A well balanced life is very much essential for personal effectiveness, peace of mind and living well. We all would like to maintain a balance between professional and personal life. Both are equally important to lead a successful, happy and healthier life. We need to have right and well-balanced diet to be healthy and fit.
Investing in Balanced Mutual Funds is not much different. Balanced funds are also known as Hybrid Mutual Funds. Personally I prefer investing in balanced funds to achieve my medium and long-term goals. I am a strong advocate of Balanced Funds. (Read : My Mutual Fund Portfolio)
Whether you are a novice or an experienced investor, investing in balanced funds can be fruitful. They can give you Diversified Equity funds like Returns but with a lower risk profile.
I have published an article on ‘ Best Balanced Mutual Funds ’ in 2014. It’s around 2 years back. So, let’s have a re-look at some of the Top and Best Performing Equity Oriented Balanced Funds.
In this post, let us discuss – What are Balanced Funds? What are different types of Balanced Funds? Which are the best Balanced Mutual Funds (equity oriented schemes)? How is the performance of Regular Plans Vs Direct Plans of Balanced Mutual Fund Schemes?
What are Balanced Funds?Â
Mutual funds are broadly classified as either Equity or Debt, based on where a fund’s corpus is invested.
- Equity funds primarily invest in stocks/shares.
- Debt funds primarily invest in Bonds, Government securities and Fixed interest bearing instruments.
- Whereas, Balanced Mutual Funds invest in both equity and debt instruments.
Types of Balanced Mutual Funds
Balanced mutual funds can be Equity oriented or Debt oriented hybrid plans.
If the average equity exposure of a balanced fund is more than 60% and the remaining 40% is in debt products then it is treated as an Equity Oriented Balanced Fund. This means major portion of the fund’s assets are invested in equity (stocks).
If the average debt exposure is around 60% and equity is 40% then these funds are treated as Balanced funds – Debt oriented. (These proportions can vary among different balanced fund schemes).
Top 5 Best Balanced Mutual Funds
As per my last review on Balanced Funds, I have suggested below schemes;
- HDFC Balanced Fund
- TATA Balanced Fund
- HDFC Children’s Gift Fund – Investment Plan
- HDFC Prudence Fund
- ICICI Prudential Balanced Fund
- Reliance Regular Savings Fund – Balanced option
If you have already invested or have active SIPs in any of the above balanced funds, you may continue with your investments. But, kindly note that there are certain drawbacks with Children oriented MF Schemes. So, you may have a re-look at HDFC Children’s Gift Fund. (Read: Children’s Gift Funds – Comparison & Review)
If you are planning to make fresh investment s or SIPs, you may consider below Best Balanced Mutual Fund Schemes.
- There are around 59 Balanced Schemes (source – moneycontrol). The Balanced Fund Category has given an Average Returns of around 13.3% and 8.5% in the last 3 and 5 years respectively.
- TATA Balanced Fund has been one of the best balanced funds for a long-time.  The fund has been a consistent performer. The fund has retained a four or five-star rating for the last seven years. The Fund’s strategy has been to allocate a slightly higher equity allocation. The current equity allocation is around 70% of the Fund’s portfolio. The fund’s equity portfolio consists of  primarily mid-cap companies. It has HIGH return grade with AVERAGE risk grade.
- HDFC Balanced Fund’s returns and portfolio strategy is similar to that of TATA balanced fund. It also has around 70% equity allocation and has been primarily investing in Mid-cap oriented company shares. However, the fund has slightly reduced its allocation to mid & small cap companies over the last couple of years. The returns from TATA balanced fund & HDFC balanced fund are as good as some of the top performing pure Equity Funds. HDFC Prudence fund is also an another consistent performer from HDFC fund house. However, this fund now has a HIGH risk grade with an AVERAGE return grade. So, given a choice you can prefer HDFC Balanced Fund to HDFC Prudence Fund.
- ICICI Prudential Balanced & Birla Sunlife Balanced ’95 funds have also been performing well. These funds have given returns of around 13.74% & 16.12% in the last 10 years respectively.
- I have replaced Reliance Regular Savings Fund – Balanced option scheme with SBI Magnum Balanced Fund.
- Watch out for lock-in period and Exit Load on HDFC Children’s Gift fund. The investments in this fund have to be made in the name of Children who are below 18 years of age.
- Two more balanced funds to watch out for are L&T Prudence and Franklin India Balanced Funds. Let’s have an eye on their performances.
Balanced Funds : Direct Plans Vs Regular Plans – Returns Comparison
Below table gives you an idea about why investing in Direct plans is beneficial. The returns on Balanced Funds – Direct Plans are higher than the Regular plans. The difference in returns is as high as 1% in most of the cases.
(Read: What are Direct Plans of Mutual Fund Schemes? How to invest in Mutual Fund Direct Plans online?)
The main benefits of investing in a balanced fund are;
- Diversification : The funds are invested in both equity and debt financial securities leading to diversification of investments.
- Asset Allocation & Re-balance : Balanced funds regularly re-balance the portfolio based on market conditions & asset allocation limits. An investor is, thus, saved the hassle of manually re-balancing the portfolio. But it is prudent not to remain invested in these funds till your reach your Financial Goal target year. You may have to switch to safer investment avenues as you reach your target year.
- Low volatility : Balanced funds are less risky compared to pure Equity funds. Equity portion will provide the capital appreciation through stock prices appreciation and dividend income. Whereas, Debt portion can provide stability through interest income and appreciation in Bond prices.
- Long Term Capital Gains : In terms of taxation, the balanced mutual funds that invest at least 65% in equity ((Equity oriented) attract no tax liability on Long Term Capital Gains. The units of these funds should be held for more than 12 months.
- You can consider balanced funds for your medium to long-term goals like Retirement Planning or for Kid’s Higher Education goal planning.
