 1.5 years you would suggest to invest in 1 MIP or 2 MIP 3500 each please
Dear sudhakar,
If you have dependents, suggest you to buy a Term insurance plan.
Kindly read:
Traditional life insurance plan – a terrible investment option?
If life is unpredictable, insurance cant be optional!Best Term insurance plans.
Hey Shree thanks again.. can u respond to this pls as well
if i like to invest 7000 for next 1.5 years you would suggest to invest in 1 MIP or 2 MIP 3500 each please
Dear sudhakar ..If you can afford to take risk, may be, you can consider investing in Conservative MIP Funds.
REad : Best MIP Funds.
Else, consider investing in Short term debt funds.
Thanks Shree.. when i look at mid cap fund i see returns are very good , in fact close to 40% for 1 yr , 2yr and 3yr so on….
any reason to avoid these fund for short term though they are doing well ?
Dear sudhakar ..Kindly note that past performance may or may not be repeated in future.
Mid/small cap funds – generally out perform other categories when markets are on a roll.. At the same time, when markets turn negative, mostly these are the first to get hit and also the downturn can be fast/severe.
But, if investment horizon is long term, the probability of getting decent return on these funds can be high.
Hi,
Myself Nilesh Patil ( Age 30 Yrs) and having 2 yr Daughter.
I am investing in Mutual Funds since last 5 months and planning to invest some more fund for SIP Long term one for 20 Yrs and another for 25 Yrs of Rs. 2500 from June 2017. Also I am looking for Term plan , Health Insurance Plans and best Child Education plan
Mutual Fund investments-
1 Birla Sun Life Equity Fund -Dividend Payout – 5 Years – 5000 (Monthly) from Dec 2016
2 HDFC PRUDENCE FUND – MONTHLY DIVIDEND PAYOUT – 5 Years – 3000 (Monthly) from Dec 2016
3 Franklin India PRIMA FUND GROWTH – 25 Years – 5000 (Monthly) from Dec 2016
LIC Policies
Policy-Name Term Policy-End Sum-Assured Premium-Amount Payment-Mode
Jeevan-Saral 12Yrs 2021 2,50,000 6065 Half Yearly
Jeevan-Saral 20Yrs 2028 5,00,000 6125 Quaterly
Jeevan-Saral 25Yrs 2035 10,00,000 12393 Quaterly
Jeevan-Anand 30Yrs 2043 10,00,000 14404 Quaterly ( There is 10 policies each policy for 1 Lacs)
Please let me know your suggestions which Mutual Funds should I invest as SIP for Long term (20 and 25 Yrs). Even recommend the best Term and health insurance . Also the advice your views on LIC policies
Thanking You in advance..
Nilesh Patil
Dear NILESH,
You may avoid investing in Child plans and may continue with your investment plan in MFs.
Your MF portfolio is ok.
You may also pick one Small cap fund like Franklin Smaller cos fund.
Kindly buy a term plan at the earliest and then you may discontinue your existing LIC policies (except the first one, as the maturity is in near future 2021).
Read:
Best online term insurance plans.
Traditional life insurance plan – a terrible investment plan?
How to get rid off unwanted life insurance policy?
Hi,
Thanks for suggesting your views and response.
As per your views which Term insurance Plan should we Buy. I am looking for me and my wife OR Which is the Best options for both of us approx for 1 to 1.5 Crore.
Please tell me your opinion of investing in Sukanya Samriddhi Yojana for my Daughter and for the retirement in National Pension Scheme ?
Should I go with Franklin Smaller Cos fund for Long term ? OR any other Funds you can recommend in MF.
If any other investment OR any other options would like to suggest ?
Thanks for your great effort and help !
Regards
Nilesh Patil
Dear NILESH,
Any term plan should be if ok, it is affordable and meets your requirements. Kindly go through suggested article on term plans.
Sukanya Scheme is a decent long term savings option.
You may go ahead with franklin fund for long term.
Read: List of best investment options!
I m 70yr old woman. I transferred my & my son’s PPF a/c from GPO to SBI on 28 September 2016.
By rule intt. for full financial yr is given by bank in PPF.
GPO & some bankers told me ask the bank to update interest in system from April-September 16 in form of accrued interest, because if the interests has not been given by 31 march 17 & manually deposited by 2017-18, it will lead a new problem in 2017-18,Because PPF a/c gives interest only on 1.5 lac.in a yr deposit.
I visited the bank many times & bank official told me that they have contacted head office & IT team that system will give automatically give.
But I did not get by 31 march 2017.
Where should I complaint,RBI,finance ministry ? Plz give me link
Dear Laxmi Ji,
You may wait for few more days and check with your banker only.
You may submit your grievance at this National Savings Institute portal..
Dear Mr Reddy
I have invesedt in NFO SBI dual advantage fund Series III which have 3 Years lock in period. Now 3 years is overs and return is not expected as. Should I exit from the fund or invest in any other scheme or should I continue with this fund.
Thank You !
Dear anshul ..May I know your investment time-frame (for reinvestment) and ok to take risk?
Hello Sreekanth,
I’m new to your website and I would say its really informative for mutual fund investment. After reading your suggestion and advise I have invested in following funds as a SIP for Rs. 2000 each every month (so far completed 9 months)
1. ICICI Pru Focused Bluechip Equity Fund – G
2. ICICI Pru Value Discovery Fund – G
3. Franklin India Smaller Companies Fund – G
4. SBI Magnum Balanced Fund – G
5. SBI Pharma Fund – G
I have few questions:
1. Do I continue with above funds ? ( I have 5 yrs target objective).
2. I have already stopped SBI Pharma Fund. Should I switch to any other SBI fund or hold it till it give acceptable returns ?
3. Also I have 4 Lacs in FD which is going to mature soon. I want to invest in mutual funds for 15 yrs for my daughter future. Need few funds which will be stable and give me 12-15 % returns.
I don’t have any savings apart from above investment.
Your advise would be appreciated.
Many Thanks.
Prabhat
Dear Prabhat,
1 – You may continue with your investments. If your time-frame is around 5 years, suggest you to have lower allocations to Small cap & Sector oriented funds.
2 – You may switch to Balanced fund. Kindly be aware of MF taxation rules.
3 – You may consider Franklin Smaller cos fund & Balanced fund.
Read: Kid’s education goal planning.
Thank your for your valuable suggestion Sreekanth. Will follow the same.
Hi Sreekanth,
I am sitting with a surplus cash of around 5 lacs in my savings account for almost 2 months and waiting for the ‘right’ levels to invest in Equity and Balanced Fund as a lumpsum.
My investment horizon is medium to long term (> 5 years) with 11-12% expected returns, but uncertain about entering the markets at the current ‘all time high’ levels.
Secondly, I am not sure how exactly STP works but i have seen you advising people with similar queries, to put the money in a liquid fund and let it systematically go to equity and balanced funds of the same house. I am sorry but it sounds little cumbersome to me…would it not be better to do the same thing on a periodic level on your own?
I know i am unsuccessfully trying to time the markets but would be your best advice for me in this scenario?
thanks for reading this patience 🙂 look forward to your reply.
Dear Rajat,
Kindly do not try TIMING the markets! Most of the times it may turn out to be futile.
Kindly start investing with a long term orientation..
We enter into the markets with a hope that they achieve new heights in future, so just do it now! May be systematically.
There is no right or wrong answer on SIP/STP Vs lump sum/manually investing. Personally, I follow a mix of both, I let my SIPs continue and at the same time invest additional lump sum amounts once in a while when markets are in downward trend.
Read: SIP Vs Lump sum investment.
Hi Sreekanth,
I am planning to invest 14L amount.
2L–Largevap–Birla sunlife frontline equity
6L-HDFC Midcap fund–(STP though HDFC Liquid fund for 12 months)
2L–L&T value fund—-(Through STP–for 12 months)
2L–Franklin india Primafund–(Throguh STP-for 12 Month)
2L-Franklin india small companies(Through STP for 12 months)
Kindly suggest is it the better investment, or can I reduce the funds.
This money want to invest for long term(more than 10 years for my son education..)
Alos tell me what is best way for STP –Liquid funds or Arbritage funds. I want to do STP for 12 months.
Dear narayana,
The advantage with an Arbitrage fund is, STPs on the units held for more than 12 months, gains on them (if any) are tax-free.
Read: What are Arbitrage funds?
Portfolio looks fine!
Read:
Kid’s education goal planning!
MF portfolio overlap analysis tools!
Hello,
This is Vamsee, off late I have been following your website, its very informative for Budding investors like me.
Details are presented in a simple manner, with lot of advise on different investment items.
Would like to thank you for this.
But coming to my query, my mother is a retired government employee, she is planning to invest a portion of her retirement amount in to Mutual Funds.
Can you please suggest few funds where she can investment her hard earned money, so that the amount would be safe & also provide some support for raising inflation & other medical emergencies.
Other than mutual funds, what other investment items you suggest for elderly retired people & how should one wisely split the amount between them.
Please advise.
Thanking you in anticipation.
Regards,
Vamsee
Dear Vamsee,
Thank you for following my blog posts!
For Emergency fund – You may pick Arbitrage fund & some amount in FD/RD.
She may pick one Conservative MIP Fund.
Kindly note that mutual funds are associated with risks and returns are not guaranteed. If you need returns over and above inflation, one has to take risk.
Read:
MFs are subject to risks!
List of investment options!
Does she has adequate Medical insurance cover?
Hi Srikanth,
Thanks for the quick & fast reply.
My mother is a retired state government employee, she has the govt issued health card. Apart from that, I have opted for a medical cover in my company.
As per your suggestion, MIP looks good, where the risk rate is low n returns are also decent.
Let’s assume she wants to invest an amount of 10₹ (just assumption), how much would you advise her to invest in MIP & other investment products, so that she all the below things.
As she has the plans of investing lumpsum, what is breakage that you suggest among MIP & other investment products, so that she can be secured over all.
Regards,
Vamsee
Dear Vamsee,
Kindly note that in the next couple of years, MIPs/Debt funds may not give the kind of returns they had given in the last couple of years.
To safeguard principal and get monthly returns, she may consider Post office MIS around Rs 4.5 Lakh.
She can also consider Secured NCDs with monthly pay out option if regular income is required else cumulative option. (Read: Muthoot finance secured NCD issue April 2017)
Remaining amount can be invested in a conservative MIP fund.
Dear reddy sir,
I am very much learn from your blog,
Last 2 year I am invest per month 5000 each fund as per below
1.icici Pru value duscovery growth.
2.hdfc mid cap growth.
3.franklin smaller comp. Growth.
4.hdfc balance fund growth.
5.franklin tax.shield growth. For 80c
All fund is direct and invest for 10 year,
I should to continues this fund .
Dear mahesh ..Kindly continue your investments ..
Hi,
I have Rs. 5000 SIP in “Reliance Gold Savings Fund (G)” since last 3 years apart from other SIPs in equity fund, FD, RD etc. Till date it has given approx 0% return. Should I continue with this SIP or stop it?
Regards,
Chandra Prakash
Dear Chandra ..Investments in Gold can be more risky than other investment avenues.
Read: Is Gold still the safest bet?
Dear Sir,
My age is 25 years. I am working in a government organization on a contract basis and also pursuing higher studies. I want to start investing around 3000 per month for achieving long-term goals. I have no idea of investment in mutual funds, equity, etc. Can you please guide me, where and how I should start investing?
Dear Divyansh ..Kindly first set-up your financial goals and then pick suitable invesment options accordingly.
Suggested readings:
How to create a solid investment plan?
Blocks of Financial planing Pyramid!
List of best investment options!
My MF picks.
Thank you, sir, I will go through the links you have provided.
Dear Sir/Madam,
I am investing in 3 SIP. Total Rs. 10,000 Per month.
1) Icici Value discuovery fund(Growth)
2) Axis Long term Equity fund
3) Dsp Black rock micro cap fund
Total Rs. 1.20 lakh per year for tenure of 10 years. Expecting 30 lakh return total on 10th year. Am Doing right investment or not pls guide. On the basis of Fund pls guide, whether i will get 30 lakh for my financial goal or not??
Regards,
Chintan
Dear Chintan,
If we assume expected return as 12%, your Rs 1.2 Lakh per annum investment for next 10 years can fetch you corpus of around Rs 21 Lakh.
You may continue with your investments (portfolio).
Hello Mr. Reddy
I want to invest monthy 3000 in SIP for five years goal prospects to buy a house for myself or helping my parents. I am new in this kindly suggest what the beginner step and what is the best return i will receive. Thanks
Dear Akansha,
If you are aware of risks associated with Equity funds, you may consider investing in a Balanced fund.
If you do not want to take too much risk, you may have a mix of one conservative MIP Fund + one Balanced fund.
Ex: Birla MIP 5 plan + HDFC Balanced fund.
Sir,
I don’t want loan or partial withdrawal in my PPF.
Can Over draft(O.D.) against PPF possible ?(like OD against Fd)
Dear Pankaj..It is not possible to take OD against PPF.
sir,
I am bhanudas gaonkar i have stop my LIC JEEVAN ANAND POLICY and taken TERM PLAN of 1cror, i have paid lic premium for 6 years ,shall i surrender this policy kindly suggest or any other option.
bhanudas gaonkar
Dear bhanudas,
May I know the policy tenure?
Kindly first buy a term insurance policy and then you may discontinue the existing one.
Suggested articles:
Top term insurance plans.
How to discontinue unwanted life insurance policy?
Dear Mr. Sreekanth
I am 66 years of age and have about Rs.40 lacs invested in mutual funds (ELSS) and stocks. Now i wish to sell them and invest in SWP for 5 years with a monthly income of Rs,25000/- . Actually i do not need the Rs.25000/- for my monthly expenses. That is met by my pension and interest on FD. I plan to invest the monthly Rs.25000/- in SIP for 5 years.
Is this a good idea? If so, which mutual fund you suggest for SWP considering my age? I dont mind a balanced fund. Also what funds can I look at for SIP?
Thanks. I enjoyed reading your blog. This is my first visit and have subscribed to your newsletter.
Dear Ramaswamy Ji,
Thank you for subscribing to our Newsletter!
If I understand you clearly, your SWP time-frame is 5 years and you would like to re-invest the withdrawn amount (Rs 25k) again in SIPs for next 5 years?
May I know the objective for this strategy?
Sreekanth Ji
With my limited knowledge i thought this is best strategy to grow money.
Am looking for expert advice to know if this is a good method.
Smiles
Dear Ramaswamy ji,
If your investment objective is grow your money / wealth accumulation, instead of SWP, you may redeem units from existing funds (if you think its too risky to be in funds like ELSS) and invest in Balanced funds with Growth option (may be through STPs) for a period of say next 3 to 5 years.
Kindly read: List of best investment options!
Hello Sreekanth,
First of all let me thank you for educating us about MF. After reading your blog on a regular basis I have convinced myself to invest in MF. I am 34 yr, married, have a daughter (3 yr age) and monthly income is ~ 80 k. Here is my profile:
A term plan (Max Life) of Rs 60 lakh. health insurance of 5 lakh (family floater plan – Apollo Munich) along with the coverage from my company (3.0 lakh). I am also planning to buy an accidental coverage for myself soon…
here is my financial plan:
I have started allocating emergency fund. Aiming for Rs 3 lakh at the end of this financial year (Savings+FD+ Arbitrage fund (this is because I am at 30% tax bracket and holding period will be > 1yr for arbitrage). Q-1: Arbitrage fund good option for emergency fund? or should I look for some liquid fund?
For any ‘intermediate(5-8 yr) Expense’: Birla SL MIP (II) Wealth-G (3000/m) (for 2 yrs investment). Q-2: SIP or lumpsum (36 k/y)?
