Mutual Funds are the best tools for long term wealth creation. We have thousands of mutual fund schemes to choose from. But, the challenge is to identify the right and top performing mutual funds that can help you in achieving your Financial Goals.
Thanks to SEBI’s new norms regarding Mutual Fund classification, this number will come down to a great extent.
Every year, I publish an article on ‘Best Mutual Fund Schemes’. This year I had to wait for the new re-categorization rules to kick-in. Now that almost all the Fund houses have started implementing these new rules, I believe that this is the right time to publish an indicative list of best equity mutual fund schemes that can be considered for your Long term goals.
I had earlier published an article on ‘Best Equity mutual Fund schemes 2017. Below is the top 15 mutual funds (category wise) list as per my old article.
- Large-cap fund category
- Birla Sunlife Frontline Equity Fund
- SBI Bluechip Fund
- ICICI Pru Focused Blue-chip Equity Fund
- Diversified or Multi-cap category
- Franklin India Prima plus
- ICICI Prudential Value Discovery Fund
- L&T Value Fund
- Mid-cap fund category
- HDFC Midcap
- Franklin India Prima Fund
- UTI Mid-cap Fund
- Small-cap Category
- Franklin India Smaller Companies Fund
- DSP Micro Cap Fund
- SBI Small & Mid-cap
- Hybrid – Equity oriented category
- HDFC Balanced
- SBI Balanced Fund
- ELSS / Tax saving category
- Franklin India Tax shield
- Axis Long Term Equity Fund
- Birla Sunlife Tax plan
Types of Equity Mutual Fund Schemes – New Categorization & Definition
Equity oriented Mutual Fund Schemes are now classified as below;
- I believe that it is prudent to invest in a Mutli-cap fund than in a fund which falls under ‘Large-Mid-cap’ category. Hence, I am not short listing any funds under ‘Large-Midcap’ category.
- Some of the popular Equity funds which are typically considered as Mutli-cap funds may now fall under ‘Value Fund’ or ‘Focused Fund’ categories. For ex : ICICI Prudential Value Discovery Fund has been classified as a Value Fund instead of Mutli-cap Fund.
- I have not considered Thematic or sectoral Funds while preparing the list of best equity mutual schemes after SEBI’s reclassification rules.
- Hybrid Funds have been classified into different categories. However, I am considering only Aggressive Hyrbid Funds (Equity Oriented Balanced Funds) here.
- In order to ensure uniformity in respect of the investment universe for equity schemes, SEBI’s new classification rules clearly define large cap, mid cap and small cap Stocks as follows:
- Large Cap : 1st – 100th company in terms of full market capitalization.
- Mid Cap : 101st – 250th company in terms of full market capitalization.
- Small Cap : 251st company onwards in terms of full market capitalization.
Best Mutual Funds 2018-19 | Top Equity Funds for SIP
Below is my indicative list of best performing equity mutual funds to invest now ;
(Except for few, most of the schemes are under-going cosmetic or drastic changes w.r.t type of scheme, investment objective, investment strategy and portfolio allocation. Hence, I believe that past performance may become irrelevant. We may have to consider them as whole new funds with new benchmark and new set of Peers for making a comparison.
It takes time to get the relevant Data (returns and risk data) to make a comparison among the Funds within the same category and also the funds with respective benchmarks and so on….So, as of now, I am just providing an indicative list of Best Equity Funds that you may consider for investment.)
Best Large Cap Mutual Fund Schemes 2018
- Birla Sunlife Frontline Equity Fund
- ICICI Prudential Bluechip Equity Fund
- SBI Bluechip Fund
- You may consider other Funds like Franklin Bluechip Fund or an Index Fund like HDFC Sensex Index Fund.
Best Multi-cap Funds 2018-19
- Franklin India Equity Fund
- Aditya Birla Sun Life Equity Fund
- Kotak Standard Multicap Fund
- You may also keep a track of some of the popular multi-cap funds like Franklin High Growth Companies Fund (will now be classified as a ‘Focused Fund’), Funds like Quantum Long Term Equity Fund & ICICI Value Discovery Fund are now classified as ‘Value Funds’ instead of Mutli-cap ones.
Top Mid-Cap Mutual Fund Schemes
- Franklin India Prima Fund
- HDFC Mid-cap Opportunities Fund
- Franklin India Smaller Companies Fund
- Under Small-cap Fund category, you may also consider funds like SBI Small cap or L&T Emerging Businesses Fund.
Best ELSS Tax Saving Mutual Fund Schemes
- Aditya Birla Sun Life Tax Relief ’96 Fund
- Axis Long Term Equity Fund
- Franklin India Taxshield Fund
Top Aggressive Hybrid Equity Funds (Equity oriented Balanced Funds)
- HDFC Hybrid Equity Fund
- Aditya Birla Sun Life Equity Hybrid ’95 Fund
- L&T Hybrid Equity Fund
My Mutual Fund Portfolio
Above is my mutual fund portfolio for the last few years. I am planning to redeem existing units of TATA Balanced fund & UTI Mid-cap Fund and re-invest in HDFC Balanced Fund & HDFC Mid-cap Opportunities Fund respectively.
My Spouse invests in Birla Tax Relief ’96 Fund for long term + Tax saving purposes.
My observations & general suggestions
- 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 investment 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.
- Are you an existing MF Investor? : It is a high time you review your mutual fund portfolio. After the latest changes, many schemes have ended up being quite different from what they were originally. Therefore, you need to keep a close eye on your MF portfolio, watch out for any changes that may occur and act accordingly. Go through the communication you receive or have received from your fund houses. If you have invested in a large-cap fund and if it is now been moved to Large-Mid-cap category then you are going to take higher risk with your investments. Under such circumstances, you may have to switch out from such fund and move to pure Large-cap Fund. In case, there are no major changes being proposed for the funds that you have invested in, kindly keep a track of their performance for next 12 months or so.
- New Investor ? : If you are new to Mutual Funds, you may consider the above list of funds.
- Have Realistic Expectations – In the past, schemes often changed their investment style based on market conditions. For example, a large-cap fund would take sizable midcap exposure as the fund manager believed that he could add extra return by doing so, and outperform his peer group. In future, when you buy a large-cap fund, you will get what you think you are buying. Schemes will have to stick to their mandate. So, have realistic expectations from your equity fund investments and do not go by past performance. For time-being, you can ditch mutual fund star ratings.
- Invest in Index Funds : If you are not comfortable investing in actively managed Funds, you can now start picking Index based Funds.
- Long Term Capital Gains are now Taxable : You may be aware that long term capital gains on Equity Funds are now taxable. So, watch out for tax implications when you do redemption, Switch or STP.
- Mutual Funds Vs ULIPs : As LTCG on Equity funds are now taxable, most of the investors might start thinking about ULIPs as an alternate to Mutual Funds. Suggest you to kindly go through this detailed article on this topic – ‘Mutual Funds Vs ULIPs – Which is better?‘
- Direct Vs Regular 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?.
Do you invest in Mutual Funds for your Long term Financial Goals? Have you reviewed your MF Portfolio post SEBI reclassification? – Kindly share your comments, Cheers!
Continue reading :
- Why your Best Mutual Fund Schemes may not remain as ‘the best’? | Categorization & Rationalization of MFs
- Budget 2018 LTCG Tax on Equity Mutual Funds & Important Implications
- Mutual Fund Investments are subject to Market Risks! – My opinion
- Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
- How to get a consolidated view of Mutual Fund Scheme change list (post SEBI reclassification)?
Kindly note that the above list of best mutual fund schemes is not an exhaustive one. Mutual funds’ returns are not guaranteed, their values/returns change frequently and past performance may not be repeated.
(Featured Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post first published on 22-May-2018)
Hi Sreekanth ,
I am newbie in MF investment and regular reader of your blog. I can invest 5000 per month for long term. Could you please guide me if the below funds are suitable for me
ICICI Prudential Bluechip Equity Fund – 1000
L&T Midcap – 2000
HDFC Small CAp – 2000
Thanks in advance
Dear Santanu,
Thank you for following my blog posts!
ICICI Bluechip fund – ok.
L&T mid-cap is ok, but given a choice I would pick Franklin Prima or HDFC Mid-cap.
You may go through my latest article @ Best Mutual Fund Equity Schemes to invest in 2019..
Thanks 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:
Currently, I am investing in Mutual Fund with 20K Per Month and goal is to maximize my Investment for Future. Also doing Lump sum investment occasionally into same schemes approx. 20K-30K in a year
1. HDFC Top 200 Fund-Regular Plan-Growth – 2000 (Large Cap)
2. HDFC Mid Cap Opportunities Fund-Regular Plan– Growth -> 3000 (Small & Mid Cap)
3. ICICI LTEF (Tax Saving)-Direct Plan-Growth -> 2000 (ELSS)
4. Birla Sun Life Frontline Equity Fund -Growth -> 3000 (Large Cap)
5. SBI Blue Chip Fund Plan-Direct Plan-Growth -> 2000 (Large Cap)
6. Franklin India Prima Fund-Direct-Growth ->3000 (Small & Mid Cap)
7. Kotak Select Focus Fund – Growth -> 2000 (Diversified)
8. Mirae Asset Emerging Bluechip-Reg(G) -> 3000 (Small and Mid Cap Fund)
9.
Please suggest if any add/deletion required in above MF Scheme for better return or do i need to switch in some other plan.
Thanks in Advance !!
Dear Amit,
Thank you for following my blog posts!
I think sometime back we discussed on your MF portfolio. Looks, like you have trimmed down the number of funds in your Portfolio a bit.
Investing in too many funds may not be really beneficially as this may lead to overlap.
Especially funds that belong to same fund category like Large cap funds.
HDFC Top 200, Birla Frontline, SBI bluechip fall under large cap category. You may retain any one of them and discontinue the other two funds.
The same way three mid-cap oriented funds may not be required.
Hi Srikanth,
What is your view regarding the large cap fund in one’s portfolio~ with a 50-50 mixture of Nifty 50 & Nifty Next 50 fund.
Regards, Kuntal.
Sorry, I meant replacing the large cap fund with the above mixture. For a long term portfolio.
Dear Kuntal,
Yes, an investor who is happy with Passive style of investing, can go ahead with the said index funds..
Hello Sreekanth,
You are doing a Great Work and I personally follow relakhs.com for all articles, blogs, Q & A, there are very helpful and informative in all aspects, nice experience are shared with example.
Could you please guide me in correct direction as I have selected trailing MF as per the goals, please do correct me if I need to make any changes in them
Currently have
Term Policy policy (HDFC Click 2 Protect Plus)
Health Insurance (Maxbupa_Family Fist Gold) and also have my office medical insurance
Critical Illness + Accidental Insurance (Religare Assure Plan)
Emergency Fund Allocation
Edelweiss Arbitrage Fund-Direct +Axis Liquid Fund Direct
Short Term (3-5 yrs) Total-3000/-
Franklin India Low Duration Fund Direct Growth 3000/-
Medium Term (Son Graduation) (15-17 yrs) 12000/-
Franklin India Smaller Companies fund (Small Cap) 4000/-
L&T mid Cap Fund (Mid Cap) 4000/-
Axis Blue Chip Fund (Large Cap) 4000/-
I will increase further in above allocation required for his post graduation+ Marriage
Long Term (Retirement Allocation (25+yrs) 12000/-
L&Emerging Business Fund (Small Cap) 4000/-
HDFC MIdcap Opp. Fund (Midcap) 4000/-
Aditya Birla SunLife Equity Fund (Multicap) 4000/-
Checked with common stocks and portfolio overlap (approximately 4-5 % )
Equity & Debt ratio – 70:30 As the time duration is more have included midcap,small cap and multicap in the portfolio
Any other suggestions or correction regarding above MF and goal wise allocation ?
Appreciate your effort and good work, Thanks in advance.
Dear Nitin,
Thank you for following my blog!
You have got all the basics of FP right, good job!
May I know if your Accidental insurance covers Permanent Disability?
You may look at Super Top up health insurance to enhance your health cover.
Related articles :
* Best Personal Accident Insurance Policies in India : Details & Comparison
* Top Up Health Insurance Plans – Super Top Up Health Insurance Plans – Details & Benefits
The selected MFs are fine. You may kindly continue with them and keep a track of their performances.
Thank you for your valuable time and appreciation.
Yes it also includes permanent disability (Religare Assure plan )
1) Just had a doubt on including Aditya Birla SunLife Equity Fund (Multicap) for Long Term (Retirement Allocation had confusion to include mutlicap or Large cap as to avoid portfolio overlap and high risk for Retirement Goal allocation . Is Multicap fine..can continue with the same ?
