The capital markets, globally, have been quite volatile during the current calendar year and are likely to remain so in coming times on account of various factors such as US Fed rate hikes, volatile oil prices, intensifying trade conflicts and sanctions.
Though the Indian financial markets have also been affected by these factors, the volatility during the current Fiscal (up to mid December) is among the lowest compared to some major developed and emerging markets.
Thanks to the aggressive marketing campaigns by the Mutual fund regulator(s), Fund houses and intermediaries, the fund flows into Mutual Fund Schemes have been growing positively, over the last few years.
2018 has been an eventful year for Mutual fund industry. SEBI has implemented quite a few new regulations. The important one being, re-classification or re-categorization of Mutual Funds.
Every year, I publish a review of best and top rated mutual fund schemes that can be considered for long-term wealth creation.
You may kindly go through my previous reviews here : Best Mutual Funds for 2017 & Top Mutual Fund Schemes for 2018
In this post, let’s analyze the best & top mutual fund schemes to invest in 2019-20. Which are the Top rated Mutual Funds to invest for long term in 2019? Best SIP Equity Funds for 2019. Let’s discuss….
Best & Top Mutual Fund Schemes for 2019
I have considered both, the past performance and risk ratios of mutual funds to shortlist top rated Equity mutual fund schemes.
Below image gives you an idea on the parameters (to know, how consistent the funds have been..?) that one can consider while shortlisting right mutual fund schemes.
The best & top Mutual Fund Schemes to invest in India for 2019-20 under various Equity Fund Categories are as below;
- ICICI Prudential Bluechip Fund (Large-cap)
- Aditya Birla Sun Life Frontline Equity Fund (Large-cap)
- SBI Bluechip Fund (Large-cap)
- Franklin India Equity Fund (Diversified)
- Mirae Asset India Equity Fund (Diversified)
- Aditya Birla Sun Life Equity Fund (Diversified)
- Franklin India Prima Fund (Mid-cap)
- HDFC Mid-cap Opportunities Fund (Mid-cap)
- Franklin Smaller Companies Fund (Small-cap)
- Franklin India Taxshield Fund (ELSS – Tax Saving)
- Axis Long Term Equity Fund (ELSS – Tax Saving)
- Aditya Birla Sun Life Tax Relief ’96 Fund (ELSS – Tax Saving)
Let’s analyse category-wise best equity funds;
Best Performing Large Cap Mutual Fund Schemes 2019
Based on the past performance, I have short-listed below large-cap funds for the review;
The various important risk ratios of these Large cap funds are as below;
The final list of best Large Cap Equity Funds as per my analysis are; ICICI Prudential Bluechip Fund, Aditya Birla Sun Life Frontline Equity Fund & SBI Bluechip Fund.
- Past Returns : The returns generated on these three funds in the last 10 years have been in the range of 17 to 19%.
- Category Returns & Risk : The funds ICICI Pru Bluechip & Birla Frontline Equity have relatively ‘LOWER’ risk profile when compared to its category peers.
- Portfolio Allocation : Post the SEBI reclassification, these funds have tweaked their mandate to maintain a minimum 80 per cent exposure to the top 100 stocks by market cap.
- You may also consider other large-cap funds like Franklin Bluechip Fund & Index fund like UTI Nifty Fund.
Best Multi-cap Mutual Fund Schemes 2019
Based on the past performance, I have short-listed below Multi-cap funds for the review;
The various important risk ratios of these Diversified Equity funds are as below;
The final list of best Multi-Cap Equity Funds as per my analysis are; Franklin India Equity Fund, Mirae Asset India Equity Fund & Aditya Birla Equity Fund.
- Past Returns : The returns generated by these three funds in the last 10 years have been in the range of 18 to 22%. Mirae & Birla Equity Funds can be relatively considered as ‘high risk- high return’ ones.