Daughter’s education and marriage (15 yr to 20 yr):
Investment planning: SSA: 2000/m; Mirae Emerging Blue Chip-D-G (3000/m) (also make additional investment in MAEBCF after 2 yrs as I do not have any particular aim for ‘intermediate expense’)
For my retirement (20-25 yr): EPF (6000/m, deduction at the source), PPF (2000/m), Axis Long Term Equity (3000/m; EPF+PPF+SSY+ELSS – 1.5 lakh for tax savings), Franklin India Prima Plus (4000/m), Franklin India Smaller co (5000/m) and Tata balanced Fund (3000/m). All are direct-growth.
Please let me know your suggestions/comments about allocation of fund/equity-debt ratio etc.
thank you in advance and keep educating us…
Dear Basak,
1 – As you have a mix of Savings ac + FD in emergency fund, you may consider an Arbitrage fund. But do note that there can be Exit load on this fund and you may get the amount on redemption only after couple of days.
2 – For medium term goal – You may consider an aggressive MIP + an Equity oriented balanced fund like HDFC balanced fund too.
3 – Kids’ Education goal – You may kindly go ahead with your investment plan.
4 – Retirement goal – Axis LTE and Franklin Prima plus both have higher allocation to Large cap stocks. But both are good funds, can opt for Axis alone if tax saving + multi-cap is the requirement. So, if you want to take more risk, you may consider one more Mid-cap fund.
Dear Shreekanth,
Thank you very much for the reply. I will follow your suggestion. Just one more question, what should be the ideal asset allocation for equity funds (~15 yr horizon, I am willing to take calculated risk)? As of now, equity:debt – 70:30. But within 70% could you please suggest allocation of fund in Multi-cap:balanced:Mid-cap:small-cap?
Dear Basak,
I believe there is no fixed thumb rule for asset allocation in Personal finance. It may vary from investor to investor (depending on his/her financial goals & investment time-frame).
As your horizon is 15+ years, you may allocate higher amount to Mid/small cap funds.
hello sir i am praveen kumar age 29 i want to invest 12000 rs pm as sip in eqity mutualfunds for 3 years for the purpose of buying a house. i want to spilt the amount so please suggest me three funds that i can go for. i am already investing 1000rs in each sbi blue chip and mirae asst emeg blue chip for long term returns. please reply
Dear praveen,
If your investment horizon is 3 years, you may kindly ignore investing in Equity oriented funds.
Read: List of best investment options!
sir i want to invest the amount of 8000 per month for long term returns i have short listed the following funds SBI BLUE CHIP
ICICI VALUE DISCOVERY
MIRAE ASSET EMEGING BLUE and i wanted to add a small cap fund to my folio please suggest me one fund among sbi small and mid cap reliance small or franklin smaller companies fund
Dear praveen,
You may pick Franklin Smaller cos fund and portfolio looks ok..
thanks for your reply sir. i want to go with these funds
Sbi blue chip-2000
Mirae asset emer blue-3000
Icici pru value discovery-2000
Franklin smaller cos-2000
all these are as a long term investment and
HDFC balanced- 4000
ICICI pru Balanced-4000 for mid and long term purpose.
PLEASE suggest me sir shall i continue with this folio. shall i go with the other funds please suggest i any, is my sip amount is well divesified or not. Please reply
Dear praveen ..You may kindly go ahead.
Suggested readings :
How to pick right mutual fund scheme?
MF Portfolio overlap analysis tools.
thanks for your reply sir. i have gone through portfolio overlap tools as you have suggested.
as i am already investing in sbi blue chip-direct
mirae asset emerging blue-direct
and now i am adding Franklin HGC fund- direct
icici pru Balanced fund-direct
Hdfc balanced- direct
franklin smaller companies-direct
please give me your suggestion need any changes? please give reply
Dear Praveen..You may go ahead..all the best!
Dear Sreekanth,
I have some investments in SBI Magnum balanced fund, last year’s performance seems to be not good comparatively, Its returns are below category average though it has better number over 3 year’s period. Do you think it’s better to slowly move the investments to another balanced fund or we can wait and see for some more time?
Dear Eswar,
You may give it some more time..let’s not churn the portfolio based on short term poor performance.
In case if it consistently renders poor show, you may switch to some other balanced fund.
Hi Sreekanth,
Thanks for such a detailed information. you do lot of hard work to give all these information to us.
I am new investor, I have one query below –
Shall I invest in Mutual Fund or Share market for good return or Combination of both?
I have read many article on google but couldn’t get any good idea. what is your opinion on that?
Dear Manish,
If you have the required skills to identify right stocks at the right time, which are available at the right price, you may consider Stocks too.
Hii,
I am 26 and keen to start SIP of rs 6000 monthly for long term.
I was looking to invest in following funds:
1. Franklin Smaller Companies – 1500 monthly
2. Mirae Emerging Bluechip Fund – 1500 monthly
3. Canara Robeco Emerging Equities / ICICI Value discovery fund – 1000 monthly
4. Franklin India Highgrowth companies – 1000 monthly
5. Sbi Bluechip Fund – 1000 monthly
Kindly suggest, should I go with this or need to change some??
Dear Manish,
3 – Canara fund is a small cap oriented fund. If you pick Franklin Smaller cos fund, you may ignore Canara fund.
4 – You may pick either ICICI Pru value discovery or Franklin Higher growth cos fund.
Suggested articles:
How to pick right mutual fund scheme?
MF portfolio overlap analysis tools!
Hello,
Thank you so much for your reply.
I am a bit confused between this three fund.
1. Icici value discovery.
2. Franklin high growth companies.
3. Franklin prima plus.
Kindly suggest considering (1500 monthly) for long term investment.
Apart from this I have thought of investing in:
1. Franklin Smaller Cos – 2500.
2. Mirae Emerging blue chip-2500.
3. Sbi blue chip-1500.
Also considering Tha above portfolio, I would like to have your opinion on TATA P/E fund.
Dear Manish,
Franklin prima plus has higher allocation to Large cap stocks than Franklin higher growth companies.
You may consider Franklin HGC fund.
Suggested readings:
How to pick right mutual fund scheme based on Risk ratios?
MF portfolio overlap analysis tools!
Hi Sreekanth,
First of all very thanks to you, for your blogs and for your most valuable advice which are really very helpful
I am 32 years old and I am planning to Start SIP from April 2017 onward and my goal is to create wealth of 1CR in next 14 Yrs to 15 Yrs for this I am planning to invest monthly total 10000 INR as SIP in each below fund.
In Large Cap
1. SBI BLUE CHIP FUND (1000)
IN MULTICAP
1. ICICI PRUDENTIAL DISCOVERY FUND (1500)
2. L&T Value fund (1500)
IN MIDCAP
1. MIRAE ASSET EMERGING BLUE CHIP FUND (2000)
2. HDFC MIDCAP OPPORTUNITY (2000)
IN SMALL CAP
1. FRANKLIN INDIA SMALLER COMPANIES (2000)
Please suggest me about above funds also suggest whether category wise /SIP diversification is good nor not.
In future I will also add one ELSS and one balance fund in my portfolio.
Regards,
Virender
Dear VIRENDRA,
You may kindly go ahead with your investment plan!
Most of the ELSS funds can be treated as Diversified or Large cap ones too. So, if you are planning to add one ELSS fund, you may drop one Diversified fund from the above list.
Read:
Best ELSS funds to invest in FY 2017-18.
MF portfolio overlap analysis tools!
A simple calculation says, if you expect returns of 12% per annum and looking for 1 Crore as target value after 15 years, you need to make monthly investment of 19818 rupees throughout this period. But again you can start with 10k per month for now and keep increasing the instalments as and when you can afford. Happy investing 🙂
Thank you Tarun for sharing your views! 🙂
Hi Sreekanth,
Whatever I know today on investments and basics is mostly because of you and your blogs, so again a big Thanks to you. Keep enlightening us 🙂
Thank you for your kind words 🙂
Let’s learn & grow together!
Kindly share the articles with your friends!
Hi Sreekanth,
My goals are long term 10 Yrs & 15 Yrs so i am mostly investing in mid cap funds. But some where i read – mid and small caps valuations are at very high and remarkable corrections are expected in near future.This may lead higher volatility and lower returns. Is this true & if so then we should concentrate @ large caps ?
Regards,
Nicolas
Dear Nicolas,
As you are investing for long-term, if at all such a dip occurs, don’t you think its an opportunity to buy more additional units of your existing mid/small cap funds??
No one is sure what happens in future! We need to invest as much as possible and hope for the best!
At the same time, one needs to have a well diversified portfolio.
Hi Sir,
I want to invest in lump sum and sip for mutual funds as now fd interest rates are very low.
I have two queries as below:-
—Which one is better SIP or Lump sum though they have own qualities?
—How much amount should be good to invest in lump sum? (like
Thanks
Shashi
Dear Shashi,
Invest in mutual funds based on your goals and not just because FD rates are low!
May I know your investment goals and time-frame?
Read : SIP Vs lump sum investment!
Sir,
I want to invest in two tax saving MFs through SIP @ 1000 Rs . each. One for short term (3 years) and second for long term (15 years). Please tell me the most suitable MFs . I also want to invest 3000 Rs. pm for Postal Life Insurance. Kindly suggest me whether investing in PLI is a better option or not.
Thanks.
Piyush
Dear Piyush,
If you would to invest in ELSS funds, kindly do so provided you have long investment horizon.
For short term (3 years), better not to consider an ELSS fund investment.
May I know why do you want to buy PLI plan?
Sir,
Thanks for your valuable advice. As you asked me about PLI, I want a secure investment thats why I want to go for PLI. Also I am told that ELSS fund term can be extended. Can you create a good portfolio for me ? if yes, please tell me your charges …..
Thanks
Dear Piyush,
This is free service and I do not charge anything for rendering this service through my blog!
If your requirement is life insurance cover, kindly buy a Term insurance plan (if you have dependents on you!)
Read: Best Term insurance plans.
Yes, you can continue your ELSS investments after 3 year lock-in period too.
Thanks Sreekanth !! I think, thanks is not enough for the commendable job you are doing. I will contact you for your valuable advice in future also.
Sure.
Keep visiting ReLakhs and kindly do share the articles with your friends 🙂
Hi…
I’ve been investing in SIP (Direct Plans) in following funds since last 8 months or so and planning to add one more fund with SIP of Rs. 1000 from April 2017. I want to stay invested in these funds for at least 10 Years. (My Current Age 29 Years)
Just let me know your views on my portfolio and my savings…
Mutual Fund investments-
1. Axis long term equity fund (ELSS) – SIP 2000/- per month from month of August 16
2. SBI Blue Chip Fund (Large Cap) – SIP 1500/- per month from month of Sept 16
3. DSP BlackRock Micro Cap Fund (Small and Mid-Cap)- SIP 1500/- per month from month of Sept 16
Which of the following fund I should select as further investment for long term benefits?
• Mirae Asset Emerging Blue chip Fund (Small and Mid-Cap)- SIP 1000/- per month from month of April 17
OR
• Kotak Select Focus Fund (Large Cap) – SIP 1000/- per month from month of April 17
Life and Term Insurance investments-
1. HDFC Click to Protect plus Term insurance plan – 1 Crore.
2. Max Bupa Health Insurance (Health Companion) plan for Me and Wife – 4 Lakhs ( Additional 1 Lakh Medical Insurance from employer)
My Earlier savings/Investments…
1. PPF Savings – Around 10000/- Per Annum (Since last 6 Years)
2. LIC life insurance Plan – 12000/- Per Annum (Life Insurance-Sum assured 2.5 Lakhs- premiums to be paid till Year 2030)
3. HDFC life insurance Plan (Sampoorn Samruddhi) – 20000/- Per Annum (Life Insurance premiums to be paid till Year 2020)
Please let me know your views on this..
Thanking You in advance..
Dear Samadhan,
Considering your age, existing profile & investment horizon, you may pick Mirae fund.
May I know the plan name of LIC and its commencement date??
Thank You for your views and prompt reply…
Plan name of LIC :- Jeevan Saral
Commencement Date :- July 2009 (Total Premiums paid = 16)
Actually I wanted to stop paying premiums for the same But somehow continued coz most of the LIC policies have very less surrender value..
Dear Samadhan,
As you a term plan, you may consider discontinuing the traditional LIC plan.
Read :
Traditional life insurance plans – a terrible investment option?
How to discontinue unwanted Life insurance policy?
Thanks a lot for your valuable advice and for sharing the links also…
You are doing a great job by helping investors who are new to financial planning..
Keep it up… Thanks again..
You are welcome dear Samadhan ..Kindly share the articles with your friends and keep visiting ReLakhs 🙂
I would like to invest 1L x 3 nos in Mutual fund specially Balance or MIP funds, minimum 2 years. – pls suggest which is good .
Dear Jothilingam,
Read : Best MIP Funds.
But kindly do understand the risks associated with MIPs before investing!
If your investment time-frame is 2 years, you may avoid equity oriented balanced funds.
Dear Sreekanth Reddy,
Thanks for your comment. Ok i will avoid MIPs considering the facts.
Now, i am ok for 4 years time frame of Balance funds. After review i short listed these following funds,
HDFC Prudence Fund
SBI Magnum Balance Fund
Reliance Regular Saving Fund Balanced
L&T India Prudence Fund
ICICI Prudential Balanced Advantage Fund
Tata Balance Funds
Is it ok or any other i need to consider to select. (1L x 3 nos or 0.5L x 6 nos)
To match the MIP i prefer dividend option, pl suggest or i need to go for growth
Best Regards,
Jothilingam
Dear Jothilingam,
Investing in multiple balanced funds may not be beneficial.
You may consider couple of good ones (out of HDFC/SBI/TATA/ICICI).
Kindly read:
How to select right mutual fund scheme?
MF portfolio overlap analysis tools.
I dint get this – ‘To match the MIP i prefer dividend option, pl suggest or i need to go for growth’, you may kindly rephrase this query.
Thanks – actually i mean, which options to select – growth or dividend with reinvest
Regards,
Dear Jothilingam..To keep it simple, you may opt for Growth option.
Sorry for delay reply –
Thanks for your updation. I about to finalize the following each 1L
ICICI Prudential Balanced Fund (MD)
HDFC Balanced Fund (G)
L&T Emerging Businesses Fund (G)
DSP Black Rock Micro Cap fund (G)
Pls comment
Dear jothilingam .. Fresh investments in DSP micro cap fund have been temporarily suspended.
You may pick Mirae Emerging business fund inplace of L&T / DSP funds.
Thanks for your suggestion
Now new requirement. i planning aggressive MFs value 50k x 4 nos = 2 L. Pls suggest.
Regards
Dear jothilingam ..Kindly go through above list..
Thanks – The report for the yer 2017 is ready good and informative and also comparison with year 2016 & 2015.
Can you pls forward the index of all the reports which you have created for our easy searching or reviewing.
Thanks and Regards,
Dear jothilingam ..Kindly reach me through the Contact page.
Dear Sreekanth, Many thanks for taking time to answer my previous queries! I am keeping my portfolio in 30-70 debt-equity ratio and investing last eight months. All goals are long term at-least after 10 years from now.
Now I want to increase my SIP amount in my portfolio to achieve my goals.
I understood that mid and small caps valuations are at very high and corrections are expected in near future.This may lead higher volatility and lower returns. Is this true ?
kindly advise which Cap I need to top up for my further SIP increment considering the current situation.
Please note I have one fund each in Large cap, Small Cap, multi cap categories in my portfolio.
Dear Hari,
As your time-frame is 10+ years, kindly do not worry about short term volatility. In fact, if you get such a chance then you may invest more additional amounts in your existing funds at lower NAVs 🙂
Which cap ? – Depends on your expected rate of return on your portfolio.
You may consider investing in all caps with a slightly higher allocation to mid/small cap over the next few years.
