Mutual Funds are the best tools for long term wealth creation. But, the challenge is to identify good and top performing mutual funds that can help you in achieving your Financial Goals. There are hundreds of mutual fund schemes which are available in the market. Besides this, there are plethora of NFOs (New Fund Offers, new schemes) which keep hitting the market. Identifying good mutual fund for long term investment is not an easy task.
‘Wealth creation’ is like Test cricket where a quick fifty or hundred may not always win you a game. You need the solidity and consistency of a Rahul Dravid or a Laxman more often than the flamboyance of a Sehwag to be able to emerge victorious over the five days.
A ‘good mutual fund scheme’ is one that consistently manages to outperform the Category it belongs to and also its Benchmark. I have tried my best to identify top performing and best Equity Mutual Fund SIPs (Systematic Investment Plans) that you can choose to invest in 2015.
Kindly remember, you first need to identify your investment objective, time horizon of investment and risk appetite to arrive at your Investment Plan. Equity Mutual Funds are risk oriented products. Invest in these top performing mutual funds through SIPs (or lump sum) if your time horizon is atleast 5 or more years.
Methodology to select Top Equity MF for SIPs :
I have judiciously followed the below points to shortlist the best equity mutual funds :
- Returns : I have shortlisted these top performing equity MFs based on SIP returns (using SIP Returns Calculator of Moneycontrol.com). I have considered monthly SIP.
- Another factor is ‘the age of the fund’. How long has the mutual fund been in existence? That gives us a chance to look at its performance over long periods of time. Funds with a good track record for the last 5 to 10 years have been preferred.
- Risk Vs Return : Some funds may generate very good returns but at the cost of very HIGH RISK. We need to look at risk-return trade off also. I have spent good amount of time on checking some of the important ratios to measure risks of mutual funds. These are like Standard Deviation, Alpha, Beta, Sharpe Ratio and overall Risk grades of the funds.
(What is Standard Deviation ? Standard deviation is a very important statistical measure to analyze the range of a fund’s performance. When a fund has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility.Higher the Standard Deviation higher the fluctuations/volatility in returns. A Fund which can generate high returns consistently with low SD is a good one)
(Ratios to measure risk of a mutual fund : A good Mutual Fund ideally should have Low Standard Deviation, High Alpha, Low Beta and High Sharpe Ratio)
- I have also considered Expense Ratio (in % terms) as one of the factor. (What is Expense ratio? Expense ratio shows the amount that mutual funds charge for managing the investors’ money)
- I have also checked the current investment portfolios of all these funds.
- I have not considered the STAR ratings of funds provided by Ranking agencies. Usually these star ratings reflect the short term (1 or 2 year’s) performance of the funds.
- The primary sources of information are valueresearchonline.com and Moneycontrol.com.
- I have tried to identify top performing mutual funds based on the Fund Categories like Large cap, Diversified, Small & Mid-cap, Balanced and Tax saving (ELSS).
15 Top Performing Equity Mutual Fund SIPs in India
Click on the below image to open it in a new browser window.
Let us now look at some more details of each of the fund categories.
Top 3 Best performing SIP Large Cap Equity Mutual Funds :
There are roughly around 148 Large cap oriented Equity mutual fund schemes. The average returns of this fund category over a 5 year period is around 10.67% (as per valueresearchonline.com). UTI Equity Fund and ICICI Prudential Focused Bluechip funds have LOW risk grades. Also, the standard deviation for both of the funds are on the lower side.Both these funds have high Alpha (Alpha is a measure of performance on a risk-adjusted basis. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha).
The other nearest competitors for these funds are HDFC Top 200 (lost due to high Standard Deviation), Franklin India Blue chip Fund, Birla Sunlife Frontline Equity Fund and ICICI Top 100 fund.
3 Top Performing Diversified Equity Mutual Funds for SIP :
This fund category can also be called as Multi-cap or Large & Mid-cap oriented. The average returns of this fund category is around 13% for the last 5 year period. There are around 183 schemes in this category. Most of these funds have a slightly higher exposure to mid-cap companies. ICICI Prudential Dynamic has lower Standard deviation when compared to other two funds. HDFC Capital Builder fund has high Alpha.
The other good performing funds in this category are Franklin India High Growth Companies Fund and Mirae Asset India Opportunities Fund. Both these funds are relatively new entrants but are worth to track.
Top 3 Best Small & Mid-cap Mutual Funds for SIP :
There are around 120 schemes in this fund category. The average category returns are around 18% in the last 5 years. HDFC Mid-cap opportunities fund has LOW risk grade. Franklin India Smaller Companies Fund has very high Aplha. It has generated 21.88% (CAGR) returns in the last 10 years.
The other good funds in this category are IDFC Premier Equity Fund (Regular Plan), ICICI Prudential Value Discovery Fund and DSP Blackrock Micro Fund.
Top 3 Best Balanced (Equity oriented) Mutual Funds for SIP :
49 schemes are available in this category. The average category returns are around 12.75% in last 5 years. HDFC Balanced Fund has one of the lowest expense ratios. ICICI Prudential Balanced Fund (Regular Plan) has very low standard deviation, a very high Alpha & Sharpe ratio. The best alternate to HDFC balanced can be HDFC Children’s Gift Fund (Investment Plan).
(Visit my post for detailed analysis of ‘Top & Best Balanced Funds.”)
Top 3 Best Tax saving (ELSS) Mutual Funds for SIP :
We have 90 schemes in ELSS Fund category. 13% is the average category returns in 5 years. Franklin’s and ICICI’s ELSS plans have been consistently performing well. Franklin India Tax shield fund has one of the lowest standard deviations and also a very low BETA. Axis long term equity fund though a new entrant, has LOW risk grade with a very high ALPHA. Off-late Reliance Tax Saver Fund has been performing well but it has a very high SD (infact the highest SD in ELSS category).
(You may like reading my article on ELSS Funds – “Top 5 Tax Saver ELSS Mutual Funds to invest in 2015.”)
Some Important Points to ponder about Mutual Fund (SIP) Investments :
- I have tried to list some of the best performing equity mutual funds here. There is no necessity that you have to have a fund from each category to build a good investment portfolio. Kindly do not over clutter your portfolio. Select 2 to 3 good funds. That would be more beneficial
- Invest in Equity mutual funds if your time horizon is atleast 10 years. You can opt for Balanced funds if you time horizon is between 5 to 10 years. Invest for long term goals.
- Understand the risks associated with equity mutual funds. Kindly do not invest for quick gains or based on tips.
- Continuously track and monitor your mutual fund portfolio. If possible invest through online platforms.
- Do not time the market. Timing the market is almost impossible. Anytime is good time to invest in or to start SIPs.
- If your funds are generating negative returns, do not panic. Do not redeem or stop SIPs based on short term market movements. Continue your SIPs as long as possible. You may also consider increasing your SIP contribution amount on yearly basis. Small investments made at regular intervals can yield much better returns over a long period of time.
- It is advisable to build a mutual fund portfolio based on your Financial Goals. You may opt for variety of portfolios of mutual funds for different set of goals.
- Opt for Growth option of mutual fund schemes.
- If you are new to mutual fund investments then start with Balanced funds. (Visit my post on “Top Balanced Funds“)
- Kindly do not churn your portfolio at regular intervals
- Do not expect abnormal returns.
- Say NO to New Fund Offers (NFOs).
- Last but not the least, remember “Mutual Fund investments are subject to market risks. Past performance may or may not be sustained in future.”
You might have already invested in mutual funds. You may or may not find your funds in the above list of top performing Equity mutual fund SIPs. That does not mean your selection is wrong. Remember, we are selecting good funds out of hundreds of mutual funds schemes.
If you are a DIY (Do It Yourself) investor, trust your skills and conviction. Keep monitoring the performance of your investment portfolios. Please share your queries and comments. Cheers!
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(Image courtesy of Stuart Miles at FreeDigitalPhotos.net)
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Hi Sreekanth,
I was reading your article and you have suggested to have different portfolios for different goals. So, if i have goals like, vacation(3yrs), education(5yrs), higher education(8yrs), education for second chiled (12yrs), higher eduction for 2nd child(16yrs), home(10yrs), etc., does that mean I should have so many diffrents portfolios? Considering 2-3 funds per goal also, I may end up having more that 10 MFs.
Is that the way to go? Can you please elaborate on this? thanks.
As of now, I have just planned a SIP portfolio generalised one (with due consideration to immediate goal) and was planning to balance it as I near my goals. Please advice.
Dear Yavika,
You can invest in same funds with different SIP amounts as per the expected Corpus.
For example : Goals which are around 5 to 8 years can have similar portfolios and Goals that are 10+ years away can have same portfolio with different SIP amounts.
Kindly read: My portfolio & my MF picks.
Thank you very much… Where can I find the list of all your articles? I have noted down few (7-8) links from your blog pages and reading them. is there a list of all of them?
your articles are very informative and easy to understand!!! Thanks.
Dear Yavika ..You can find the list of latest 100 articles @ Archive page..
Dear Sreekanth,
My goal is to to have 1cr corpus till 2021~22.
In that ref I’m investing @45K/ m in below SIP’s.
Axis Midcap; HDFC Prudence; ICICI Pru. Value Discovery; SBI Pharma; SBI Magnum Midcap; SBI Magnum Global Tata balanced fund
Please advice.
Dear Dinesh,
If you invest Rs 45k per month and assuming the expected return on investment is 12%, then the projected accumulated corpus can be around Rs 36 Lakh in next 5 years.
If your investment horizon is around 5 years, you may re-consider your allocation of investible surplus to Mid-cap / sector based funds.
Kindly read:
Retirement planning goal calculator.
Best Equity funds 2017.
How to pick right mutual fund scheme?
MF portfolio overlap analysis tools.
Thanks Sreekanth,
I’m investing since last 2.25yrs with current portfolio value of 9.6L
In view of getting corpus of 1cr, please let me know.
1. How much monthly savings should be planned (currently 45k/m). I can stretch till max 75K/m from 2019. Also can wait another 2yrs from 2022 till 2024.
2. Can we expect better returns in upcoming year @15% in my portfolio funds.
3. Any suggestions on my fund selections. Axis Midcap, SBI magnum global not doing well now as I expected.
Can you please share your mail ID since I need some more suggestions from you as you are a experienced financial expert.
Regards,
Dear Dinesh,
Assuming monthly contribution of around Rs 75,000, at expected return of 10% in next 7 years, can get you a corpus of around Rs 1 Cr.
HDFC Prudence, TATA balanced fund, ICICI Value discover – You may continue.
Can consider Franklin Prima fund in place of the existing mid-cap funds.
Hi Sreekanth,
I am regular follower & reader of yours. Pls review my portfolio & advise if anything needs correction. I am 32 year. Investing in SIP for 20 years plan that is for long term (16000 per month). Started SIP since 1st April 2016.
My portfolio is –
ICICI Prudential Balanced Fund – Growth – 1000 /pm
TATA Balanced — 2000/pm
ICICI Prudential Value Discovery Fund – Growth– 2000/pm
Franklin India Prima Plus — 2000/pm
ICICI Prudential Dynamic Plan – Growth– 2000/pm
ICICI Prudential Focused Bluechip Equity Fund – Growth– 3000 /pm
Franklin India Smaller Companies–2000/pm
SBI Magnum Mid cap– 2000/pm
Abhishek
Dear Abhishek,
Individually all are decent funds. But you may try to avoid investing in funds within same fund category after checking overlap of their portfolios.
Kindly read:
MF Portfolio overlap analysis tools.
How to select right mutual fund scheme?
Sir,
I am 29 year. I want to invest in MF through SIP for 10 years (2000/month). This is totally new field for me. kindly suggest me good MF.
Prashant
Dear prashant ..You may consider funds like – HDFC Balanced fund, Birla Sun Life Frontline equity, Franklin Prima plus & UTI mid-cap fund.
ir,
i want to invest in mip scheme under sip method for 3 years. i want to opt for growth. what is your advice. is mip scemes lumpsum investment is better than sip mrthod?
pleaseadvice sir.
Dear BAPAIAH,
If you can be able to invest one-time lum sum amount, kindly go ahead.
Read: Best MIP MF plans @ http://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/
Dear Srikanth Reeddy nice information from you
pl provide the information on TAX rates for short term / long term MF
Dear Satyanarayana ..Kindly read this article : Mutual Fund Taxation rules.
Dear Srikanth Reeddy thank you for elaborate information MF TAX rates
Hi Sreekanth,
I am 25 year old and first time invest into SIP. I want to invest 7000/Month.
My broker suggest me to invest in HDFC BALANCED FUND – REGULAR PLAN – GROWTH (2000 INR/Month) & ICICI PRUDENTIAL LONG TERM EQUITY FUND – TAX SAVING – REGULAR PLAN – GROWTH (5000 INR/Month for 3 year lock period).
So please suggest me it is good investment plan or not ?
Regards,
Dhanraj
Dear Dhanrajsinh,
Both are decent ones. Kindly remain invested as long as you can and keep tracking their performances.
Read: How to select the right mutual fund scheme?
Good Evening Sir,
I am 41 yr of age . My portfolio is as under :
Birla Sun Life Tax Relief 96 (G) : 2,500 Per Month SIP (Started One Year Back)
HDFC Tax Saver Fund (G): 2,500 Per Month (Started One Year Back)
Franklin India High Growth Companies Fund : 3,000 Per Month (Started This Month).
As of now I am investing 8,000 p.m on SIP. I want to invest further amount on Mutual Funds and how much shall i invest on Mutual Funds Per Month and apart from that kindly suggest me any other Mutual Funds to invest which gives high returns in Future or shall i continue to invest in the above Mutual Funds itself only, apart from that i have One Son who is studying in 5th Class so that i can utilize the amount for his higher education in the Future.
Sir also kindly let me know how is the Scope of these above Mutual Funds in Future.
Regards
Dear NIRMAL,
Have you invested in these two ELSS funds for tax saving + wealth accumulation??
For a goal which is around 10 years from now, you may consider adding one Mid/Small cap fund.
Ex – HDFC mid-cap / UTI mid-cap
(or) Franklin Smaller companies fund/DSP micro cap.
Kindly read:
Kid’s Education goal planning & Calculator.
How to select right mutual fund scheme?
What are large/mid/small cap funds?
MF portfolio overlap analysis tools.
Thank You Sir for your Reply and will add up one more fund
Dear Sreekanth,
I am 47 year old NRI recently started following SIP with the help of your blog. I wish to add more money in my portfolio depends upon market conditions to start SWP after 5years for getting monthly income. Please suggest whether I should opt one particular fund or equally distribute to all four.
• Birla Sunlife Frontline Equity (Regular Growth) – 10000
• Tata Balanced Fund (Regular Growth) – 10000
• ICICI Pru Value Discovery (Regular Growth) – 15000
• UTI Midcap Fund (Regular Growth) – 15000
Regards,
Kumar
Dear KUMAR ..Good portfolio. You may make additional investments in the same funds. You may gradually allocate lesser amount to mid-cap fund if you need the corpus in next 5 years.
Found your site while searching for investment alternatives for mid risk range.
Stocks are high risk as I am not qualified and well informed at evaluating companies properly and systematically invest. FDs are safe but after TDS, barely earns enough to protect wealth against inflation. Other government schemes are process heavy and slow and also earns little more than direct FD.
Planning to read through all your articles in hope to get some valuable information. You are good at using easier method/language to explain things. Keep it up. Thanks!
What tool(site/portal) do you use to invest in MF? Do you do it on your own or through an agent?
Dear Akshay,
I am sure you would have identified your Financial goals & time-frame to achieve them, so accordingly you can select the suitable investment avenues.
Kindly read:
How to create a SOLID investment plan?
List of investment options!
I invest in MFs through icicidirect.com, Directly by visiting fund house websites and also through Fundsindia (this is for information purposes only and not any recommendation).
Firstly thanks a lot for putting together a great site with useful information in simple easy to understand language and also taking out the time to respond to each comment.
I just found out about mfuindia.com from your site and thought that would be the best way to invest, specially for a person who is well-versed with the various options and so doesn’t need any advice.
Any reason why you haven’t made the switch yet?
Thanks,
Amit
Dear A N …May I know what ‘SWITCH’ are you referring to?
Thank you for your appreciation!
Switch to using mfuindia.com for your transactions spread across “I invest in MFs through icicidirect.com, Directly by visiting fund house websites and also through Fundsindia ”
Regards,
Amit
Dear A N,
No specific reason. I am comfortable investing through the said modes/platforms.
MFU, particularly is a good platform, and they are coming out of initial set-up issues (teething problems). I have to look it very soon.
Cool, wanted to know if you’ve had or heard about any issues with it.
I am looking for a good option to buy direct plans, will most probably go with it…thanks!
Dear Mr. Reddy
I am a ardent follower of your blog.
I want to invest 4 lacs lumpsum amount. please suggest where and in which way to invest ?
It is better if i would invest in lumpsum amount in short term debt fund then in balanced fund through STP ?Please suggest. Wait for your prompt reply…
Dear abhinav ..If your investment horizon is atleast >3 years then you may consider the mentioned investment plan (STP).
Read:
Best Balanced funds.
How to select the right mutual fund scheme based on measures of Volatility?
Sir good evening ,
kindly suggest me to start new sip for the amount 15000/- per month .
iam new in sip and shares.please suggest me where I invest . Shall I invest 15000/- one fund only or many funds . My age is 35 yrs . I want to invest 15 yrs long term .
sir ,
I want to invest lampsum amount 500000 lakhs also . So plz suggest where I invest .
Dear Abdul,
You may consider investing in a Diversified equity fund + mid-cap fund + Balanced fund.
Ex : Franklin Prima plus + HDFC Mid-cap fund + TATA balanced fund.
For lump sum you may invest in balanced fund through STP (systematic transfer plan).
Ex – From a debt fund to a balanced fund from the same fund house.
Read:
How to select the right mutual fund scheme based on Risk ratios?
My portfolio picks!
MF portfolio overlap analysis tools.
Hi Sreekanth,
Hope you are doing good.
I am a regular reader of your blog and I have taken your suggestion many a times.
I have a query regd 1 time SIP investment I am planning to make.
I have been investing in the following SIPs since 3 months now:
*ICICI Prudential Value Discovery Fund G 3000
*HDFC balanced Fund G3000
*UTI Mid cap Fund G- 2000
*Franklin India Prima Plus G- 2000
Now I want to make a 1 time investment of 25K in mutual funds. It will be a long term investment(15 years).
Please suggest if I should invest in one of the funds I am already holding or invest in a new fund?
If you suggest adding to one of the funds I am already holding, will UTI Mid cap Fund be a wise choice?
Please suggest.
Best Regards
Radhika
Dear Radhika,..Why not in all the four funds 🙂 ?
Hi Sreekanth,
Thanks for your response.
Do you mean I should divide the 25K amongst all the 4 funds?
Please let me know the procedure also for the same.
Thanks in advance.
Radhika
Dear Radhika ..Yes, Procedure?? You mean ratio of allocation?
If so, may be you can allocate a higher % to Discovery fund & Mid-cap fund.
Thanks again Sreekanth!
Say I have decided to invest as follows as per your suggestion:
*ICICI Prudential Value Discovery Fund G – 8000
*HDFC balanced Fund G-5000
*UTI Mid cap Fund G- 8000
*Franklin India Prima Plus G- 4000
As I already have SIPs for the 4 funds, I wanted to know how to add additional amount to the existing funds. Is the procedure same as investing again afresh in the 4 MFs or is there any other way to add units to the accumulated units.
Best Regards
Radhika
Dear Radhika ..I am not sure which online platform you are using. You can select the existing Folio Numbers and make additional investments.
Hi Sreekanth,
Thanks for the response. It was very helpful.
Best Regards
Radhika
Hi Sreekanth,
Wondefully written blog!!
I am 31 yr of age and new to MF investing. risk profile: moderate/aggressive.
My portfolio is as under :
Axis Long Term Equity-G: 45000 Rs. Lumpsum
HDFC Balanced-G: 1,95,000 Lupsump
UTI Transportation and Logistics-G: 2,60,000 Lumpsum
HDFC Mid-Cap Opportunities- G: 5000 SIP
ICICI Pru Focused Bluechip Equity-G: 3000 SIP
DSPBR Micro Cap Reg-G: 5000 SIP
Franklin India High Grth Companies-D: 2000 SIP
I am investing 15000 p.m on SIP. I want to invest another 5000 p.m on equity MF kindly suggest suitable. Would you suggest any deletion in existing portfolio. (investment horizon7-10 yrs.)
For all lump sump my investment horizon is 3 yrs. Is my choices for these investment are correct (specially UTI transportation and logisitics).
looking forward for your suggestion.
Dear Vivek,
Additional investment : You may consider investing in existing funds..
UTI fund is a sector specific fund, if you understand and follow this sector closely then you may remain invested. Personally, I do not invest in sector or thematic based funds.
Kindly read:
MF portfolio overlap analysis tool.
MF schemes & Risk ratios.
Sir,
I am new to SIP and shares. I want to invest 10000 rupees per month.Please tell me whether to invest in different funds ( around 10) or invest in 3 or 4 funds is better?. All funds are offering direct plans or not?. If i am checking top performers in internet, some funds are differing for one site to another site. Please suggest me correct website for checking top performers?
Regards
satya
Dear satya,
You can visit Valuresearchonline or moneycontrol.
Kindly read:
Best Equity funds for 2016 – 2017.
How to select the best mutual fund scheme?
MF portfolio overlap analysis tool.
My MF portfolio.
Sir,
Kindly Suggest me start new sip
we have already 1 sip idfc premiem equity growth fund last 5 years
Dear Atul ..May I know your investment time-frame?
Read:
Best Equity funds 2016.
How to select best MF scheme?
Hi Sir, i have a 10 month old daughter and worried about her education and marriage. where i should invest money to cater her education needs and marriage needs.
my frnd suggest me to go with sukanya scheme for her marriage and SIP for her education need. if SIP is good then which fund should i take.
please reply.
Dear sachiienjaain,
Suggest you to kindly first calculate the required amount of savings to reach the goal target values. If you are falling short of the required savings, you may gradually increase the contributions/SIP amounts so that you can achieve the goal amounts.
Read:
How to calculate the Future Value of your investments?
Kid’s education goal planning and calculator.
Sukanya scheme is a decent option : Read My review..
Do you have sufficient life insurance and health insurance coverage?
Read: List of articles on key aspects of Personal Financial Planning.
sir,
Please give your advice on POSTAL LIFE INSURANCE [ PLI] MERITS AND DEMERITS is it a good option.
bhanudas gaonkar
Dear bhanudas,
If your requirement is life cover (insurance cover), kindly buy a Term insurance plan, which is not offered by Post office. The plans offered by PLI are traditional plans only which can be avoided.
Read:
If life is unpredictable, insurance cant be optional.
Traditional life insurance plans – a terrible investment option.
Best term insurance plans.
Hi,
How is the performance of below funds ? Is it OK for long term SIP ?
UTI – Transportation & logistic fund
UTI – MNC fund
UTI – Midcap fund
Regards,
Kumar
Dear Kumar ..May I know your investment objective & time-frame?
Read: Best Funds 2016.
Hi,
I am 47 year old NRI , wish to invest in SIP for 10 years to achieve retirement corpus.
Dear KUMAR,
Kindly go through below articles;
Retirement planning goal calculator.
List of best investment options.
Fatca Compliance & NRI investments.
Hi.. I am Chirag,age 23 years. I want to invest 3-4K in 3 different funds through SIP (for a beginning). I will increase investments in coming years though. Of these 2 mutual funds, I want one of them for short term(5 years) with 12-14% return. Other one for long term(>10 years).
I will buy new long term funds in few years. Which 3 funds should i buy as said earlier?
Dear Chirag,
For 5 year time-frame, you may consider a balanced fund ; Ex – TATA Balanced fund / HDFC balanced fund.
Long term > 10 years, you may consider one diversified equity fund + one mid-cap fund. Ex – ICICI Value discovery fund & HDFC Mid-cap opp fund.
Read:
Best Equity funds 2016.
How to select the best mutual fund based risk ratios.
MF portfolio overlap analysis tools.
Hi sir… I am ramesh.. age-28..
I am new to mutual funds …which type of MF (SIP) I should take for 30 years….PLZ INFORM SIR ….and also how much invest for monthly..(fund name.)..my target is like a (needi)
Dear ramesh,
You may kindly start with a balanced fund. Ex – HDFC Balanced fund / TATA balanced fund.
Read: Best Balanced mutual funds.
I want to invest lum sum 2,lac and sip of 15000 to 20000. My term will be 5 to 10 years please suggest.
Dear varinder,
Lump sum can be invested in a balanced fund.
For SIPs you may consider one Diversified equity fund and one mid-cap fund.
Kindly read:
Best Balanced funds.
Best Equity funds 2016.
I want to invest for 20-25 years, please suggest me best Equity mutual fund, my goal to make more then 1cr for children education and house etc. Please let me know the parameters i should consider. what should i do, if fund doesn’t perform well in the middle.
is it better to choose the very older fund whose inception is early 90s?
i can invest 5k per month through SIP
Dear Sovit,
You may consider investing in One equity diversified fund like Franklin Prima plus and in one Mid-cap or small cap fund.
Read:
Kid’s education goal planning & calculator.
Best Equity funds 2016.
List of best investment options.
Thanks a lot 🙂
Hi, thanks for the post. I want to invest around 3k to 5k in SIP plans which can also helps me in TAX saving. What will be maximum duration I can incest in SIP for any plan ? I wish to invest in SIP for atleat 15 years to get max benefir or even more than that.
Dear Manish,
You may consider investing in an ELSS fund (tax saving) & in one mid/small cap fund.
Ex : Axis Long term equity fund (Tax saving) & Franklin Smaller companies fund.
Read:
Best Tax Saving mutual funds.
Best Equity funds 2016.
List of best investment options.
hi , i want to invest in SIP for 3 year. 5000 in 3 different SIP . kindly suggest me for the same…
Dear Mahendra..You may consider a balanced fund.
Read: Best Balanced funds .
Last year I invested 1k on idbi equity advantage growth plan. now im going to invested near 5k on sip.which sip suitable for me..
Dear sukhen,
Before shortlising any investment avenue, kindly identify your financial goal, objective and time-horizon.
May I know your time-frame for this investment?
Kindly read below articles;
How to create a solid Investment Plan?
Best Equity funds 2016.
What are Large/Mid/Small-cap Funds?
Sorry I forgot to ask another question, Is it necessary to remain invested once started? I invested 30K in reliance last year, do I need to keep investing in it every year?
Dear Priya..No its not necessary. But your investment is locked for 3 years (in ELSS funds).
Hi Sreekanth,
I am also new to MFs and I started last year with Reliance ELSS and invested 30K lumpsum for tax saving purpose. This year looking at the current best performing portfolios I invested 30K lumpsum again in Axis LT equity fund. I still wanted to invest 50K in nps to save tax but looked at various articles on not going that route and instead invest in mutual funds. Can you please advise me which fund I should invest in, I am not looking at tax saving elss only any best consistent mutual fund with moderate to low risk for 50, 0000 lumpsum investment or if you think SIP is better I will do that.
Thanks,
Priya
Dear Priya..Let me know your investment horizon?
You may consider investing in a balanced fund.
Read:
Best Balanced funds.
I am considering mfs instead of nps after reading lot of negative reviews about nps.
I want to invest 50k every year for next 5-10 years. After going through your blog’s I shortlisted icici discovery & Franklin small companies fund. But please advise me if that’s not a right choice.
Dear Rajni,
In case if your investment horizon is around 5 years then you may add a balanced fund by reducing the allocation to small cap fund.
Hi…
I want to invest 5k pm for long time through sip say 15 to 20 years…
I have selected 3 funds
I.e. 1. Mirae Asset Emerging Bluechip
2. Franklin Smaller Companies
3. DSP BR Microcap
Please suggest another 2 funds that’s suits with above funds.
Want to invest 1k per fund…..
I think ur choice is aggressive. Tone it down with a balanced/long term funds like blue chips & balanced ones.
Dear Rajib,
Individually, all the three shortlisted funds are good ones, but kindly check their portfolio overlap percentages.
Not advisable to invest in too many funds and that too from the same fund category though you have a long-term view.
Read:
Mf portfolio overlap analysis tools.
Best Equity funds 2016.
hello sreekanth
as per our last conversation i would like to invest in below sip i want your golden advise for the same
1.Franklin India High Growth Companies Fund
2.Franklin India Smaller Companies Fund
3.uti mid cap fund
4.HDFC Small and Mid Cap Fund
5.mirae emerging blue chip fund
my invest amount is Rs.1000k to 3000k monthly,currently i m 24 years
& can u tell me the detail procedure (by link) to online invest in SIP so that no broker is involved.
plus i want to study further (in taxation stream) so is there any investment plan to set-off my education expenses that i want bear on my own.one more thing do u have any short term plan of investment.
i am waiting for your response.
Dear Tejas,
You have two mid-cap oriented and two small cap oriented funds. So, kindly check for portfolio overlap on higher side if any among these funds.
Read: MF portfolio overlap analysis tools.
You can invest in Direct plans for better returns.
Read:
What are Direct Plans of Mutual Funds?
MF Utility Platform for direct plans.
Direct plans Vs Regular plans – Returns comparison.
Are you planning to take Education loan?
THANK U SREEKANTH FOR YOUR ADVISE THIS ADD MORE KNOWLEDGE TO MY MUTUAL FUND INVESTMENT (SIP),AND I AM NOT TAKING ANY EDUCATIONAL LOAN.
Dear sree,
Want to go for long term sip investment with high risk-
1-want to invest in all field like:- IT, medical,infra etc.
2- want to go for more than 20 year.
3-investment amount will be 3000PM
4-which one will be good equity sip mf or diversified sip mf.
5- want liquidity also in SIP.
Thanks for your great advice.
Vimal
Dear Vimal,
All open-ended MF schemes have high liquidity..
You may consider couple of funds , one mid-cap & one small cap. Ex – Mirae Asset Emerging Bluechip Fund & DSP Micro fund.
Read:
Best Equity funds 2016.
What are Large/Mid/Small cap funds?
Hi Sreekanth,
I would like to invest in EMF SIPs. As a beginner to this I have some basic doubts, might be stupid doubts. Based on my understanding I will get more profit if I invest for long years, like 10 years or more . How ever in the list you showed the SIP return for 3 years is larger, compared to 5 and 10 years. I couldn’t understand it.
Ajay
Dear Ajay,
Investing for longer-period or shorter-period in Equity oriented products does not GUARANTEE you higher returns, the point we need to understand is given the fact that equity products have high risk profile, longer the time-frame the higher the probability of getting better returns.
If equity markets perform well say in next 1 year giving abnormal returns, then if you compare next 1 year returns with say previous 2 year returns then you may find that in short-term the returns are higher. So its all about volatility & probability.
Hi Sreekatnh,
I am Dipankar ,25 yrs old from chennai. I have been investing in SIP from last 1 year.
Below are the mutual funds currently running and I am ready to take up 4 more MFs this year with Rs 1000/- per month per MF. Please let me know on which MFs I should invest for next 10 years with tax benefit as well.
1) Axis Long term Eqity fund-Growth-1000/-
2) Mirae Asset emerging Blue chip fund-Regular plan growth-1000/-
3) Reliance equity opportunities fund- 1000/-
4) Sundaram select mid capregular plan growth-1000/-
Dear Dipankar,
I believe that investing in too many funds might not be really beneficial.
Also, there are better funds than Reliance equity oppor fund. Since you have sundaram fund which is again a mid-cap fund you can invest in this fund instead of reliance fund.
For tax saving purposes, you can make additional investments in Axis LTE fund itself.
Read:
Best Equity funds 2016.
What are large/mid/small cap funds?
My MF portfolio picks.
Hi Sreekanth,
Highly informative blog. I am 25 year old and want to do short term investment through SIP. Presently I am earning 30,000 per month and I am not investing in LIC or any SIPs . Can You suggest few SIPs with 3-5 years of investment that offers low risk and provide tax saving as well along with high returns.
Thanks
Neha
Dear Neha,
Kindly note that if you are expecting higher returns you got to be ready for volatility (risk).
You may consider investing in ELSS funds for tax saving purposes, but kindly note that these are equity oriented funds, with 3 year lock-in period. Units allotted under each SIP will be locked for 3 years. You may also have to remain invested for atleast 5 years or so.
Kindly read:
Best ELSS Funds 2016.
List of best investment options.
Hello sir …I am mohammed govt employee ..Sir you are providing excellent guidance for all types of investors especially for beginners like me .Sir I want your guidance for following
1.Recently I started SIP of 2000₹ in HDFC MID CAP OPP. my uncle suggested me.What is your views about it.
2.Please suggest me 2 more funds.I want to invest 2000-2000 for each.
Dear Mohammed,
1 & 2 – It is a decent fund. But may I know your investment horizon?
Thank you for your appreciation.
Read:
Best Equity funds 2016.
My MF portfolio picks.
MF portfolio overlap analysis tools.
Dear shrikanth
I have 50lacs as my Vrs corpus which I want to invest in only equity mutual funds for 7 years for wealth creation. At present have sip 2000 each in following funds .
1) SBI blue chip
2) Hdfc Midcap opportunity
3)Icicii focused blue chip
4)Icici value discovery
Pls advise can I invest corpus in lumsum in above funds or you want suggest some more funds
Regards
Dear nitin,
All the funds are good ones and portfolio looks fine.
Are you dependent on the income/gains generated by this corpus after 7 years? (or) do you have any other source(s) of income?
Hi Sreekanth,
Happy to interact with you again, small inquiry about SIP.
I have been investing through SIP HDFC TOP 200 G, monthly amount of Rs. 2000/- for last 3.6 years.
present statistics: my total investment: 86,000/-
present value: 1,01,130/-
my requests:
1. i have studied that this fund is under performing for last couple of months
2. can i wait some more time by investing in the same
3. can i change the fund. if so, which fund have to choose and what will be my benefits
4. or can i stop investing in this, and let the amount retained and will withdraw when fund is performing well
please help in this regard,
Mahesh
Dear Mahesh,
1 & 2 – This fund has been under-performing its peers for more than couple of months. But we can give it some more time. You may consider to discontinue future SIPs and hold on to the existing units (as of now).
3 & 4 – May I know your investment objective(s) & horizon??
Hi,
I am planning to start investment in Mutual Funds. Monthly, I can invest INR 20,000 through SIP. My choice of investment in the following funds and my investment horizon will be 6 Years
1. SBI Blue Chip – INR 12000
2. Tata Balanced Fund-INR-5000
3. L&T Infra- INR 3000
Suggest me.
Dear Namachivayam,
Instead of LT fund you may consider one diversified equity fund. Ex – Franklin Prima plus.
Read: Best Equity funds 2016.
Hi shreekanth,
I wanted to analyze my sip portfolio, pls help…
M having following SIPs…
SBI Magnum mid cap fund 22k, Reliance small cap fund 5k, Axis mid cap 1k, L&T business cycle fund 2k, uti transportation &logistics fund 2k, HDFC mid cap opp 2k , ICICI Prudential value discovery 2k, SBI pharma 2k,SBI small and mid cap 2 k, DSP be micro cap fund 3k,mirae asset bluchip emerging fund 3k.
Pls guide…
Dear Amol,
Too many funds. Suggest you to trim down your portfolio. Multiple Funds within the same fund category can be avoided.
Kindly read:
Best Equity funds.
MF portfolio overlap analysis tools.
What are Large/Mid/Small cap funds?
Hi Sreekanth,
Happy to interact with you again, small inquiry about SIP.
I have been investing through SIP HDFC TOP 200 G, monthly amount of Rs. 2000/- for last 3.6 years.
present statistics: my total investment: 86,000/-
present value: 1,01,130/-
my requests:
1. i have studied that this fund is under performing for last couple of months
2. can i wait some more time by investing in the same
3. can i change the fund. if so, which fund have to choose and what will be my benefits
4. or can i stop investing in this, and let the amount retained and will withdraw when fund is performing well
please help in this regard,
Mahesh
Dear Shreekant sir,
I am 30 years old i have one son 1 year old please advice me which SIT is best for 20 years for my son , education and marriage .with maximum beneficent and low tax’s and maximum return
Dear Syed,
You may consider investing in Diversified equity fund & mid/small cap funds.
Kindly go through below articles;
Best Equity funds 2016.
List of best investment options.
Kid’s Education goal calculator.
Blocks of financial planning pyramid.
Hi
I am 32 years old only earning member of my family consisting of my parents, spouse and a 4 year boy.
I invest 25000 every month in MF and the SIPs are as follows:
1) Axis Long Term Equity Fund Direct Growth – 6500
2) Birla Sun Life Frontline Equity Fund Direct Growth – 6500
3) DSP – BR Micro Cap Fund RP Direct Growth – 3000
4) Can Robeco Emerging Equities Direct Growth – 3000
5) IDFC Premier Equity Fund Regular Growth – 3000
6) SBI Paharma Direct Growth – 1500
7) Birla Sun Life India GenNext Fund Direct Growth – 1500
I have RD of 20000 pm @ 9% hence no Balanced or debt fund. Please consider tax rate at zero % for this analysis.
Please advice on fund selection.
My investment horizon is 15 years for 2 goals (a) my sons education fund and (b) my retirement kitty.
Looking forward to your kind advice.
Thanks and Regards
Dear Sandip,
May I know the reason for choosing RD? and what is RD tenure?
Kindly read:
Why one should avoid saving in RDs/FDs for longer period?
What is Real Rate of Return?
Individually if we look at your MF schemes they look good. But you can trim down your portfolio a bit.
Read:
MF portfolio overlap analysis tools.
Retirement planning goal calculator.
Kid’s education planning goal calculator.
Hi,
First of all I would like to thank you for taking time to address my query.
My RDs are for 10 years basically to lock in good rates before they goes down. There is no tax incidence hence the post tax return is 9% which I felt is more or less at par with debt funds but with better certainty.
I went though the articles mentioned above but it would really helpful if you can help me make a better portfolio. I have around 6 lakhs sitting with me for quite some time which I am not able to invest as I am not sure of my fund mix.
Looking forward to hear from your soon.
Thanks
Dear Sandip,
But the interest income on RDs is taxable, right?
As you are planning for long-term goals, you can consider continuing your exiting funds.
Kindly use the calculators provided in the links and arrive at approx required amount of savings and then you may prioritize your investment decisions.
By the by are you adequately insured (life insurance & health insurance)?
The RDs are in the name of my parents who have only interest income from FDs which is below taxable limit hence the RD interest also becomes tax free. Thus the effective return is 9%.
Further I have 6 lakh to invest now, if the fund selection is OK, shall I go ahead and invest these now in addition to my SIPs.
Also, do you suggest investing in silver from a long term perspective.
Regards
Sandip
Dear Sandip,
You may consider below funds (part of your existing portfolio) for investing the lump sum amount. Assuming that these are for long-term..
1) Axis Long Term Equity Fund Direct Growth – 6500
2) Birla Sun Life Frontline Equity Fund Direct Growth – 6500
3) DSP – BR Micro Cap Fund RP Direct Growth – 3000
Historically, Gold / silver can generate returns which are on par with inflation rates. Personally, I do not invest in Gold/Silver for long-term investment needs.
Kindly read: Gold – Is it still the safest & risk-free investment?
Thanks a lot Sreekant
It was great to discuss things with you and receive important insights.
Your blog is really helpful.
Regards
Sandip
Sir,
Thanks for your article and blog. I have learned basics of investment from this blog.
I am 35 years old and NRI from Kuwait. I have selected some funds and created two portfolios of Rs. 10000 each (two goals) for 15 years time horizon.I have enough insurance and a rd of rs. 5000 monthly. Kindly go through the portfolios and give me a opinion about these portfolio and allocation.
Portfolio 1.
a.SBI Bluechip Direct – Growth – 20%
b.ICICI Value discovery Direct Growth-25%
c. UTI mid cap Direct – Growth -15%
d. Franklin India Smaller cosDirect – Growth-15%
e. L&T India Prudence Direct – Growth-25%
and Portfolio 2.
a.Birla SL Frontline Equity Direct – Growth-20%
b.Franklin India Prima plus Direct – Growth-25%
c. HDFC mid-cap Opportunities Direct – Growth 15%
d.Reliance Small Direct – Growth-15%
e.TATA Balanced Direct – Growth-25%
Thanking You
John
Dear John,
May I know the reason for investing in monthly RD? any specific goal?
Portfolios look fine.
Sir,
Thanks for your reply.RD only means of diversification of investment. So I can go ahead with this portfolios?
Thanks for your advice.
Dear John,
You may accumulat Emergency Fund of say 6 to 12 times of your monthly living expenses through RD.
Beyond which you can opt for better investment avenues (may be MFs) instead of RD.
Kindly read:
Why it is better to avoid investing in RDs/FDs for longer period?
Hello Mr. Sreekanth Reddy,
I am 26 year old and new i got married just, I want to do SIP for 1000 rs for 5 year. Could you please suggest in which organization or platform I have to do SIP.
Dear Vinod,
You may consider investing in a balanced fund like HDFC Balanced fund.
You can use MF Utility platform to invest or through any MF agent or any distribution platform.
Read:
MF Utility online platform.
How to get ekyc done?
Best Balanced funds.
Hello Sreekanth Reddy,
Thanks a lot for your valuable suggestions.
Now I just want to know about what is your opinion to invest in Mutual Funds or SIPs through FundsIndia organization.
Also let me know other organization or platform where I can do invest in MF or SIP.
Once again Thanks for valuable support.
Regards,
Vinod
Dear Vinod,
Platforms like Fundsindia may not charge you any Transaction fees from their clients and they get commission from the fund houses. Its a decent platform but kindly note that you may not be able to invest in Direct plans of MF schemes.
Personally, I invest through Fundsindia. Kindly take consider this as a suggestion only.
Hey Sreekanth,
Really impressed with your blog. Even I would like to seek your advice as I am so confused with the quality of my investment and their return.
I am 35 yrs, I plan to invest 5000 per month in SIP with a long term perspective. My questions are:
*Should I stop any of the below investments and allocate that as well to SIP?
*What SIP tenure should be apt for me?
*Which funds would you recommend and for what duration?
Any suggestion from your side would be very helpful.
Below are my current investment.
2016 VPF contribution: 12000/month
RD with SBI: 11000/month for 7 yrs at 9% matures in 2021
RD with SBI: 2500/month for 10 yrs at 9.25% matures in 2021
RD with ICICI: 10000/month for 1.5 yrs at 8.25% matures in 2016
LIC-Jeevan anand 149: Premium 1 Lac/year for 17 yrs (matures in 2031): Sum Assured: Rs 15 Lac
LIC Plan 14: Premium 20000/year for 21 yrs(matures in 2026).Sum Assured: Rs 4.3 Lac
Thanks,
Lucy.
Dear Lucy,
1 – Any specific investment objective(s) for creating RDs?
Kindly read: Why one should avoid investing in FDs/RDs for longer period?
2 – Lic Jeevan Anand : If you have paid 3 policy premiums, you can surrender the policy else you can just discontinue paying the premiums (let the policy lapse).
3 – LIC Plan 14 is an Endowment plan. You may make it a PAID-UP policy.
Kindly read:
How to get rid of unwanted life insurance policy?
Term insurance Vs Traditional plans.
4 – If you have dependents and/or have financial liabilities/obligations, you can buy a Term insurance plan with adequate life cover before discontinuing the above two life insurance policies.
Read:
If life is unpredictable, insurance can’t be optional.
Best Term insurance plans.
5 – The SIP duration, amount & exact Schemes are dependent on your Financial Goal(s). May I know your financial goal(s0.
Thanks Sreekanth for your response. Answer to your questions are as below:
1 Objective to open RDs was to grab high bank interest rate and save maximum I can, also was not very confident about SIP at that point of time. But I am ready to close these based on your advice.
2. I do plan to take term insurance plan after reading your article.
3. Goal: As me and my husband plan to expand our family I want to have a bright and secure future both for our kids and our Retirement Corpus.
4. Do you think I should continue with my VPF contribution?
5. Please advice where should I invest and how much for high Retirement Corpus and for what duration?
Thanks,
Lucy.
Dear Lucy,
1 – You can accumulate around 6 to 12 times of your monthly living expenses in FDs/RDs towards ‘Emergency Fund’ and anything beyong that amount its may not be a prudent thing to invest in FDs/RDs. You may also consider Liquid mutual funds for contingency fund.
Read:
Types of Debt mutual funds.
Best Debt Mutual Funds.
2 – Kindly take a term plan at the earliest.
3 – Read:
Kid’s Education goal & calculator.
Retirement planning goal & calculator.
4 – You may switch VPF to equity mutual funds for next 5 to 10 years. You may consider a balanced fund instead.
Read: Top balanced funds.
5 – Duration: You may have to decide (but atleast 10 years or so). You may invest in a Diversified equity fund + Balanced fund + Mid-cap oriented fund till atleast 5 years before your planned retirement age. Last few years before the retirement kicks in, you can switch to safe investment avenues (if required).
Read:
Best Equity funds 2016.
List of Best Investment options.
Hi Sreekanth ,
I wish to invest Rs.5000/- per month.
So can you suggest which SIPs to invest in 2016-2017.
Regards,
Ram
Dear Ram ..Kindly read: Best Equity Funds for 2016.
Dear Sreekanth,
Iam 50 years old ..I have some fixed deposits as savings but no other investment schemes.Now i would like to invest in SIP for a period of 5 years.I can invest about Rs 10000/month.Kindly advice ,best funds suitable for me.
Dear Bennyjose,
Kindly consider investing in balanced funds.
Read:
Best balanced funds.
MF portfolio overlap checking tools.
List of best investment options.
Hi,
Sreekanth thanks a lot for such a valuable portal for small investors like us . Can you please recommend a fund which is least risky with no lock in period and low exit load for the period of 1 year . I want to start an SIP for 1 year .
Thanks & Regards,
Pankaj
Dear Pankaj,
If your investment horizon is less than 1 year, do not invest in equity mutual funds.
Suggest you to read :
Best Debt Funds.
List of best investment options.
sir, i am willing to invest rs.500 p.m initially for 3 years. and then will increase it gradually for a period of 10 years.
please suggest best return giving sip plans to invest in for rs.500 p.m
Dear somya..You may start with HDFC balanced fund.
Hello Shree,
I have started investing in HDFC Balanced fund and Birla MNC funds both 5000 every month since September 2015. But as per my current situation I would be able to invest only till May 2017. So can I reduce the instalment amount to 500 for the next two years. And would that be beneficial?
Dear Jithya..Do you need this money in 2017? If so, suggest you to switch to safer investment avenues.
Read : List of best investment options.
Hi shree,
I won’t be needing it in 2017. But I’ll be investing 500 bucks from that year on.
Dear Jithya..You may do so. Both are decent funds.
Dear Shreekant,
Is it possible to withdraw part of PF and invest in SIP? I am looking to invest 2500 PM for 10 years and one time if PF can be withdrawn.
Please suggest best SIP option to invest.
Dear amit,
If you are employed you can withdraw your PF (partial withdrawal) for certain purposes only.
Read: EPF partial withdrawal rules.
Also, read : Best Equity funds for SIP in 2016.
Dear Sir, I am willing to invest in mural funds but confuse which is the best for starting. Willing to invest 2000/- p.m, long term basis .income 19000/- p.m . insurance family coverage 300000/- p.a , age 30yrs. Please advice.
Dear Tuku,
Is Rs 3 Lakh one a life insurance policy or health insurance policy?