- Category Returns & Risk : The Mirae Fund returns vs category returns are on the ‘higher’ side, whereas, the fund risk vs category risk parameter is ‘average’.
- Portfolio Allocation : The Mirae Fund currently has an allocation of 87% of its corpus in large-cap stocks. Birla Equity Fund has an allocation of around 30% of its corpus in Mid-cap stocks.
- You may keep an eye on Kotak Standard Multi-cap fund as well.
Latest update (08-Apr-2019) : Mirae India Equity fund has now become a Large-cap oriented Fund and has been rename as Mirae Large Cap Fund.
Best Mid/Small Cap Mutual Fund Schemes 2019
Based on the past performance, I have short-listed below Mid-cap for the review;
The various important risk ratios of the above Mid-cap oriented Equity funds are as below;
The final list of best Mid-cap Funds as per my analysis are; Franklin India Prima Fund, HDFC Mid-cap Opportunities Fund & Franklin Smaller Companies Fund (Small-cap Fund).
- Past Returns : The returns generated by these three funds in the last 3 years have been around just 10%. Most of the popular mid/small cap funds have seen deep correction in this Calender year. But, the returns generated in the last 5 to 10 years have been exceptional.
- Category Returns & Risk : Franklin Prima and Smaller Companies fund have relatively lower risk profile than their peers and have generated decent returns. Franklin Prima Fund & HDFC Mid-cap funds have an allocation of around 77% & 84% of their corpuses to mid-cap stocks.
- Portfolio Allocation & Analysis :
- Franklin Prima fund has consistently outpaced its benchmark for the last eight years. While it hasn’t outpaced its peers on a year on year basis, it has been a big wealth creator over four market cycles, with a 21% CAGR since launch. Mid-caps have always made up 65 to 70% of assets. This is higher than the category allocation towards mid-caps.
- While many mid-cap funds have struggled to beat their benchmarks in the last one year, HDFC Mid-cap fund has held up better. However, popularity has resulted in a rapid burgeoning of the fund’s size, from under Rs 10,000 crore in early 2016 to over Rs 19,000 crore now. This makes it by far the largest fund in this category.
- A focus on hard core fundamentals makes Franklin India Smaller Companies Fund a good pick for investors to avoid the big mistakes of small-cap investing. For the last 10 years and over two whole market cycles, the fund has demonstrated a consistent ability to deliver benchmark-beating
- You may keep an eye on the performance of L&T Mid cap fund as well.
Best ELSS Tax Saving Mutual Funds to invest in 2019
Based on the past performance, I have short-listed below ELSS funds for the review;
The various important risk ratios of the above ELSS Tax Saving funds are as below;

The final list of best ELSS Funds as per my analysis are; Franklin Taxshield, Axis Long Term Equity Fund & Aditya Birla Tax Relief ’96 Fund.
- Past Returns : The returns generated by these Franklin Tax shield & Birla Tax relief funds in the last 10 years have been better than some of the best Mid-cap funds.
- Category Returns & Risk : Franklin Taxshield has been very consistent with its performance. Axis LTE Fund has a very good ‘risk – return’ profile.
- Portfolio Allocation & Analysis :
- Franklin Taxshield has been maintaining a very high allocation to large-cap stocks across market phases. The fund’s returns in the last one year show a slowdown relative to the category and benchmark. The fund’s year-to-year returns don’t always beat its more aggressive peers, but its performance adds up to very handsome returns over the long term. You may consider this fund, if you like a less bumpy ride in choppy markets.
- Axis LTE fund, being a later entrant, managed to skip the bear market of 2008 and thus hasn’t really been tested in a severe market meltdown. Its performance in 2011, however, showed an ability to contain losses in a falling market. It has delivered convincing out-performance of both its benchmark and peers in most bull years – be it 2010, 2013 or 2014.
- Birla Tax Relief fund has been consistently overweight on mid-caps relative to the category.
- You may keep an eye on DSP Tax Saver Fund, Quantum Tax Savings Fund & Invesco India Tax Plan Fund.