Though Equity oriented Balanced funds have low risk profile compared to pure Equity funds, but it does not mean that they are totally risk-free. You may have to remain invested for longer period to get decent returns.
Do you invest in Balanced funds for your medium or long-term financial goals? Kindly share your views / comments.
(References : moneycontrol.com, valueresearchonline.com, morningstar.in & freefincal.com)Â (Image courtesy of Sira Anamwong at FreeDigitalPhotos.net) (Post Published on : 14-June-2016)
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Dear shirkant,
Please tell me where to Invest Rs. 10 lakh for future security of my retirement.
I am 67 years old .
Is it equity linked mutual fund or something else.
Can I start now.
Dear Divakaran Ji,
Are you totally dependent on the income generated by this Corpus?
Do you have any other source of income to meet your living expense?
Is this investment for wealth accumulation or for regular income withdrawals?
Dear Srikanth,Stock market is daily making high.New investment in equity mutual funds has become risky.It is high time if you rewrite one year old article on balanced mutual funds.Thanking you.
Dear Jawahar Ji..will soon try publishing a latest article on Balanced funds.
Hi Sree,
First and foremost you are doing a fabulous job by assisting people to invest healthy. I learnt a lot from your blog. I also went through other sites which you suggested. I am very thankful to you.
i invested in ELSS scheme,SBI Magnum tax gain, regular growth plan – 50 K(with nill knowledge, since Bank manager suggested).Later realised there are better schemes.
later i went through your blog and other articles.
My goal is to invest 1- 1.5 lakhs for period between 1.5 -3 years. Risk is moderate. Expecting returns >9%. I come under 20% tax slab.
Here comes my query,Is investing in Debt Short term or Balanced Fund ideal? Not sure which fund to decide,i will definitely keep money more than one year.
I believe in that case Balanced funds will give more returns after one year than short term debt funds. Is my understanding correct?
I thought of the below:
Balanced fund – HDFC Balanced fund
Debt Short term – HDFC Short tem fund
please suggest if there are any better funds than the above.
Really appreciate your contribution to my plan
Thanks,
Bhavana
Dear Bhavana,
Thank you for your kind words and appreciation!
Let’s first understand the fact that returns from debt funds or equity oriented funds are not fixed/guarenteed.
Equity balanced funds can give more returns or even less returns than a debt fund in one year.
So, ideally you need to pick a category based on your investment objective and time-frame.
You may consider a balanced fund if you have a longer / medium term view, say 5 years +.
Read:
What are Debt funds? Types of debt funds.
Best Debt funds.
What are Arbitrage funds?
Best MIP Funds.
Best equity funds.
Hi Sree,
Thanks for your prompt reply. As I said I already gone through all your articles and other suggested sites. I feel like I have theoretical knowledge but not the practical knowledge. Since I have already suggested my risk level and time tenure, I would really appreciate if you suggest me the right fund type and best fund in that type. I really trust your suggestion.
Kindly help!
Regards,
Bhavana
Dear Bhavana,
If your time-frame is say around 5 years, you may pick HDFC Balanced fund or even on large cap fund like Birla frontline equity.
If you have time frame of around 3 to 5 years, you may pick MIP Fund like Birla MIP II Wealth 25 fund.
For short term – you may consider Short term debt funds or even Arbitrage funds.
Hi Sree,
Thanks for your suggestion. I have a query which is nagging me. Here it is, this year due to Trump modifications in IT sector policies I assume there will be affect on Technology. I myself work in Infosys and knew there are steps taking in place to minimise the effect but impact is still there.
So is investing in MF including Technology portfolio ideal for this year returns? If not please suggest MF with out Technology through your expertise.
Thanks much in advance. You are helping me a great deal!!
Regards,
Bhavana
Dear Bhavana,
Suggest you to kindly visit moneycontrol.com and check the latest Portfolios of the funds shortlisted, you may skip the ones which have high exposure to Tech/IT sector.
For example : You can track the Portfolio details of HDFC Balanced fund here…
Hi Sreekanth,
I am 25 years old. I am planning to invest in Low Risks Mutual Funds which can assure me a minimum of 9-10% every year. I can invest max 3000 INR per month, and for duration 10 years. Could you please suggest me best Mutual Funds for my requirement.
Regards,
Rohith
Dear Rohith,
May I know why you would like to invest in low-risk mutual funds, for long-term?
Kindly note that returns from mutual funds are not guarenteed.
Hi Sreekanth,
What i am thinking is, if i invest in low-risk mutual funds for long term, i am assuming that it works similar to PPF. Since PPF interest is 7.9%, is bit low for long term.
Atleast i need 9-10% interest, so falling on Mutual Funds to get it..!
If not this..! Please suggest me one good mutual fund for long term (10 years).
Dear Rohith,
Nothing wrong in expecting lower return/taking lower risk, provided you are confident that you can achieve the required goal amount (if any) with that kind of return.
“‘The biggest risk is not taking any risk… In a world that changing really quickly, the only strategy that is guaranteed to fail is not taking risks.’”
You may consider one Large cap fund and one Equity oriented balanced fund.
Read: Best Equity funds.
I have two daughters of 7 and 4 years, iam having a annual income of Rs 5 L , i am 33 yrs, at present i am investing in Kotak select focus fund Rs 6000/m, and planning to invest in HDFC balanced fund Rs 4000/m from next month onwards. For tax i have sufficient cover by lic policy, pf contribution
I need a corpus of Rs 50 L for my daughters studies/marriage.
Will the investment in MF be adequate
Kotak select focus fund equity regular
Dear archana Ji,
Kindly go ahead with your investment plan.
May I know details of LIC policies (Plan name, sum assured, tenure and commencement date).
Read:
Kid’s education goal planning & calculator.