You may start with a balanced fund. Ex : HDFC Balanced fund.
Read : Best Balanced funds.
Hi Sreekanth,
I am planning to invest on ELSS, to start with I would like to contribute 5000 INR initially and look to increase depending on its performance. Below are some of the questions I have:
1. Which among the above ELSS would you recommend (In terms of reliability)?
2. What is the term I should consider for better returns?
3. What are the tax implications If at all I discontinue this investment?
4. Can I increase the principle amount mid of the term?
Look forward for your response.
Regards,
Rakshith
Dear Rakshith,
1 – Kindly read : Best ELSS Tax saving mutual funds for 2016.. My picks are : Franklin Taxshield / Axis LTE funds.
2 – As long as possible. May I know your financial goal(s).
3 – Read : Mutual funds taxation rules..
4 – Yes.
Sir i puchased HDFC pro life plus in Feb 2015 with Rs 3333.00 monthly amount for 20 years. But now my total fund value is only Rs 32000.00 ( Rs 39996.00 investment done till date), i purchased this product so as to get handsome monthly pension after 20 years by depositing the corpus amount in some Annuity plan. now please guide me if i should discontinur this plan and invest in some SIP as now my fund values is also less than my investment.
Also in Sips their is not/less deductions/charges so fund value will be more .
Also mu main aim is Investment and not insurance cover.
Please guide me if i should withdraw mu money from this HDFC Plan (also consider the loss of my surrendering the policy charges)
Dear sourabh,
Kindly note that these are your long-term investments.
But I prefer to invest in equity mutual funds instead of pension policies. Do note that the maturity proceeds are taxable and annuity income is also taxable (as per current tax laws).
But surrendering your pension policy can be a costly affair.
Surrendering the pension plan before maturity has serious tax implications. First of all, the premiums that you have claimed as part of deduction under section 80C will be reversed and you will have to pay tax on it. Secondly, the entire surrender value will be added to your income and you will have to pay tax on it according to your tax slab. According to latest rules of IRDA, 2/3rd of the surrender value received should be used to purchase annuity plan.
If your are not satisfied with its performance, you may just discontinue your policy. Do check this with your agent too.
dont worry
you started a sip at a wrong time
but holding it for long term (more than 8 years) nullifies the negative effect of investing at wrong time
so continue with your plans for 20 years
contact me for completely free advice
trust me
call me +91 8979082572
Dear manoj..May I know as to Why do you think ‘its a wrong time’ to invest??
Arre Manoj,
Why is the timing WRONG?
Whats your logic?
Can you please throw light on this???
Hello srikanth.Plz suggest which is best for long term savings in mutual funds with moderate risk
Dear Siba..Equity diversified fund & Balanced fund can be considered.
Read : Best mutual funds for 2016.
Hello Sreekanth,
Would like to invest a lumpsum of 1.5 lacs with a horizon of 3 1/2 yrs the same being required for my kid’s ceremony.
Looking at a return of around 12 to 15 % and hence a amount of around 2.1 to 2.3 lacs on maturity.
Considering the current volatility in the mkt which would be a good mf to invest in considering my investment horizon.
Thank you .
Would it be advisable to invest in the balanced fund category say a Tata balanced fund (sip in this fund already ongoing with a 10-15 yr horizon) or do you suggest any other fund category.
Dear Roy,
12 to 15% returns may or may not be achieved within a 3 year period.
So, suggest you to invest in a combination of products, preferably FD + MF MIP Growth option + a small Portion in a balanced fund.
Read:
Best balanced funds.
Best MIPs .
List of Best Investment options.
Thank you for your guidance Sreekanth and sincerely appreciate your quick response.Was thinking of 2 options i.e.
OPTION 1 :
Birla Sunlife MIP II wealth 25 (growth plan-Direct)- 75 k
Tata Balanced Fund (Growth plan-direct)- 75 k
OPTION 2:
FD -50 k (are you referring to a bank FD ?)
Birla Sunlife MIP II wealth 25 (growth plan-Direct)- 50 k
Tata Balanced Fund (Growth plan-direct)- 50 k
Please suggest as to which would be more suitable.
Thank you
Roy
Dear Roy,
Option 2 looks fine. You may consider that. Yup, its bank FD.
Thank you Sreekanth.
Hi srikanth
Very informative site.I am a house wife. My kid is 5 year 6 month old. I want to invest in funds for my child education.
I can invest 8 k per month.kindly suggest a portfolio of mixed funds.or suggest a plan how can I save money for child education.
Dear Romi,
If you are an earning member of your family, kindly check if you have adequate life insurance cover & health insurance cover.
You may pick 2 to 4 funds from different fund categories Diversified/balanced/mid-cap/large cap.
For your kid’s higher education goal, which is around 10 to 12 years from now, you may invest a higher portion of your investible surplus in diversified fund & mid-cap fund for next say 5 years or so.
Fund suggestions : Franklin Prima plus, HDFC Mid-cap opportunities fund & TATA balanced fund.
Kindly read:
Financial planning pyramid..
Best equity funds for 2016.
Kid’s education goal planning..
Hi Sreekanth,
Thank you very much for creating this website, its very informative 🙂
I would like to seek your advice on my investment plan, below are my personal details and current investments, please suggest me what changes should I make in my portfolio to get better returns and is the investment amount correct or should I increase/decrease it
Age: 33
Monthly income: 90,000
Spouse: Working
Son: 1 year old
Investment objective: Child’s higher education (15 years horizon) and old age security/health
Mutual Fund SIPs:
1. DSP BLACKROCK (Micro Cap Fund) Rs. 3000
2. Franklin india Prima Plus Rs. 2000
3. Franklin india smaller companies: Rs. 5000
4. HDFC balanced fund: Rs. 2000
5. Mirae Asset Emerging Blue Chip Rs. 3000
6. UTI equity fund: Rs. 2000
PPF investment upto 1 lakh per annum
NPS of Rs. 50,000 per annum
Term life insurance worth Rs. 50,00,000
Medical insurance cover upto 10 Lakhs for family
I am planning to do some more investment in following funds, is it advisable to go for it:
1. Birla Sun life Bank and finance
2. SBI FMCG Fund
3. Motilal Focused Midcap 30 – DP (G)
4. Axis Income Saver Fund Direct -Growth
Hi Srikaanth,
I am 42 years, private employee and can invest RS 10,000 per month. i can invest for next 5 years. i read all articles about mutual funds but confused about large / mid / small cap and equity/ debt / liquid funds. could you please advise me with some funds where i can expect good returns?
at present i have 3 lakhs cash with me which i would like to invest where i can get good returns.
Dear Brave,
Suggest you to go through below articles and you may revert to me if you need more info;
What are Large/Small/Midcap funds?
Types of Debt mutual funds.
Best Debt mutual funds for 2016.
Hi,
I’m looking for best long term(20-25 years) high return investment plans .I can invest 30k to 40k per month .I also would like to know what if I became NRI in between ?
NOTE:I’m not looking for tax saving plans because mostly I live outside India.
Thanks
Venkat
Dear Venkat,
You may invest in diversified equity & mid/small cap funds.
Kindly read:
Best Equity funds for 2016.
FATCA compliance & MF investments in India & NRIs.
What are large/mid/Small cap funds?
hi i m investing in HDFC midcap…but its perfomance is not so good …so should i replace it with UTI midcap or continue??
Dear neeraj..You may continue with it. May I know your investment horizon??
Dear sir
my monthly income is about 18000 thousand .i have lic premium 17000 yearly. pls suggest me for investment .age 32
Dear sanju,
Kindly let me know the plan names (LIC plan name, commencement date, policy term etc.,)
Also, more information about your financial goal(a) / Investment horizon (time-frame)??
Hi,
I am a working mother aged 30. I am in an MNC and have annual income of 12 lacs. I need to plan for my retirement after 25 years. I need to build a corpus of 8 crores by then. I have chosen equity as my way. For this, can you recommend how much I should be saving and how should I distribute it among the funds.
It would be nice if you could elaborate, how often one should be reviewing their portfolio and what corrective measures need to be taken.
Many Thanks,
Meenakshi
Dear Meenakshi,
Kindly use the calculator available at ‘Retirement planning made easy’ to arrive at approx savings required to reach your goal value.
Direct Equity or Equity mutual funds are the best investment avenue to achieve long-term financial goal(s).
Once you calculate how much needs to be invested, you can create SIPs in 2 to 3 funds. Invest as much as possible and as frequently as possible (SIPs+manually).
You may allocate more monies towards a mid-cap fund.
Read:
My Mutual fund portfolio.
Best ELSS Funds to invest in 2016 (For Tax saving + Long term goals)
Best Equity mutual funds to invest in 2016.
Dear,
sir i am first time invest in mutual funds, and i will decied to first choice invest in 1) sbi pharma fund (g)-5000/month 2)Reliance pharma fund(g)-5000/month 3)Uti pharma and healthcare fund (g)-5000/month.
for continue in 5yrs.
so please advice me can i right or wrong decisson. Please discuss in details.
Thank you.
Dear mandal,
Any specific reason for shortlisting PHARMA / healthcare related funds only.
Hello Sir, I am 23 years old and I am new to mutual funds
I am ready to invest Rs.5000-pm and increase the investment by 10% every year
My friends suggested to go for ELSS tax saving plans…. So with reference to the data given in your website can I go with Franklin India Tax Shield Fund or is it better to divide the investment of Rs.5000 by investing in different funds?
Or is it better to go for small and mip cap funds?
I am very confused… Please suggest me
Time period is for 8-10 years
Investing by FundsIndia
Thank You in Advance
Veena
Dear Veena,
If you want to save some taxes + accumulate long term wealth, consider ELSS fund. Franklin Tax shield is a good one.
Read : Best ELSS funds for 2016.
Hi ,
I am completely new to SIP and have started my investment just this month with Rs 1000 p.m. in HDFC BALANCED FUND – GROWTH for a term of 5 years. I have plan to invest Rs 1000 each in 4 more sip’s starting next month for a time horizon of 5 years each. Can you suggest some good funds to me?
Apart from this I have plan to invest Rs 25,000 each in two different LIC policies. Can you suggest me any good policy? Also if you can suggest of some alternative that would be great.
Looking forward to some great positive suggestions from your end.
Dear Deblin,
Besides the balanced fund, you can consider investing in an equity diversified fund and one large cap fund.
In case if your investment horizon is more than 5 years, you can add one mid-cap fund.
Let me know more details about lic policies (Plan name, commencement date, sum assured, term ..)
Do you have any family member(s) who are dependent on you financially?
Hello Sreekanth, Besides HDFC Balanced fund I also invested in SBI Bluechip fund growth (same 1000 p.m. for 5 years). I am not currently thinking of time horizon beyond 5 years so I want to stick to this timeline as of now. Can you name some specific funds equity diversified fund and one large cap fund? Also I want to invest in one risky fund for a very low time horizon either 1 year or max 3 years. If possible please let me know name of any good fund in this area.
As for LIC I was planning for 50k investment for 20 years in Jeevan Anand 2 policy. But I am confused between 25k in LIC and 25k in ELSS/ULIP split as I do not have any idea on the second option. Can you please guide me here. Thank for your suggestion again.
Dear Deblin,
For a 5 year time horizon, SBI & HDFC funds are fine. Suggest you not to invest in mid-cap (risky one) for 1 to 3 years.
If you have more surplus funds which need to be invested, you may consider investing in the existing ones.
Kindly read:
Term insurance Vs Traditional plans like Jeevan Anand.
How to get rid off bad life insurance policy?
Best Term insurance plans.
Hi Sreekanth, Thank you so much for the prompt reply. Instead of investing more on the current fund I was thinking of investing Rs 1000 each for 5 years on the following funds :
1. UTI Equity (G)
2. ICICI Pru Value Discovery Fund (G)
3. ICICI Pru Focussed Bluechip Fund (G)
As I said I am very new to SIP so I am a little confused here. Any suggestion from your end would be very helpful.
Your blog on insurance was really helpful Thank you so much. Will definitely consider on the points stated before investing.
Thank You again.
Dear Deblin,
The existing funds are good, so you may invest in them. However you may add one 1 & 2 funds to your portfolio.
Hey, what are best funds to start SIP in 2016. Thanks.
Dear Rohit,
Kindly read my latest article : Best SIP Equity Mutual Funds to invest in 2016.
Dear Shreekant,
I want to invest only in equity funds. I have surplus of Rs one lakh per month. Can you suggest me best funds with allocation of money. I don’t have liability like children education, constructing the house etc.
Dear Pradeep..If your investment horizon is long-term, you may pick around 3 funds from each of the above fund categories and stay invested.
Dear Srikanth,Hope you will review and renew the above list of funds to invest for 2016 by 29/12/2015
Dear Mr. Bansal,
I will surely review by End of this month 🙂 Thank you!
sir, I invest last 42 months HDFC top 200- 1000 p.m., last 6 months HDFC balanced – 500 p.m., uti MNC – 500 p.m. , last 4 months uti opportunities – 500 p.m., SBI bluechip – 500 p.m., this investment best for next 20 years or any change plz suggests me, and suggests me top one time investment mutual fund for 10 – 15 years, from VISHESH
Dear VISHESH,
Kindly continue with them. You may check for portfolio overlap of these funds.
Read :
MR portfolio overlap analysis tools.
Kid’s education goal calculator.
hi ,Sreekanth,
i regular follow you.
pi suggest balance fund from hdfcbalance fund or tata balance fund for 3000 sip for 10 year
Dear mahesh…Both are good ones. Choose either of them.
Hi sir, i want to investvin smal & mid cap fund
1.morae assest emerging blue chip fund
2.dsp black rock micro cap fund..
3.reliance small cap fund
Which one is good for 3 to 5 yeras..
Dear paresh..Why do you want to invest in all small cap funds? And for < 5 year time-horizon, suggest you not to invest in mid-cap oriented funds. Kindly read: Best Balanced funds.
Thank youyou shreekanth..
But i want to add one small n mid cap fund…i have already 4 mf
1.icici pru focuse bluechip
2.uti mnc fund
3.icici pru value discovery
4.axis long term equity.ELSs
I want to add for 3to5yrs for short term goal so i think i want to add one smal n mid cap mf…if any good please suggest me good fund
Dear Paresh,
Invested funds are good ones. But kindly have a long-term view. Equity oriented funds can turn out to be very risky in short term.
Thanks sir, my all fund time horizone more than7 yrs..tax saver for 20 years. I want to add one balane n one mid cap fund…so please suggested me two good fund.i have shortlisted few fund.
1.hdfc balance or tata balance fund
2.hdfc mid cap
3.dsp blackrock micro cap or mirae assetemerging blue chip fund.
Please clear my confusion. Rs.1000 per month sip.
Thanks for ur reply.
Dear PARESH,
1&2 : Fine
3 : DSP micro cap is a mid-cap fund whereas Mirae Bluechip fund is a large cap fund. If you opt for hdfc mid cap then consider investing in mirae fund.
Read:
Best Equity mutual funds to invest in 2016.
Thank you sir
Dear Sreekanth
I have just started investing in SIP’s. I am investing monthly Rs. 5000/- per person for 3 persons in my family i.e. total investment of Rs. 15000/- per month for tenure of 3 years which can be increased for up to 15 years. I have started investing in following funds:
ICICI Value Discovery Fund-2000
Birla sunlife Frontline Fund-2000
Reliance Small Cap Fund-1000
total Rs. 5000/-
SBI bluechip Fund- 1000
Canara Robeco Emerging Equities- 2000
Franklin India Prima Fund-2000
Total Rs. 5000/-
HDFC Midcap Opportunities -2000
UTI Midcap Fund-2000
Franklin smaller companies Fund-1000
Total Rs. 5000/-
Are these ideal portfolio or I should consider changing it. Do any of these funds overlap. It would be great if you could provide me your valuable advice.
Awaiting your response.
Dear Tarun,
Any specific reason for investing in so many funds? Are these 3 portfolios mapped for three different goals? Are you taking advice from any advisor or doing it by yourself?
Kindly read : MF portfolio overlap checking tools.
Thanks for your email.
There are no specific goals as such. I have started investing just for wealth creation over a period of time. I do monitor the performances on my own and is not based on any advice from any advisor. I just felt that I should not be investing in same funds in all accounts therefore all different funds.
Dear Tarun,
Kindly read this article and check if there is any high overlap : MF Portfolio overlap checking tools.
Hi sreekanth ,
I am complete newbie to M.F ,wanted to know for a 3 year timeframe which funds are best, can invest 6000-7000/month . my age — in late 20s . goal to double my investment in next 3 years .
Regards
Gurpreet
Dear Gurpreet,
Do not invest in equity funds if your investment horizon is 3 years.
Dear Sreekanth,
I am new to Mutual Funds investment and currently planning to save some money for future like, kids education, marriage and for retirement. i can invest 10000 Rs. every month for at least 5 to 10 years. Kindly advise what shall i do? Do i need to contact any bank or any financial expert like you for the same? Currently i only have a LIC policy in which i save Rs. 50000. yearly.
Regards,
Neeraj
Dear NEERAJ,
Let me know the LIC policy details (Plan name, commencement date, term..).
You can take advice from a fee only financial planner or from any good mutual fund agent.
You may also invest in 2 to 3 good funds directly online. (Or) you can invest through online distribution platform like fundsindia / icicidirect / sharekhan / kotak securities etc.,
Read : How to invest in Direct plans for MF schemes?
Kindly read:
Retirement planning calculator.
Kid’s education goal calculator.
Hi Sreekanth,
Can i buy Direct plans for MFs using fundsIndia? Is it better to use online distribution platform like fundsindia or directly buy online from respective MF websites?
Also waiting for updated list of mutual funds for 2016 🙂
Dear Meera,
If you have expertise to pick good MFs on your own, go DIRECT.
Kindly Read :
How to invest in Direct Plans?
Best Equity Funds for 2016.
Dear Sir,
My self Anil age 28 unmaried.
My monthly income 16000/-
I want invest 8-10 year
in sept. 2105 i have start investment through SIP 1000/- in “UTI MNC FUND”.
Now i invest Rs. 3000/- more throuh sip.
Plz guide me some good fund for me.
Atleast 3 fund for me…..
Dear Anil,
UTI MNC is a diversified equity fund. You may consider adding one mid-cap fund and one balanced fund to your portfolio.
Ex : HDFC Mid-cap opp fund & TATA Balanced fund.
Read : Best Balanced funds.
Dear Sreekanth,
My age is 31yrs. At present I have the following SIPs running:-
a) HDFC Midcap (Rs. 1500/- )
b) HDFC Balanced (Rs. 1500/- )
I want to add a diversified MF to my portfolio(time horizon-15yrs). I have shortlisted the following :-
1. ICICI Pru Value Discovery (my 1st choice)
2. Franklin India Prima Plus
3. ICICI Pru Dynamic Plan
4. Franklin High Growth Companies
Please let me know your pick from the above or any other fund you want to suggest. Also in the coming days I plan to add one more midcap(franklin smaller companies) and one more balanced(tata balanced) fund and their portfolio overlap with existing MFs are 27% and 21% respectively – your take on that?
Regards,
Indranil.
Dear Indranil,
Kindly add the funds based on your financial goals (time-frame & risk profile).
All four funds are good ones. My pick would be Franklin Prima plus. It has 20+ year track record.
I believe three funds are sufficient.
Hi Sreekanth ,
First of all congrats for such a nice blog and I must say you are doing a wonderful job . I need your suggestion on two aspect .
1) I am currently investing in following MF through SIP from last 4 year .
Mututal Fund Amount
IDFC Sterling Equity Fund Growth Direct Plan 2000
DSPBRMF Micro Cap Fund – Dir – G 4000
HDFC Top 200 Fund – Direct Plan – Growth Option 2000
HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth Option 2000
HDFC Equity Fund – Direct Plan – Growth Option 2000
ICICI Prudential Value Discovery Fund – Direct Plan – Growth 4000
ICICI Prudential Focused Bluechip Equity Fund – Direct Plan – Growth 3000
Kindly review my portfolio and suggest about my fund selection . Also I have seen return in HDFC equity and HDFC top 200 is not very high as compared to its peer .So should I continue with it or switch to some better performing stock .
2) And From Jan 2016 I am planning to invest additional 10-15 K in SIP . I need your suggestion as to whether I should increase the SIP amount in current fund or to invest in any new fund .
My plan is to stay invested for another 12-15 years .
Regards
Sambit
Dear Sambit,
I believe that you can trim your portfolio to may be to 4 funds.
Kindly check the portfolio overlap for HDFC Midcap Vs DSP Mirco fund and HDFC Top 200 Vs ICICI Bluechip fund.
Kindly read : Check MF portfolio overlap.
Also, IDFC sterling fund has not been performing up to the mark.
If your horizon is >10 years, you can invest more in a mid-cap fund & can add one balanced fund.
Kindly read : Best Balanced fund.
Thanx a ton Sreekanth for your promopt reply . What do you think about HDFC top 200 and HDFC equity , should I stay invested or move out of this 2 fund
Dear Sambit..As your investment horizon is >10 years and since you have already invested in these funds, suggest you to remain invested. These are top class funds but yes, going through some bad patch. You may give them some more time.
Hi Sreekanth,
pi give me answer .
my goal is required 50 lakh after ten year for daughter marriage 2025 and son education 2024 for this goal.my age is 39 year old.
my monthly income is net 40,000 rs. invest per month 10000 rs in SIP from last 2 year.and i want to converet broker to amc mf is good?
my fund selection is proper way for achieve my goal .
1.icici pru. focus blue-chip eq. 2000 .
2.HDFC midcap 2000 .
3.idfc premier equity 2000.
4 icici pru. value discover fund. 2000.
5.tata balance fund 2000
i should increase my investment per year 10%
other information 50,000 for LIC per year.
pi give me answer.
Dear mahesh,
Kindly use the calculator available here, to arrive at required amount of savings (approx) to meet your goals (kids’).
Kindly read : How to invest in Direct Plans of MF Schemes?
Your portfolio looks good. Keep an eye on IDFC fund’s performance, the fund manager has changed.
Share more details about your LIC policies (plan name, sum assured, commencement date, term..)
Hi sreekant
I am having a portfolio of the following,all monthly and growth options
2000 franklin high growth
1500 mirae emerging bluechip
1500 franklin small companies
i want to know weather to continue this or change canara robeco emerging equities or hdfc midcap fund in place of franklin high growth and franklin small companies
Dear Arun..Let me know your investment horizon (time-frame).
25 years
Dear Arun,
All three funds are good ones. You may now consider adding a balanced fund to your portfolio.
Read : Best Balanced funds.
Dear sreekant
Thanks for advice i will take a look at balanced funds also i would like to know there is no change required for the existing portfolio for the given time frame as i find that instead of franklin small cap fund others in the same group are performing better please advice on that issue
Dear Arun..They are good funds, kindly remain invested for longer period and keep tracking the portfolio performance.
Sir,
I want to invest 5k monthly for 5 years by SIP. Please suggest me best equity mutual funds
Dear Naresh..You may consider investing in a Balanced fund.
Kindly read : Best Balanced funds.
Dear Sreekanth,
You are doing a fabulous job. I am 35 years old and these are the funds that I am investing in : Tata balanced fund, HDFC balanced fund, Axis long term equity fund and Franklin India prima plus. My investment horizon is 20 years. I also want to invest in a mid cap fund. I have zeroed in on Franklin small companies / HDFC midcap and UTI midcap. Out of the three, which one would you suggest?
Thanks
Praveen
Dear Praveen,
All three are good. I have investments in UTI mid-cap.
Dear Sreekanth,
Thank you very much
Praveen
Re-posting. Dont know what happened? I cant see my post on the blog.
Excellent bog. VERY honest and informative.
I WILL SHARE THIS WITH MY COLLEAGUE IN COMPANY.
I want to invest approx 20 k per month for a long term wealth building.
I want to go for MF SIPs from different companies (diversification). For example, HADF, UTI, BIRLA SUN LIFE, Franline, ICICI.
I am not sure if I need to go for MID CAP or LARGE CAP or BOTH?
Also, not clear if I need to opt for pure EQUITY MF or Balanced MF or a mix.
any input?
again: Thanks for this excellent work.
WhaT are your inputs please for 2015?
Dear Ram..Let me know your investment horizon (time-frame)??
Hi sreekant sir
I am a new investor in mf funds. And I want to invest 5k per month in mf funds. So please suggest me the best funds in which i invest.
Dear saurabh…kindly let me know your investment horizon (time frame)?/
Hello Shrikanth :
Current MF SIP I have :
Franklin India Prima Plus : 2500
SBI Blue chip : 2500
Franklin India High Growth Companies Fund : 1000
BIRLA SUN LIFE FRONTLINE EQUITY FUND – GROWTH : 1000
HDFC Equity Fund – Dividend : Invested 1000 for 3 year now stopped SIP as I fell fund not doing good.
What is your view on these MF SIP and Need advice on below queries :
1. When you say need to have fund for each goal , does that mean for eg. my 1 st goal is 10lkh after 5 yr and
2nd goal 20lkh after 20 yr and suggested fund is say best fund then I need to invest in same mf but two different SIP , one for each goal ?
2. I have amount of 300000 which I wanted to invest for short term 6 months to 1 year max , what will be the best risk free MF with good return at least compared to saving account or FD. (debt/liquid and which ) ?
Also having 5 lkh FD maturing soon want to bring it to MF which are suitable funds.?
3. I have a daughter of 6 month so I wanted to start MF SIP for her future ,
for goals :
1. Higher studier for 15 yrs amount want to achieve is 50 lkh
2. Marriage after 20 yrs amount want to achieve 50 lkh
4. Want to start SIP for retirement target amount 2 cr after 20 yrs.
I have term insurance of 50 lkh . I can invest upto 15 to 20 k per month as of now and can increase by 10% – 15% every year.in Next two year my home loan will be ending so can move EMI amount of 20k to MF SIP.
Dear Ketan,
You have two funds from Large-cap category (SBI bluechip & Birla frontline), you may check the portfolio overlap for these two. You can get rid off one fund
if overlap is very high.
Read : Check MF portfolio overlap.
1 – You may have same SIPs for all the goals in few funds. But it is better to have seperate SIPs (though the mf schemes are same) for easy tracking and it will be beneficial to map the portfolio value to your goal amount in future. You can have a rough idea whether you are falling short or not.
2 – For very shor-term , FDs are decent, else consider Ultra short term funds.
Read : Best Debt mutual funds.
For Rs 5 Lakh, may I know the investment horizon.??
3 – Kindly read : Kid’s education goal planning.
4 – Read : Retirement planning calculator.
Do you and your family have health insurance cover?
Consider taking a Personal Accident cover.
Thanks Sreekanth for quick reply I must the you put things in such simple language easy to understand .
For 5 lakh amount , can go for long term as I will not require this fund in at least for 5-7 yrs , I want to know as it will be lump sump amount so how can I allocate it different investment instrument, MF being primary, and want to put this money in moderate risk.?
Dear KETAN,
Then you can consider investing this amount in a liquid fund like HDFC Liquid fund and create Systematic Transfer Plan (may be for next 6 months) to a balanced fund like HDFC Balanced fund.
Read:
Best Debt Mutual Funds.
Best Balanced funds.
How to invest in Direct MF plans?
Hi sir, lot of thanks for MF guideline. Sir pl suggest I invest one time lum-sum or through SIP.
Dear Satish..If you have lump sum amount to be invested, consider investing in a Balanced fund to start with. Else, start investing via SIPs.
sir, any four funds of equity/balance funds in large cap/mid cap to invest.
Dear Satish,
You may consider – Franklin prima plus, UTI midcap & HDFC Balanced funds.
Sir I retired from army recently. I want to invest my hard & secured money in MF Rs 4 lakhs for long term for 2 to 4 years. Please guide me which funds are better to achieve the profit. sir waiting your reply.
Dear Satish,
Kindly note that 2 to 4 years is not a long-term horizon.
Are you investing this money towards any specific Financial Goal? Do you need this money after 4 years?
Sir there is no need of this money after four yrs pl suggest in which MF i invest.
Hi… Mr Sreekanth,
For last 13 months I have been investing in the 3 following funds @3000 month/fund. But the return is negative by 2.8%. Should I continue the SIP or stop and jump to other funds? Please advise. Existing SIP funds are appended below-
ICICI Pru Focussed Bluechip Eq Fund Growth
HDFC Midcap Oppurtunities Fund Growth
DSP BlackRock Top 100 EQ Fund Growth
Dear Bankim,
These are top class funds. You got to be with them for long-term. Do not worry too much with short-term volatility.Do not churn your portfolio frequently.
You have invested in two large-cap funds, which can be avoided. You can opt for either a diversified equity or a balanced fund.
May I know your investment horizon?
Kindly read:
Best Balanced funds.
My Mutual fund picks.
MF portfolio overlap analysis tools.
Hi Sreekanth,
I recently started going through your expert advice on the investment management and found it be to extremely helpful. Below mentioned is the long term investment goals:
1. Willing to invest lump-sum amount of 4 lakhs to build a good corpus in 8-10 years.
2. Willing to invest 30k in Mutual Funds with a plan of 3-5 years. I would like to be equity focused while doing so which will help me to build a good corpus amount. Few MF’s which I could figure out are:
a. UTI Mid Cap fund
b. DSP BlackRock Micro Cap fund
c. ICICI Pru Value Discovery Fund (G)
d. Canara Rebecco Emerging Equity (G)
e. Franklin High Growth Cos (G)
f. Mirae Emerging Bluechip Fund (G)
May I request your expert advice, please ? Would like to know if we can diversify amount in not more than 3-5 funds to keep the portfolio simple and easy to follow.
Cheers,
Saurabh
Dear Saurabh,
Thank you for following my blog.
1 – Consider investing in balanced fund. You can buy units in 2 to 3 installments. (or) Create a Systematic Transfer plan by investing in a liquid fund to balanced fund. Ex – HDFC Liquid plan to HDFC balanced fund. But kindly be aware of the tax implications.
Read :
Best Debt mutual funds.
Best Balanced funds.
You have shortlisted 3 mid/small cap oriented, 2 multicap and 1 largcap oriented funds. You may keep the total no of funds to 3 or 4 in your portfolio.
UTI midcap , Franklin high growth & mirae funds cane be considered.
But invest in these funds if your horizon is above 5 years only. Else you can invest in a balanced fund if horizon is 3 to 5 years only.
Kindly read:
How to invest in direct plans?
MF portfolio overlap checker.
Hi Sreekanth,
Thanks for the useful info. It will be great if you can provide further input on my financial decisions to be made.
As of now i have following mutual funds.
HDFC Tax Saver, NAV – 382
Reliance Tax Saver ELSS , NAV 45
SBI magnum Tax Gain, NAV 110
Lock in period of all these are over.
I need to know if i should continue with these mutual funds or exit.
I further want to invest in mutual funds ( tio diversify)as all my investment till now is form of PPF and Fixed Deposits. I can immediately invest 5 Lacs in MFs with investment horizon of 5 years.
Please suggest which funds shall i invest in?
Thanks.
Dear Meera,
You can invest Rs 5 Lakh in Liquid debt mutual funds (lump sum) and can book STP (systematic transfer plan ) say for next 6 months to an Equity oriented plans.
Suggest you to consider HDFC Liquid plan to HDFC Balanced fund for 5 year horizon.
Kindly read:
Best Debt mutual funds
Best balanced funds.
How to invest in Direct plans of MFs?
You may redeem hdfc tax saver & SBI tax gain funds and re-invest in Reliance tax-saver if your investment objective is to save some taxes too.Else invest in a diversified equity fund based on your time-frame.
Kindly read : Why you should not invest in Fixed Deposits for longer periods?
Sreekanth, thanks for your prompt reply.
I have further questions based on your answers: you have recommended me to invest in only balanced fund ( based on 5 Years horizon). If my horizon is extendable to 10+ years can you please suggest some pure equity based mfs also in order to maximize my returns given that i have already invested around 33 % of my networth (9lacs) in PPF, 33% in FDs and RDs, around 22 % cash, i hold tax saving MFs for 8.5% .
I would like to use the cash component for mutual funds to start with and there after move the funds from FDs also to MFs.
So ideally i would like to have a balance of pure equity based funds( large cap,diversified, small cap) , balanced funds, debt funds.
Also given the market conditions, is it the right time to exit tax saver mutual funds as i dont need these for tax saving porpuses any more.
Dear Meera,
You may consider funds like Franklin Prima plus, UTI midcap / HDFC Mid-cap oppp / Franklin Smaller co’s fund and one balanced fund.
You may redeem hdfc tax saver & sbi elss funds and re-invest in the above funds.
Hi Sreekanth,
what are your views on Mirae Asset Emerging BlueChip-G in mid cap segment as compared to UTI midcap / HDFC Mid-cap oppp / Franklin Smaller co’s fund?
Dear Meera,
It is a good fund but relatively new one when compared to UTI mid-cap or Franklin smaller cos fund which have more than 10 years of track record.
Dear sreekanth reddy,
i need suggestion from you,I am a salaried and i want to invest in SIP.
I CAN INVEST UP TO 5000 PER MONTH.
WHAT ARE THE BEST PROBABILITIES I AND HOW MANY YEARS NEEDS TO INVEST.
PLEASE SEUGGEST
Dear KISHOR,
Duration should be dependent on your financial goal(s). Kindly share more details about your financial goal(s) or investment horizon.
Hi Sreekanth,
I am planning to invest 5k each in two mutual funds Can you please suggest which one to choose ?
my Age is 49 , or inform which is best plan for retirement
Thanks
suresh
Dear Suresh,
You may consider investing in one balanced fund and one diversified equity fund for next 5 years or so.
Ex : TATA Balanced fund & Franklin Prima plus.
Read : Best Balanced funds.
Thank you sree
How to invest pl suggest
on line available TATA Balanced fund & Franklin Prima plus
Dear Suresh,
You can consider investing directly online by visiting respective company websites or through online distribution platforms like icicidirect.com / fundsindia.com
Suggest you to invest in DIRECT PLANS of these schemes.
Kindly read : How to invest in direct plans of MF schemes?
My dear friend,
want some suggestion from your side, if you can spare some time for me.
I am a salaried middle class person having 35k/month in-hand salary and also able to earn incentive ranging from 10K upto 20K per month.
I am investing rs.6500 per year in star health insurance.
I am also investing rs. 19000 per year in LIC.
For the purpose of tax evasion and for investment purpose I am thinking to go either with PPF or with Mutual funds and can invest maximum upto rs. 6500 per year
Please suggest me about it.
If it is possible for you, then please reply me on “[email protected]”
Dear Mahesh,
Kindly share details of your existing LIC policies (Plan name, commencement date, sum assured , tenure etc).
May I know your investment horizon?
Kindly read:
Best ELSS funds.
Financial Planning pyramid.
Hi Sreekanth,
I plan to start SIP in:
ICICI Prudential Export and Other Services Fund D G – 6000 10 years
Franklin Build India Fund D G – 6000 10 years
DSP Micro Cap Fund D G – 3500 – 15 months
HDFC Balanced Fund D G – 2500 – 15 months
SBI Blue Chip Fund D G – 4000 – 15 months
Let me know your views on the same.
Dear Rohan,
You may avoid or reduce the SIP amount of ICICI exports fund.
Are those SIPs duration or your investment horizon? Kindly share details about your financial goal(s)
Kindly read : MF portfolio overlap checker tools.
Hi Sreekant,
My goal is to earn 50 lakhs+ in 10 years. The duration mentioned are the SIP duration as of now.
Dear Rohan,
To accumulate Rs 50 L in 10 years @ 12%, you have to save around Rs 24k per month. You may increase the SIP contributions in future.
As suggested use the MF portfolio overlap checker tools to trim down your portfolio.
I observe that you have mentined ‘D G’, so did you opt for ‘dividend’ or ‘growth’?
Dear Sreekanth,
I was referring to D – Direct G- Growth
The MF portfolio compares only 2 at a time. Is there any option where I can compare all the 6 MF in one go?
Dear Rohan,
As of now, I guess no such tools are available.
Excellent !!! Very very informative and suggestions, Srikanth.
I have one question on monthly SIP say Rs. 5000, is it right to invest Rs.5000 on the same specified date in the month for the fund ? Or split to multiples like Rs.2000,2000,1000 for different dates in the same month with same fund? Please suggest.
Appreciate your suggestions.
Hi srikanth,
I am able to invest 5k per month through sip, can u suggest me which broker is best to invest either banks or like share khan and can u suggest , and shall I select 10 funds through invest as 5k.
Dear suresh,
Why do you want to invest in 10 MFs? Absolutely not required. Consider just 2 to 4 funds as per your goals.
If you are comfortable investing DIRECTLY online then you may do so.
Read : How to invest in DIRECT PLANS of mutual fund schemes.
Dear Chandra,
If the goal is a long-term one, I do not think we should give that much importance to this.
Hi Sreekanth,
I am planning to invest 50k each in two mutual funds only once. Can you please suggest which one to choose?
I already invested in balanced , mid-cap through SIP.
Thanks
Satish
Dear Satish..let me know your investment horizon.
Hello,
Thank you for the detailed information about MF. I wanted to restart SIP’s which I have stopped an year back. Please advise right MF to select as I would want to invest up to 10,000 per month in 3 – 4 different MF for about 8 – 10 years.
Thank you
Padma
Dear Padma.. Do you have any existing MF investments?
All my old MF SIP’s are stopped, I am not holding any now. It’s going to be new start.
Dear Padma,
Considering your investment horizon, you can have a look at the below funds;
1 – Franklin Prima plus
2 – UTI mid cap or HDFC mid-cap
3 – HDFC balanced / TATA balanced fund
Hi it’s nice to read your article & here I need your experties
I am 35yr married salaried person with 1 boy (8yrs), wife is non working ……. I have term plan + health insurance for family already …..at the moment doing sip from last 1yr of Rs. 1000 each in followings funds:
BSL Manufacturing Equity – R G
SBI Magnum MidCap Fund – R G
C’nara Robeco EMERGING EQUITIES – R G
ICICI Focused Bluechip Equity R G
L&T India Value Fund – Growth
looking for long term say about 10-15yrs ……..firstly please guide about above funds & secondly if I should look for more funds or change few??
I also want to increase sip of Rs. 3000 more …….should I look for some more funds (pls guide) or increase the limit in above funds only.
thanks!
Nitin
Dear Nitin,
Consider enhancing your health insurance by buying a Super Top up plan.
Any specific reason for investing in BSL manufacturing fund?
You have two mid-cap oriented funds. Consider dropping one. Check the overlap of their portfolios with these tools.
You may add one balanced fund to your core portfolio.
Hi Sreekanth…
Very useful information u had given on this blog…
Its a request, can u share ur email id to get some more suggestion on specific queries.
Thnx
Dear Krishna..you can reach me at sreekanth @ relakhs.com
hi sir
i want to invest 5000 in sips for 3 to 5 years
which fund i choose to invest and trust them
plz guide me
yours faithfully
siddhant jain
Dear siddhant,
You may consider investing in a balanced fund & an aggressive MIP. Allocate may be 75% to balanced fund.
Ex – HDFC Balanced fund & Birla Sunlife MIP II Wealth 25 plan.
Kindly read;
Best Balanced funds
Best MIP funds.
Hi Srikanth,
You are doing commendable job by sharing your expert opinion.
It would be really nice of you if you can review and share your expert opinion for below listed funds in my portfolio
1) SBI Magnum Global Fund – (MidCap)
2)Hdfc MidCap opportunities Fund (MidCap)
3)ICICI Prudential Value Discovery Fund (Multicap)
4) Franklin India High Grwoth Comapnies Fund (Multicap)
5)HDFC Tax Saver (ELSS)
6) ICICI Prudential Tax Plan (ELSS)
7) UTI Mastershare (Large Cap)
Dear Lalit,
Having two funds from the same category may lead to unwarranted diversification, which may not be beneficial.
Suggest you to use ‘MF Portfolio overlap analysis tools‘ to check the extent of overlap and consider trimming your portfolio.
Also, may i know your investment horizon (time-frame)??
Thanks Sreekanth for your reply. My timeframe is around 8-10 years.
Also given a chance which funds you would like me to opt out from the portfolio.
Dear Lalit,
My picks would be – HDFC Mid-cap, ICICI discovery, ICICI Tax plan.
Hello sir,
I am 30 yrs old salaried person. I look forward to invest in mutual funds.
Till now I have not invested in any mutual fund. My financial goals are my daughter’s education and marriage along with post retirement benefit. pls guide.
Dear vikram,
Let’s start with ‘Protection Planning’. Kindly let me know if you are adequately insured? Do you have life & health insurance covers?
Hello Sir,
I am investing 1000each in birla frontline growth and franklin india smaller companies fund
Now i want to invest another 2000 in another fund for 12 years.and i want to decide buy 100 shares in future consumer enterprises ltd..
Please suggest my suggetion good or bad?
Thanks & regards
subitha
Dear subi,
You may consider either an Equity Diversified fund or a balanced fund. Ex : Franklin Prima Plus or HDFC Balanced fund.
Dear sir,
I am new in field of investment. please suggest me sip plan for new user i nvr invest in sip . i want to invest 5 k per month and my goal for my children study and marriage. i m 28 yr old guy professionaly i m engineer. thanks in advance sir.
Dear Prince,
Do you have sufficient life insurance cover?
Suggest you to kindly go through this article – Financial Planning Pyramid – and revert to me.
Hello Sir,
I am investing 5000 each in ICICI focused bluechip, HDFC Mid cap & HDFC balance fund.
Now i want to invest another 5000 in very high risk sector fund for 10+year and ready to take risk.
I have decided to invest in Pharma sector .
Please suggest which one will best Reliance pharma or SBI pharma.
Thanks & regards
Manoj
Dear Manoj,
I personally do not advice to invest in sector funds. You may be better off investing the same in existing fund like HDFC Mid-cap.
Else you may consider one diversified equity fund also like Franklin Prima plus.
Is the returns published annualised returns?
Yes dear Rosita…They are mostly sourced from money-control.
Hello Sreekanth,
I am interested to invest in Mutual funds in India. I would appreciate if you can point me in the right direction to initiate such investment process. I reside in the USA.
Thank you.
Dear Premal,
You can either invest directly in DIRECT plans of mutual funds by visiting respective Fund house websites or you can invest through online platforms like Fundsindia.com or icicidirect.com
Let them know that you are an NRI .
You may read my article on – How to invest in Direct Plans of Mutual fund Schemes?
Hi Sreekanth,
Thanks for you article. I am planning to start investing in SIPs’. I have been investing in mid and large cap stocks for a more than 1 year time horizon. I recently moved to the US and have plans to stay here long term (2-4 years).
Need your advice I must start the SIP investment in my Parents’ name. Also, can I switch my dmat directly on the name of my father, or should I close the account and open a new one on my dad’s name. Asking this as I found that, after 6 months of reaching here, I would be an NIR status and may not be permitted to invest regularly.
Thanks for your help!!
Regards,
Shashwat
Dear Shashwat,
Do you mean to say that you would like to transfer the shares in your father’s name?
You can invest in Mutual Funds as an NRI.
What is your investment time-frame for SIPs? When do you require this money? Any specific financial goal(s) that you have??
Kindly read : NRI status calculator & NRI Taxation rules.
Thanks Sreekanth!
Sorry for confusion. What I meant to ask is, can NRI’s invest in preferred stocks. I got the answer on the internet that they can only invest using PIS scheme of RBI. I think I would need to sell my holdings before 6 months of stay in the US
I want to invest for 15 year time frame. I am going through your other articles to find a good mix of equity/debt/hybrid funds.
I am 30 years of age and want to save for my retirement at 50 and my kids’ studies/marriage at about same time.
Thanks for being immensely helpful and sorry for being so naive 🙂
Thanks,
Shashwat
Dear Shashwat,
I do not have much knowledge about Portfolio Investment Scheme of RBI.
Below articles can be useful to you, kindly go through them and revert to me;
Retirement planning goal calculator
Kid’s Education planning
Top Balanced funds
Top MF MIPs.
MY MF Portfolio.
hello ,i am new to invest in SIP.please help me in which MF i should invest for 3 to 5 years
Dear Khush,
Kindly go through below articles;
Best MF MIPs,
Best Balanced funds.
How to invest in Direct plans of MFs?
My MF picks.
Hi there thanks for your informative blog.
I am 21 and have just started working and can invest around 12 K per month.
Will you please guide me on how should I divide this amount to create optimum financial portfolio
so that I can secure my future financially ?
I am looking for long term investment to fulfill my long term goals like house, car,marriage.
Most probably I will opt for higher education in 2018 which will cost me around 18 lakh fees (will go for bank loan)+ monthly expenses around 8K. For now I have a education loan for which pay EMI of 2700.
Kindly do guide me to create best investment portfolio.
Dear ROHAN,
Suggest you to buy a Health insurance plan for yourself. Kindly read : Best health insurance plans comparison portals.
Do you have any family member(s) who are financially dependent on you?
For higher education goal; you may start monthly RD + small amount in Monthly income plan (growth option) of mutual funds. Invest in MIP for up to 2017 and then switch to a safer option like FD.
Kindly read : Best Monthly income plans.
Hi Sreekanth,
I am investing 2000 pm in HDFC tax saver (G) as SIP. It has been 11 months. My return is negative 3%. At the same time AXIS long term equity fund (G) has given good return. This is for tax saving and return purpose. Please give your info, if i need to switch from HDFC tax saver to AXIS long term equity. Please be informed that I will continue SIP for 20 years. You input in appreciated.
Regards,
Ram
Dear Ram,
The units in HDFC tax saver are locked for 3 years. So you may not be able to switch. However, if you are not happy with hdfc fund, you may stop future SIPs and allocate the future amounts to Axis fund.
Also, remember, do not worry too much about short-term performances.
Hi Sreekanth,
Actually my moto is to have 1 crore rupee after 25 years. Which i will use for my daughter education and marriage. Generally long term SIPs give return of somewhere between 20 to 25% (CAGR). I found that SIP of 2000 INR for 25 years @ 18% will build 90lac and it will be 1 crore 70 lac @ 22 %. Since this money is for my daughter career, I was a bit worried, if i chosen correct fund. Please suggest if i should continue in this or move to Axis.
Note – I want to invest in ELSS only.
Regards,
Ram
Dear Ram,
If you are investing for long-term, do not worry about short term fluctuations or bad performances.
As discussed, you may stick with Axis fund and remain invested for longer duration. Once in a year, check the fund’s performance.
Suggest you to have reasonable and realistic expectations form mutual funds, as past performance may or may not be repeated in future. But, trust me, MFs are the best way to create wealth if invested for long-term.
Kindly read: Kid’s education planning goal.
Hi Sreekanth,
i have just started my career and wish to start saving and investments…..
i wish to invest 20,000 per month…..
Want to divide the investments in 3 parts….
1)FD’s
2)SIP(MF -> not an expert so wuld avoid this) and
3)Policies
plz help me get the right balance to breakdown 20,000 in the above 3 parts…..
Tenure is not a problem for me …..for any plan, policy ….
Thanks,
Atul
Dear Atul,
1 – Why did you want to invest in FDs? Do you have any short-term financial commitments?
2 – Start with a balanced fund. Kindly read : Best Balanced funds.
3 – Do you have any family member(s) financially dependent on you? Any financial obligations (loans etc)??
thanks for the prompt reply
1) Wish to do FD, so dat just in case if I plan to buy a house or car in 1-2 yrs…might use dat as the downpayment .
(suggest a better idea if ders any other)
3) Nope…I dont have any dependents or loans !