2) Currently have mediclaim 5L each (me,wife and son) (separate) plus 10L floating health insurance. Additionally have office medical health insurance, however would plan further for Super Top up health insurance.
Will surely follow your articles, Q & A, Blogs via http://www.relakhs.com
Thank you
Dear Nitin,
ABSL Equity fund is a good one. If you wish to include a large cap one (as you have already included a small/mid cap fund in the portfolio), you can go for an Index based fund (large cap) like UTI Nifty 50 one.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
Thank you for your replying and guiding in correct direction
namaste,
which is better??
Weekly STP or Monthly SIP in Large-Mid cap fund for 6 years of 5lakhs rupees….and WHY????
waiting for Your valuable advice..
Thank You…
Dear himanshu,
There is no right or wrong approach reg. this.
But, if it is STP, kindly watch out for tax implications.
If it is SIP, where will you invest Rs 5 lakh corpus now?? What is your preferred investment avenue?
Hi Sreekanth,
Thanks for sharing all the useful information here.
I am new investor to mutual funds. I want to do a lum-sum investment of Rs 5 lakhs in mutual funds.
Could you please suggest if i should invest in 1 go in selected funds or should I invest in liquid funds and then do a STP to the selected fund? What should be time-period over which I should do this?
Also please suggest in what ratio should i invest in Large : Multi: Small cap?
Thanks,
Dipti
Dear Dipti,
May I know your Investment objective(s) and time-horizon??
Hi Sreekanth,
Thanks for your reply. Investment objective are son’s wedding (5 + years) and retirement planning (10 years)
Dear Dipti ji,
For Son’s wedding (5 years), advisable to avoid investing in Multi – small or mid cap funds. You may opt for Hybrid Equity (Balanced fund) or Balanced Advantage funds.
Ex : HDFC Hybrid Equity or ICICI Pru Bal Adv Fund.
For your Retirement Goal – You may opt for a Large cap + Hybrid Equity Fund.
Sorry, forgot to mention that after re categorization, portfolio overlap between FIEF and MAEBCF is 31%. In case, I continue with FIEF and opt for a pure mid cap fund (HDFC mid cap opp) instead of MAEBCF, the portfolio overlap will be 9%. However, the risk profile will change…
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 from 2016. 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:
Emergency fund: 4.0 lakh (bank savings (2 lakh)+fixed deposit (2.0 lakh)+arbitrage fund(2.0 lakh)
For any ‘intermediate(5-8 yr) Expense’: HDFC hybrid equity-D-G (3000/m)
Daughter’s education and marriage (12-15 yr):
Investment planning: SSA: 3000/m; Franklin India Equity fund-D-G (3000/m)
For my retirement (15+ yr): EPF (7000/m, deduction at the source), PPF (3000/m), FIEF-D-G (3000/m), Mirae asset emerging bluechip fund (6000/m), Franklin India Smaller co (9000/m).
Equity:debt ratio – 70:30 (since 15+ yr time horizon)
Large:Mid-cap:small cap – 50:30:20
Since MAEBCF became large-mid cap category from mid cap after re categorization, my portfolio consists of essentially two multi-cap (FIEF (~ 75% large cap) and MAEBCF (~50% large cap+ ~40% mid cap)
Do you think
a) I should continue with my past portfolio or
b) Change the portfolio from two multi-cap (FIEF and MAEBCF)+one small cap (FISco) to conventional one large cap (sbi blue chip/BSLFEF) + one Mid cap (HDFC Mid cap opp)+one small cap (FISco) with Large:mid:small – 50:30:20?
Any other suggestion regarding my portfolio?
Thanks in advance
Dear Basak,
The above mentioned three funds are decent picks.
However, considering the changes wrt re-categorization, it might be prudent to invest in a pure-play mid-cap stock than to invest in Large+Mid-cap fund, for your retirement goal which is >10+ years from now.
In case, you do not want to take higher risk then can stick to your existing portfolio.
You may also consider buying a Super-Top up health insurance plan.
Related articles :
* Top Up Health Insurance Plans – Super Top Up Health Insurance Plans – Details & Benefits
* List of Articles on the key Components of Personal Financial Planning
Hi Sreekanth Reddy,
I am investing 3000/- monthly in ICICI Prudential Long Term Equity Fund (Tax Saving)- Growth. At present 3 years completed, shall I continue in the same fund or shall I stop this and invest in other tax saving funds like Franklin or mirae asset tax saving funds. Because, I felt those funds are performing better than ICICI.
My goal is long term (5-7 years)
please suggest
Thanks in advance
Dear Mahesh,
ICICI Pru LTE is more of a low risk and decent/average reward kind of option. If your investment horizon is long-term, you may continue with your investments.
You kindly go through below good articles ;
Article – 1
Article – 2
Thank you Sreekanth… I will continue in the same fund
Hello Sreekanth,
Good Afternoon !
I have ongoing sip investments in MF’s (long term 10 yrs+).Want to invest a lumpsum of 50 k across these MF’s .Should i look at a specific category or should i put put in 10 k each in Multicap/Large/Small/Value/Focussed.
Or the other option iwas looking at ,is to top up 25 k each in the existing lumpsum investments of ultra short term funds i.e .SBI magnum ultra SDF & Franklin India Ultra short bond fund.
Your valued suggestion on the same would really help in taking a decision.
Best Regards,
Roy
Dear Roy,
Debt or Equity ? – You can finalize the selection based on your Asset allocation ratio (if you have been following it).
However, considering your time horizon and current market conditions, you may get enough opportunities (dips) in the next few quarters. so, if you can afford to take risk, suggest you to make additional investments in Multicap and/or Mid-cap funds.
Hi Srikanth,
Very nice blog including the new categorization of funds and great to see your own portfolio. I’m a new investor and shortlisted on the below funds (including percentage allocation of my basket) based on your blog and my time horizon is 10 years. Could please suggest me your recommendations. Thanks.
1. SBI Blue Chip Fund Growth (large cap) – 40%
2. Franklin India Equity Fund Growth (multi cap) – 30%
3. Aditya Birla Sun Life Equity Hybrid 95 Fund Growth (hybrid) – 30%
Dear Kalyan,
You may kindly go ahead with your shortlisted schemes. All the very best!
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
Thanks for the excellent article. I would like to commend you for giving a definite choice of mutual funds for this year, comparing with your choices last year in the same article and also stating where you have invested! That’s really brave. Keep it up.
One issue I thought of was – what should a reader do if somebody has started an SIP in a fund last year as per your recommendation and this year it is not in your list.
Dear Biju,
Thank you for your appreciation!
If I replace a fund, I generally suggest the course of action as well.
For example (taken from my article of ‘Best MFs 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.
Let’s note that no fund can remain in the top forever, the list keeps changing. So, it is prudent to pick the consistent performers. If such funds are not performing well for say last 1-2 years, we can give them some more time (if it meets our requirements) and then take decision.
Related articles:
* Mutual Fund Portfolio Overlap Comparison Tools
* What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
That was useful again. You have a tough job recommending just 3 funds in any one category. So it is very likely that you may have to move some funds out in the subsequent years. If at some point if a fund previously suggested by does really badly, then it would be great if you could put it in a “negative list” so to speak so that readers can not only stop SIPs but also sell and leave the fund. Don’t know
if this makes sense but I felt like sharing my thoughts.
Dear Biju,
Appreciate your views and will surely HIGHLIGHT the dropped list of schemes and required course of action in my future articles.
Thank you and keep visiting ReLakhs.com !
Hi Sreekanth
I am 71 years old.I have invested all my investments in Bank deposits so that I can meet out my monthly expenses which will be around Rs.35000/ per month.Apart from that I have invested in the following Mutual Funds in lump sum.(current value Rs.15 lakhs).
1.Franklin India Bluechip Fund-Growth
2.Axis Long Term Equity Fund-Growth
3.DSP Blackrock Tax Saver Fund-Growth
4.IDFC Tax Advantage Fund-Growth
5.ABSL Tax Relief Fund-Growth
6.Franklin India Tax Shield-Growth
Now I want to invest Rs.1 lakh in some mutual funds for a time horizon of 10 years(for my grand children).
Please suggest some good investments.
Thanking You,
K Jeyabarathi
Dear jeyabarathi ji,
Existing MF portfolio : May I know your investment objective and time-frame? Any specific strategy or reason for picking multiple ELSS only funds??
You may pick one diversified equity fund, one Hybrid Equity fund and one mid-cap fund for your Grand children.
Ex : Franklin Primaplus, HDFC Hybrid Equity, Franklin Prima etc.,
Related article : Mutual Fund Portfolio Overlap Comparison Tools
Hello Sreekanth,
The below mentioned funds have ongoing SIP’s(last 2 yrs) i.e. towards retirement with a horizon of 20 yrs –
ICICI Prudential Bluechip Equity Fund -Large Cap Fund-2k
ICICI Prudential Value Discovery Fund -Value Fund-2k
Franklin India Taxshield Fund -ELSS fund-1k
DSP Small Cap Fund-Small Cap Fund-7k
Wanted to add a multicap fund (3 k sip) to the above portfolio .Would appreciate your advice on the same.
Also want to start with a sip of 2 k towards a emergency fund .Would it be advisable to start with a short term debt fund ?
Thanks & Regards,
Roy
Dear Roy,
Given the above portfolio and your investment horizon, is n’t prudent to pick a mid-cap oriented fund (if at all you would like to add one more fund)?
We can consider ELSS fund as a typical multi-cap fund.
Kindly read : What is an Emergency Fund? | Why, Where & How much to save?
Thank you Sreekanth.
As far as retirement plan goes idea was to add a multicap cap fund to have a diversified portfolio,but makes sense as to what you are saying , if i have understood you right .With a 7 k DSP small cap and the value/ elss catg. funds having a exposure of 15 -20 % to small/midcap funds makes the portflio aggressive.As of now all sips put together sum up to 12k which i want to take to 15 k with immediate effect and 30 k over the next 2-3 yrs,so should i allocate the 3 k to franklin taxshield itself or should i look at another elss fund.
As regards the emergency fund went through the article ,nice read and really liked the idea of having 2 separate emergency funds .As of now do have any lump sum that i can invest and hence was looking at starting a 2k sip to begin with but given the current situation on debt/bond markets ….a bit confused .Could you please advise on this one …..
Thanks & regards,
Roy
please read below as ‘do not have any lumpsum ‘
Dear Roy,
Do note that Porfolios of Funds keep changing across different time-periods.
If one of your objectives is to save taxes, can consider investing in Franklin Taxshield. But, note that though this fund is a decent consistent performer, its allocation to Large cap stocks is on the higher side and you already have one large-cap fund.
Kindly do have property asset allocation to Debt products as well for your long term goal (20 years).
For building an Emergency fund, kindly do not be too worried about returns, as the purpose of this is to have high liquidity than accumulation..
Hi Sreekanth,
I have below funds in my portfolio (As a SIP every month), Can you give me a view whether these are good to continue after SEBI changes. Please suggest with details for my better portfolio. All the funds are direct growth plans.
My Horizon is 10 years. My current age is 31 years.
Large Cap Funds:
1. BIRLA SUN LIFE FRONTLINE EQUITY FUND – 1500 Rs.
2. SBI BLUE CHIP FUND – 5000 Rs
Multi Cap Fund:
1. KOTAK STANDARD MULTICAP FUND – 5000 Rs.
Large & Mid Cap Funds:
1. MIRAE ASSET EMERGING BLUECHIP FUND – 2000 Rs
2. PRINCIPAL EMERGING BLUECHIP FUND – – 2000 Rs.
Small Cap Funds:
1. FRANKLIN INDIA SMALLER COMPANIES FUND – 4000 Rs.
2. DSP BLACKROCK SMALL CAP FUND – 1000 Rs.
Thematic-Consumption Fund:
1. SUNDARAM RURAL AND CONSUMPTION FUND – 2000 Rs.
Value Fund:
1. ICICI PRUDENTIAL VALUE DISCOVERY FUND – 1500 Rs.
Please advise.
Thank you in advance.
Dear Nagesh,
Individually, the above listed funds are decent ones.
You have two Large cap funds, which may have high portfolio overlap. You may be better off retaining either of the two funds.
Like-wise, you may kindly check the overlap %s among the funds.