Thanks Sreekanth for your kind reply.
as you suggested i will not be investing in any more founds apart from below list i want to exit from one of the below funind so that i can keep only 6 funds please suggest , these sips are for children education i will keep it for 15 years ,but as of now 3 years sip i have selected
ICICI PRUDENTIAL DISCOVERY FUND G (LAST 8 MONTH MONTHLY 1000)
FRANKLIN INDIA SMALLER COMPANIES(LAST 8 MONTH MONTHLY 1000)
DSP BR MICRO CAP FUND (LAST 8 MONTH MONTHLY 1000)
MIRAE ASSET EMERGING BLUE CHIP FUND G(LAST 7 MONTH MONTHLY 1000)
SBI BLUE CHIP FUND (FROM THIS MONTH 1000)
HDFC TOP 200 (FROM THIS MONTH 1000)
ICICI TOP 100(FROM THIS MONTH 1000)
Sukanya samrudhhi (monthly 3000)
Dear ramakrishna,
First four funds are ok.
The next 3 are mostly Large cap oriented ones. So you may retain one of the three. SBI Bluechip can be considered.
Read: How to select the right mutual fund scheme?
Hi Sreekanth,
I am Planning to Start SIP from April 2017 onward. I am planning to invest in two different plans of 5000INR each. I want to get a bulk return(Above 30% PA) after 1 Year. Can you please suggest any two mutual funds which can fulfil my goal. Looking forward to hear from you.
Dear Neil..I believe it is very tough to suggest an investment which can give 30% returns in 1 year.
Dear Sreekanth
I urgently need your advise on investing and I hope you will be kind enough to read thru my financial situation and suggest.
1. I have managed to create a saving of Rs.39 lacs thru my 14 years of career work savings in total which is not invested anywhere.
2. I have invested Rs.6 lacs in Fixed deposits (in 3 NBF companies) for a tenure of 3 years. They are due for maturity in march 2019.
3. I have invested Rs.4.5 lacs (45000 each in the below 10 MFs)
Birla SL Frontline Equity – Growth, Birla SL Top 100 – Dividend, DSPBR Focus 25 – Dividend, DSPBR Focus 25 – Growth, DSPBR Micro Cap Reg – Growth, Franklin India Smaller Companies – Growth, HDFC Balanced – Growth, HDFC Mid – Cap Opportunities – Growth, ICICI Pru Value Discovery Reg – G and Kotak Select Focus Reg – Growth
Can you kindly suggest:
1. Since I have 39 L available, is it a good idea to invest say 6 lacs each say in 5-6 liquid funds to start with and then do an STP from the liquid funds?
2. If this is a good idea, could you let me know some good mix of investment options? My preference would be to first be able to attain good yr by yr returns with low risk and that will be my back up esp when i’m not employed, as my job is unstable.
3. Also is it a good idea to start investing thru the CAMS portal, as this offers me the option to invest in “Direct” funds?
Thank you
Vivek
Dear Vivek,
When you say ‘total which is not invested anywhere’, you mean to say that Rs 39 lakhs which have been accumulated over the last many years and is remaining idle?
May I know your financial goals and time-frame?
STP is a good strategy.
You can invest through CAMS in direct funds, but in CAMS serviced funds only I guess.
CAMS serviced Funds are : Birla Sun life MF, DSP Blackrock MF, HDFC Mutual Fund, HSBC, ICICI Prudential MF, IDFC MF, IIFL MF, Kotak Mutual Fund, L&T MF, Mahindra MF, PPFAS MF, SBI MF, Shriram MF, TATA mutual fund & Union bank MF.
Yes Sreekanth.
39 Lakhs is remaining idle in bank savings deposits only. And 4.5 Lakhs has been invested in MFs as mentioned plus another 6 lakhs invested in FDs fetching me yearly interest.
I’m employed in an IT concern, I’m 35 & have been working for almost 15 years.
My financial goals:
1. I am also currently in the process of selling my house which is likely to fetch me a net of Rs. 40L which am planning to reinvest totally in buying another house
2. In 2 years time I may quit my job and start my own business venture (home based education, in the house that I’m planning to purchase). I do not know how much I could earn from the venture.
3. My future monthly expenses will be Rs.45000. So I want to ensure that I get a yearly return of Rs.5,00,000 after investing in mutual funds.
My aim is to first be able to attain returns of atleast 5Lakhs P.A with low risk so that it will be my back up esp when i’m not employed.
– Considering this, can I invest say 6 lacs each say in 5-6 liquid funds and then do an from that?
-Can you please suggest some good funds that I can invest in?
-I have invested in 10 diff funds so far, should I follow the same pattern?
Dear Vivek,
1 – Kindly read : Why it is advisable to avoid investing in FDs/RDs for longer period?
2 – Read : How to save long term capital gain tax on sale of property?
3 – Are you planning to get monthly income of Rs 45,000 from your investments? For how long you would like to get this income?
Kindly read ; Retirement goal planning & calculator.
Investing in too many fund may not be really beneficial.
Read:
How to select right mutual fund schemes?
MF portfolio overlap analysis tools.
Hi Sreekanth, thanks for replying.
1. The FD is for 6 lacs fetching 11% interest and its under my mom’s name. So this is being continued.
2. I did read thru the “how to save Capital gains …” page.. thanks .. at the moment it looks to me that buying another residential property might be the best idea…
3. And I do not plan to get monthly income on my investment. But say 18 months post investing, I may want to redeem the incremental funds say Rs.45000 month by month . This is why I’m looking for funds that can fetch me a return of 15% PA.
Dear Vivek,
11%?, wow 🙂
Equity oriented funds are risky. Even if you opt for Dividend option for regular income, the dividends are not guaranteed.
So, my suggestion would be to consider investing in a Balanced fund (Growth) if you can hold on the investments for at least say 5 years or so.
Personally, I expect returns of around 10 to 12% on my MF portfolio, anything above is a bonus 🙂
Nothing wrong in expecting higher return, but most the times high expectations can lead to unwise investment decisions.
Hi Sree, read thru all the links that you sent. I have now come to a conclusion that I will go ahead with my idea of doing STP after investing in some liquid funds, as I have lump sum availability. Having said that I also browsed upon liquid funds. Need your suggestions pls.. 1. Liquid Fund with Dividend Reinvest Option: although not liable to CG tax this attracts a 28.3% + DDT. So 100 Rs declared as divident will only fetch me only Rs.72 net.
So in effect this might not be the best type of liquid fund to go for I think.
2. I also came across an interesting Liquid fund – HDFC Cash management Fund Treasury Advantage Plan – daily Dividend Reinvestment. While this fund’s returns are almost like a liquid fund, its dividend doesn’t attract a 28.3% DDT. DDT in this fund is just 15% .. So can this be a good liquid schem to consider to put my funds? What other similar liquid funds would you recommend?
3. Or Instead of all this, can I not invest a lump sum in some regular debt funds and route the STPs from there to equity funds? Is that permissable? For Ex: DSP debt funds..
4. And on STP there are options to define a daily/weekly or monthly STP… Which one might be more apt?
5. On the same lines today I coincidentally came across a Tata Guaranteed insurance scheme that pays out your investment from the end of 8th year onwards with “guarantee” and assuring. This is a non ulip based scheme and has guaranteed non taxable returns for next 8 yrs after you pay for the first 8. Is this also an investment option I can consider to park some of my funds?
Dear Vivek,
1 & 2 – You may keep it simple by opting for Liquid fund – Growth option.
3 – Yes, it is allowed.
4 – May be monthly (Do note that STPs are treated as normal redemption and taxes on Capital gains, if any, are applicable)
5 – May I know the Plan name?
Hi Sree
The plan’s name is Tata AIA Life Insurance Smart Income plus…
1. And an important point I wanted to highlight is that: On life insurance, I have a Jeevan Anand policy where I pay a premium of Rs.26000 P.A with a sum assured of only Rs.5,00,000. The coverage being on the lower side, which is why I was on double minds seeing the TATA AIA Insurance+Inv scheme.
2. Are there Health + life policies available in the market? Like 2-in-1 policies and if so I could go for one?
3. Also one thing I forgot to ask earlier was about NCD bonds… Is it a good instrument to park some funds in it, given current market scenario?
I guess the order of my priority must be to Invest the available cash into MFs/market followed by taking a medical insurance for my medical needs in future.
Dear Vivek,
Tata AIA Life Insurance Smart Income plus is an Endowment plan. You may avoid investing in these kind of plans.
If your requirement is to get adequate life insurance cover, kindly consider buying a Term life insurance plan.
Read:
Best Term insurance plans.
Traditional life insurance plan – a terrible investment option?
If life is unpredictable – insurance cant be optional!
Jeevan Anand plan : When did you take this plan? (Commencement date & tenure?)
2 – Suggest you to buy separate policies for life and health.
3 – Kindly read:
What are NCDs?
Latest NCD bond issues.
I believe your priorities should be first buying a Health insurance and then investments.
Read : Financial planning pyramid..
Sure thanks Sree. Jeevan Anand policy was purchased 5 years back and i have 10 more years of premium to pay.
Dear vivek,
Kindly read : How to get rid off unwanted life insurance policy?
Hi Sreekanth ,
I’ve been investing in SIP in following 7 funds since 5 months planning add another 3 funds
investing monthly 1000 in each fund for the period 2 to 3 years
ICICI PRUDENTIAL DISCOVERY FUND G (LAST 8 MONTH MONTHLY 1000)
FRANKLIN INDIA SMALLER COMPANIES(LAST 8 MONTH MONTHLY 1000)
DSP BR MICRO CAP FUND (LAST 8 MONTH MONTHLY 1000)
MIRAE ASSET EMERGING BLUE CHIP FUND G(LAST 7 MONTH MONTHLY 1000)
SBI BLUE CHIP FUND (FROM THIS MONTH 1000)
HDFC TOP 200 (FROM THIS MONTH 1000)
ICICI TOP 100(FROM THIS MONTH 1000)
Sukanya samrudhhi (monthly 3000)
iam planning to invest another 3 thounds in mututal funds or sukanya samrudhhi please suggest
Thanks
Rama krishna
Dear rama krishna,
Investing in too many funds may not be that beneficial.
Kindly note that if your investment horizon is 2 to 3 years, not advisable to invest in Equity funds.
Hi Sreekanth,
Thanks once again for such comprehensive and detailed article.
I am planning to invest 10k monthly as SIP from my spouse account who is working in government sector.
She is 26 and my investment horizon is for long term.
Below are the funds which i am looking to invest in.
Kindly review and suggest for any modification.
PPF-2000
ELSS(Birla Sun Life Tax Plan)-1500
Small Cap(Franklin India Smaller Companies)-2000
Diversified(L&T Value Fund)-1500
Balanced(ICICI Balanced Fund)-1500
Large Cap(SBI Blue Chip)-1500
Kindly note I am holding below portfolio since 2015. Require your suggestion so that there is no overlap in my and my spouse portfolio.
NPS-2000(Started in Oct’16)
ELSS(Axis Long Term Equity)-3000
Small Cap(Franklin India Smaller Companies)-2000
Diversified(Franklin India High Growth Companies)-1000
Balanced(HDFC Balanced Fund)-1000
Large Cap(ICICI Prudential Focused Blue Chip)-3000
Dear Rahul,
Both the portfolios look ok to me.
Kindly read:
Why NPS is not a great investment option? (as of now!)
MF portfolio overlap analysis tools.
Thanks Sriknath for your valuable advice.
Have finalized the below portfolio. Kindly provide your remarks.
PPF-2000
ELSS(DSP Black Rock Tax Saver)-1500
Small Cap(Reliance Small Cap)-2000
Diversified(Franklin India High Growth Companies)-2000
Balanced(DSP Black Rock Balanced Fund)-1000
Large Cap(SBI Blue Chip)-1500
Also, please suggest considering the current performance of Axis Long term equity fund, shall i stop future SIP in it and switch to Reliance Tax Saver/DSP Black Rox Tax Saver fund.
Dear Rahul,
There are better funds in Balanced fund & Small cap categories.
Hi Sreekanth,
Hats off to you for responding to all the queries, till date. This is an achievement in itself.
If possible, kindly advise me on the following holdings; All invested thru` Lump sum amount, invested at the end or close of each Financial year:
Currently holding:
AXIS LTE MF – 1,00,000 (holding for 2 years now)
SBI Magnum Tax – 1,90,000 (6th year of holding)
HDFC Tax Saver – 50,000 (3rd year of holding)
L&T Tax Saver – 2,00,000 (2 yrs of holding)
Is it advisable holding these many ELSS schemes, considering all are good, and performing well?
Going by your above post, also interested in investing in;
ICICI Pru Focused Blue Chip
SBI Blue Chip
ICICI Pru Value Discovery Fund
Franklin PRIMA Plus Fund
HDFC Mid Cap.
Age: 35 now.
Investment holding / Horizon: 20-25 years or more
Target: High Value Corpus for Retirement / other Expenses / Costs.
Risk Appetite: Moderate to High
Investment Capital: 6 lacks per Annum (including ELSS).
Thank you for your time in advance.
thanks and regards,
J.D.
Dear Jovy,
1 & 2 – You may go through below posts;
MF portfolio overlap analysis tools.
How to select right mutual fund scheme?
You may pick one fund within a fund category. For ex: either of the large cap funds ICICI Focused or SBI bluechip.
Thank you Sreekanth. I will go through the referred posts. I appreciate your suggestions, as well.
regards,
J.D.
Hi Sreekanth, I was wondering if you could tell me an ideal Asset Allocation for long-term portfolio.
I am 24 years old. I have high risk tolerance and my goal is to accumulate wealth. I would not need money anytime soon.
Right now I have 3.75 lakhs. Rs 1.30 lakhs in Kotak Income opportunity. ( emergency fund). I have 80K invested in each of these 3 funds; Franklin India smaller company, DSPBR Micro cap. and Mirae Asset Emerging fund.
I also have 3 existing SIPs
Rs 5K for Franklin smaller co. , Rs 5k Mirae asset emerging and Rs2500 in DSPBR micro fund.
I would have around Rs 1 lakh to invest in this year as lumpsum
Dear Vishal,
As you have long term horizon + high risk tolerance, you may invest in the same existing funds itself.
Dear Sir,
My portfolio is: HDFC-Top-200(4500 pm), HDFC Midcap (4500 pm), Reliance RSF multicap (3000 pm), DSP BR Balance (3000 pm). (invested for next 10-12 years)
BSL 95 (4.00 lac lum-sum) and BSL debt fund (2.00 lac ) ( invested for 5-7 years).Cash in hand 10L for investment for 9-10 years . Any any change in my portfolio please advise me.
Dear Mangal,
I believe that there are better funds than Reliance RSF in Mid-cap category.
Same is the case with Balanced fund category. kindly refer to the list in the above article.
Read: How to pick right mutual fund scheme?
Sir Need to invest 2Rs 2 Lakhs for 10-15 yrs in 2 mutual funds.Please suggest some good balanced funds
Currently I have invested in 2 SIPs
1.Birla sunlife Balanced 95 Fund-Rs 5000 (Started from December 2016)
2.ICICI Prudential Balanced fund-Rs 5000 (Started from December 2016)
Dear Richa,
You may consider Franklin Prima plus fund and Mirae Emerging bluechip fund.
Read:
MF portfolio overlap analysis tools.
How to select right mutual fund scheme.
Hi Sreekanth,
I have been investing in Tata balanced fund for more than an year now. I see that this fund is not part of your 2017 recommendations.
I have stopped future investment in this fund.
Please suggest if i should remain invested in this fund or move the money to some other fund.
Also I have invested in UTI mid cap, should i continue my future investments in this fund or other funds mentioned by you in this category?
Dear Vibhuti,
It is still a decent fund to hold.
I am not making fresh investments in this fund based on my goals and objectives only and nothing to do with fund’s performance.
In fact, i am holding the investments but not making fresh investments. I have increased my investment amount in Franklin Smaller companies fund based on my target Goal amount.
Let’s track UTI fund’s performance for the next 12 months or so.
Dear Sir,
1) I am new in mutual fund.
