Early retirement planning

Q & A Forum › Category: Mutual Funds › Early retirement planning

T M Ghosh asked 9 years ago

Hi Sreekanth, hope you are doing well. I have following clarifications: My SIP portfolio: DSPBR Micro Franklin Smaller Cos ICICI Pru Focused Bluechip Mirae Emerging Bluechip UTI Mid cap (Total investment INR 1 lakh per year through above SIP)

Is it looking good for retirement corpus after 10 years? My age is 42 years. Current monthly expenses are around INR 30000-35000. I also planned to take one ELSS in future.
Performance of UTI Mid cap is not acceptable, should I continue it or switch to other? Please advise.
Suggest me another fund (except ELSS) to be invest in 2017 which is of low risk with above avg to high return, e.g. Birla SL frontline or SBI Bluechip or others?

Thanks in advance. Regards,

12 Answers

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Sreekanth Staff answered 9 years ago

Hi, I believe that you have an aggressive MF portfolio (assuming you have high allocation to mid/small funds). Kindly check portfolio overlap between Mirae & UTI funds. http://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ The performance of UTI midcap may not be up to the mark, but it has been a decent performer for the last many years. Personally, I am holding my investments in this fund. (Kindly note that there has been a change of Fund manager for this fund.)

T M Ghosh replied 9 years ago

Thanks Dear for the advice on portfolio overlap. May be the fund switch is better option for UTI.
Please suggest a fund to start SIP in 2017 that will give high return with below average or low risk.
Thanks,

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T M Ghosh answered 9 years ago

Thanks Dear for the advice on portfolio overlap. May be the fund switch is better option for UTI. Please suggest a fund to start SIP in 2017 that will give high return with below average or low risk. Thanks,

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Sreekanth Staff answered 9 years ago

Hi, May be you can consider adding one Equity oriented balanced fund like HDFC Balanced fund :) Kindly read: www.relakhs.com/top-best-balanced-mutual-funds-returns/

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T M Ghosh answered 9 years ago

Thanks a lot Dear

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T M Ghosh answered 9 years ago

Hi Sree, I came to know there is temporary suspension on DSPBR Micro Cap due to overflow. Is it true? If Yes, then what about the ongoing SIPs in this scheme? My SIP started 5 months back, it will be continued or I have to switch? Regards,

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Sreekanth Staff answered 9 years ago

Hi, If you have an active SIP, which has been set up on or before 20th feb, 2017, SIPs can be continued and will be accepted.
All fresh investments lump sum or new SIPs, after 20th feb will not be accepted by the Scheme.
If you have made investments in this fund, you may kindly continue with the holdings or SIPs.
May be, the fund manager would like to to stop fresh investments to safeguard the existing investors.
Read this article : DSP Micro Fund stops fresh investments!

T M Ghosh replied 9 years ago

Thanks for your valuable comment.

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T M Ghosh answered 9 years ago

Hi Sree, Hope you are doing well. I found a big difference between Absolute and Annualised Returns in my portfolio. Annualised Returns are always far ahead of Absolute Returns percentage. To consider the growth of my portfolio which should be the basis? If you can explain this for me. Thanks in advance,

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Sreekanth Staff answered 9 years ago

Hi, I am doing good, thanks! How about you? Kindly consider the Annualized returns as the parameter to analyze your Portfolio's performance. Suggest you to go through below article; https://www.relakhs.com/formulas-calculate-returns-investments/

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T M Ghosh answered 9 years ago

Hi Sree, Hope you are doing well. I have ongoing SIPs Rs.18000 per month. Now I have around 3-4 lac in hand and I wish to invest it in funds as lump sum for a span of 5 years. Please suggest me 2 funds which can give me maximum return with low risk. Thanks & regards,

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Sreekanth Staff answered 9 years ago

Hi, Good morning! Kindly share your current MF portfolio details (MF scheme names).

T M Ghosh replied 9 years ago

Hello,
Thanks for the reply. Below is my portfolio:

ICICI pru focused blue chip- 5000
Mirae asset emerging blue chip- 4000
Franklin India smaller companies- 3000
HDFC balanced- 4000
Axis LT equity- 2000

Suggest me 2 funds to push my liquid money (4 lac) in lump sum with low risk and high return for 5 years.

Thanks in advance. Regards,

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Sreekanth Staff answered 9 years ago

Hi, You may consider setting up STP (Systematic Transfer plan) for say Rs 30,000 per month from HDFC Liquid Fund to HDFC Balanced Fund for next 12 months or so. Kindly note that Equity oriented balanced funds have moderate risk. Also, the redemptions from liquid fund are treated as normal redemptions and capital gains (if any) are subject to Taxes. Suggested reading : https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/ https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/

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T M Ghosh answered 9 years ago

Hi Sreekanth, Hope you are doing well!!! For my son's education I need a lump sum of 5,000,000/- in mid of 2025. I have the following:

I started HDFC Life Young Star policy in 2013 with annual premium of 100000/- for 15 years. Should I drop this policy, because time is not matching and I am slight skeptical about its return and invest the same in mutual fund SIP?
I have some 10L in hand to invest in lump sum for 8 years so that I can get the good return by mid of 2025. Can you recommend two mutual fund that can give me realistic return over 8 years with minimum risk?

Thanks in advance and appreciate your usual support for my financial planning. BR