Best Hyrbid Equity (Balanced) Funds 2019
Based on the past performance, I have short-listed below Hybrid Aggressive Equity funds for the review;

The important risk ratios of the above Hybrid Equity funds are as below;

The final list of best Equity Hybrid (Aggressive) as per my analysis are; HDFC Hybrid Equity Fund, ICICI Pru Equity & Debt Fund & Aditya Birla Equity Hybrid ’95 Fund.
- Portfolio Allocation & Analysis :
- ICICI Debt & Equity Fund has been performing well in the last two years. The fund invests a minimum of 65%t in equity. This allocation can go up to 80% depending on market conditions.
- Aditya Birla Fund’s under-performance within its category and peers in the last one year has seen the margin of out-performance narrow over three and five years, too. But, it is a reliable fund that has proved itself across three market cycles.
My Mutual Fund Portfolio
I have my investments in three funds – HDFC Hybrid Equity Fund, Axis LTE Fund (Tax saving) & Franklin Smaller Companies Fund. My spouse invests in Aditya Birla Tax Relief ’96 Fund for tax saving & wealth accumulation purposes.
Related Article : ‘My Latest Mutual Fund Portfolio (as in June 2019)‘
Some Important Points to ponder about Mutual Fund Investments :
- Identify your Goals : Majority of us identify the products first and then try to shortlist best investment avenues. An investor has to first identify his/her financial goals and then try to short-list best available options. This is applicable for mutual fund investments also.
- Is it good to invest in multiple Schemes from same Fund category? – Kindly do not invest in too many funds especially within the same fund category. Over-diversification is not beneficial and may lead to high portfolio overlap.
- Consistency is the key parameter : A ‘good mutual fund scheme’ is the one that consistently manages to outperform its category returns and also it’s Benchmark’s. It is prudent to be with the consistent performers for long-term goals instead of churning your portfolio based on Star ratings or recent performances of the funds.
- I am 60 years old, can I invest in Equity Funds? – Invest in Equity funds based on your future goals & financial resources and not based on your current age. For example – If you are a retiree (say 65 years) and have regular income which is more than your monthly living expenses, you can surely invest a portion of your surplus income in hybrid or equity oriented mutual funds.
- Importance of Portfolio Performance – If one of the schemes in your MF portfolio is not performing well, do not immediately churn your portfolio. Also, do not churn your portfolio very often based on fund star ratings. The negative consequences of regularly churning the portfolio are undeniable. Do track that scheme’s performance for sometime (say 1 or 2 years) before deciding to drop it from your portfolio. Sometimes, it is prudent to analyze the overall portfolio performance than to get too worried about individual fund’s performance. Also, have realistic return expectation from your investments.
- Shall I invest in Focused/Value oriented MF Schemes? – If you have created a core portfolio with say a Large cap fund, mid-cap fund (or index based funds) & Hybrid fund, you may invest a portion of your investible surplus in focused, value oriented, Funds of funds or Theme based funds. Ex : Quantum Long Term Equity Fund, Parag Parikh Long Term Value Fund, ICICI Value Discovery, Franklin India Focused Equity Fund etc.,
- Shall I pick Index Funds? – If you are not comfortable investing in actively managed Funds, you can consider investing in Index based Funds. Ex : UTI Nifty 50 Fund (Large-cap), UTI Next Nifty 50 Index Fund (Large + Midcap) etc., It makes sense, to add one Hybrid Equity Fund to your Index based portfolio, to manage the volatility.
- Do I need to invest in Multi-cap Funds? – If you have a large-cap fund and a mid-cap oriented fund, I believe that its OK not to have a separate multi-cap fund in your portfolio. You can consider adding a Hybrid Fund to your portfolio. In case, one of your investment objectives is ‘tax-saving’ then can consider investing in an ELSS Fund (this can be treated as a multi-cap style fund).