2) SIP AMOUNT RS. 1000/- & 1000/- (For two fund)
2) Please suggest me, for my child education purpose (8-10 years) which mutual fund will suitable for me ?
Dear RAJU,
Kindly go through below articles and you may revert to me with more queries;
Kid’s education goal planning.
List of important articles on Personal Financial planning!
Dear sree,
Can you share with me a sample mutual fund rebalancing example any article on rebalancing.Please?
Also if i continue SIP in ICICI Value Disc. for 30 years and the end will i be taxed for reedeem?
please guide.
Dear Santosh,
Re-balancing done w.r.t Allocation ie portfolio re-balancing.
Best example can be : Lets say you have a 10 year goal, you may have highest allocation to Equity Vs debt say till 7th year, after-which you can consider a gradual increase in allocation to debt oriented securities/funds.
Another case can be, if you would like to have a fixed Equity Vs debt allocation, you have to continuously rebalance your portfolio to maintain the desired limit. Let’s say your preferred allocation is 80:20 (equity : debt), markets reach new highs and your equity unrealized gains may soar, this may result in higher % of equity investments corpus in your portfolio, so you may have to book some profits and move the monies to debt category, to maintain 80:20 ratio.
No tax on Long term capital gains on Equity oriented products. (based on current tax structure).
Read: MF taxation rules.
Thanks sreekanth
Dear sree,
how do you invest in MF through MF utility or through AMC websites.
Dear Santosh,
I have ICICI direct account, Funds india account and also through AMC websites.
Have to open an account with Invezta or MFU. (these are not recommendations though)
Hi,
I am 26 years old and have the following investments since last 6 months:
HDFC Prudence Fund Regular Plan-G-3000 monthly
Axis Long Term Equity Fund-G-3000 monthly
Franklin india smaller companies fund-G-3000 monthly
Can you please advice,if this is fine.
I want to add additional 4k/Month to this, which should include at least 1 Tax saver. Please guide me with the best option.
Dear Gaurav,
May I know your investment horizon?
Keep on eye on Axis ELSS performance for the next 12 months or so. The other two funds are ok.
You may consider Birla Tax plan or DSP tax saver, do compare portfolio overlap with Axis LTE.
Thanks for the reply.
My investment horizon is around 5 years to accumulate wealth.
Where can i invest the extra 5k/month?
Dear Gaurav,
If your investment horizon is around 5 years, you can add one Equity oriented balanced fund like HDFC or SBI balanced fund.
Hi Sreekanth,
Thanks for sharing good articles.
I am 28 years old. I have 30 Laksh LIC term policy.
Investing 3000/ month in PPF from last 2 years.
Also investing in the below funds from last 4 months via SIP.
HDFC Balanced Fund – 1500
ICICI Pru Value Discovery Fund – 1500
HDFC Mid cap Opportunities – 1500
Franklin India Smaller cos – 1500
I started these funds to accumulate good amount after 10 years.
Please review my portfolio. Is above funds are good? or need to change/switch to any other fund.
Please give your suggestion.
Dear Rajesh ..Your portfolio looks fine.
Do you have health insurance cover?
Hello Sreekanth,
Appreciate you sharing your inputs on investment. It really helps many of us to select right funds in the sea of funds!
I am 40 y.0, with almost 95 % of my investment of me and my family in equity holdings.
I have decided not invest further in the equity market and focus on debt funds?
Currently I have multiple FDs tune of 8 lacs.
Additionally also I have rental income of Rs 50000 per month which I use to running house expenses.
I can invest around 40k monthly without much issue.
My Goals are
3 months: house renovation: 5 lacs
2-3 months: buy car (in EMI ofcourse)
10 months: Trip abroad for family of 3.
8 years: College Education
In SIP I have
HDFC BALANCED FUND – REGULAR PLAN – GROWTH for 1000 Rs (currently values at 92000)
HDFC TOP 200 FUND – REGULAR PLAN – GROWTH FOR Rs 500 (valued at 41000)
I had a sip of ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – GROWTH which I have stopped now.
If 40K monthly investment good enough?
Also can I split this between MIP/Short term Debt Fund?
Dear Nishan,
Reason for ‘planning to stop investments in equity’? – Would life to understand your views.
Any specific objective for maintaining Rs 8 Lakh in FDs? Are you going to fund partly or fully ,your 3 short term goals with this corpus?
Suggest you to use the calculators available in below articles and analyze the expected amount of investments/savings to be made for the desired corpus amounts, and you may revert to me;
Kid’s Education goal planning & calculator.
Retirement planning in 3 simple steps.
Thank You Shreekanth for sharing the planning sheets. Indeed this is a good assessment for planning my future.
I wanted to diversify my investments thats is why I did not want to invest further in equity.
Not to spend away the money I put in FD. No specific goal linked.
Looking at the calculator sheet, I think I need to save a lot for both education for my daughter
and also for retirement.
Forgot to mention , I have around 30+ lac in my PF a/c.
Where do you recommend should I invest. MF SIP?
And how much.
Dear Nishan,
Equity oriented products can give us a better chance to accumulate desired goal amounts. So, kindly take decision after calculating your required Corpus amounts for your long term goals.
If you are falling short of your required savings (as of now), suggest you to prioritize your goals and invest accordingly.
Continue with your EPF account.
Kindly read:
Why one should avoid FDs/RDs for long term?
Partial PF withdrawals options & rules
Best Equity funds 2017.
How to pick right mutual fund schemes?
Thanks for the links. Let me review the links send by you and take a call.
One final question. Is there a thumb rule or a formula to calculate the percentage of invesment holding. For eg. For equity it is understood that based on age we do the investment. For eg. if age is 40, investment must be 60%.
So other forms of investment for eg. Debt must be 40%?
Or is it ok to have 95% investment portfolio holdings in equity.
Also do I need to churn my equity portfolio once in 2 years?
Dear Nishan,
Personally, I do not believe in this thumb rule.
It all depends on an investor’s profile & financial goals 🙂
Churn your portfolio only if required. But re-balancing ones portfolio can be considered as one nears goal year(s), to safeguard capital appreciation (if any).
Hie,
I am 24 years old and investing in SIP through Scripbox for last four months.
The funds are as:
SBI Blue Chip Fund (G)
ICICI Prudential Value Discovery Fund (G)
Mirae Asset India Opportunities Fund (G)
1000 in each fund monthly.
Is investing through scripbox safe?
Suggest some fund for short term Goals.
Thanks.
Dear Ashish,
Portfolio looks fine (assuming these are your long term investments).
Any investment platform like scripbox or fundsindia or invezta etc are just intermediaries, your money is managed by the Fund houses/AMCs.
You can get your MF statements from R&T agents once in a while, if you would like to check your investments.
Read: How to get MF Consolidated statement online?
Hi Shree,
DSP BlackRock Micro Cap Fund has stoped accepting fresh investments both via lumpsum and SIPs. However, we will continue to accept flows coming from existing SIPs.
Do you suggest DSP BlackRock Small and Mid Cap Fund as an alternative?
Regard
Dear Samir,
If you have an active SIP, future SIPs will be accepted.
In case, you are looking out for fresh SIP in a Small cap fund, you may consider Franklin Smaller companies fund.
Hi, I am retiring in another four months. I would like to invest 50 Lakh in any instrument ( except equity directly ) which should give me monthly pay out. I understand the MIP mutual funds are one option. Are there any other options ? If MIP is the only option which is the best ? I learned that MIPs are not tax efficient. At the end of the day I want to maximize the monthly payout after tax. Thanks.
Dear BVPReddy Ji,
Are you looking for fixed and regular payment? How long would you like to receive this income?
Suggested article : Retirement goal planning & free calculator.
Thanks for the reply Srikanth. I am looking for a fixed and regular payment because I intend to use that money every month but want to keep my capital intact. I can increase my investment to 1 Crore if required. I need about Rs 65000 per month. I do not know whether it is possible at all !
Dear BVPReddy ji,
Dividend option : The challenge would be, dividends (%) is not guaranteed and may not be periodic.
SWP Option : If capital appreciation is negative, the withdrawal amount is paid out of your investment.
As suggested in my previous comment, kindly calculate the approx amount of corpus required to get the expected monthly income and then let’s work backwards.
I believe that you can consider SWP option in MIP Fund. But do not that even MIP funds invest anywhere between 5 to 15% of fund corpus in Equities.
Thanks. How to know what dividends an MIP Mutual Fund has paid in the past one year ?
I can invest half in an aggressive and high dividend paying MF and the other half in a less aggressive MF. Could you suggest the best MIP MF with high dividend history and another for less aggressive one ? Sorry I am bothering you. Thanks again
Dear BVPReddy Ji,
You can get dividend payment history details on portals like Moneycontrol.
For ex:
Birla Sun life MIP II Wealth 25 plan – Monthly Dividend History
TATA Balanced fund – Monthly Dividend option – History.
If your investment objective is to invest a lump sum amount in an MIP fund and would like to receive regular & fixed (monthly/quarterly/yearly) income then investing in MIP fund with Growth & Systematic Withdrawal options can be a prudent choice. Below are the reasons to justify this suggestion;
Dividend Income plan can give you periodic income. But, the fund may or may not declare it and moreover the quantum of payment can vary (as indicated in the below image).
Though the Dividend income received by you is tax-free, the fund house deducts DDT (Dividend Distribution Tax) of around 28% and then pays you the dividend. So, if you are in 10% or 20% tax bracket, opting for a MIP-Dividend payout plan is not a tax-efficient choice.
Whether you are in 10 or 30% tax bracket, MIP Fund with Growth & SWP option can be considered if your withdrawals are for more than 3 years, because the Long term capital gains are taxed at 10% or 20% (with indexation benefit). The total tax liability will be less than the dividend distribution tax charged in the case of dividend option. This can increase your return on the investment.
In SWP option, you can decide the frequency and quantum of payout. But kindly note that if your withdrawal amount is more than the capital appreciation then the payout is made from your Principal amount.
Thank you very much for all the info.
Dear Sreekanth,
I’m 34 years old & from past 6 months started SIP in mutual funds for the below funds. In each MF I’m investing 5k/month at present & want to increase to 10K to meet my financial goals for my daughter education 13 years, & marriage 20 years. Also investing 12.5k in PPF from past 4 years for my retirement savings. Is it wise to continue in the below MF funds for long time? And whether PPF is a right choice? As I don’t wanted to take risk by investing all my hard earned money in MF/shares… Pls suggest
Axis Long Term Equity Fund -Growth
HDFC Balanced Fund – Regular Plan -Growth
ICICI Prudential Value Discovery Fund -Growth
UTI Mid Cap Fund -Growth
Regards,
BR
Dear BR,
Kindly note that PPF is one of the best long term savings option, part of your debt portfolio.
Your portfolio is fine. Keep an eye on UTI Mid-cap fund’s performance for the next 1-2 years or so (fund manager has been changed).
Do you have sufficient life insurance cover?
Kindly read:
Kid’s Education goal planning & calculator.
List of important articles on Personal Financial Planning.
Dear Sreekanth,
Thanks for the reply & suggestions.
Presenlty I have 20Lac life cover. Looking for new term policy (max life).
Regards,
Bhagyaraj
Ok..Kindly read:
Best Term insurance plans.
Importance of Personal Accident term insurance plan.
I am a banker and my income is 6 lac annualy. I am a regular visitor of our site and been investing since aug-2015 and by your suggestions my investment are as below
1) axis long term equity fund – 4000 monthly (for tax saving)
2) franklin tax shield – 3000 monthly (for tax saving)
4) hdfc balanced fund – 1000 monthly
5) hdfc midcap oppor.fund – 1000 monthly
6) uti equity fund – 1000 monthly
time horizon- 10 years.
my above funds performance are okay but should I switch uti equity to other multi cap fund.
kindly guide me.
Thanks.
Dear Manish,
Yes, UTI Equity fund’s performance has not been upto the mark after the change of its fund manager.
Axis LTE can be considered as a multicap fund though it is an ELSS fund.
You may consider to route your future UTI equity fund SIPs to hdfc mid cap fund and Axis LTE fund (for tax saving also, if required).
Hi sree!!
I have taken SIP of 2000 in ICICI value discovery growth. i am thinking to continue this for another 30 year for my retirement fund. I am 26 years old.
please tell me is this fund a right investment for 30 year.
Thanks
Dear Santosh,
May be you can add one mid-cap / small cap fund to your portfolio.
Longer period is fine, but you do need to keep a track of your portfolio’s performance and take necessary corrective measures (if required). A fund may or may not repeat its stellar performance over such long period of time.
Ok thanks Sree!!
But for longer time like 30 years how to re balance or switch to another fund?
will it not affect the compounding over long term?
thanks Sreekanth
Please tell me how rebalacing in Mutual fund is done.
Dear Santosh,
As long as your MF portoflio meets your expectations in terms of expected returns, you can continue with those funds.
However, based on your requierments or as you near the goal year, you can slowly increase Debt component Vs equity of your portfolio.
Dear Sreekanth,
I have been investing Rs25,000/monthly in MF SIP since June 2015.
The funds are listed below (All are Regular-Growth option)
1) BSL frontline equity – Rs5000
2)Franklin India High Growth companies-Rs5000
3)HDFC prudence – Rs5000
4)Reliance Top 200 Retail -Rs5000
5) UTI midcap-Rs5000
Pls suggest me, the above funds are good or need any change?
Also I have surplus amount Rs.3Lakh, shall I invest in BSL MIPII wealth 25 (G)
for 3~4 years instead of FD (Already I have sufficient money in FD for an emergency)
Thanks you
Dear Murali,
The overlap between Birla Frontline and reliance funds is >40%, you may consider Birla fund and switch the future investments from reliance fund to Birla fund Franklin funds for long-term.
You may consider Birla MIP fund.
Suggested articles;
How to pick right mutual fund schemes?
Mutual Fund Schemes portfolio overlap analysis tools.
In Continuation
Feb 12, 2017 at 1:18 pm
Why is return not reflected in NAV ?
I have some mf & I have been observing for last 16 months.
For example Birla tax relief 96.
1 yr ago its max nav app. 24.5/-,which has been highest in last 16 months till date.
It returns vary from 12-20% in 1yr.
Today it’s nav should be 27-29/- ,But it is 24.2/-
Where has return gone.
Reply
Sreekanth Reddy says:
February 13, 2017 at 12:36 pm
Dear Pankaj..Is it Dividend option?
Sir
Growth option
Hi శ్రీకాంత్ గారు,
నేను ELSS mutual funds లో invest చేయాలి అనుకుంటున్నాను. Monthly 5500 వరకు invest చేయగలను. Frankilin tax shield లో 3k , Axis long term equity లో 2.5k చేయాలి అనుకుంటున్నా. వాటిల్లో invest చేయొచ్చా, లేదా వేరే funds ఏమైనా ఉన్నాయా.?
Dear Sudhir ..You may consider these too schemes.
Sir,
Where can I find particular dated NAV.
For Example Hdfc bal direct div 21-1-17.
I can’t find it on money control etc. ,Even google search.
Thanks
Kindly Check Money control website for the required Fund and under the fund click on Historic Graph.
Move the pointer whichever date NAV you need
Dear sree,
Can you tell me best online platfor for MF investmest. At present i am using ICICI demat but charges are more.
How is fundsindia?
Thanks
Abhee
Dear Abhee,
If you are going to opt Direct plans, can consider MF Utility platform (free of charges).
Fundsindia platform is good, but you can invest only in Regular plans, they do not charge any fees from clients, they get commission from MF fund houses.
Thanks Sree!!
I would like to go with MF utility, but can you tell me how trustful this platform is? Is it safe to invest through such platforms for 20 years or more. I have checked the site and these are AMFI registered but not SEBI approved.
Also At present I have 3 SIP and one lump sum investment in MF through ICICI Demat, can i transfer the same to MF utility?