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Hi Sreekanth, First of all many congratulations, on running this excellent forum for folks like us, who want to make investment in mutual funds, however don’t have access to expert advice. Looking for your advice from you on my investment. I’m 34 earning 1.2 lakhs/month, looking for high returns and ready to take moderately high risk.I’m looking for good returns in the longer run and ready to be stayed put for the next 20 years. I’ve been investing in mutual funds for the past 2 yrs(10k/month) all in ELSS specially for tax planning. Below is the break up
ADITYA BIRLA SUN LIFE TAX RELIEF 96 FUND- GROWTH – 2.5K
AXIS LONG TERM EQUITY FUND – GROWTH PLAN – 5K
Franklin India TAXSHIELD GROWTH – 2.5K
Now, I am looking to invest (25K/Month) as SIP for my retirement and child education/marriage planning. Can you please suggest me the good funds and the percentage asset allocation to each of these funds for 25K/Month SIP, keeping in mind my current ELSS SIP. I have a 15-20 years of time frame to be invested. TIA !!
Dear Ajit,
Thank you for your appreciation!
Kindly refer to our Q&As in Forum section..
Hello Sir,
I invest 2,000 every month in the below mutual funds (total 6,000/ month). These funds were bought from an advisor in 2016.
I was to raise capital in coming 10 years and the goal is rupees 20 lakh for home renovation. I have my family home and my take home salary is 30,000. My age is 25 years old.
Please advice me on the below portfolio. I do not have any other investments. I have 50 lakh term plan that was purchased this year.
1. Parag parikh long term equity fund
2. Kotak Standard Multicap Fund
3. SBI Blue chip fund
Dear Sameer,
You may kindly continue with your investment plan. The above list of funds are good ones.
Are you investing for your other financial goals? Ex : Retirement goal.
Related articles:
* List of Articles on the key Components of Personal Financial Planning
* Retirement Planning in 3 Easy steps
Hi Sreekanth
I am 46 year old having 10 yr old child in 5th std. I am working. my objective is to retire by 50 and raise money
for retirement and child education.
after retirement, i should get 50000 per month.
me and my husband has 50k term insurance seperate. 20k for Tata aig policy.
I am investing 50k in ppf per year,
Total FD of 12lakh. few invested in NCD of shrriram
and hdfc.
query
1) I have 10k in my hand to invest currently.
2) Is it wise to take ULIP now.
3)I want balanced portfolio with high returns
and limited funds.
4)also want to check which main parameter to check in valuereasech and money to know how portfolio is progressing.
what is total annualized return (TAR). if i have invested
27,999.97 from 5/7/17 and market value is 28457
and TAr is shown 2.68%
not understanding how 2.68 is calculated.
5) should i increase sip.
6. should i remove some funds which r not good
I am investing 13000 PM in SIP
1. 04-02-11->
Aditya Birla SL Frontline Equity-G->1000
2.
5/7/17->Aditya Birla SL Regular Savings-G->2000
3.
10-10-16->
DSP Small Cap Reg-G->2000
4.
10-10-16->
ICICI Pru Value Discovery-G->2000
5.
4/7/17->
Kotak Standard Multicap Reg-G->2000
6.4/7/17->
Mirae Asset Emerging Bluechip Reg-G->2000
7.26/9/16
SBI Bluechip-G->2000
few sips I have stopped and their status as below
sip start date4/2/11 and stopped 3 years before
total 2 lkah
Franklin India Bluechip-G
HDFC Equity-G
HDFC Hybrid Debt-G
ICICI Pru Multi Asset-G
IDFC Multi Cap Reg-G
L&T Equity-G
Reliance Equity Hybrid-G
Kindly guide
Bharati Tawde
Dear bharati,
1 – Is Rs 50k Sum assured or premium amount?
2 – ULIPs vs MFs?
Kindly go through my article – Mutual Funds Vs ULIPs – Which is better? | Post Budget (2018) LTCG Tax proposal on Equity Mutual Funds & Shares
3 – Returns calculation :
* Five important formulas to calculate returns on investments
* Calculate Rate of Return on Investments using XIRR function
4 – Investing in too many funds may not be really beneficial. The funds with active SIPs are decent choices.
Kindly read :
* Mutual Fund Portfolio Overlap Comparison Tools
* Retirement Planning in 3 Easy steps
* Calculate how much you need to invest for your Kid’s Education
* List of Articles on the key Components of Personal Financial Planning
Hi Srikanth can you please review below portfolio:
Axis long term equity elss-10000
Canara Rebecca blue chip direct growth- 5k
Lnt emerging business small cap direct growth-5k
SBI blue chip direct growth-5k
Lnt midcap -5k
If anyone should be eliminated then please suggest new fund. My goal to create wealth after 10 yrs
Typo error it’s Canara robeco emerging equity
Dear Om Prakash..You may kindly continue with your investments..
Hi Sreekanth,
I have been reading your blogs and I feel they are too good and simple to understand:-)
I am 41 yrs of age with 2 kids (11 and 4 yrs) and have 1 lakh per month to invest from next month. Covered Real Estate investment and want to focus on MFs.
I have below monthly SIP plans for investment.
Large cap/value funds: 13k – (SBI Bluechip, Birla Frontline equity, L&T value and Mirae Asset India Equity)
Mid cap: 4K – (Mirae Asset Emerging Bluechip, Franklin India Prima)
Small Cap: 2K – SBI Small cap and HDFC Small cap
Equity Hybrids: 10K – HDFC Hybrid and Mirae Asset Hybrid.
To add to the above, I am planning to invest in Conservative Debt Hybrids funds for 20K (preferably 2 funds) and another 50K in Debt funds (mix of liquid and long term debt funds).
Idea is to build good corpus for retirement and to have enough cash for children’s education in 7-10 yrs.
Could you please let me know if my above allocation is good and any suggestions for Debt Hybrid and Debt funds?
Thanks.
Dear MMohan,
Thank you for following my blog posts!
Have you already invested in the above said Equity schemes or would like to short few from the above list??
Any specific strategy/reason for planning to have an allocation of 30:70 (in Equity : Debt)?
Kindly go through below articles :
* Calculate how much you need to invest for your Kid’s Education
* Retirement Planning in 3 Easy steps
* List of Articles on the key Components of Personal Financial Planning
Sreekanth,
Many Thanks for responding so quickly.
I am already investing around 10K per month in Large Caps and Value funds for last 2 yrs thru Scripbox (Now planning to move to direct funds). Now adding Birla Frontline fund to the portfolio.
Along with that I thought of adding midcaps, smallcaps and Hybrid funds for longer horizon.
I will be starting SIP for these funds in next 1-2 weeks.
Any suggestion on these funds is welcome. Open for additions/deletions to this list.
I added atleast 2 funds in each sector to have a balance.
The reason for keeping 30:70 (equity:debt) ratio is the possible market volatility due to upcoming elections. I am not sure if it is safe to invest large amounts.
I am planning to move towards a 50:50 ratio post-elections.
Please share your thoughts on this.
I went thru the articles you pointed on investment planning.
I have decent PF/PPF holdings for retirement, but need more equity support I feel. Emergency fund and insurance are in place.
Also planning to scale my investments in equity for Kid’s education.
As per your calculators, I would need 50k per month to cover kid’s edu and retirement.
Any suggestions for that is welcome.
Dear Mohan,
It is highly impossible to TIME the markets based on single event. As you are investing for long-term financial goals and that too through SIPs, you may go for ideal Equity:Debt allocation as per your risk profile than concentrating too much on Market Events. Also, you have decent Debt Allocation already in place (PF/PPF).
You may avoid investing in multiple Funds from same category. For ex: Three funds from large cap space can be avoided, as this my lead to high overlap.
However, the above listed funds are decent choices. But, suggest you to limit the number of funds in your portfolio.
Kindly read : Mutual Fund Portfolio Overlap Comparison Tools
Great. Thanks for your suggestions.
One more query: Do we really need to invest in these Value funds?
If we have a portfolio where Large, Mid, Small cap, Debt are all covered, wondering if adding funds to Value funds make any sense.
Dear MMohan,
You may consider a Mutlicap/Diversified fund instead of a Value fund, that could be sufficient..
I am watching on youu tube and reading a lot of things about – Parag parikh long term equity fund
Can you please let me know if this fund would be suitable for 5K SIP for 5 to 7 years time horizon.
How is this fund house? Are there any cons of Parag parikh long term equity fund scheme?
I invest in SBI blue chip direct and AB sunlife front-line equity direct funds. The current SIP in both funds is 10K each.
Please help me on the question.
Dear Narayana,
You may go ahead and invest in PPLTE Fund. Kindly note that the fund may have a small exposure to International Equities as well.
“If you don’t mind the high expense ratio, want the international equity exposure, value risk management, can take a long-term view and not worry about short-term downs (or ups), prefer steady performance over spectacular, this fund is suitable for you.” – (Source : Freefincal.com)
Also, you have two Large cap funds, which may have high portfolio overlap. You may be better off retaining either of the two funds.
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Hi, I want to invest in Kotak Standard Multicap Fund – Direct Plan (G)
This SIP will be for 10,000 per month. I already invest in SBI Blue chip fund from last 5 years with SIP of 10,000 per month. I am 27 years old now and want to buy house in 10 yrs.
Please guide me if this Kotak fund is fine or can you suggest a Multi Cap fund for a goal of 10 years. Thank you!
Dear Krishna,
You may kindly go ahead with your investment plan.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
Sir….generally every financial expert says that we should have long term time horizon for mutual funds. The investments should be tie up with a long term goal. I agree on that.
I want to ask that every year there are new schemes launche in the market. The fund that was Number 1 a few years back has changed to may be number 4 or 5 after six, seven years.
So how should we as a retail investor evaluate the need to change the mutual funds?
If we regularly review the funds performance and they are giving standard MF returns between 12% to 16% then should we continue in the existing funds? Or should we switch to new schemes that are giving similar returns.
Need to understand this login from someone expert like you. thanks.
Dear Chris,
No fund can be in the Top rank year on year.
We need to look for consistency. I am happy if my invested fund delivers above avg returns year on year and decent downside protection compared to its peers when markets fall.
Hi Srikanth,
Holding 8676 units of UTI mid cap-direct and 1126 units of Tata Hybrid-direct. Investment horizon was long term. How do I redeem and reinvest? Awaiting your suggestions.
Dear JAYAN,
You can just SELL the units and purchase afresh units in the scheme of your choice.
Kindly watch out for the tax implications if any..
Kindly read : Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
Dear Sir,
I want to invest in ultra short debit fund. My risk limit is very low.
After a lot of research I have short listed “Franklin India Ultra-Short Bond Fund – Super Institutional Plan – Direct Plan (G)”
I want to start SIP for 5,000 every month. My goal is for 5 to 7 years and can go beyond that.
My age is 33 now and goal is to generate corpus in next few years.
I want to stay away from any large cap equity fund. Please advice on this fund. Thank you so so much.
Dear karan,
You may go ahead with your investment plan.
But, in general, any specific strategy/reason for picking a short term debt fund for 5+ years investment time-frame and not to touch Large equity funds?
Nice to hear from you Sir. I am trying to stay away from large cap funds as my risk taking abilities are low.
However, my wife is investing in Aditya Birla SunLife Frontline equity and SBI Blue chip funds from more than 7 years. She bought them before the marriage.
As in the family the large cap funds are there and also do not want to risk what I am investing therefore, chosen this fund.
Please let me know if you have any other recommendation.
Appreciate your answer.
Dear karan,
You may go ahead with your investment plan.
Kindly pick investment products based on your time-frame, risk profile and required corpus/goal.
Related articles :
* Investment Planning – How to create a solid investment plan?
* Retirement Planning in 3 Easy steps
Hi, I want to buy “ICICI Pru Heart / Cancer Protect” to protect me and my spouse. Can you please help me in terms of if I can go ahead. This is specifically for cancer cover.
I already have term and critical illness insurance and this is just another step to protect my family.
Appreciate if you can help or suggest any other cancer plan. Thanks.
Dear Rajeev,
Do you have stand-alone Mediclaim (regular) cover for self/family?
Yes Sir, regular mediclaim from company + one family floater + critical illness + term insurance + accidental insurance.
I also checked SBI life cancer insurance. Please share your views on ICICI cancer + heart policy and SBI cancer policy.
Thank you very much sir.
Dear rajeev,
You may prefer Super Top Up insurance plan to Specific CI plan.
Kindly read :
* Top Up Health Insurance Plans – Super Top Up Health Insurance Plans – Details & Benefits
* HDFC Ergo my:health Medisure Super Top Up Health Insurance Plan : Features, Benefits & Review
Hello Sreekanth,
Have redeemed units in Tata balanced (hybrid) fund amounting to 3 lacs.