Hai, I am 28 Years Old, i am recently starting SIP following Funds:
1) Axix LT Equty Fund Growth – 1000 (Present Hold Value 4ooo)
2) HDFC Mid-Cap Opportunities Fund Growth – 1000 (Present Hold Value 4000)
3) ICICI Prudential Value Discovery Fund Growth – 1000 (Present Hold Value 6000)
4) Birla Sun Life MIP II – Wealth 25 Plan – Growth – 1000(Present Hold Value 1000)
I was planning to have one more investment in Lumsum (25000/-) of Balanced Fund in BNP Paribas Balanced Fund.
My investments horizon is long of apx 20 – 25 years. this Balanced Fund is Ok are any changes in Fund
Dear Chiranjeevi,
Your portfolio looks fine.
Is BNP Balanced fund a New Fund offer? If so, you may pick a balanced fund from the existing schemes rather than investing in a new fund.
Hi Srikanth,
I am an NRI. If I need to withdraw Rs. 30000/- per month thru SWP, how much amount I should invest. looking for Capital appreciation also. Which fund I can opt?
I mean Debt fund. Because I can’t afford any depreciation from the capital if it is equity linked. SBI Magnum Glit fund-long term-growth is a right choice?
Dear Raj,
Kindly note that even Debt funds like Gilt funds can have capital depreciation, but probability of it happening is lower when compared to Equity funds case.
Kindly read:
Types of Debt funds.
Best Debt funds.
Best MIP Funds.
What are Arbitrage funds?
Thanks Sreekanth. I’ve gone thru all the articles. But still I haven’t take a firm decision to opt which fund from this categories.
Could you pls. give me some fund options to suit to my requirement?
Dear Raj,
You may consider SWP of MIP MF plan.
Dear Sir, I am a new investor in MF and investing lump sum in Balanced funds (SBI magnum, HDFC balanced fund) with SWP option. I am looking for good long term tax free return with less risk ( below avg).
Can you please suggest me a way to invest small amount of money which accumulates time to time in my savings account from several FD and ECS. I am not looking for SIP as this is not regular accumulation. I do not want to keep this amount idle in savings account. Is there any investment option in mutual fund so that I can keep toping up with such small amounts time to time in a less risk/moderate risk fund and get tax free return with SWP.
Thanks in advance.
Dear Amit,
You may consider an Arbitrage Fund, the withdrawals or SWPs after 1 year are tax-free. (kindly note that the units should be 12months + old to get tax free gains).
Read: What are Arbitrage funds?
Thank you so much for your valuable suggestion.
Hi Sreekanth,
One my friend is planning to invest in mutual funsd who is staying currently in U.S.Is he allowed to invest in MF as an U.S NRI?If yes,which AMCs are allowed.
Dear Giri,
Kindly go through this article : FATCA compliance & NRI MF investments!
Hi Sreekanth,
Thanks for providing information .My below question still remains ..Can you let me know AMCs which are accepting U.S NRI Fresh investments so that he can choose funds from those AMCs.
Dear Giri,
AMCs accepting investment from US based NRIs includes – L&T, UTI, PPFAS, Sundaram and Canara Robeco. (list is not exhaustive)
It is a bad idea. PFIC tax requirements are a killer. Advise your friend to look for US domiciled funds like Mathews which invest in Indian equities.
Hi Sreekanth,
I am 30 years old & recently started doing SIP in following Funds:
1) HDFC mid cap – 5000
2) ICICI ELSS – 5000
3) SBI Midcap (which actually is small cap) – 5000
I was planning to have one more sip of apx Rs 5000. I am confused between Balanced, Large or Multi cap.
I did some research and found that in long run Balanced funds beats large cap & almost same returns for multi cap. Do you suggest i should go for Balanced instead of large or multi cap as it give little safety for downside performance of market as well.
My investments horizon is long of apx 15 – 20 years.
Regards,
Shruti
Dear Shruti,
Your current portfolio has mid/small & multi cap (though it is an ELSS fund). so, it makes sense to add an equity oriented balanced fund to the portfolio.
But do note that past performance may or may not be repeated in the future 🙂
Dear Srikanth,
Thank you for educating MFs online. I am 36 years old. I am writing my portfolio for retirement plan( retirement at 60yrs) : tata retirement savings fund moderate(D) -2000/-, SBI magnum balanced (D)-2000/-, ICICI prudential balanced(D)-1000/-, PPF SBI -1000(15 yrs),NPS ICICI bank -4000/-
Kindly look into them and advice me.
Dear Sivarama,
If you are planning for accumulation of Retirement Corpus (24 years from now), you may consider GROWTH option instead of Dividend option.
You may consider one balanced fund, one diversified fund and one mid-cap fund.
Read:
Retirement Planning & calculator
Why NPS is not a good investment option?
Best Equity funds.
How to select the right mutual fund scheme?
MF portfolio overlap analysis tools.
Dear Sreekanth,
Is it better to invest in HDFC Balance Fund lumpsum or do you recommend going the SIP route in Balanced fund ? Can you please tell which method is better and why?
Sreekumar
Dear Sreekumar,
May I know your investment time-frame?
Kindly read : Is creating wealth through Systematic Investment Plan (SIP) a hoax?
Dear Sreekanth, thanks for your reply. My investment timeframe for equity focussed balanced fund is 5-6 years. Is that OK ? I have a plan to go for aggressive MIP also for around 3 years. Kindly advice whether its good to go via lumpsum or SIP for both? Also 1 more doubt, when is best time to invest in MIP and balanced fund, when markets down or up? Also better to go lumpsum or SIP? Thanks in advance bro!
Sree
Dear Sreekumar,
Obviously when markets are down, but it is next to impossible to TIME the markets.
The next few months can give you good opportunity to make your investments. Suggest you to invest lump sum amounts in few installments over the next say 2 to 3 months.
Read : Best MIP Funds.