Dear Atul,
If you have short-term commitments or goals, you may invest in FD. If these are not compulsory ones, consider MF Monthly income plans.
Consider starting SIPs in a balanced fund & one diversified equity fund. Stay invested for atleast 5 years. (Ex ; HDFC Balanced fund & Franklin primaplus fund ).
You can plan to buy a health insurance policy. Kindly read : Best health insurance plan comparison websites.
Also consider buying a Personal accident policy to cover disability risk. Kindly read : Best Personal accident policies.
Hi Sreekanth,
I am Kevin, 23 years old and am planning to start an SIP soon. I consider myself moderately literate on financial markets.I would like to know the parameters that go into selecting a MF once I have my risks, horizon and goals decided.How do I use and understand parameters such as Alpha, Std Deviation , Sortino ratio, etc.
Secondly, How much amount of my salary should go into SIP ( I do not have any other investments)
Thanks
Dear Kevin,
1 – You may kindly visit freefincal.com for more info on MFs. I am sure you will like the articles available at freefincal.
2 – It depends on your future goal amounts.
Kindly read: Calculate future value of your investments.
Hi Sreekanth,
My Age 37 year .I have two ULIPS both are taken only tax benefit purpose and I am planning to take SIP’s and Life Insurance,PPF Please suggest which one is best . I am very very poor in planning financial
1.HDFC SL Crest–75000 k per annum
2.HDFC SL YOUNGSTAR SUPER PREMIUM–25000 k per annum
Kindly please suggest.
Thanks,
Harish
Dear Harish,
When did you buy these ULIPs? Are you happy with ULIP funds’ performances?
Do you have any dependents?
Kindly read : Best Online term insurance plans.
Hi Sreekanth,
I have been reading your posts on mutual fund investments and found your articles full of information for new investors . I am planning to invest 1L in ELSS for tax saving purpose and want to expect good returns on investment.
Could you please guide me to which are the ELSS mutual funds are best.
Regards,
Sanchit
Dear Sanchit,
Kindly read my post on ‘Best ELSS funds‘ .
Sir, I am newly start SIP rs.2000 pm so I request tell me which fund invest my sip? and how many period yrs or 5 yrs
Dear Gourav,
If your investment horizon is 5 years, you may consider investing in a Balanced fund.
Kindly read : Top Balanced funds.
Sir, mai sip me 10000 pm invest karna chahta hoo.kis fund me invest karu please suggesion
Dear meghnath..Let me know your investment time-frame??
Hello sir,i m regularly read your blog & read ur article regarding investment..i m 34 yers old / job in public sector bank.. I started investment in mutualfund last 2 month by sip n my portfolio is:
1.ICICI FOCUSE BLUECHIP FUND- DIRECT-GROWTH OPTION :RS.1000
2.UTI MNC FUND: RS.1000
3.ICICI PRU VALUE DISCOVERY FUND : RS.1500
4.AXIS LONG TERM EQUITY FUND-ELSS : RS.500 SIP
5.RELIANCE TAX SAVER: RS.500 SIP
my goal is by house in 10 years Rs.50 lakh…my portfolio is ok or if any changes please suggest me some good sip according to ur experiance..i m waiting for your reply..please
Dear Paresh,
Your portfolio looks fine to me.
Read my article : MF Portfolio overlap analysis tools.
Thanks sir.i have made this portfolio after reading your article all related to mutual fund.like small thing about date of sip deduction different date and so many things..but still i m new investor and need ur help…thanks for reply me…
Hi Srikant,
First let me acknowledge that your articles are really informative and it really gives a lot of clarity for the “DIY” investors like me….
Following are my details
Age – 29 Years
Children – 1 (2.5 years)
Financial Goals
Building corpus for Child’s Education
Building Corpus for Own Business (6 years -10 lakhs )
I am relatively new to Mutual Fund investments and these are my current investments on a monthly basis.
Direct Equity Exposure – 2.5 Lakhs (Shares of Asian Paints)
Life Insurance
Term Plan
HDFC Life Click 2 Protect – 1 crore (Insured value)
Other Insurance plans
LIC – 2000/Month (all plans put together)
PPF – 20000/Year
Health Insurance – Provided by Employer
MF – SIP’s
ICICI Direct Focused Blue chip – 1000/month (10 year horizon)
Franklin India Smaller Companies Fund GROWTH – 2000/month (10 year horizon)
I wish to increase my MF investment contribution through SIP route, kindly advice what is the extra money that i need to allocate out to accomplish my goals
Looking forward for your valuable Inputs….
Regards
Saran
Dear Saran,
Thank you for your appreciation.
Do you own only one company shares? Kindly list out names of the LIC plans.
Suggest you to buy a health plan (self/family floater) at the earliest. Read : Best Health insurance plan comparison websites.
Invested MFs are good.
Kindly read my articles to know about the additional investment that you may have to do;
Retirement planning in 3 easy steps
Kid’s education goal planning
Calculate Future Value of investments.
Hi,
Thanks for your reply
– Yes i own 1 company share only
– LIC holding are as follows
1) Jeevan Anand – 25000/year (Sum Assured – 6,00,000)
2) Jeevan Surabhi – 14502/year (SA – 1,60,000)
3) Endowment Assurance – 6894/year (SA – 1,00,000)
4) SBI Pension plan – Discontinued after 5 years payments (12,000/year)
Since i have a health insurance cover from my employer, do i need to take additional policy on the same.
Dear Saran,
Asian paints is a good stock to own, consider holding it for long-term.
You can either surrender LIC plans or make them PAID-UP. Get rid off unwanted life insurance policies.
Read :
Term insurance Vs Traditional Plans
How to get rid off unwanted or mis-sold life insurance policies?
Do not depend on Employer’s group health cover alone, it is advisable to have an independent health insurance cover.
Read my article on “Best Health insurance plans comparison websites” and shortlist suitable health insurance plan.
Hi Srikant,
Thanks for your reply….
Will review the LIC plans & do the needful corrections as suggested, morover can you suggest me a good MF to stay invested for a period of 15 years depending on my profile.
Regards
Saran
Dear Saran,
For a 15 year time frame, you may consider investing in Equity diversified and mid-cap funds.
Ex : Franklin smaller cos fund/ UTI midcap / DSP micro cap etc.
Franklin primaplus / ICICI Dynamic / Franklin Highgrowth etc
Hi,
I would like to start an ELSS primarily to save tax. I am a central govt employ.
I am thinking abt the foll options:
1.Axis long term equity fund
2.Religare Invesco Tax Plan
3.Tata Tax Advantage Fund
I plan to do an SIP of around 1000/month each in the above funds to start with.
Any suggestions??
Dear shiju,
Kindly go through my article : Best ELSS funds.
You may invest in one ELSS fund.
Hi Sreekanth,
Thanks for such an informative article/s. I m 35yrs, Honestly to say I m new to these Mutual funds, and planning to invest 15k/m through sip,the purpose of investments is for daughters education. Kindly can u suggest some long term funds (10 yr) and also (5yr)and to what proportion.which would be better for good and healthy returns.
Dear fredrick,
For 10 year goal : You may consider one balanced fund & one Mid-cap oriented fund (Ex : Hdfc balanced fund/TATA balanced fund & Franklin Smaller cos fund / UTI Midcap fund)
For 5 year goal : Consider one balanced fund.
Kindly read my articles;
Best balanced funds
Kid’s education goal planning
Best Term insurance plans.
Hi Sreekanth,
Nice to see you back and active .
Please find below my ongoing MF direct investment monthly sip details:
Tata balanced fund -direct growth- 5 k
ICICI pru focussed bluechip fund -direct growth- – 3 k
Franklin India prima plus -direct growth -4 k
ICICI Pru dynamic fund-direct growth-4k
HDFC Mid Cap opp fund-direct growth-4 k
Franklin India smaller co’s fund-direct growth-3 k
The above funds are ongoing with a horizon of 10 years for my elder daughters post grad education
HDFC Mid Cap opp fund-direct growth-5 k monthly sip ongoing (20 yrs horizon for my younger daughters marriage)
Franklin India high growth co’s fund-direct growth-6k monthly sip ongoing (15 yrs horizon for my elder daughters marriage)
Need your advice on a monthly sip of 15 k f ( investment horizon of 15 years) for my younger daughters post grad education.I was planning to invest 5 k each in a debt oriented fund(ICIC pru long term growth),balanced fund (HDFC balanced fund) & a ELSS fund (Axis long term equity fund) -assumption based on a return of 12 % post tax and hence a corpus of 65-70 lacs at the end of this invetsment term of 15 yrs.Education inflation taken at 10 %.
Would appreciate your advise on the same.
Thanks & Regards,
Roy
Dear Roy,
Appreciate your proactive planning and analysis.
Independently each of the above listed funds are good ones. But you may consider trimming your portfolio a bit. It is not advisable to invest in multiple funds from same fund category.
You may use “MF portfolio checker tools”.
By the by, do you have sufficient life and health insurance covers??
Good morning Sreekanth,
Thank you for your guidance.Basis the info on funds shared with you is the below plan ok to meet meet the goal mentioned.From the below mentioned funds franklin & tata are already ongoing to meet other goals and hence to avoid overlap will allocate additional amount.The only new fund will be axis elss ( want to add a elss to the portfolio as i want to exit HDFC tax saver )
Franklin India Smaller Co’s fund-Direct growth : 4k
Tata balanced fund -Direct growth: 6 k
Axis long term equity fund-direct growth:5 k
We do have a family health insurance cover from Bajaj Allianz .
Thanks & Regards,
Roy
Dear Roy,
What about Life insurance cover?
Read my article on : Super Top up health insurance plans.
Hello Sreekanth,
As mentioned we have a health insurance in place with a top up which amounts to 28 lacs.No life insurance cover in place .Could you please advise on a life cover as i am 46 yrs old.
Also your suggestion on the 15 k sip too.
Thanks & Regards,
Roy
Dear Roy,
Your first priority is to buy a Term insurance plan and one stand-alone Personal Accident plan.
Kindly read my articles :
Best Term insurance plans
Best Personal accident plan.
Selected funds are good ones.
Hello Sreekanth,
Thank you ,the referral articles were very informative .I am looking at Apollo Munich as far as personal accident plan goes and the online LIC term insurance plan.Please advice if these are ok.
Is the allocation on the mutual funds ok (15 k split).
Thanks & Regards,
Roy
Dear Roy,
Kindly go ahead with your plans.
Allocation looks good.
QUERY ABOUT FUNDS STILL MOVING SIDEWAYS:
Hi Sreekanth, your blog is very informative & helpful.
Also referring few other sites Recently I have done investment trough Funds India
in the following
Franklin India Bluechip
Franklin India Prima Fund
HDFC Equity Fund
HDFC top 200 fund
Reliance Growth Fund
Have invested in liquid funds of the same AMC & doing VTP of 10k for each of the above funds. Horizon will be atleast 5 years.
Other than above I have abt 30Lakh in FD , 10m worth real estate, excluding the apartment i am staying.
So I can go for some risky investments.
I have question about the funds with the lower fund.
I understand & agree completely with the NAV of the fund does not matter, as the return will be in the percentage of nav based on the performance.
While going trough long term charts of various funds I have noticed that few of the goods funds were were moiving sideways for a longtime, before going up. The side way movement is usually at the initial years & also for the bearish market.
But the funds have returned a phenomenal figures, due bull market as well as fund managers efficiency.
Examples:
Reliance Growth fund : If the graph for the
Since inception on Oct’95 till Oct2002 – the growth was slow – total return was below 100%.
But from 2002 Oct till today the absolute growth is 40 times – in 13 years.
if someone had invested
10000- on Oct’02 in Reliance Growth, it would have become – 4 lakhs today in 13 years.
So once the side wise movements are is on the up rise, the funds get a momentum, this can judged on the basis of
The AMC, Fund Manager, asset allocation, Category ( have to be equity diversified) also may be few other factors other than performance – which might do well in future.
Understand this is will be a very risky investment One Single fund can compensate for all other, as well as appreciate the toal investment by 10 times at least.
If investment is done five funds & at least one is successful also, it will be a very high return.
I have checked few funds which might fall into these category:
1. Reliance Small Cap Fund – after side wise movement for 4 years, presently it has up by 160% in last 2 years.
2. Reliance long term equity fund – side wise for 7 yeras (40%), going up for last two years
3. Reliance Capital Builder Fund-A-G
4. Goldman Sachs India Equity Fund-G
5. Birla Sun Life Pure Value Fund-G
There may be many, I am sure, your judgment will be much better than mine
Trust I could explain my thinking – kindly suggest names about five funds which are suitable for the above criteria.
Dear Saikat,
Equity funds will have Sideways movements, but the point is funds which can give better Returns with low Standard Deviation over a long period of time can be the best ones to invest.
Franklin India Bluechip – Largecap
Franklin India Prima Fund – Small/Midcap
HDFC Equity Fund – Diversified
HDFC top 200 fund – Largecap
Reliance Growth Fund – Diversified.
You have two largecap and two diversified funds. There is high possibility of Portfolio overlap here. Kindly read my article : “Tools to analyse MF portfolio overlap“.
Consider including one Balanced fund.
Any specific reason for maintaining Rs 30 Lac in FD?
Dear Sreekanth,
Thanks.
I have realised there are few stocks which are over lapped, will keep it in mind, before further investments.
The FD’s were done about two years back, while the annual interest was 9.5%. will be reducing gradually, for changing over to funds & stocks.
Appreciate all your articles – which are quiet informative.
Will consider balanced fund also for the next investment.
Presently continuing with only above five funds maintianing the VTP, the horizon will be min. 5 years, looking for a 20-25% return after 15-20 years time.
Thanks & best regards.
Saikat.
Dear Saikat,
Kindly note that it is next to impossible to pick good funds with NIL portfolio overlap, the key point here is.. too much overlap is not advantageous.
Hi Sreekanth,
I would like to thank you for your wonderful job and genuine articles. Your website helped me to financially plan ahead my future and life. Please keep doing this great job and I wish you and your team a grand success.
I am currently investing in Mutual Funds through SIP vide Axis Demat A/C as following since a 2 months ago : (All are Direct-Growth option and each 25K for 5 yrs and purpose is wealth creation, My age is 27)
1. ICICI Prudential Focused Bluechip
2. HDFC Mid-cap Opportunities
3. Franklin India Prima Plus
Could you kindly advise whether the selected options are worth and how long should l keep invested for best returns.
Looking forward for your humble feedback and advise…
Once again please posting articles and I shall regularly read it…
Regards,
Anupama S
Dear Anupama,
Very happy to know that ReLakhs.com helped you in planning your personal finances. Thank you for following the blog’s articles 🙂
Just wondering, are you sure that these are ‘DIRECT’ MF schemes?
Have your created these SIPs for any specific financial goal of yours? (or) is your investment objective is to create long-term wealth (say for a period of 10 years or so from now)?
By the by Invested funds are good ones.
Ya Sree, im sure those r direct option… and yes my goal is to keep the investments 10+ yrs…
Dear Anu,
Carry on with your investments, these are good ones.
You may consider adding one Balanced fund to your portfolio in future.
Hi Sree, Im sorry to bother you… I am just confused with what you have asked me regarding the ‘direct’ . Could you explain to me because while doing online through my demat ac (axis direct) i selected Direct instead of Dividend. Is there something else… im just getting worried if i done anything wrong in my investments? Is is worth to do through the Demat A/c or will i be charged a lot?
Really apologies to bother you with my worry…
Dear Anupama,
Kindly read my latest article on DIRECT mutual funds and revert to me if you need more info.
Hi Sreekanth,
I want to invest for 5 years throgh sip in mutual fund. i can invest Rs 10000 per month.
please suggest me some funds.
Dear bikash,
Consider one Balanced fund and one Diversified Equity fund. Ex: HDFC Balanced fund & Franklin Prima Plus. You may allocate more funds to balanced fund.
Dear bikash,
Consider one Balanced fund and one Diversified Equity fund. Ex: HDFC Balanced fund & Franklin Prima Plus. You may allocate more funds to balanced fund.
Dear Sreekanth,
I have selected below funds .Some for 5 years and some for more than 5 years.
1- ICICI Prudential Focused Bluechip Fund-Direct Plan ( G) -Rs.2000
2- ICICI Prudential Value Discovery Fund- Direct Plan (G) -Rs.2000
3- ICICI Prudential Balanced Fund- Direct Plan (G) -Rs.2000
4-HDFC Prudence Fund-Direct Plan (G) – Rs.2000
5-IDFC Premier Equity Fund – Regular Plan (G) -Rs. 2000
And after six months depending on the performance I will increase the SIP amount or think for other funds.
What is your view?
Thanks,
Bikash
As large cap Funds are buying more stocks as per news ,shall i consider them grow better than other funds.I am also interested in franklin India bluechip fund.
Dear Bikash,
Kindly let me know which are the funds for < 5 years and > 5 years??
I believe that one balanced fund is enough. The fund manager of IDFC fund has recently changed, it is advisable to invest in some other mid-cap fund (assuming you have not yet started the SIPs).
Hi Sreekanth,
ICICI Prudential Balanced Fund- Direct Plan and HDFC Prudence Fund-Direct Plan for less than 5 years. I may consider ICICI Prudential Value Discovery Fund- Direct Plan depending on the situation.
Icici bluechip and IDFC equity funds are for long term.
I have a education loan of Rs. 2,52,000 . Will it give me tax benefit ?
Main aim is to repay the Loan and have a some money if surplus.
From next year I will be in Income tax slab 1.
please suggest .
Shall i consider some arbitrage funds and short term debt funds?
If so please suggest some funds.
Bikash
Dear Bikash,
Under Section 80E you can claim tax deduction benefit on the interest payment of your education loan.
Kindly let me know your age, do you have any dependents?
Check for portfolio overlap before investing in the above good funds : Check Portfolio overlap of MFs.
Dear Sreekanth,
I am 23 now.No solid dependents.
Shall i get tax benefit from mutual fund’s capital gain based on my education loan?
Based on this please suggest me some good funds.
Thanks
Dear Bikash,
There is no link between MF capital gains and your Education loan.
The interest amount paid on your educational loan can be claimed as tax deduction under Sec 80E.
Whereas the Long term capital gains (if any) from MFs are tax exempted.
Read my article : MF taxation rules.
Dear Sreekanth,
then in which scheme i should invest??please specify the names of the scheme.
bikash
Dear Bikash,
You may consider investing in HDFC prudence / HDFC Balanced fund to start with. Once your income is in taxable limit, consider investing in an ELSS fund like Franklin Taxshield to claim tax deduction.
Hi Sreekanth, Great informative article. I have already started sip in below funds from 2015. Now, I want to invest extra 4000 pm in some midcap or small cap or Balanced fund(my age is 29). Please suggest one more good fund for long term(5 to 10 years) investment. I have selected “Franklin India Smaller Cos Fund-G”, but there is 30% overlap with HDFC mid-cap. Please suggest one good fund. Thanks.
HDFC mid-cap opp. growth (MidCap) – 3000
ICICI focused bluechip growth (LargeCap) – 3000
Dear Rajesh,
You may consider investing in a balanced fund . Suggestions : TATA Balanced fund / HDFC Balanced fund.
Dear Sreekanth,
Thank you for the detailed analysis and insights. I have a question on the returns percentage mentioned by the various fund houses. Let me explain my question with an example. Let’s take Franklin India Prima Plus as our example. This fund has delivered an annualized return of 18.83% (10 year horizon). For discussion sake, let’s assume that the fund’s expense is 2.5%. What is the real return of the fund? When we say that the return is 18.83%, do we need to reduce 2.5% from the returns published in the Scheme documents to get the actual returns (i.e. the real return is only 16.33%)? Or, is it the case that the expenses are already factored in the Return % computation?
This may be a novice question, but that is what I am right now. Highly appreciate your inputs.
Thanks
Dear Ramesh,
The expenses are already factored in the NAVs (Net Asset Values).
Hi Relakhs Experts,
I want to accumulate money for the downpayment of a house by end of 2020. I am planning to start investing from 2016 onwards. I have zero investments and savings till date, except for ppf and epf which is for retirement planning. My age is 32
Goal: To buy a house worth 80 Lakhs to 1 Crore by 2020. Need money for down payment and misc. expenses of anywhere in the range of 30 to 40 lakhs by 2020
Investments: Plan to invest Rs. 33000 per month. Can invest in mid cap, small cap as well. Browsed through a few mutual funds report on your website and other websites. Came across some common names for high rate of returns proportionate to its volatility. MF’s like ICICI Value Discovery, Franklin India Smaller Companies, Franklin Prima Plus, ICICI Pru Dynamic Fund, UTI Midcap, HDFC Midcap
Tenure: From Jan 2016 to Dec 2020 (5 Years)
Question:
1. What would be a good mix in the above mentioned funds and in what proportion?
2. Are there any other funds you can suggest?
3. IF not these funds, what do you suggest and in what proportion?
Dear Xerxes,
Do you have any family member(s) who are financially dependent on you? Do you have sufficient life insurance cover?
I believe that retirement planning should be your top most priority.
Kindly read below articles;
Retirement planning made easy
The 6 most common financial planning mistakes
Calculate future value of your investments
Financial Planning pyramid.
hi,
we have some emergency fund which we will used in a better way that’s why we choose some liquids mutual fund as follow;
* dsp-br liquidity fund ip(g)
* icici pru money market fund (g)
*hdfc liquid fund g
* axis liquid fund g
so in which fund we go with them to invest contingency fund which is around 1.1 lac so kindly do suggest to me asap..
apartfrom we are doing some long term investment thru mutual fund (SIP) PLANS are also see is it any change required in these funds , we are doing sip from 2 yrs
* birla sun life MNC fund g —- 1000 pm
* icici pru focuesd blue chip equity fund g ——- 1000pm
* idfc premier quity fund regular plan —- 2000 pm
* hdfc equity fund —- g —— 1000 pm
* reliance equity oppotunities fund g — 1000 pm
* BNP Paribas long term equity fund g — 2000 pm
Regards
Rahul
Dear Rahul,
Why did you choose 4 debt funds for maintaining your emergency fund?
Regarding the equity funds – Kindly go through my article on ‘MF portfolio overlap analysis‘ to trim your portfolio.
The fund manager of IDFC Premier equity fund has changed, so keep an eye on its performance for next 1 year or so.
hi everyone…. I am new in this and eagerly wants to invest in SIP thru Mutual funds Equity scheme for long term 20years t0 40years also upto retirement.
Please some one suggest me very soon. 9779377756
Name: Ankur
Age: 26years
Profession: Engineer
Dear Ankur,
You can invest in 2 to 3 funds for long-term wealth accumulation.
You may consider these funds;
Mid cap – HDFC mid-cap / UTI mid-cap / Franklin Smaller co’s fund
Diversified – Franklin prima plus / ICICI Dynamic fund
Balanced fund – HDFC balanced / TATA balanced fund.
Sir, I (age-26) want to start invest in MF through SIP with amount 500/month for 30 to 32 years. Please suggest the best SIP plan which is of low risk and where it is not necessary to constantly checkup. I am first time going to start in MF so please also suggest me that whether I can increase my monthly investment in future? If it is YES, then how?
Also I want to know that if anyhow I failed to invest in future, what will happen?
Dear Suman,
You can skip/pause your future SIPS, no worries. You can also increase your SIP amount and also can purchase additional Units of the same fund.
Suggest you to start with a SIP on Balanced mutual fund like HDFC balanced fund.
Read my article on : Top Balanced funds.
SIR, I’VE RECENTLY INVESTED
1.) 1,00,000/- IN DSP BLACKROCK MICRO CAP FUND (G)
2.) 70,000/- IN RELIANCE SMALL CAP FUND (G)
3.) 20,000/- IN ICICI PRU EXPORTS & OTHER SERVICES FUND (G)
HAVE I MADE GOOD CHOICES?
Hi Manish,
you need to inform few things like
What is your age & investment horizon & risk appetite.
Also, I guess you have invested the surplus as lumpsum. Investing lumpsum in equities makes it risky, especially in this kind of volatile market. Also, 2 of your chosen funds are small cap (DSP BR micro & reliance small cap) & ICICI Xport fund is basically a type of sector fund (pharma & IT).
Although all these 3 funds are performing well, the smallcap & sector fund has made your investment even more riskier.
STP option inspite of lumpsum & mid or diversified fund (ICICI Discovery, UTI mid cap, HDFC Midcap, Franklin High Growth companies fund etc) instead of small & sector fund would have been much more smarter option.
Hi Shreekanth,
I have two investable surplus in hand.
Component A- 2 Lakh for tenure 15 to 18 months,
Component B- 50k for tenure 3-5 years
I fall under 10% Income Tax bracket & I want lesser risk with secured return for both the components.
Which of the 6 categories will be best for me with respect to best return in minimum risk? (Nett return after deducting Exit load, Income tax, capital appreciation tax & indexation wherever applicable)
1. Medium to Long term Gilt Fund
2. Short Term Debt fund
3. Long Term Debt Fund
4. Ultra short term Debt Fund
5. Liquid Fund
6. Govt Bank FD
Kindly Suggest.
Regards,
Deb
Dear Deb,
If you want ‘secured’ return then Govt bank FD suits your requirements.
But for 3 years horizon, you may consider MIPs. Kindly read my article – “Top MIP Schemes“.
Sir, I have read ur review and planing t0 invest in Mutual fund first time. I have short listed some fund by ur review please guide me..
1.ICICI VALUE DISCOVERY FUND : Rs.1000
2.AXIS LONG TERM EQUITY FUND (TAX SAVING) : Rs.500
3.MIRAE ASSET EMERGING BLUECHIP FUND(G): Rs.1000 (FOR 5yrs)
4. FRANKLIN INDIA HIGH GROWTH COMP FUND : Rs.1000
5.UTI MNC FUND : Rs.1000
6.BIRLA SUNLIFE FRONTLINE EQUITY FUND : Rs.1000
7. HDFC TOP 200 : Rs.1000
8. HDFC EQUITY : Rs.1000
I want to invest in 1 tax saving & 4 Equity mutual fund for 10 years minimum& TOTAL amount for all funds Rs.4000 to Rs.5000 per month. please guide me select good fund from my list or your best suggestion..i am waiting for your reply as early as possible.
Feel free call us we will suggest you better for your.
9555508393
Ok sir..i will call u ..
Hi expert,
I am 33yrs and my net monthly saving is 75000/-.
My investment details are below:
1) LIC Jeevan Anand annual premium 103000/- from last 3 yrs. total sum assured 25 lakhs.
2) Liability – 7 lakhs
Planned monthly investment 20000/-
Kindly suggest some of the best funds to invest (SIP) for a flexible term of 3-10 years in order to yield best returns
Regards,
Shiju
shree, I invest sip HDFC TOP 200 – 1000 ( last 41 months) , new purchase may 2015 HDFC Balance – 500 , Uti MNC – 500, Uti opportunities – 500, SBI blue chip(G) – 500, I purchase new sip 1000 monthly, plz suggest me new fund.( total investment next 20 years regular I need 1 k for my daughter)
Hi,
I am 31 years old & my take home salary is 50,000. I am married & i am the only salaried person in my family. But i dont have much liabilities as my parents get money from a P.G. business which we have in our home town.
I am planning for my investments now.
My Investments & savings till date:-
1- 2 lacs in FD & RD
2- Total amount of Rs. 1 lac is in my ppf account. I started investing in ppf 3 years back.
I need more suggestion from you. Listed below are my plans of investment but please guide me how to invest it in better way:-
a- Planning to Invest in Mutual funds through SIP but need some suggestion that which mutual funds will give more return as well as give tax benefits.
b- Planned to invest in house or land but not yet decided.
Hello,
I want to start invest in MF through SIP with amount 5000/m. Please suggest the best sip plan. I am first time going to start in MF so please also suggest me that I invest in one scheme or more than one scheme.
You can Start SIP for the below Plans:
1) Axis Long Term Equity – Direct – Growth : Rs. 2,000.00
2) HDFC Balance Fund – Direct – Growth : Rs. 1500.00
3) Birla Sunlife Frontline Equity – Direct – Growth: Rs. 1500.00
Time Horizon: Minimum 10 Years so, you will get better returns.
Dear Sreekanth,
I have a kid around 4 years old. We are thinking to save around 15000 per month for his higher studies. We have a time horizon of 15 years. So i am thinking to invest in Long term euities. Is it better to invest whole 15K in euities or do i need to break it as balanced and euities. Please suggest some good funds for my long term plan
Thanks
i am working in government sector my salry is 50000 per month i am a woman age 33. i can invest 10000 per month for 10 years ..dont have much knwledge ..please suggest SiP with good return and pros and cons.. .
It’s good that it time horizon is 10 yrs & ur age 33 so u can invest it money 60 % high risk & 30% mid or low risk but u r New in this field so 50 to 70 % money invest in balance fund & rest to equity (G)fund.some fund suggested for u.balance fund hdfc balance (G) fund &icici pru balance G fund,equity fund r uti equity growth fund , uti opportunities growth fund & hdfc equity growth fund
Here we are providing a platform where in you can compare plan as per your and as per your need. So please call us. We will suggest you better plan.
Contacts here
9555508393
hello expert, I am 31yrs and my monthly take home is 70000.
My investment details are below:
1) PPF full amount from last 4 yrs.
2) LIC jeevan anand yearly premium 20500. from last 4 yrs. total sum assured 5lkhs.
3) RD of 10000 per month form last 3 years.
4) Home loan EMI 12000 per month from last 6yrs. Planning to payoff now. total principle remaining around 5lkhs.
My goals:
1) I am planning to switch my RD amount into mutual fund now for long term around 15yrs to 20yrs.
My view :- I have shortlisted few of funds like : (they are best as per today’s market. later on I can switch to other funds also. ) I have focused on diversified fund. because sector funds have high risk. but offcourse I can add pharma and fmcg funds also .
SBI bluechip : 2000
SBI Magnum Balanced Fund : 2000
Franklin India High Growth Companies Fund : 1000
JPMorgan India Mid and Small Cap Fund :1000
ICICI Prudential Value Discovery Fund :1000
Franklin Build India Fund :1000
L&T India Value Fund :1000
Canara Robeco Emerging Equities :1000
2) Planning to buy second home in next one year. I already have home which is worth 1crore.
My view :- Planning to buy home of around 40-50lkhs. Home loan will be half at max. 25lkhs.
for it EMI will come of around 25000 per month. though rental income is not full proof income.
but on lower side i will expect 10000 as rent. so effective emi will work out 15000.
In worst case like delay project or no rental also i can hold property.
Kindly suggest your view about my planning. Put some light for property buying and any other good fund i can add.
Regards,
Ravi
Sir,I want to invest in mutual fund ,I am new investor .I want to create 30 lac corps in next 10 year. Please suggest me best mutual fund and how much every month investment required.
Hello Sreekanth, Awaiting your reply. Thank you.Roy
Sir,
I want to know which mid cap fund is better between ICICI pru value discovery fund or hdfc mid cap opportunities fund. I have already ICICI prudential focused blue-chip equity fund and hdfc balance fund. My time horizon is 17 year’s
As u have written that ur time horizon is 17 yrs so it both fund is good.u can invest in anyone in uti or hdfc midcap (G) fund
sir, my sip investment HDFC top 200 – 1000 / month ( last 40 months) ,new purchase May 2015 HDFC balanced – 500 /month, uti MNC (G) – 500 / months , uti opportunities – 500 months , SBI bluechip – 500/ months, total 3000 month , this investment next 20 years regular, what’s the minimum – maximum total fund value,
sir, my sip investment HDFC top 200 – 1000 / month ( last 40 months) ,HDFC balanced – 500 /month, uti MNC (G) – 500 / months , uti opportunities – 500 months , SBI bluechip – 500/ months, total 3000 month , this investment next 20 years regular, what’s the minimum – maximum total fund value,
U have good portfolios.u can calculate ur return 13 -17 % annually
Dear Sreekanth,
I’m planning to start an SIP for my two daughters ( 19 & 21 ) for an amount of 10000 per month. Can you suggest some funds for me ; usually how many funds is it desirable to invest in and more importantly ones where its not necessary to constantly checkup on since I don’t think they will. Start early is the mantra so I thought it would be wise to start investing for them now and later they can continue once they start earning.
U can invest ur money in three fund -uti opportunities(G),hdfc balance (G) &icici pru dynamic (G) fund.G stand for growth fund.u can also see for anyone midcap fund
Hi I would like invest in mutual funds. Can u suggestions me which fund is good performance. My investment should be 5k
Hi Sreekanth,
Thanks for your informative topics related to mutual funds. my portfolio is
1. Hdfc balance
2. Hdfc midcap
3. axis long term equity
Have lump sum investments in
SBI Emerging
Reliance Pharma
Reliance MIP
I have a horizon of 10 years, is it fine or do i need to do any changes
Pradipta
Hi Sreekanth,
At the outset, I congratulate you for your expert guidance offered to investors on a regular basis.
I am 45 years old. I am working as a Zonal Sales Manager in a reputed private company. On seeing your blog, I got interest in investing in MFs. I have not placed my hand in MF so far. I can invest Rs.One lac lumpsum for a period of 3 years. There is no goal for this fund. My only purpose is to get good returns on this amount. Since I am new to MF, please suggest me the fund name so that I can invest in that fund.
Further, to start with I am also interested in investing in SIP funds. I can allocate Ra.3000/- p.m. for a period of 3 years. Suggest me a good fund name for SIP investment also.
Thanks and regards
Nagarajan
Thanks and regards
Nagarajan
Hi srikanth,
Pls reply to my message dt.september 11, 2015
Regards
Nagarajan
Dear Nagarajan,
May I know why is that you are limiting the time-frame to 3 years for both lump sum and for SIP investments? Any specific reason?
Sir,
I want to invest through SIP 2-3k p.m. for 10 yrs, which scheme is good for high returns.
thanks
virender singh
Hi.
Sir I m.35yrs old. I have no.idea to.invest. I.may invest at.least 3000.pm. suggest me way. Which one mutual fund will.b best 4 me to take.good return.after 15 yers.
Hello,
I am new to this type of SIP investment & scare of market risk.
I earn good salary and would like to make some investments in SIP for around Rs.5000/- pm.
Investment term would be around 5 years.
Could you please suggest which plan will be suitable to invest?
Thanks
my time bar is 15 years and i want to keep investing in MF through SIP Rs 2000/- per month for next 2 yrs in two parts-i) in equity fund ii) in balanced fund and gradually increase my SIP amount.Pls suggest me.
Sir,
I am investing 5000 PM for UTI equity, 5000 for Franklin small companies and 5000 for HDFC mid cap fund. Now I wanted to add 5000 PM each for ICICI export & other services and UTI MNC fund. My time horizon is minimum 12 year (kids’ education).
I have checked many sites e.g. Money control, Value research etc. and different tools for return calculator.
In short and medium term e.g. 1 year, 2 year, 3 year, 5 year and 7 year these two fund(ICICI export & UTI MNC) has given very good return and always in top 10. Also these two funds are classified as diversified fund in Money control and consistent Rank 1.
Can you please suggest if I can invest in these two funds?
Thanks & regards
Vivek
HI sir I m aged 29 yr and want to invest rs 8000/month thru SIP for a tenure between 10-15 yr ,motive is wealth creation ,kindly guide.
I MM 35,MY SON 2 YEARS,I AM INVESTING RS1000 FOR BOTH HDFC EQUITY FUND &HDFC MID CAP.. THROUGH SIP.PLS SUGGEST SIP FUNDS FOR LONG TERM-CHILD EDUCATION&MY RETIREMENT
Hi Srikanth,
you are articles very good and informative. I have recently started investments into Mutual funds. I am planing to invest monthly 20000. Please review my funds and let me know if i need to add any new funds to my existing portfolio and also suggest me % allocation to each fund. time horizon is 15 years .
Below are the fund i have started investing.
1) ICICI Pru value discovery fund—2000
2) UTI Equity fund–4000
3) Axis Long term equity –3000
4) Tata balanced fund–3000
Thanks
Mani
Dear Mani,
As you have an investment horizon of 15 years, you may allocate more money towards ICICI Value Dis instead of Rs 4k in UTI equity fund.
Sir, I am 26, employed. Till now, my investment has been FDs and a couple of life insurance. I want to invest in mutual funds. But am afraid as I have almost nil market knowledge.
Aim: long term wealth creation (10-12 yrs).
Present salary: 40k pm..
Need your sincere guidance.
Regards
Ashishh
Dear Ashishh,
I have replied to your email..kindly check 🙂
Hi,
I invested 4000 in ICICI midcap and 3000 in hdfc balanced fund through SIP.
I want to invest 4000 more.
Please suggest one/two good fund. So that good portfolio will create.
Time horizon is 7-10 years
Selected icici pru export and services fund for 2000 sip. Is it good fund?
Dear Amit,
You may opt for Franklin Prima plus..
Hello Sir,
I am 41 year old and wanted to invest 50000 PM in mutual fund via SIP. I am already having term, health insurance and no outstanding loans. I am having FD /Debt/PPF and PF of about 15 lakh.
My Goal is RS 20 lakh after 9 year for my son graduation, 50 lakhs after 13 year for higher education and then build corpus for retirement (age of 55).
I have selected below fund with goals.
1. LARGE CAP –ICICI focused blue chip – RS 7000 PM – For Graduation (continue after for higher education and retirement corpus)
2. Balance fund – HDFC Balanced fund – Rs 8000 PM – For Graduation(continue after for higher education and retirement corpus)
3. Franklin High growth companies – Rs 17000 PM – For higher education (continue after for retirement corpus)
4. HDFC mid cap –Rs 18000 PM for retirement.
Please advise me if the distribution of money and fund is correct.
Thanks & regards
Mahesh
Dear Mahesh,
The selected funds are good for the mentioned time-frames.
For 2nd point – You may consider one Equity diversified fund too as the goal year is 13 years from now.
Suggest you to kindly read below articles;
Kid’s education goal planning
Retirement planning in 3 easy steps
Calculate future value of investments.
sir, I purchase HDFC top 200 fund sip 1000 mly last three years, May 2015 se 2nd HDFC balance fund 500 mly, 3rd uti MNC 500 mly, 4th uti opprtunities 500 mly, 5th SBI blue chip fund 500 mly,,,regularly next 20 years, I give 1 crore rupees this is possible & what’s changes, plz reply my mail Id …..
Dear Vishesh,
All funds are good but you may check for ‘Mutual fund portfolio overlap‘ among these funds.
The selected funds are good ones.
Kindly read my article on : ‘Calculate future value of your investments..‘ to check if accumulating Rs 1 Cr is possible or not.
Dear Sir,
Pls give ur advice on following
portfolio.
I am 30yr. old……. investment period >10year.
(1) uti equity 1000/- pm
(2) Franklin higher growth comp.-500/-pm
(3) Franklin smaller comp.-1000/-pm
(4) hdfc midcap-1000/-pm
(5) uti mid cap-700/-pm
(6) axis long term and Franklin taxshirld- lumsum for tax purpose.
(7) hdfc balance- lumsum when market down >200.
(8) uti transportation and logistics-lumsum when market down >200.
pls advice its ok or any changes required in it.
Dear Prem,
Kindly go through my article on : Mutual Fund Portfolio Analysis tools and try to trim down your portfolio to 3 to 4 funds.
Kindly revert to me if you need any assistance.
Dear sir,
I decide to change portfolio like
(1) Franklin higher growth
comp.-500/-pm
(2) Franklin smaller
comp.-1000/-pm
(3) hdfc midcap-1000/-pm
(4) axis long term and Franklin tax shield- lumsum as per required.
(1) its good to invest 1000/- in hdfc midcap & 1000/- in Franklin smaller comp. or invest 2000/- in only one fund… if one then which
(2) pls suggest its ok or required any changes….
Dear Prem,
The list looks fine. If you have already invested in Franklin Smaller fund, invest the additional Rs 2k in the same fund.
Hello,
I have invested in Axis Long Term Equity Fund Growth as a SIP amounting to Rs 5000 per month. now i also want to invest same amount as SIP in Franklin India Taxshield. But the problem is there are about 20-25% Portfolio overlap between the two fubds. Is this overlap okay? Should i Go for the investment? Please do suggest another Fund . thanks in advance.
Dear Tarun,
If your investment objective is for tax saving and long-term wealth accumulation then invest in Axis itself.
If your investment objective is just long-term wealth accumulation (>10 years), go for a mid-cap oriented fund.
Hello Sreekanth,
Good Afternoon ! I want to invest in a sip of Rs.5000/- pm for a period of 15 yrs as a plan towards my daughters marriage.
Please advice as to the category of MF’s i should look at and also whether i should divide this amount among 2 -mutual funds or stay put with 1 mutual fund of 5000/- ( i already have a sip of 23,000 divided across 6 mf’s towards my daughters education)
Thank you .
Roy
Dear Roy,
Kindly list out the existing MF scheme names.
You may read my articles;
Kid’s education goal planning tool
Mutual fund portfolio overlap analysis
Calculate Future value of your investments.
Hello Sir, Good morning,details as below, Tata balanced fund-5 k. Icici pru focussed blue chip fund-3 k. Franklin India prima plus-4 k. Icici pru dynamic fund-4 k. Hdfc midcap opp fund-4 k. Franklin India smaller cos fund-3 k. The above 6 funds have been invested in over a 10 yr horizon for my daughter’s post grad education. I would like to invest 6 k -15 yrs and 5 k -20 yrs towards my daughter’s marriage. Would appreciate your valuable advice on the same. Thank you.
Dear Roy,
Invested funds are good ones. You may invest the additional amount in the same funds. For 20 years goal, consider allocating more amount in a mid-cap oriented fund like HDFC mid-cap.
Also, check the mutual fund portfolio overlap for your funds.
Hi Sreekanth,is it ok if I invest in uti equity fund-3 k & Hdfc capital builder-3 k for a period of 15 yrs purpose being my elder daughter’s marriage &.uti midcap – 5 k for a period of 20 yrs purpose being my younger daughter’s marriage. Thank you
Sir I have to invest in sip for long term for 20 years amount of rupees 30,000 per month. sir kindly suggest for my portfolio.
Dear Ajit..You may pick one fund each from mid-cap category, multi-cap and balanced fund categories.
Sir
My time horizon is 20 years
Which two funds will give high return
Tata balance fund plan A
Or
Icici balance fund
Or
Hdfc balance fund
Which two funds will give high return
Uti madcap
Or
Hdfc midcap
Or
Franklin India smaller companies
Or
Sbi midcap
Which two funds will give higher return
Franklin india prima plus
Or
Franklin india opp (g)
Or
Icici Prudential dynamic fund
or
Icici Prudential value discovery fund
Or
Uti mnc fund (g)
Or
Hdfc capital builder
Or
Dsp – Br micro cap fund (g)
Sir kindly give me direction I will be thank full to u.
Dear Ajit,
I can not predict which funds will perform comparatively..All listed funds are decent ones, you may pick one from each fund category and remain invested for 20 years (keep monitoring the fund performances).
i have invested 30,000/- in UTI MID CAP DIRECT GROWTH fund is it good to stay invested in this fund, for next five years.
Dear Mukesh..you may remain invested..
Sir,
I am a NRI, Age 34 planning to start SIP of Rs. 5000 per month for 20 years. Please recommend some good funds for long term.
Thanks
Dear Subin,
You can consider two funds – one mid-cap fund and a equity multi cap fund. EX : HDFC Mid-cap opportunities fund & Franklin Prima plus.
Which of the above is tax-free?
Dear Bhagwan..ELSS funds are tax saving ones.
Hi Sreekanth
I am planning to invest in following mutual funds for 5 yrs or more. In future i am planing to invest more for my kid’s education expenses after getting comfortable with this investments.
ICICIPRU FOCUSED BLUE CHIP fund – 2000
FRANKLIN SMALLER COMPNIES – 1000
AXIS LONG TERM Equity fund – 2000
TATA balanced fund – 2000
HDCF Balance fund -2000
Please tell me whether its fine to proceed with these plans.
Dear Valarmathy,
All are fine. You may opt for one balanced fund.
Kindly read my article on – Kid’s education goal planning.
great to see your in depth study. Need your help. I want to invest in different m/f( sip) for my son who is part of the indian tenpin bowling team , currently the national champion and 20th in the world ranking out of 102 countries. I am retired so i can be on line to change the portfolio from time to time. want to know
1. Would go for high risk m/f (sip) only
2. how often can you switch in a year without paying 15% gains tax. Can be same m/f or can we switch with any other m/f
3. If you miss to pay the fixed amount in a month what happens.
4. can you pick 4 or 5 best m/f as of today.
5. Period is for 3 years
Dear Harsh,
It is not advisable to switch Mutual funds often. Suggest you to invest in equity mutual funds for long-term wealth creation.
You can skip mothly SIP or you can pause it, no worries..
You may consider investing in a balanced fund for 3 to 5 years.
Kindly read my articles;
Top Balanced funds
Mutual fund portfolio overlap tools
Dear sir;
I am 28 year old and i have a son.I want to invest in sip 2000/- month for 10 to 15 year but do not want to take risk .Please suggest me in which sip i have to invest. I am new to this.
Dear Umanshu..Kindly follow the suggestions as discussed on Facebook Messenger.
Dear Sir,
Pls give ur advice on following portfolio.
6500 ICICI Prudential Focused Bluechip EquityFund – Regular Plan >10Yrs
4000 HDFC TOP 200 >10Yrs
5000 HDFC Mid-Cap Opportunities Fund >10Yrs
4000 HDFC BALANCED FUND >10Yrs
3500 ICICI Prudential Banking and Financial Services Fund – Regular Plan >10Yrs
2000 SBI Pharma Fund >10Yrs
50000 ICICI Pru MIP 25-Regular (Emergency Fund) upto 1Yr
Dear Arun,
Shortlisted funds are good. Kindly check ‘Mutual fund portfolio overlap‘ . You can choose either ICICI Focused fund or HDFC to 200 fund.
Also, understand the risks associated with Sector or thematic funds.
Deer,
Sreekanta
I am Bijoy mallick .32 years . I want to invest Rs 3000 /month in MFs for 20 years . which SIP will be best for me . Please give me a suggestion I will be greatfull to you.
Dear Bijoy,
Consider a mid-cap fund & an Equity diversified fund. Ex: HDFC Mid-cap opp fund/ Franklin Smaller co fund & Franklin Prima plus fund.
Dear Shrikanth
I want to invest 2000/month suggest me good plan with good returns. time frame will be 3-5 years
please do needful.
Dear Anjali,
Kindly go through the below articles;
Top Balanced funds
TOP MIP funds.
Hi,
I want to invest 3lac for 1 year or less then 1 year.please suggest best way to do this.
Also i want to invest 10k per month for long time 5-10 yrs.
Pls suggest.
Dear Amit,
For less than 1 year..consider bank FD.
For long term investment..you may consider one mid-cap & one equity diversified fund from the above list.
Thanks,
Kindly suggest the name as i am first time invester and don’t know much about MF.
Kindly suggest the name of MF as per current market conditions
Dear Amit..kindly let me know about your investment time-frame (how long can you stay invested) and about your financial goal(s)??
Around 7-10 years, for children education
Dear Amit..You may pick 3 funds – one balanced fund, one mid-cap fund and one diversified equity fund from the above list.
Dear,
Sreekanth Reddy Sir,
Iam the new one & I want to invest 5,000 Rs. per month in mutual fund for 5 years.
Please suggest me, which mutual fund is more beneficial to purchase.
Shobhan Audichya
Mob. 84610042**
Dear Shobhan..Consider investing in couple of balanced funds.