- SIP or Lump sum? – Systematic Investment Plan (SIP) inculcates financial discipline. However, it is not a fair comparison to equate SIPs with investing in a lump sum. Both have their own pros and cons. It is better to have SIPs in place and at the same time, you can make additional investments (lump sum) when you believe that markets are down.
- Suggest you not to remain invested in equity oriented funds till the goal target year. You may consider redeeming MF units by starting SWP (Systematic Withdrawal Plan)may be 2 to 3 years before the goal year. You can re-invest this amount in safe investment avenues. You may also re-balance your portfolio based on your Asset-allocation strategy (Equity : Debt allocation).
- DIY / Advisor – If you are a DIY investor, pick Growth and Direct plans. In case, you are not comfortable investing in Mutual funds on your own or do not have the required time, do engage with a fee-only Financial planner.
I strongly believe that the first half of the calendar year 2019, can be a very volatile one for the Indian Equity markets. Keep your ‘cash’ ready to invest in Stocks / Mutual funds for long-term financial goals.
Kindly note that the above list of best & top mutual fund schemes is not an exhaustive one. Mutual funds’ returns are not guaranteed, their values/returns change frequently and past performance may not be repeated. MFs are subject to various market risks.
Continue reading :
- How to create a solid Investment Plan?
- List of best articles on Financial Planning
- When should you sell your Mutual Funds?
- What is Portfolio Tracking & Why should you do it?
- Mutual Funds Vs Unit Linked Insurance plans
- Top 15 Best Mutual Funds to invest in 2020 & beyond
(Featured Image courtesy of Stuart Miles at FreeDigitalPhotos.net) (Post first published on 26- December -2018).
(Data Source & references : Valueresearchonline, Moneycontrol, Morningstar, Freefincal & The Economictimes)
Hi Sree,
I started investing in MF after reading your blogs some 4-5 years back. My current portfolio is as under which i have not seen from last 2 years and feel it is the right time to churn / reshuffle.
1. Axis ELSS: SIP of 3000 per month
2. HDFC balanced : SIP of 2000 pm. it was for 3 years. Stopped as of may’19. Should i restartin balanced or HDFC hybrid euiqty?
3. Franklin Prima; SIP of rs. 2000 pm
4. ICICI value discovery: SIP of rs. 3000 pm
5. Franklin smaller companies small cap: SIP of 2000 pm. i had stopped since 4-5 months. Should i restart?
6. DSP blackrock small cap: SIP of 2000 stopped since 4-5 months
7. 50K in icici gilt fund: since 4-5 years
Most of my portfolio is long term, for my son’s education and our retirement planning. He is 7 years as of now. I would like to add some risk to my profile so kindly suggest good aggressive funds for long term like 5-7-10 years. I can invest 20-25k per month to build a good portfolio in next 7-10 years. Kindly suggest? 3 years back I took a term insurance of 1 CR from icici prudential and healthplan from religare. have kept some funds in emergency fund like 3-4 months salary and have some FDs.
Kindly help me modify my portfolio as i am too confused as of now. Some FDs have matured so should i reinvest in FDs or liquid funds or?? i usually do a fd for 1-1.5 years. Also, Want to add large/ multicap to my portfolio.
Thanks & Regards,
asma kapoor
Dear Asma,
Thank you for being following my blog posts!
May I know the reason(s) for stopping (pausing) three of your SIPs (in 2, 5 and 6)??
Do you save/invest in any other fixed income/debt category avenues? (like EPF/PPF etc?) what is your Asset allocation ratio between Equity Vs Debt??
Hi Sree,
For 5 and 6 the bank RM suggested as the market was down so i should stop the SIP for sometime. For 2, I had chosen a auto debit for a 3 year period for HDFC balanced. I am totally confused about my portfolio at this point in time and would need an expert help. When i started reading your blogs it was some 4 years back. But don;t know how to relook at my portfolio, so seeking expert advice here to remain invested in the right direction.