Dear Srikanth,
I am Shridhar. I am 25 yrs old.. I can invest 2000 pm. But dono where to invest ( MF or Shares or Equity or Debt). I am clueless ans completely new to this. Please help me or advise me, on what basis i can go.. Possible please drop a mail to me or provide me your call no.. I will reach out to you.
Thanks,
Shridhar K.S
9066339794
Dear Shridhar,
May I know your financial goals?
Read: How to create a SOLID investment plan?
Dear Sreekanth,
I am 47 year old NRI, a regular reader of your blog and taken your suggestion many times. I have been investing in the following SIPs since 3 months with an additional investment of 1 lakh each on every fund:
• 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
I wish to invest 25lakhs in MF to get regular income after 3 years through SWP. Please suggest if I should invest in Tata Balanced fund I am already holding or invest in a new fund?
Regards,
Kumar
Dear KUMAR,
If I understand you correctly, you would like to invest Rs 25 Lakh one-time for 3 years for accumulation and then set up SWPs after 3 year to receive regular income. Am i right?
If so, instead of balanced fund, you may consider MIP fund like Birla MIP II Wealth 25 plan (growth option) for next 2 to 3 years and then set up SWP with the same fund.
Kindly read: Best MIP Mutual Funds.
Is it better to continue SWP for 10years or more in MIP growth option. How much would be the long term capital gain tax at the time of redumption?
Dear Kumar ..If your requirement is to make regular and fixed withdrawal then it can suit your requirement.
I have explained about MIPs & tax implications in this article, kindly read @ http://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/
I am 62 years male retired from Central Govt. I am in 20% tax bracket. I have kept my retirement corpus in Banks. After paying tax nothing much is left.
I intend to make investments in mutual funds or otherwise which are moderately safe.
So far I have invested in Axis Long Term Equity for the purpose of tax saving. And I have also invested in Tata Balanced Fund (Monthly Dividend Option).
Kindly advise me how to get maximum returns, safely (moderately) from my corpus.
Thanks
P K Batra
Dear Batra Ji,
May I know if your requirement is accumulation or regular income from the investment? Are you totally dependent on the income/returns generated by these investments? Do you have any other source of income?
Read: List of best investment options!
Sreekanthji,
I have started SIP in reliance equity opportunities from 3 yrs. It was performing good at that time. But last year it has given mere 3% return year to year. What should I do? Some websites suggest to swicth to another scheme. What is the best way in this situation? Or should I continue some time?
Dear Pratap,
May I know your time-frame?
Reliance equity opportunities is a mid-cap fund. There are better options in this space.
You may consider switching to HDFC Mid-cap or Franklin Prima or UTI mid-cap.
Read:
Best equity funds.
How to select the right mutual fund scheme?
Dear Mr. Sreekanth,
I am a retired person recently (58 yrs. – not a Sr. Citizen) from a Private company. I have invested from my retirement benefit some amount in SCSS and MIS for safe side and regular quarterly/monthly income. I have some 10 lacs rupees which I will be requiring after 5 years only, I want to invest in Mutual Fund for 5 years duration. I am in 10% tax bracket. Can you please tell me if I can invest in PPF for tax saving (as my PPF account is still in active on extended five years) or I can invest in ELSS. If so, please suggest me one or two best funds name. Also 4 to 5 Mututal Funds name where I can invest my money for safe and better returns as the bank FD rates are very low I do not want to invest. Also please suggest me if I have to invest in lumpsum or in SIP/STP by investing the amount in Liquid Fund. If so please tell me one or two good liquid funds name.
Thanks and regards
H. R. Krishnan
Dear Krishnan Ji,
But only an n individual of the Age of 60 years or more can open the Sr C.S.S account???
How dependent are you on this corpus amount after 5 years? Can you afford to take risk on this investment?
If yes, you may consider a Balanced fund + Aggressive MIP MF (growth) + PPF (for tax saving too) can be considered.
Read:
Best Balanced funds.
Best MF MIP funds.
Dear Mr. Sreekanth,
Thanks for your reply. Since I was retired under VRS and above 55 years, I was eligible for SCSS scheme. Can you please tell me in how many funds (one or two) I have to invest under Balanced and MIP Agressive Funds. Please also give me your fund names suggestion and the proportion of amount to invest. Also let me know if I have to invest in lumpsum or SIP being it is equity fund and how to invest? thru respective fund houses under direct plan or what?
Regards
H. R. Krishnan
Dear KRISHNAN Ji,
You may consider investing a portion of your Corpus (say 40%) in MIP fund as lump sum investment.
The remaining amount can be invested as STP, Ex – HDFC Liquid fund to HDFC Balanced fund.
Kindly note that taxes on capital gains on Debt fund are applicable. STP is treated as normal redemption.
Kindly read: MF Taxation rules.
Dear Mr. Sreekanth,
Thanks for your reply. Can you please tell me is it better to invest thru individual MF House or any online portal (please sugget me the best one) or thru CAMS etc. I wish to invest in direct plan. Also please let me know is it better to open account in my single name and include my wife as nominee or to open in joint names.
Regards
H. R. Krihnan
Dear KRISHNAN Ji,
You may consider investing directly through fudn house websites or portals like MF Utility or Invezta.
Joint or individual – It is based on your requirements. Even if it is single, do register the NOMINEE name across all Folios.
Hi Sreekanth
What would you advice ?
HDFC balanced fund Direct vs Regular – I am new to this, will it matter if I go for a Direct plan for next 3 years ?
What help will I get from distributor if I opt for a Regular plan ?
Thanks
Dear Priyadarshi,
If you are comfortable to buy directly then go ahead.
Read:
What are direct plans of Mutual funds?
Direct plans Vs Regular plans – comparison of returns.
MFU platform for buying direct plans of MFs.