Thank You very MUCH!
Abhee
Dear Abhee,
MFU is MF industry sponsored platform 🙂
I believe there is nothing to worry about safety of investors’ money. Also, do note that any platform be it be MFU, icicidemat etc money gets invested in AMC schemes and these are just execution platforms.
An investor can check his/her investments details by visiting AMC websites directly.
I believe you can clink on MFU.
THANKS SREE!
I am a banker and my annual income is 6 lacs. I have invested in the following mutual funds this year (for the first time):
1. I.C.I.C.I prudential child care plan- gift plan – 4000 monthly
2. icici prudential LTEF (tax saving) – growth – 5000 monthly
3. bsl equity fund – growth – 2000 monthly
4. hdfc capital builder fund- regular plan – growth-2000 monthly
time horizon- 10 years
kindly guide me.
Thanks you.
Dear Shailendra,
Kindly read: Pros & Cons of Children’s gift funds.
You can hold on to ICICI & BSL equity funds.
You may redeem units in HDFC Capital builder and re-invest in a mid-cap fund like HDFC Mid-cap opportunities fund, as your investment horizon is 10 years.
Dear Sreekanth,
As an NRI I was looking for a good informative site to guide me for the investment, finally reached on your site, thanks for sharing so much of knowledge. I think I made a bad investment of 30 Lakhs in ICICI Lifestage pension (ULIP) in 2009 with around 3% management fee and 1% exit load. The fund has grown only 46 Lakhs until now. Please advise if I should come out and invest in any Mutual fund at this point.
Dear Bonny,
What the the tenure of your policy?
May I know your broad financial goals and time-frame??
Any other existing investments?
Dear Sreekanth, The policy term is 18 years. (pension policy) after which it will be annuity phase. I also read on web that if I do surrender then complete surrender value will be taxed, I am not sure how much even though the premium I paid was from my NRE account without any tax exemption. I don’t have any other investment or liability. The only financial goal is to grow the fund at the maximum rate to cover up the loss occurred. Please advise what to do.
Dear Bonny,
Kindly note that surrendering a Pension plan before maturity has serious tax implications. As rightly pointed out by you, the surrender value is added to your income and taxable as per your slab rate. Also, the tax deductions you would have claimed in previous years will be reversed and taxed. And 2/3rd of the surrender value received should be used to purchase annuity plan.
If ok with tax implications, you may surrender it and you may re-invest the corpus in Equity oriented MF schemes for long-term.
Dear Sreekanth,
I have found out that being an NRI in UAE, I can get TRC (Tax residency Certificate) and get the amount to my NRO account without TDS. I have short listed below MFs to reinvest 45 Lakhs in SIP. Please confirm If the list seems ok?
1) Franklin Build India Fund Direct
2) DSPBR Micro Cap
3) SBI Blue Chip Fund
4) L & T Value Fund
5) HDFC Midcap opportunities
6) ICICI Prudential Value Discovery
Dear Bonny,
Fresh investments in DSP Micro cap have been temporarily stopped, you may consider Franklin Smaller cos fund as an alternative.
The portfolio looks fine.
Franklin Build india is an Infra fund. Kindly note that sector or thematic based funds can have higher risks.
But infra seems to be a good bet for the next few years. You may have small allocation to this fund.
May I know your investment horizon?
Dear Sreekanth,
Thanks for the review. Actually I kept this amount as a retirement backup saving. No specific plans other than growth of the fund and saving.
Why is return not reflected in NAV ?
I have some mf & I have been observing for last 16 months.
For example Birla tax relief 96.
1 yr ago its max nav app. 24.5/-,which has been highest in last 16 months till date.
It returns vary from 12-20% in 1yr.
Today it’s nav should be 27-29/- ,But it is 24.2/-
Where has return gone.
Dear Pankaj..Is it Dividend option?
Growth option
Thanks for the very informative article Sreekanth, I really appreciate it.
I have invested the following:
– ELSS – Axis Long term equity fund – Lumpsum -Rs 1,40,000 with an SIP of Rs 5000
– DSP Black Rock Mid and Small Cap fund- SIP of Rs 5000
– Franklin Templeton Mid and Small cap fund – SIP of Rs 5000
– Birla Sunlife Frontline equity fund – SIP of Rs 5000(issue with SIP, where the site states that I can end the SIP only by june 2040? Is that accurate? What if I want to stop the SIP before that if the fund is not performing up to my expectations?
I think I am making a decent investment plan and will invest more in the future, but any comments on the above would be very helpful.
Thanks again!!
Sincerely
Dhiraj
Dear Dhiraj,
You can stop future SIPs, that should not be an issue.
Is it Franklin Smaller companies fund?
I have invested 5000 each in Axis LTE fund and Franklin India Taxshield fund.
I further want to invest 3-5k in a midcap fund. I am planning to invest for a minimum of 4+ years. Can you please suggest a fund.
Dear Jitin,
If you are shortlisting a mid-cap fund, you may consider to hold the investments for longer period.
Ex – HDFC Mid-cap opportunities fund / Mirae Emerging bluechip fund.
Dear Sreekanth Reddy,
From last 1 year I have been following your valuable posts. I have the below queries:
1) My age – 36.
2) I have already EPF, FD & RD.
3) I want to invest in mutual fund for 8 to 10 years in SIP (Direct Plan) mode Rs. 2000/-. (For Child Higher Education)
4) In our area only have SBI Mutual fund House. I want invest in SBI Fund House. Which fund it suitable for me ?
Dear BIDYUT,
Are you comfortable investing through online mode?
Suggested article:
MF Utility platforms.
Kid’s higher education goal planning & Calculator.
Hi
I am new to MF, I have bit of research for past one month.
I see MF is better opportunity than traditional tax savings , NPS,NSC,FD,etc
also i see any holding more than 5 years starts to diminish in terms of growth %.
I have a budget of 1.03L for tax exemption investment before FY ends Mar31st and also to make wealth grow.
I made a table for my self shared with Relakhs financial services on facebook. Please make corrections in my table,Tax saving scheme, advisable duration, investment frequency (Lumpsum/SIP quaterly).
so it gives me better understanding of the rules of the game and invest wisely.of course will take time to understand the other aspects like front load and exit load .
Thanks Sreekanth for you valuable support, great job
surya.v
Dear Surya,
You may kindly share the details given in the TABLE here or post a question in Forum.
(I prefer not to download any files , hope you understand my concern. Thanks!)
I have a budget of 1.03L for tax exemption investment before FY ends Mar31st and also to make wealth grow.
please read my previous post and advice
FY-2016-17 Budget left for tax exemption 1.03 L
Investment scheme Lumpsum Tax saving fund Duration
Franklin tax sheild fund 40000 ELSS 3-5y
Axis long term equaity 40000 ELSS 3-5y
surya.v
Dear surya,
You may go ahead with your plans, but suggest you to remain invested for longer period.
Hello Sreekanth,
This is Chandresh, My monthly salary is 70K, below is my situation, please advise me where can I invest the money
1- I’ve borrowed 10 Lakh for my sister marriage which I need to pay in 3 years without interest.
2- I need to send 10K per month to my parents for their expenses
3- My age is 30 and my wife is home maker.
4- Investing 4K / month in HDFC click2invest from july 2015 for 10 years
5- Investing 19800 Semi-Annual (39,300.00 –Yearly) in Birla Vision lifeincome 2013 from march 2014 & Final Premium Due Date : 30-Sep-2029
6- I want to invest more around 10K / month as SIP (5K for 3-5 years) & (5K for 10 years)
Could you please suggest where to invest?
Dear Chandresh,
1 – As you are the sole bread-winner, suggest you to give high priority to get adequate life cover & health cover.
Kindly buy a term insurance plan, personal accident insurance and also health insurance (for self & family).
Kindly read:
List of important articles on Personal Financial Planning.
You may use the calculator available in this article, to plan your goals.
Birla Vision life income is a traditional Whole life plan, you may discontinue this policy after buying a term insurance plan.
Read : How to get rid off unwanted life insurance policies?
Hi Sreekanth,
I need to invest a lumpsum of 4 lacs for about 6 years. I was planning to split it in SBI bluechip and Hdfc Mid-Cap.
Not sure, whether these are the right levels to enter the markets as we are nearing to at an all time high.
I know it is difficult to time the markets but it seems a bit risky for a lumpsum investment to me?
Shall i park my funds in some debt funds and wait for a correction or would you have some other suggestion for me?
Best Regards, Rajat
Dear Rajat,
Let’s not try to time the markets.
We invest in equities believing that markets may reach new highs in long-term 🙂
You may consider SBI bluechip & HDFC balanced funds by setting up STP (Systematic transfer plan) from Liquid funds (of respective AMCs) for say next 6 – 12 months.
Thanks Sreekanth!
Hi! Sreekanth,
Thank you for making us aware of financial literacy.
I am already investing 13K PM in MF’s. Now I want to invest an additional (15K) every month, from which 8k for buying a car (3 to 5 years horizon) without availing a loan and 7 k for creating wealth.
Could you please suggest me few MF’s from below list or otherwise from your side
Kotak select focus fund (3K) – present my folio 2K
ICICI balanced fund (new) (2K) — new
Franklin small and mid cap fund (3 K) — new.
And also I am able to save Rs. 3000 PM because of overflow in home loan EMI with recent interest rate cuts. Is it wise to divert this into MF for 3 years in order to get more benefits (of course risk considered), if so, pls suggest me the right fund.
Thank you in anticipation
Rama.
Dear Rama,
Kindly share the details (Scheme names) of your existing MF portfolio.
For 3 to 5 years horizon, you may consider an Equity oriented balanced fund like HDFC balanced fund.
Thank you for your reply!
Icici pru value discovery fund (D) 3000
Kotak select focus fund (R) 2000
Sundaram select mid cap (R) 2000
SBI Multicap (R) 2000
Reliance Small cap (R) 2000
Reliance regular savings fund (R) 2000.
from now I want invest only in direct funds, pls suggest me is there any site in which I can buy multiple finds instead of going in individual sites
And also suggest me whether I can divert into MF’s the money which is giving surplus because of overflow of house EMI,
Thank you very much in anticipation.
Dear Rama,
You may consider – MF Utility platform for Direct funds.
Kindly read : Direct funds & online platforms.
Instead of Sundaram fund, you may consider HDFC Mid-cap opportunities fund or Mirae Emerging bluechip fund.
Kindly check portfolio overlap between ICICI fund and SBI fund.
You may invest surplus money in existing portfolio (after modification) for your long-term goals.
I have invested 200000 in SBI pharma fund G and 200000 in SBI magnum global G fund before two years. please advice I should continue or exit now from this fund.
Dear shahnawaz,
May I know your investment objectives and time-frame?
Do you have any other existing MFs?
5 Years no objective just for investment
Dear shahnawaz ..You discontinue the existing investments and switch to an Equity oriented balanced fund like HDFC Balanced fund.
Dear Sreekanth,
First of all I would like to thank you for your various articles (FREE !!) which has given us understanding of Mutual funds.
After checking the advises on “My Mutual Fund Portfolio – My MF Picks” , ” Mutual fund overlap checks” , ” Mutual fund categories and caps which caps suits me “, ” Planning behind investing”, “best mutual fund 2017” ; ; I have come to a conclusion to invest as follows through SIP’s.
Long term (15~20 Years)- Goal approx 30 Lakh
HDFC – Mid Cap Opportunities Fund Direct (G) – Mid Cap – 3000 p/m
Franklin India Smaller Companies Fund – Direct Plan (G) – Small Cap – 3000 p/m
HDFC Balanced Fund – Direct Plan (G) – 4000 p/m
Birla Sun Life Frontline Equity Fund – Direct Plan (G) – Large Cap – 4000 p/m
Medium Term (3~4 years) – Goal approx 5 Lakh
SBI Magnum Balanced Fund – Direct Plan (G)- 4000 p/m
Birla Sun Life MIP – Wealth 25 Plan – Direct Plan (G)- 4000 p/m
Could you please give your feedback on my above planning.
Thank you so much in advance.
Regards,
Henry
Dear Henry..You may kindly go ahead with your investment plan 🙂
Suggested Reading: Retirement goal planning & Calculations.
Sreekanth, Thank you so much. Your timely advise for retirement has played vital role in my planning.
Already a fan of you and following you on facebook (both your and blog profile). Thank you again !
You are welcome dear Prakash Henry.
Kindly share the articles with your friends and do keep visiting 🙂
Sreekanth,
I have been watching ICICI Pru Value Discovery and I am currently baffled to see why they have increased the stakes of Wipro to 8+% equivalent to L&T and these 2 currently make up around 17% of the overall portfolio. While L&T has done good, Wipro has been under performer for long time, why was this selected and made a top portfolio position? Furthermore, this fund could not reap benefits of the Breexit and Demonetisation downtime, they should have really anticipated this and made good outcomes as other funds have done – look at Birla SunLife Frontline or SBI Bluechip (I know it is large cap, but ICICI Pru Value discovery is almost large cap too). I am thinking of quitting this fund and move to more of Mid cap than the multi caps.
Dear Manja,
Let’s discuss the individual picks done by the Fund managers :).
But appreciate your insights..
The other two funds (SBI/Birla) are Large cap ones, am I right??
Hi Sreekanth,
Yes, the SBI Bluechip and Birla Frontline Equity are Large cap. The reason I used them for comparison is because ICICI Prudential Value Discovery has now become more of a large cap than a multi cap. If you look at the portfolio, it has concentrated its stocks to Financial and IT just like large caps. But it has not shown the gains like Large cap due to some incorrect stock pickings. Maybe it was an experiment in a Wave like market last year, but instead of gaining it has lost much more.
Seeing the past performance I was ready to stick with it, but looking at the stock pickings, I would rather move away from this.
Look at Birla Sun Life Pure value fund, as per my records, it gave 24% return if you have invested last March – ICICI Prudential gave just 6 %. From July, BSL Pure Value – 17% Vs 3% for ICICI Prudential.
I now maintain mirror portfolios of the stocks of the mutual fund and try to analyze the ups & downs. This study from last year has really improved my knowledge and maybe in future I will carve out my own stock portfolios by looking at various stock selections from MFs.
Dear Manja,
Sincerely appreciate your willingness and eagerness to learn about investments/analysis.
Keep sharing your insights. Thanks!
Hello Sreekanth I find your articles very clear, logical & helpful and have been hooked ever since.
I am a first time investor and have to invest 20 Lakh amount with a time horizon of 10+ Years.
Considering the current market conditions (relatively high PE of 23+) which Mutual Funds should i invest in ? and across how many Mutual Funds & AMC’s should i spread my investment ? or should i wait for a better entry point (lesser PE)
My risk appetite is moderate.
Dear Gaurav,
Let’s accept the fact the it is next to impossible to TIME the markets.
You may start investing right now and may be in few installments over the next 6 to 12 months.
If you track PE or DMAs, then can invest manually whenever you believe that markets have fallen more than they are required..
You may set up STPs (Systematic Transfer plans)
EX: Liquid fund to Equity oriented fund for next 12 months of a same AMC. HDFC Liquid fund to HDFC balanced fund.
You may consider one balanced fund, one large cap fund and one diversified equity fund, with slightly higher allocation to balanced & large cap fund.
Gurav, as Sreekanth stated, it is next to impossible. However, deciding a mutual fund is based on what goal you want to achieve. The reason is because this can set your expectations of a return YOY.
Let say, you want to double your investment in 5 years, then you should be clocking 15% average every year. Now 15% is never guaranteed anywhere, but the equities are your best bet. So you should do a research for all the top funds and distribute your money such a way that 15% is possible. A Balanced fund or a Debt fund will not give you such return.
Now let’s say you are interested in only 9% return YOY, at 5 years, this should give your 50% of your original investment. then you can go conservative here.
Hope it explains.
Very well explained, dear Manja..Thanks!