Want to invest the same between Franklin India ultra short bond fund & SBI Magnum ultra short duration fund, 1.5 lacs each.
Would need these funds between dec’19 – mar’20.
Please advise whether should i invest 3 lacs as lumpsum or should i stagger this over the next few months.
Thanks and Regards,
Roy
Dear Roy,
You may go ahead and invest lump sum amounts in the said funds.
Good evening Sreekanth.Thank you .
Hi Shreekanth ,
First of all your blog is very simple to understand the mutual fund as I am newbie . I am 30 years old and want to invest in mutual fund for long term around 15 years for wealth creation. As per your blog suggestion I have decided the below funds, consider moderate risk
1.SBI BLUECHIP FUND – 3000 / PM
2.HDFC Mid Cap Opportunity – 3000 /PM
Need you guidance before investing .
Dear Santanu,
Kindly go ahead with your investment plan.
If possible, can add one diversified Equity fund as well to your portfolio.
Suggested articles :
* How to select the right and best Mutual Fund Scheme based on the Measures of Volatility?
* Mutual Fund Portfolio Overlap Comparison Tools
Thank you so much
Hi Shreekanth,
I have detailed my current investments and SIPs on which I request your opinion. Whether should I exit from any fund, remain invested or should I switch to any other scheme? My goal in long term 8-10 years. Please suggest. Thanks in advance
Ongoing-SIPs: Rs 19000
Aditya Birla SL Infrastructure(D) – Rs 3000
IDFC Focused Equity Fund Reg(D) – Rs 3000
Kotak Infra & Eco Reform Fund (D) – Rs 3000
Kotak Infra & Eco Reform Fund (G) – Rs 3000
Reliance Large Cap Fund(D) – 4000
UTI Transportation & Logistics Fund Red(D) – 3000
Monthly SIP of Rs 12000 from 2012-2014, no redemption, investment held
Aditya Birla SL Equity Fund
Aditya Birla SL Frontline Equity
Aditya Birla SL Regular Savings Fund (Debt Fund)
HDFC Mid Cap Opportunity
ICICI Prudential Bluechip Fund
ICICI Prudential Regular Savings Fund (Debt Fund)
ICICI Prudential Value Discovery
Kotak Standard Multicap Fund
Lumpsum
Tata Equity P/E Fund(div trig opt A-5%)
UTI Regular Savings Fund Reg(D)
Dear Pranati,
Investing in too many funds may not be really beneficially as this may lead to overlap.
Suggest you to check these Funds’ portfolio overlap and then can trim down your portfolio a bit.
If your investment objective is to accumulate wealth then you may avoid opting Dividend plans.
You have many Sector/Thematic based funds, which can be very risky, hope you are aware of the risk-return trade off on these funds.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* Why your Best Mutual Fund Schemes may not remain as ‘the best’? | Categorization & Rationalization of MFs
Thank you Shreekanth. The overlap tools provided would be of great help. I would kindly request you to review the under mentioned portfolio. I have selected these schemes by comparing risk statistics and returns data obtained from valueresearchonline.com. I have done this for my father whose objective is to invest 5-7 years horizon and good dividend earning schemes. However I was not able to obtain past history of dividend payments by funds. Can you suggest some portals where I can get that information?
Large Cap – Axis Bluechip Fund
Multi Cap – Kotak Standard Multicap Fund
Mid Cap – HDFC Mid Cap Opportunities Fund
Small Cap – L&T Emerging Businesses Fund or HDFC Small Cap Fund (pl suggest)
Value – Invesco India Contra Fund
Debt – ICICI Prudential Advisor Series-Debt Management Fund
Hybrid – HDFC Hybrid Equity Fund
Dear Pranati,
May I know if your father is highly dependent on the dividend income payouts of these schemes?
You can visit portals like Moneycontrol -> respective Scheme Dividend plan -> Visit link View Dividend History (For example, visit this link..)
Thank you Sreekanth for responding. My father is not highly dependent on dividend. However he does expect a return (in nature of payout) on investment at least on an annually basis. This return should beat the bank FD rates.
Also, should you think this portfolio is apt, I plant to liquidate all my current holdings and invest in Growth options of the schemes shortlisted for my father. Let me know your thoughts. Thanks once again
Dear Pranati,
With the introduction of tax on Dividend payouts, it is not a good strategy to opt for Dividend plans.
He may consider SWP (Systematic Withdrawal plan). But be aware of the tax implications on withdrawals.
I am still confused with the investment objective here..
Is wealth accumulation is your father’s objective? Can he afford to take risk on these investments? What is the time-frame?
noted on the tax implications. will look up for the information on the same.
I would like your opinion on 2 queries, one for my father and one myself. I have selected the following based on risk and return analysis of these schemes
Large Cap – Axis Bluechip Fund
Multi Cap – Kotak Standard Multicap Fund
Mid Cap – HDFC Mid Cap Opportunities Fund
Small Cap – L&T Emerging Businesses Fund or HDFC Small Cap Fund (pl suggest)
Value – Invesco India Contra Fund
Debt – ICICI Prudential Advisor Series-Debt Management Fund
Hybrid – HDFC Hybrid Equity Fund
Is the above portfolio fit for,
1) My father – investment objective is to get better and regular return that bank deposit rates, investment horizon is 5-7 years
2) Myself, investment objective is wealth creation, growth options, investment horizon is 8-10 years.
Dear Pranati,
Your father may consider these funds from the above list : HDFC Hyrbid Fund and an MIP Fund like ICICI Prudential Regular Savings Fun.
You may go ahead with Axis, Kotak, HDFC Mid-cap & Hybrid Funds.
Suggested Articles :
* Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
* What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
Hi Sreekanth,
My father is 58 and retired last month from government service. He would like to invest his PF amount of Rs.10 Lac in Mutual Fund. Kindly suggest some funds.
Note : He is getting regular pension for each month and has individual health insurance.
Dear Ram,
May I know his investment objective and time-frame?
Can he afford to take risk on this investment corpus? Is he ready to accept volatility??
Hi Sreekanth,
Objective is to use it for any immediate/emergency needs in future. So he can withdraw anytime. He is not ready to take risk.
Dear Ram,
Mutual funds (Debt/Equity Funds) are subject to market risks. If he is not ready to take risk then MF investments may not be the option for him.
But, suggest you to check if the retirement corpus is sufficient for him to lead comfortable retirement life.
Kindly go through below articles and revert to me with your analysis or queries (if any);
* Lump sum Investment options for Retirees/Senior Citizens | Where to invest my Retiral benefits to get Regular Income?
* Retirement Planning in 3 Easy steps
Hi sreekanth sir
I am planning to invest Rs35000/- in mutual funds with time frame of 13-15 years as earnings will be used for education expenses of my daughter. Please suggest funds for investment as i am new towards mutual funds.
Dear Jitesh,
Is this one time investment for 15 years?
If so, you may pick one Diversified Equity Fund like Birla Equity Fund / Franklin Prima plus.
Thankyou sir.
Hi Shreekanth,
Its 3+ years, I have been following your blogs and it really helped me in financial awareness and planning. Appreciate your efforts.
My current SIPs(monthly) includes as:
1. AXIS LONG TERM EQUITY FUND – GROWTH PLAN – Rs. 5000
2. HDFC MID-CAP OPPORTUNITIES FUND – REGULAR PLAN – GROWTH – Rs. 10000
3. SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH – 10000
4. RELIANCE SMALL CAP FUND – GROWTH PLAN – GROWTH OPTION – 10000
All above investment is linked to long term goals(12+ years) so, do you think this small/mid/large cap allocation is OK in current market scenarios? Any changes in fund selection
Also i am investing in Axis long term equity fund since mid 2014 and its sip is expiring on 15 July 2018, should I renew it or switch to another elss fund as I need one elss fund for tax saving purpose.
Thank you so much.
Anil
Dear Anil,
Thank you for following my being my loyal blog reader!
The listed portfolio is fine. You may continue with Axis LTE .
Hello Sreekanth,
Good afternoon!
Had made a lumpsum investment as mentioned below, which as per set time frame was supposed to redeem the same in December ’19 :
Tata hybrid equity fund-1 lac
ABSL MIP II wealth 25 plan-50 k
Plan to exit Tata ( re invest the same keeping in mind dec’ 19 time frame) and continue with ABSL
Please suggest.
Thank you,
Roy
Dear Roy,
Where do you want to re-invest the Tata fund proceeds?
Should I put it in a Debt fund (ABSL MIP 25),liquid fund or bank fd…..seek your advice on the same.
Regards,
Roy
Dear Roy,
If you can offered to take some risk, can consider Ultra Short term Debt Fund, else, Bank FD can be ok, for 1 to 1.5 year time-frame.
Thank you Sreekanth. Any recommendations on ultra short term debt fund.
Have a great weekend.
Roy
Dear Roy,
You may have a look at SBI Magnum Ultra Short Duration Fund and Franklin India Ultra Short Bond Fund
Thank you Sreekanth. Have a blessed day.
Roy
Is this good time to increase SIP amounts in small-cap and mid-cap funds (as NAV is down and thus opportunity to buy extra units)? I am confused as reading a few online articles gives me an impression that small/mid cap stocks and funds are still (highly) overvalued? Your guidance will help. Thanks.
Dear Aman ..May I know your investment objective(s) and time-frame??
Have you invested in any mid/small cap based funds?
Hi Srikanth…from past 2.3 years I am doing monthly SIP of 3000/- in ICICI Pru Value Discovery fund. Now it is moved under “value fund” category, should I continue in this fund or switch to another multi-cap fund.
Dear Sridhar,
May I know your investment time-frame and have you invested in other MF schemes?
Hi SRI…I have around 13k per month investment in equity thru SIP. I now want to invest LS amount in debt funds for 5 years. Can you recommend a few….thanks
Hi,
You may consider an MIP fund and/or Short Term Debt fund.
Ex : Birla MIP Wealth 25 fund
Franklin Low Duration Fund etc.,
Dear Sir,
I am working as a professor with monthly salary of 30,000. I am investing 5,000 in RD. I now want to add 5,000 in Mutual funds.
I am researching that to invest in mid cap fund. Can you please suggest if I should buy “Aditya Birla Sun Life Pure Value Fund (G)”.
I am single don’t have any other liabilities. My goal is to buy a car and need 5 lakh in next 4 years.
Thanks for the help.
Dear Pooja,
If you can afford to take risk, for an investment time-frame of around 4 to 5years, you may consider an Equity hybrid fund instead of a mid-cap fund.
Ex : HDFC Hybrid Equity Fund.
Thank you Sir. I was checking your website and found something called – Liquid or Ultra Short Term Debt Funds.
What are those? and will that go with my 4-5 years goal needs? Please let me know if you know any good funds. Thank you and bless you.
Dear Pooja,
Kindly go through below articles to understand types of debt funds.
* Debt Funds : Types, Benefits & Risk Vs Return
* Mutual Fund Schemes Categorization and Rationalization – Types of MF Schemes | SEBI’s Latest Guidelines
Hi Sreekanth,
Since the Midcap & smallcap funds NAV is down around 10-12% , is it good time to invest lumpsup amount ?
Dear Mani,
Very difficult to TIME the market.
If your investment horizon is long-term, you may kindly go ahead!
Hi Sreekarnth,
My wife & me both are IT professionals & investing 50-60K per month with common portfolio since March-2017.
Our investment horizon not so fixed but withdrawal requirement in multiple parts like
1) Our baby is 6 months old. So when will be 4 years old. then we will have to pay his school fees every year like 1.5L per year.
2) We are from Mumbai & staying in Rent house. May be in 7-8 years down the line we’ll be planning for our flat.
3) From 2020, We’ll be require 1-1.5L per year for vacations.
Note: We’r having some local investment for emergency funds. like upto 2-3L So ready to take risk also.
Please find below my portfolio.
Aditya Birla Sun Life Tax Relief ’96 – Direct Plan (G)
Axis Long Term Equity Fund – Direct Plan (G)
DSP BlackRock Mid Cap Fund – Direct Plan (G)
DSP BlackRock Tax Saver Fund – Direct Plan (G)
HDFC Balanced Fund – Direct Plan (G)
L&T Emerging Businesses Fund – Direct Plan (G)
L&T Tax Advantage Fund – Direct Plan (G)
Mirae Asset Emerging Bluechip Fund – Direct Plan (G)
Reliance Tax Saver (ELSS) Fund – Direct Plan (G)
SBI Blue Chip Direct-G
SBI Small Cap Direct-G
I just realized that funds are overlapping. So can you please help with the same and also suggest if any other funds i should consider for meetup my future plans?
thanks
Dear Nikhil,
Yes, investing in too many funds may not be really beneficial.