Dear Shreekanth,
I want to invest a lump sum of 2lacs in a balanced fund for 3-5 yrs. HDFC Balanced and TATA Balanced have been leading the charts and favored by most but their Equity allocation is more Midcap oriented. I want to be extra safe with this and want to know your take on Franklin India Balanced fund and ICICI balanced Advantage fund(it’s equity allocation is showing below 60%…not sure if it is an equity or debt oriented hybrid fund). From the portfolios in valueresearch ICICI balanced Advantage seems to be the least risky in bear phases with lowest Standard Deviation. Kindly advice which fund should I choose.
Dear Suraj,
ICICI Bal adv fund has lower risk grade but kindly note that the returns are also AVG.
Kindly read: How to select the right mutual fund scheme based on Risk ratio?
Dear Sreekanth.,
Its KK again., thanks for your continuous support in making us financially healthy.,
I came across one question asked my Mr.Prem on 21st August in that he mentioned that HDFC balanced fund is investing majority in mid/small cap and with little exposure to large cap and in your reply you also acknowledged it.
i verified the Fund fact sheet, Money control etc., but i could see the classification only to the extent of Equities & debt which is around 70% -30%.,
As a matter of gaining knowledge pls let me know where do can i get such information.
Regards
krishna
Dear KK…Check out on Valuereasearchonline for any equity mutual fund scheme, under ‘Snapshot’ option and then under ‘Portfolio Aggregates’.
Tks boss
Dear Shreekanth
My time horizon is 8+ years and investing in Tata and HDFC balanced fund 4K each I checked overlap from the link given in your article in Fandoo it is 18%.Shall I continue?
Holding one debt in Franklin india low duration 3k.
( selected both balanced fund from an article “My portfolio” by you)
I am 48 now so didn’t invest in equity. I am holding these 3 funds only for kids education who are 11 and 13.
Please share your thoughts and kindly advice.
Dear Didagur,
Assuming your time-frame is around 4 to 5 years, the portfolio looks fine.
Kindly read:
Kid’s education goal planning & calculator.
Important articles on Personal Financial Planning.
Thanks Shree
Hi Sreekanth,
I’m planning to invest 20k in 2 mutual funds for my long term goals.
1. For my daugthers education-13 years time period= ICICI Prudential focused Bluechip eq fund-Growth-10K
2.For her marriage- 20 years= HDFC balance fund or Tata balanced Fund(dierct plans)-10k
Is it wise to invest in the above mentioned funds at present market rates? or shall I wait for the fall?
Shall I invest 20k in 4 different funds instead of 2?
pls suggest…
Thanks,
BR
Dear Bhagyaraj,
As you have long-term horizon, I believe there is no need to try TIMING the markets. You may add one Diversified Equity fund & Mid-cap fund to your portfolio.
Read:
Best Equity funds.
How to compare mutual fund schemes based on risk ratios?
Dear Sreekanth,
Thank you for your suggestion.
Cheers, BR
I am trying to invest online for JM Financial (JM Core 11 Fund) and Principal (Emerging BlueChip equity Fund). However, the online options for both the fund is really a pain as either the site does not open up correctly or they have typical issues like Principal Online page does not have many states when selecting the address. It also cannot take overseas phone numbers for NRI investors.
Has anybody tried the online options for these 2 AMCs?
I am trying to use Funds India to avoid this problem, but they initially want to deposit Rs 25 K, even if I want to invest only a starting cost of Rs 5000 in each fund.
JM Fund House do not sell directly through their AMC. Hence, no Direct fund. You select select any Zero cost Brokers like MFIndia, Zerodha, etc. Principal online site is a pain, but since Principal Emerging Fund is good hence invested.
I want to start a sip of 10000 per month. Tenure 15-20 years. My age is 31. Please suggest some mutual fund options.
Dear RD,
You may consider Schemes like : ICICI Pru value discovery / Franklin Prima plus, HDFC Mid-cap / Franklin Prima, Franklin Smaller companies fund / DSP micro-cap, SBI bluechip / ICICI focused bluechip etc.,
Read:
Best Equity funds 2016.
How to compare and select the right mutual fund scheme?
MF portfolio overlap analysis.
Dear SreeKanth,
I have HDFC balanced fund, if I am not wrong its more of a mid/small cap balanced fund with little exposure to large cap. Now, I am also looking for another balanced fund that is covering more large cap, which one would you suggest?
Thanks
Dear Prem,
I agree that the fund’s equity portfolio has higher allocation towards mid- and small-cap than most other balanced funds.
You may have a look at Franklin’s Balanced fund. The equity allocation is multi cap, with a diversified portfolio of large, mid- and small-cap stocks.
Dear Sreekanth,
I have an investment in HDFC TOP 200 direct plan (not SIP) since Jan 2015. Do I need to continue this fund or switch to other now?
Dear Jayan ..The fund has been performing not up to the mark for the last few years.
May I know your investment objective and time-frame?
Sreekanth, my investment is for 10+yrs.
From this year, I do follow your portfolio.. as the fund expense ratio is low.
Dear Jayan..You may switch to Franklin Prima plus.
Thanks Sreekanth, your advise is valuable.
Could you pls. suggest for me a fund that I can consider against Bank FD – 1/2year term.
Dear Jayan,
Kindly go through below articles;
Best Debt funds.
Best MIP funds.
Best Arbitrage funds.
Hi Srikanth,
I am planning to invest 15K PM via SIP and my time horizon is more than 15 years(goal is Childern marriage and Education) .Planning to invest in below funds .
Please suggest about my below portfolio and let me know if any changes required .
I have 1 Cr Term Insurance from HDFC and have Health insureance as well.
1) Kotak Select Focus Fund – Regular (G) OR SBI BLUE CHIP FUND – 4000 -(Large Cap)
2)HDFC Balanced Fund GROWTH -3500
3)HDFC MidCap Oppertinuties Fund – Growth -4000(Mid Cap)
4)DSP Blackrock Micro Cap Fund -Growth -3500(Small cap)
Dear Giri,
Portfolio looks fine
In case if you want to compare returns & risk factors between kotak Vs SBI funds, read this article : How to select the right mutual fund scheme based on the Risk ratios?