I keep some amount in FD’s. Last year was planning to put some amount in PPF but did not start. Asset allocation would be around 40:60 in equity and debt.
Kindly advice as I just want to continue investing in decent funds, considering a time horizon of 5-8+ years. Sharing my investments again.
1. Axis ELSS: SIP of 3000 per month
2. HDFC balanced : SIP of 2000 pm. it was for 3 years. Stopped as of may’19. Should i restartin balanced or HDFC hybrid euiqty?
3. Franklin Prima; SIP of rs. 2000 pm
4. ICICI value discovery: SIP of rs. 3000 pm
5. Franklin smaller companies small cap: SIP of 2000 pm. i had stopped since 4-5 months. Should i restart?
6. DSP blackrock small cap: SIP of 2000 stopped since 4-5 months
7. 50K in icici gilt fund: since 4-5 years
Thanks & Regards,
asma
Dear Asma,
As you are investing for long-term goals, suggest you not to stop/pause your SIP investment plan. Continue investing in your chosen set of Funds irrespective of market conditions.
1, 2, 3 – Funds are fine. Make these ones as part of your core portfolio.
4 – You may stop the future SIPs, hold existing units and divert the future SIP amount to Fund – 2.
Thanks a lot Sree.
I usually do not shuffle my portfolio but it had been 3-4 years and some of the funds like Icici value discovery were not going too good. So in case i want to increase my SIP amount to 5000 per month, i should top up the existing funds? Can you suggest to add any large cap/ multi cap funds? i have some 4-5 lakhs from matured FDs. Should i simply put it in liquid fund or NSC/PPF is a better option. Any good debt fund where i can put money in bulk?
Thanks again!
Dear Asma,
Appreciate your long-term view!
I too believe that time has come to ignore ICICI Value discovery fund.
If your 80c bracket is not yet full, can top up Axis LTE fund and also to HDFC Hybrid Fund.
Franklin Prima Fund is a very decent mid cap fund, can top up a little more SIP amount for your very long term goal(s).
Lump-sum amount (Rs 5 lakhs) : May I know your investment objective and time-frame??
Dear sree,
My 80c is already covered with axis elss, PF and my son’s school tuition fee 🙂 . Now am looking towards pure wealth creation in 7-10 years.
The money kept in bulk through FDs etc. is for his education and our retirement planning so you can say would not need for next 10-12 years. this is apart from my emergency fund. I usually save in these kind of deposits in iwish, RDs etc. and then do a FD for a year n so. Now as some FDs have matured so i don’t know where should i put the money.
Thanks a ton!
Dear Asma,
Axis LTE, Franklin Prima and HDFC Hybrid Agg Funds – You can increase SIP amounts. Can have higher allocation to HDFC Fund.
ICICI Value – Can stop/switch.
Small Cap Funds – Continue.
You may add one large cap index fund – Ex – UTI Nifty index fund to your portfolio.
May I know the Debt side of your portfolio? Where do you save? (EPF, PPF ??)
Dear Sree,
Thanks again. So, I am planning for the below changes:
1. Axis ELSS: 7000/m
2. Franklin Prima: 5000/m
3. HDFC hybrid Equity: 7000/m
4. UTI Nifty index large Cap: 5000/m
Small Caps: as it is currently on hold do you suggest to restart DSP blackrock small cap and reliance small companies with SIp of 2000 each?
What about 50,000 in icici gilt fund? it’s since 4-5 years.
Debt Side:= (Major concern as money lying in bulk but not able to decide where to put)
I have my company’s EPF and i have 4-5 FDs of around 1 lakh each which as of now have matured and am re-planning to invest (either in FDs or liquid funds). Have an emergency fund of 5-6 lakhs.
Can you suggest/ guide to put 4-5 lakhs in something that can reap benefits in the future. My bank RM tried selling me a child plan from MAX but i was not convinced as i always keep insurance and investments separate. I might be wrong but Is it advisable to take a child plan?