Kindly read below articles;
Top Balanced funds
Check mutual fund portfolio overlap.
Sir my time horizon is 10-15 years, and i am aware of risk of sectorial funds.
Pls check my portfolio and suggest me, how to proceed.
1. Portfolio analysis(To be add/remove/modify).
2. Plans for Emergency fund
3. Plans for Rs 5000 monthly SIP
5000 ????
6500 ICICI Prudential Banking and Financial Services Fund – Regular Plan
2000 ICICI Prudential Focused Bluechip EquityFund – Regular Plan
4000 HDFC TOP 200-G
3000 HDFC Mid-Cap Opportunities Fund -G
1500 SBI Pharma Fund-G
3000 HDFC BALANCED FUND-G
Dear Arun,
Additional Rs 5k can be invested in HDFC Mid-cap & ICICI Focused funds.
i want to invest in hdfc mid cap with a monthly SIP installment 1000 will this be beneficial?
Dear Aruta..What is your investment time-frame?
Hi Shreekant,
Thank you so much for such a dynamic & intelligent piece of information about Invesent in MFs.
I am a 24yrs old women & I want to start with SIP plans & I would like to go with 100% equity linked SIP scheme. I want to use the money invested in this scheme after 4-5yrs for my marriage. Which SIP MF scheme shall I choose to invest?
Dear Priya..Consider investing in a balanced fund and remain invested for 4 years. You can then shift to safer investment avenues till the goal year.
Thanks Sreekanth. 🙂
Dear Srikanth,
I am Raj, 40 yrs old, want to invest first time in mutual fund. Can you please suggest me some MF which can give me highest return. I want to invest around 5 k / mth as SIP for 3 to 5 yrs and looking for high risk – high return. Thanks in advance.
Dear Rajib..You may consider a balanced fund to start with.
want to put 10lac for my grand son, how do you suggest should I put all amt together or in different SIP
which SIP i should selelct
Hi Srikanth,
Thanks for your valuable information. Could you please guide on FMP & non FMP schemes.
Thanks & Regards
Suresh Kotapati
Dear Suresh,
What are your financial goals? Why do you want to invest in FMPs?
i am 29yr old women,my son is 3.5yrs old .i want to start investing in MF .my goals are
1.my sons education-15 yrs timeframe from now
2.my sons marraige-20 yrs from now
3.retirement planning-20 yrs
pls suggest how much i need to invest monthly to fulfill each goal.please suggest me the funds and also how to start SIP,its procedure,paper works etc…
Dear Sneha,
Kindly go through the below articles and revert to me;
Best term insurance plans
Kids education goal planning
Retirement planning
Financial planning Pyramid
1. At the outset, a loads of thnx for such valuable advice..a financial mentor indeed.
2. my time horizon is 10-15 yrs to cater for child’s expenses on education and realted expdr. My age is 30 yrs.. I have homed onto the undermentioned SIPs with Rs. 2000/=each:-
ICICI PRU FOCUSED BLUECHIP equity FUND
UTI EQUITY MUTUAL FUND
UTI MIDCAP FUND
TATA BAL FUND PLAN A – REGULAR PLAN GROWTH
AXIS LONG TERM EQUITY FUND.
3. plz advice if i have made the correct choice. Can i rely on the credibility of past performance of these funds actually? a frank opinion is requested based on your experience.
4. thanx again.
Dear prateek,
Invested funds are fine. Though past performance does not guarantee future out-performance, we got to take risk and remain invested in funds like these for long-term. Keep tracking these funds atleast once in a year.
Kindly read my article : How to check mutual fund portfolio overlap?
Hi Sreekanta,
Pls have a look on portfolio and advice whether i should continue of change some of the funds.
6500 ICICI Prudential Banking and Financial Services Fund – Regular Plan
2000 ICICI Prudential Focused Bluechip EquityFund – Regular Plan
4000 HDFC TOP 200-G
3000 HDFC Mid-Cap Opportunities Fund -G
1500 SBI Pharma Fund-G
3000 HDFC BALANCED FUND-G
Dear Arun,
Let me know your investment time-frame? Also, kindly understand the risks associated with Sector funds.
i can continue with 10-15 years time horizon.
also i can invest some more 5000, pls suggest to purchase or modify my portfolio.
i am having 1lacs as emergency fund which is in saving account, should i go for debt/liquid fund, if yes pls suggest some good fund.
Dear Arun,
Suggest you to check the extent of Portfolio overlap. Kindly read this article.
Emergency Fund : Cash + FD + Liquid Fund.
how to send my portfolio details to you by attachments
Dear Mr. Sreekanth,
Please provide your opinion on my funds portfolios :
1. RELIANCE REGULAR SAVINGS FUND – EQUITY PLAN – GROWTH PLAN GROWTH OPTION – 2000 p.m
2. HDFC TOP 200 – 2000 p.m
3. ICICI – PRUDENTIAL DISCOVERY FUND – GROWTH – 2500 p.m
4. IDFC Premier Equity Fund – Plan A Growth – 2500 p.m
5.QUANTUM Tax Saving Fund Growth option – 5000 p.m
Also interested in starting SIP in TATA balanced fund . How to start it in direct mode.
Thanks
Navneet
Dear Navneet..What are your financial goal(s)? and kindly let me know about your investment horizon??
Dear sir
Appreciate your efforts. I am currently investing 6k per month through SIP in TATA ethical fund. Please can you suggest me more such funds which invests in non-banking,non-alchohol business.
Dear Khan..Most of the MF schemes do invest in banking companies. So, it is very tough to find such schemes. Even if they are not holding such shares, in future they may buy.
Check Taurus Ethical Fund. But its performance is not up to the mark.
Thank you for your wonderful supports for the needy people.
I have already invested 4 equity funds (canararobeco emerging, Frankling high growth, UTI equity, Tata balanced) SIP, now would like to know more about debt fund.
Instead of keeping money in bank FD,will debt fund have any advantage?
Planning to keep 5L for more than 5 years.
take care
g.rajesh
Dear Rajesh,
If your investment horizon is > 5 years, it is better to avoid investing in FDs.
Thanks for your feedback,
So what is your advice, can we continue in equity fund or invest in debt fund. currently I am NRI.
take care
g.rajesh
Dear Rajesh,
If you have atleast 5 years of time, you can consider allocating your money between a balanced fund and an MIP fund. Ex: HDFC Balanced fund & Birla Sunlife MIP II wealth 25.
Thank you very much for your feedback.
take care
g.rajesh
Dear Sir,
im 28 year old.
investement of
child 12th ( 15 year)10lakh- child college ( 17year)24lakh- child merriage ( 24year) 40 lakh- retirement ( 30year)1.5cr.
1 AXIS LONG TERM EQUITY 2000
2 RELIANCE TAX SAVER FUND 1000
3 SBI MAGNUM GLOBAL 1000
4 TATA EHICAL PLAN A 1000
5 HDFC MID CAP 1000
6 ICICI PRU FOCUSED BLUE CHIP 1000
7 FRANKLIN HIGH GROWTH COMP 1000
8 HDFC / TATA BALANCE FUND 2000
question 1) i invest in balance fund if my investement cycle is more than 10 year.
please suggest fund which i contiue to invest 10,000/- per month (3000/- elss include)
question 2) i know 8 funds are more but i want to help which i continue for long term please help…..
Dear Akash,
Kindly trim your portfolio using Mutual fund overlap tool. Click here to check out.
Also, suggest you to go through the below links;
Retirement planning goal
Kids’ education goal.
Dear Sreekant,
please suggest the fund of above in which i invest?
can i invest in balance fund if my investement cycle is more than 10 year?
Dear Akash..Consider investing in a Mid-cap fund if your time-frame is >10 years.
Hi Sreekanth,
Cheers for your good work.
I am new to MF investment. I am working for a Corporate company and I would like to invest 1000 per month on SIP in 5 different funds. The investment time period is minimum 5 years. Please suggest me some good mutual funds to invest, also I have 3 months old daughter and would like the fund plans inclined to her future as well. I would like to prefer moderate risk profile.
Please suggest, thanks in advance.
Regards,
Purnachander M
Dear purnachander,
Consider investing in a Balanced fund & a Large cap fund. (Ex – TATA balanced fund & ICICI focused bluechip fund).
Kindly go through my article on – Kid’s education goal planning Calculator.
Hi Sreekanth,
Thanks for the quick reply, Since I’m new to the MF’s could you please suggest me in particular any 5 funds good for sip investment now. As I have mentioned the investment time period is minimum 5 years
Thanks a lot..!!
Purnachander M
Dear Purnachander…I have given the fund names in my previous comment.
Hi Sreekanth,
Thanks for the wonderful blog which helps us to select mutual funds.
I am planning to invest 2500 per month for long term around 10 years.So please suggest in which MFs I need to invest
Dear Santanu..You may select two funds , one from Equity diversified and second one in Mid-cap category.
Thanks for your reply …
Hi Sreekanth,
After study this blog, I consider two MF as you say
1. SBI Midcap Magnum
2. UTI MNC Fund
Plz suggest…
Thanks in advance,
Santanu
Dear Sanatnu..What is your investment time-frame??
At least 10 Years …
Dear Santanu…Go ahead and stay invested for atleast 10 years 🙂
Thanks Sreekanth ….
Hi Sreekanth,
Thanks for your valuable information about investments, it helps to many people.
I am planning to invest now for my kids education in future. As per my analysis my kids require minimum 1 crore after 20 years. Can you please suggest me what will be the best investment plan ? Investment per month per 20 years?
Thank you in advance,
Sreenivasa Rao
Dear Sreenivasa,
Suggest you to kindly read my article on Kid’s education goal planning, you may download the calculator and use it to calculate the required amount of savings per month.
Do you have sufficient life insurance cover?
i like invest 30,000 pm in SIP……FOR5 TO 15 YRS ( 5 SIP)
hi,
would you guide me i want a corpus 0f 1 crore in 7-10 years what should be an investment distribution so that targets are achieved in time.
Dear Piyush,
Kindly use the calculators available in the below articles;
Kids education planning
Calculate Future value of your investments.
Hello sir,
I am a Btech student, i want to take my masters in USA and i have 70,000/- and i dont want to use them till i return from USA (5 years) . suggest me some mutual funds for me to invest in it.. (high risk and returns accepted)
Dear Mounik,
You may invest it in TATA Balanced Fund.
Dear Sir,
I am planning to invest 30000 per month at the following fund
1. Birla Sunlife frontline equity fund-G (Rs 5000)
2. franklin India High growth companies-G (Rs 5000)
3. ICICI value discovery Fund-G (Rs 5000)
4. Franklin India smaller companies Fund-G (Rs 5000)
5. Tata Balance fund-G (Rs 10000)
Kindly have a look and please suggest me how good is my portfolio, my goal is 1.5 crore in 15 years (expecting 12% pa). I know it is not good to keep 2 Mid/small cap fund but as what I have seen ICICI value discovery is more of diversified fund rather than mid/small cap. Is my current selection is good or do I need to keep only 1 large, 1 mid/small and 1 balance fund. If this is the case then which mid/cap fund should I select.
I will be very thankful if you can help me to make good portfolio.
Thanks & Regards,
Ali
Looks fine dear Ali..
I want to invest monthly 3000 in sip…suggest me medium risk and high risk plan
Dear Heena..let me know the time-frame??
hallo dear,
my present age is 64.I am thnkinhg of starting mutual fund investment through SIP as under
ELSS(for tax saving )
1. Axis long term fund
2. Reliance tax saver
BALANCE FUND
1. HDFC balance fund
2. Tata balance fund Plan A
EQUITY FUNDS
1.BSL MNC ffund
2. Franklin ( I ) higher growth Co. fund
Considering my age, pl. advise me if the above choices are Ok.Do you suggest any alternate funds in case any of the above funds needs to be changed
sharad
Dear Sharad,
Besides age, the most important thing when do would you like to redeem this money? Or What are your financial goal(s) (timeframe)??
Dear Sreekanth,
I am not much aware of equity and mutual funds.
My mostly saving in FDs only.
I want to invest 20,000 PER month for atleast 4-5 years or may be more. Could you please advise me where should I invest.
Thanks
Dear Jatinder,
Kindly start with a balanced fund and remain invested for atleast 5 years. Kindly read my article on Balanced funds.
Hi Sreekanth,
Thanks for the suggestion share with us. Very good information.
I have couple of questions which I need your suggestion.
I have a home loan of 12Lack which I want to repay within 10 years. So if I invest any good Diversified Equity Mutual Funds like ICICI Prudential Dynamic for SIP of Rs 2000. Is it good for me?
I also want to purchase a car after 3 years. so which will be the best suitable plan for me?
Please suggest. Thanks.!
Santanu Ghosh
Dear Santanu,
Did you plan for your retirement? Are you investing sufficient savings towards your retirement or other goals (if any like kid’s education goal).
Do not be in a hurry to repay your home loan.
kindly read my articles;
The 6 most common personal finance mistakes
Retirement planning mad easy
Thanks for your reply and advice
I am thinking of investing Rs. 2000/ per month in HDFC TOP 200, GROWTH fund, is this choice OK,? for how long shall I invest? For 10 years or less? How much money will it build? Please guide. Where should I invest if I can allot Rs. 5000/ per month for SIP?
Dear Shivani,
Do you require money after 10 years? What is your investment horizon? Kindly map these investments to any of your financial goal(s).
Hi Sreekanth,
I have read many of your posts in this site. Very good and informative.
I need some suggestion on my investments now.
I’m 25years old guy working in IT sector. I want to save monthly 8000Rs and I want to invest some amount in mutual funds within that amount.
So will you please suggest me for the same.
Give me your comments on my idea.
2000–> PPF(As it is long term savings)
1000/1500 –> Insurance
4500 –> MFs (In future for my marriage I need some money, for that I want to invest this money in SIPs)
So please suggest in which MFs I need to invest and which insurance plan I need to take.
Thanks in advance.
For 3yrs period I need some amount as I mentioned above. So, I’m thinking to divide like this.
AXIS long term equity fund (For Tax savings) —> 2000
HDFC Balanced Fund –> 1000
Franklin Bluechip Fund –> 1000
Birla Sunlife MIP II Wealth 25 Plan —> 1000
Dear Krishna,
If you want money in 3 years, kindly do not invest in the shortlisted funds (except Birla fund).
You may consider invest in Birla MIP fund.
Hi Sreekanth,
I didn’t understand properly about this MIPs.
In layman language, i’m asking…
For suppose if i’m investing 1000 monthly in this MIPs, after 3years my total investment is 36000 right! How much will I get in return approximately.
AXIS long term equity fund (For Tax savings) —> 2000
HDFC Balanced Fund –> 1000
And when this two funds are fine? means how many years need to invest through SIP if we need good returns from this MFs. (I saw your posts, for many of them you are referring these two. That’s why asking you again)
Dear Krishna,
Suggest you to first identify the time-frame and then select funds for investments.
Kindly read my article on Top MIP funds for more information.
Dear Krishna,
Do you contribute to EPF scheme?
Do you have any dependent family member(s)? Or Do you have any financial liabilities/commitments?
Let me know the expected year of marriage?
Do you have health insurance cover?
Hi Sreekanth,
Thanks for reply.
I’m not contributing any EPF scheme.
My parents and one brother who is studying B.Tech depends on me. But no financial commitments/liabilities for them.
And I’m having corporate health insurance cover and my parents were not having.
And Regarding marriage , it may be on 2018/2019
Hi Sreekanth,
My company cutting 1000 bucks under EPF scheme. But I thought it will be very less.
Dear Krishna,
Kindly buy a term plan at the earliest. Read my articles on Best term insurance plans & Best Personal Accidental Plans.
Also, buy an independent mediclaim policy and also get health insurance cover for your parents.
Hi,
I am planning to invest 20000 per month for long term Approx for 10 years, i have select some MF’s, Does these are look good. Please suggest :
1) UTI MIDCAP FUND = 4000
2) HDFC BALANCED FUND = 4000
3) FRANKLIN INDIA SMALLER COMPANIES FUND = 4000
4) HDFC MID CAP OPORTUNITIES FUND = 4000
5) BIRLA SUN LIFE MNC FUND – GROWTH = 4000
THNAKS
HEMANTH
Dear HEMANTH,
You can consider two mid-cap funds instead of 3 and invest in Equity diversified / Multi cap fund.
Selected funds are good ones.
Hi,
Thanks for the wonderful blog which helps us to select mutual funds.
I am planning to invest 30000 per month for long term 7+ years (probably 10+ years). Does following list look good. Please suggest :
UTI Equity Mutual Fund = 5000
ICICI PRu Focused Blue Chip Fund = 3000
HDFC Top 200 = 2000
Birla Sun Life MNC Fund = 3000
Franklin High Growth Cos (G) = 3000
Can Robeco Emerg-Equities = 4000
DSP-BR Micro Cap Fund = 4000
Franklin India Smaller Companies Fund = 2000
Tata Balanced Fund = 4000
Thanks,
Kiran
Dear Kiran,
Trim the no of funds from 9 to may be to 4 to 5 or so. Else these funds are good ones.
Dear sir
I have not received any reply for my query which I have posted on 10th Aug 2015. Sir awaiting your reply.
Thank you.
Dear Chokkalingam,
I was bit busy on personal front, hence a slight delay in replying to blog comments.
May I know who has advised you not to go for SIPs? Kindly let me know about your financial goal(s)??
Dear Sir,
Thank you for your reply, in spite of your busy schedule. I have few more queries which I shall forward to you in a day or two.
Thanking you very much.
Dear sir,
thank you very much and i heartly congratulate you for sharing mutual funds basic info.
i want to invest 3000PM SIP for 10 years,
my goal is to gain maximum income after 10 years.
pls suggest me in which scheme i should invest.
i am planning to double this year by year.
Pls reply
Dear Amar,
Consider investing in a mid-cap fund like UTI midcap or Franklin Smaller companies fund or HDFC mid-cap opportunities fund.
Hi,
I am looking to invest in ” ICICI Pru export & other services fund”.
I want to know a bit about it, like
1) Is it a sectoral/thematic fund?
2) Does it carry additional risk?
3)Yes. It is a diversified fund. But there are so many diversified funds available. So, what is the unique ness of this fund in terms of assett allocation?
4) I can understand that this fund associated with that stocks, which are in “service industry”. bt if I see few top weightage stocks associated with this fund, I see pharmaceutical funds like Dr. Reddy, Cipla, Sun Pharma & IT stocks like Wipro & infosys. Now, my question is how can Pharma & IT sector stocks be considered as “Service sector stocks”?
5) I am in late 20s & having SIP of Rs 18000/month in different funds. Want to invest in this fund. Should I go for it?
Dear Giri,
Besides age profile, why do you want to invest in this fund? What is your investment objective?
Kindly list down your existing funds.
Sir m new to mutual funds so i need to get sum help from you.
Presently my portfolio includes
Franklin india flexi cap fund(g)
Hdfc midcap oppourtunity fund(g)
Sbi magnum balance fund(g)
Is it right???all are rs 1000 monthly SIP
M also thinking to start SIP of this funds also
Tata balance fund
Birla sunlife top 100
Uti MNC fund
Motilal oswal focus multicap 35
Is motilal worth buying??
Or plz give me sum suggestions if m wrong in selecting funds nd where m wrong. Also give me proper suggestion to which mutual funds to select.
Dear Harmesh,
What are your financial goals? Let me know the investment time-frame??
Kindly read the below articles;
Financial planning pyramid
The 6 most common personal finance mistakes.
Dear Sreekanth sir,
I am a new investor and have no experience in mutual fund investment. Here I am requesting for a guidance for a right planning for my investment.
(1) I want to invest Rs. 5000 per month in tax savings mutual fund schemes. Please suggest me the best tax savings schemes for next 25 years (I am 35 now) and also the allocation of the investment amount to each fund.
(2) I am also in confusion whether the purpose of mutual fund investment should be tax savings and high return OR it should only be high return. If it is the second one, then which funds should I choose for 25 years and what should be the allocation (considering the investment amount is 5k/month). In this case I can invest 5k/month in PPF for tax savings.
Please suggest. Thanks a lot in advance.
Dear Samrat,
1- One ELSS fund is enough. Kindly go through my article – Top ELSS funds.
2 – It can be both (depends on your investment objective and your financial goals).
Hi,
I have few queries. They are like
1) Are MNC fund considered as sector fund?
2) If these considered as sector fund, then are they carry extra risk like other sector funds?
3) I have already invested in Birla Sun life MNC fund via SIP. If I add another SIP further in UTI MNC fund, will it add extra risk in my portfolio?
4) There is no logic behind investing similar types of fund. so, are Birla Sun Life MNC & UTI MNC fund are similar type of fund?
Regards,
Deb Chatterjee
Dear Deb,
1 – They are generally considered as either multicap / thematic funds. But again it depends on the fund’s investment objective.
2- Yes (Read investment objective of the fund). Most of them do not invest in just one sector.
3 & 4 – What are your financial goal(s)? Let me know your investment time-frame??
I am 27 & planning to invest in these 2 MNC funds for 30 yrs (for my retirement corpus). I have ongoing SIP of Rs 17000/month & I wanna add UTI MNC in my portfolio. Pls suggest sir…
Dear Deb,
You may invest in one MNC fund (UTI) along with a equity diverisified & a mid-cap oriented fund.
Hi. Very nice article.
I am 31 year old woman and I have a bulk amount from my previous job that I want to invest. I do not want to initiate any SIP.
Can you please suggest which Mutual Fund, in which category will be good for me?
Dear Prachi,
Let me know your investment horizon (time-frame)??When do you require this money?
Hello, I am 22 years old I just got a job last year after finishing my graduation. I have been reading about investments for quite a few months. I have seen my grandparents save a lot through those FD’s and post office schemes, but I wanted to seek out something else,and being at this age I thought I can take risks, so I read about mutual funds and just last month I started a mutual fund account with Hdfc. I have started with a SIP plan, 1000/month in AXIS long term equity fund growth, 1000/month in ICICI value discovery fund regular growth plan and 500/month in RELIANCE tax Saver fund-growth. Please tell me how is this for a beginner portfolio.
Your articles are very well written and informative ,thank you for the knowledge. any layman can also understand your posts that’s a very good thing, please reply on my query.
Dear Varun,
Instead of reliance tax saver you may opt for one equity diversified fund. Yes, for long-term wealth creation, FDs/RDs should be avoided.
Dear Srikanth,
I am new to MF. Saw your articles and the way you are guiding through your replies.
I want to invest about 8000 to 10000 PM through SIPs with long term goals. Goals are son education after 10 years, daughter education after 15 years and daughter marriage after 20 years.
Please guide me with the best investment options to achieve the goals.
Dear Arun,
Do you have sufficient life insurance cover?
Kindly go through the below articles;
Best term insurance plans
Retirement planning
Kid’s education goal
Calculate future value of your investments.
hi
I am 31 years old serving in Indian Navy. I complete 12 year of service. after three years I retired. I have got about 40 lakh rs from my retirement. I have two child. I also take about 22000 pension after retirement and also get another job. my queries are:
I want a fix monthly income . tell any plan.
i required 50 lakh in 2024 for my daughter study.
About 1 crore in 2030 for son study and daughter marriage.
Sir my investment details as follows
9500 rs in sip from last five years. ( icici focused blue Chip 3000 pm, HFC top200 -2000 pm, DSPBlack rock top 100 – 2000 pm , icici Pru discovery 1500 pm and idfc sterling 1000 pm)
I want to investment for next 15 years.
I got about 40 to 45 lakh from my retirement.
pls tell can I get this goal for my daughter and son from my investment and savings.
Dear Naveen,
If you want to get a fixed monthly income, you may consider investing a portion of your corpus in Fixed deposits.
Do you have sufficient life insurance coverage & Health insurance coverage? What is the scheme name of IDFC?
Kindly read below articles;
Top online term insurance plans
Retirement planning
Kid’s education goal planning.
Dear Sreekanth,
You explain about MF in very few and simple words, yet very effective.
Keep up the good work!!
Cheers,
Vikalp Goyal
Thank you Vikalp..Keep visiting 🙂
Hi Sreekanth,
Thank you so much for providing such helpful information.
I decided to invest in mutual funds after reading this article. It really changed my opinion about mutual funds (Had lost some money 6years back ).
Reason for investing :- My age is 36 y. I want to accumulate funds for my retirement / daughter’s marriage expenses.
Started SIP in following funds 1 month back,
ICICI pro focussed blue chip fund – 1000/- (have plans of increasing SIP amount after 6 months)
UTI equity fund – 1000/-
Franklin India smaller companies fund – 1000/- (have plans of increasing SIP amount after 6 months)
ICICI prudential balanced fund – 5000/-
All are invested in ICICI DIRECT.
Kindly let me know your opinion on the above mentioned funds.
thank you once again for writing such a informative article.
regards
Mahesh prasad
Dear Mahesh,
Thank you for the appreciation 🙂
ICICI focused & UTI equity are both large cap funds. So, you may invest one equity diversified (multi-cap) fund instead.
Kindly go through the below articles;
Retirement planning in 3 easy steps
Kid’s education goal planning.
Hi Sreekanth
Thank you so much for your prompt reply. Shall explore your suggestions.
regards
Mahesh prasad
Hi Sreekanth,
I am 31 years age, i am planning to invest some amount for retirement.i am average risk taker,
I have invested following funds.
1. Icici pru focused bluechip equity- 2k pm
2. Franklin india high growth companies -2k pm
The third one i have little confusion,
whether i have to go with hdfc mid cap fund or tata balanced funds.
My investment period is 20 years.
Regards,
Krishnamurthy K
Dear Krishnamurthy,
Consider mid-cap fund only, atleast for next 10 years or so.
Dear Sreekanth,
Thanks a lot .
Regards,
Krishnamurthy K
Hi Sreekanth Sir,
Cheers and applaud for your good work.
I am quite new to MF investment. I am working in an MNC for last two years and I would like to invest 8000-10000 per month on SIP in one or different funds. The investment time period is 3 yrs/ 5 yrs/ 10 yrs.
Age : 25 yrs
Income : 27000
Could you please suggest me how to distribute the amount in one or different mutual funds. Which funds i can go for? What should be the ideal time period to invest for ?
My goal is for Tax saving and investment for my future. I am 25 and have decided to be on my own for rest of my life.
Thanks
Avinash
Dear Avinash,
Is it that you would like to invest 2 funds for each time period (3-5-10 years)??
Hi
I am siva from Hyderabad, age 48 having policy’s in LIC and ULIPs.. Now I am plan to invest 4000/- pm in SIP mutual funds for maximum 10 years. Kindly guide me sir.
Thanks,
Siva.
Dear Siva,
Kindly share the details of your LIC & ULIP plans.
For 10 years – consider SIPs in HDFC mid-cap opportunities fund & Franklin prima plus fund.
Hi,
I read your post and saw your comments. I think you are doing a great job.
I would like to present my case and hope you get chance to reply:
Info: I am 32yrs old living in Mumbai. Married with no kids yet.
Income: Rs.80,000 per month
Life insurance: Rs.25Lakhs.
Medical insurance: Rs.5 Lakhs
Loans: Not at present.
Goals: Child education and retirement.
History: I invested in Mutual funds in 2008 but burnt my fingers and went out of market. I want to come back in a planned way this time.
Investment Plan:
I want to invest Rs.50,000 per month in mutual funds for 20yrs.
Based on some research over morningstar, valueresearch and youtube videos I have compiled this list of portfolio for me.
1) ICICI Prudential value discovery (Mid and Small Cap)
2) Franklin India Smaller Companies (Mid and Small Cap)
3) UTI Equity Fund (Large Cap)
4) HDFC Balanced Fund (Balanced)
5) Tata Balanced Fund (Balanced)
I will be going for DIRECT plan with DIVIDEND PAYOUT option for all the above funds. If you don`t agree with this option suggestion is welcome.
I would like your second opinion if this portfolio is fine. You may recommend other Mutual funds too if you think they are better.
Regards,
Rahul
Dear Rahul,
Let me know the LIC plan name(s).
Do not opt for ‘dividend payout’ when your investment objective is long-term wealth accumulation (20 years). Go for ‘Growth’ option.
Selected funds are good ones. You may consider one balanced fund only (just a suggestion). Instead consider one Equity diversified fund like Franklin prima plus.
Kindly read below articles;
Term insurance Vs endowment insurance
Kids education planning
Retirement planning
Calculate future value of your investments or expenses.
Thats a good suggestion about replacing 1 balanced fund with diversified equity fund. Will think about it.
My comments on your questions:
1) Life insurance plan name: LIC Amulya Jeevan – 25lakhs at present.
I want to bump it up to 1Cr. My age is 32yrs. Can you suggest some life insurance policies or give a link where i can research.
I currently have medi insurance of 3Lakhs of National Insurance Corp for me and my wife.My parents (60+) have a separate 10Lakh insurance for themselves. What do you think should be ideal medi insurance amount? Any suggestions on which policies are better?
2) Why DIVIDENT PAYOUT option? If i invest my dividends regularly then i`ll still maintain discipline. I basically want to see some money in share market or mutual funds to gain confidence. Hence, this option. Is there are major difference if i go for div over growth option except approx. 1% NAV difference cumulated over 20yrs? I don`t think any AMC may be paying more than 1% Div for equity funds,rt?
New Questions:
1)I have HDFC Securities account. It provides option to buy MF of any AMC online. I see that they did not charge me any fees. I was also able to buy DIRECT plan from HDFC Sec. (I thought direct plans can be bought only from AMCs). They are not letting me start SIP in MFs though. Is there something I am missing here? How is HDFC Sec making money? Will they charge me later?
2) I am not able to find expense ratio of DIRECT plan for MFs. All sites morningstar, valueresearch, etc show different percentage amount! I also went to AMC site directly and could not find info in some cases. If possible and if not much work can you please share with me current expense ratios of plans i selected? or can you share any document if you may maintain on expense ratios?
3) My expected YoY returns over 20yrs on my portfolio:
1) ICICI Prudential value discovery (Mid and Small Cap) – 15%
2) Franklin India Smaller Companies (Mid and Small Cap) – 15%
3) UTI Equity Fund (Large Cap) – 11%
4) HDFC Balanced Fund (Balanced) – 12%
5) Tata Balanced Fund (Balanced) – 12%
So, on an average I am expecting 12-13% returns YoY on this portfolio after 20yrs.
Kindly let me know if my expected returns are justified or they are out of place and I should tone them down.
Dear Rahul,
1 – Get rid off that LIC policy. Buy a term plan. Kindly read my articles;
How to get rid off unwanted insurance?
Term insurance VS endowment insurance
Top 7 best online term insurance plans.
2 – Kindly read this article on Super top up health insurance plans.
3 – If you are confident of investing dividends regularly then why not opt for growth and benefit from the power of compounding 🙂
4 – I believe that hdfc guys charge fees on quarterly basis. Why are they not letting you to start SIPs?? Any KYC issues?
5 – 12% returns from equity oriented funds is reasonable and acceptable limit. Anything above is a bonus 🙂
Would like to add that 12% return equity oriented mutual funds is tax free!
Agree with you dear Mr Jain 🙂
Hello sir,
firstly, Let me tell u that your responsibility & sincerity is very much commendable. Its astonishing to see that you are replying each & every query… very commendable… thanks a lot.
I am 3 month old in Mutual fund SIP field. Presently I have SIP of Rs 20000 in 12 different fund (2 large, 4 mid, 3 small & 3 diversified equity) in 12 different dates of every month.
Meanwhile, apart from regular SIP, I do additional purchase (Rs-1000 or 2000) on those days, when the respective benchmark indices (Nifty, CNX Midcap, CNX smallcap, B&S SE 500 etc) goes down before 3 pm (cut off time to get same day NAV ) from online portal of respective fund houses. Thus, I get additional unit purchase in relatively lower NAV.
The disadvantages of SIP that I thought is- Money will automatically get deducted via ECS in the specified dates. If in that day, market goes up, even then I have to purchase the units in relatively higher NAV as ECS will be debited automatically. I won’t have any control on it. Thus I have thought of a new strategy.
I am thinking of stopping the SIP & investing the same amount of Rs 20000 in every month by online on those specific days, when market will be down. The total amount of Rs 20000 will be invested in small proportion (1000 or 2000 each day) on those days when market will down.
The benefits of the strategy is that, It will be fully under my control to choose the correct day of investing to get more units in cheaper NAV.
Now my queries are
1. Want to know your point of view on this strategy.
1. If I stop the SIP right now, but dont redeem my already purchased units, (if I keep the purchased units as it is), will the online purchase portal of the respective fund house remain accessible for me for lifetime? Or it will get closed after certain amount of time after stopping the SIP?
3. My SIPs are in regular mode. Now, if I stop the SIP & continue purchasing online in “Regular plan” (by putting the ARN & EUN code of my agent), will the interest of my agent will get hampered for stopping the SIP?
4. Will my agent encourage this strategy or he will tell something else against the strategy.
Eagerly waiting for your reply & valuable inputs
Regards,
Papai Chatterjee
I use to follow the same strategy earlier but later I decided not to invest only when market goes down but also when market goes up. Let’s consider that bse is 28114 today and if it reaches 400 points and it will be 285114 but we will miss this rally. Later we will invest when market goes 100/200 points down. It is just my thought.
Thanks Raman,
My point is, in SIP, we are bound to buy units even those days, when market grows 400 point. If we purchase online, it could have been avoided…
But after stopping the SIP, will the online purchase portal remain open for lifetime?
Requesting Sreekanth sir to answer
Dear Papai,
1 – I personally follow this strategy. Remember, SIPs bring in lot of discipline to an investor who is hard-pressed for time.
2 – You will have access to the existing funds.
3 – If you mention your Advisor’s ARN number, he will get the upfront commission (new units) & trail commission on existing/accumulated units.
4 – Check out with your agent and share his views here 🙂
Hi Sreekanth Sir,
Cheers for your good work.
I am new to MF investment. I am working in Corporate company and i would like to invest 1000 per month on SIP in 5 different funds. The investment time period is minimum 10years for 2SIP and 5 years for 3 SIP.
Could you please suggest me whether i can distribute 1000 each(SIP) in 5 different mutual funds. if yes, which funds i can go for? or suggest me some good ideas.
My goal is for Tax saving and investment.
Dear Kirubananth,
For 10 year SIPs – you may consider, HDFC midcap opportunities fund- Axis long-term equity fund (Tax saving) & Franklin Prima plus.
For 5 year SIPs – Consider HDFC Balanced fund.
Thanks so much for your reply Sir.
My son is 1 year old and i am planning to opt SIP of 2000PM for his education with period of 17 yesrs. Please suggest which MF i can go for?
Also, I have 10000 and i would like to invest in MF instead of saving the money in post office or bank. I will not use this amount for next 1 Year. Will it be good to invest in MF for this 1 year? If yes, can you suggest me whether i can go for any short term MF? If yes, which MF i can go for?
Dear Kirubananth,
Kid’s education goal – Consider one Mid-cap fund & one equity diversified .(Ex – HDFC Midcap opportunities & Franklin Primaplus fund).
Short term goal (<2years) – Consider Conservative MIP funds. (Kindly read this article – Top MIP funds)
Hi Sreekanth,
I am working in a Corporate and looking to buy a Property in Mumbai for investment purpose only. I want to root my monthly saving to property within the range of 15-30 Lac. Can you suggest for a good buy where i can get a good return over years and simultaneously create a capital assset.
Dear Vipul,
I did not get you. Are you planning to invest in mutual funds to accumulate a fund and use it to buy a property in future?? If so, when do you require this money??
Dear Mr.Srikanth,
I developed an interest in MF after looking into the financial guidance you give to the investors. I am very much new to it and I seek your expert guidance.
I would like to deposit one lumpsum amount of Rupees One Lac for a period between 3 to 5 years. There is no specific utility of this fund upto 5 years. It is purely for investment with good returns
Further, I want to deposit Rs.5000/- per month in SIP for a period of 5 years. It is also for saving purpose with good returns and no immediate requirement for utilisation of funds.
Since I am new to this, I request you to suggest me the names too of the schemes under which I can invest my limpsum amount and SIP.
Regards
Dear Shanthalakshmi,
For 3-5 years goal (lump sum investment) – You may consider HDFC balanced fund (Rs 60k, remain invested for 5 years) and Birla Sunlife MIP II Wealth 25 plan (Rs 40k, ideal investment time-frame is 3years).
For SIP – Consider HDFC Balanced fund / TATA Balanced fund.
Kindly go through my articles;
Top MF MIPs
Top Balanced funds.
Dear Mr.Reddy
Hope you are fine and in good health. Earlier I had invested in mutual funds considering your advice and suggestions.
Now I wish to invest Rs 1 lakh each for myself and my spouse. Can you suggest some good funds for this proposed investment corpus? I would provide some details to you about my plan:
1. To invest Rs 1 lakh each in my name and in my wife’s name.
2. To invest as lump sum, NOT SIP.
3. To remain invested for minimum 5 years.
4. I would prefer a moderate risk profile for the two of us.
Should we divide our corpus into 2-3 or more funds ? Which group or funds will be better-large cap or mid & small cap ? Please suggest specific names of funds.
Awaiting your reply.
Regards
Dr.Syamal Modi
hi, my name is yong NRI , i have met banker from RBL bank, ( please give opinion on this bank too ) n asking me to invest in SIP.
I wanted to invest 20k for 3 different products for long term investment,
and 3 for short term. please suggest good products
also if i dont want to take any risk , what is the other way to invest in india?
thank you for your help
Dear Yong,
I can’t comment on RBL bank.
Kindly note that there is no investment without a risk. You got to take risk to get decent returns in long-term.
Long term goals – Consider , Franklin Prima plus – HDFC Midcap opportunities – TATA Balanced fund
Short term goals – Kindly go through my artilce , TOP MIP MFs.
Hi Shree,
I am 22 years old and currently working in an IT company. I wanted to invest 15,000 monthy via SIP for a period of minimum 4 years. So can you help me out by providing the best of debt balanced,equity balanced,equity MF in which I can invest from this coming month of August.
I had a really bad experience of investing in equities as there was no proper guidance. So don’t want to commit the same mistake twice.
It would be great if you could divide the 15,000 among the best of all three. Also If you have any other suggestion regarding the type of MFs in which I should invest it would be much appreciated.
Dear Jithya,
Kindly go through the below articles;
Top balanced fund
Top Monthly Income Plans
My mutual fund portfolio.
Hello
I am an MBA student,I want to start an investment in mutual funds. I can invest every month 5000 prefer me which is suitable for my investment
Dear Sandeep..When do you require these monies? Do you want to invest for any specific goal of yours?
I need money between 12-15 yrs for my business plan
Dear Sandeep,
Consider two funds – 1) Balanced fund and 2) Midcap fund. Examples – TATA balanced fund & HDFC Midcap opportunities fund.
Dear Sreekanth,
I would like to invest 5k SIP in mutual fund, but not clear whether to invest in Balanced fund or equity oriented fund or shall I invest in both types( 2.5k each)
Planning to invest minimum of 5 to 10 years.Pls can you advice which fund ?
Regards,
Nair
Dear Mr Nair,
Most of the Balanced funds are equity oriented only. They invest around 65% of the fund’s monies in Equity related securities.
If you are investing for the first time in MFs, consider Balanced fund link HDFC Balanced fund elze equity diversified fund like Franklin India Prima plus.
Hi Sreekanth,
I am Sunil, Currently working in Qatar as Ass. Accountant with monthly salary 55000 INR. I am married and have dependent parents and wife. We are staying in rented room having INR 11000 rent. After all monthly expenses I am having INR 20000 saving from which I want to keep INR 10000 safe in bank and balance I would like to invest as SIP. I dont have any idea of share market can treat me as beginner.
Pls. provide your valuable suggestions.
Thanks
Dear Sunil,
Considering your profile, your first priority is to buy a life insurance plan (Term plan) in case if you do not have bought.
And then, you need to work on your Health insurance.
Hi i am a Software Engineer 23 years of age and my in hand salary is 29000.
Presently i have a recurring deposit of 5000 per month of 2 year maturity in which 1 year has been completed.
Now i am looking forward to do some investment in ELSS Mutual funds approx 2000 per month.
I am having 4 preferences out of which i want to invest in 2 MF ,1000 each:-
1.) Axis Long Term Equity Fund
2.) Reliance Tax Saver(ELSS)
3.) Franklin India Tax Shield Fund
4.) ICICI Prudential Tax Plan-Regular Plan
Basic objective for Investment is tax savings and some growth of money too.
Risk is not a big factor.
Please suggest which MF to invest in from above choices or any other investment plan which you want to suggest.
Dear Mohit,
What is the reason for starting RD?
Wht is your investment horizon?
You may consider any fund from the above list, preferably 1/3/4..
Hi Shree,
I have started RD just for Savings.As the interest was good 9% that time and i was not that aware of mutual funds and other investment options.
I don’t understand Investment horizon? can you please explain? Basically now i am inclined
toward mutual funds investments,and after 1 year i will change my investment from RD also to mutual funds.
So i just want maximum return on investment.
So my final investment options as of now is :-
1.) Axis Long Term Equity Fund — 1000 pm (SIP) (Tax Savings)
2.) Franklin India Tax Shield Fund– 750 pm(SIP) (Tax Savings)
3.) ICICI Prudential Tax Plan-Regular Plan — 750 pm(SIP) (Tax Savings)
or
1.) Axis Long Term Equity Fund — 1000 pm (SIP) (Tax Savings)
2.) UTI Midcap– 1000 pm(SIP) (Non Tax Savings)
3.) ICICI Prudential Tax Plan-Regular Plan — 500 pm(SIP) (Tax Savings)
I think as of current Scenario and 2500 investment limit these are the best options please suggest among these 2 investment options.
Dear Mohit,
Investment horizon is nothing but how long can you invest or hold investments? Ideally it should be based on your financial goal(s).
You may consider just two funds (any 2 out of three funds, infact can even invest in just one fund. Remain invested for atleast 5 years)
Thanks alot Shree,
I am looking to invest for minimum 5 years thanks for all your suggestion.
Finally can you please give your opinion on UTI Midcap mutual fund value for money.
Dear Mohit… it is a good fund. I have also invested in that fund 🙂
Hi Sreekanth
Im 35 years. Im new to SIP.
Have LIC Jeevan Anand & mediclaim insurance for 2lac in New India Assurance.
Investing 3000 in RD to meet yearly expenses (Child eduction and other insurance payments)
Im planning to invest in the following SIP –
1) Franklin Prima plus – 1000 for 5 year
2) Tata Balance Fund – 1000 for 10 years
3) UTI Mid cap – 1000 for 15 years
Is my selection correct or any changes are to be made.
Kindly guide me.
Awaiting. Thanks
GP
Dear GP,
Kindly take a term plan at the earliest.
What is the age of your child?
It is advisable to avoid RDs for long term investment.
Balanced fund can be considered for 5 years.
Dear Sreekanth
Thanks for your reply.
My sons age is 5.
RD of Rs.3000 is for an year, to meet yearly commitments.
From your reply I understand that, I need to take up the following combinations:
1) Kotak life – 8257 for 10 years
2) Franklin Prima plus – 1000 for 10 year
3) Tata Balance Fund – 1000 for 5 years
4) UTI Mid cap – 1000 for 15 years
Thanks
GP
Kindly go ahead with the shortlisted funds. Remain invested for long-term. Revert to me if you need any assistance 🙂
Thank you so much.
GP
Hi. How is it good to Invest in LIC policies for long term ..20 years !
Dear Faraz,
Insurance is not for investment. It is to cover risks. Buy a term plan.
Hi
doing good job and thanks for the same.
49 year old working in middle east and having one daughter of 15 year lod.
having plots /land in kerala and looking for a apartments .
i have around 45 lakhs for mutual fund investment and looking for 5 year span.
will you suggest me some good MF which gives average yearly return of around 20%
thanks in advance
Dear Rajendran,
20% in 5 years can be a bit unreasonable to expect from MFs. Do you have sufficient life insurance cover?
Dear shrikanth, i am 31 yrs old.married and having a son of 1 yr. I m working in a private renowned manufacturing firm. Current salary is 60000 excluding all taxes and pf. I am working since 2007. At present i hv ppf recurring and fix deposits in bank. I want to invest in sip for high return for education of my son. I can invest monthly 5000 at present. Kindly suggest what kind of sip i should invest.
Dear Arun,
Do you have any life insurance cover? (Read my article : Buy best term insurance plan)
Consider investing in a Mid-cap fund and balanced fund. You may allocate more money to mid-cap fund. (Ex – HDFC Balanced fund & UTI Midcap fund)
What is the difference in Direct & Growth Plan in mid & small cap mutual funds ?
Dear Rajiv,
Intermediaries are not involved in Direct plans and you can invest in them directly through respective fund house websites.
You can get slightly better returns on Direct plans when compared to Regular plans.
In direct plans there will be two options ie Growth (G) and Dividend (D).
So, Regular plans have two options G & D
Also, Direct plans have two options G & D.
Hello Sreekanth,
I have started investing in Reliance Small cap from past 6 months and quite happy with the way it is performing. Anyway since I’m planning to invest for 10 years I will not worry much about the happenings in this fund in 1 year itself.
Nevertheless I would like to know what is the major difference between Small cap & Mid cap, which will yield good returns on a long term (10yrs) & small term (5yrs).
The intent of asking the above query is, I would like to add another fund in my portfolio, hence looking for options.
Regards,
Nandeesh
Dear Nandeesh,
The major difference between a small cap or a mid cap is ‘market capitalization’ of the companies that MF scheme(s) choose to invest in.
You may consider adding one Equity diversified fund.
Could you plz give some suggestions of Equity diversified fund?
You may pick any one from the above list (article).
Dear, Sreekanth,
I am venturing into mutual funds for the first time. I am a central govt. employee 32 Yrs old with current appx income35000/month exclusive of tax & life insurance.
My financial goals are
a. Construct a home in kerala in 2022 of appx cost 35 Lakhs.
b. My daughter will finish 12th in 2030 & meet higher education cost 20 Lakhs
c. Marriage of daughter 2037 Appx cost 30 Lakhs
d. Expecting 2nd child soon and all the same
Current investments
FDs of current value 8 Lacs
PF monthly investing 14000 – Current corpus 3 Lacs
my wife plans to start working after 2 years and expects to earn 10 to 13000 per month.
In 2024 I will leave present job and will earn lumpsum benefit 20 Lac appx and pension 15000/month (expected to get revised in 2016 pay commission). Later i am sure of joining for other job earning minimum of 30000/month
Planning to start sukanya samridhi yojana 3000/month. I can cut my PF investment at will to make desired investments. My montly expenses come around 12000.
Request you to kindly suggest a good investment plan.
Dear Roy,
1 – Any specific reason/objective for maintaining Rs 8 Lakh worth of FDs?
2 – Is it PPF or EPF? Is it Rs 14,000 pm ?
3 – May I know the reason for your plan to leave the current job?
4 – Are you going to fund the house construction through home loan?
5 – Do you have term insurance and health insurance?
Kindly go through the below articles;
The 6 most common Personal Finance mistakes
Top 7 best online term insurance plans
Retirement planning in 3 easy steps
Kid’s education planning
How to calculate future value of your investments?
Dear Sreekanth,
Pls refer my query dtd 21 Jul and ur reply. Hearty thanks for ur prompt response.
Iam a corporal in Air force. We have an initial bond of 20 years service which can be extended if reqd. I complete that in 2024 & plans to retire then with pension. I am a postgraduate and confident of securing another job then.