If you do not have disability cover/rider, you may consider buying a stand-alone Personal accident insurance plan.
Read: Best Personal Accident insurance plans.
I have mid-cap SBI Magnum Global Fund which I took 3 months back and I regret having. The returns are the worst among the peers. I also have Large cap SBI Magnum Equity Fund which is doing fairly well. Do I switch from Global to Equity? If I not wrong I will get 15% tax on the capital gain and 1% penalty from the fund. Is this a wise decision or should I wait for Global Fund to perform better (wait till 1 year and exit without tax or penalty) ?
Dear Manja,
3 months is a pretty short time to evaluate a fund especially if it is an Equity fund.
May I know the objective/reason for selecting Global fund?
Read: MF taxation rules..
Hi Sreekanth,
I know 3 months is pretty short, however, I was checking the history of this fund and it has been a low performer for 3 years. This is just one of the mid cap funds I have for my portfolio for retirement in next 15 years. The selection of this fund was literally due to accidental pick up of lumpsum allocation – was supposed to pick up Magnum Midcap but in the drop down selection, it accidentally was Global and didn’t even realized before confirmation 🙂
Then I was observing this fund for 3 months and doing background checks and realized, I have selected the worst of the funds. I am not doing any SIP in this fund, it is just the one time lumpsum.
So kindly state your opinion – stick with it and hope for the best OR take a bit of loss and pick up a good mid-cap / large cap (Magnum Equity, which I already have)
Dear Manja,
Got your point now!
You may switch to a better Mid/small cap fund as your investment horizon is 10+ years.
Read: Best Equity funds 2016.
Hi,
Very useful article. Can you advice on long term plan.
Equity funds seems to be a good option. I heard from a friend that principal mutual funds offers some very good investment options (principalindia.com). Please suggest.
Dear Shamal ..Kindly read: Best Equity funds.
Dear Sir,
I have been investing 2k amt in two mutual funds 1.5 years.
1. Birla Sunlife Manufacturing Equity fund-Regular Plan-1000/-
2. HDFC Small and Midcap Fund- Regular Plan-1000/-
My investment time horizon is >5 years & above, kindly suggest me are above fund goods in their Catagory or should i selection another funds to gets best returns with low risk.
Dear Yash,
If you would like to take low risk, may I know the reason for selecting a thematic fund like Birla manufacturing?? This fund primarily invests in equity securities of companies which are engaged in manufacturing activity only.
There are better funds in Multi-cap space.
In small cap space , my picks are : Franklin Smaller companies fund / DSP micro cap.
Kindly read:
Best Equity funds.
How to select best mutual funds based on Risk ratios?
Dear Sir,
Thanks for advice.
I read read your articles & decided to stop my current SIP & going to new SIP’s. Schedule are below.
1.DSP BLACK ROCK MICRO CAP FUND-DIRECT PLAN-2000/- per month.
2.AXIS LONG TERM EQUITY FUND-DIRECT PLAN- 1000/- per month.
I m still confuse between two fund category – Balance fund & Diversified Equity. Which should i obtained for long term purpose?
I want to invest another 2000/- Rs. through SIP.My investment horizon is more than 4 years.
Pls help & guide me & correct me if in case any deviation require.
Dear YASH,
If you are investing for say >10 year period, you can surely consider one diversified equity fund. Ex- Franklin prima plus or ICICI Value discovery fund.
For a period of say 5 years, you can consider a balanced fund. Ed- HDFC Balanced fund.
Dear Sir,
Thanks for removing my confusion between Balance & Diversified Fund.
What about my rest funds?- are they good or any changes require.
1.DSP BLACK ROCK MICRO CAP FUND-DIRECT PLAN-2000/- per month.- Investment horizon is more than 30 years (for retirement planning)
2.AXIS LONG TERM EQUITY FUND-DIRECT PLAN- 1000/- per month.- Investment Horizon is more than 15 year (for child education purpose)
Thanks once again.
They are good funds dear Yash.
Hi Sree,
I have redeeemd a mutual fund and want to reinvest in HDFC Balanced fund. I have already started a SIP in same. Can I make one time investment ? THe amount is around 4ok ? Please suggest.
Dear Akhil,
If for long-term, kindly go ahead 🙂
Dear Mr. Sreekanth,
Really i am always reading your blogs and investing as per your guidelines..Thank you very much for your blogs for us.
I want to invest 4000-5000 pm upto 5-10 years for our child education .His age is 1 year.
Can you suggest some good funds with fixed returns and below average risk ?
I would appreciate for your prompt reply.
Warm Regard
Jitendra Sahoo
Dear Jitendra,
Kindly note that Returns from mutual funds are not FIXED.
You may consider investing in a balanced fund and diversified equity fund.
Ex: HDFC Balanced fund + Franklin Prima plus.
Suggested articles;
Kid’s education goal planning & calculator
List of articles on key aspects of personal financial planning.
Best Equity funds.
Dear Sir,
I want to invest 5k per month in MF through SIP, i have read your articals and decided to invest in below funds.
1.AXIS LONG TERM EQUITY FUND-DIRECT -1000/- per month for long term wealth creation (minimum 10 years).
2.DSP BLACK ROCK MICRO CAP FUND-DIRECT PLAN -2500/- per month for Retirement planning (minimum 30 years).
3.Franklin India Balance Fund-Direct Plan-1500/- per month for 3 to 5 years.
I have been observing that MF Overlaping is very less in above funds.
Pls advice or suggest me incase if any changes require or not.
Dear jayesh,
1 – If one of your investment objectives is to save taxes, then fine.
2 – Good fund.
3 – My picks : TATA or HDFC balanced fund.
Dear Sir,
Thanks for your reply.