The listed funds might be decent ones but as said by you there is no point in investing in multiple funds if their portfolios’ overlap.
Suggest you to invest in one or two ELSS funds, that should be fine.
You may invest in balanced fund itself for your home purchase goal for next 4 to 5 years or so.
For recurring expenses, you may consider options like Bank RDs/ Ultra short term Debt funds.
By the by, may I know if you have adequate life insurance and health insurance covers?
Related articles :
* Calculate how much you need to invest for your Kid’s Education
* Retirement Planning in 3 Easy steps
* List of Articles on the key Components of Personal Financial Planning
Hi Sreekanth,
Thanks for the valuable article.
I was invested Franklin India Feeder Franklin US Opportunities Fund for 1 lakh lumpsum short term(3 months) and Tata Digital India Fund lumpsum 40k for 3 months.
Please suggest me, Is that good to invest Overseas funds? Let me know which funds suitable for short term with attractive interest(Expecting 10%).
Dear Pavan,
Is your investment time-frame 3 months? Do you need the invested sum after 3 months (short term)??
It will be 3-6 months not more than that. Yes.
Dear Pavan,
If your investment time-frame is very short term, you may avoid investing in Mutual funds (especially equity related funds).
Thanks Pavan your suggestions.
Can you please share your opinion on Overseas funds? Assume timeframe is 1-2 years
Hello Sreekanth,
The Fund Aditya birla sun life frontline equity has been underperforming it’s benchmark, Nifty 50 TRI for d last 1 and half yr. Moreover, don’t u feel investing in a index find is better than investing in a large cap fund as they r struggling 2 generate alpha. Also index fund has lower exp ratio…
Dear Sonit,
Agree with on ‘generating alpha’, it is surely going to be a challenge for the Fund managers.
Hence, I have also suggested about index funds in the above article, under ‘My observations & general suggestions’ section.
Dear sreekanth,
I m investing in below MF for last 3yrs by SIP
1) Birla Top100fund DG-Rs3000
2) Franklin india high growth DG -Rs5000
3) Franklin India Smaller cos DG-Rs5000
4) DSP BR micro cap fund DG -Rs4000
5) ICICI balanced fund DG-Rs4000
6) ICICI pru value discovery DG- Rs4000
7) Tata Equity P/E fund DG – Rs5000
after new re-categorization rules,VR & money control degraded the star rating from 5star to 3star in some funds. my view is for 10yrs. Can i continue in this fund or to switch out…pls advice
Dear Subbiah,
Individually the funds in the above list are decent ones.
Investing in too many funds may not be really beneficially as this may lead to overlap.
Suggest you to check these Funds’ portfolio overlap after few months as AMCs are now re-structuring the Schemes and then can trim down your portfolio a bit.
As of now, you may continue with your investment plan.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* Why your Best Mutual Fund Schemes may not remain as ‘the best’? | Categorization & Rationalization of MFs
Hi Sreekanth,
Thanks for the valuable article.
Below is my portfolio per month.My age is 45 and I have a long term view of my investments.Please review the same and suggest if any changes are required in the current scenario.
My Portfolio:
1)Birla Sunlife Frontline Equity Fund – Growth – Direct(Large Cap)—3000 /month
2)Franklin India Smaller Companies Fund(Small Cap)–3000/month
3)HDFC Balanced fund – Direct -Growth– 3000/Month
4)Mirae Asset Emerging Blue chip fund – Direct -Growth-3000/Month
5)Kotak select focus fund – Direct -Growth – 3000/Month
Dear jitendra ..You may continue with your investment plan.
Thanks for ur valuable advise. I want to ask whether any other fund required to be added to my portfolio. If Yes, Suggest the fund.
Hello Sreekanth,
My Grandpa is a super senior citizen, now he is pension is crossing more than 5 Lakh CTC. so to avoid Tax (only this purpose,) which is the best ELSS fund or best alternative way of investment keeping the Tax benefit in mind.
Dear Gururaj,
Kindly note that investments should not be done just based on Tax saving feature.
May I know if he is aware of the risks associated with Equity (ELSS) funds? What is his investment time-frame?
Kindly read : Why you should think beyond TAX when investing!
Hello Sreekanth,
Would like to redeem units under Tata Balanced Fund,not in a haste though .
What would be a oppurtune time ?
Should one wait till a run up to the 2019 elections or as predicted maybe a rally sometime in Nov/Dec’18 ….could be a bull run
Regards,
Roy
Dear Roy,
No one can predict the future.
Based on its past performance for the last few years, may be it is prudent to switch from this fund right now.
Thank you Sreekanth.
Hi Sreekanth,
My age 29.
I would like to invest Rs.5000 in Mutual Fund SIP for 4 years.
I have invested lumpsum before in sbi liquid fund and withdrawan on jan 2018. Currently no investment in mutual fund. Ready to take moderate risk also. Suggest me some funds (with or without ELSS)
Hi Ram, there is no right answer for your query. The reason is because you are not investing based on the the goal. Having a goal creates a commitment and hence the motivation. Once that goal is reached, only then you think about withdrawing and not like your investment in liquid fund (you never told when did you invest in liquid fund, if you did it within last year then you earned less %age than the some savings bank FD. When you define a goal (say 5 years from now you need 10 lakhs), then you calculate how much is needed each month at what average %age. unofficial rule is like, if you can take risk then you should aim for an average of 15% appreciation in investment. This will approx requite 70 % eqity and 30% debt. Meaning in next 5 years your money (invested in the first year) would be doubled. Slightly conseravtive approach will be to target 10 – 11%. This will approx have 50 -50% distribution in Equity and Debt. Finally targetting 7-8% means distributing 20-80% (E-D) or even 10-90%.
So start with first creating a goal!. hangon. first make your foundation – do you have emergency fund & all the necessary insurances (term insurance and Medical) ? If not, just one bad phase/event is enough to derail all your hardwork of planning.
Hope you learnt something
Dear Ram,
If your investment horizon is around 4 years, advisable to avoid Equity funds. You may consider Short term Debt Funds.
Hi Sreekanth
Could you name some funds?
Dear Ramkumar,
For ex : Franklin Low Duration or L&T Low duration fund etc., These are debt funds and can expect returns in the range of 5 to 8% (but returns are not guaranteed).
Sir , i have below funds in my portfolio, Can you give me a view whether these are good to continue after SEBI changes.
Please suggest with details for my better portfolio. Based on my understanding i bifurcated these for my needs, please check if that is correct
Retirement – 20 Years
• HDFC Hybrid Equity Fund – Direct Plan (G) -5K Changed from HDFC balanced Fund
Children’s – 18 Years
• ICICI Prudential Midcap Fund – Direct Plan (G) – 1500
• ICICI Prudential Value Discovery Fund – Direct Plan (G) – 1500
• HDFC Mid-Cap Opportunities Fund – Direct Plan (G) -1500
Flat – 8 Years
• UTI Mid Cap Fund – Direct Plan (G) – 2K
• ICICI Prudential Large & Mid Cap Fund – Direct Plan (G) – 3K
Thanks
Dear Gourav,
You may have a re-look at ICICI Prudential Midcap Fund
& UTI Mid Cap Fund.
Thank you Sir, Can you please suggest to which MF i need to switch these both funds for 15 years horizen
Dear Gourav,
You can make additional investments in your other existing mid-cap fund itself (HDFC Mid-cap) or you may look at Franklin Prima Fund as well.
Thank you Sir
Hi,
My finalised fund for 10-15 yrs horizon or more.
Small cap: Reliance small cap fund
ELSS: Aditya birla 96 tax saver
Multicap Funds: Motilal Oswal MOSt Focused Multicap 35 Fund
Mid Funds: Aditya Birla Sun Life Pure Value Fund or hdfc midcap (confusion in 2 scheme)
Now if all above fund selection ok then can i start sip or can i change in any best option if i missed. Another thing if i am wrong in categorisation in funds & wrong then also let me know because there is recent change in MF Schemes.
Approx amount will be 2-3k in each fund.
Thanks.
Dear Hesh,
The listed funds are good ones.
In case, you would like to have a pure mid-cap oriented fund, you may pick HDFC Mid-cap or Franklin Prima fund.
Thx Mr. Reddy for suggestion for hdfc midcap fund.
But as i saw ur article for funds of 2018. In Small-cap & Multicap respectively my funds reliance small cap & Motilal focused 35 fund are not mention by u:( So still i should go for these 2 funds!
As u guide many times to all for selecting less fund & diversified so i take only 1 fund in each category which are best & still potential for gud return in coming long term horizon. So, my idea is correct? As per ur advise.
Thanks.
Dear Hesh,
You have mentioned a Value fund in the above list, hence suggested a pure mid-cap 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:
Currently, I am investing in Mutual Fund with 20K Per Month and goal is to maximize my Investment for Future. Also doing Lump sum investment occasionally into same schemes approx. 20K-30K in a year
1. HDFC Top 200 Fund-Regular Plan-Growth – 2000 (Large Cap)
2. HDFC Mid Cap Opportunities Fund-Regular Plan– Growth -> 3000 (Small & Mid Cap)
3. ICICI LTEF (Tax Saving)-Direct Plan-Growth -> 2000 (ELSS)
4. Birla Sun Life Frontline Equity Fund -Growth -> 3000 (Large Cap)
5. SBI Blue Chip Fund Plan-Direct Plan-Growth -> 2000 (Large Cap)
6. Franklin India Prima Fund-Direct-Growth ->3000 (Small & Mid Cap)
7. Kotak Select Focus Fund – Growth -> 2000 (Diversified)
8. Mirae Asset Emerging Bluechip-Reg(G) -> 3000 (Small and Mid Cap Fund)
9. ICICI Prudential Balanced Fund-Growth Complete 3 Years in Jan 2017 (Balanced)
10. ICICI Prudential Balanced Fund-Direct Plan-Growth -> 20000 (Balanced)
Please suggest if any add/deletion required in above MF Scheme for better return or do i need to switch in some other plan.
Thanks in Advance !!
Dear Amit,
Thank you for following my blog posts!
Investing in too many funds may not be really beneficially as this may lead to overlap.
Suggest you to check these Funds’ portfolio overlap after few months as AMCs are now re-structuring the Schemes and then can trim down your portfolio a bit.
Especially funds that belong to same fund category.
For ex : 1, 4 & 5 are large-cap oriented ones. You may retain one of them.
As of now, you may continue with your investment plan.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* Why your Best Mutual Fund Schemes may not remain as ‘the best’? | Categorization & Rationalization of MFs
Woh! too many funds. As Sreekanth said, look at the funds and tune it. Especially those Regular plan – shift to Direct fund, you are just losing money there. However, you need to be careful, if you shift to Direct, it will be considered as withdrawal and re-investment – meaning, it will be taxable in a year, if you have any profits. However, you can make sure of that 1 Lakh amount which remains not taxed each FY. Also, why have you taken Balanced fund, when you have Large Cap, Small & Mid Cap? You either continue with good Balanced fund or you Large Cap, Small & Mid-cap. You are not benefiting by keeping your feet in all boats!
Hi sreekanth
Congrats you for your valuable blog…
Its 2015 August…very first time I cane across this blog..
Then never look back..
I use to invest in direct equities since 2001. after 2008 crash, 60% valuation got eroded. Still struck to market. As i started house construction in late 2010, i removed all my stocks with mere 30% profit.
And no investments then, due to EMI on house loans.(.later i read in your blog about owning a house at 35 loosing all investments)
After carefully looking in to your blog…in 2015 i closed housing loan.
Then in August 2015 i started with these funds..
1. Canara robeco Emerging Eq-3000
2.sbi blue chip-3000
3.DSP BR Microcap-4000
4.Axis long term Eq-5000
5.UTI transportation n logistics fund- 3000 (knowing the risk)
From june 2017(i addition to the above)
1. Canara robeco Emerging Eq-3000 (additional)
2. SBI Blue chip-3000(additional)
3.Mirae Emerging blue chip-5000
4.Motilal multicap 35 -10000
5.L &T Emerging business-5000
from this month i added SBI small cap as they started accepting new SIPs.
My age 41.
Time frame – 15+ years
Please let me know any modifications in this regard..