We can invest in PF at will which earns interest of 8.7% currently with tax exemption upto 1.5lacs. Also there is the flexibilty of withdrawing 75% of amount once in 6 months in case of any such requirements. This is the most prevalent saving habbit among defence people and i blindly followed. My current subscription is 14000 per month which can be changed at will and put for other investments.
The 8 Lacs of FDs draw an additional interest of 1.5% as it is in the name of my father who is an ex-bank staff & senior citizen.
My current plan for house construction is to use the FDs and retirement corpus. I think to earn for all other goals thru systematic investment.
I am covered of a Group insurance scheme by govt for 25 Lacs which may be again upgraded in next pay commission 2016.
We are provided free health facilities in defence hospitals.
I hope u could get a clear idea of the situation. As I never ventured out of traditional investment instruments, I feel too jittery to start out of them due to lack of knowledge & Confidence. Please provide a concrete advice.
Regards
Dear Roy,
After going through you profile, I believe that your have invested major part of your savings in Debt (Fixed income) securities.
After adjusting for taxes and inflation, most of these investments won’t give you better returns and your wealth may get eroded in long term.
Also, do not use your retirement corpus to fund your property construction. Remember you can get home loan but not a loan to fund your retirement expenses.
Suggest you to buy a term plan for atleast Rs 50 Lakh at the earliest. Read my articles “Top online insurance plans” & “Avoid FDs as long term investment”
Did you go through the articles that i have suggested you to read? Kindly use the calculators that are available in Retirement and Kid’s education articles, and find out how much you need to save for these high priority goals, and accordingly invest in equity mutual funds at the earliest.
Myself Devang Trivedi age 25 yrs by profession Engineer earning 26k , i want to know what is the best plan to invest ? I am planning for wealth accumulation and buying a new home in the interval of 5 years.
please do suggest me for this as i am a beginner.
Dear DEVANG,
Kindly let me know if you have any family member(s) whoa are financially dependent on you?
thanx shrikant sir,
so there is no scope for loan on mutual funds. .am I right? ..
you suggested allocating more money in midcap..is it for midcap being safer than smallcap?
is it ok for me to start sip for mip birla sun life and deposit lumsum amount in till my first goal achieved?
last one are returns shown in charts are absolute or after deducting expense and other charges?
thanx again. .
Dear Atul,
Some banks / Fin institutions do offer loans against Mutual Funds.
I referred to both midcap/small cap funds. You may consider Birla MIP fund.
Yes, the returns are annualised ones and most of the funds won’t have EXIT loads after one year of holding the units.
Dear Mr Sreekanth,
I made a premature exit from NPS (a debt-oriented hybrid scheme. Am I right?) Tier I account on 11-12-2014 and Tier II account on 27-02-2015. Upon exit I was faced with a problem as to how to calculate capital gain (Long Term as well as Short Term) on the 20% of my accumulated wealth of Tier I account (Rs. 5583.83, credited to my bank account on 16-12-2014) and on the entire wealth (a mere Rs. 1410.90 of Tier II account, credited to my bank account on 27-02-2015). (The NPS team has yet not provided me with a capital gain statement. My pension fund manager is ICICI Prudential Life Insurance Company.)
I have now been able to calculate my total gain on Tier I and Tier II accounts with the help of the Transaction Statement I have been provided with).
As for as my gain on Tier II account is concerned, it is clear enough- a mere Rs 410.90-, as my total contribution to this account was a mere Rs 1000, which I had made on 06-09-12. My capital gain on Tier I account comes to Rs 1670.98. (The last time I contributed to this account was on 16-09-13.)
I suppose my gains on both the accounts are short-term.
Now I want to know how I can calculate tax on the total gain (Rs2081.88) and where I should show this figure in ITR 2 (excel) from.
Please help me. (Please tell me also how I can get a capital gain statement from the NPS team or ICICI Prudential Life Insurance Company, or any other source.)
I look forward to hearing from you at your earliest convenience.
Thanking you, in anticipation.
Sincerely, yours
Sanjay Kumar Srivastava
Cell No.: 9794708019
Dear sanjay,
Kindly take help of a Chartered Accountant.
hello,
you are doing great job. .your site and analysis really helped me choosing the funds.
1.uti opportunities-5k per month
2.hdfc midcap-3k
3 . Icici prudential balanced fund -5k
4 . Franklin India smaller companies-3 k
my risk appetite is average to above average. ..I m willing to invest for longer horizon like 20 years. .but in between I may need money for hospital construction or buying ready constructed property for same purpose may be after 2-4 years. .is it ok for me to stick with these plans or should I switch to safer options. ..
or another alternative could I get a loan on sip amount after 2 – 4 years. ..Please guide me. ..thanking in anticipation. ..
Dear Dr Atul,
Suggest you to create two MF portfolios.one for 3 year goal and another for >20 year goal.
For short term goal – You may consider ICICI Balanced & Birla Sunlife MIP II Wealth 25 plan (Read my article on Top MIPs)
Long term goal – Selected funds are good ones. You may allocate more monies to mid-cap fund.
can i invest in sip icici pru focused bluship equity, 2) hdfc midcap fund (g)3) icici pru tax plan(regular)4)franklin india smaller co. fund5) hdfc balance fund 3000*5 each. please suggest me whwther it is overdiverdify of funds or it is perfect. thanks in adavnce
Dear Anirban,
Let me know your financial goal(s) and investment time-frame??
Hi Sreekanth,
Myself Kishore, age 31 years, working in IT and earning Rs.75K per month. My wife, 27 years, is also in to IT and she is earning 30K per month. We have one year old baby girl. I would like to explain you our monthly expenses, insurance, savings details and I would need your suggestion on investments for our future goals. Please refer the below details and provide your valuable suggestions on investments.
Monthly Expenses: 20-25K per month
Liabilities: We have purchased a open plot worth 23laks in this year by taking the below loans. Hopefully it might be appreciated in next 5 years. 🙂
Home Loan – 11 Laks –> 10.5% ROI for 5 years. EMI-24K per month
Personal Loan – 7 laks –> 14% ROI for 3 years. EMI – 18K per month.
Insurance: on my name. (My wife is not having any insurance yet.)
LIC Jeevan Anand – Policy-1 – Started in 2012 for 5 laks SA and for 16 years. Premium-37K per annum
LIC Jeevan Anand – Policy-2 – Started in 2014 for 10 laks SA and for 21 years. Premium-54K per annum
Total: 91K per annum.
Future Goals:
Purchase of Home: 50 Laks after 5 years.
Baby Education Expenses from her 15th year. Expecting 30 Laks for her education cost.
Baby Marriage at around 22 years of her age: 30 Laks.
Retirement Planning after 32 years from now: 40 Laks.
Please provide your suggestions on the savings that i need to do from now to achieve the future goals listed above.
I am thinking to invest in Equities, PPF/SUKANYA SAMRIDDHI ACCOUNT. Please let me know right areas of investments and the amounts to be invested on monthly basis to achieve my goals.
I would be glad if you give a kind look at my request and help me on this.
Dear Kittu,
Is it a home loan for vacant plot for comprehensive one?
Start accumulating a fund to clear off personal loan at the earliest. This should be your top most priority along with buying a Term plan.
Both of you can buy term insurance cover. Get rid off Jeevan Anand policies. You can discontinue (or) Surrender them after paying 3 years.
Read my articles;
Top 7 best online term insurance plans
How to get rid off bad insurance policies
Term insurance vs endowment plans
Goals wise, retirement planning & Kid’s education goals should be of top priority. Once you allocate sufficient savings towards these goals and if you are still left with disposable income then you may consider buying another property.
Kindly read below articles;
Retirement planning in 3 easy steps
Kids education goal planning
The 6 most common personal finance mistakes
Thank you for prompt reply.
The Home Loan was taken from IDBI bank to purchase a Open Plot (200 sq.yards) for 10.5% ROI for 5 years.
Do you suggest Term Insurance for my wife as well?
I am thinking to invest in Equities, PPF/SUKANYA SAMRIDDHI ACCOUNT around 50K per annum (for long term 15+ years), as I do not want to delay my investments for 3-4 years till I close the home & personal loans.
I am going to make part payments every year and planning to close the Home Loan & Personal Loan with the remaining savings (as there are no Part payment & pre closure charges) in next 3-4 years (considering 8-10% of salary hikes in coming years) before my baby schooling starts.
Please let me know right areas of investments and the amounts to be invested on monthly basis to achieve my long term goals.
Dear Kishore,
Did you go through the suggested articles?
Hi Sreekanth,
I have gone through the posts you shared, infact I have read almost every post since yesterday I came across your blog. I am really impressed and kudos to your knowledge, detailed explanation. Appreciate all your efforts to help people like me. That is the major reason I have requested your suggestion.
As per your guidance, I am going to make it a paid up policy of my existing Jeevan Anand plans as soon as I finish paying 3-4 years of the premium.
I would definitely go for Term Insurance, as listed in your another blog “Top 7 best online term insurance plans”.
I request you to educate me on Equities or Equity Mutual Funds to invest for longer period (>15 years). Also, educate me on the procedure to invest in these equities.
Dear Kishore,
Besides Term insurance plan, do not ignore buying a Health insurance plan 🙂
Suggest you to start investing in a Balanced fund like HDFC Balanced fund or TATA balanced fund.
You may buy these funds either by visiting respective company websites or through online platforms like ICICIDirect or fundsindia.com or Kotak securities etc.,
Kindly check out these options and revert to me if you need any assistance 🙂
Sir I want to invest in sip Birla sun life MNC fund.. For 1 to 2 years. Arround 1000 to 2000 per month. This fund is best for me or not… If not then plz suggest the best fund..
Dear Neeraj,
For a 2 year investment horizon, suggest you to consider MIPs.
Hi Sreekanth
Myself Siva . To let you know my financial status for you to suggest best options available i have
LIC (Jeevan Tarang policy) on my name paying 1 lakh per year for 20 years(8 years completed)
MAX LIFE Term insurance for 1 crore started last year
LIC(Jeevan Anand policy) on my wifes name paying 50,000/- per year for 15 years(4 years completed)
LIC(Jeevan Ankur policy) on my daughters name paying 50,000/- per month for 18 years(2 years completed)
Investing USD 400 every month in CHEVRON stocks.
iam new to mutual funds and planning to start investing in them . i did my bit of work online(valuereaseachonline.com) and i selected the following funds .
Open-ended and Equity: Multi Cap —- Franklin India High Growth Companies fund
Open-ended and Equity: Large & Mid Cap—— Mirae Asset India Opportunities fund
Open-ended and Equity: Large & Mid Cap——Birla sunlife frontline equity fund
Open-ended and Equity: Mid & Small Cap——Franklin India Smaller companies fund
Open-ended and Hybrid: Equity-oriented——Tata Balanced fund PLAN A
Iam Planning to invest 10,000 to 15,000/- per month and for long term (15+ years)
Since iam planning for long term will the above funds suits my portfolio ?if you have any better options available keeping in mind the future as well as with your experience please let me know
Should i go for direct or Regular plan ?
Dear Siva,
Except Term plan, you may discontinue / surrender other existing life insurance plans. Kindly read my article : How to get rid of unwanted insurance?
Go for Direct plans and the selected funds are fine.
I have invested in kotak mid cap – 1000 rs and IDFC Ta Advt(ELSS) Fund-Reg(G). Is this a good fund which I have selected for growth. Also suggest some other funds for growth and minimum risks.
Dear Raj,
All equity related investments come with high risk profile. Kindly let me know your financial goal(s) and investment time-frame.
what is mean by alpha & beta values …how these effect the funds…..and the sd…..kindly elaborate………
Dear Shanmukh,
Alpha is a measure of performance on a risk-adjusted basis. The excess return of the fund relative to the return of the benchmark index is a fund’s alpha.
Beta is a measure of volatility of a security or a portfolio in comparison to the Market as a whole.
Hi Sir,
Your articles is eye opening for me on Mutual fund.
Could you please clarify on this as well.
I have bought icici pru life Wealth Builder – Maximiser V on Dec 2014 for which I have paid Rs. 50,000 as first perimium and need to contined for next 4 years.
Lockin period is for 5 years and the policy is for 10 years
But my fund value is keep on reducing and at present my fund value reduced to 45,000.
I’m confused whether to contiune on this plan and stay invested it for 5 years or should i cancel this plan now itself ?
thanks in advance.
Hi Sreekanth,
I would like to know the administration charges in Mutual funds. Today in one of the fund show in television, one person asked the details to the finance consultant.
Details:
He said he is investing in mutual funds for last 7 years. he said around 10 to 15% from his capital amount got deducted as a administrative charges . Finance consultant told that the charges are applicable. he said that the fund return is less as expected means the charges will be deducted from capital.
Could you please help me to understand this.
Also as discussed with you before i am planning to invest in below funds.
1. HDFC balanced (or)HDFC childrens gift fund(2500 pm).
2. ICICI Pru Focused blue chip equity(2500pm)
In that case for the above 2 funds the charges will be applicable?
Regards,
Krishnamurthy K
My age is 38 and I need to invest 3000 per month for next 10 years have some financial needs at that time suggest some best option to invest in equity plans
hi i want to immediately invest 7.5k in mutual funds for 25-35 years.
2 policies in large cap – 3k
1 policy in large & mid cap – 1.5k
1 policies in mid cap – 1.5k
1 policy in multi cap – 1.5 k
please help to make a best portfolio for long term investment.
thank you
Dear Devansh,
These are not insurance policies, but MF schemes.
You may select funds from each fund category as mentioned in the article.
hi, yeah in hurry i have written so,
i have check out the list so may i procedure to buy schemes from the chart you mention?
and in the way i have divided my money is proper or not?
what are the differences between large cap funds and large & mid cap funds?
i have invested,
2k in franklin templton bluechip fund growth since 2012 and want to continue further
3k in discovery & dynamic funds of ICICI,
and as per your guidance want to invest
Dear Devansh,
Continue with the invested funds.
Large cap funds primarily invest in companies which have large market capitalization (size of the company) .
please send me best sip in mutual fund sector
Dear Shay, why do you want to invest in a sector fund? Let me know your views..
Hi Sreekanth
Need your suggestion to choose the funds for SIP for 25 years.
I want to invest 5K monthly SIP for 25 years to generate a good corpus for my retirement. I can take risk here with the equity funds.
Since I have other 2 ULIP’s with SBI from past 8 years ( one with 3k monthly(growth fund) for 25 years & other one 6k quarterly for 35 years (50% growth & 50 % equity) both started in 2008.
Also starting to invest in PPF for 25 years with rupees 3200 per month ( as debt fund).
And planning to take a e-Term insurance for 50 lakhs.
Please help me in which funds shall I invest 5k monthly SIP for 25 years. I am 32 years old now.
Thanks in Advance
Regards
Prasad
Dear Prasad,
Suggest you to go through my article on ‘Retirement planning made easy‘ and revert to me.
Are you satisfied with your ULIPs performances?
Take Term insurance cover at the earliest, do not postpone.
Hi Sir
Thanks a lot the reply. Apologies for late reply, I was out of station for couple of days.
1. your blog for retirement was very useful ( your suggestion for long term is to go with the mid cap ones) . Please suggest me the names of the fund where in which I invest 5k for 25 years (preferably one large cap & 2 mid caps).
2. Regarding ULIPS, since they have done with 8 years by now, most of the mortality charges have come down & presently they have given the 8 % of returns & expecting them to be at least at 9 % over long term,
2.1 after 25 years the one with 3k monthly may give 30 lakhs : which I can use for my daughter education
2.2 the one with 6k quarterly will pay for 35 years , it may give 50 lakhs.
Please let me know if I am doing a right guess, if I close the ULIPS I will loose the 8 years of time which I have come through ( some one guided or misguided me when I was 25 years) & I hope with SBI our funds will be safe. but please guide me.
3. regarding the e-term , I am planning to go for Aviva I life, for 5o lakhs with 8k premium. Please let me know , shall I go for AVIVA or HDFC or LIC.
Thanks a lot for your time & patience.
Best regards
Prasad
Dear Prasad,
1 – You may consider 2 to 3 funds, ex – HDFC mid-cap opportunities fund, UTI Equity & TATA Balanced fund.
2 – Dont you think 9% is too low on a long term basis. Why do you want to still stick with laggards? Do not compound your mistake.
3 – You may buy Term plan from any one (out of the three).
HI
Pls provide the details i want to invest rs 1000 for each below mentioned fund.pls let me know its good or not.if you feel any other scheme is good comapre to below one so pls suggest me.
thanks in advance
MID AND SMALL CAP
1) HDFC MID CAP OPPERUNITY FUND
2) ICICI PRU DISCOVERY FUND
3) CANARA ROBECO EMERGING EUITIES FUND
4) UTI MID CAP FUND
5) FRANKLIN INDIASMALLER COMPANY FUND
LARGE CAP
1) ICICI PRU FOCUSSED BLUE CHIP FUND
2) HDFC TOP 200 FUND
BALANCE FUND
1) HDFC BALANCE FUND
SECTORAL FUND
1)ICICI PRU BANKING AND FINACIAL SERVICES
2)HDFC INFRASTRUCURE FUND
Dear Nikhil,
Why do you want to invest in so many funds? Let me know your views..
Actually my investment period is long term i.e 15-20 years that why i want to invest in mid/small caps and balanced fund.i want to select a 7 mid/small cap and one balance fund i.e hdfc balanced fund and started to 1000k/pm on each fund.so it is a best startegy or want to change my thinking.kindly suggest me.I need your support .
Thanks in advance…
Dear Nikhil,
Have you already invested in these schemes?
currently i have invested in below mentioned fund.
1)icici pru value discovery fund—1000
2)canara robeco emerging equities fund–2000
3) hadfc mid cap fund–1000
4) hdfc balanced fund–1000
kindly suggest…for further action
Dear Nikhil,
If your investment horizon is >10 years, the invested funds look fine. You may invest additional amounts in the same funds.
Hi,
I also want invest in large cap fund.pls tell me which fund is better b/w them
Tata Equity Opportunities Fund and ICICI Pru Focused Bluechip Eqty
I have two option 1) invest in both fund in rs 1000 each and
2) invest 2000 in only one fund
pls share your view so that we plan accodingly…
thanx in advance…
Dear Nikhil,
You may go ahead with ICICI Bluechip fund.
sir,
I am a retired employeee. Age 64 yrs.My present SIP are :
HDFC Top 200 1000
HDFCequity 1000
HDFC prudence 1000
BSL MNC gr. 2000
PLEASE INFORM IF THE ABOVE allanyFUNDS ARE OK
.Pl suggest 2 balance funds and 2 elss funds for my future investment
sharad
Dear Sharad,
The selected funds are fine. You have already invested in a balanced fund, you may make fresh investments in the same fund itself.
ELSS funds – consider Axis fund / Franklin Taxshield / ICICI Tax plan.
Hi Sir,
I’m 27 years old. I’m new to the mutual fund investment area and i want to do the invest for wealth creation in long term.
currently, I would save 10k in my monthly salary, out of which, I have planned to invest 6k in below funds in SIP and rest of the 4K for savings.
Large Cap:
2K in ICIC Pru foccused Bluechip Fund(G) for 5 years
Mid Cap:
2K in HDFC Mid cap opp fund(G) for 5 years
Balanced fund:
2k in HDFC balanced fund(G) for 5 years.
I have choosen the above plans. Can you please suggest if i selected are good? or any suggestion to get best returns or I want to more invest in above chossen fund.
Dear Murali,
The selected funds are good ones.
Suggest you to hold the funds for more than 5 years, especially the mid-cap one.
Hello Sreekanth Sir,
I am planning to buy the below funds for 15+ years as SIP.
1. AXIS LONG TERM EQUITY FUND – GROWTH PLAN –> 3k per month
2. HDFC BALANCED FUND – GROWTH –> 2k per month
Please advise, if any changes or any other funds should I consider instead of above funds or any other funds do I need to add. I can invest 2k more.
Thanks,
JIten
Dear Jiten,
Good ones, continue with them. Rs2k can be used to SIP in a Equity diversified fund. You may select one fund from the equity diversified list given in the article.
Dear sir,
I am working as a assistant manager in state bank group and I was very happy to see the service you render to many people by educating them. I started investing 13000/- in mutual funds in the form of SIP’S from the past one year and 2000 Reccuring deposit and small amount in PPF. I am saving in RD for my marriage purpose it comes to handy and I have 8 years goal for house construction. Besides I have enrolled PMSBY AND PMJBY Insurance schemes. Please advise me for retirement planning and I have not started investing in stocks how to know the best stocks please help me
Thankyou
Dear Sudhakar,
Let me know the names of the Mutual fund schemes. Do you have health insurance cover?
Also, read my article on Retirement planning.
Dear sir,
My SIP’s are DSP block 2500/- JM mutual fund 1000/- canara reabco 2000/- ICICI Prudential 2500/- IDBI mutual fund 2000 reliance gold fund 1000/- pm ppf 1000 pm Recurring deposit 2000/- pm
Dear Suhakar,
You have provided the fund house names, do share the Scheme names.
I WANT TO INVEST ONE LAKH FOR 15-20 YEARS TERM IN MUTUAL FUNDS ,KINDLY SUGGEST ME THE BEST FUNDS AND ALSO SUGGEST BEST SIP TO INVEST FOR 15 YEARS,NOW I HAVE SIP IN HDFC MID CAP FUND&FRANKLIN SMALLER COMPANIES FUND.WHAT ABOUT FRANKLIN INDIA HIGH GROWTH FUND?IS IT BEST TO INVEST FOR 15-20 YEARS TERM?
Dear Kanchana,
You have selected good funds. You can make additional investments in the same funds 🙂
Hello Sreekanth, I would like to invest some decent amount, could you help me in investing the money, the main aim is to save money. Risk level is from low to moderate, and higher and better returns would be the ideal option, investing period would be between 1-2 years.
Dear Madhav,
With an investment horizon of 1-2 years, low risk profile and high returns…it may not possible to identify investment avenues to match your investment requirements.
Hi Sree..
Based on ur information earlier..thinking to strart sip for below…
7K p.month for 5 years
1.icici pru focused equity..
2.franlin india prima plus..
3.hdfc midcap..
4.hdfc balanced fund..
3K p.month for tax..
1.Elss..axis long term..
2.Elss.franklin india..
3.PPF..
And heard abt NPS 50k over n above 80c section..so total tax saving wud be 2lakhs
Pls suggest fine to go with these selections…n pls tell me should i buy with my SMC account
Or should i buy with individual funds site directly..share d difference also ..thank you..
Dear Deepak,
Selected funds are fine. But remain invested for atlest 5-7 years.
You may invest through SMC or buy directly, depends on your convenience.
If you invest in DIRECT schemes through fund house websites, you can get slightly better returns (as no intermediary expenses are involved in DIRECT Schemes).
THANK YOU Shree..
Then i will invest thru online directly without SMC…
Pls shed light in NPS..dsnt luk gud due to tax at d withdrawal tym..only currnt benefit is on tax ..n returns seems less..
Pls share ur views..thnx
Dear Deepak,
Agree with your views on NPS.
i am investing SBI Magnum equity fund. growth. regular plan. invested in 2012. what is the performance of this scheme. i invested 25000/- rs. presently what is the performance should i switch to other plan? or to continue it.
Dear Jagananth,
Are you satisfied with its performance? What is your investment objective / financial goal?
I am looking for 75k to 1L investment per month. Absolutely new to SIP, staying abroad. Please suggest whether I shall start now while Greece issue/world economy is volatile or shall wait for 1 -2 months more..
How many SIP shall I select? @8-10? Do not want to keep all eggs in 1 or 2 basket
Dear Rahul,
Let me know about your investment objective and financial goal(s)..??
Looking for growth, not much worried about Risk. Still wants to go for reliable funds. Looking for @5 years investment
Dear Rahul,
If your investment horizon is around 5 years, suggest you to start investing ASAP. Do not try to TIME the markets.
Consider – ICICI Pru focused bluechip, HDFC Balanced fund & TATA Balanced fund.
If your investment horizon is more than > 5 years, consider adding one MID cap fund like HDFC Midcap opportunities fund.
Dear Sreekanth, thanks for the advice. I am going for it. Checked online..there are 4 type of funds..Direct (D), Direct (G), Direct (MD), and (G).
Understood that if I buy directly from company then it’s called as Direct and agency charges are not applied. But what are these additional categories within Direct fund? Which one shall I choose?
Got the answer.
I ve started sip of 3000/ in long term (2 company) and 1000/ in mid cap. Should I increase my portfolio with other companies / bank sector.
Dear Pravin,
Let me know the fund names and what is your investment time-frame (horizon)?
Hi Sreekanth,
I am planning to invest in mutual funds and my monthly investment would be of Rs.2000/- . I have plans to invest for about 10 yeras which should give good returns and tax savings also. plz suggest me a fundamentally strong scheme which would give me good growth.
Dear Narayan,
If you are looking for tax benefits u/s 80c and wealth accumulation, consider investing in ELSS funds.
Read my article : Top ELSS funds.
Hi Srikanth,
I am 31 years old and married . I am new to mutual funds. After i have read your blog i am planning to invest in the following funds.
1. HDFC balanced (or)HDFC childrens gift fund(2500 pm).
2. ICICI Pru Focused blue chip equity(2500pm)
I have already taken hdfc protect plus term insurance for 1cr.
Please suggest me the above funds are suitable for me.
Also guide me to where i have to contact to start investing these funds.(like how to start investing , person to contact in chennai).
Thanks in advance.
Regards,
Krishnamurthy K
Dear Krishnamurthy,
The shortlisted ones are good ones, but stay invested for atleast 5 to 7 years.
You can invest directly through respective fund house websites or through online distribution platforms lime fundsindia.com (chennai based)/ icicidirect.com etc.,
You can invest in DIRECT schemes through fund house websites, here no intermediary is involved, so you can get slightly better returns when compared to REGULAR schemes. Do note that direct and regular schemes invests in same portfolios..its just that middlemen are not involved in DIRECT Schemes.
Dear Sreekanth,
Thanks a lot for the information. I will invest through fund house websites.
Regards,
Krishnamurthy K
Hi Sreekanth,
I would like to know the administration charges in Mutual funds. Today in one of the fund show in television, one person asked the details to the finance consultant.
Details:
He said he is investing in mutual funds for last 7 years. he said around 10 to 15% from his capital amount got deducted as a administrative charges . Finance consultant told that the charges are applicable. he said that the fund return is less as expected means the charges will be deducted from capital.
Could you please help me to understand this.
Also as discussed with you before i am planning to invest in below funds.
1. HDFC balanced (or)HDFC childrens gift fund(2500 pm).
2. ICICI Pru Focused blue chip equity(2500pm)
In that case for the above 2 funds the charges will be applicable?
Regards,
Krishnamurthy K
Dear Krishnamurthy,
10 to 15%, in mutual funds..no way…They might have been discussing about ULIPs.
The Entry loads (charges) on Equity mutual funds are NIL.
Hai sir, I am new for mutual funds, I want to invest 2000rs in sip for the next 12 years for my child education and my bank loan clearance. Please suggest me which mf schemes will I invest the money iam 30year old
Dear Ravi,
Kindly read below articles;
Kid’s education goal planning
Top Term insurance plans
Sir,
I am 40 years old govt. employee having pension facility. I have a daughter in the age of 5 years. I want to invest Rs. 1000 SIP for at least 10-15 years. I am a new in this line. Could u help me to suggest the exact plan which could give us good return and stability also. Your kind co-operation is earnestly solicited.
Dear Probal,
I will surely provide you the required guidance..
Do you have sufficient life insurance and health insurance coverage?
Sir,
I have PLI of Rs. 2 Lakh, Jeevan Saral Rs. 250 p.m., Govt. medical facility where I have to spend first then it will be reimbursed.
Sir I am willing to invest in SIP in Franklin India High Growth Companies Fund (G). is this correct decision ?
Dear Probal,
Your first priority should be to get adequate life insurance cover. Kindly buy a term insurance plan at the earliest.
Kindly go through the below articles;
Top and best online term insurance plans in India
Term insurance Vs endowment insurance plans.
Franklin high growth fund is a good one, but kindly remain invested for atleast 5 to 7 years.
Hi,
I have been investing in HDFC Top 200 fund for last 4 years but, the returns have not been up to mark for recent couple of years. Should I exit this fund ? If so, what other fund can I consider in place of this?
Dear Ranga..What is your investment time-frame?
Time frame would be next 10+ years for my daughter’s education or marriage.
Then I believe you can remain invested in HDFC top 200. Is this the only MF investment have you done?
Also, read this article : Kid’s education goal planning.
Dear Srikant,After reading your blog,it seems everybody is new to investment in mutual funds including me.Although I first invested in Mastershare NFO,but after selling at Rs.12/-,I never looked towards mutual funds.But now reading some blogs including yours,I repent why I did not started investing in MFs thirty five years ago.Most of the Qs asked in your blog are by new comers.I will like to listen experinces of investers who are investing in MFs for more than 10 years.Srikant,share your experince.
Dear Mr Bansal,
Kindly read this artilce : My mutual fund portfolio.
Hello
I am a 29 yrs. old from India living with my Wife and Parents. Planning retirement and can afford to save up to 5000/- per month as on date. My agent suggested me following 5 funds to invest for next 25-30 yrs. 1000/- each.
HDFC TOP 200 Growth
Reliance TOP 200 Retail Growth
Reliance Small & Mid Cap Fund
DSP Black Rock Micro Chip Fund
ICICI Pru Discovery Fund
After reading your article realising I am making wrong choices. Please advice me, as everybody wants I also wish my money to give me as maximum returns as possible.
Regards
PARAMDEEP SINGH
[email protected]
Dear PARAMDEEP,
HDFC 200, DSP Micro & ICICI Discovery are good ones. Consider one balance fund.
Do you have term insurance cover?
Kindly read my articles;
Retirement planning 3 easy steps
Financial planning pyramid
How to create solid investment plan?
Hi ,
I m a beginner in Investment world , request you to help me in understanding below table,
Top 3 Best performing SIP Large Cap Equity Mutual Funds :
1. are returns column are cumulative or it shows returns on yearly basis and 10th year column is the cumulative of all year returns
Dear Shalini,
The returns are cumulative..
Kindly read my article to understand the how investment returns can be calculated: Five formulas to calculate investment returns.
Hello Sri,
I want to invest in MF for long term 10-15 yrs.
Tell me which is suitable MF investment.
Dear Shiva,
You may pick 3-4 funds from the above list (one fund from each fund category). Also, you may allocate more monies to a mid-cap fund if your investment horizon is 15 years.
kindly suggest me a best fund to invest for 15 years to get best returns and I want to take risk,Iam already investing in uti mid cap fund.
Dear Ramsha,
Check out HDFC Mid-cap opportunities fund or Franklin India Smaller Companies Fund. You may also consider adding one multi-cap or diversified fund.
which is the best fund in multicap/diversified funds?
Let me know your investment horizon or financial goal(s)..
I am 27, putting funds in
1000/month in ppf
1000/month in sukanya samriddi account for my girl child
sip 1000/month in uti mid cap fund
now I want to invest 1 lac lumpsum in mfs for five years, suggest me best one to get best returns and want to start another sip for 5 years term.
Dear Ramsha,
Consider investing in a balanced fund & Monthly income plan (growth options).
Example : HDFC Balanced fund & Birla MIP II wealth 25 plan.
Kindly read my articles :
Top Balanced funds
Top MIP funds..
Another SIP, consider investing in HDFC balanced fund itself.
Hi Sreekanth,
I am in a junction to take the decision how can I start my investments in MF(I have already got MF portfolio based on your blogs and I have already sent you the MFs in my previous comments)
When I call to Karvy for opening MFU CAN, they are asking to give one SIP form for each 5 MFs I selected.
As you mentioned that you follow the fundsindia.com, I was interested to invest online through that site . But they are not providing ‘DIRECT’ option .Only ‘REGULAR’ MFs I can invest. Please suggest where can I start either in fundsindia.com or MFU?
As per your recent article My Mutual Fund Portfolio – My MF Picks, I got to know it’s better to invest when market down ~200 points. So When I find market is down, can I invest that very next moment online ?
There is no benefit if the corresponding portfolio related stocks raises even though SENSEX/NIFTY market down. Right? If yes, tracking of each MF portfolio is tedious job. Isn’t it? Hows your stategy on this? I AM MORE INTERESTED to LISTEN on this
I want to take the flexibility of investments in SIP as well. Can I use this option though MFU?
I see flexi SIP option in http://www.fundsindia.com and http://www.fundsupermart.co.in .Please let me know whether the same option would available in MFU?
If not the let me know following MF AMCs are having Flexi SIPs?
1. HDFC MF
2. UTI MF
3. ICICI MF
4. Franklin Templeton MF
5. Reliance MF
Waiting for your reply
Thanks,
Venkat
Dear Venkat,
I beleive that as of now MFU is not providing online investment facility for DIRECT schemes. But soon they may come up with this option.
Yes, fundsindia provide only regular schemes.
If you are comfortable investing in Direct plans through respective fund house websites, suggest you to go ahead and invest in DIRECT schemes.
The strategy of investing when market falls many not suit to everyone. If you do not follow the markets regularly, suggest you to just create SIPs and keep investing. There is nothing wrong with this strategy too.
I am not aware of Flexi SIPs of the shortlisted AMCs. Kindly check with them.
Please comment on the below funds. my investment period is 8-10 years.
CANARA ROBECO EMERGING EQUITIES – GROWTH- 2000/month sip
Franklin India High Growth Companies Fund- 2000/ month sip
Uti equity fund-2000/month sip
Axix long term equity- for tax planning- 2000/month
Dear Shashi,
The shortlisted funds are fine.
Hi Sreekanth,
I am 26 yrs old and new to MFs. I dont even know the ground rules of it. What is the first step i need to take.
1. Should i approach a bank?
2. What should i ask them?
3. Can i start online itself??
Please guide …
Dear Karthick,
Before that, suggest you first identify your financial goal(s) and investment time-frame.
Read my articles;
Financial Planning Pyramid
How to create a solid investment plan
6 most common personal finance mistakes
You can start with a balanced fund, try investing online in Direct plans. You need to visit say HDFC mutual fund website and enroll yourself for online investment. You need to get your PAN KYC (Know your customer) done. Revert to me if you need any assistance.
Dear Shashi,
I am 53 years old central government employee. I wish to invest in SIP Rs 5000 to 7000 per month for next 7 years, as I will be retiring in 2022. I wish to have more funds at the time of retirement along with my other retirement benefits.
please suggest me SIP.
Dear Krishna,
Consider allocating monies to balanced and Mutual fund MIPs over a period of next 4 to 5 years.
Kindly read my articles;
Top Balanced funds
Top MF MIPs
Hi Sreekanth,
I’m new to mutual funds. I’m 44 yrs old and would like to starting investing 10,000 per month in MFs via SIP, for a duration of around 5-10 yrs. Could you kindly suggest me the best equity funds (1 in each category) in Mid/Small-cap and Diversified ? I would like to invest 5K in both of these. My financial goals are kids higher education and probably post-retirement expenses. Please suggest me.
Thanks in advance,
Sai
Dear Sai,
Suggest you kindly read my articles;
Kid’s education goal – calculations
Retirement planning in 3 easy steps.
Kindly revert to me if you need any guidance 🙂
Thank you Sreekanth for your quick response. I would like to thank you for your time and efforts to help & educate people who are new to investment/MFs. Your service is greatly appreciated. Keep up the good work. Thanks and take care.
I want to invest 2 lakhs in mf lumpsum can hold for 4-5 years pl suggest 4 best mf,
Pl note I am a retired person, can take medium high risk
Dear Vernon,
Consider balanced fund and a monthly income plan of MF.
Read my articles;
Top Balanced fund
Top MIP MFs
Consider allocating more money to Debt-Hybrid- Aggressive MIP fund.
i started sip investment last 3 months 1oooo/ month- 2000/ each for the following funds
1. franklin india high growth and small companies fund- 2000 each
2.icic value discovery and blue chip- 2000/ each
3 kotak select
the funds are ok
i want invest another 10000/ month
kindly suggest good mutual funds
my goal is long term ( 10 yrs) investment with good return
Dear Sushanth,
Invest the additional amount in the existing funds. You may add one more fund from the balanced funds category (like hdfc balanced fund or tata balanced fund).
Hello Sree,
Very nice and informative article.
I am 35 years old IT executive, planning for investments in SIP currently for two purposes.
1. Retirement
2. Child’s future (Baby is 6 months old now)
Can invest for 10-15 years. Amount 1000 * 5 = 5000 INR /month. Looking for your suggestion for five best and reliable SIPs where I could invest and How to invest online or do I have to visit their branch for investing.
Looking forward to your response. Thanks!
Dear S D,
Kindly read my articles, to get some idea about the calculations;
Retirement planning in 3 easy steps
Calculate required savings amount for your Kid’s education goal
Hi Sir,
I’m a 33 years old IT professional who has just started looking into investing in MF. After going through your articles and analyzing MF returns across asset classes, I have decided to start investing on the below.
Investment Time: Min of 15 years through SIP
Monthly Investment; 10000/-
Large Cap – Franklin India Oppurtunities Fund 2000/-
Multi Cap – UTI MNC Fund 2000/-
Mid Cap – DSP BlackRock Micro Cap Fund 2000/-
Balanced – Tata Balanced Fund 2000/-
Debt – HDFC High Interest Dynamic Fund 2000/-
As i’m looking for an long term investment, have chosen 80% Equity and 20% debt to start with. Will be increasing this investment by 15% every year. My aim is not wealth gain but to look for long term financial planning and build a decent corpus by the time I turn 50.
Please advice if this looks good
Dear Marcus,
Appreciate your long-term view.
Consider investing slightly more monies in multicap and midcap funds for next 5 to 7 years or so.
Instead of pure debt fund, consider investing more in balanced fund & also in a MIP fund for next few years to start with.
Shift to debt funds or FDs (safe ones) after 12 years or so from now (before the goal year).
Read my article – Top MIP funds.
Hi Sree,
I am a salaried employee(in the tax rebate range of 10%), I am confused between Tax Saver Schemes and Normal Equity plans.
For a salaried employee, is it always like so that he should invest in ELSS schemes(Tax savers),
or Non-tax saver schemes can also be so fruitful that they encounter the tax rebate which one can get on ELSS(profit on ELSS+ tax one saved on ELSS) . Plz suggest.
Dear Prashant,
It is not one SHOULD invest…an investor has to choose a financial product based on his/her financial goals and investment objectives. If he/she can identify an investment avenue which meets the requirements and also tax efficient, then it is prudent to invest in such products.
thats exactly my question is.
As we have “Axis Long term equity fund”which is giving better returns then any other under Equity/balanced/mid cap schemes, then isn’t it beneficial to always invest in tax-savers for a salaried employee as they are giving better returns + tax benefits in addition.
Dear Prashant,
As mentioned in my previous comment, if requirements are so, why not..(but my point is..we can’t say ‘should’ or ‘always’)…hope u got my point..
Your comment is awaiting moderation.
hi please comment on below funds how r they.
CANARA ROBECO EMERGING EQUITIES – GROWTH- 3000/month sip
Franklin India High Growth Companies Fund- 3000/ month sip.
can i continue with these funds.
Dear Shashi,
Let me know your investment time-frame or financial goals??
Hello Shreekanth,
I want to invest in below 4 areas with mentioned % share for each.
Large Cap – 20% of total MF investment
Medium & Small Cap – 30% (can be 2 funds also – 15%+15%)
Balanced – 20%
ELSS – 20%
I have already started SIPs in –
Large Cap – UTI Equity Fund – from Jan2015
ELSS – Axis Long Term Equity Fund – From Mar2015
Balanced – Planning to start HDFC Balanced.
Can you please suggest one from below in Mid&Small Cap segment? I have shortlisted below ones.
1. UTI Mid Cap Fund
2. DSP BlackRock Micro Cap Fund
3. Can Robeco Emerging Equities Fund
4. Reliance Small Cap Fund
Also, would this % share yield medium risk good return? (I understand all MFs are in High Risk category, so dividing between all 4 segments ) Or, any change you would suggest?
I come in 20% tax slab. So investing max in MFs.
Goal is to achieve reasonably good return with tax benefit.
Thanks for your blog. I loved it. Also shared the same with all my friends!
Regards,
Hegde
Dear Mr. Hegde,
Selected funds are fine. From the mid-cap funds, consider uti midcap / dsp micro cap.
Dear Sir, I am new in this field. I want to invest 100000/- in mutual fund for 3-5 year.
pls. suggest the funds.
Dear Apurva,
Kindly read my articles;
Top Balanced funds
Top MIP funds
Hello Sree,
I am investing Rs. 1000 in HDFC TOP 200 Growth fund since 2011. Now I want to increase my investment amount in Mutual funds to Rs. 5000/month.
1. I want to increase the amount of investment in HDFC Top 200 Growth fund for another Rs. 2500 for around 15 years besides the present investment of Rs. 1000.
2. I also want to invest another Rs. 2500 in some other good equity funds for around 15-20 years.
Please suggest me some good higher returning funds equity funds as my tenure of investment will be more than 10 years and also please let me know whether my decision to increase the amount of investment in HDFC TOP 200 growth fund is correct or not?
Dear Shashank,
Considering its stellar performance over the years, go ahead with HDFC Top 200 (though it is not an out-performer off-late).
consider one mid-cap and one diversified funds from the above list (for Rs 2.5k).
Hello Sreekanth,
Was investing in MF’s before for a period of around 10 yrs but had to cash in on the same due to a investment in a residential property for which our housing laon emi’s would be settled in another 1 yr 1/2 .Would like to start investing in MF’s with a 10 -15 year horizon.Intention is to build up on financial security as well as taking care of our childrens education considering retirement 15 yrs from now.Have 2 children aged 5 & 10 .Have a medium/moderate risk appetite.Want to start with SIP’s of around 20 k per month .Are the below funds @ 2k per fund advisable to invest in :
ICICI PRU FOCUSSED BLUE CHIP FUND (G)
FRANKLIN INDIA SMALLER COMPANIES FUND
HDFC MIDCAP OPPURTUNTIES FUND
ICICI PRUDENTIAL DYNAMIC FUND
HDFC CAPITAL BUILDER
FRANKLIN INDIA HIGH GROWTH CO’S FUND
ICICI PRUDENTIAL VALUE DISCOVERY FUND
HDFC CHILDRENS GIFT FUND-INVESTMENT PLAN
TATA BALANCED FUND PLAN -A
SBI FMCG -(G)
Would appreciate your advise and recomendation .
Thank you in advance.
Dear Roy,
You may trim down the no of funds. Also, consider creating different portfolios (can be same funds, depending on time-frame) for each goal. All the selected funds are good, understand the risks associated with sector fund (SBI FMCG) before investing.
Read my articles;
Kid’s education goal
Retirement planning in 3 easy steps
CICI PRU FOCUSSED BLUE CHIP FUND (G)
Hello Sreekanth,
Thank you for your prompt reply.Went through your articles on Kids education & retirement planning ,very structured /simplified and informative.
I would require money in another 10 to 12 yrs for further education of my 2 children.As suggested have trimmed down the no. of funds(any rationale behind the same) as per below.
ICICI PRU FOCUSSED BLUE CHIP FUND- 3 K PM
FRANKLIN INDIA PRIMA PLUS-4 K PM
ICICI PRUDENTIAL DYNAMIC FUND- 4 K PM
HDFC CAPITAL BUILDER- 4 K PM
FRANKLIN INDIA SMALLER COMPANIES FUND- 3 K PM
TATA BALANCED FUND PLAN -A – 4 K PM
Please advise if these funds and the split are ok .
Thank you
Dear Roy,
You may include one more mid-cap fund instead of a multi-cap fund (HDFC Capital builder).
Is hdfc mid cap oppurtunities fund a good option
Yes dear Roy..
Thank you Sreekanth
I want to invest in birla sunlife mnc fund for my child education ,I need money after 15 yrs,is it good fund
Dear Ramesh,
Its a good fund, besides MNC fund, you may consider investing in a balanced fund too.
Hi Sreekanth,
I am planning to invest in Balanced fund for my child higher education in next 14 years. However, little confused amongst the following funds:
1> Tata Balanced Fund
2> HDFC Balanced Fund
3> HDFC Childrens Gift Fund – Investment plan
Please advise which one should I select.
Regards,
Sourav Saha
Dear Sourav,
All three are good ones. You may select two out them.
Check out mid-cap oriented funds too, as you are looking at long-term investments.
Hi Sree,
I have decided to invest in balanced fund(HDFC balanced fund), would ypu suggest to break down the investment in HDFC balanced fund and ICICI balanced fund or it deosn’t matter much as they both in same category(Balanced fund) .
Dear Prashant,
HDFC Balanced fund has generated slightly better SIP returns (10 year period), so you may allocate higher percentage of your investment towards it.
Thanks Sree, In hdfc balanced fund
I am getting two option :
1.) HDFC BALANCED FUND – DIRECT PLAN – GROWTH OPTION NAV(105.9920) – Not available on FundsIndia
2.) HDFC BALANCED FUND – GROWTH OPTION 105.9920 NAV(104.3370) – Available of FundsIndia as well(Same NAV Cost)
a.) Can you plz let me know which one to opt for.
b.) And i have two platform to invest into, hdfc securities and FundsIndia, which platform will be beneficial in this case.
Thanks !
Dear Prashant,
If you want to invest in Direct plan, kindly visit hdfc amc website and invest online (no intermediary is involved).
Cant comment on online platforms.
I personally invest in MFs through icicidirect & fundsindia.
Thanks Sree.
I am new to all this investment, Can you plz let me know what is difference between Direct plan(one from AMC is i think termed direct) and non-direct(one available on FundsIndia).
Which is better to invest. direct or other one.
I have checked our link, http://www.relakhs.com/mf-utility-mutual-fund-online-direct-amfi/
Doubts Clarified.
Thanks!!
Hi Sir,
I am planning to start SIP in below mutual fund (ten thousand each-total 40000 INR per month) for 10 year plus time line.
1. ICICI focused blue chip – 10000 INR – 5th of every month
2. UTI mid. cap -10000 INR-10th of every month
3. Franklin High growth fund -10000 INR -15th of every month
4. HDFC balance fund -10000 INR -20th of every month
Is it ok or shall I split 10000 INR in four installment e.g. 2500 rupee for all mutual funds on 5th, 10th, 15th and 20th day of every month. So it will be 10000 INR distributed for each mutual fund in four days in a month.
Please advise me which option will be best for maximum return considering the market volatility every month.
Thanks & regards
Manjunath
Dear Manjunath,
Shortlisted funds are fine. Go ahead with your plan.
Instead of splitting 10k/4, you may consider making additional investments whenever markets fall.
I want to start SIP of Rs.2000/- Kindly suggest me on current schenario? I have HDFC Equity Fund, Reliance Banking fund, SBI Magnum Mid Cap Fund, Birla SL Infrastructure fund, Franklin India High growth companies fund & SBI Magnum Pharma Fund.
Dear Anupam,
Let me know your financial goal(s) and investment horizon.
Sir, I am 43 years, I am investing from 2012 for another 10 to 15 y in to the following schemes in sip mode. I have stopped investing in HDFC TOP 200 and want to invest in multi cap MF. Which will be the best scheme 1) Franklin India high growth or Mirae Asset India Opportunities Fund. I also want to invest another 2000 Rs so where to invest. Thanks.
1)Axis long term 2000Rs
2) icici focused blu. chip 2000Rs
3)hdfc midcap opp 2000Rs
4) hdfc top 200 sip stopped -80,000Rs Where to shift.