After received your instruction, i have finally decided to create my MF portpholio which as follow.
1.AXIS LONG TERM EQUITY FUND- DIRECT PLAN- 1000/- (for tax saving purpose & crating long term wealth)
2.DSP BLACK ROCK MICRO CAP FUND-DIRECT PLAN -2500/- for long term purpose (Retirement Planning)
3.HDFC BALANCE FUND-DIRECT PLAN- 1500/- for mid term wealth creation (3-5 years)
4. FRANKLIN INDIA HIGH GROWTH COMPANIES PLAN-DIRECT PLAN-1000/- for more than 5 years investment horizon.
Pls check from your point of view & also inform me, how much MF Overlapping available in above fund.
Once again thanks, have nice day !!!!!!.
Dear Jayesh,
Your MF portfolio looks fine.
Kindly read: MF portfolio overlap analysis tools.
Dear Sreekant,
I want to invest 3,000/- per month through SIP in small & midcap fund catagory for 30 years for my Retirement planning , i have been observing below 3 funds in this catagory.
1. DSP BLACK ROCK MICRO CAP FUND
2.FRANKLIN INDIA SMALLER COMPANY FUND
3.MIRAE ASSET EMERGING BLUECHIP FUND
I m so much confuse to select best funds from above list which will provide me good return with low risk.
Pls suggest me.
Thanks.
Dear Rajesh,
Suggest you to go through below articles, can be useful to you;
How to select the right fund based on Risk ratios?
MF Portfolio overlap analysis tools.
Best Equity funds 2016.
Dear sreekanth,
I have read your article which is wonderful and helpful for everyone.
I have decided to invest in DSP BALCK ROCK MICRO CAP FUND but worry about it’s risk measers little bit high compare to Franklin smaller co.fund.
Pls suggest which would be best option to live tention free for long term investment as mentioned above.
Dear Rajesh,
Kindly go through this article : How to select the right fund based on Risk ratios?
Hi Sree,
Hope you had a good weekend !!
I just want to be doubly sure before making a lump sum investment in
1) HDFC Balanced Fund. ( minimum 5 years ) = 2 Lakhs
And
2) Birla Sunlife MIP 25. (Minimum 3 years) = 3 Lakhs
In the current market what would be the best option.
– in one go
– space out the amount in 4 instalments of 50k per week.
– STP
– or anything else you would advise.
Thanks for always being helpful.
Kindest regards.
Dear Ksam,
Weekly installmennts may not really serve the purpose if you would like to avg it out (NAV).
You may consider monthly lump sum installments or may be when markets falls on any given day.
MIP – lump sum should not be an issue.
Balanced fund – As suggested above or STP. (Ex – HDFC Liquid fund to HDFC Balanced fund)
Dear Sir, I am holding Kotak MF select focus fund Equity (G) since June 2014. Will it be right to redeem it now?
When to redeeem a MF 9 in general) market up or down ? please advice
Dear Archana ..The right time to redeem should be mostly based on your Financial goal or objective.
Dear Sreekant,
I want to invest in MF worth Rs.1500/- per month in Balance Fund for 5 to 7 years, Pls suggest me which fund would provide best return?
HDFC BALANCE FUND OR FRANKLIN INDIA BALANCE FUND.
Dear Brijesh ..Kindly go through the article.
Hi Sree,
I am having Home loan from HDFC bank for 20 years whose EMI amt is 12,000/k per month. I will have to pay 28,80,000 (12,000* 240) till end the loan while loan sanctioned to me 12 Lakhs.
Can you suggest me which MF should i obtain (through SIP) with which amt so that i can complete the loan within 10 years.?
Dear Jigar,
Have you allocated your savings for other priority goals like retirement plan etc.,?
Kindly share your financial goals.
Dear Sree,
Currently my age is 35 years, since i m single hence i have not decided any retirement planing yet.
my main target is to close my loan very soon & want to save 10 Lakhs amt till the age of 55 years then i will think about my financial planning.
there are 2 mutual funds running in my portpolio.
1.Birla Sun Life Manufacturing Equity Fund-REGULAR Growth-1000/- per month
2.HDFC Equity Fund – Growth-500/- month.
I m earning 25k per month.
Pls suggest for best fund & advice for retirement.
Dear Jigar,
Whether single or married, the moment an individual starts earning, HAS to plan for his/her retirement.
Kindly read: The 6 most common personal financial mistakes..
Kindly note that it is not prudent to think about your FP at the age of 55.
Read: Retirement planning goal & calculator.
Hi Sri,
I want to invest some lump sum amount. Is it ok for invest 3 years in HDFC balanced fund?
Dear karthikeyan ..a bit risky option.
Hi Sri,
I am invested in HDFC Prudence Fund from Past 5 Years in SIP mode. I want to switch to HDFC Balance Fund. Is it advisable? Please suggest.
Dear Akhil ..It is a decent fund. If you have to switch then you have to submit the Switch form to AMC. Switch is treated as normal redemption. So watch out for tax consequences (if any).
Can you share the best Mutual Fund in Franklin Templeton – through SIP route ?
Dear Atidevin ..May I know your investment objective & horizon??
Shreekanth , i am regularly read your newsletter on my email, its really help me to increase my investment knowledge. Thanx for valuable knowledge.
I am employee if PSU, i want to invest in tax saving mutual fund , i required 48000 rs invest to save my tax ,which are best option for it.please suggest me.
Dear Hitesh,
Kindly read:
List of income tax deductions.
List of best investment options.
Best Tax saving mutual funds.
Tax Treatment of various financial investments.
Thank you for following my blog.
Dear sir
this is not a comment but a question.there is no provision in income tax return form to show tax free retirement benefits( contributory provident fund final payout,leave encashment and gratuity) Should they be shown or not? If yes,where?
Dear Ravi..You may show them in Exempt Income schedule (EI) in ITR.