మీ బ్లాగు వల్లనే సాధారణ తప్పులు కూడా జరగకుండా జాగ్రత్తలు తీసుకుంటున్నాను.
మనస్పుర్టిగా అభినందనలు తెలుపుకొంటున్నాను..
Dear Ramamohan,
Thank you for your appreciation and for being my loyal blog reader!
Individually all the above funds are good ones. But, investing in too many funds may not be really beneficially as this may lead to overlap.
Suggest you to check these Funds’ portfolio overlap after few months as AMCs are now re-structuring the Schemes and then can trim down your portfolio a bit.
As of now, you may continue with your investment plan.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* Why your Best Mutual Fund Schemes may not remain as ‘the best’? | Categorization & Rationalization of MFs
I am a retired person from a PSU. I hv invested aprrox. 25 L in hdfc hybid eq fund earlier balanced fund), 14L in ABSL MIP-II WEALTH25 (now regular sv fund) and 11L in ICICI PR BAL ADV FUND , withrawl will be from these funds thro’ SWP not atleast for 3 yrs.
Further to take care of my future requirement ( considering inflation) I am in the process of investing in following funds ( about 60%done, balance in coming 3 months). INVESTMENT HORIZON 10 YRS
1) MIRAE ASSET IND OPP FUND- 3.5L
2)MOST MULTICAP 35 FUND – 3.5 L
3)ICICI PRU BLUECHIP FUND -2.5 L
4)L&T EMERGING BUSINESS FUND- 3 L
5)HDFC SMALL CAP FUND–1.5L
6)HDFC EQ SAVINGS FUND-5.5L
7)ABSL ADVANTAGE FUND- 3.5L
8)ABSL SMALL CAP FUND- 1.5L
9)ABSL PURE VALUE FUND- 2L
10)MIRAE ASSET EMERGING BLUECHIP FUND ( SIP 5000/PM)- 3 YRS
Kly advise whether I am on right track to withdraw say 40000/pm thro swp after 3 yrs for 10 yrs then gradually 50000/pm from 10 yrs beyond.
regards.
Dear Mr Singh,
Are you highly dependent on these SWPs to meet your living expenses?
May I know if you have other sources of income??
Suggest you to kindly use the calculator available here @ Retirement planning..
For next 3 to 4 yrs I am not dependent on these SWP’s. After that I may need withdrawal of say 30000pm for couple of years gradually increasing to 40000pm and so on. My advise.
Dear Mr Singh,
In case, you do have other sources of income, SWPs from Equity funds alone can be a risky affair.
Suggest you to consult a Fee-only planner and plan your investments.
You may kindly go through this article @ My List of popular Fee-only Financial Planners | Based on my interactions & observations
I am not highly dependent on income from these funds. I v other sources like SCSS 15 l and postoff MIP 9 L.
Hi Sreekanth,
Congratulation for 4th birthday of your blog. I wish you to blog more & more years and its a great society to our people and country.
I saw your recommended portfolio & it has HDFC Balanced fund. It is one of my favorite and best returned fund for more than 5 years and it yielded me almost 28%.
Fund house transferred balanced to hybrid.
Very sad to see it got merged with HDFC Hybrid Equity fund. I’ve several queries on this topic.
1] As on 31-Mar Balanced fund had almost 20K Crore AUM. Will they transfer the amount to Hybrid fund?
2] I don’t see the huge AUM in Hybrid fund. It has just 205 Crores.
3] Balanced fund was very well balance of 65:35 ratio. But now hybrid has 95:5 ratio. Is it a true Balanced fund?
4] VR shows 1 star rating for HDFC hybrid fund and it didn’t performed well in the past since inception from 2005. So should we continue to invest in Hybrid fund?
5] I’ve ICICI pru balanced fund as well in my portfolio. I’m continuing the same. What’s your recommendation on any other balanced fund?
Dear Mukesh,
HDFC AMC has done it in an intelligent way.
Kindly note that HDFC balanced fund has not changed much except for the name and some small portfolio allocation change.
Do not go by Star ratings or past performance for the next few months. You may kindly continue with both the funds.
Thank you Sreekanth for your recommendation. I’ll continue the HDFC & ICICI funds for 6 months and see its performance.
Hi Reddy ,
Good to see your post 🙂 Thanks for it !!
I am planning to invest 3k per month for 3+ years.Please suggest a fund .
Presently my portfolio has below funds :
1. Axis Long Term Equity : Tax Saving : 2000/m
2. SBI Blue Chip : Large Cap : 2000 /m
3. HDFC Balanced Fund : Balanced : 1500/m
Dear Pooja,
If your investment horizon is around 3 to 5 years, you may consider making additional investments in your existing balanced fund itself.
Thanks for your reply..
Shall I also Add Short term Funds to balance out my folio ?
Dear Pooja,
You may add Short term debt fund. Ex : Franklin Low duration fund / HDFC Short term debt / L&T Low Duration Fund etc.,
Hi Sreekanth ,
I did check the funds and planning to invest the total of 3000 in the below funds :
1. L&T Low Duration
2. ABSL MIP II Wealth Plan
So after adding the above my folio would look like below :
1. Axis Long Term Equity : Tax Saving : 2000/m
2. SBI Blue Chip : Large Cap : 2000 /m
3. HDFC Balanced Fund : Balanced : 1500/m
4. L&T Low Duration : Small Cap : 1500/m
5. ABSL MIP II Wealth 25 : 1500/m
Dear Pooja,
Kindly note L&T Low duration is a short term Debt fund and not Small Cap (Equity) Fund.
Hi Sreekanth ,
Short term debt funds as per my knowledge are more fluctuating according to the market and are taxed right ?
Is there anything I am missing ?
Also if given a debt and equity fund for short duration , what should one go for ?
Dear Pooja,
Small cap funds are one of the types of Equity Funds. Equity Funds are more volatile than Debt Funds. But, do note that returns from both types are not guaranteed.
For shorter investment horizon, one can pick Ultra short term or Short Term Debt Funds.
Kindly note that from FY 2018-19 even Equity Funds are taxed.
You may kindly go through the below articles ;
* Debt Funds : Types, Benefits & Risk Vs Return
* Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
Hi there !
Thanks alot for your patience and answering my queries on Debt funds.
Please verify my folio :
1. Axis Long Term Equity : Tax Saving : 2000/m
2. SBI Blue Chip : Large Cap : 2000 /m
3. HDFC Balanced Fund : Balanced : 1500/m
4. L&T Low Duration : Small Cap Debt Fund: 1500/m
5. Franklin India Prima Fund : Mid Cap :1500/m
Dear Pooja ..Your portfolio looks fine.
L&T Duration fund is a Short term debt fund 🙂
Yes Sreekanth , Taken a note of it.
I didn’t find any point which takes me away from investing in Short term Debt funds .
Also time duration would be around 2 years.
Let me know if you have any suggestion on the fund with which I can replace it.
Hi Srikanth,
What’s your take SBI Multicap fund?
Dear Raghuma,
Decent one, can consider investing.
But given a choice, I will pick ABSL Equity Fund under multicap category.
ABSL invest mostly on oil n gas and chemical heavy.. with high crude price.. both the sectors will be hit badly. Kindly give reason for ur choice this plan.
Dear RANJEET,
I am sure the Fund manager of this fund is more talented with proven track record, they definitely would have factored in all the possible factors. Hence these funds are known as actively managed funds.
By the by, aren’t high prices good for Oil companies? or Am i missing something?
Hello Sreekanth, I want to invest Rs. 5000/- in Franklin India Equity Fund (multi cap) or Franklin High Growth Companies Fund for 5 years – which one of the two do you suggest?
Also, I want to buy Tata Motors shares. I was considering to purchase Tata Steel also but it is expensive as of now. So, thinking to buy Tata Motors. Is it fine?
Dear Shalini,
For a 5 year term, may be an equity oriented balanced fund is a better choice.
Ex : HDFC Hybrid Equity Fund.
In case, you have to pick only from the above two, you may consider Franklin India Equity Fund.
Oh! I have invested in both these funds yesterday..is there any way in which I can switch from Franklin India Prima fund direct growth to HDFC Hybrid Equity Fund?
Dear Shalini,
Nothing wrong with these two funds. But, in case you are ok with high risk profile, can continue with them.
Hybrid Equity funds have moderate risk when compared to Multicap funds.
Okay…thanks much Sreekanth 🙂
Also, what’s your view on Tata Motors shares?
Kindly note that I do not provide suggestions on Stocks/Direct Equities.
Okay, no problem.
Hello Mr. Reddy,
My father (retired central govt.employee) has Rs.35 Lac in his bank s/a. Getting pension around Rs.25,000 pm; Have mediclaim from govt; No financial dependent.
I have planned this strategy for the investment –
Debt (70) : Equity (20) : Gold (10)
24.5 Lac : 7 Lac : 3.5 Lac
1. Debt :
Axis Liquid Fund – 3.5 L (Emergency Fund)
ABSL Monthly Income Plan II – Wealth 25 Plan – 5.25 L (Aggressive Debt Hybrid)
ICICI Prudential MIP 25 – 5.25 L (Aggressive Debt Hybrid)
Reliance Monthly Income Plan – 5.25 L (Conservative Debt Hybrid)
SBI Magnum Monthly Income Plan – 5.25 L (Conservative Debt Hybrid)
2. Equity :
Axis Long Term Equity Fund – already invested Rs.7 Lac via STP from last couple of yrs.
3. Gold :
Already invested Rs.3.5 Lac in Reliance Gold Bees from last couple of yrs.
Is it good or need any modification ?
Dear Mr Kulkarni,
May I know your father’s investment objectives, time-frame and is he a Tax Assessee?
Suggested article :
Lump sum Investment options for Retirees/Senior Citizens | Where to invest my Retiral benefits to get Regular Income?
Thanks for reply!
Investment objective – Growth;
Time frame – Mid to Long term (above 3 yrs.);
Currently he is in 5% Tax bracket;
Risk appetite – Low to Medium.
Dear Mr Kulkarni,
Liquid Fund is ok.
You may pick two MIP funds instead of 4.
You may consider one Short Term Debt Fund. Ex : Franklin Low Duration Fund / HDFC Short term debt fund etc.,
In case, he is not looking for Tax saving fund, instead of Axis LTE, he may consider HDFC Hyrbid Equity fund (equity balanced fund with moderate risk profile).
Thanks for your valuable time and input Mr. Reddy !
Dear Sree, I am investing in Aditya Birla Frontline Equity Fund since 2016, now I want to switch partly to the aditya Birla Tax relief 96 growth option. Will I be able to avail of the Section 80C benefit for these transaction?
Dear Prakash,
Very good question!
I believe Swithces are considered as normal/regular redemption and investment.
So, if you switch from ABSL Frontline fund to ABSL Tax relief fund then the amount invested in it will be considered as fresh investment and will be eligible for income tax deduction u/s80c. This investment gets locked for 3 years.
Thanks Sree for your quick reply.
Dear Sree, In continuation to the above query, I have started investing in Axis long term Equity – Regular Plan in Nov 2015. Suppose if i make STP to Axis long term Equity – Direct Plan from Dec 2018, Whether the same will be considered for Tax deduction u/s 80c? Can you please clarify.
Dear PRAKASH,
No, it wont be considered for tax deduction.
Kindly note that units allotted under an ELSS fund have a lock-in period of 3 years.
Thanks Sreekanth
my portfolio
axis long ter equity-4000/month SIP
dsp black rock -4000 sip
HDFC balance fund-lump sum(15000 till now invested)
now i am planning to start sip in HDFC small cap fund as sbi small cap fund is not accepting lump sum.
next is one midcap and large cap fund.ki ndly suggest whether i am on right track.
Dear Ranjeet,
What is the scheme name of DSP?
May I know your investment time-frame?
DSP BLACK ROCK tax saverfund
Dear RANJEET,
You may continue your investments in three of your existing funds.
For mid/Small cap suggestions, kindly refer to the list provided in the above article.
sir, 3 lakhs is in my bank saving account. i acctually want to invest all as saving rate is 4 %. Kindly guide ,how to when to and where to use these money.
Hi Sreekanth
I would like to invest lumpsum amount Rs.3 lac. I need this amount after 3 years. Kindly suggest a mutual fund (one or many).
My Age 56
Thanks in advance.
Dear Ramkumar ji,
May I know if you have already made investments in any MF scheme(s)?
I invested Rs. 3 Lac in sbi liquid fund and 1 lac in equity hybrid fund from august 2017
Dear Ramkumar,
If you are ok to take some risk, you can invest this corpus in ultra short term or short term Debt Funds.