5) UTI opp. SIP stopped. -75000Rs shift or keep it there.
6) SBI mid cap SIP stopped – 35000Rs shift or keep.
Kindly suggest any modification reeeequired or i shoooooould keepas it is.
Dear Sunil,
1 – Good fund
2 – Good
3 – Good
4 – You can stay with HDFC 200 (or) consider Franklin India Prima plus
5 – Its a good fund
6 – Allocate the amount to HDFC Mid-cap
Thanks for your prompt reply. I should have to allocate the SBI mid cap amount to HDFC mid cap. I am right. And also what about extra 2000Rs where to invest.
Dear Sunil,
Consider investing Rs 2k in Franklin Prima plus & HDFC Mid-cap funds.
Hi Sreekant…
Really good site and like the details mentioned. I have been investing with my understanding till now of the market.
i have :
DMAT : Pure stock purchase and hold (1.5lacs) splitted into infrastructure, banking sector and similar EFTs
PPF: yearly 50 thousand(per year)—investing since last 4 years (m 28 year old n unmarried)
Mutual funds: 2 lacs till now only ELSS (lumpsum + SIP accumulated)
Term plan: 50 lacs (6k annual premium)
other Savings: 15 lakhs (FDs + Saving a/c)
TOTAL: around 20 lakhs ….1 1500sq land of value around 10 lakhs
NEED your guidance on further investments through SIP for wealth creations: 40k per month ( 20k in FD + 20 K in SIP or any mode that you could suggest :)). i am risk aversed but more inclined towards security of my funds too.. both aggressive and moderate strategy would like to know..
please suggest…thank you so much in advance!!
GOALS:
1. Planning to buy property ready to move in amounting 50 lakh to 60 lakh
2. savings for future and family (generally expected ..like childeren education and other expenditure of a family person) and retirement….
I have a nuclear family (parents and me) and does not have any debt at the moment and not planning to get into as well except next 5 years for buying home…
waiting for your inputs. Thank you once again..
Dear Deepak,
Why are you holding Rs 15 lakhs in FDs, any particular reason?
Do you have health insurance cover? What about your parents’?
Why do you want to invest Rs 20k per month in FDs?
Hey Shree,
Thnks for the prompt reply !
–Expecting to get married by early next year
* (6 lakhs.mrg exp)..
* 1 lakh(post marriage trips) and
* Considering contingency plan (30000*12)=3.6lac is out of that corpus
* left with 3.5 odd something(which is into EPF + NSE + Life stage pension ICICI pru..though
not investing further life stage pension just holding it)
Hence the 15 lakh …sorry should have mentioned this early.
–Yes health cover but company funded (3 lakhs), father is in govt. sector so mother and father both covered.
–again as bit risk averse (badly need to change this though..there is potential to grow money if i get bit more towards risk of FD allocation… (rest would be in equity and if i get surplus like bonus and all would be putting that into equity shared(DMAT) directly.
SUGGESTION/GUIDANCE PLEASE..
m planning to save (45k per month for next five years as said above, wotever looks best to you ,,pls share)
and ya looked at ur retirement calculator..cell B37 is negative amount (FV of current investment) hence should’nt that be added instead to B20 ? my B20 required fund without putting that subtraction came out as 2.20 crores..
MANY THANKS !!
Dear Deepak,
Appreciate your planning to meet your marriage expenses. Kindly do not take any personal loan.
Health insurance – Read my article “Super top up health insurance plans“.
Term insurance – Review your life insurance requirement once you get marry. Read my article “Top 7 best online term insurance plans“.
Yes, not taking enough RISK (wrt investments) itself is a RISK. You need to give a chance to your money to work for you. Read my article – “Avoid FD for long-term investment“.
For 5 year time-horizon, do consider investing in balanced fund & MIP mutual funds for next 4 years, after that you may shift to debt/FD (safe) investments.
Kindly read my articles – “Top balanced funds” & “Top MIP funds“.
Retirement calculator – Since B37 is an optional calculation, the user has to manually subtract this value from “B20” cell value.
Yes, not taking enough RISK (wrt investments) itself is a RISK…
Hey Shree..reading this instantly made me less risk averse …thnx for d guidance…hope m able to meet d goals…just outline equity ..large..mid..Mip plan ..to split…30k in sip…
addition on 1lac perannum in kitty with recent hike in salary tomorrow…ready to invest with increased risk for next 5 years atleast….Many Thanks.
Dear Deepak,
If we do not take risk and stick to only safe investments, wealth will not grow and we will fall short of the required corpus amounts..that’s the biggest risk of all..
For 5 year time horizon..as suggested, you may consider balanced fund and MIP fund.
MANY THANKS !!:)
Hi Sree, Can you plz explain the difference between investing in ULIP’s and Mutual funds.
AS far as i know, ULIP’s also put your money into Market(through various Equity/Debt funds) and provide’s you with some sort of life insurance(which is not enough).
But if the whole money is invested in market(in ULIP’s) and in addition you are getting some risk cover(insurance), why ULIP’s are not preferred over Mutual funds for investments.
The only drawback i found in ULIP’s is some Administratve charges/Mortality charges etc. but in lieu of this, they are keeping you insured as well.
Is there something which i am not aware about ULIP’s, plz clarify.
Dear Prashant,
Why do you want to pay the additional charges in a ULIP plan, when MFs are available at NIL entry load??
Let’s again go back to the basics – Let me know ‘what is insurance?’ according to you?
Thats a plus in ULIP, for pure insurance purpose someone should opt term plan only.
And aren’t you paying anything to brokerage houses/AMC’s while investing in Mutual Funds.
Just FYI, ICICI Direct is taking Rs.10o for lumpsum and 1.5%/30 Rs.(whatever is minimum) for SIP’s while investing in Mutual Funds.(which is lesser than all the charges they imply on ULIP Premiums).
Dear Prashant,
What are you trying to prove??
You mean to say that charges in MFs are lesser than ULIPs? But, that’s a good point to invest in MFs right??
Nothing to prove , Sree. Just wants to know the reason why is it so(MF’s are better to ULIP’s). as i dont hv that much knowledge as you have.
As for a layman like me, If A(ULIP) is giving benefits of X(market Investement)+y(Insurance)-z(some charges) ,
and,
B is giving you X(market Investement) – z1(some charges of brokerage houses/AMC’s, as expalined in my previous comment about ICICI charges on Mutual Fund).
what will you opt for A or B.
Dear Prashant,
I believe that you are definitely not fall under ‘layman’ category.
You are well aware of the basics of investments 🙂
With the available info, what would be your choice? and why?
Hi Sree. thanks for not counting me in Layman. but its coz of all your posts which helps me enhance further and better.
With given info, my choice will be A.
I am asking this question just to get what i am missing about ULIP/MF’s.
Dear Prashant,
Its my pleasure to clarify your queries 🙂
Expenses are built-in ULIPs, whereas MFs do not have any expenses (Entry loads on equity MFs). Whatever expenses that you have quoted are something to do
with the platform. An investor who is comfortable investing online by visiting fundhouse website, can surely opt for DIRECT plans.
MFs are much more transparent, flexible and you will have better control on your portfolio. What say?
Thanks Sree.
As you have quoted that DIRECT plans will be better compared to its REGULAR counterpart, but if portfolio of both plans are same then returns also will be same !!!, then how come DIRECT plans are more beneficial.
Even DIRECT plans have more NAV’s,so in that way as well it doesn’t cost less than the REGULAR plan.
Dear Prashant,
There is no broker/distributor involved in Direct plans. In regular plans, fund houses incur expenses (they have to pay commissions etc to intermediaries), which they adjust from fund value and then calculate final NAV. So, direct plans generate slightly better returns compared to regular ones.
Then why NAV of DIRECT plans is higher, if there are no intermediaries, NAV should be lesser than the NAV of REGULAR plan.
doesn’t it seems contradictory to you ?
Dear Prashant,
For example : 100 (income) – 10 (intermediary expenses) = 90 (NAV of regular plan)
100 – Nil intermediary expenses = 100 (NAV of Direct plan)
Thanks Sree.
Taking your example, if i am going to invest lets say 900 Rs.
In Regular plan,100 Units will be bought(900/90), while in case of DIRECT plan, 90 units will be bought(900/100).
So,if i am going to sell it after a month and lets say there is a increase in NAV of units by Rs. 1(as both have same portfolio, thus growth also will be same), then i will earn Rs. 100(100 units*1 Rs profit) in REGULAR plan and Rs. 90 (90 Units *1 Rs. profit) in case of DIRECT plan.
Plz clarify where i am getting this wrong.
Thanks !!
Dear Prashant,
Difference between Regular vs Direct NAV won’t be that much as assumed by you (10 units difference or in percentage terms).
I have just continued with ur example, its not mine :).
Even if difference is lower, UNITS purchased in REGULAR plans will be higher as less NAV.
You might have got my query.
Dear Prashant,
I believe that the best way to learn any subject is by doing/practicing..
Suggest you to buy Rs 1k worth of units of a Regular as well as Direct plan of the same MF scheme. You track the performance of both NAVs for say 6 months..I am sure you will understand what I am trying to convey to you.
Hi Sreekant,
I am a Central Govt employee in a paramilitary force. I would be retired in 2033. Now I am 39 yrs old. I have only a investment in my GPF account so please suggest me to invest in a best mutual fund scheme by investing 5-7 K per month for long term at least for 10 years.
Dear Hitesh,
Do you have any life insurance coverage? (term plan??)
Kindly let me know about your financial goal(s)??
Dear Mr. Sreekant, I want to invest Rs.2000 p.m. for the period of 3yrs or more. kindly suggest the plan to go with. I am a Private job holder with not much funds to invest, wanna be on the safe side always, kindly suggest
Dear Neeraj,
Kindly read my articles:
Top Balanced funds
Top MIP funds
Hi,
Currently i have the following funds invested.Can you please check and let me know whether i am in the right direction to save for my pension at the age of 55 and child education who is just born? i am curerntly at 34.
HDFC top 200 growth : 7000
Icici pru focused bluchip equity:6000
Reliance Equity Opportunities:6000
DSP Blackrock small and midcap:3000
IDFC Premier Equity:2000
Birla Sunlife frontline Equity:3000
UTI Equity:3000
Dear Babul,
You have totally 4 large-cap funds & 3 mid-cap oriented funds.
Suggest you trim down your portfolio and consider investing in a balanced & diversified funds too.
Kindly read my article : Top Balanced funds.
Dear Mr Sreekant,
Your website is really very informative. I am a salaried employee. I can invest about Rs 10,000 monthly. Please suggest me the best possible investment plans which i can also show as saving for income tax rebate
Have started investing from this month 2000 p.m. in axis mid cap – growth, for 3 years. I am a salaried person. Should i continue with axis mid cap – growth or change it to something else.
Dear Pankhuri,
I am not convinced with the fund’s performance, and that too its just a 4 year old fund.
But if your time-frame is 3 years, suggest you not to invest in mid-cap funds.
Dear Mr. Sreekanth
I am new to invest in MF. I have plan to invest 100000 yearly in MF. This investment is for my child education . 15 years to invest OR could be more
FYI , already doing investment in PPF 1.5 lac for tax saving
Can I buy MF in Lump sum whenever having money ? if not able to do SIP regularly
Kindly let me know some good return Mutual Funds to invest
Thanks in advance
Dear Sandip,
Suggest you to kindly go through my article : “Calculate how much to save for your kid’s education“.
Are you a salaried person? Do you contribute to EPF?
You can invest lump sum but try to invest as often as possible (whenever markets fall).
Do you have term insurance cover?
Dear Mr. Sreekanth
Thanks for your reply
I am not Salaried . I do freelancing job for Overseas hence income not fix but get good while on job.
I do not have term insurance cover so far. Suggest me the best one
Dear Sandip,
Kindly read my article – “Top 7 best online term insurance plans“.
best mutual fund product to invest for 5 years term
Hello Sree,
I am knew to SIP and planning to invest around 2000 per month can you please suggest me some best mutual funds to invest
Dear Purnima,
Let me know your investment horizon and financial goal(s)??
Hi Sree,
Thanks for providing such nice info. on Mutual funds and investment. This is really helping a lot of newbies like me.
Can you plz suggest the portfolio funding as per my below needs/requirement.
I am 27 Yr. old, I already have a term plan(LIC), a ULIP(ICICI) , Endowment from LIC’s(waste ..:( ) and one Axis LT Mutual Fund.
I will really needing money in next 3.5 to 4 years(15-20 lakhs). Can you plz suggest which portfolio/funds should i go. I can’t take much risk as that money after 4 years is needed in any case(so, it should atleast give 10% ROI), but in parallel i want to get the optimize results/interest. I can invest upto 30K -35K per month. I dont’t want to have tax savers as i some howcovered the same by previous investments.
Plz suggest the optimum portfolio/funds.
Thanks !
Dear Prashant,
Thanks for your appreciation.
Discontinue your LIC endowment plan. Read my article – ” How to get rid off bad insurance policies?”
Suggest you to check out Mutual Fund monthly income plans (growth option). Read my article : “Top MF MIP plans“.
Thanks for suggestions.
1.) IN MIP’s , do i need to invest lumpsum or SIP’s ?
I checked the link given for MIP’s, there the best plan is giving 10-11% return, which i dont think is good when you are investing in Market. 9.25% someone will get with FD as well and that too with Tax benefit, can you plz justify/explain.
Dear Prashant,
MIPs – Both are allowed (Sips / Lump sum).
MIPs are best suited for short-term goals ie 2-3 years. Not advisable to invest for long-term.
MIPs primarily invest in Debt securities and have very limited exposure to MARKETS (as mentioned by you).
To get tax benefits on Fixed deposits, you need to stay invested for 5 years, in that case I would prefer investing in a balanced fund. What is your opinion?
Yeah, equity oriented balanced funds seems good(returns more or around 20% ).
1.) Do we have any tax saver in this category(Balanced funds).
2.) If i go SIP, do we have lock-in of 3 or years Mandatory in this category.
3.) As per our discussion, Balanced funds seems out to be the best as per my needs, As i have to invest 30-35K monthly, is it better to invest in HDFC/ICICI Balanced fund or break-up would be better. Plz suggest.
Dear Prashant,
Balanced funds are my personal favorites. But, investment time-frame should be atleast 5 years, to get decent returns.
1 – No
2 – Balanced funds : No lock-in period is applicable.
3 – What is your investment horizon? Any specific financial goal(s)?
Thanks.
Yes, i have specific goal, after 4 years i have to do a down payment of my Home loan(subvention plan), (so, i want to optimize my savings of these four years, so that i can minimize the emi thereafter.
Dear Prashant,
Have you allocated monies to your other goals like retirement etc.,?
Kindly read my article : ” The 6 most common Personal Finance Mistakes“.
I have read you post on The 6 most common Personal Finance Mistakes, and commented there as well my views on the same.
nothing for retirement as of now, just pf’s and ppf’s.. will plan for it after 4 years(at age of 31), when done with this home loan thing.
So, if you can plz suggest 4 year financial horizon investment, as previously finalized which Balanced fund.
Dear Prashant,
End of the day its your PERSONAL finances..customize it as per your requirements. I can only give suggestions to the best of my knowledge.
Go ahead with a balanced fund, but try to redeem it after 3 years and move to safe investment avenues (if you want the corpus after 4 years).
Thanks a lot Sree.
Hello Sir,
I have surplus of 1 lakh rupee. I wanted to invest this for minimum 7 year (may be extend for even long duration if I don’t require at that time). I am having SIP running for UTI equity, UTI mid cap, HDFC mid cap and HDFC balance fund.
I need your suggestion for how to invest this 1 lakh. Shall I do lump sum of 25000 each in these four fund (As market is going down these days) or 50000 each in one Mid cap and one Balance fund.
Also shall I invest this equally in one mid cap and balance fund splitting the money in 6 month.
Please suggest
Thanks & regards
Pratap
Dear Pratap,
Invest Rs 1 Lakh over a period of next 3 months. If you track the markets, you can buy on dips. Allocate the lump sum investment to HDFC balanced fund (Rs 20k * 3 installments) & UTI Equity (Rs 13k * 3) , considering 7 year investment horizon. Continue your SIPs.
Hi,
I’m 30years old.. planning to invest in the below funds through SIP for long term.. my goal is to build retirement corpus. Are these funds and allocation looks good??
ICICI Pru Tax Plan: rs.2000
ICICI Prudential Focused Bluechip Equity: rs.3000
UTI equity: rs.3000
Franklin India Prima Plus Fund: rs.3000
Franklin India High Growth Companies Fund: rs.3000
Mirae Asset Emerging Bluechip: rs.2000
is there any overlap between Franklin India Prima plus and high growth cos??
For mid-small category, I want to invest in Franklin smaller cos but since there are 2 franklin funds i have decided to go for Mirae Asset Emerging Bluechip..is this good? or should i go for hdfc mid cap oppur fund?? please advice.
Dear Lakshmi,
Suggest you to go ahead with one Large cap fund (either ICICI Focused or UTI equity).
Consider one balanced fund instead of Franklin Prima or Franklin High growth (Ex – TATA balanced fund).
Hi, I’m Manjunath. I’m planning to make monthly investment in ICICI’s SIP plans. Can you please tell me how much should be my monthly goals ( I can make a monthly investment of 4 k -5 k max ) so that I can get a good amount for my future ( Say after 10 yrs ) .Also what are the two SIP plans which you would suggest for me to invest in as i’m a newbie and don’t have much idea about it. ICICI’s Blue Chip and Tech fund are the two SIP’s which I felt are good. What is your perception about this.
Thanks,
Manjunath
Dear Manjunath,
If you do have any experience with MFs, start with a balance fund like ICICI Balanced fund. Read my article – “Top Balanced Funds“.
Sir,
I am 28 years old and working at a PSU. I am currently investing 20k per month in SIP through an independent portal Fundsindia. I am hoping to invest for 12-15 years. My current allocations are:
UTI Equity – 3k
UTI Midcap – 5k
Franklin India Prima Plus – 5k
HDFC Balanced Fund – 5k
Franklin India Smaller Cos Fund – 2k
Is my choice of MFs right or should I change my portfolio? And am I at an disadvantage for choosing independent portal instead of AMCs?
Moreover I have FD worth 5 lacs. Should I invest it in Debt funds considering I need a bulk of money in 2 years?
Ashish
Dear Ashish,
Even I use fundsindia for my investment requirements.
If you want to earn a bit higher returns you can invest in DIRECT schemes. For this, you need to invest through respective AMC websites.
Selected funds are good ones.
Regarding alternative to FD..Suggest you to read my artilce ” Top MIP mutual funds“.
Hi Srikanth,
I read your article. As usual it was really informative. But as far as i could tell MIPs are something we can co-relate to RDs as it is a monthly scheme. I was asking about the lump sump investment like FDs.
Dear Ashish,
Kindly read the MIP related article again. I clearly mentioned that MIPs can be a better alternative to FDs / lump sum investment (for 2 – 3 years investment horizon).
Dear Sanchit,
Let me first congratulate you for starting this wonderful blog. It’s really helpful and informative for the people new to investment field. I am 30 year old and new to the mutual fund investing. I am planning for 3 different goals through Mutual Funds.
1. Short term goal – 5 years (Buying a economical car say i20/swift)
2. Education of the child – 10 to 15 years (say engg/medical etc. as per his choice)
3. Retirement planning (which is 28 years from now)
Please advice on the which funds should be selected for each of the above goal and amount allocation for them. I am planning to start with total SIP of Rs. 10000 pm and may increase gradually.
Dear Nikhil,
Kindly go through my articles, download the calculators which are available in the articles to calculate the required average investment for your goals;
Calculate Future Value of your investments
Calculate how much to save for your Kid’s education goal
Retirement Planning in 3 easy steps
Financial Planning Pyramid
Do you have term insurance cover?
Hello sir,
I am 40 year old. I wanted to invest 50000 per month in MF via SIP.
Currently I don’t have any type loan, having health and term insurance. I have fixed deposit of 3 lakhs,2 lakhs of PPF,2 lakhs in Debt MF and 10 lakhs PF amount. I am doing yearly tax saving limit of 1.5 lakhs via PPF, PF and Insurance premium.
My financial goal is
1. My son graduation-8 year
2. My son post-graduation -12 year
3. Retirement corpus -15 year(at 55 age)
After my analysis I have decided below fund
A. Large cap
UTI Equity fund
B. Mid & small cap
Franklin small companies
C. Balance fund
HDFC Balance fund
D. Multicap/Diversified
Franklin High growth companies
E. Debt fund
ICICI Pru long term
I need your advice on money allocation to different type of fund. Different tools/friends/company financial advisor has given different input. Some says Invest 30%in Multicap,20%large,20%in Mid & small cap, 15% in balance and 15% in Debt fund. Some other says at this age u don’t have any loan so u should take more risk and invest 40% in Mid and small,15% each in large ,balance , Multicap and Debt fund.
Can you please advise me what should be ideal and best allocation of money in 5 type of fund(Large, Mid&small, Balance, Multicap and Debt fund).
Thanks & regards
Harish
Dear Harish,
Kindly let me know the Life insurance policies details.
Kindly read below articles for Goal(s) planning;
Calculate how much to save for your Kid’s education
Retirement Planning in 3 easy steps
Calculate Future value of your investments
Your asset allocation should be dependent on the Goal(s) target year and investment horizon.
If goal target year is >10 years, invest more monies in Diversified & Mid-cap funds for next 8 years or so and then switch to Debt funds.
Sir i want to invest 10k pm for long term. I am 25 yrs old and can u plz suggest me for how much period i should invest and how should i increase my savings periodically.
Dear Shon,
Any specific financial goal? (or) you just want to create long-term wealth?
Hi Sreekanth,
First of all let me tell you that your articles and posts are very informative and helpful in understanding the MFs.
I am 28 years old, working in an IT company and earning 50000 pm. My monthly expenses are around 22000 Rs. Currently I don’t have any loan against me.
– I have been investing 3000 pm in PPF for past 2 years.
– I have life insurance cover of 35 lakhs (term plan from LIC).
– I have health insurance cover of 3 lakhs with New India Assurance, I am also paying health insurance premium for my dependent father.
– With the current financial year I have started investing Rs. 2000 pm in Axis Long Term Equity Fund- Direct plan-Growth option
– Also I do have around 2 lakhs as cash reserve.
My goals are
– my marriage in next 1 – 2 years
– purchasing house in 1 – 2 years( with help of loan)
– buying a car in next 3 – 4 years
My risk appetite is somewhere between medium to high and I have enough patience to be invested on Long term basis.
Kindly help me in making a financial plan and building MF portfolio.
Thanks in advance 🙂
Dear Ritesh,
Thank you for the appreciation!
Do you contribute to EPF? The health insurance plan is not the company’s (employer’s) one right?
I read your goals. Use cash reserve to meet your marriage expenses. Don’t take any personal loans.
Before creating an investment plan for 2 & 3 goals, kindly read my article – “The 6 most common Personal Finance mistakes people make“
Dear Sreekanth,
Thanks for your time and reply.
– Yes,along with the PPF I have been contributing to EPF for past 2 years.
– Yes, I personally have opted for the insurance plan,and not offerred by the organisation in which I am working.
– I agree with you on not taking personal loan. Hence I got the clear idea about achieving my 1st goal.
– I read the article, buying car is my least priority and can be postponed till I accumulate enough money so as to minimise the car loan. I think I got the message as far as my 3rd goal is concerned.
– It seems I will have to rethink about investment plan for my 2nd goal.
However I have few more queries, if you could answer:
1. Is my health insurance cover and life insurance enough? If not what should I do to better it?
2. Is my PPF investment proper considering all the information provided? If not what should I do to make it better?
Thank you.
Dear Ritesh,
1 – What’s the percentage of EPF + PPF out of total savings? (considering EPF as savings)
2 – Review your life insurance coverage requirement after your marriage
3 – If you use your cash reserve, start RD for 12 months and start accumulating emergency fund again. Remember, your reserve fund should be atleast 3 times of your living expenses (your expenses will increase after marriage).
4 – Try to avoid car loan..if unavoidable, go for economy one.
5 – Instead of acquiring Home loan, Start saving for your retirement and also create a separate emergency fund to meet any medical emergencies (for father). If you still have sufficient disposable income, go ahead with your property investment decision :).
6 – Health insurance : Read my article – “Top Up & Super Top Up Health Insurance Plans“
Dear Sreekanth,
Thanks for your reply.
I am planning for Online term insurance plan with cover 1 crore, probably Aviva i-Life secure.
I also started with RD as you suggested.
After reading your educative article on Health insurance I am planning to take super topup for myself.
Thanks again and my best wishes for your blog.
Wonderful and nice to know, dear Ritesh. Keep visiting! Do share my articles with your friends 🙂
Hi Sir,
I am 27 years old and was considering to invest in MFs. I have never invested before and hence have no insight. I am willing to invest 25,000 per month. Please advise me as to where and in what proportion should I invest in various MFs. You can consider me as a cautiously aggressive investor. My id is biswadeepdey3 @ gmail.com .
Dear Biswadeep,
Any specific financial goal(s)?
I am considering to buy an apartment in and around 75 lacs in 13-15 years. At present investing around 20k-25k seems reasonable.
Dear Biswadeep,
Suggest you to first allocate monies for your ‘retirement goal’.
Kindly go through my article – Retirement planning in 3 easy steps .
Consider these funds,
ICICI Foucsed Bluechip
UTI mid cap
Franklin Prima plus
You may allocate more money to mid-cap fund in the initial few years.
Thanks Sreekanth. I already have a post retirement, medical and life insurance schemes. I was considering of investing in 2 large cap, 1 mid cap and 1 diversified. Should I stick to it or make any change in the plan ?
Dear Biswadeep,
May I know the scheme names (retirement & insurance schemes).
Since your investment horizon is >10 years, invest in 2 mid-cap, 1 diversified and 1 balanced funds.
Sir,
I am working at ONGC. We have an internal scheme called PRBS which is pretty good. As for insurance I have HDFC Click 2 Protect Plus of 1.5 cr and an additional ONGC scheme of 40 lacs.
Regarding MFs, I am not able understand the co-relation between my investment horizon and type MF funds.
Sir,
I work at ONGC. ONGC has a comprehensive post retirement scheme called PRBS and life insurance scheme of 40lacs called CSSS. In addition to it I have HDFC Click 2 Protect Plus of 1.5 cr.
Regarding MFs, I am unable to understand the co-relation between various funds(large,midcap,diverse,income etc) and my investment horizon.
Dear Biswadeep,
If your investment horizon is say 3 years, that is you invest for 3 years and redeem after completing 3 years. In this kind of scenario, it is not advisable to invest
in Equity oriented funds, especially the mid-cap and sector oriented ones.
If your goal is say 10 years from now, you can be aggressive with your selection of funds and invest in Mid-cap funds (allocation can be more).
Revert to me if you need more info.
Thanks Sreekanth for your patience.This was of great help.
You are welcome dear Biswadeep. Keep visiting and kindly share articles with your friends 🙂
hi..shreekant
Recently I have completed my education and joined the job.. i want invest in mutual fund for 5years.. my salary is not taxable .could you please advice me the scheme which will be best suitable for me.
Dear Ravi,
Start with Balanced fund and understand about MFs. Read my articles – “Top Balanced Funds” , “Top Equity Funds” & “Top MIP Funds“
hi this is surinder
I want to invest in sip,
I can invest 45000 pm
in how many funds and in which all fund should I invest, my time is 2 yrs for investing ,thanks
Dear Surinder,
Kindly read my article – ” Top Monthly Income Mutual Fund Plans“.
Hi All,
This post is not to ask any question rather to inform all about investing in SIP.
Firstly, do not select the funds which have similar composition. This leads to duplication of investments and voids diversification.
Secondly, Do not choose any portal or Broker if you can afford to go to AMC and get SIP started. This helps you to have Direct Plan which enjoys expense rebate owing to SEBI Directive in 2013. The net advantage of Direct plan over regular plan can be as high 1.5% which translate into substantial amount if SIP tenure is substantial.
Thirdly, park your money in Money market Funds instead of FD’s. This generates better returns and ensures good liquidity for you.
Fourth, Keep tracking your investments every quarterly or bi annually and keep rebalancing your portfolio. Though you have started SIP yet buying at dips would be a good idea.
Fifth, Avoid thematic funds if you are not very sure about sectoral growth.
Sixth, don’t aspire to generate too high returns . Anything with CAGR over 15% is decent enough.
Happy investing and keep shooting your question to our man Sreekanth. I am my self an investment planner and financial planning is in my blood as I am a chartered accountant by qualification.
Thanks,
Ashutosh
Dear Ashutosh,
Thank you for sharing your views. Very well written..Keep visiting and keep sharing your views!
Let me summarize your points in my style 🙂
1 – Over diversification is not beneficial
2 – Go ‘Direct’
3 – Don’t ignore Debt funds
4 – Track your portfolio & Buy on dips.
5 – Sector funds are not for everyone
6 – Be realistic with your Return expectations.
Hi Srikanth,
(1) I want to know that. if i start isip thru internet banking and if i have any financial problem and want to stop/cancel isip then what is the process.
(2) Can i stop isip before a year. means after 2-3 deductions…….
(3) In isip i delete biller from net banking from my side but what about AMC side….. pls explain it………………..
Dear Prem,
Kindly let me know which online platform are your referring to?
Generally, all online platforms offer you the option to pause / cancel SIPs.
I resister isip on funds houses website Franklin temp,uti,Axis and hdfc mutual funds website separtly
Dear Prem,
I do not have real time experience in booking MF SIPs through AMC websites..need to check and get back to you.
But, I believe there should be options to pause / cancel your SIPs.
Hi Sreekanth,
I am new to SIP. Planning to start off with an investment of Rs. 2000 per month and gradually increase the amount in the same ratio(as below) over a period of at least 15 yrs.I have selected 3 plans :-
1) HDFC Balanced (Rs. 1000)
2) UTI Midcap (Rs. 500)
3) HDFC Midcap(Rs. 500)
I am a bit confused whether I should go for HDFC Balanced plan or some debt plan like SBI Midcap to bring down the risk factor. Kindly comment on the above selection list and suggest better option if any.
Regards,
Indranil.
Sorry i mentioned SBI Midcap instead of SBI Magnum debt plan.
Dear Indranil,
If your investment horizon is > 15 years, just go ahead with your selection. You may add one Large cap fund to your portfolio.
hi. my age is 28, i want invest in sip, tell me best plan for me, I’m invest 5000 per month,
5000 invest in difference sector?
Please suggest me
Dear jdgoswami,
Do you have any specific Financial Goal(s) in mind? How long would you like to stay invested?
i want good return, so tell me how log time to invest, i think approx 5 to 10 years.
but
give me guidance for you side
Dear jdgoswami,
Pick any one fund from each fund category and stay invested for 5 to 10 years.
Which mutual fund to invest in. b’coz i don’t have any idea.
so give me fully details , Get good returns by Invest.
Dear jdgoswami,
Consider – Franklin Bluechip, HDFC Balanced Fund & UTI Midcap. Suggest you to allocate more money towards HDFC Balanced fund.
Hello sir,
I am 41 year old and investing per month 45000 rupees via SIP in below fund for 10 year+ time line.
1. UTI equity fund-15000
2. Franklin india small com -20000
3. HDFC balance fund –10000
For tax saving I am already saving 1.5 lakhs(PPF and PF).I am already having health, term insurance, emergency fund for 1 year.
I wanted to invest 5000 extra every month for 8-10 year. Here I wanted to take very high risk.
When I have done some analysis via Value research and money control below fund was among highest given return in 1 year,2 year , 3 year ,4 year and 5 year. Please suggest if I can invest in below(sector) fund.
1. SBI pharma -2500
2. UTI transport and logistics fund -2500
Or please suggest some fund to invest where I can take very risk for best return.
Thanks & regards
Rajiv Ranjan
Dear Rajiv,
If you want to build an aggressive portfolio, its advisable to invest in small & midcap oriented funds instead of Sector oriented funds.
You should be very careful with these thematic funds and should follow / should be able to understand the business cycles of these sectors.
Hi Sreekanth,
Thank you very much for your valuable suggestions on personnel finance.
Here I would like to know about the discontinued mutual funds in my portfolio.
I did SIP on HDFC Top 200 for 2 year till September 2013, then I switched to ICICI Focused Blue chip from HDFC Top 200. Current fund value of my HDFC Top 200 is around Rs. 200000. Should I withdraw this amount or not, though i am investing for my long term goals(i.e. 20 years or more). If i have to redeem this amount then where should i put this money because my objective is to earn maximum return. So, it would great if you can guide us on such discontinued funds.
Thanks and Regards
Anil
Dear Anil,
I did not understand your query.
If you have shifted from HDFC Top 200 to ICICI Focused fund, then continue with ICICI fund.
I would like to know about investing in:
(1) Gold Mutual Funds
(2) Arbitrage Mutual Funds
(3) Index Funds
Kindly guide w.r.t the above options and viability of the same w.r.t returns and risk.
Dear Sanchit,
As of now I have not published any articles on these topics. Suggest you to GOOGLE them and you may find lots of information.
By the way, let me know about your financial goals and why do you want to invest in these options?
Hi Srinivas,
Thanks for the article.
I have a Lump Sump of 150000 in hand to invest right now as part of the yearly Tax Saving.
I am planning to invest as Lump Sump coz If I don’t the funds will be utilized elsewhere.
I have outlined the below 3 funds for a Lump Sump investment of 50000 each with a Lock In of 3 years. I will keep the funds invested if the market is not performing fairly post the Lock In Period and withdraw at suitable time.
Axis Long Term Equity Fund (G)
Franklin India Taxshield Fund (G)
Icici Prudential Tax Plan (G) Regular Plan
I am opting for 3 years coz I might have a few commitments to meet 3 years down the line. If the funds are giving good returns I could withdraw them and meet the same.
Please suggest your inputs on the same. I am planning to make the investment on 1st June 2015. Hence please respond.
Regards,
Naman
Dear Naman,
The selected funds are good ones.
How important are your near-term commitments (after 3 years)..is a big question mark here?? Are you solely dependent on these monies (3 MFs) to meet your near term goal(s)??
Hi,
I am 26, Male working in an MNC.
I have read your post and have created my portfolio of 5 funds.
Am a new investor to mutual funds. Please review my fund list –
1. UTI Equity Fund (G) – 1000 Rs
2. HDFC Balanced Fund (G)- 1000 Rs –
3. Axis Long Term Equity Fund (G) – 1000 Rs
4. Think – Birla Sun Life Top 100 Fund (G) – 1000 Rs
5. Think – SBI Blue Chip Fund (G) – 1000 Rs
Do they look good? With this funds, what returns can I expect over 5 years (approx)?
Appreciate your quick response to this 🙂
Hi Sreekanth,
Just to add that I am already invested in 3 funds (1-3) and planning to create Birla and SBI of 1000 Rs each or ICICI for 2000 Rs.
** HAVE PRESENTLY **
1. UTI Equity Fund (G) – 1000 Rs
2. HDFC Balanced Fund (G)- 1000 Rs –
3. Axis Long Term Equity Fund (G) – 1000 Rs
I want to add 2000 to SIP. which choice is better ?
4. Birla Sun Life Top 100 Fund (G) – 1000 Rs
5. SBI Blue Chip Fund (G) – 1000 Rs
OR
6. ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – 2000 Rs
With this funds, what returns can I expect over 5 years (approx)?
Dear Kaustav,
1, 2 & 3 are good ones.
I prefer ICICI Fund to other two funds. It is very tough to project returns. Suggest you to stay invested for more than 5 years, and you can expect returns of >12% CAGR..(but do understand the risks associated with equity funds..)
hi
i want to invest in SIP but before starting i want to know some questions
1) the annual retruns shows here and also on FUND HOUSES websites are after deducting expense ration ?
2) should we invest in index funds or equity mf….. as exp ratio in index funds are low but i didn’t know more than that about index funds pls tell me
regards from
M singh
Dear Mr Singh,
1 – Yes. Expense ratio is adjusted in NAV.
2 – What are your financial goals?
Hi Sreekanth,
I am planning to invest in SIP for 10 years.(Currently 32 years) @ 6k per month.
I have selected few funds from the list above.(I am new to SIP)
1. UTI Equity Fund – 1000
2. Franklin India Prima Plus – 1000
3. UTI Midcap – 1000
4. HDFC Midcap – 1000
5. HDFC Balanced – 1000
6. TATA Balanced Plan A – 1000
Please let me know, if this selection will work.
Thanks,
Deepak
Dear Deepak,
Good funds. Go ahead and stay invested!
Hi Venkat,
Thanks for sharing the info. First of all I want to be invested only for 3 yrs. I have picked one M. Fund, which is Axis Long Term Equity.
1. My Question is will the amunt be paid once 3 yr is completed. for eg if i start in June 2015, will I get ma return by June 2018?
2. Also pls suggest 2 more mutual funds with low RISK associlated with them. Also I would like to get the returns by in 3 yrs(i.e. 2018)
Note: I have decided to invest 1K in each(3) M.funds through SIP.
Thanks
Pls Respond to it.
Hi Venkat,
also I wanted to check with you, can i go with Bajaj Capital for the Mutual fund investment through SIP.
Pls let me know so that I can start ASAP.
Thanks
Rahul
sorry, I missed the name Sreekanth, and used as venkat
Dear Rahul,
If you comfortable with Bajaj and you find their platform to be convenient for you, kindly go ahead.
Dear Rahul,
If you want money in 3 years, kindly do not invest in ELSS fund(s).
1 – Yes, you can redeem the units in 3 years (if it is a lump sum investment). If SIPs, units allotted in each SIP are locked for 3 years.
2 – Do you have any specific goal to meet within 3 years?
Thanks Sreekanth once again for responding.
As you say each SIP gets locked for 3 yrs, I understand what you meant, but pls clarify lil bit more .
Is it same for all ELSS M. Funds? how about Axis long term equity?
Again, if I invest 1K in each month in Axis M.fund for 3 yrs starting june 2015 then by June 2018, I will end up investing 36K , considering 3 yrs locking period. Now my concerns is will I be getting the return of 36K in June/July 2018 based on the market situation. How it works.?
Again Same amount i am planning to invest in 2 more , once you give me brief idea.
Getting back to goal, I just wanted to invest some aount for short term so that I can get. If I invest 3K each month for yrs in ELSS M. fund, I will have somewere 1lak with with some xtra amount.
Else you suggest monthly short term investment for 3-5 yrs which can fetch good return. again No lump sum amount only Monthly saving.
Thanks
Rahul
Dear Rahul,
It is same for ELSS funds.
Lets say you book SIP for 12 months. The units allotted in the first month, will be locked for next 36 months, the units allotted in the second month will be locked for next 36 months…
The returns (positive or negative), you will get, but you can not redeem (sell) all the units because of Lock-in clause.
For 3-5 years horizon, consider HDFC balanced fund and MIP plans (like Birla Sunlife MIP II wealth 25 plan).
Hi Sreekanth,
Can you please respond to my query.
thank you
Dear Venkat,
Excellent work. Keep investing in these funds and stay invested. All the best.
Revert to me if you need any guidance 🙂
Hi Sreekanth,
How about PPF .It yields 8.7% compund interest monthly. Is it good to go with instead of one of the mutual fund I selected?
What about my allocation to Retirement/Wealth Creations? Still looks good?
In SBI term insurance policies, There is Life Cover+AB+Increasing cover option(s). Is it advisable to pay for riders like AB or AB+Sum assured increase (of course premium is increasing for more addings)
Or Can I go up with only Life Cover?
thanks,
Dear Venkat,
Suggest you to buy a basic cover plan and go for comprehensive Personal Accident plan.
Dear Venkat,
If you are contributing to EPF then its advisable to invest in MFs instead of PPF. Also, all your goals are long-term ones.
If you want to be little bit of conservative, suggest you to allocate more monies to Balanced fund.
Hi Sreekant,
I plan to invest in the following funds for long term:
SBI Blue Chip Fund (D)
Axis Long Term Equity Fund (G)
HDFC Mid-Cap Opportunities Fund (G)
Reliance Tax Saver (ELSS) Fund – Growth
Please suggest.
Dear Seemab,
What is your investment time-frame? May I know your financial goals?
Hi Sreekant,
I am investing for 3-5 yrs. My goals are a good lifestyle and wealth creation.
I have revised my portfolio as follows:
Sbi bluechip fund (Largecap)
Franklin India high growth companies fund (Multicap)
Dsp blackrock microcap fund (Mid/small cap)
Axis long term (for tax purpose)
I am planning a 5000/- per month investment in each fund.
Please share your insights.
Regards,
Seemab
Dear Seemab,
If you need money in 3-5 years, consider below funds;
HDFC Balanced fund & Birla Sunlife MIP Wealth 25 plan.
Hi,
I want to plan in SIP of arounds Rs10000. I am nw and having limited knowledge. I ahve few lic policies like Jeevan anand of arnd 40 lacs. I am looking for gud investment oppurtunities. Please guide.
Dear Avinash,
Kindly provide more details on your LIC policy (Policy commencement date, Sum assured and policy tenure).
It is better to take a term insurance plan and surrender or make this plan a paid-up one.
Read below articles;
Top 7 best online term insurance plans
How to get rid off bad insurance policies?
Dear Sreekanth,
After reading your blog and analysing the same through Money Control and Value research online, I am planning to invest Rs 7,000 a month in SIP of following funds through MF Utility route:
Large Cap : Franklin India Opportunities Fund 1,000
Small and Mid-Cap: ICICI Prudential Value Discovery Fund 1,500
Small and Mid-Cap: DSP BlackRock Micro Cap Fund 1,000
Small and Mid-Cap: JP Morgan India Mid and Small Cap Fund 1,000
Diversified: Franklin India High Growth Companies Fund 1,500
Diversified: Franklin India Prima Plus Fund 1,000
I am a 22 year old looking forward to invest for a longer period, around 8-10 years.
I know I have selected 6 funds but with MF Utility route it will be easy to trace the performance of all 6.
(1) Please suggest for any inputs on improvisation of the same.
(2) Is it advisable to invest in Gold Funds/ Arbitrage Funds/ Debt / Hybrid Funds at my age? If yes, please suggest the ideal combination.
Dear Sanchit,
If I am in your place, will add UTI mid-cap or HDFC mid-cap opportunities fund to the portfolio (in place of JP morgan fund). Instead of debt funds, you may consider investing in one balanced fund.
Dear Sreekanth,
As you suggested, and myself found it a better option, choosing UTI Mid-Cap Fund instead of JP Morgan.
(1) Also, just wanted to know is there any particular right date for SIP. Asking on the basis of this link which says 5th to 10th of the month is ideal.
(2) Do I need to mention the end date of an SIP on the MF Utility application form (meaning it will assume as perpetual till the time I revoke or should I keep 5 years and then renew?).
Kindly guide. Please provide some other points to keep in mind while starting SIP.
Thanks a lot Sreekanth. Your blog is amazing with your precise understanding! Thanks! 🙂
Dear Sanchit,
Thanks for your appreciation.
I believe that if you are investing for long-term, do not give too much importance on SIP dates. Suggest you to book SIPs for 5 years as of now.Make sure you opt for GROWTH option only.
Do share my articles with your friends! 🙂
Hi Sreekanth,
I am a new investor. My wife and I want to invest rs.10000 every month in SIP. Please review our plan which we made after reading you blog above and let us know if plans are good and tell us the risk if you see any.
Wife – Rs.10,000
Rs.5000 – HDFC Capital Builder (long cap) 30yrs
Rs.3000 – HDFC Midcap (mid cap) 20yrs
Rs.2000 – UTI Midcap (short cap)5yrs
Me – Rs.10,000
Rs.5000 – Franklin India Prima Plus (long cap) 25yrs
Rs.3000 – HDFC Capital Builder (mid cap) 10yrs
Rs.2000 – Franklin India Smaller Companies Fund (short cap)3yrs
Please let me know if you have better combinations of
Thanks
Suraj
Hi Sreekanth,
Do i need to take pension plan? if yes, please let me know the available good plans. We nave no loans.
We have already 2 idbi federal incomesurance plans. My wife pays Rs.15402 and I pay Rs.52350 annually. Maturity is 15years. We already paid 3 premiums. Sum assured is Rs.250000 for my wife and Rs.600000 for my plan.
Kindly suggest if we need to go for any more insurance plans and let us know good insurance plans.
Thanks
Suraj
Hi Sreekanth,
You and you blog is doing marvelous job for new investors like me.
If you have time please help me by replying and clearing my confusion. I really appreciate you help in advance.
I have couple of more things to tell you so that you can help We got PPF opened for us and each of us is investing monthly Rs.6000.
I am also saving Rs.3000 in EPF(company + me) and my wife is saving Rs.2500 in EPF(company + me).
Thanks
Suraj
Dear Suraj,
There is no need to go for pension plans. You may select good equity mutual funds along with PPF/ EPF and start investing in them. You can careate your own portfolio for your financial goals.
I believe you both are under-insured. The existing life insurance policies are not good ones. You need to buy good term insurance plans.
Kindly read these articles ;
How to get rid off bad insurance?
Top 7 Best online term insurance plans
Is term insurance a waste of your money?
Hi Sreekanth,
Thanks for your suggestion. We are planning to take MaxLife 1Cr. coverage for each of us.
Can you please review my below SIP selections? As per the number of yrs are the plans ok OR i have to change?
If change is required please suggest which one we should go for.
Wife – Rs.10,000
Rs.5000 – HDFC Capital Builder (long cap) 30yrs
Rs.3000 – HDFC Midcap (mid cap) 20yrs
Rs.2000 – UTI Midcap (short cap)5yrs
Me – Rs.10,000
Rs.5000 – Franklin India Prima Plus (long cap) 25yrs
Rs.3000 – HDFC Capital Builder (mid cap) 10yrs
Rs.2000 – Franklin India Smaller Companies Fund (short cap)3yrs
I called all these mutual funds they are asking for KYC(Know Your Customer) done or not. Isn’t there a generalised process where only one KYC is applicable to all SIP schemes from different banks/financial institutions? Reason for asking – My wife and I need to be present inperson to all these banks/institutions.
Please suggest.
Thanks
Suraj Minz
Dear Suraj,
The KYC compliance is a one time and generalised process. Check if your PAN is KYC compliant or not. Click here..
Dear Suraj,
I sense that you have mis-understood regarding Large cap / Medium cap / Small cap concept (It is not long cap & Short cap as mentioned in your comment).
Your investments in say Mid-caps should ideally be for very long-term Ex- Franklin India Smaller companies fund – not 3 years.
Revert to me if you have any queries regarding this concept. (Note that the selected funds are good ones).
Hi Sreekanth,
I missed above reply and asked for fund selection again today. Sorry about that.
Yes you are right i misunderstood the concept for small large and mid cap. I thought large means long term, short means small tenure and mid means between 5yrs to 10yrs. 🙂
Thanks for pointing out and correcting me. I have better idea now as i read the meaning of
Thanks
Suraj
Hi Sreekanth,
I am 30 years old and as of now my goal is wealth creation with 10-15 years of investment. I can safely say that investment is definitely for long term and I have got high risk appetite. I have no dependencies as parents & wife are financially independent. Following is my portfolio:
LIC Jeevan Anand ~ 50K per year – from last 6 years
Real Estate & Gold – Good amount is invested – No EMI/Loan pending
Bonds and FD – Good Enough
PPF ~ 2 Lakhs (No plans to invest more in this)
Everyone are covered with different health insurance plans.
Pension plans – Good amount is invested.
