Suggest/Review my Mutual fund investments

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vijaya asked 6 years ago

Dear Sreekanth, Q 1. On behalf of 84 year old mother, Consultant doctor with Active income. She has no financial goals and does not require any monthly income from MFs. Fund adviser suggested L&T Liquid to L&T Midcap @ rs.15000/- per week for 10 weeks for total of 1.5 lakhs. This is the first time he has suggested a L&T fund and I want to know if we should go ahead. Q2. Is Birla Frontline Equity a Sectoral fund? Thanks, Vijaya Maharashtra

2 Answers

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Sreekanth Staff answered 6 years ago

Dear Vijaya ji, May I know if she has already invested in any of the MF schemes? Birla Frontline Equity is a Large-cap oriented fund and not a Sectoral one. Its Investment objective is - The scheme seeks long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and/ or sectors as its chosen benchmark index, Nifty 50. The secondary objective

vijaya replied 6 years ago

Dear Sreekanth,
1.
Yes, mother does invest in MFs since the last 1 year.
Axis Long term
HDFC Mid cap
ICICI FMCG
SBI FMCG
Balanced funds
HDFC MTOGT
BSL Dynamic and Medium term etc debt funds
L&T is a new suggestion.
So we wanted your advice.
2.
So is 100 % Equity fund Birla Frontline safe ?
At the age of 84, mother does not want high risks.
Vijaya

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Sreekanth Staff answered 6 years ago

Dear Vijaya, Based on the information provided, I understand that your mother does not have any financial goals, have sufficient source of income and does not require any periodic income (dividend) from her investments in MFs.

So, any specific reason for her unwillingness not to take high risk?? In fact, she has taken high risk by investing in Mid-cap or Sectoral funds (FMCGs). If she would like to take moderate risk then she can consider investing in existing Balanced Funds. Related articles :