Last year i thought of starting PPF but looking at the long horizon i did not start.
regards,
asma
Should i put lumpsum in Axis LTE or some liquid like Franklin India Ultra Short Bond Fund Super Institutional Direct, for a year? what are the pros and Cons?
Dear Asma,
The mentioned list looks good.
I believe, you may PAUSE the future SIPs in Small-cap Funds.
Gilt mutual funds are considered ideal for long-term debt mutual fund investors with an aggressive risk profile. It would be beneficial to invest in Gilt funds when the interest rates are falling (in the current scenario).
Have you given a thought to invest in VPF (Voluntary PF) through your employer?
If you have adequate life cover through a Term plan, kindly ignore buying a Child-plan.
May I know your expected number of years to get retired?
Related article : List of all Popular Investment Options in India – Features & Snapshot
Thanks again for your valuable inputs. I have a term plan of 1 CR which my RM said should be around 2.2 CR.
No never thought of VPF. Heard of corporate NPS but didn’t seem too gud. I am planning to retire around 50-52, like another 15 years you can say 🙂
Dear Asma,
If you believe that your are ‘under insured’, kindly enhance your life cover..
Related article : How much life cover do you require (Online Calculator)?
VPF is a good option. You may check about it.
PPF is also a good option considering your profile 🙂
Hi Sree,
After much research i have come up with the below investment plan:
1. Franklin india Ultra short Bond: Rs 1.5 Lakh lumpsum
2. SBI Magnum Medium Duration: Rs. 1.5 lakh lumpsum
Both of the above for a year or so (Better than keeping in FD)
3. Axis ELSS: Rs.5000/m
4. Franklin Prima: Rs.3000/m
5. Mirae asset Large cap/ Mirae Asset emerging bluechip: Rs.4000/m
6. ICICI Pru balanced advantage: Rs. 4000/m
7. HDFC top 100: Rs.4000/m
8. Axis Bluechip: Rs.5000/m
Stopping ICICI value discovery.
Keeping 2 lakhs in Franklin India Liquid – Super institutional plan.
1 Lakh NSC for 5 years – for debt
Kindly suggest.
Thanks & Regards,
Asma
Dear Asma,
Hope you are aware of the risks associated with Debt funds as well.
Ultra ST fund is ok.
But, medium duration fund can be a risky one if horizon is around 1 year.
Equity funds : You can go with either 5 or 8.
Ok so kindly suggest another fund to keep lumpsum for a year or 2. Thanks!
Dear Asma,
I strongly believe that for a horizon of 1-2 years, bank FDs make sense.
The situation with Fixed income bonds/debentures is not that great.
For ex : Though the performance of Franklin Ultra fund has been good, if you see its portfolio, it has good exposure to Telecom companies bonds/debentures and the sector as such is facing lot of regulatory challenges..
Understood. Just for my knowledge, are FDs like bajaj finserv, PNB housing, Jana Small Finance Bank etc. safe to put money for like 2-3 years. I keep getting mails with attractive interest rates, so was just wondering.
Thanks 🙂
Dear Asma,
You may kindly go through my article – Best Company Fixed Deposits 2019-20 | Should you Invest?
Hi Sree,
Aditya birla frontline equity large cap is not performing almost from a year. Are we going to see the same in your suggested fund this time? BTW when are you going to post the same?
Regards,
Nicolas
I think all funds for Birla have not performed this year but would be early to exclude birla frontline equity. Rest Sreekanth will advice.
Dear Nicolas,
It is one of the better Large cap funds that we have.
But do note that actively managed Large cap funds may find it very difficult to outperform their benchmark indices.
As of now, you may cotinue with the fund. Alternate option is, can start looking at large cap index funds ex : UTI Nifty Index Fund
Thanks Sree … Just a query … when you say “actively managed Large cap funds may find it very difficult to outperform their benchmark indices”
– Is it due to the new rule that they have to invest 80% in top 100 companies?