My current portfolio consist (All Elss, SIP, Direct, Growth, started since 1 year) –
Axis Long Term Equity Fund
Franklin India Tax Shield
Birla Sun Life Tax Relief ’96
Tata India Tax Savings Fund
Icici Prudential Long Term Equity Fund
My question is –
1). Is my current portfolio allocation ok (as my goal for such is to invest for long time (3-5 years) & also tax saving) ? and if not, any suggestions, please ?
2). I want to invest further rs.2000/- p.m. via SIP for short period high return (Not for tax saving). Any suggestion ?
Dear Pankaj,
Hope you are aware of the fact the units allocated under each SIP have a lock-in period of 3 years, so you may have to plan your withdrawals (5 years) accordingly.
Any reason for opting multiple ELSS Schemes?
2 – May I know what is the time-frame when you say short term??
Dear Sreekanth,
Yes, I know about the lock-in period in SIP.
Multiple ELSS opted for diversification purpoe only. Any suggestions?
Time-frame for short term period is around one year.
Thanks for reply.
Dear Pankaj,
Kindly go through this article : MF portfolio overlap analysis tools.
Short term : You may consider an Ultra-short term fund or an Arbitrage fund (if lump-sum for just over 12 months).
Dear Sreekanth,
Thanks for your valuable & early reply.
Dear Sreekanth,
Overlapping >>> Overlapping in my point of view in simple terms means, stocks will be same in both funds. Let me give you an example in a different way.
Fund A – large cap – Investment amount 2000 for 10 years Sip = Suppose, first fund is giving 14% return then total amount (invested amount + interest) will be 5,24,182.77.
Fund B – large cap – Investment amount 2000 for 10 years Sip = Suppose, first fund is giving 13% return then total amount (invested amount + interest) will be 4,93,361.30.
Total Fund A and Fund B = 1017544.07
Now, lets go by your point with 2 EXAMPLES.
1) Investing only in one fund. Investment amount 4000 (SAME AMOUNT) for 10 years Sip = Suppose, fund is giving 13% (CHOOSING LESS % HERE) return then total amount (invested amount + interest) will be 9,86,722.60. (HERE loss is 30821.47
2) Investing only in one fund. Investment amount 4000 (SAME AMOUNT) for 10 years Sip = Suppose, fund is giving 14% (CHOOSING HIGHER % HERE) return then total amount (invested amount + interest) will be 10,48,365.53 (HERE profit is 30821.46).
Probality here is that returns will be above average (instead of loss or litte extra profit)
Now, in a common person simple terms, I think, its better to choose 2-3 large funds/small/mid cap etc (from top 3-4 funds in each category) cause, it is difficult for a common person to track and monitor who s fund manager etc on 2-3 year basis. I dont think 70% of the investors are doing that. Suppose, if I only have to invest 3k and I have 3 top funds in that category then why not split amount in 3 funds cause, it will be less risky (then investor dont have to worry, too much on who is fund manager etc). As per above chart, franklin blue chip 5 years return was 13.10% and ICICI one (large cap) was 15.60%.. I understand, ICICI one will give high returns but who can tell future? So, if a investor select both funds then his return % will be 14.35%. What I am MISSING here?? I hope, you are getting my point. To me, I am feeling more secure in selecting 2-3 funds in each category. Suppose, I have to invest 10K then I will prefer to go in 10 funds with 1K amount. I really want to know, what I am missing here. Plz reply. Thx!
Dear Rahul,
Thank you for sharing your views.
Analyzing overlap among the funds is a suggestion, which can be one of the important factors to look out for and it is not THE factor.
Also, as you know that future returns are not guaranteed.
So, how confident are you that if one picks multiple funds with overlap can deliver better returns than minimum set of funds with less overlap??
If one has to multiple funds, does that mean an investor has to pick lot of funds across fund categories ??
In personal finance, there is no hard n fast rule, but it is always better to keep it SIMPLE. (as less no of funds as possible). This is my opinion 🙂
Too much diversification also hurts the returns as both profit and loss are spread out. So there is no right answer. The right way will be to watch your investment and make modifications / balance based on the returns. There are some people who make modifications every month and some every year, this depends upon your goal and how you are performing.
Dear Srikanth,
Thanks for your blog . I need your suggestion about my investments in Mutual funds.I am having below investments through SIP monthly started in the year 2013.My investment horizon is for more than 10 years.Could you please suggest if any changes are required.
Axis Long Term Equity Fund – Direct Growth- 2000
Birla Sun Life India GenNext Fund – Growth-Direct Plan- 6000
Birla Sun Life MIP II – Wealth 25 Plan – Growth-Direct Plan- 5000
Franklin India High Growth Companies Fund – Direct-GROWTH- 3000
Franklin India PRIMA PLUS – Direct-GROWTH- 3000
HDFC Balanced Fund – Direct Plan – Growth Option- 2500
ICICI Prudential Exports and Other Services-Direct-Growth- 5000
RELIANCE EQUITY OPPORTUNITIES FUND – DIRECT GROWTH PLAN GROWTH OPTION- 1000
SBI Blue Chip Fund – Direct Plan – Growth- 2000
SBI Emerging Businesses Fund – Direct Plan – Growth- 10000
SBI Magnum Multicap Fund – Direct Plan – Growth 2000
Tata Balanced Fund Direct Plan – Growth 5000
UTI-MNC FUND – DIRECT PLAN – GROWTH 3000
Regards
Anil Varghese
Dear Anil,
You may have to trim your portfolio a bit.
Kindly go through below articles and you may revert to me with your analysis;
How to select right mutual funds schemes?
MF Portfolio overlap analysis tools.
MF categories.
Hi Sreekanth,
Thanks for your blog and it helps. I need your suggestion about my investments in Mutual funds.
My investment is for more than 15 years.
Could you please suggest if any changes to the below.
Large-cap fund category :
UTI Equity Fund – 200000
Diversified or Multi-cap category
ICICI Prudential Value Discovery Fund – 320000
Franklin India Prima plus-100000
Small & Mid-cap fund category
UTI Midcap —20000
Hybrid – Equity oriented category
HDFC Balanced -400000
ELSS / Tax saving category
Franklin India Tax shield – 100000
Axis Long Term Equity Fund-50000
Dear Venkata,
All most all listed funds are good ones.
Kindly read:
MF portfolio overlap analysis tools.
How to compare mutual funds based on Risk ratios?
Dear Sreekanth,
My age is 30. My monthly salary is 80,000 and my living expense is Rs30, 000 per month. I am keeping six months of living expenditure as my emergency fund i.e. Rs2, 00,000.
My investment are in ratio of 30:70(Debt: Equity) for long term goals as below for 10-15 years
1. SBI – Blue chip – DP growth – Rs2000
2. ICICI Pru Value disc – DP Growth – Rs2000
3. Franklin small companies – DP Growth – Rs1000
4. DSPBR Microcap fund – DP Growth – Rs1000
5. Fixed Deposit – Rs3000
Currently I am paying LIC retirement policies of Rs5500 per month to get tax advantages. Along with I am going to start ELSS of Rs3000 from April 2017 in DSPBR tax saver for 10 years to save tax.
At the moment I have Rs5.5 lakh in my salary account and this will be keep on accumulating every month every month after my living expenses. I don’t want to keep the excess money i.e. Rs3, 50,000 ideally (after emergency fund) in my salary account as this will only get 4% interest. So kindly clarify my below queries with high liquidity.
1. I understand that the possible ways of money maximization techniques such as Swipe in Account, Monthly Income plan and debt funds etc. I am ready to invest 50% conservative and 50% moderate risk taking investment. Kindly advise the suitable options?
2. Please note that I was paying Home loan until last month and it is completed now. This was the reason for investing only Rs10, 000 out of my total salary of Rs80, 000. Considering this, can you please advise the tweaks required for my investment portfolio?
Dear Hariprasath,
You may kindly share details of your LIC policies (Plan name, commencement date & tenure).
You may pick one MIP Fund with growth & can also consider subscribing to Secured NCD issue (may be cumulative option of 3 to 5 years).
May I know your financial goals?
Dear Sree,
My Financial Goal :
1. Daughter’s Education & Marriage – 2028 to 2035
2. Retirement corpus to beat the inflation . I am planning my retirement in 2037 .
Insurance details are below
1. Exide life New Fulfilling Life
– Commenced on 19 – Feb – 2014
– Monthly pay of Rs 2097
– Payment tenure 16 years *12 months (192 months)
– coverage until 85 years
2. Jeevan Tharang Policy
– commenced on 29- May 2013
– Tenure 15 years
– Yearly of Rs 36000, i.e Monthly 3500
If my policies and plans are not opt, kindly advise the tweaks required for my portfolio according to my data.
Hi Sree,
I am planning to invest Rs3,00,000in Birla Sunlife MIP II Wealth 25 Plan- Direct Growth. I am going for SWP rather than dividend. I understand that there will be a exit load charge for the investments before completing a year. Kindly note I don’t have immediate money need for my lump sum investment and can wait to grow for the next 2-3 years. Is that okay ?
or
Do I need to invest somewhere ? Please advise according to the new budget data. 🙂
Many thanks.
Hi Sree,
Awaiting for your valuable response!
Kindly advise.
Dear Hariprasath,
We have been facing some technical issues for the last few days, hence delay in replying to queries.
Exide policy is a typical Traditional Endowment plan. You may consider surrendering this policy.
LIC Jeevan Tharang plan is an Whole life plan, you may consider surrendering this one too.
You may discontinue these if you have adequate term insurance cover (else buy term plan and then discontinue).
Are you in need of periodic income? Reason for planning SWP?
Also, kindly read;
Kid’s education goal planning .
Retirement goal planning & calculations.
Thanks Sree.
1. I thought of opting SWP in place of dividends. I need to park my excess money somewhere so that I will get more interest than FD but if I need that money for any purposes (which exceeds my emergency fund), that should be easily withdrawn (but in rality, I can wait to grow for the next 2-3 years)? Kindly suggest that option. Birla Sunlife MIP II Wealth 25 Plan- Direct Growth suits here? or suggest some better fund?
2. Regards to the LIC & Exide plan – Can I come out immediately as I paid premiums for 3 years ?
3. After exiting of insurance policies with term plan cover, where I can park my existing premium amounts ? As mentioned earlier , I have below funds &SIPs. Kindly advise
. SBI – Blue chip – DP growth – Rs2000
2. ICICI Pru Value disc – DP Growth – Rs2000
3. Franklin small companies – DP Growth – Rs1000
4. DSPBR Microcap fund – DP Growth – Rs1000
Dear Hariprasath,
1 – If you do not require periodic income, you may just opt for Growth option. Birla fund is a good one.
2 – Yes. But discontinue only after buying a term plan with adequate life cover. Read : How to get rid off unwanted life insurance policies?
3 – You may increase your SIP amounts 🙂 to meet your long-term goals.
ManythanksSree.
Hi,
I have some monthly safe investments, but they won’t give high returns.Along with the safe investments, I want to invest 20k to 25k/Month for 25 to 30 years duration for my retirement.I want to choose best SIP plans which give high return (Long term).Could you please suggest.
Thanks,
Venkat
Dear Venkataramaiah,
Kindly go through above list and you may read below suggested articles;
Retirement goal planning & calculations.
How to pick right Mutual Fund scheme based on Risk ratios?
MF Schemes portfolio overlap analysis tools.
Hi,
Hope you are doing good!!
I need some help reg the investment plans.
Background: IT Consultant, I am at onsite USA and have saved around 15 lakh and returning to India
Objective: To invest the saved money in 5/10/15/20 yr Plans to have sufficient at that time.
Salary in India: 8 lakh PA
Expenses: Home Loan EMI 22k PM and General
Age:30
Current Investments: FDs-(2+ 2+1) lakh maturing at March 2017 || PPF-50k PA||
Dear ANKUSH,
May I know if you are a married person and have dependents?
Do you have adequate life & health insurance cover?
Suggested articles:
My MF portfolio.
How to select right mutual fund scheme?
List of investment options.
Hi,
Thanks a lot for the response. and sorry for my late reply.
Yes,i am married and have no dependents.
Yes i have Life Insurance cover from SBI & HDFC.
Best Regards
Ankit
Dear Ankush,
If possible, do share the life insurance policies details (Plan name & Sum assured).
Suggest you to buy a Personal accident cover and health insurance cover for self/family.
Kindly read:
Retirement goal planning & Calculations.
List of important articles on Personal Financial Planning.
Hi,
I have SBILIFE – Smart ULIP and hdfc life progrowth plus.Sum assured in first one is 5 times the annual premium and in second its 10lakhs.
It’s on cards to buy the cover for my spouse asap.
Dear Ankush,
Do you believe that the total life cover you have is sufficient?? (considering your income & living expenses).
Kindly read:
If life is unpredictable, insurance cant be optional!
Term insurance Vs traditional life insurance plans.
Best term insurance plans.
Hi,
Many thanks to you!!
It was really a life saving advice.
I am checking for Term insurances and planning to do the same asap.Will update you which one i took (b/w LIC and HDFC)
One more update: I have added 5k PM deposit to PPF.
Best Regards
Ankit
You are welcome..keep visiting!
Hi Sreekanth,
First of all a big thanks to you!! for helping people like me to be to be able to plan their life in better way and also of their loved ones.
I have now
50 lakh cover :For Me from ICICI,
50 lakh cover :For Me and Wife from Max life
50 lakh cover (Pending )) :For my Wife from LIC or Aegon (Not decided yet)
if possible please help me now on Mutual funds as i mentioned my situation before
” saved around 15 lakh …)
Objective: To invest the saved money in 5/10/15/20 yr Plans to have sufficient at that time.
Salary in India: 8 lakh PA
Expenses: Home Loan EMI 22k PM
Invstmnts (Now ): PPF 50k + 50k Life Insurance+ 25k Term insurances all Per yr.
FDs-(2+ 2+1) lakh maturing at March 2017″
Dear Ankush,
Have you taken Term policies in just one day?
May I know if your spouse is an earning member of your family?
You can portfolios like Short, Medium & long-term goals and pick funds accordingly.
Kindly go through below articles and you may revert to me:
MY MF portfolio.
Use the calculators available in my earlier suggested articles (Retirement & Kid’s education goal) and arrive at required savings amount for respective goals.
Hi,
In 2 days…Online.
No,my wife is currently not an earning member.
sorry,
to update got emails from the poilcy company to set up medicals tests after that only policy will be issued…
Dear Ankush,
Kindly note that your spouse, if not an earning member, life cover may not be essential.
You may also get yourself adequately covered through a Personal accident insurance plan and a Family floater health insurance plan (if applicable).
Hai bro gud eveng…this is pradeep…could plz suggest me how can i get more money…i am earning 25 k per month…i have already investing 1000 in each sbi blue chip..sbi pharma direct..sbi small cap…i can invest one more thousd in any other mf.. plz suggest me…i am 29 now..
Dear pradeep,
May I know your investment objectives & time-frame?
And why SBI schemes only?
Hi Sreekanth,
I want to invest 1 lac that I would need in June’17 for my daughters education ecpenses.
Do not want to keep this idle till then.Where do I invest this ?
Rgds Roy
Dear Roy,
You may consider a Liquid Fund.
Kindly note that there can be taxes applicable on Short term capital gains (if any) on Debt funds.
Ok Sir thank you for your advice.
Regards,
Roy
Hi Sreekanth,
My current portfolio comprises of (70:30 debt ratio). Mutual Fund SIP is below.
Large Cap –> SBI Blue chip – 2000 p.m
Multicap –> ICICI Pru Value discovery – 1000 p.m
Mid & Small –> Franklin smaller comp – 1000 p.m and DSPBR Micro cap – 1000 p.m
Also I am going to invest Debt funds or MIP funds in place of RD & FD as you advised so my portfolio will remain in the 70:30 ratio.