Ex : Franklin Low Duration Fund / Kotak Low Duration Fund / Franklin India Ultra Short Bond Fund
Dear Sreekanth,
Would appreciate your view on the below mentioned funds post reclassification:
ICICI Pru Value Discovery fund (Reclassified- Multicap to Value fund)
Franklin India High Growth Co’s Fund (Reclassified -Multicap to Focussed fund)
I am invested through SIP mode in both the above funds for my long term goals.Should i remain invested in the same ?
Have a nice weekend.Cheers !
Best Regards,
Roy
Dear Roy,
Suggest you to stay invested in them. Worth taking risk, as of now!
Thank you for the suggestion Sreekanth.
Cheers ! have a great week ahead.
Hello Sreekanth,
I have a SIP running for long term in DSP BL Micro Cap Fund which is not performing good lately. Is it time to stop the SIP and switch to may be Franklin Smaller Companies Fund or Reliance Small Cap Fund?
Dear Suraj,
Kindly do not judge a fund’s performance based on short term..
As of now, suggest you to continue with it if you are investing in it for your long term goal.
hello sir….I want to start investing in HDFC Hybrid Equity Fund. Can you please tell me your advice. I have invested in birla sunlife front line fund already. I have fd and rd also. I watched on tv that HDFC Hybrid Equity Fund is better than rd and fd… what do you think,
I am sir now 36 years old and my take home salary is 90,000. I want rupees 50 lakh when i am 50 years old. thank you so so much.
Dear susneha,
If your investment time-frame is long term say 5+ years and you are ok to take risk (returns from FDs are fixed and guaranteed, same is not the case with Mutual fund investments), then you can consider investing some portion of your investible surplus in HDFC Hybrid Equity Fund.
Related Articles :
* Why you should not invest in Fixed Deposits & Recurring Deposits for long-term
* Retirement Planning in 3 Easy steps
Hi,
Thanks for the guidance.
Below is my and my wife’s portfolio which I’m planning.Our 2 goals are after 8 years and other 3 goals are after 16, 25 & 32 years. Please suggest if you would make any change if you were me.
My Portfolio:
1)Mirae Asset India Equity Fund-Reg(G) (Large Cap)- 40%
2)Motilal Oswal Multicap 35 Fund-Reg(G)(Multicap)- 20%
3)HDFC Mid-Cap Opportunities Fund(G)(Mid-Cap)- 20%
4)Franklin India Smaller Companies Fund(Small Cap)-20%
Wife Portfolio:
1)ICICI Pru Focused Blue-chip Equity Fund (Large Cap)- 20%
2)Franklin India Prima plus(Multicap)– 20%
3)Mirae Asset Emerging Bluechip-Reg(G)(Mid-Cap)- 30%
4)Franklin India Smaller Companies Fund(Small Cap)- 30%
Above investment is 80% (equity part)of total Monthly Saving Required. Rest 20% we will invest in debt instruments.
Dear Chandra,
Looks like the portfolios have been built carefully , well chosen funds.
They have one large, multicap, mid-cap and small cap each.
Kindly note that Mirae Asset Emerging Bluechip Fund will now be positioned as Large-Mid cap fund.
You may continue with your investments.
Dear SR,
I have a question. Based on Mr. Chandra Banu Rastogi he mentioned Franklin india smaller companies fund in both his and his wife portfolio. What is your view on same fund in each folio?
Dear Kumar,
It’s their personal conviction.
First thing is it is a decent fund, they have a long term view and I also see it as say two Rs 5k SIPs than one SIP of Rs 10k.
Dear Sreekanth,
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)
Reliance Small cap fund growth Direct Plan – 3000
Mirae emerging bluechip fund growth Direct Plan – 2000
Now, after Mutual Fund classification, I would like to know if I should continue with above portfolio OR any changes are required, if yes then which fund I should include/exclude?
Further, Now Large cap funds are restricted only upto top 100 companies, I am thinking to move my investment and 2K SIP of Birla sunlife frontline equity fund to Aditya Birla Sun Life Equity Fund.
Many thanks in advance for your valuable inputs and advise !
Dear Jitendra,
You have two small cap based funds, you may retain either Franklin Smaller cos fund or Reliance small cap.
Similarly you already have two multi-cap funds Franklin Prima plus and HDFC Equity. You may retain Franklin Prima plus fund.
You may continue with Birla Frontline Equity.
Sir,
After entering,my questions automatically change.
Right questions is here.
Here my 2 questions,
1) Dividend income upto 10 lac from listed company or mutual fund is tax free.
After 10 lac which IT rate applicable.
2)DDT for MF is 10%.
a)If I received Dividend 10lac,it is double taxation.(DDT & IT)
Am I right ?
Sir,
Here my 2 questions,
1) Dividend income upto 10 lac from listed company or mutual fund is tax free.
After 10 lac which IT rate applicable.
2)DDT for MF is 10%.
If I received Dividend 10lac,it is double taxation.(DDT & IT)
Am I right ?
Dear Pankaj,
1 – Dividends from stocks only, in excess of Rs 10lakh is taxable. The rate of tax is 10%.
2 – Dividends on Equity Mutual Funds : The dividend received in the hands of an unit holder for an equity mutual fund is completely tax free. However, w.e.f. FY 2018-19, the fund houses have to pay 10% Dividend Distribution Tax (DDT) on equity oriented mutual fund schemes. (Effective DDT rate is 11.648% inclusive of 12% surcharge & 4% cess.)
Related articles :
* Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
* Income Tax Deductions List FY 2018-19 | List of important Income Tax Exemptions for AY 2019-20
Hi Sreekanth, I have been a regular reader of your blog and it has given me a good insight on Mutual fund investments. Thank you very much. I have a query and would appreciate if you could provide your comments.
1. I started SIP 1k per month in Franklin India smaller companies fund regular plan since July 2017 and i wanted to switch it to direct plan. Now that we have exit window till June 1st 2018 provided by the AMC, do you think it is a good idea to switch it to direct plan now?
2. I have a lumpsum of 3 lakhs and i’m planning to invest it in Birla sunlife MIP II wealth 25 plan for contingency fund. Do you think this is okay?
Dear Sneha,
Thank you for following my blog!
1 – If an investor switches from a regular plan to direct plan, do note that taxes are applicable on capital gains.
Related article : Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
2 – For Emergency Fund, advisable to consider a Liquid Debt fund. An MIP plan can be risky.
Related article : What is an Emergency Fund? | Why, Where & How much to save?
Thank you very much Sreekanth for the advice and the quick response.
Dear Sreekanth,
Could you please suggest me a liquid debt fund to park the emergency fund.
Dear Sneha,
Most of the popular liquid funds are similar.
You may have a look at HDFC Liquid Fund / Aditya Birla Sun Life Money Manager Fund / ICICI Prudential Liquid Fund ..
Good Article sreekanth. Can you review ABSL Top 100 Fund. Its is now revised as Focused equity fund. I have been investing 3000 K in that fund for 3 years. so far performance is good. now the fund is multicap with only 30 stocks. would like to know expert comment on it
Dear saju,
Suggest you to continue with your investments.
Do you also own any other MF investments?
Thank You Sreekantht
My Portfolio consists of
ABSL Top 100 3K
Franklin Build India 3K
SBI blue chip: 1k
Reliance Small cap 1 K
Other than this I will invest 30-50 K per year on ELSS on tax benefit. Its not sip, I will monitor the market and hen when it comes down put some amount on AXIS Long term or in birla tax plan
Many Thanks,
Saju
Dear Saju,
After few months suggest you to check the portfolio overlap between SBI bluechip and ABSL Top 100. In case, the funds portfolios overlap is say above 25%, you may retain either of these two large cap funds and redirect your investments in Top 100 to other existing funds based on your investment time frame.
Kindly note that ABSL Top 100 has now been renamed as Aditya Birla Sun Life Focused Equity Fund .
Related article : Mutual Fund Portfolio Overlap Comparison Tools
Franklin Build India fund is an Infra based fund and I assume you are aware of the high risks associated with a thematic or sector based funds.
Very Informative list & topics in one place. Thanks Sreekanth
Dear Sreekanth,
I have been a regular reader of your blog. Have a query for you to answer. I have started investing in SIP of MF from last 1 year and I have invested it in two funds: ICICI Pru Value Discovery (G) and HDFC Balanced Fund (G) with 3K each on monthly basis. When I am checking right now, both are showing negative annualized return for my investment, one showing -1.32%, other showing -1.06%. Should I be worried on this and shift my investment to other fund. My target was to invest for 3-4 years on these funds.
Dear Iftikar,
Thank you for following my blog posts!
If you need money in 3 years, suggest you not to invest in Equity oriented Funds.
Dear Sreekanth,
Thanks for your revert. Can you please confirm for how many years, equity based MF are good for? In that case, I would start different investment for 3 years and continue equity MF investment for larger duration.
Dear iftikar,
May I know your financial goals and investment objectives??
Hello Sreekanth, I found your blog while searching for financial information. So nice, so good. Full of micro details.
I have dsp black rock top 100 mutual fund and putting money from seven years (2011). I am investing 10,000 every month. I also bought SBI blue chip fund two years back with 10,000 every month. I invest 5,000/month in RD.
I am 40 now and need 50 lakh at the age of 50 for building a house. Do you think these funds are good enough and shall I hold them. I know you cannot predict fund performance but need your advice. Also, can I complete my goal of 50 lakh with it? Thank you for the in advance.
Dear Mr Rao,
Thank you for visiting my Blog and good to know that you like the info share here!
May I know the returns on your investments in DSP Fund and from your overall MF portfolio?? (two funds)
Both funds are large-cap oriented ones. You may continue with them. But, in case, you would like to diversify a bit, you may retain either of these two funds and pick one multi-cap fund. Ex : Birla Equity Fund.
The overlap among these two large cap funds as of now is around 44%.
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Sir, the DSP fund returns are 14% and SBI is 12%. My time horizon is 10 years. Do you think RD is a good investment. Will I complete my goal of 50 lakh with it? Thank you for the advice in advance.
Dear Mr Rao,
For long term goals, Equity can be a good choice.
In case, you would like to take moderate risk, you may consider adding an Equity oriented balanced fund like HDFC Hybrid Equity Fund.
Suggest you to kindly use the calculator available @ Retirement Planning in 3 Easy steps
Also read : Why you should not invest in Fixed Deposits & Recurring Deposits for long-term
Hi Sreekanth,
I have been following your blog since last year and I admire your insight into the MF world. Can you please comment on my MF Portfolio and suggest your observations :
SBI Mutual Fund : Blue Chip Fund (Lumpsum : 1.30L)
Equity Hybrid Fund Direct (Earlier Balanced Fund, SIP 5000 pm)
DSP Black Rock : Tax Saver Fund Direct (SIP 5000 pm )
Equity and Bond Fund Direct(Earlier Balanced Fund, SIP 5000 pm)
ACE S1 Direct( 25000 Lumpsum)
ICICI Prudential LTEF Tax Saving – SIP 5000 pm
Aditya Birla SL Tax Relief 96 Fund ELSS – (Lumpsum 1.01L. Earlier I had it under Front Line Equlity Fund, switched over to this)
Axis Long Term Equity Fund – SIP 5000 pm.
Please let me know your thoughts on my SIPs and Lumpsum investments. I do see a bit of negative growth of late, but apart from switching of ABSL Equity to Tax Saver, I am still invested in these MFs.
I have come up with these based on my research on your website and other articles. I have been doing this for the past 15 months. Please let me know if i am in the correct path. I will be happy to change/switch anything based on your suggestions.
Thanks a lot and I really appreciate your help.
Regards
Rajesh Kumar
Dear Rajesh,
Thank you for following my blog posts!
Individually all the funds are good ones.
But you have four Tax saving funds and all the units allotted under each SIP gets locked for 3 years, can be inconvenient to withdraw when you require the funds.
Also, we can typically consider ELSS funds to be primarily multi-cap funds. If ok, you may reduce the number of ELSS funds in your portfolio after checking their portfolio overlap.
You may check the overlap after couple of months.
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Hi Sreekanth,
Thank you so much for your quick response. I am not looking for withdrawing the funds for 3 years. Also, I have gone through your article on overlap of MFs, can you please suggest the maximum percentage overlap I can have? Maximum overlap percentage I had was 25% between DSP Blackrock and ICICI LTEF, rest of them are between 12% to 18%
Dear Rajesh,
There is no thumb rule as such regarding the % of ovrelap.. Ideally, an investor should aim at lesser % of overlap among the funds in his/her portfolio.