Now I am planning to invest in Indian mutual fund with SIP mode: (Let me know your views about funds)
Franklin India Opportunities Fund (G)-large cap – 10K
SBI Small & Midcap Fund – Direct Plan (G) – small & mid cap – 5K
Sundaram Select Micro Cap – Series IV – Direct Plan (G) – small cap – 5K
Canara Robeco Emerging Equities (G) – small & mid cap – 10K
Tata Balanced Fund Growth – Balanced – 10K
Franklin high growth Cos fund – Diversified – 10K
Note: I would like to be an aggressive investor in mutual fund and open to take risk.
Thank You,
Shail
Dear Shail,
Kindly provide below details;
What is the sum assured on your Jeevan Anand policy? Do you have any other life insurance policy?
In which pension plans have you invested in?
Dear Sreekanth,
Yes; I have 2 life insurances. One is free life insurance from the US company equavalent amount of annual salary is assured and also one in India – LIC Jeevan Anand maturing in 20 years for amount ~ 20 Lakhs or so.
For pension plan I have invested in 401K which is like a balanced mutual fund (debt + equity).
Thank You,
Shail
Dear Shail,
Kindly read my articles (wrt your Jeevan Anand policy) – “Is term insurance a waste of your money?” & “How to get rid off bad insurance?”
My MF suggestions would be;
Franklin India Opp fund
HDFC Mid-cap / UTI Mid-cap (You are prepared to take high risk, so you consider allocating more monies towards these fund(s))
TATA balanced fund
Frankling High growth Cos fund
Hello…My name is Kushal I am new to MF and want to invest. For my portfolio I have shortlisted 4 funds
1)SBI Blue Chip Fund (G)[Large Cap] (2) UTI Mid Cap Fund (G) [Mid cap] (3) UTI MNC Fund (G) [Div equity]
(4) HDFC High Interest Fund – Dynamic Plan (G) [Debt Long Term]. My plan of Investing around 20k permonth in these 4 funds of which 80% in equtiy funds and 20% in debt fund. Please comment on my fund selection and on my investment strategy, any advise on type of fund I have selected. My age is 27 years and I want to do my MF investments by my self. Since I have no liabilities for now hence I am finding difficult to set my goals. Kindly help in this regard also.
Dear Kushal,
If you do not have financial liabilities or commitments, invest as much as and as frequently as possible in equity funds, and stay invested for long term (> 10 years).
I personally prefer ICICI Focused Bluechip or Franklin Bluechip fund instead of SBI blue chip fund. You can consider either UTI MNC or a Balanced fund (ICICI Balanced fund or HDFC Balanced fund) in your portfolio.
Hello, I am an opener in MF Investment and want to invest around 3k pm by SIP for 3-5 years. I opted UTI EQUITY FUND and ICICI PRUDENTIAL BALANCED FUND for SIP. So am I start investing in these MF? or please suggest any other better MF SIP Schemes. Thanks..
Dear Darpan,
Good selection of funds. Stay invested and all the best!
Hi SreeKanth,
Needless to say your blog is putting light on SIP Mutual fund investments. I started reading your blog with 5% knowledge on SIP and end up with 60% about SIPs. Thanks for your great suggestions to the forum.
I am a S/W Engineer(33Yr) and can work 20Years more .
Even though I am paying Home Loan EMIs,I wanna invest in SIPs about 10K per Month from now on.
My risk appetite is up to 80% as my children are about 5Yr and 1 months respectively.
I want to save for my children education, for my retirement/wealth creation and time horizon of different portfolios would be 5yrs/10yrs/15yrs+
I have 3 dependants+ parents as well and Single earner in my house. I have health plans for total family including parents.
Kindly stitch Large-Cap, Mid-Cap/Small Cap and Balanced/Debt funds as per my requirement.
Thank you in advance for your great Inputs.
Regards,
Venkat
Dear Venkat,
Do you have term insurance? Are your insured adequately? (as you are the single earner..)
Kindly read below articles;
Financial Planning Pyramid
Top 7 best online term insurance plans
Super Top-up health insurance plans
Calculate how much to save for your kid(s) education
Retirement planning in 3 easy steps.
Revert to me if you need any guidance 🙂
Thanks Sreekanth for very good suggestions.
I have gone through the all the articles which you have suggested.
1. I got to know I need to take at least 1Cr Term Insurance plan to take. Please tell me 1 best company name(it should be cost effective and reliable)
2. Suggest some good Super top –up Health insurance plans to get adopted for entire family. The same amount can be used by anyone in my family
3.For my kid(s) education I need to be ready with 1.5Cr for their Education (Medicine/Engineering or their choice) after 12 and 17 years respectively.
4.Retirement at my age 60 yrs corpus fund should be 2.5Cr as per the calculator provided in the site.( No of years in Retirement 20yrs)
Please advice the most beneficial SIPs to attain my financial goals.
Hi Sreekanth,
Can you please respond on my post.
If possible can you please send me the mail to my personal gmail id venk…[email protected]
thanks,
venkat
Dear Venkat,
1- You may take term plan from any life insurance company as recommended in the suggested article. (You may consider : LIC (bit costly), HDFC , SBI or Kotak).
2 – It is very tough to shortlist best medical insurance policy (very complicated). Check out the super top up plans of Apollo Munich or L&T.
3 – Start investing in good equity mutual funds. Kindly read my articles – Top Equity funds & Top Balanced Funds .
4 – Do you contribute to EPF or PPF? Do you have any existing investments?
Hi Sreekanth,
Thank you .
I have gone through the links earlier which you have given.But need to get clarity on Large-Cap/Mid Cap/Small Cap/Balanced SIPs coposition and best SIPs to choose.
Please help on this.
Yes. I am contributiing aroung 5K towards EPF. I do have investments like 50K to Canara Robeco(G),BNP paribhar(G) ELSS, 2+Lakhs in LIC jeevan anand policy.Repaid of 10Lakhs towards Home(Flat).I have two plots 3Lakhs,5 lakhs respecively.
Please suggest whether I can continue with ELSS plans I have taken and on my retirement plan investments.
thanks,
venkat
Total EPF mounted to 3.5lakhs till now and 5K month is accumulating
This would help you to suggest me in a better way
Thanks
Dear Venkat,
Kindly provide below details;
1- Jeevan Anand policy commencement date & Policy tenure
2 – Schemes names of existing MFs.
Suggest you to maintain 3 MF portfolios for your 3 goals; Suggested funds..
ICICI Prudential Focused Bluechip
Franklin Prima Plus
UTI Midcap
TATA Balanced Fund / HDFC Balanced fund.
Hi Sreekanth,
Jeevan Anand Commencement date is around April 2007 and tenure is up to my 45Yrs age(i.e., 20yrs)
ELSS details are as follows.
1. BNP Paribas Long Term Equity Fund (G) – Invested on 14th Dec 2011
2. Can Robeco Eqty TaxSaver (G) – Invested on 14th Dec 2011
I have invested in these two plan at invidual brokers/agents. How can I update my mailing ddress for these ?
How can I diversify my investment of 10K-15K Per Month in to the below suggested SIPs?
a. ICICI Prudential Focused Bluechip
b. Franklin Prima Plus
c. UTI Midcap
d. TATA Balanced Fund / HDFC Balanced fund.
Please reply so that I can decide on wether to exit from ELSSs or not and on SIPs as well
Dear Venkat,
Suggest you to make the jeevan anand policy PAID-UP one. (Read my article – How to get rid off bad insurance?). But take a term plan with sufficient insurance cover before doing so.
You may continue with the ELSS funds. You can get details on how to update your email id on the respective AMC – Fund house websites.
Kindly let me know the allocation of Rs 15 k among your 3 financial goals.
Thanks Sreekanth for your bread winning Ideas.Especially ‘Get rid of Insurance Policies’
My 3 Portifolios are
1. 1st Kid (5Yrs) Education
2. 2nd Kid Education (<3 months)
3. Retirement/Wealth Creation
1.The projection vlaue of 1st kid education is 31.5L
Allcation
Per month Investment 12000 Type
ICICI Prudential Focused Bluechip 10% 1200 Large Cap
UTI Equity 10% 1200
Franklin Prima Plus 15% 1800 Diversified
Reliance equity oppr 10% 1200
UTI Midcap 20% 2400 Mid Cap
HDFC Mid cap 20% 2400
HDFC Balanced fund 15% 1800 Balanced
2.The projection vlaue of 2nd kid education is 50.5L
Allocation
Per month Investment 10000 Type
ICICI Prudential Focused Bluechip 10% 1000 Large Cap
UTI Equity 10% 1000
Franklin Prima Plus 15% 1500 Diversified
Reliance equity oppr 10% 1000
UTI Midcap 20% 2000 Mid Cap
HDFC Mid cap 20% 2000
HDFC Balanced fund 15% 1500 Balanced
3. The projection vlaue of my retirement corpus fund is 1.5Cr
Per month Investment 21000 Type
ICICI Prudential Focused Bluechip 10% 2100 Large Cap
UTI Equity 10% 2100
Franklin Prima Plus 15% 3150 Diversified
Reliance equity oppr 10% 2100
UTI Midcap 20% 4200 Mid Cap
HDFC Mid cap 20% 4200
HDFC Balanced fund 15% 3150 Balanced
Please suggest on each portifolio and correct me if I am wrong.
Please send an emial to my mail id with suggestions.
Hello Srikant,
I am 32 years old and having only one dependent( my wife) as of now. I am investing in below 4 funds from last five years.
BIRLA SUNLIFE FRONT LINE EQUITY FUND GRO OPN – 1000 pm
DSP BLACKROCK EQUITY FUND GROWTH – 1000 pm
HDFC TOP 200 FUND GROWTH – 1500 pm
RELIANCE GROWTH FUND – GROWTH PLAN – 1500 pm
All these SIPs are going to complete this month so I,m replanning my portfolio and want to invest 15000pm for retirement and tax saving also.
I have already started SIP in below these funds :
ELSS funds :
Axis LT Equity Fund(G) – 3000pm
Reliance Tax Saver (ELSS) Fund(G) – 200pm
Others :
ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 2000pm
HDFC Mid-Cap Opportunities Fund(G) – 2000pm
HDFC Balanced Fund(G) – 200pm
Please let me know your feedback about selection of funds and suggest other than these which funds I should consider for investment?
Thanks in advance.
Ravi
Dear Ravindra,
The shortlisted funds are good ones;
ICICI Focused, HDFC Micap, HDFC balanced, HDFC top 200 & ELSS funds – continue with these investments.
Hi Sreekanth,
My uncle is nearing his 60s and his income is on a receding side and has more of his savings.
Kindly advise what type of investment to be done – Liquid Funds or Index Funds or which other option?
Please guide
Dear Sanchit,
Where did he invest his savings?
Did he accumulate sufficient corpus for his retirement? Any dependents? Any income generating investments? (like rental income or pension etc.,)
Whether he has any Health insurance cover?
Dear Sreekanth, He is dealing into the stock markets as he has been into the same for most of his career. No dependents as his sons are independent. Has a medical insurance cover. He has a good portfolio of shares. But he is keen on making investments in liquid/ index funds as additional income generation. Kindly advice.
Dear Sanchit,
He can consider Post office Senior Citizens Savings scheme (after attaining 60 years of age). The current rate of interest is 9.3%. The investments are eligible for tax deductions U/S 80c.
One more option can be – Post office Monthly Income Scheme (MIS).
Check out this Hybrid-Debt fund – Birla Sunlife MIP Wealth 25 plan.
Hybrid-Debt fund – Birla Sunlife MIP Wealth 25 plan which you have suggested, is
what type of fund it is -a Liquid fund or an Index Fund?
Kindly suggest which is a preferable one of the two, with more options. Thankyou! 🙂
Dear Sanchit,
It is a Hybrid Debt-oriented fund.
Dear
Sreekanth,
new fund with low NAV and old with high nav its NAV high or low effect on returns/ funds performance anyway or not
Dear Prem,
It is just a misconception. Always look at the performance in PERCENTAGE terms (rate of appreciation).
Dear Srikanth,
I was searching for some useful information on MF’s and SIP’s and fortunately came across your article. Worth reading. Keep up the good job.
I’m new to the place of MF’s and SIP’s and always find it german and latin. However, I wish to invest around 5k per month each on my two kids education (tenure-more than 10 yrs) and 3k for retirement (tenure-more than approx. 15 – 20 yrs).
Can you suggest some good funds to opt for these three buckets please. Also, if you could mail any useful articles on this topic, that would be useful.
Thanks,
Santosh Arya
Dear Santosh,
Thanks for your appreciation.
Kindly read my articles – “Calculate how much to save for your kid’s education goal” & “Retirement planning in 3 easy steps“.
Kindly revert to me after going through these articles and let’s work on identifying the right investment products.
Hey Srikanth,
Many thanks for your reply. I’ll go through them and come back to you soon.
Dear Sreekanth,
I wants to add a diversified equity mutual fund in my folio so pls suggest which was best Franklin prima plus/ Franklin prima fund/ Franklin high grwoth company.
what is difference between Franklin prima plus and Franklin prima fund……
Dear Prem,
Suggest you to consider Franklin Prima plus fund.
Prima plus is a “Large & Midcap” oriented (Diversified), whereas Prima fund is Mid & Small cap oriented fund.
Dear Sreekanth,
Franklin higher growth funds return in Last 1,2,3,5 was higher than Franklin prima plus then why Franklin prima plus better…………
Dear Prem,
Both are good funds. But, Prima plus has been a consistent good performer for more than 10 years now.
Hi Sreekanth,
my age was 30yr. I am a gov. emp. 3.5 L PA salary. I want to buy a plot for build my house in future presently i am lives with my parents. My question is which option was best (1) I break my savings arount 300000/- and then take Loan from bank ( cost of plot lumsum 10-15 L) (2) second option that hold 5 to 7 year and invest 10000 throu sip in mutual fund and then go for plot.
which option was best pls suggest…..
Dear Jitendra,
Are you planning to buy a property for self-occupation?
What are your other financial goals? Have you allocated your investments / savings towards your other financial goals like – Retirement planning?
yes I buy a property for
self-occupation. and investment for my 4 year childs education….
Dear Jitendra,
Kindly prioritize your financial goals. Suggest you first allocate your savings to your Retirement goal & Kid’s eduction goal.
Invest in mutual funds for the said goals and allocate the remaining amount to buy a property.
Dear Sreekanth,
Please guide as to which of the funds are better off:
1. Franklin India Prima Fund – Growth
2. Franklin India Prima Fund – Direct – Growth
3. Franklin India Prima Plus – Growth
Is there a distinction between a Direct-Growth plan and only ‘Growth’ plan? Kindly guide.
Dear Sanchit,
What is your investment time-frame?
No intermediary (distributor / broker / advisor) is involved in ‘Direct Plans’, hence you get a higher NAV (Net Asset Value).
I have a long horizon. Around 5-7 years. Kindly advice.
Besides that, other doubts:
Qstn 1:
a. I would prefer to start a MF SIP, preferably a DIRECT plan rather than a REGULAR plan.
b. Please guide as to which of the following routes should be undertaken to start a MF SIP:
1. Apply online on the individual AMC website or
2. Apply through a distributor like a bank, say Axis Bank or
3. Newly launched MF Utility website
Kindly suggest with Pros and Cons for each of them with the preferable option.
Qstn 2:
Is it advisable to hold MF units in Demat or if I am opting for MF utilities it is okay? Please suggest.
Dear Sanchit,
1) a – if comfortable, invest DIRECT.
1) b – Invest through individual AMC websites and also register with MFUtility. As soon as they offer DIRECT plans online, start investing using MFU.
Thanks!
Please reply for Qstn no. 2.
Also, for trading/investment purpose, which is the preferable company with whom Demat account should be opened?
Dear Sanchit,
As suggested, if you are comfortable investing directly, its advisable to go DIRECT.
Else check out this option fundsindia.com or MF Utility .
Please help as to which option will be better off:
(1) If I am opting to invest in 3-4 funds, then should I contact 3-4 funds individually, take Regular plans, just for the fact that I will be guided by them and their views.
OR
(2) Go through MF Utility route and invest in one place, take Direct plans and manage myself.
Considering the fact that Regular and Direct plans have marginal difference, which option is viable for convenience?
In general, after starting SIP, is some expert’s advice necessary or one can manage on their own?
Kindly guide.
Dear Sanchit,
If convenience is the criteria, suggest you to go with Regular plans till the time MFU is in place.
If you are first time investor and do not have time to track or manage MF portfolio, suggest you to take help of an independent investment advisor. Else, not required.
Dear Sreekanth,
I thought of providing an update: I’ve initiated SIPs Yesterday. I couldn’t get it done by March but looks like that delay helped to get better NAVs (for my 5 months lump sum) as the market corrected last few weeks.
Thank you for your guidance and analysis, that really helped to fine tune my portfolio. I’ve tweaked the list of funds slightly, below is the final portfolio:
Portfolio 1 (Daughter’s education)
1 ) ICICI Focused Bluchip – 1K/ month
2) HDFC Capital Builder – 2K/ month
3) Franklin India Smaller Companies – 3K/ month
Portfolio 2 (Daughter’s marriage)
1 ) Birla Sunlife Frontline Equity (****instead of SBI Bluchip) – 1K/ month
2) Franklin India High Growth Companies (****instead of Mirae Asset India Opportunities) – 2K/ month
3) UTI Midcap- 3K/ month
Portfolio 3 (wealth and retirement)
1 ) UTI Equity – 1K/ month
2) Franklin India Prima Plus (****instead of GS Nifty BeES) – 1K/ month
3) HDFC Balanced – 2K/ month
4) Reliance Small cap – 2K/ month
5) DSP Blacrock Micro Fund – 2K/ month
Thanks a ton!!
Dear Noble,
Nice job. All the best. Do contact me if you need any guidance. Cheers!
Hi,
I am really glad to have seen your blog. I have not been able to go through all the information but from what I have seen, it is really good!
I have a query – all financial advisors mention that a person should be investing in not more than 4 or 5 funds for SIP. Is this merely to reduce the difficulty in tracking their performance? Wouldn’t the risk element decrease if a person invests in say 7 or 8 funds spread over different fund houses?(provided the person is willing to track the performance of all of them?)
Will be glad to know your take on this issue.
Dear Biju,
Thanks for your appreciation!
To be frank, I believe that it is not ‘should be investing’. It is ‘better and advisable’ to invest in 4/5 funds, and these funds can be from different fund categories like Large-cap, Mid-cap, Diversified & Balanced.
If a fund invests in say 7 funds across different AMCs, but in all Mid-cap funds then it is not advisable.
Also, most of the top-performing funds in a given fund category invests in almost same set of companies, you can check their portfolios and lot of overlap will be there.
Sreekanth,
Thanks for helping all. good service.
I would like to invest in MF for about 1 lakh.
Please suggest shall is go for SIP’s (Monthly basis) or One time lumpsum investment (Rs 25K each) in different categories.
I would like to invest for 1 year. Please share your expertise for investing in 8 MF’s (25K each) in your choice.
Thankyou in advance.
Dear Kamal,
Do you need money in 1 year?
Then, do not invest in equity mutual funds.
Hello sir,
I am a student and 22 yrs old, i am also working in a call center and my monthly income is 7k.. After all my expences i save upto 3k per month. I would like to invest 2k per month in a MF for 20 yrs.. Which mf should i prefer?? Can i increase my per month investment afterwords??
Dear Vineet,
Start with a balanced fund and try to understand how MFs work.
You can step-up your contribution (SIP) amount, but it may depend on the platform that you choose.
Thankyou sir… I will try To knw how mfs work.. Its a great blog.. Appreciate your work… Thankyou, it will be a great help For my 1st investment of my career..
Welcome Vineet.. Keep visiting and wish you the best!
Hello sir, sorry to disturb u again.. I visited a finance company today and he told me that if i invest in birla mutual funds then i would get 70-80% returns.. There is no problm in investing in birla mutual funds but 80% returns is a bit doubtful.. So i thaught to take your advise once.. If possible can u suggest me 1 balanced fund plan of any good company with better returns.. Coz u said that i should invest in balanced funds.. Or any other funds with good returns… Thankyou!
Dear Vineet,
Don’t feel sorry to contact me. It’s my pleasure to reply to your queries.
If ok, name the ‘finance company’. If they are so sure, ask them to give that in writing. Don’t fall pray to these tricks.
Start with HDFC Balanced Fund / TATA balanced fund. Read my article “Top Balanced funds“.
Hello sir, I was also thinking for TATA balanced fund equity oriented… I would nt take the name of the company… Dont knw they may be reading ur blog too… Such a greaablog.. N u are also active.. U answer ecery question i would suggest to read ur blog atleasvery ce… Thankyou very much!
Vineet, thank you for your appreciation. Keep visiting!
HI Srikanth,
I am a software Engineer. i want to invest 15k in SIPs so that i can get returns after 10 years from now.
Can you pls suggest the best porfolio.
Appreciate your help in advance.
BR
Venkat Reddy
Dear Venkat,
You may pick any one fund from each fund category from the above list.
Ex – ICICI Pru Focused, Franklin Prima plus, HDFC Mid-cap & HDFC Prudence / Balanced fund.
Dear Seekanth,
i have question that when balance funds return is higher than large cap equity then why should we invest in large cap………. balance fund less risky compair to large cap and higher return from large cap….
Dear Prem,
Yes, agree with you. Investing in Balanced funds is a great way to achieve diversification. You can get the benefits of both the worlds – Equity & Debt.
I believe, an investor who is planning to invest for medium/long-term financial goals, should consider investing in one good balanced fund.
Hello sir,
I am 42 year old working in Pvt. Company. I wanted to invest 40000 per month in MF via SIP .My Goal is wealth creation for my 9 year old kid’s education (Graduation-8 year), Higher education (12 year) and my retirement (16-18 year).I have no loans (cleared all loan).I have term plan of 1 cr., emergency fund for 6 month , PF balance 10 lakhs, PPF 3 lakhs, FD 1 lakhs.I am saving annually 1.5 lacks(tax purpose) using PF contribution, PPF and insurance premium and 50000 annually in Debt fund (reliance money manager fund).
As per my analysis and research I have decide to split the amount 25% in large cap,35%in Mid cap & small cap , 25% in diversified and 15% in Balance fund.
I have selected below 2 large cap, 3 small & Mid cap(As it is very high risk), 2 diversified and 1 balanced fund from above list and below is my planning(Total 8 Fund and I think I can track them every six month for performance)
1.Large cap fund: 10000 INR
a. ICICI focused bluechip- 4500 Rs- For my son Graduation and afterward wealth creation for retirement.
b. UTI Equity – 5500 Rs- wealth creation for retirement.
2.Mid & small cap fund-14000 INR
a. Franklin small companies-6000 Rs- wealth creation for retirement.
b. UTI mid cap- 5000 Rs-For my son Higher education and afterward wealth creation for retirement.
c. HDFC Mid cap-3000 Rs- For my son Higher education and afterward wealth creation for retirement.
3. Diversified- 10000 INR
a.Franklin high growth-7000 Rs- For my son Higher education and afterward wealth creation for retirement.
b.Reliance equity oppr.-3000 Rs- wealth creation for retirement.
4. Balanced
HDFC Balanced-6000 Rs- For my son Graduation and afterward wealth creation for retirement
Please advise me if the above planning will help me to meet my goals.
Also please suggest my money distribution (25% large,35% Mid ,25% diversify and 15% balance) is correct as per my goals or what will be best option .
Thanks & regards
Sanjay Singh
Dear Sanjay,
Appreciate your analysis and selection of funds. The overall portfolio and allocation looks fine.
What is the reason for investing Rs 50k annually in a Debt fund? Did you allocate if for any financial goal? Is it just for diversification?
Do you have health insurance & Personal accident cover? Are your family members covered under any health insurance plan?
Dear Seekanth , Whemn I tried for online investment through ICICI website , asking for DIV re Invest or Div payout. Should I opt for DIV re Invest of Div payout.
Dear Archana,
If you are investing for long-term, consider selecting ‘growth’ option.
I am investing 3000 in each fund franklin india small co, franklin india high growth, canara roboco emerging equites, Axis long term equity fund, SBI pharma.2000 in SBI FMCG and 1000 in uti transport and logistic fund. Is it right portfolio. pl suggest if any change required. 4000 P.M in PPF also investing
Dear Suresh,
What is your investment horizon?
Your portfolio has 2 mid/small-cap oriented funds & two Sector/Thematic funds. If you analyze the funds individually, all these are good ones. But, you may have to tweak your portfolio to get better risk-adjusted returns.
all are for 15 to 20 years. please suggest required changes.
My age 35. I investing for my bot kids (7 years son and 5 years daughter) education. I can take high risk
Dear Suresh,
You may continue with Franklin High growth , Franklin Small co funds & Axis Long term equity funds.
If you want to take high risk, suggest you to add UTI mid cap fund too.
Also, consider investing in one large cap fund.
Hi Sreekanth,
I’m new to the MF world and planning to invest 16k/month as SIP’s in the same. I’m thinking about going for one each of Large Cap, Multi Cap, Balanced and ELSS.
Here are the funds I’ve shortlisted to go for:
Large Cap : ICICI Prudential Focused Bluechip Equity Fund or Franklin India Prima Plus Fund
Multi Cap : Franklin India High Growth Companies Fund
Balanced : HDFC Balanced Fund
ELSS : Franklin India Taxshield Fund or Axis Long Term Equity Fund
My queries are :
1. How should I split up the 16k among these sectors? My time horizon is 10+ years.
2. Will there be significant overlap if I go for both Large Cap and Multi Cap at the same time? Should I replace Multi Cap with with a Mid & Small Cap like Franklin India High Growth Companies Fund?
3. What is the best way to start and manage MF’s online? I mean, it should be preferably cost/commission free as well as easy to manage.
4. Are the above mentioned funds good enough? Any suggestions regarding better funds are welcome!
Kindly help me out here
Regards
Kiran
Dear Kiran,
All the selected funds are good ones. Kindly note that these are not ‘sectors’ but different ‘fund categories’.
1 – If your investment horizon is 10+ years, you may allocate more monies to mid-cap fund say around 40%. If tax saving is not your priority, you may opt for a multicap/diversified fund instead. Midcap – 40%, Largecap -20% , Balanced – 20% and Multicap / Diverified around 20%.
2 – Overlap : Are you referring to portfolio (the securities / companies that the funds have invested in) overlap?
3 – Investing in ‘Direct’ schemes is the best way. But as of now, you need to visit each AMC’s (Asset Management Company) website and create SIPs. New platform called “MF Utility” is launched (this is free of cost), but we may have to wait for few more months to invest in ‘Direct’ plans. You may get your account activated as of now. Another platform which I personally like is ‘fundsindia.com’. They offer ‘Regular plans’.
Suggested Funds;
ICICI Focused
Fraklin Primaplus / Franklin Highgrowth
UTI Midcap / HDFC Midcap
HDFC Balanced / HDFC Prudence.
Thanks for the valuable response Sreekanth. Yes I was referring to the portfolio overlap among the various fund categories. Currently I don’t have any other investment to claim IT relaxation, hence thinking about an ELSS. After thoroughly researching for long term fund performance and considering minimal portfolio overlap I’ve shortlisted the following funds :
[1] ELSS : Franklin India Taxshield Fund
[2] Large & Mid Cap : ICICI Prudential Dynamic Fund
[3] Multicap : Franklin India High Growth Companies Fund
[4] Mid & Small Cap : HDFC Mid-Cap Opportunities Fund
[5] Balanced : ICICI Prudential Balanced Fund
Left out the Large Cap ones as they had significant overlap with the ELSS. The options are :
1. Go for a 5 x 3k = 15k/month scheme for now and increase the SIP amount whenever I get a raise.
2. 4 x 4k = 16k/month, leaving out [2] for the time being and consider it to the portfolio when I get a raise.
Which one would prove beneficial in the long run? Any other suggestions? BTW I earn 30k/month, from which I save around 20k and planning to invest around 16k in MF’s, remaining 4k will be set aside as emergency fund.
Dear Kiran,
Suggest you to consider the ‘First’ option. Appreciate your analysis. Stay invested for long-term and do not worry about negative returns (if any) in short-term.
May I now your age? Do you any family members who are financially dependent on you?
Sreekanth, thanks again for helping me finalize the decision. I am 24 (male, unmarried, no members financially dependent on me). Will start an online term insurance in a year’s time. Currently I’m a dependent of the health insurance taken by my father.
Dear Kiran,
Suggest you to take health insurance too at the earliest.
Dear Sreekanth, As I am new to MFs let me clear some doubts and seek some advice from you. I have a monthly earning of Rs 52000 at present , out of which I could save Rs 33000 every month. Please advice regarding to which all investment plans / schemes I should opt for. I have two daughters of 6yrs and 3 yrs old. The savings is mainly for their education and marriage. In a 20 yrs time horizon I aim for a corpus of Rs 1 Cr .
Dear Archana,
Kindly read my article – “Calculate how much do you need to invest for your Kid’s education?“.
Please revert to me after going through this article.
Hi Sreekanth,
Could you advise on the options available to invest from the perspective of high Returns in the next 2 to 3 years. My Budget for investment is Rs. 5000 per month . i want to invest in 3-4 different scheme.
Dear Rajesh,
If your investment horizon is 2-3 years, do not invest in equity mutual funds. Kindly do not expect high returns in short-term.
Hi, Shreekantha,
Very good information you given so far.. I have Invested in MF as bellow
L & T buisness cycle fund- 3000/ m
Franklin smaller company fund- 3000/m
pls suggest both the selection is correct?
I also want to start 3rd sip , but I am confuse beetween Uti MNC FUND/ Birla sunlife mnc fund
pls suggest from above 2 which one?
investment period- 7-10 yr
will appreciate your reply….Thank you
Dear Ankit,
Franklin Smaller co’s fund is a decent one.
Suggest you to add one large-cap, one diversified and a balanced fund to your portfolio.
(Ex; ICICI Focused bluechip, Franklin Primaplus & HDFC Balanced fund).
Hi Srikanth,
I had earlier invested in Mutual Funds like ELSS , but in a lumpsum manner which was a mistake & later withdrew after the mandatory 3 years lock-in period. I want to now invest via SIP for a horizon of 10 years.
Pls suggest the no. of funds & is it necessary to invest in a mix of Large cap, Midcap, balanced funds etc.,
Dear Vinayaka,
Your decision to invest a lump sum amount in ELSS is not a bad one. You should have invested that for atleast 5-7 years.
Suggest you to pick one fund from each fund category.
pls suggest best funds name for investment….
Dear sir,
i am new in mf. i am a gov. employee (30 year age) with 3.5 lac salary pa. my rd was mature in may and i recevied 150000/- after reading your blog i am intrested invest in MF beacause its much better than post office.
i want to investment 150000/- for 5 to 7 year…….. my quriy is that i invest my all amout in a balance fund ? or invest some part midcap and some large cap with balnce fund……….. pls suggest
idea about investment……………
Dear Ashok,
You are new to MFs, so it is better to start with a balanced fund.
If you can stay invested for 7 years or more, suggest you to invest in a balanced fund and a good Large cap fund.
Please be kind enough to review our portfolio. Me and my wife intend to contribute regularly via monthly sips for 21 years.
My portfolio: Franklin india taxshield
Quantum tax saver
HDFC mid-cap Opportunities
My wife’s portfolio: Axis long term equity
PPFAS long term value fund
Equal contribution to all funds. Please tell what u think of above portfolio?
Thanking you in advance-
Kuntal.
Dear Kuntal,
Appreciate your long-term view.
I believe one ELSS fund is enough. Instead of quantum fund, you may add a good Large-cap to your portfolio (Ex- ICICI Prudential Focused Bluechip fund).
Also, instead of PPFAS fund you may consider investing in UTI mid-cap fund.
Hi Sree,
I have invested 50k in axis long term equity growth and would like to start a sip in the same for 5k for 3 yrs and need to keep this fund for at least 10-15 yrs…
Please suggest if I can go ahead with this.
Or should I go for tata balanced fund growth
Dear Ajay,
If one of your investment objectives is to save some taxes, continue with Axis fund, else you may invest some monies in Tata balanced fund too.
Hi Sreekanth:
I want to do SIP from next month onwards, with a 30K contribution. I am 40 yrs old, working in a MNC.
I have shortlisted a few funds based on my research.
1) HDFC Balanced Fund
2) UTI MNC Fund
3)Franklin High Growth Cos
Planning to invest 10K each thru SIP. Should I diversify more ? I am thinking of a 5-7 yr tenure.
Dear Sunny,
Shortlisted funds are good ones. You may consider to allocate more monies towards HDFC balanced funds (considering 5-7 investment horizon).
Hi Sreekanth;
Am 34 years old , presently working in MNC getting salary monthly 80,000/- in hand. Dependent is my wife and daughter who is 4 years old.
I am having a house building loan with EMI 18,000/-
LIC of 6,50000/- where yearly premium is 22,652/-
Term Insurance of 10,000,000/- with yearly premium of 12,000/-
A medical insurance of 3,000,000/- with yearly premium of 18,000/-
I used to have a yearly savings in PPF of 150,000/-.
A SIP of 3,000/- in ICICI Prudential Focused Bluechip equity fund (large cap) very recently.
Apart from this I would like to invest in some SIP for my daughter’s higher education purpose and also to get some benefit in my later ages. Am planning to invest around 7,000/- in SIP monthly. Which are the type of funds I should target for this. many thanks for your valuable advices. It will be of great help if you can suggest some specific fund names.
Dear Mr Bhattacharjee,
What is the name of LIC plan? Commencement date?
You may read my articles on “Kid’s education goal” & “Retirement planning” , these will help you to arrive at the required amount of savings for kid’s education and retirement planning goals.
Revert to me if you need any guidance.
Hello Sreekanth;
One LIC is “Endowment Assurance Policy” date of commencemnet 20-11-2004 & other one is “New Bima Gold” date is 28-11-2008.
Can u plz suggest some equity fund name where i can start the SIP with a time horizon of 5 years atleast. Thanks in advance.
Dear Mr Bhattacharjee,
Consider surrendering your Bima Gold plan. Kindly read my article – “How to get rid off bad insurance plans?”
Did you use the calculators that are available in the suggested articles?
Consider starting SIP in HDFC Balanced fund / HDFC Prudence Fund.
Thanksa lot for your valuable suggestion.
hi sir,Iam 27 now,I wish to invest 2000/- in mutual funds for 15-20 years,kindly suggest me the best fund to invest .
Dear Ramsha,
Consider investing in a good mid-cap oriented fund. But do not worry about short-term negative returns (if any).
Funds can be – UTI Midcap / HDFC Midcap / Franklin india Smaller companies fund.
Thank you for your valuable suggession sir,which is best among Birla sun life front line equity,birla sun life top 100 fund(G)&uti equity fund for long cap.My annual income 3.5 lakhs and I already have HDFC click2protect life insurance-life only for 50 lakhs,is there any annual income criteria to take life insurance policy,because I wish to take another term insurance policy,if possible suggest me best one
Dear Ramsha,
Out of the three funds, given a choice, I would invest in UTI equity.
Suggest you to buy simple and basic term insurance plan only. Read my article “Top 7 best online term insurance plans“.
I am 27,What are best simple basic term insurance plans(not online policies).
Dear Ramsha,
Check out the ones offered by SBI Life (Smart shield), Kotak (Preferred e-term), LIC’s Amulya Jeevan – II (bit costly though) etc.,
Actually, as long as you submit all the required information accurately in the proposal form, your insurance claim (if any) will be surely serviced. So, opt for a plan which is affordable to you and the brand with which you are comfortable with.
Hi Sreekanth,
Nice article! I am newcomer to Mutual funds, and lately I have been doing research on MF through SIP. I have started investment during early age, but mostly in to government sector.
I am interested to invest in MF for short as well as long term. Would like to discuss it with you, if you provide financial planning services.
Regards,
Fahad Khan
Dear Fahad,
What do you mean by ‘in govt sector’?
Hi Srikanth,
I am 35 years old and my daughter is 2 years old. I would like invest around 3-5k in SIP(Mutual Funds) for long term returns. Could you please suggest some good Mutual Funds in the market and also which type of mutual funds to select. Thanks for your help.
Dear Narasimha,
Do you have prior experience with MF investments?
Hi Srikanth,
Yes, I do have the prior experience. Earlier i had invested in Fidelity Investments mutual for 4 years and due to some reasons i stopped. So, again want to start now, for that would like to know which are be best funds in the long term and what type of funds are good to invest. Thanks for your support.
Thanks,
Narasimha
Dear Narasimha,
Consider investing in a good balanced fund and a large-cap oriented fund (ex- HDFC Balanced fund/ ICICI Balanced fund & Franklin Bluechip fund).
Suggest you to read my article – “Calculate how much to save for your kid’s education.”
Hello,
I am 27yrs old, 1st time investor.
I am getting salary of 40k/Month and want to invest 10% in mutual funds.
I choose below MF for my Long Term(5+ years) SIP (4K/month).
Currently i am putting 50K/yr in PPF and 25K in NSC from past 3years.
I have a LIC of premium 12K/yr.
Can you suggest if below funds are okay or need some changes.
Tax Saving
1) Axis Long Term Equity Fund-Direct(G)-500/-
2) Reliance Tax Saver-Direct(G)-500/-
Large cap Equity
3)ICICI Prudential Focused Bluechip Equity Fund-Direct(G)-1000/-
Balanced Equity
4)HDFC Balance Fund-Direct(G)-1000/-
Mid&Small cap Equity
5)ICICI Prudential Value Discovery Fund-Direct(G)-1000/-
Thanks….
Sushil(Bangalore)
Dear Sushil,
All the selected funds are good ones.
You may consider investing more monies in ELSS funds instead of NSC.
What is the LIC policy name? (Plan name) What is the sum assured? (insurance coverage)
Hi Sreekanth,
I am a beginner in terms of investment and did like the way you help people save the hard earned money.
My age is 40, daughter is 10 years old and son is 4 years.
I can spare upto Rs. 4000 ~ 5000 per month for kids.
Kindly suggest me the long terms SIP i can look forward to as an investor.
I would like to have 20% in debt, 30% in small-mid cap and 50 % in large cap.
Currently, we have no savings but have learnt that we need to save for the future, hence, we are starting with it. Please help
Dear Gaurav,
I will surely help you to plan your investments, but before that, kindly let me know if you have any existing life insurance policies?
Hi Sreekanth,
I have a very basic question. I’m 34 currently and planning to start investing in MFs. I see that you have been advising people to invest based on specific goals and time frames in mind. Also its advised to keep no. of funds to a min.
Considering that I’m sticking to my MF SIPs as my primary source of savings for future goals (Child education,marriage,retirement planning, misc ,etc) ,do I need to open multiple investments(SIPs) for each of these? Should I do multiple SIPs in selected few (2-3)funds? Or do you advise that I could plan the returns on the whole and keep withdrawing (of course not in short term) for these goals from the corpus at these junctures?
Dear Ankit,
If you are comfortable maintaining a single portfolio and withdraw monies based on the requirements, kindly do so, it all depends on your convenience.
But, if you ask me which one is better, I suggest you to maintain separate portfolios (funds can be same but with different SIP amounts). It is very easy to track your portfolio-wise returns, shortfalls (if any) etc., Whats your view?
Thanks Sreekanth. This is very helpful.
I have selected the below 6 funds for SIPs for myself and wife (3 each for myself and wife)
Large cap-
ICICI Prudential Focused Bluechip Equity
Franklin India Bluechip Fund(G)
Large & Mid cap–
Franklin India Prima Plus
ICICI Pru Dynamic Fund(G)
Small & Mid cap-
Icici Pru Value discovery fund
Canara Robeco Emerging Equities/Franklin India smaller cos fund
Can you please advise if its safe to put all my eggs with ICIC Pru and Franklin? Say all 3 categories ICICI for wife and Franklin for me so that its easier to track?
Also does the above funds look good of if you have any better sugesstion?
Dear Ankit,
Kindly go ahead and stay invested for long-term.
Hi Srikant,
Nice to read your value added post !! Can you please help me analyzing my Investment strategy.
Yearly Salary 10.5 Lakhs, Monthly 75K on hand
Expenses
Housing Loan – 29K Monthly
House Expenses – 15K Monthly
Investments
PPF – 5000/Month , Apart from PF being given by company
Pure Term Policy from Birla Sun Life – 9500/Year, 800/Month – Cover 50 Lakhs
Corpus of 4Lakhs in the form Deposit for Family emergency
Family Members – Wife and 4 Years Daughter
I want your suggestion in the below investments
Investment for Daughter Education – ( I am planning to invest in Sukanya Samrudhi Account, and Mutual Funds) – 5K per Month
Investment for Daughter Marriage – ( Please suggest me some Mutual Funds) – 5K per Month
Investment for Retirement Corpus – ( Please suggest me some Mutual Funds) – 5K per Month
Please suggest me a Family Floater for my family (Wife, Daughter and Parents) – My parents are both 60+ so please suggest me insurance plan for them as well) – till last year i included them in policy that my company offers but i don’t think its enough and also it will not be carry forwarded if i leave the company.
Sorry for overloading you with lot of questions, but request you to please help and suggest me
Thank You,
Prasad
Dear Prasad,
Let me know you age plz..Are your parents financially dependent on you?
Meanwhile, kindly read and understand the below topcis;
1 – Retirement planning in 3 simple steps
2 – How much do you need to invest for your kid’s education/marriage expenses goals?
3 – Top up & Super Top up health insurance plans – what are their benefits?
Hi Sreekanth,
Much Thanks for you reply, I will be 32 years old by this may.
My parents are not fully dependent on me, but i want take care of their medical emergencies and any hospital expenses.
I will surely go through the posts mentioned by you.
Thanks in Advance.
Prasad
Dear Prasad,
Try to take one more Term insurance policy. Read my article on “Top 7 best online term insurance policies.”
Consider taking “Red Carpet” health insurance from Star health for your senior citizen parents. Read my article on “Best Health Insurance plans for parents.”
Regarding Family Floater plan, You can consider plans offered by Star, Apollo Munich or Max bupa. Also, read my article on “Top up & Super Top up Health Insurance Plans.“
Hi Sreekanth,
Thanks for the Value Added Information, i will surely get back to you if i get struk any where
Thanks
Prasad
I have 53000/ month salary, I have following investment / insurance policies. LIC jivan saral=36190/ys
( 7.5 lc life cover),
+ LIC- jeevan anand + money back=11000/year (2 lac life cover),
+ Lic child future=11000/ys (2 lac life cover),
+ Birlasunlife clasic child plan 30000/yr (7.5 lac life cover) ( money ivested in equity in top 20 fund as plan says),
+ Birla sunlife dream retirement plan (35000/year (25 lac life cover) ( money invested in equity in enhanser plan)
+ Lic jeevan Amulya -Term insurance= 6750/year (25 lc life cover)
+ Parent medical insurance =11129/year
+ Recurring deposit=10700/month for 3 years (9.5 % interest)
+ Loan EMI=15736/ month ( 17 years loan remaining= 14 lac remaining amonut)
+ PF = 40000/ year
I have Two girl kids. 1 is of 4 yrs old and 2nd is of 7 month old. I have taken LIC and birla sunlife policis on 1st child” name, planning to take polices on 2nd child. My monthy grocery+ all bill+ medical expenditure goes up to 12000/ month now( excluding all loan and policy emi). I have emergency fund of 4 month. I still save 4000 rupees. Now I want to invest in good SIP to generate corpus for (my child education+ marriage)+ retirement . Kindly assess my current investment/ insurance portfolio whether I’m going in right direction or not. Suggest me best SIP plan.
Dear Sandeep,
Suggest you to first go through the below articles;
1 – How to get rid off unwanted life insurance policies
2 – Top 7 best online term insurance policies
3 – Is term insurance a waste of your money?
4 – LIC Children’s money back policy and why you should avoid child plans like these..
5 – Calculate how much to save for your kid’s education goal
6 – Retirement planning in 3 simple steps.
Hello sir,,,,l have a great confusions regarding selection of mutual funds for SIP,,my son is 2 yer old and I have selected (A)icici focused bluecheap +hdfc mid cap opportunities +idfc primer equity fund,,,,(B) hdfc children gift fund investment plan. my question is( 1) which combination is good,,,,,,(2) online broker Fundsindia is ok or I should opt for direct plan ,,,please suggest
Dear Neeraj,
Suggest you to read my article – “Calculate how much to save for your kid’s education goal“.
Instead of IDFC Premier fund, consider HDFC Balanced Fund.
If you are comfortable investing directly, go ahead with ‘DIRECT’ option.
Hello Sir,
We are 40 year old and started SIP(from last month) with 50000 rupees (25000 husbands+25000 wife) per month in below mutual fund for our son(he is 10 year) education/marriage and our retirement planning. For tax saving purpose we both spending 2.5 lakh in PPF/LIC etc and we are planning to save 1 lakh for debt fund annually. I am in 30% tax bracket and my wife is in 10%. From this year I am planning to save another 50000 in NPS. So our total annual saving distribution is 6 lakh mutual fund+ 3 lakh LIC/PPF/NPS and + 1 lakh in Debt fund. As per my understanding it is 60%in equity and 40% in Debt category.
We have cleared ( in Feb month this year)our home and car loans and have emergency fund for 6 month.
Below we have distributed our Mutual fund for SIP
1. Large cap fund- 14500 INR
a. ICICI focus blue chip-7500 – Wife
b. UTI equity fund- 7000- Husband
2. Small and Mid cap fund -16500 INR
a. Franklin India small company-7500 –Wife
b. UTI mid cap- 4500-Husband
c. HDFC Mid cap-4500-Husband
3. Diversified fund – 10000
a. Franklin high growth cos.-5000 -Wife
b. Reliance equity opps fund -5000- Husband
4. Balance fund –
a. ICICI balance fund -5000 -Wife
b. HDFC balance fund -4000 -Husband
Please can you suggest if the above fund and money allocation in different fund is right? Is spending more money in Small and Mid cap will give benefit to us in long run or shall we reduce the amount in small cap and increase in large cap?
Please suggest best way to invest money (10 lakh per annum)to meet our goals and create wealth for retirement.
Thanks & regards
Arun Mishra
Dear Arun,
Kindly provide details about your existing life insurance policies.
If you are investing in PPF, you may ignore NPS.
All the above listed funds are good ones. For a goal like ‘retirement’ you can consider investing more monies in mid-cap funds.
You kid is 10 years old, so 6/7 more years for higher education (graduation). Let me know the list of funds that you have ear-marked for kid’s education goal . It is advisable not to take too much risk with regards to this goal (considering the time-frame).
Suggest you to read my article – “Calculate how much you need to save for your kid’s education goal“.
Retirement Planning :
Suggest you to read my article – “Retirement planning in 3 simple easy steps“. You may use the calculator which is available in the article to calculate the required amount of savings to achieve your retirement corpus.
Hello Sir,
i have taken IDBI capital life insurance policy. I am paying 75000 per annum for 5 year(2 premium already paid). It will cover for 7.5 lack for 10 year and after 5 year i will get 110000 per annum(6 to10 year). Also long back i have taken Bajaj alliance insurance for 5 laks but now i am not paying any premium (Initially i paid premium for 4 year so it will cover my insurance)
NPS will give extra tax benefit for 50000 ( from current 150000 ) that’s why i was thinking to invest 50000 in NPS from this year . shall i invest in NPS or PPF?