Hi Sreekanth,
Superb blog. Very helpful and provides incredible and clear insight into investing.
My wife and I are looking for long term SIP equity funds for retirement and children’s education and marriage. Our investment horizons are: 1) 18 years for the first investment type (education) and 2) 25 to 30 years for the second type (marriage).
Could you please suggest some funds that you feel would be apt for this. I would not mind making a bouquet in each one.
Many thanks in advance.
Regards,
Das
Dear Mr Das,
You may have same funds for both the goals as they are long-term ones (>10 years). However, you may consider creating two separate portfolios with different SIPs to achieve the desired Goal amounts (corpus).
Suggest you to kindly download and use the calculators available in the below articles and calculate the required amount of savings (approx) to reach goal amount.
Read:
Retirement Goal planning calculator.
Kid’s education goal planning calculator.
List of articles on key aspects of Personal Financial planning.
How to create a solid Investment plan?
You may revert to me once you review your goal requirements.
Thanks Sreekanth.
Will do so and get back to you.
Regards,
Das
Dear Mr. Sreekanth,
I have retired (58 yrs.) from a private organisation and I will be getting around 30 lakhs. Since bank interest are already very low and it will go further down I request you to suggest some good investment avenue where I can get some decent return and safety of capital. I will be requiring at least Rs.10,000- p.m. to carry on my monthly expenses and the rest can be invested for 5 years time.
Thanks and regards
H. R. Krishnan
Dear KRISHNAN,
You may consider Post office MIS scheme (Rs 9 Lakhs can give monthly income of Rs 5850).
Read: Small savings schemes interest rates guidelines.
For the remaining balance you may book FD or consider a highly rated Company FD.
The remaining portion of corpus can be invested in MIP (growth option) + in a Balanced fund for say next 5 years or so.
Kindly read:
List of best investment options.
Best Balanced funds.
Best MIP funds.
Dear Mr. Sreekanth,
Thanks for your reply. I already have investments in MIS and Bank/Company FDS. Since the interest from these investments are not sufficient, I request you to suggest some mutual funds where I can get better returns.
Regards
Ramakrishnan
Dear KRISHNAN..As suggested you may consider HDFC balanced fund / tata balanced fund.
Hi sreekanth
Can u suggest me how to switch out from mutual fund from fund house website? How to switch from axis long term equity to Franklin tax shield from axis web site?
Dear Arul..Kindly note that it is not possible to do so.
You may read this article: MF Utility online platform.
Dear Sreekanth,
Greetings and good wishes.
I have an investment of around Rs. 1.5 lakhs (invested through SIPs) in Birla Sun Life Dynamic Bond Fund – Retail Plan (G). However, I observed that this fund is seriously underperforming. Hence, I have paused the SIPs from this month.
Please suggest whether I should continue to hold this fund or is it better to switch to some other fund; suggest a suitable alternate fund (s) to switch to.
Regards,
Sybecha
Dear Subecha..May I know the reason (investment objective) for investing in this fund? What is your time-horizon?
Investment horizon is 5-7 years. I propose to utilize the gains for my son’s higher education commencing 2022 onwards.
Regards
Dear Subecha..You may switch to and can also make fresh investments in a balanced fund.
Dear Reddy,
I am very much happy to visit your website… Here are very useful things, i just really enjoyed to read.. Thank u very much.. Intimate me, if u get any chance to visit tamilnadu. Great Day…
Dear Manjunathan..Glad that you liked reading our articles. Keep visiting and kindly share the articles with your friends 🙂
Hi Sri,
I am 25 years old. I am earning 57k per month.I went through your various post. After which, I have decided to invest in below mutual funds. My short term goal – 1-2 years for marriage, Medium term 4 years for home and long term goal 10-15 years for child education. Could you please suggest if any of the below funds needs to be changed. I have to invest 5k per month. Also, I am confused between couple of mutual funds. Please help me out here
HDFC Balanced Fund/TATA Balanced fund
Axis Bank long term
UTI Midcap Fund /Franklin India Samller companies fund/BNP Paribas Midcap Fund/Franklin India Prima Fund – Direct Plan
Dear Shivam,
For a short term goal, kindly do not invest in equity oriented schemes.
Medium term – HDFC Balanced fund.
Long term goal – Axis LTE (if tax saving is also your requirement) + Franklin Smaller companies fund can be considered.
Can you please suggest something for short term goal as well. One of my target is tax savings also, so is there any other scheme for that as well apart from AXIS LTE (I will be investing in this)
Thank you for prompt reply.
Dear Shivam,
For short-term goals, you may consider Short-Term debt fund or Arbitrage Funds or FDs.
Read: List of best investment options.
Axis LTE is a good ELSS fund. You can make additional investments in the same fund.
Thanks for the clarification. Most of the schemen have the option of choosing either growth or dividend. I think growth is one which I should choose keeping long/medium term view. Can you please share our views in this
Dear Shivam..Yes, kindly opt for GROWTH.
Dear Sree,
I want to invest 5000 pm from my mom and looking for a conservative portfolio . Can you guide me on the same. Time horizon is 4-5 years.
Thanking in advance.
Dear Akhil,
You may consider investing in Balanced fund or in an aggressive MIP fund.
Read: Best MIP funds.
hi nice one i want to know about other mutual funds. plz gv an idea.
Dear shayan,
Kindly read:
Best Equity funds.
List of best investment options.
Dear Sree,
You have highlighted & discussed only equity oriented balance funds. I expect your commentary on debt oriented
balanced funds. As I am interested in the same also if possible what will be tax implication respect of this debt oriented
balanced funds?
I am intending to go for Reliance reg savings balance funds Direct -qrtly dividend option plan ? how is it?
Thanks
Dear shrikant,
Kindly read:
MF Taxation rules
MIP MF Schemes.
Types of Debt funds.
Why would you like to opt for Dividend option? May I know your investment horizon & objective?