Anything below 25% should be ok.
Hi Sreekanth,
Thank you very much for your advise. God bless you and your family for the immense guidance you are offering through your blog which is very helpful for newbies like us. Way to go my friend!
Thank you so much for your kind and motivating words!
Keep visiting ReLakhs.com
Hello Sreekanth,
Thanks for wonderful blog.
I have below mutual funds in my portfolio, do you think I should trim few ?
I am investing 2000 in each fund.
1.Kotak select focus fund
2.Mirae emerging bluechip
3 Motilal 35 multicap
4.Hdfc midcap opportunity
5.Franklin smaller companies
6.L &T emerging business
7 Reliance small cap
8.Sbi smallcap
9.ABSL Tax 96
10. DSPBR tax saver
Dear Suraj,
Investing in too many funds may not be really beneficial.
You have invested in four Small cap based funds. You can surely trim your portfolio, can keep one small cap fund alone.
Suggest you to check the Funds portfolio overlap after few months and can take decision.
Kindly read : Mutual Fund Portfolio Overlap Comparison Tools
Dear Srikanth,In recent years successful mutual funds have received huge investments from new subscribers leading to a very large AUM of these funds,which compelled fund managers to change their mandate and invest even at peaks in the market,this has lead to their underperforming.Eg. ICICI value discovery,Kotak select Focus,HDFC balance fund,HDFC mid cap opportunities,Axis long term equity fund and many more.Should one avoid such funds which are under performing?
Dear Jawaharlal,
I believe that an investor who is not comfortable with Actively managed funds can now seriously think of investing in Index based funds.
Related article :
What are Index Funds? ETFs Vs Index Funds | Should you invest in them?
Dear Srikanth ,I was asking whether we should avoid funds with large AUM or continue to stay with them.
Dear Dr. Jawahar,
With the mentioned SEBI rules in place, most of the popular MF Schemes may now have large AUMs.
Let’s not worry too much about the size of mutual funds, it is a debatable point.
May be, it is wise to pick consistent performing funds even if their AUMs are large.
Hi, Thanks for the article.
Currently investing in (started investing in MF from the past year)
1. Birla sunlife frontline equity fund
2. Franklin High growth companies fund
3. Mirae emerging bluechip fund
4. L&T emerging businesses fund
Kindly review and suggest for any changes if required considering longterm and retirement goals. Allocations are in equal proportion as of now. Age is 29.
Thanks in advance
Dear Sai,
You may kindly continue with your investments.
Kindly note that Mirae Asset Emerging Bluechip Fund will now be positioned as Equity – large & mid cap fund instead of a Midcap fund.
Hi Sreekanth
I remember last year you mentioned you are going to stop SIP in Tata Balanced Fund as its not performing (in ur portfolio) ..
I have that Fund for last 3 years in SIP, is it worth to continue for another 2 more years ? Considering that we can accumulate more units now ..?
Also ICICI Pru value Discovery Fund …Is it good to redeem it or accumulate now via SIP ..this also I am doing SIP in last 3 years ..
thanks ,
Thomas.
Hi,
Yes, last year, I had stopped making fresh investments in TATA Balanced Fund, now looking to redeem the units in this FY.
You may switch to HDFC hybrid equity fund (HDFC Balanced Fund).
You may continue with ICICI Val Dis Fund.
Hi Sreekanth,
It was an nice article, and i was waiting for long time. I am an long term investor mainly for corpus generation.
My Present Portfolio is as follows:
1) Term Plan
2) ELSS : Axis LTE
3) Midcap Funds:
a) SBI magnum midcap
b) Mirae Asset Emerging blue chip
Now planning to diversify my portfolio after reading the above article. So planned to invest in dedicated Multicap & Small cap.
Shortlisted the following Multi-Cap fund (Large Cap focused):
1) Motilal Oswal Multicap 35 Fund
2) Tata Equity PE Fund
3) Kotak Select Focus Fund
Small cap schemes:
1) SBI Small Cap
2) Reliance small cap fund
Kindly advice each from above mentioned Multicap & Smallcap schemes.
Any other suggestions are icing in the cake.
Thanks in advance.
Regards,
Sankar Kumar.
Dear Sankar,
SBI Midcap has an average performance. You may re-look into it.
Kindly note that Mirae Asset Emerging Bluechip Fund will now be positioned as Large-Midcap fund instead of Mid-cap fund.
Motilal – 35 is a multi-cap fund which has been performing well, but its relatively a new fund.
TATA PE fund is a diversified Fund, will be moved to Value Fund category.
Kotak Select focus has large-cap bias, will now be a Focused Fund.
The above three funds are good ones. You may pick anyone of it. If you are looking for a multi-cap fund only then you may go for Motilal fund.
You may consider SBI Small cap fund.
By the by, do you have adequate Health insurance cover and Personal Accident cover??
Dear Sreekanth,
Thanks for the reply.
Should i stop investing in SBI midcap fund? and I am going ahead with SBI Small cap and Motilal -35 fund as suggested.
No i do not have any PA or HI cover.? Is it compulsory as i have been covered under my company policy (Group medi-claim, group term & Personal accident policy).
Dear Sankar,
You may discontinue it.
Yes, advisable to buy stand-alone PA & HA cover, do not depend entirely on employer provided insurance coverage.
Related articles :
* Difference Between Individual (Personal) & Employer based Health Insurance Plans – Pros & Cons
* Best Personal Accident Insurance Policies in India : Details & Comparison
* If Life is unpredictable, INSURANCE can’t be optional
* Top Up Health Insurance Plans – Super Top Up Health Insurance Plans – Details & Benefits
Dear Sreekanth,
I will discontinue SIP in SBI magnum. Kindly clarify whether to redeem the NAV’s and invest in some other funds or Let it be there??
Also, Could you elaborate about Contra funds? whether one shall look into contra funds for wealth accumulation?
Purely asking in terms of diversification only. If yes, how about Invesco India Contra Fund or suggest if any other good performer in contra fund category. Because i am unable to find any contra fund recommendation in any of the articles.
Researching for PA & HI policies….
Thanks a lot
Dear Sankar,
You may route the amount to some other Mutli-cap fund that you may own or own.
Personally, I prefer to stick to basic categories and do not venture in to sectoral or contra like funds. But nothing wrong in taking risk (if you can afford to.).
Regarding Value or Contra funds… Value funds will follow the value investment strategy where the fund manager will pick stocks which he/she believes are undervalued. On the other, contra funds will follow a contrarian investment strategy.
You may kindly go through this link..
Hello Sreekanth, thank you so much for your list, my bet is on aditya birla mutual funds.
Aditya Birla SL Advantage Fund(D)
Aditya Birla SL Advantage Fund(G)
Aditya Birla SL Frontline Equity Fund(D)
Dear Kuldeep,
Any specific reason to opt for Dividend plan?
ABSL Adv fund will now be positioned as ‘Large-midcap’ fund.
Dear Sreekanth,
I often visited Relakhs and wait for this article. Thanks for the nice view.
Thank you dear Kumar..I had to wait for the fund houses to implement the new reclassification rules..Else, I would have published this article a few months back itself!
Thank you Sree, I highly appriciate your efforts for this article.
Very Informative list & topics in one place. Thanks Sreekanth
Thank you dear Srini..Keep visiting ReLakhs.com!
Hi Sir,
when you told – “I am planning to redeem existing units of TATA Balanced fund & UTI Mid-cap Fund and re-invest in HDFC Balanced Fund & HDFC Mid-cap Opportunities Fund respectively.”
How this can be done ?
1) redeem means – close the existing fund – get the money to your bank account ?
2) Then Open a MF in (HDFC Balanced Fund and HDFC Mid-cap Opportunities Fund) and put Lumpsum amount what you get by redeem.
3) After lumpsum investment, then you start a monthly SIP on that ?
Please – suggest the efficient steps for that? because I have to do the same thing for one of my fund.
By the way – what is the platform you are using for tracking all MF ?
Thank you
Dear shankha,
1 – Yes.
2 – I have some investments in HDFC balanced fund, so will make additional investments (manually) in the existing portfolio. Regarding HDFC Mjid-cap fund, have to open new Folio.
3 – These days, I am more inclined to do manual investments (in installments in a FY). But, there is no right or wrong approach. SIP + manual mode can be a better approach.
Thank you.
are u referring manually investments means putting lumpsum money into the existing fund?
If yes how you do the same means how to time the market for such additional investments (manually) in the existing portfolio.
/shankha
Dear shankha,
It definitely requires some skills and also one has to invest some time and do research to make additional investments manually. If this is not possible, SIPs (automated) can be choosen.
Related articles :
* Is creating wealth through Systematic Investment Plan (SIP) a hoax?
* What is 200 Day Moving Average? | How to track DMAs? How to use them in Mutual Fund investment decisions?
Excellent Article
Thank you dear Ram 🙂
Keep visiting ReLakhs!
Hi Sreekanth,
I have been following you time to time and would really appreciate if you look at portfolio again with recent changes taking place. Also I looked at some of my funds that I have invested for over 2 years and the return is 5% or 6% in some, is it common?
My portfolio:
Mirae Asset India Equity fund
ICICI Pru Discovery fund
HDFC Balanced Fund
DSPBR Micro Cap fund
Franklin Smaller companies fund.
L&T midcap fund
My current SIP in franklin smaller companies fund is ending this July. I want to keep only one small cap do you think DSP would be a good choice with recent developments in the fund house?
Do you think I should re-organize my portfolio? What change do you suggest? I am new investor(2 years old) and still learning.
Thank you
Dear Nancy,
Suggest you to continue with your portfolio and kindly review its performance after 1 year.
In case, your allocation (%) to Small cap funds is higher Vis-a-Vis entire portfolio, you may retain either of the Smallcap funds.
Thank you Sree. Appreciate you taking time out to respond :). Take care.
Hi Sreekanth,
There is no denying the fact that mutual funds have provided nice returns to the small investor in recent years. But there has been excessive marketing and advertising on mutual funds recently. This has created a hype around it which sometimes lures the retail investor in to an investment which he/she should have avoided.
Usually retail investors have 7-8 mutual funds in their portfolio which generally includes 3-4 ELSS MF, 1-2 Large Cap MF, 2-3 Small and Mid Cap MF.
The diversification leads to averaging of returns and over a period of 7-10 years, the index itself will outperform the portfolio of an retail investor.
Also Mutual fund houses on average will charge 2-3 percent of the overall investment as operational expenses. The fund houses are making incredible amount of money via the retail investor as the actual expenses of fund houses are just 0.5 percent. The expense ratio and excessive marketing has made me skeptical on investing in mutual funds.
The alternative is to invest in Exchange traded funds which has a smaller expense ratio (0.2 percent)
Whats your view on it?
Thanks
Kunal
Dear Kunal,
Thank you for sharing your views!
There is no right or wrong approach..If one is comfortable and believe that Index funds can serve the purpose to achieve ones fin goals, they can opt Index funds.
I have also endorsed picking ‘index funds’ now, in the above article. It can be very tough for the fund managers to generate high Alpha henceforth.
Hi Sreekanth,
Thanks for the valuable article.
Below is my and my wife’s portfolio in terms of percentage allocation.My age is 29 and wife is 27 years old.We have a long term view of our investments.Please review the same and suggest if any changes are required.
My Portfolio:
1)ICICI Prudential Focused Blue Chip Equity Fund(Large Cap)—30% Allocation
2)Franklin India Smaller Companies Fund(Small Cap)–20% Allocation
3)Franklin India High Growth Companies(Diversfied)–10% Allocation
4)HDFC Balanced Fund(Balanced)-10% Allocation
5)Axis Long Term Equity Fund(ELSS)-30% Allocation
Wife Portfolio:
1)Reliance Small Cap Fund(Small Cap)-25% Allocation
2)SBI Blue Chip Fund(Large Cap)-20% Allocation
3)DSP BlacRock Tax Saver Fund(ELSS)-20% Allocation
4))Franklin India High Growth Companies(Diversfied)-25% Allocation
5)DSP BlacRock Balanced Fund(Balanced)-10% Allocation
For my portfolio, SIP was started in April 2015 and for my wife it started in April 2017.
Thanks in advance!
Dear Rahul,
Suggest you to continue with both the portfolios. Keep reviewing their performances.
Suggest you to use Funds Portfolio overlap tool(s) after few months from now.
Much awaited list. Thanks Sreekanth.