I have marked ICICI & HDFC balance fund(9000 per month) for 7 year for my Son’s graduation.For his higher education(15500 per month-12 year) i have marked ICICI focused blue chip ,reliance equity oppr and HDFC mid cap. I have already put(last year) 3 lakh in fixed deposit and 1.25 lakh lumpsum in ICICI balance fund for his graduation and planning to invest 1 lakh per annum in some good debt fund.
Other funds UTI equity, Frankline small companies, Franklin high growth and UTI mid cap (appox 25000 per month)+ PPF/PF for wealth creation/ retirement.After
Please suggest further the best option
Thanks & regards
Arun
Dear Arun,
The fund selection seems to be ok, but you need to work on your ‘life insurance requirement’ on a priority basis.
I believe you are under-insured. Kindly read my article – “Top 7 best online term insurance plans“.
Are you a salaried person? Do you contribute to EPF?
Sir, I have already invested Rs.2500/- per month in SBI Magnum Global Fund and Rs.2500/- in SBI Pharma fund both for a period of 5yrs. Now I am looking at investing Rs.5000/- in UTI MNC fund. It is a good move?
Dear Maria,
Suggest you to reconsider your choices as your investment horizon is 5 years only.
Consider investing in a good balanced fund.
Respected sir,
I am 33 years old, I have invested Rs. 18000/PM in HDFC Top 200 (G)-Direct option and HDFC Equity Rs. 12000/- PM (G)-Direct option.
my time horizone is for 12+years.
Sir, my quary is that, recently HDFC fund house’s star has fall down. Shall i stey invetsed or shift to some other fund, especially HDFC Equity.
I am thinking to start with mid cap fund shall i go with HDFC mid cap or ICICI value discovery fund.
I also want to start ELSS with ICICI Pru tax – 3000/-PM and Axis long tern equity Rs.3000/-PM.
Am I on right track or need some correction please give me ur opinion.
I am thinking to build corpus for my kids education.
waiting for ur reply.
Thanks in advance.
Ashish
Dear Ashish,
As of now stay invested with HDFC Top 200 and HDFC Equity. They are consistent top performers for the last > 10 years or so.
You may consider investing in HDFC Balanced fund & ICICI Value discovery fund.
ELSS Fund – ICICI Pru tax plan can be considered.
Suggest you to read my article – “How to plan for your kid’s education goal“.
Dear Sreekanth,
Thank you for your detailed analysis and write up.
I’m finalizing my investment – goal plan for long term; I’ve listed my thoughts below in detail. Please have a look and provide your valuable inputs.
I’m 33-yr old, married with 1 daughter aged 4
Income: around 10L / ann; 65K / Month – in hand.
I’m planning to invest around 20K / Month for:
1) daughter’s education: – 14yrs from now (Large Cap = 1K, Large+Mid= 2K, Mid+Small= 3K) = 6K/month
2) daughter’s marriage: – 20 years (Large Cap = 1K, Large+Mid= 2K, Mid+Small= 3K) = 6K/ month
3) corpus fund for wealth creation and retirement: 20+ years (Index fund = 1K, Debt long term = 2K, Global Mutual fund = 1K, Mid+Small= 4K) = 8K/ moth.
so, I’m planning for 3 + 3 + 4 = 10 mutual funds; though its large number, I think I can manage as its in different portfolios; hope this is okay.
I’m planning to switch 50% of daughter’s fund to DEBT funds before 3-4 years to target.
As of now,
I’ve 2 mutual funds (Reliance Small Cap Growth Direct, SBI Bluechip Growth Direct ); 2K/ month on each from Jan 2015.
I’ve Home Loan, Term Insurance, ulip, PF, Health Insurance etc for my tax purpose.
Also have an FD for around 10L; where I’ll earn around 10K/ month. (this I’m considering as a debt hedge fund, and this interest also serve as additional income on occasional money shortfalls). (I ‘m planning to move 5L of this corpus to a long-term debt fund when my monthly money flow increases – may be in 2 year time)
Have an emergency fund of 2L in linked FD.
Am I on right track? Please provide your insights.
Thank you in advance,
Noble
Dear Noble,
Excellent planning. You are on right track. Just minor tweaks required.
What is the total life insurance coverage that you currently have?
Suggest you to read couple of articles – “Calculate how much to save for your kid’s education” & “Retirement planning in 3 simple steps“. Use the calculators which are available in these articles to find out how much you need to save for your kid’s future and for your retirement goal.
You can invest in same mutual funds but maintain 3 portfolios for your 3 different financial goals. SIP amounts can be different.
Emergency fund – What are your monthly expenses? (approx)
Dear Sreekanth,
Thank you for your replay.
Insurance: I’ve a term insurance for 40L sum assured (covering my home loan outstanding of around 20L). Planning to get one more Term plan in this year for 50L.
Monthly expenses: now it is around 15-18K/ month + 22K/ month my home loan EMI.
Hope I can continue my sip in SBI Bluchip and Reliance Small Cap. Below my plan for complete portfolio, which I’m going to initiate in the coming week.
Portfolio 1 (Daughter’s education)
1 ) ICICI Focused Bluchip – 1K/ month
2) HDFC Capital Builder – 2K/ month
3) Franklin India Smaller Companies – 3K/ month
Portfolio 2 (Daughter’s marriage)
1 ) SBI Bluchip – 1K/ month
2) Mirae Asset India Opportunities – 2K/ month
3) UTI Midcap- 3K/ month
Portfolio 3 (wealth and retirement)
1 ) UTI Equity – 1K/ month
2) Goldman Sachs Nifty Exchange Traded Scheme (GS Nifty BeES) – 1K/ month
3) HDFC Balanced – 2K/ month
4) Reliance Small cap – 2K/ month
5) DSP Blacrock Micro Fund – 2K/ month
I am considering your idea of having similar funds in 3 different portfolios; I’m planning to review the funds once in a quarter, so was thinking I’ll get an overall picture as I’ve many of these funds from different fund houses. Please see my list of funds above and provide your valuable suggestions. I’ve already initiated sips for SBI Bluchip and Reliance Small cap.
Also my plan is to pay past 4 months (JAN, FEB, MAR, APRIL) together as a lump sum (total 64k) when initiating SIP (SIP will be effective from May 2015 onward).
Thank you!
-noble
Dear Noble,
Good work. Stay invested for long-term.Patience and discipline are very important to make wealth.
(Consider Franklin blue-chip fund instead of SBI’s).
Dear Sreekanth,
I’m in between UTI Opportunities Fund, Franklin blue-chip, an additional UTI Equity fund – to replace the SBI Bluechip. Leaning towards UTI Opportunites.
Thanks,
Noble
Hi Shreekanth
I am 30yr old already earning around Rs. 80000 per month, Also I have below investments
Home Loan with EMI of Rs. 25000/- with principal amount remain as 5.25 lac.
LIC Ltd Wild life plan = Premium of Rs. 23556 (taken in 2012). Life cover of Rs. 5 lac
Mediclaim policy Prulife health saver plan for risk cover of Rs. 5 lakhs for myself, wife and Baby.
SIP myself UTI divident yield plan = Rs. 1000/- (from last 5yr)
UTI Midcap fund = Rs. 1000/- (from last 5 yr)
SIP on wife name HDFC equity fund = Rs. 1000/- (last 4 yr)
ICICI Pru Value discovery reg = Rs. 1000/- (last 4 yr)
Last month I am blessed with baby girl, I want to invest Rs. 2000-3000 per month with SIP on her name for long term (to be covered in 80C). My consultant suggesting me ICICI tax saver or DSP tax saver. Kindly suggest the best policy.
Also are selected SIP OK? or switch is needed ?
I want to complete my portfolio in financial yr 2015-16. Kindly suggest what needs to be included?
Dear Devendra,
1 – What is LIC Wild life plan? (Do you mean whole life plan?). Do you have any other life insurance policies? What is the total sum assured?
2 – You may ‘super top up’ you health insurance plan. Suggest you to read my article for more info – “Top up & Super Top up Health insurance plans“.
3 – Existing SIPs are good. You may continue investing in them.
4 – Kid’s education goal : Suggest you to read my article “Calculate how much to save for your kid’s future“. Yes, you may consider investing in a good ELSS fund like ICICI Tax plan. Kindly note that its not a ‘insurance policy’. It is a mutual fund scheme with 3 year lock-in. Read more about ELSS funds – “Top ELSS funds“.
1. Yes. It is LIC Ltd pay Whole life Plan. Total sum assured is Rs. 5 lacs. How is this policy? I do not have any other policy yet. Please suggest.
2. “Top up & Super Top up Health insurance plans“. – are they to be done at this stage or after 10 yrs ?
3. OK.
4. Considering child (baby girl – 2month old) the requirement will be
a. Education plan (Graduation Degree in Engineering or Doctor) = 17yrs from now
b. Marriage plan (value equivalent to 5lac expenses of as on date) = 22-24 yrs from now.
Kindly suggest what kind planning to be done for above requirement.
Dear Devendra,
Suggest you to first work on ‘getting adequate life insurance coverage’ on a priority basis.
You may read my articles – “How to get rid off bad insurance?” & “Top 7 best online term insurance plans“.
2 – You may take Super top up plan now itself.
4 – Kindly read my articles as suggested and calculate how much do you need to save/invest every month.
Revert to me if you need any guidance.
Hello sir
i wish to know from you regarding my Investments in SIP both for 15 years.
(I) UTI MNC FUND GROWTH OPTION – 2000 PER MONTH.
(II) AXIS ELSS LONG TERM FUND GROWTH OPTION – 3000 PER MONTH.
I have started investing from March 2015. I would be highly obliged please let me know your views on both the funds. Shall i continue with them.
Regards
Dear Dwarkesh,
Both are decent ones. You may continue your investments and stay invested for long-term.
Thank you for the prompt reply. I shall continue with them for 15 years.
sir i also have Sip in Reliance Banking fund growth since Oct 2010 it is also for long term. Shall i continue with it or redeem it now. Please let me know your suggestions on the same.
regards
Dear Dwarkesh,
As long as you understand the risks associated with a sector fund, it is fine and stay invested. It is a good fund.
Sir I invested mutual funds these funds per month
Hdfc top 200 = 2000k
Hdfc mid cap = 3000k
Icici fouced bluechip =2000k
Icici value discovery =2000k
Idfc primer equty = 2000k
Quantum long term=1000k
Franklin high growth=2000k
Franklin smaller co =2000k
Bsl top 100 = 2000k
Bsl front line =2000k
Many funds in my portfolio since one years. Please suggest I want some funds stop sip .Please suggest my portfolio’s best fund to continue for 10 to 15 years.
Tnanks
Santosh kumar gupta
Dear Santosh,
All funds are decent ones. But, it is not advisable to invest in some many funds.
Consider continuing with;
HDFC midcap, icici focused, HDFC Top 200 , franklin smaller co / ICICI value discovery & Franklin high-growth cos.
You may allocate more monies to mid-cap funds if your investment horizon is 15 years.
Dear Shreekanth,
I intend to start 2 SIPs’ of 3K each. At my current career juncture I am ready to take risks as well. Based on market study and information gathered via other websites, I have zeroed in on 1) Franklin India Prima Plus and 2) Axis Mid Cap.
My investment horizon is 15 years.
However, I do seek your guidance for the following:
1) Whether the funds chosen by me are right? If not then please suggest which ones should I go for.
2) Based on my 15 year investment horizon, I am still confused whether I need to continue in the same funds for my entire investment tenure or shift to Debt funds some time later? Also what should be the factors/criteria based on which I should stop investment in a particular fund?
Dear Ankit,
You are very clear about your goal.
1 – Franklin Prima plus is a good fund. I prefer UTI Midcap / HDFC Midcap / Franklin Smaller co fund to Axis mid cap. You may reconsider your decision. Since you are ready to take risks, you may allocate more monies to a Midcap fund.
2 – If you analyze the performance of top performing funds, over a period 10 to 15 years, it really does not matter which top performing fund you choose. So, stay invested and track your portfolio once in a year. Track fund managers also. (Read my article on Fund manager role). If fund manager changes, we need to closely track the fund’s performance for 1/2 years. If your goal year is 15 years from now, you may switch to Debt funds / fixed income securities 3/4 years before the goal year.
Sir,
I want to invest 5 thousand in sip for 10 years. Kindly suggest me the name of funds.
Dear Randeep,
Do you have prior experience with MF investments?
Sir,
I want to invest 5 thousand in sip for 10 years. Kindly suggest me the name of funds. No sir, I am 38 year old.
Dear Randeep,
Start with a good balanced fund. You may choose two funds. Read my article – “Top Balanced Funds“.
Hi srikanth reddy,
I’m a newbie just started investing in SIPs with guidance from my office collegues. I was surprised to see my portfolio picks are not even listed in ur top picks. My picks are
SBI SMALL &MID CAP Rs 3000PM
RELIANCE SMALL CAP RS. 3000PM
SUNDARAM SMILE RS 3000pm
CANARA ROBECO RS 3000PM
Do I have to revise and change my portfolio…I want a long term wralth creation ayleast for 10-15yrs if everything goes good I even want to increase my sips…I chose small nd mid cap as I want it for long term and I’m 28 now, so my risk appetite is goos I think
Dear Raghu,
Yes, it is better to re-consider your choices.
Consider – UTI Equity / ICICI Focused bluechip,
Franklin India Prima Plus,
UTI Midcap & Franklin India Smaller companies fund (you may allocate more amount towards midcaps)
HDFC Balanced Fund.
Hi
I just started SIP in below funds for tax saving
1 axis long term equity fund-G
2 HDFC Tax Saver-G
3 ICICI Pru. Tax Plan-G
4 Reliance Tax fund
I need atleast 4k per month for tax saving . But I can also wish to invest same amount of fund each month for wealth creation and time horizon for me is more than 15 years and also wants to increase the investment each year by 20%.
Please suggest as I am have 30 years for retirement from now and earliest liability will come only after 18 years only.
Dear Pankaj,
I believe it is not advisable to invest in so many ELSS funds. one or max two can be more than enough. You may choose Axis and ICICI funds.
Appreciate your long-term view. Start investing in a well diversified fund and in a Mid-cap fund (like Franklin Prima Plus & UTI Midcap funds).
Also, suggest you to read my latest article “ Retirement Planning in 3 simple steps.” You can use the Retirement calculator to know the required retirement corpus. You can also find out how much to save per month to meet your retirement goal.
Hi
Thanks
And please can you clarify when think that in each fund different options are available like direct fund-dividend payout, direct fund-dividend reinvest, regular plan or ggrowth plan and dividend plan.
Can you please give difference but each of them and have any article on all this type. Or chart in which condition which are better or benefits or other things
Dear Pankaj,
Will come up with an article, thanks for the suggestion.
Hi Sreekanth,
I have just got KYC compliant and am a newbie on this block.
I wish to start investing in MFs through SIPs.
I can set aside 5000-7000 rupees each month for this purpose.
My key purposes are:
1. Retirement planning. ( I am currently 30 and I plan to retire around 55-56, assuming all goes well)
2. Generating good returns on these investments which I can put back into some more investment without putting in fresh funds.
Please provide me some guidance on how do I go about making investments in MFs.
Thanks
-Anu
Dear Anu,
Welcome to the world of Mutual Fund Investments 🙂
Suggest you to read my latest article on “Retirement Planning in 3 simple steps“.
Revert to me after reading the article, will surely guide you. Cheers!
Hi Sreekanth,
Thanks! For both the advice and the article on retirement planning.
I am much too worried now as the calculator puts my required monthly savings at a HUGE 50,000 rupees a month at expected 9% rate of return during accumulation period.
Given that I can set aside ONLY 7000 per month at the moment, seems like my post-retirement life is going to be in serious jeopardy.
However, even with what is possible (7K a month) please guide me what best can I do. Of course, will try and increase this amount slowly but steadily.
I wish to start at the earliest (taking into account I might already be late by 4-5 years)
Regards
Anu
Hi Sreekanth,
Thanks! For both the advice and the article on retirement planning.
After reading it, I am all the more worried about the same as the calculator indicates I need a HUGE 50,000 rupees a month in savings assuming 9% rate of return during accumulation phase, 85% expenses of current post retirement, 7% inflation.
Given that currently I have ONLY 7000 rupees a month to invest, please suggest what best can be done with this. Of course I shall try and increase this amount slowly but steadily.
Already I seem to be 4-5 years late for retirement planning and do not wish to lose more time.
Thanks a lot for all the help and guidance.
Best Regards
Anu
Dear Anu,
Many of us do neglect planning for retirement.
You are on the right track now. You know what needs to be done.
If the required savings amount is high, we have two options, take risk and invest in equity oriented products to get decent returns (more than 9%), (or) decrease the required corpus.
I suggest you to invest in equity oriented mutual funds for long-term (>10years). Try to increase you SIP amounts every year.
Start with a good Balanced Fund. Kindly read my article on “Top Balanced Funds“.
i want to invest lumpsum 50000/- in mutual fund for long term. which is best for me
Dear Jiten,
What is long term according to you?
Hello sir, I am a new investor, 29, earning 10 lakhs per annum.I recently got married, so i have 0 savings! I have just opened ppf account and have invested 1lakhs in it(tax saving). Besides that I am keen to start investing in Mutual funds through SIP. As suggested by you, I am thinking to invest for more than 10 years . 15k per month for now.
1)UTI equity scheme(3k)
2)ICICI pru focussed blue chip or hdfc top 200(3k)
3)HDFC Balanced(3k)
4)Franklin India smaller cos(3k)
5)Birla sunlife mnc fund(3k)
Besides these, i have 50k cash in hand which i can invest for small period as well. Do you suggest me to invest in liquidity funds?Will any of the above mentioned stocks help me save tax under 80c? or do i have to go for elss only?I need to invest these 50k for tax savings
Dear Nimish,
PPF is a decent savings option. But, do not over invest in it. Are you a salaried person?
You are young, suggest you to invest more monies in Equity Linked Savings Schemes. ELSS mutual funds are eligible for tax deduction under Section 80c. Suggest you to read my article on “Top ELSS Funds.”
Birla MNC fund is ok kind of fund. Instead , you can opt for an ELSS fund like Franklin Taxshield or ICICI Tax plan.
Hi,
I am planning to invest 4k for short terms like 2-3 year . My Portfolio is below:
1UTI Mid cap-1000k
2SBI Blue chip-1000k
3Birla Sunlife top 100 (G)-1000k
4)L&T Mid Cap Fund (G)-1000k
Kindly Advice is it right choice or need some changes.
Dear Pankaj,
Do not invest in equity mutual funds if your investment horizon (time-frame) is 2-3 years.
Dear Sreekanth,
You are doing a great job and really hats off to you effort!
I’m a newbie to this Mutual Fund world. I’ve started investing in MFs from last 2 years through SIP with time horizon >10 yrs. Followings are the funds in which I’m investing from last 2 years:
1. Franklin India Bluechip fund – Rs 2000/-pm
2. SBI Emerging Businesses – Rs 2000/-
3. HDFC Mid cap opportunities fund – Rs 2000/-
4. HDFC Balanced fund – Rs 1000/-
But recently from last 3 months I’ve added few more following funds and started investing in continuation with above:
5. Franklin India Smaller companies fund – Rs 1000/-pm
6. SBI Magnum Midcap – Rs 1000/-
7. SBI Pharma fund – Rs 1000/-
8. ICICI Pru banking & financial services – Rs 1000/-
9. ICICI Pru dynamic fund – Rs 1000/-
10. ICICI Pru focused bluechip – Rs 1000/-
11. ICICI Pru tech fund – Rs 1000/-
12. ICICI Pru Top 100 – Rs 1000/-
Total investing to Rs 15000pm at present.
Sir, now I’m looking forward to invest Rs 5000pm more in MFs for >10 yrs. Kindly advise me in which of the performing funds I should diversify the investment to be made. Should I try monthly SIPs to new funds such as UTI Equity fund/ UTI Mid cap fund/ Franklin India Prima Plus funds or should choose from my existing portfolio. kindly advise and also let me know whether my existing portfolio is right?
Thanking you in advance.
ayush
Dear Ayush,
You may seriously consider trimming your portfolio. It is advisable to keep it simple and short.
1, 2, 3, 4, 5,9,10 & 12 are good picks.
1 & 10 are large cap funds – you can pick one
2, 3 , 5 & 6 – are small/midcap oriented funds – you may pick one (my choice 5 or UTI mid cap).
7,8 & 11 are sector oriented funds – Kindly understand the sector specific risks. (It is better to avoid sector oriented funds if you do not understand the dynamics of those sectors)
Finally, you may consider these funds ;
Franklin India Blue chip, HDFC Balanced Fund, Franklin Smaller / UTI Mid cap & ICICI Dynamic fund.
Dear sir,
Thanks for your prompt reply. Sir, you have advise to trim the portfolio to 4 funds, now the funds in which I’ve to stop invest in are already having some amount accumulated till now. But if I redeem these funds before a year, it would earn short term tax. And really I don’t want to redeem the same as it may go in expenses. So kindly advise whether I should invest this amount in lump sum in another funds after a year or just stop the further SIPs & keep the same invested in for long term. Moreover, as you suggest to avoid sector funds; to be more specific I’m right now 30 yrs old who have started to think about future savings for the family and retirement and having a risk appetite at this age. Being a banker, I think banking sector in our country would grow in near future & secure due to conservative approach towards assets of Indian banks. While pharma sector is also growing and having huge potential in coming years considering this year budget announcement tax savings under health insurance etc. Yes one could definitely think to drop tech funds as Indian software industry is more dependable on outsourcing and highly porn to US & European markets. Sir, still you are the expert, kindly advise whether to stay in sector funds or completely out of it.
ayush
Dear Ayush,
You may discontinue SIPs of unwanted funds. You may redeem and switch to good funds after holding the current units for 1 year.
Kindly note that I have just cautioned you about the sector funds, if you understand the dynamics of the sectors that you have invested in, kindly stay invested.
Sir ,
I want to invest in mutual fund for 12-15 years,I have decided below mentioned funds.plz advice if fund selection is right.
Also,plz advice Is it wise to invest in ELSS funds if Tax benifits are not required(investment horison 12-15 years).
Axis long term equity fund
Franklin India Tax Shield (G)
UTI mid cap
ICICI pru focussed B/C
Dear Kunal,
If Tax saving is not your priority,consider investing in;
UTI Midcap
ICICI Pru Focused Bluechip
HDFC Balanced
Frarnklin India Prima Plus
Thanks Sir,Plz advice difference between Direct & Reglar plan and which one is advisable.
Dear Kunal,
The returns from the Direct plans will be a little higher, due to low expense ratio. If you are comfortable investing directly, go ahead with the ‘direct’ option.
Sir,
Am planning to invest 2k each in below funds for 10 years.
Should I select best 2 or 3 funds and divide 10k among it or invest equally ( 2K each on below 5 funds ).
Please suggest me.
1.Franklin India Smaller Companies Fund
2. Franklin Build India Fund
3. UTI Transportation and Logistics Fund
4. UTI MNC Fund
5. Canara Robeco Emerging Equities Fund
Regards,
Lakshmikanth R
Dear Lakshmikanth,
I have observed that every 10 days you are coming up with a new list of funds, kindly let me know why do you want to invest in different funds? Are you investing for short term?
Sreekanth,
Sorry for that… I just blindly invested as per the advisor in below funds. And now I feel that the funds am holding are not good and am new to SIP ( started of Jan,2015). So wanted to switch at early stage only. My Investment is for Long term may be for 10 -12 years.
Monthly Rs.2000/- in Below Funds.
* Axis Long Term Equity-G
* DSPBR Tax Saver- G
* ICICI Pru Tax Plan Reg-G
*ICICI Pru value Discovery fund-G
Monthly Rs.1000/- in Below Funds.
* Birla SL Pure Value-G
* Franklin India High Grth Companies-G
* HDFC Mid-Cap Opportunities- G
* HDFC Prudence-G
* ICICI Pru Focused Bluechip Equity Reg-G
* Birla SL Frontline Equity-G
Please suggest.
Dear Lakshmikanth,
Are you planning to save taxes through ELSS funds? Or Do you have any existing investments which are eligible for tax deductions under Section 80c?
Sir,
Yes sir under 80C i have 2 LIC money back policy ( 21K and 12K premium annually) , 1 ULIP of 11K premium annually and PPF ( 40K monthly).
Shall i wait for 1 year to exit from ELSS or should i exit now only. am not planning to save tax from these. I can adjust in PPF.
Thanks for your quick response and suggestions.
Regards,
Lakshmikanth
Dear Lakshmikanth,
Kindly provide me the commencement dates of your life insurance policies.
Suggest you to read my article – “Top 7 best Online Term Insurance plans” & “How to get rid off bad insurance policies?”
Kindly note that ELSS funds have a lock-in period of 3 years.
Sreekanth,
I started LIC money back policies on Dec – 2006 ( 2 lakhs sum assured – 21K annually) and other in jan-2008 ( 2 lakhs sum assured – 12K annually) .
ULIP on Dec-2006 – 11K annually.
I still dont own term insurance.
Thanks for all your help.
Regards,
Lakshmikanth R
Dear Lakshmikanth,
I should have asked for policies’ duration too. Kindly provide.
How are the returns on your ULIP plan?
Did you read the suggested articles?
Dear Sreekanth,
I am a beginner in Mutual Funds currently.
I had visited Value research online SIP Calculator and then visited your wonderful website where I had come across these two options with the below returns over Jan’13 to Dec’14:
Mid & Small Cap – Axis Mid-Cap Direct Growth : ~58%
Tax Saving – Axis Long Term Equity G : ~46%
I would like to invest Rs 2000 for a start and then increase accordingly; Horizon – 7 to 10 years
1. Kindly help as to how to interprete the above two funds with reviews.
2. Please explain the tax implications and lock-in period clause generally prevalent for mutual funds.
3. Is there a clause that the SIPs will have to be continued for a specific period say, 1 or 2 years and then stopped, in case required
4. How do I get returns – in the form of dividends or appreciation value at month end; Whether can withdraw the same?
5. Is it possible to increase SIPs gradually and if so, how that has to be done.
6. As per your and my choices, Kindly guide as to how to evaluate and which is the best MF to begin with (Just one, if possible with two other choices!!)
Dear Sanchit,
If you are a beginner, suggest you to start with a balanced fund. Kindly read my article on “Top Balanced Funds“.
Also, when you are looking at past performances, suggest you to analyze returns over longer periods (like > 10 years).
2 – Lock-in is applicable only for ELSS funds (Equity Linked Savings Scheme). The investments in ELSS funds are eligible for tax deduction under Section 80c. Kindly read my article on “Top ELSS funds” for more info. Also, the long term capital gains on Equity mutual funds (if held for more than 1 year) are exempted from income tax.
3 – No, there is no such clause. You may pause your SIPs anytime.
4 – While booking a SIP / making a lumps sum investment, you can find options like “Growth” (appreciation) or “Dividend” (income). Suggest you to opt for ‘Growth’ option for long term wealth creation. (Dividend will have two more options – Dividend payout & Dividend Reinvestment option. Kindly note that the reinvestment option on ELSS funds is discontinued)
5 – Yes, it is possible. Most of the online platforms (ex- fundsindia.com / icicidirect) provide this option / feature.
Kindly get back to me if you require more details / info.
HI SREEKANT,
YOUR ARTICAL IS GOOD. ITS VERY HELPFUL TO US.
JUST GIVE ME ADVICE
I AM INVESTING IN BELOW FUNDS
UTI MNC FUND (1000/- PER MONTH)
DSP BR MICROCAP FUND (1000/- PER MONTH)
RELIANCE TAX SAVER (1000/- PER MONTH)
SBI MAGNUM BALANCED FUND (1000/- PER MONTH)
SBI MAGNUM MULTIPLIER PLUS FUND (1000/- PER MONTH)
CANARA ROBECO EQUITY TAX SAVER FUND (1000/- PER MONTH)
SBI MAGNUM TAX GAIN (1000/- PER MONTH)
THIS IS FOR 15 TO 20 Years.
ALL GROWTH PLANS
AND ONE MORE THING WANT TO ASK
I WANTED TO INVEST 7000/- PER MONTH SO I CHOOSES 7 FUNDS
IS IT GOOD STRATEGY
OR SUGGEST ME ANY IDEA OR FUNDS.
Dear Sanman,
Suggest you to invest in 4/5 funds. Too much diversification is not advisable.
You may continue with DSP Microcap & Reliance Tax saver (but I prefer Franklin Taxshield) funds.
Consider investing in the following funds,
UTI Equity Fund, HDFC Balanced Fund & Franklin Prima Plus funds.
THANK YOU SREEKANT FOR YOUR VALUABLE ADVICE.
CAN I BE SUGGESTED WHETHER IT IS THE RIGHT TIME TO START SIPs for next five year [email protected] PER MONTH IN DIFFERENT EQUITY MF WITH AIM TO OBTAIN HIGH RETURN. I AM AFRAID AS THE MARKET IS NOW QUITE HIGH AND I MAY BE STARTING AT A HIGH PRICE.
Dear Nirmal,
If your investment horizon is 5 years, and expecting high returns, suggest you not to invest in equity mutual funds.
(Anytime is good time to start investing in equity mutual funds if your investment horizon is > 10 years).
Dear SIr,
I can invest 5000 per month, and my time frame would be 2 years, i need 3-4 Lakhs in this particular horizon.
Please suggest me good mutual fund which can help me achieve my target.
Dear Deepak,
It is highly impossible to accumulate Rs 3 Lakhs in 2 years, with a monthly investment of Rs 5k.
I suggest you not to invest in equity mutual funds if your investment horizon is 2 years.
Dear Sreekanth,
You are doing a great job and really hats off to you effort!
I’m a newbie to this Mutual Fund world. So not very familiar with jargon like Balanced Fund which has been used in many of your replies. I would like to know the main difference between investing, say 2k per month in a equity fund (ICICI focused blue chip fund) and balanced fund (HDFC Balanced Fund) for say 25 years. Could you please help?
Numerical representation would be very very helpful. Thanks in advance.
Regards,
Milan
Dear Milan,
Thank you for your appreciation.
The monies collected by the fund house of a scheme are used to buy (invest) in financial securities like shares, government bonds, company deposits etc.,
Depending on the investment objective of the scheme, the fund manager invests the monies.
A typical ‘balanced fund’ invests around 65% of the monies in Shares (Direct equity – companies), whereas the remaining amount is invested in fixed income securities (debt products like – government securities, bonds, company deposits etc.,). Visit this link – HDFC Balanced fund portfolio to understand about the portfolio of HDFC Balanced Fund.
So, it is like a balancing act. You may get the best of the both worlds (Equity & Debt).
kindly read my article on “Top Balanced funds” . If you need more information, kindly leave your query in the comments section.
Thanks a lot Sreekanth for the clarification.
From your reply, what I understood is – Balanced Funds invest money in diversified market keeping a balance (shared in equity, govt. bonds etc.) and Equity funds invest all the money in equity market. So balanced funds are more of stable or comparatively safe to invest (as some part of your money will definitely get some percentage of return). Please make me correct if wrong.
In the article, you have mentioned 15 top performing funds divided into 5 categories. If I would like to select 1 fund in each category, could you please suggest you best picks? Please consider that all the 5 funds would be invested for 30 years and 2k per month for each fund.
Awaiting for your valuable suggestions.
Best Regards,
Milan
Dear Milan,
Your understanding is correct.
Also, note that sometimes the fund manager may sit on cash (a percentage of fund’s assets under management), instead of fully investing the funds in financial securities.
You may consider investing in below funds;
ICICI Prudential Focused Bluechip fund – Large cap
UTI Mid cap
HDFC Balanced Fund
Frnaklin India Prima Plus
ICICI Pru Tax plan (ELSS – 3 year lock-in)
Suggest you to opt for ‘Growth’ option.
Thanks a lot Sreekanth once again! I really wonder how you manage to answer each query individually!! keep up this great work!!
Thanks for your best picks. I have few queries and am putting it in an order.
1. I have a folio under icici fund house. Whenever I try to place a SIP order online for Focused Bluechip Growth plan – I am able to select the SIP end date of March 2035, which means system is allowing me for a period of 20 years. If I want to continue for 30 years, will I get a chance later on to extend the investment period? Or how to do it?
Will it be possible to increase the amount of initially invested SIP amount any time during the horizon? (If my investment capability becomes more, I would like to keep investing in the existing funds rather than going for new funds)
2. Suppose after 10 years this particular fund is not performing well and I want to continue with some other fund, how the process will allow me do it without affecting the continuation? Is it the Switch option, which will come in to picture?
3. If I invest 2k per month in each of the 5 category funds for 30 years, what average percentage of return shall I expect at the end of 360th month? (Can I expect 10% or below? I know there is no certainty about this market, still just want to know your intuition)
Awaiting for your valuable guidance.
Best Regards,
Milan
Dear Milan,
Financial Planning is my passion. I try my best to answer each & every query that is been posted on my Blog. Also, this is a great place / forum to learn lot of new things on a daily basis, from blog readers/investors.
1 – All the options are possible. Yes, as long as your existing funds are performing well, stay invested & continue investing..
2 – If you are not happy with the fund’s performance, suggest you to first stop the future SIPs / do not make any lump sum investments in that fund. Track for some more months and then opt for a switch. (Keep in mind about your goal target year, if any)
3 – I strongly believe, if your expectation from equity markets / equity funds is around 10-12% returns (compounding), you won’t get disappointed.
Thanks a lot Sreekanth.
I am quite clear with my doubts. Your articles and replies helped me to understand many things. Now, I can go with my investment planning to reach my goal.
I will keep reading your articles 🙂 Will definitely get in touch with you in case I find any query.
Best Regards,
Milan
Dear Milan,
Thank you and you are welcome.
Dear Sreekanth,
I have gone through your blogs. And this is really fabulous and wonderful. It is really very helpful. Kudos for your suggestions. I have started investing Rs 15000 monthly in the below mutual funds through SIP from Jan 2015. Will you please comment on the below funds? Have I chosen right funds? Or, Do I need to re-consider on the below allocation. Thanks in advance!!
ICICI Pru Focused Bluechip Equity Fund Reg Plan Growth – Large Cap — Rs 1000
SBI Blue Chip Fund-Growth — Large Cap — Rs 1000
Franklin India Opportunities Fund (G)—Large Cap— Rs 1000
Reliance Tax Saver (ELSS) (G) —- ELSS —- Rs 2000
UTI MidCap Fund—– Midcap—Rs 3000
RELIANCE SMALL CAP FUND – GROWTH — Small Cap—Rs 4000
Franklin India High Growth Company (G) — Diversified Equity—-Rs 2000
HDFC Balanced Fund (G) — Balance Fund — Rs 1000
Dear Vishwajeet,
Thank you for your appreciation!
Kindly let me know about your investment horizon (time-frame)..
Thanks Sreekanth for a very quick reply. My investment goal is long term around 10-15 Years.
Dear Vishwajeet,
I believe it is not advisable to invest in so many funds.
Consider,
ICICI Focused – Large cap
UTI Midcap
Reliance Tax saver – ELSS ( or you may consider ICICI Tax plan / Franklin Taxshield instead)
HDFC Balanced Fund
Franklin High Growth – Multicap /Diversified
Hello Sreekanth,
I am 34 years old now and planning to invest Rs.30,000 every month for 15-20 years. Please suggest few funds from which we can expect good returns in this tenure.
Many thanks in advance.
Regards
Naveen
Dear Naveen,
You may consider investing in the below funds;
Franklin India Bluechip,
UTI Midcap,
ICICI Prudential Dynamic,
HDFC Balanced / HDFC Prudence fund &
ICICI Pru Tax plan (ELSS fund for tax saving)
Hi Sreekanth,
I love reading your posts. Have a query . Could you explain what is the bank repo rate ? How does the change in this rate impact the markets and different type of MF. Now that RBI has reduced the repo rate recently which are the MF will be attractive due to this and for what term.
Additionally would like to share an updated list of best MF of different types in view on the new budget.
Regards
Tridib
Dear Tridip,
Thank you for your appreciation.
Kindly read my articles – “What is CRR, SLR, Repo Rate…?” & “RBI cuts Repo Rate – What is the impact on Loans?”
Kindly choose and invest in Equity mutual funds with a long term view. Do not worry too much about budget. As of now, I prefer to invest in the above top rated funds only.
Hi Sreekanth,
Thanks for the articles . The explanation was very lucid and help for a layman like.
One more query: While investing in Mutual Funds which is the best option : The Growth Option or the Dividend Payout options .
Will the decision vary as per the type type like say Equity, Hybrid, Debt or open ended vs closed.
Will the dividends be taxable
Regards
Tridib
Dear Tridib,
Thank you for your appreciation.
For long term wealth creation, it is better to opt for “Growth” option.
It depends on if you need income at periodical intervals (but remember that dividend payout does not mean the fund(s) pays at regular intervals).
Dividends from equity mutual funds are tax free.
hello bro
good article by you and very helpful for investors like me. Pl guide me on my investment portofolio too.
I want to invest from start now as my goals are Retirement plan , Child investment plan , and SIP.
I can invest monthly 10-20k either in MF of SIP or any policy which you can suggest.,My requirement are i am looking for lumpsum amount of 2cr-5cr in 20 years time.I dont know where to invest or put my funds in. Should i do SIP monthly to achieve such goal which can take care of my all need in one Plan? Pl suggest me plan and amount to be invested for the same. thanks and best regards
Dear Sandip,
What is your age? Do you have sufficient life insurance coverage?
Hi,
I am planning to invest 10000 per month through SIP route in below mentioned portfolios.Please advise me whether the below bifurcation is suitable for my profile on a long term prospective.My age is 26,unmarried and as of now i do not have any liability.
Type Fund Name SIP Amount
Large CAP SBI Blue Chip Fund(G) 3000
Small and Mid CAP Franklin India Smaller Comapnies(G) 2000
ELSS Axis Long Term Equity Fund(G) 3000
Diversified Franklin High Growth Cos(G) 2000
Dear Rahul,
Suggest you to consider either Franklin India Bluechip fund / ICICI Pru Focused Bluechip fund in place of SBI’s. Rest of the funds are good.
Dear Mr. Sreekanth,
Thanks for your valuable suggestion.
1)Can you please clarify why you have suggested to opt for Franklin India Bluechip fund / ICICI Pru Focused Bluechip instead of SBI?
2)Also let me know whether i should opt for HDFC balanced fund in place of ranklin India Smaller Comapnies to have a better balanced and diversified portfolio?
Thanks in advance!
Dear Rahul,
1 – These funds are more consistent.
2 – You may invest in both the funds, as your time-frame is long-term.
Thanks Boss for the advice…You are doing a marvelous job!!!
Hi Mr. Sreekanth,
Basis on your valuable suggestion, I have stared SIP in below two funds from April’15
ELSS-Axis Long Term Equity Fund(3000)
Large Cap-ICICI Prudential Focused Blue Chip Equity Fund(3000)
I am planning to invest 4k more from this month onwards.Please advise
which selection is better among the below shortlisted funds.
Option 1–
Mid/Small Cap- Franklin India Smaller Companies(2000)
Diversified Equity- Franklin India High Growth Cos(1000)
Balanced Fund-HDFC Balanced Fund(1000)
Option 2–
Mid/Small Cap- Franklin India Smaller Companies(1000)
Diversified Equity- Franklin India High Growth Cos(1000)
Balanced Fund-HDFC Balanced Fund(2000)
My age is 26 and investment horizon is for long term and no liability as of now.
Dear Rahul,
Nice to know that you have started investing in MF SIPs 🙂
Considering your age and current fin profile, you may opt for option-1.
Dear Srikanth,
Love your articles. I am a very new investor & have just recently started a few SIPs (demat form) whose details I am giving below. I need advice on tweaking my portfolio if needed to meet essentially two goals: a house of about 75 lakhs and a substantial retirement corpus considering my current monthly expense of 30K about 10 yrs & 20 yrs from now respectively.
HDCF Top 200/HDFC Balanced/HDFC Bank/ICICI Bank/TCS/HCL Technologies – 5K each; L & T India Value Fund/FranKlin smaller companies- 3K each.
Also have a few direct shares of Infosys/Sun Pharma/ITC/SBI/Havells. Just testing the waters you see.
Regards.
K
Dear Karen,
Happy to know that you like my articles. Cheers!
Suggest you to concentrate on creating on good MF portfolios only (as you are a newbie to MF/Equity investments).
10 year goal – HDFC Balanced fund is a good one. HDFC Top 200, continue holding the units, but you can consider investing in Franklin India Blue chip fund (new investments).
20 year goal – Franklin Smaller companies, ICICI Prudential Focused Bluechip, Franklin India Prima plus and HDFC Balanced fund can be considered.
Dear Sreekanth,
Thanks for the heads up. Do keep up the good work.
Karen.
Sreekanth Sir,
Please help me choosing the one best fund for SIP of Rs.2000 per month from below list for 10 – 15 year timeline.
* ICICI Pru Exports and Other Services Reg-G
* ICICI Prudential Value Discovery Fund -G
* ICICI Pru Top 100 Reg-G
* ICICI Pru Top 200 Reg-G
Dear Lakshmikanth,
Given a choice, I would opt for ICICI Pru Value Discovery Fund.
Dearsir
I want to invest 3-5 lakh in mutual fund as lumpsome.kindly suggest me some balanced fund wth returns of12% anually.
Dear Sanjay,
What is your investment horizon (time-frame)?
5-10 years
Hi Sreekanth ,
Hope you are doing good recently ,
I am newbie to the world of investment.I am 30 year old working in an IT company.
I have taken House loan of 45 lakh for 15 years with ROI of 11.25% (Fixed Rate) with LIC House loan scheme.
At present the Monthly Installment is around 53,238 INR/Month. So if i calculate the same for 15 years , then i will be paying around 96 lakh in total which is well above double the amount i have borrowed from bank.
I am in a situation to keep aside another 50K/Month to pay off my loan to the earliest.I have taken the loan in 2014 , As of today the remaining loan stands at 44.38 Lakh.
I have a confusion with the following query ,
1) Will i be saving more on Interest by paying 50k/Month directly to the Principal amount in Loan (Which brings down my interest amount the following Month).
2) Should i invest 50k/Month in any of SIP or equity so that by the end of 5 year , i can save enough to finish off my loan on 61th month.
If i continue paying 53,238 for 5 years then i need to pay 38lakhs (Approx) to finish off my loan during 61th Month.Similarly if i start paying another 47K/Month to Principal amount then my loan will be completed exactly on 61th Month , So i will be paying 1lakh /Month (Approx).
Considering all these calculation , what do you suggest me out of the above said two option ?
If i start investing 50/Month to any of SIP and carry on with paying 53k towards home loan , then will my SIP return me more than 38 Lakh by the end of 5 year ?
Please let me know your valuable suggestion.
Regards
Ashesh
Dear Ashesh,
Nice analysis and good query.
1 – Since you have taken loan in 2014, any part pre-payment will save your more money (in terms of interest payments). Prepayment in the initial years of a loan tenure is generally better than the prepayment in the final phase of a loan.
2 – If you save Rs 50 k per month in mutual funds, assuming a return of 10%, you may accumulate around Rs 38 Lakhs in 5 years from now. Which is exactly the outstanding loan amount in 61st month . But, the real challenge is, can mutual funds give you 10% returns? Answer is, may or may not be..They may give you more than 10% also..are you ready to take risk?
Another option can be, you can switch to a floating rate (no prepayment), if you interest rates fall below 10% (which may happen in the next quarter), and start investing as much monies as possible in MF schemes like balanced funds.
Let me ask few questions, is your retirement plan in place? What about investments towards other financial goals (if any)? Is this property a self-occupied one? Do you get any rental income from this property?
Hi Sreekanth ,
Thanks a lot for your timely response.
As of now i have No Retirement investment in place , So far i have invested only in LIC Term insurance with a coverage of 1.5 crore.
I am not able to save in other plans mainly because of this House loan , As majority of my salary goes to House loan repayment. The house was purchased by me for my parents and Brother to stay , So i don’t have any sort of rental income from the same.
I had a talk with LIC manager to convert from Fixed to Floating rate , But the lowest possible conversion floating rate offered to old customer is only 10.90% , Which i don’t think make any sense considering the market volatility in 5 years from now.
I also considered changing my Loan from LIC to other bank say HDFC which is offering ROI @ 10.10% , But to this i need to pay 2% of outstanding amount to LIC for loan transfer + 14 % service tax on the Transfer fee , This accumulates to approx 1lakh and on top of this i need to pay another 35k to HDFC for MOD sign off and other paper work . So in total i will be spending 1.35 lakhs for transfering my loan to another bank with ROI @ 10.10 at present.
My monthly payment would be 48.7K/Month with new ROI. So saving me almost 3 lakhs in 5 years time , If i subtract the initial payment made of a1.35 Lakhs then the approx saving would be around 1.65 Lakh if the ROI remains at 10.10 or even lower.
But if by some scenario the ROI goes higher then i will be in trouble , also i dont think 1.65 lakhs is a huge amount to save in 5 years time.At least by paying 11.25 % at fixed , i can calculate my monthly payment well in advance and also i can calculate about the remaining amount left to close off my loan .
This is just my view point and assumption.
So considering all these criteria , do you suggest me to invest 50k approx towards balanced funds ? As of now , all i care is to pay off my house loan at first and then plan for retirement and Savings option.
Looking forward to hear your view point on the same.
Regards
Ashesh
Dear Ashesh,
After going through your comments, I believe that it is advisable to start investing in Balanced funds / good equity mutual funds towards your retirement goal. Many of us do this mistake of not planning for retirement and concentrate more on repaying the outstanding loan amount.
The sooner you start saving / investing, the better it is. Do not underestimate the power of compounding.
I suggest you. let the home loan EMIs continue, start investing for your financial goals. What do you say?
Hi SreeKanth ,
Thanks for your valuable suggestion.
Can you suggest me few Balanced Funds/Equity which you think might be fruitful to invest in.
Also, can you help to provide me a breakup on investment if to be invested in Multiple plans.
Regards
Ashesh
Dear Ashesh,
You can consider investing in 4-5 funds for long term and allocate your 50k for these monthly SIPs.
ICICI Prudential Focused Bluechip Fund – Rs 15,000
UTI Midcap Fund – Rs 12,000
Franklin India Primaplus Fund – Rs 12,000
HDFC Balanced Fund – Rs 10,000
Hi Sir,
I have 5 funds currently.I am investing since last 4 years.Funds are as beow:
HDFC TOP 200: 5000
IDFC Premier Equity:2000
DSP Blackrock:1000
REL Equity:5000
ICICI PRUD :5000
REL GOLD:2000
Can you please let me know whether my fund selection is correct? Should i increase any more fund and which one?I am not very confident about Gold savings and planning to stop it as continuously it is giving negative return.Your thought please.My financial goals are Retirement,child education and one personal house ( not flat) and a car in next 10 years.
Thanks
J Chatterjee
Dear Mr Chatterjee,
HDFC Top 200 & IDFC Premier are decent investment choices.
Let me know the full names of other funds.
Kindly let me know about the time frame of your goals & your age. Based on that, we can work on identifying some good funds.
Hi,
I am 34 years.my funds are reliance equity opportunities.icici focused blue chip.reliance gold saving. Dsp Blackrock small and mid cap. I want to retire at 50 age.others goal for next 10 year
Dear Mr Chatterjee,
You may continue with HDFC Top 200, IDFC Premier & ICICI Focused.
You can also consider investing in Franklin india prima plus and HDFC Balanced fund.
Dear Sir,
Please help me to decide the Mutual /Equity Fund which will give maximum return with least risk, if invest 60 K per annum for 20 Yrs. Lots of Con