However I need to invest in ELSS funds to get a tax exemption. Considering above funds , can you advise whether I can go for DSPBR tax saver or Franklin Tax saver with investment horizon 10 years with moderate risk ? I observed DSPBR tax saver has performed consistent in last 7 seven years compare to other funds where as Franklin has very good long term returns but returns lesser than DSPBR. Is DSPBR tax saver good choice ? If not, indicate me a good fund to invest
Also do I need to consider my non ELSS fund distribution also while selecting ELSS funds?
Which cap is expected to perform well in the future?
Dear Hariprasath,
As your investment horizon is 10 years, you may pick DSP tax saver.
Franklin taxshield fund primarily invests in large cap stocks hence the returns are normal but consistent.
Thanks Sree.
I have also two queries pending.
1. Do I need to consider my non ELSS fund debt ratio also while selecting ELSS funds since I am planning to pay SIP of 4000 per month in MF, this will affect my 30-70 debt ratio?
2. Which cap is expected to perform well in the future?
Dear Hariprasath,
As ELSS fund is an equity oriented fund (typically ELSS funds follow diversified or mid-cap oriented strategy in corpus allocation), you may consider this allocation as well to maintain the required ratio.
Hello Sir,
I am Aditi Gulecha. I have started reading your posts and have found them very informative and easy to understand.
I am a beginner investor in Mutual Funds. I am looking for a mutual fund that gives me monthly payout. I want to invest Rs. 1 lac for a period of one to two years. Kindly suggest a good mutual fund option that gives me a considerable return on my investment. Should i invest in multiple funds?
Dear Aditi,
Would like to get capital appreciation (return on investment) or periodic/fixed monthly payment?
Kindly read:
Best MIP Mutual Fund Schemes.
Best investment options .
Sir
I am investing following MF through sip
1. Sbi emeriging businesses fund -1000 5th
2. Reliance tax saver -2500 10th of month
3. Axis long term 2500 15th of month
4. Idfc premium equity fund -2000 20th of month
5. Sbi gold fund-1000 25th of month
It is ok for 10 years or make any change. Pl guide.
Dear RITESH,
You may switch from IDFC premier fund & SBI fund to other mid-cap fund.
Kindly read:
How to select right mutual fund scheme?
MF portfolio overlap analysis tools.
Dear Sir,
I am newly for MF i want invest Rs 5000/- per month for 5 year to higher returns from FDR Please suggest me for better to better
Dear ANIL,
Assuming you understand the risks associated with equity funds;
You may consider investing in an Equity balanced fund. Ex – HDFC Balanced fund.
Hello Sir,
I have been investing 2k per month in two Mutual Fund through SIP since 6 months .1- Franklin India Smaller Cap Fund & 2.- Reliance Vision Fund & want to increase another 2k in SIP.
Pl suggest another good funds & advice about Reliance Vision fund since few people is saying that Reliance Vision fund is not performing well last 5 to 6 years. should i discontine with this fund & invent in another fund.
My Investment horizon is minimum 10 years.
I am also looking for Term plan, currently my age is 33 years and want to opt for 30 years plan. i have learnt news from market that is few insurance companies are returning back premium amt after completion of term which would deposited during tenure. Is it true? if yes than suggest few insurance company.
Dear Rajput,
Reliance Fund has been performing well for the last 12 to 18 months or so, but kindly note that its risk grade is HIGH.
The fluctuation of returns can be on higher side.
If you would like to switch to another Large cap fund, you may consider Birla Frontline Equity fund.
You may add one diversified equity fund to your portfolio.
Term plan : You are referring to ‘return of premium’ plans. But suggest you to kindly consider term plan with basic cover and also buy a separate Personal accident cover.
Read:
Best Term insurance plans.
Best Personal accident insurance plans.
Hi Sreekanth,
Once again a very valuable and influential article.
I am looking to invest for long term(15 yrs +). Below are my sections of MF, request you to
kindly review and advice if any change require and asset allocation(%) please.
All MF Direct Growth option:
1) HDFC Balance Fund
2)Birla Sunlife MIP II WEALTH 25 Plan (Mid term goal – 10 yrs)
3)UTI MID CAP Fund
4)Franklin India Smaller Companies fund
5)Mirae Asset Emerging BlueChip-G
6)SBI Blue chip
7)ICICI Pru Value Discovery fund
Dear Samir,
Your portfolio looks fine.
You may have higher allocation to midcap funds as your time-horizon is 15+ years.
Kindly read:
MF portfolio overlap analysis tools.
How to select right mutual fund scheme?
Appreciate for your advice Sree
Overlap is in low twenties for above funds.
Also, i have some surplus cash(3 Lac) which needs to be invested. Can you suggest some fund for a period of 12 months. which will suit me the best Ultra Short, Short, Liquid or Arbitrage fund considering the factors-Investment return, Exit load & Tax implication on redemption.
Thank you in advance
Dear Samir,
You may consider an Arbitrage fund and hold the units for just over 12 months to get tax-free gains (if any).
Kindly read: Best Arbitrage funds.
Hi Sree, Hats off for ur efforts in sharing your knowledge! I would like to invest 25L in equity based mutual funds. I will be diversifying it into Small, Multi & Mid Cap funds. Can u kindly clarify the following?
1) Since its a lumpsum amount should I invest 5L monthly in a timespan of 5 months or should I invest all in one month?
2) Is there any thumb rule when to buy the funds? I mean month end, beginning or mid of a month?
3) Do the NAVs change on daily basis?
Thanks in advance!
Dear Pranali,
Thank you for the appreciation!
Kindly refer to our FB chat 🙂
Hi Sreekanth,
I have a query with respect to the way the data has been written.
For eg: Birla SL Tax plan (ELSS) 10 year return is 10% -> Does this mean if we had invested Rs 10000/- then after 10 years the return is only 10% i.e. Rs 11000/- ?
Please educate.
Thanks,
Ramya
Dear Ramya,
The returns you are referring to are ‘Absolute returns / Holding period returns’.
The listed returns in the article are Annulized / Compounded ones.
Kindly read : Five important formulas to calculate returns on investments
Simple and wonderful explanation. Thanks a lot
Hi
I’m planning to invest in Franklin India Tax Shield – Direct Plan (G),my current financial objective is to save tax for FY 16-17.Anyway i will keep this amount invested for 5+ years.
I’m planning to invest a lumpsum of 40000.
I had already invested Rs 10000 in Franklin India Tax Shield – Direct Plan (G) this month (Jan-2017).
Now i want to invest remaining 30000 also.
I have 3 questions.
1.While investing again should i divide this like 3 installment of 10K or one installment of 30K. Any adv/disadv in splitting ?
2. While investing 10K the NAV of the fund was 458 which was high considering the past 1 year performance.
In your ‘My observations & general suggestions’ section you have mentioned like ‘you can make additional investments (lump sum) when you believe that markets are down.’
Does this mean i have taken a wrong decision by investing now since markets/NAV is high?
Is it safe to invest in remaining 30 K this month itself?
3. At worse case scenario,would there be any loss in my capital amount if i withdraw after 5 years?
Dear Vishnu,
Adv/Dis adv, it all depends on what NAV (high or low, relative to your current holdings NAV) & market conditions.
No one can predict the future. We may be wrong if we assume that current markets are at high level 🙂
Suggest you to make the additional investments as 2 – 3 installments, with a hope that markets give you low NAV in next 3 months.
Yes, there can be a capital loss w.r.t Equity investments.
May be the wrong question for this article, my employer told the last date to submit any investment proofs is Jan 31.
My question is ,can i submit my investment proofs for Feb and March month separately after March 31st.
ie. I will submit my investment proof from Apr-16 to Jan-17 to my employer,
then for remaining 2 months since my employer will not accept can i submit the proofs online after March 31st.
Dear Vishnu,
Kindly note that there is no need to submit / enclose investment proofs along with your income tax return.
But if you have made investments (tax saving) and not claimed during the FY (with your employer), you can claim them when you file income tax return.
Read: IT declaration & investment proofs.
Dear Sreekanth,
I am planning to invest a lump sum of around 10 lakhs in MFs. This is for my wealth creation and can hold for 10 years. What would be the best approach to invest it? Investing all at the same time or STP? If STP, how can I split the amount and duration?
Dear Eswar,
You may opt for STP route for next 12 months.
You may consider a balanced fund, diversified equity fund and one mid-cap oriented fund, and their respective liquid debt funds.
Read
Best Debt mutual fund schemes for 2017.
Dear Sir
I am Sanjay Kumar, I am investing 7500 permonth as following
AXis long term equity 2000 pm
BSL Tax relief 96- 2000 pm’
Reliance Tax saver -2000 pm
Franklin india tax shield 1000 pm
DSB BR Tax Plan 500 pm
i have started this SIP 5 months back only , My time horizion is 7 yrs approx to build god corpus to buy a house, rest i can take loan
and the reason i chose all ELSS was to save tax as well along with wealth creation as my annual income is 5,00,000 (gross) or 4.25 lakh net in hand
kindly advise me on my protfolio , any changes reguired or is it ok to keep investing in theses MFs only
thanks in advance
Dear sanjay,
I believe investing in too many funds that too from same fund category can be avoided.
Kindly check portfolio overlap among these funds and try to limit to may be 2 funds.
Kindly note that units allotted under each SIP of ELSS fund have a lock-in period of 3 years, so you need to plan your withdrawals accordingly.
Read: How to select right mutual fund scheme based on Risk ratios?
Hi Sreekanth,
First time visitor here and I loved your write ups. Thank you for such good insights. May I ask your advise on investment. I wanted your opinion on the best funds to invest a lumpsum of 30 lakhs. is it better to invest 30 lakhs across 3 -4 years or do you suggest any other method.
Dear Rohit ..May I know when do you require to withdraw this corpus? What are your investment objectives?
Dear Sreekanth,
Presently I am investing Rs. 5000/Month in HDFC Top 200, ICICI Pru Focussed Bluechip, ICICI Pru Value Discovery, UTI Equity and UTI Opportunity Fund. All are growth option and investment amount Rs 1000 each.
My questions are:
1. Are they good enough as my goals are long term?
2. Do I need to change any of them or discontinue any?
3. I can invest Rs. 10000/Month more. Suggest me funds.
Regards,
Debasis
Dear Debasis,
You may discontinue UTI funds and consider adding one mid-cap fund like HDFC Mid-cap opp fund or Franklin Prima fund (assuming your time-frame is say 10+ years).
Read:
How to select right mutual fund scheme?
MF portfolio overlap analysis tools.
Dear Sreekanth,
Thanks for your comments. Hope to learn more from your blog. Hv a good day.
Hi Sreekanth,
I was wondering if you can help us understand about bitcoin investment by writing a blog please?
Is it worth buying that for long term?
Many Thanks
Dear Parimal ..Will try to write an article on the suggested topic.
Hello Sreekanth, I want to invest Rs 2000 each in following SIP funds for good returns. Do you think they are fine or suggest something else?
Birla SL Frontline Equity fund – 3 years – Rs 2000
Franklin India Smaller Companies Fund – 3 years – Rs 2000
Franklin India High Growth Fund – 5 years – Rs 2000
Dear Shalini,
Suggest you to not to consider mid/small cap funds if your investment horizon is around 3 years.
Thanks for the suggestion Sreekanth. So, which MFs should I consider for 3 as well as 5 years…..can you specify for both please??
Dear Shalini,
For 3 year horizon – you may consider Short term / dynamic Debt funds or MIP funds.
Read:
Best Debt funds.
Best MIP Funds.
For 5 year horizon, you can consider one Large cap fund and one balanced fund.
Ex – Birla Frontline equity and HDFC balanced fund.
Srikanth,
I am planning build MF portfolio with 10 years as total investment horizon and next 1 year with high SIPs (may be 1-1.5 lakh per month) and small amounts per month (may be 20k) from there on wards. Below is the diversification I am planning. Please let me know your comments on fund mix / investment size / horizon / any other comments.
ICICI Prudential Focused Bluechip Equity Fund (35%), ICICI Prudential Value Discovery fund (20%), Mirae Asset Emerging blue-chip fund (20%), DSPBR Micro cap Fund (25%)
Dear Alpha..You may kindly go ahead with your investment plan.
Dear Srikanth,
Happy New Year. I am new beginner investor in mutual funds with no experience. Currently invested very minimum amount in the following funds :
1.Kotak Select Focus Fund – Growth
2. SBI Blue Chip Fund-Growth
3. HDFC BALANCED FUND – GROWTH
4.Birla Sun Life Balanced ’95 Fund-Growth
5. ICICI Pru Balanced Advantage Fund Regular Plan Gro
6. DSP BlackRock Micro Cap Fund Regular Growth Plan
7.Franklin India Smaller Companies Fund – Growth
I am planning to build a long term portfolio with a time frame of 5 to 10 years and my risk acceptance is average/medium and looking for long term returns.
Can you pls. provide your feedback on the above funds. I am planning to invest around 20 to 25K per month and feedback regarding the adding following funds to my portfolio :
HDFC Midcap Fund
ICICI pro focussed blue chip fund
Birla SL Frontline Equity Fund
Thanks.
Dear Jaguar,
All the 7 funds are good ones, but you have multiple funds from same fund category.
For ex: 3 balanced oriented funds.
So you may check for any high portfolio overlap among these 3 balanced funds, can drop two (if there is high overlap say >40%).
I believe there is no point adding large cap funds (like icic focused or birla frontline) as you already have one large cap fund (SBI bluechip). So, you may invest additional amount in existing funds only (after checking for overlap).
Read:
MF portfolio overlap analysis tools.
How to select right mutual fund scheme?
Dear Srikanth,Recently ET mutual fund has come out with a mutual fund portfolio for aggressive,moderate and conservative investors.Please give your own advice on mutual fund portfolio.
Dear Bansal ji,
I have given the list of best funds as above, one can build a model portfolio based on his/her own requirements..
REPLY continuing question
January 3, 2017 4:42 pm
Sir,
If I invest today & change in tax rate & or slab in budget 2017-18 in 1 February 2017,
Which tax rule will be applicable on my today’s investments
Dear Pankaj,
Let’s you redeem fund units in financial year 2017-18, the taxation rules that are applicable for FY 17-18 are considered.
Hi Srikanth,
Thanks for this informative blog. Could you please suggest if the below funds are fine to proceed with a long term objective, for a period of 5 to 8 years?
DSP BlackRock Natural Resources and New Energy Fund – Direcit Growth
DSP BlackRock Focus 25 Fund – Direct Growth
Cana Robeco Emerging Markets Fund – Regular Growht
Birla Sunline Pure Value Fund – Regula Growth
SBI Magnum Equity Fund – Regular Grwoth
I am investing 1k per month in these funds from last one month.
Dear Ramesh,
DSP focus 25 is a large cap fund and is a good option.
Canara fund is a small cap and there are better alternatives in this category.
Birla fund is fine.
SBI Equity is a large cap fund, so you may check the portfolio overlap between this fund & DSP fund.
Read: MF portfolio overlap analysis tools.
I wish to start SIP with following asset allocation
equity:debt = 60:40
within equity
large:mid:small = 50:30:20
Planning to buy one scheme from each of these so a total of 5 schemes
My questions are:
1. Should I have 1 multi cap scheme in equity instead of 3 or in addition to these three? How I’ll control asset allocation in that case?
2. Similarly should I have just 1 balanced scheme instead of these 5 or in addition to these 5? How cap allocation can be controlled with balanced scheme?
3. I have some FDs in nationalized banks, cooperative banks and companies like Muthoot finance. Should I consider these as my debt exposure or should I have additional debt funds? Or should I buy debt funds as and when the fds mature?
Thanks.
Also is bitcoin investment a wise choice now?
I am planing to take SBI Life – Smart Scholar ULIP plan for my son (6 months old).I am planing to pay 1lakh per year for 5 years.
I am expecting maturity amount of around 22lakh after 18 years (for education).In this plan I have to select one of the below fund. Which fund I should select ? Everybody is selecting Bond Fund I don’t know why ?
a)Equity Fund
b)Top 300 Fund
c)Equity Optimiser Fund
d)Growth Fund
e)Balanced Fund
f)Bond Fund
g)Money market Fund
Is it a good plan ? or Should I go with a SIP or any mutual fund plan to achieve my goal?
Dear Sam,
Given a choice, I prefer SIP in equity funds to investing in an ULIP.
Kindly read:
Kid’s Education goal planning & calculator.
List of important articles on Personal Financial Planning.
Thanks Sreekanth,
According to your article, this is what I understand:
73,382 per year for the next 12 years = 880584, to get around 15.69 Lakh after 12 years, right ?
This is what SBI Life – Smart Scholar guys say:
100000 per year for the next 5 years = 500000, to get more than 20 Lakh after 15 years. Is it true ?
They said, money will go to Bond Fund. (will get more if we select balanced or equity fund)
I got that info from site below.
Url link : https://goo.gl/vfGrmM
Dear Sam,
Assuming a same Rate of return will lead to same results be it any category of product (insurance or mutual funds).
The point her is flexibility, cost, transparency, options/choice, etc need to be considered.
Hi Sreekanth,
Thank you for this informative blog.
I plan on investing a sum of Rs.10000/- every month in the form of an SIP for 8 years in the following proportion. Kindly let me know if you think this proportion is alright.
1. SBI Bluechip fund – Rs.2000/-
2. L&T Value fund – Rs.3000/-
3. HDFC Midcap fund – Rs.5000/-
I also have some lumpsum investments made in the following funds:
1. L&T equity fund
2. IDFC Premium equity fund
I need your advice on retaining these funds or switching them to any other funds. I have been holding these two funds for more than 2 years now.
Thanks in advance for all your valuable time and suggestion.
Regards,
Ranjini
Dear Ranjini,
You may switch from IDFC fund to HDFC & L&T value fund.
If you want to build an aggressive portfolio then current allocation is ok, else you may reduce the allocation to Mid-cap fund a bit.
Hi sir,
I am 21 year old student.
I’m planning to invest Rs 2000 in SIP for a time period of 3 year . My plan is to invest Rs 1000 each on two mutual funds. I have no knowledge of the market.
Which mutual funds are suitable for me.?
Please advice and help me to select a fund.
Dear Azhad,
Though time-horizon is short-term, considering in your age/profile, you may consider starting with an Equity oriented Balanced fund & an aggressive MIP fund.
Ex : HDFC balanced fund & Birla MIP II Wealth 25 fund.
Read:
Best MF MIP Funds.
MF taxation rules.
How to select right mutual fund scheme?
Hi Sreekanth My investment horizon is 10 years. As per Asset allocation definition mentioned in various articles I understand that debt should be 40% and equity should be 60%. As per my current portfolio total savings per year is Rs 1,20,000 and portfolio allocation is Debt – 50% and Equity 50%. (Rs 60,000 each). To achieve a proper mix of portfolio, I need to invest 10% more in Equity side.
Also please note that my home loan is completed this year , due to this I am unable to show interest/Principal component for tax deduction. Hence I thought of investing in ELSS funds which will give me tax saving as well as wealth creation. I am going to put the pending 10% equity in ELSS side. If I do so, my portfolio also will be in correct mix and tax will also be reduced. please note , I have sufficient coverage for life insurance too as mentioned.
Now Kindly advice based on the above facts,
1. Is my portfolio is in a correct mix?
RD & FD – Rs 60,000 per year and no Debt mutual funds (40% Debt)
Equity portfolio – Total of 90,000 per year considering below SIPs (60% of Equity)
a. Large cap–> SBI Blue chip – Direct Growth – Rs 2, 000
b. Multi cap–> ICICI pru value disc fund – Direct Growth – Rs 1,000
c. Small& Mid cap
a) Franklin Small companies- Direct growth – Rs 1,000
b) DSPBR Microcap – Direct Growth – Rs 1,000
d. ELSS Funds – 2500 per month
2. If some of the above funds are not preferable, kindly mention
3. Advise some good return producing ELSS funds (moderate risk)
My age is 30 and am a moderate risk taker
Dear Hariprasath,
1 – May I know the reason for choosing FDs/RDs? Any specific investment objective?
Kindly read:
Types of Debt funds.
Why it is advisable to avoid investing in FDs/RDs for long-term?
2 – The chosen funds are good ones.
3 – You may opt for Franklin Taxshield fund.
Thanks a lot Srikanth!
I thought FD and RD can be safest way rather than Debt funds as I am already investing in equity funds. If you think, FD/RD are not appropriate for long run, please suggest some better funds to replace FD&RD . Otherwise can I increase my allocations in equity itself? If yes, please advise.
Now I want to add one more query as well. I understand that the large cap funds will appriciate and do well in near future due to demonetization . If so suggest one more Large cap also please.
According to my above response, kindly advise my first query
1. Is my portfolio is in a correct mix?
Dear Hariprasath,
Debt funds or mip funds can be a better alternative to FDs.
Read:
Why it is prudent to avoid FDs/RDs for long term?
Best Debt funds.
Best MIP Funds.
Your existing portfolio is fine and can make additional investments in them itself.
Many thanks Sree!
Hi Sreekanth,
Have a Prosperous Year 2017. My favorite article again, thanks.
What is your opinion about the fund – Sundaram Select Midcap Fund -Direct plan? Can I continue the investments this year too?
Happy new year dear Jayan 🙂
May I know your investment horizon & other existing funds (if any) of your portfolio?
My Portfolio is – UTI Midcap fund, Axis Long term equity fund, Franklin Prima plus, DSP Micro cap, Reliance growth fund, ICICI value discovery, BSL MIP II Wealth 25 & Sundaram select midcap.
My investment horizon is 10+ yrs.
Dear Jayan,
You may switch from sundaram fund to UTI mid-cap.
Also, do check if there is any high portfolio overlap among Axis LTE, Franklin Prima plus & ICICI Value discovery funds.
Read: MF portfolio overlap analysis tools.
Hi Sree, my investment horizon is 10+ years.
Hello Sree Sir
Q: I earn 25000 per mnth and I want to start with 2 SIPs of 2500 per mnth out of the following:-
1. SBI Bluechip fund
2. HDFC Balanced Fund
3. ICICI PRU value discovery fund
4. Axis LTE fund
I want one fund for 3-5 yrs and one for 7-8 yrs. Please help me choose.
Also for the mentioned time horizons, is it right going with equity or shud I add any debt fund to my folifo instead. Please guide me coz I’m clueless on share market and its behaviour.
Thanks
Regards
Dear Debashish,
If you are new investor, suggest you to consider MIP aggressive fund for 3 – 5 year horizon and an equity oriented balanced fund for 5+ years.
Ex – Birla MIP II Wealth 25 plan & HDFC Balanced fund.
Kindly read this article on MIPs.
I want to invest 25 lakh for 6-10 months,& 30% tax slab.
1)Currently guilt/dynamic funds avg.return 13-14%, Is these funds gives same return in 6-10 months.
2)In arbitrage,short,guilt,or dynamic,which funds gives (lump-sump) max. return in 6-10 months after deductions exit load,Income tax etc etc.
Dear Pankaj,
1 – Mostly may not give the kind of returns they had given during the last 1 year.
2 – As your investment horizon is short term suggest you not to chase returns.
You may consider Ultra-short term debt fund / Arbitrage fund.
The capital gain tax rate of 15% is applicable on Short Term Capital Gains (if any) of Arbitrage Fund.
Sir,
If I invest today & change in tax rate & or slab in budget 2017-18 in 1 February 2017,
Which tax rule will be applicable on my today’s investment
hello sir i have done KYC with pancard at cams recently. is it necessary for every MF i need to apply for kyc like with other MF companies that are not associated with cams. if i invest in MF do i need to pay tax for investing amount. plase reply
Dear praveen,
No, not required. Its one-time task.
Taxes (if any) are applicable only at the time of redemption.
Kindly read: Taxation rules on MF investments.
Dear ShreeKanth,
Thank you very much for such an informative post. You are the reason why I started MF investment and now it is time for me to review my investment for 2017. I am MF investor from last 8 months only and I am investing in following fund for 12-14 year time horizon for child education and 20-24 years for retirement
Equity
1) HDFC balance fund- 15% (5% of this balance fund goes to debit fund)
2) HDFC mid cap oppurtunity 10%
3) Axis long term equity fund- for ELSS 40%
4) Franklin smaller companies fund 10%
I do not have separate large cap allocation because Axis ELSS spent 75% in large cap (75% of my 40% allocation = 30% for large cap plus there is some 50% large cap in HDFC balance which makes total 37% allocation to large cap, 33% to mid/small cap and 30% to debit fund)
Debit-
1) Franklin India Ultra Short Bond Fund-Super Institutional Plan- as liquid fund 5%
2) Franklin Low duration Fund- direct growth- ultra short term 10%
3) ICICI long term plan direct growth- dynamic fund 10%
Apart from that I have FD as emergency fund for 4 month of salary and if further needed, I will use liquid fund for that. I have max life term plan which is 15 time higher than my annual income and apollo health insurance which is 8 time of my monthly income.
Do you suggest for any change in equity or debit portfolio or to add/remove any fund. In long tun, I am expecting 13% return from my equity part and 8% from debit part, I am moderate-high risk investor, at least for the next 10 years until I become 45 years.
Many Thanks in advance and spending you valuable time with me.
Dear Ritesh,
Agree with your take on Axis LTE fund portfolio allocation, it is like a large-cap or multi-cap oriented fund besides an ELSS fund.
The MF portfolios are fine.
May I know your investment time-frame for your Debt fund portfolio?
Kindly read:
Retirement goal planning & calculator.
Kid’s education goal planning.
Thanks for kind reply.
Honestly I am still confused about time frame of my debit fund so simple answer is I put money in Debit fund to reduce risk of my equity part and there was not other reason.
I am keeping ultra short term and short term fund for may be 6 month to 1.5 year. but I am confused about ICICI long term plan-dynamic fund it could be 1 year or it could be even 3 years. moreover, in the last one month it is giving -ve return and I am not sure if I want to keep it till 3 years to have indexation benefit. What is your suggestion?
P.S- Though I am not in loss (nominal 1% of total value loss) in the total equity despite investing in SIP from last 8 month when market was higher. I invested in all debit fund just 1.5 month ago because of the sudden fall in equity. What is your suggestion ahead specially for debit part?
Dear Ritesh,
I believe that we may be at the fag end of interest rate cuts by RBI. So, debt funds over the next couple of years may not give the kind of returns that they have given during last 2 – 3 years.
You may consider Short term debt funds.
Dear Sreekanth,
I am planning to invest 10L on following funds .
Birla MIP II wealth 25 Plan – 3L
HDFC balanced fund -2L
DSP BR Micro Cap – 1L
ICICI Prud Value discovery -1L
ICICI Prud Long Term debt Fund – 1 L
All Direct funds with growth option. Please advise and help me to select a fund for remaining 2L
Also, What is the difference between long term debt fund and Dynamic debt fund. Which one you recommend
Thanks in advance
I have a plan of 3-5 years time . Also kindly advise on SIP plan with moderate risk
Dear Sanba,
If your time-frame is around 3 years, you may avoid a Small cap fund (DSP fund).
Kindly read: Types of Debt funds.
Dear Sreekanth, Thanks for your quick reply. Can you please advise on a SIP fund i can go for
Dear Sanba..You may set up SIP in your existing balanced fund.
Thanks for the info. Your topics are informational. I want to invest in MF (SIP). I want to invest 3000 monthly. I have no knowledge of the Market. How should I invest in MF and whom should I contact. Please help.
Dear Naveen,
You may consider a equity balanced fund to start with.
Read: Best balanced funds.
You can invest through,
– Found house websites.
– Mutual Fund advisors
– CAMS offices
– MF Utility online platform
– Online distributors like Fundsindia, ICICI Direct, etc.,
If your PAN is not kyc compliant, you have to get it done, you may read: What eKYC?
Hello Sreekanth,
I somehow feel that ICICI Value discovery fund should not be included in the list owing to its huge AUM and also since 1 year its performance has been dismal.
Also the same applies to HDFC Midcap opportunities owing to its huge AUM.
I also would like to know your opinion as to whether I should continue my SIP in SBI Magnum GLOBAL fund which also is lagging in terms of past one year performance.
Dear Lalit ,
1 year is a very short period to measure the performance of a fund which has been doing well for last few years.
Since how long have been invested in SBI Global fund?
It is a mid-cap oriented fund, I prefer other mid cap funds as listed in the above article.
Thanks Sreekanth for your reply. I have been investing in SBI magnum global fund since 2 yrs through SIP mode. Would you still recommend to continue my SIP in the above fund.
Dear Lalit,
You may hold existing units in the fund and opt for other mid-cap fund for future SIPs.
Sir,
If interest rate is 6-7% till/for 6-7 years,
In this scenario,
1) If I invest today, what expected return in dynamic & gilt funds respectively.
2) Some dynamic funds have average maturity > 10/15 years bonds. Is these funds gives 9-10% return in next 6-7 years
Dear Pankaj,
I believe that one can expect returns of around 9% from gilt or dynamic debt funds (on a conservative basis). We need to see how GST implementation affects the prices of Goods & services, and its impact on Inflation over the next couple of years.
HI SIR…I HAVE INVESTED IN FRANKLIN INDIA TAX SHIELD AND AXIS LTE….this is my first 8 months …both funds are not performing well as of now….I AM ON SIP AND GROWTH PLAN….should i wait for few more years or should i changes my ELSS fund???
Dear senthil,
8 months is too short a period to measure the performance of your Equity fund portfolio. Suggest you to keep a track of your portfolio for 1 more year at least..kindly remain invested.
Hi Sreekanth Reddy,
Sir, Currently I am investing 10,000 per month in 4 Funds through SIP. Now I would like to add another 5000 per month. You may please suggest me on choosing the right fund and please do guide me on the existing funds too if any change required whether I can continue investing with them.
Current Funds
1. Axis Lt Equity Fund (G) – 2500/month
2. Canara Rob Emerging Equity Fund (G)- 2500/month
3. HDFC Balanced Fund (G) – 2500/month
4. ICICI Pru Balanced Fund(G) – 2500/month
Sir my investment plan is for like long term for a period of 7 or 8 years. Please guide me sir
Dear Suman,
You may pick a better mid/small cap fund than Canara Emerging fund.
Ex – HDFC Midcap opportunities fund or Franklin Smaller cos fund.
The other three funds are good ones. You may add Rs 5k into these funds itself.
Hello Sreekanth,
I am 32 years of age and starting to invest in MF or the first time.
i have a medium to high risk appetite and i am looking for a period of 5 to 7 years to stay invested.
based on your article, with a monthly investment of 4000 i am thinking of investing with the below breakdown:
1. HDFC midcap opportunities fund (small/mid-cap fund): 2400 (60% allocation)
2. Birla Sunlife Frontline Equity Fund ( Large CAP) : 1000 ( 25% allocation)
3. ICICI PRU value discovery Fund (Diversified) : 600 ( 15% allocation)
Please suggest.
Thanks a lot.
Ritesh
Dear Ritesh..Fine, keep a track of your portfolio performance atleast once in a year.
Very good Article , I am very new in MF and planing to start SIP for 10k per month for long term.
SBI Blue Chip Fund (G) – 4000/month
DSP-BR Micro Cap Fund – RP (G) 3000/month
ICICI Prudential Value Discovery Fund 3000/month
Please suggest .
Thanks & regards
Suman
Dear Suman..Looks fine. You may consider these funds.
Hi Sreekanth,
I have planned below equity MF and debit for next 15 years. Any suggestions? Is my planning right interms of diversification of portfolio?
ICICI Pru Focused Bluechip Equity Fund – 3000
H