– I think for Hybrid funds there is no such rule. So actively managed large cap funds might not be able to beat hybrid funds in term of returns (though i understand no one can predict future).
Dear Nicolas,
1 – Yes. They cant invest in other ‘cap’ funds as they used to to generate some EXTRA returns than a large cap index.
2 – Probably yes.
Personally, I believe that Hybrid funds can generate decent returns can be as good as a multi-cap fund with slightly lower risk profile.
Thank you Sreekanth …. Appreciate you help. So in nutshell .. i think will wait for 3-4 quarters and then will decide to either move to balanced or multicap ….
Dear Nicolas,
Any reason to wait?
Have you invested in any other MF Schemes?
Dear Sir,
I recently started with Mirae asset large cap & ICICI Bluechip. My wife had SIP going on in Aditya birla frontline. So you suggest i will withdraw now itself and put in hybrid/multicap?
My investment horizon is 10 yrs.
SIP details are as below
Me:
SBI Hybrid – 5 K
Mirae asset largecap – 2.5 K
ICICI large cap – 2.5 k
Axis ELSS – 5 K
SBI Multicap – 9K
Kotak Emg mid – 6k
L&T emg small – 5 K
Wife:
HDFC Hybrid: – 5K
Birla frontline – 5K
Kotal Multicap – 5K
Birla ’96 Tax – 5K
L&T Midcap – 5K
HDFC Small – 5K’
other than that i use 4.5 L per year ppf for my kid, me & wife which is my debt portion other than EPF
So question was about largecaps: shall i stop now itself and place in hybrid as i believe my mid and small are at 30% of whole equity (not considering debt) or can i take little risk and increment the amount in multicap itself
Dear Nicolas,
I believe there is no need to have two large cap funds in ones portfolio. If you would like to stick to large-cap then switch to a large-cap index fund.
Increase allocation to multi-cap and hybrid from Mid/small cap.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* What are Mutual Fund Upside / Downside Capture Ratios? | How to use them in MF Performance Analysis?
Thanks once again Sree ….
– I will follow the same for large cap advise….
– Since my target is 10 yrs away so put apx 30% in small/mid cap. Though i understand there is no thumb rule for the same but what’s your advise how much % should be in mid/small.
Dear Nicolas,
Yes, there is no thumb rule as such.
But, one can allocate higher % to multi-cap fund(s) as anyways they will invest/allocate the corpus among large/mid cap stocks as per the prevailing market conditions/valuations.
Multicap / ELSS Funds
Hybrid
Large cap
Mid & Small cap.. my preference order for allotment.
Hello Sreekanth,
I have SIP of 5k in Axis long term equity fund for tax saving, 1k in ICICI value discovery fund, and 3k in reliance tax saver fund (currently stopped reliance coz it was giving negative returns and consistently below the category benchmark).
Can you suggest me something in multi cap fund – investment horizon is 10-15 years – or any other fund?
Also do you think I should continue the icici value discovery SIP?
Dear Paul,
Axis LTE is fine.
The challenge with ‘Value focused’ funds is they can test the patience of investors. You may hold on it for some more time (ICICI Value..)
Multi-cap : You may consider Birla Equity, Franklin Equity or SBI Multi-cap fund etc.,
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* What are Mutual Fund Upside / Downside Capture Ratios? | How to use them in MF Performance Analysis?
Thank you Sreekanth. That was the quickest response!!
I will continue the SIP in icici value…MF for some more time
Can you give me the full name of Birla equity and Franklin equity that u suggested please? Also what do you think of Motilal Oswal multicap 35 fund and kotak multicap fund?
Also on reliance tax saver I had done the SIP for almost 2 years. Do you think it was the right decision in stopping it?
Thanks again!!
Dear Paul,
Reliance Tax saver has a very high Standard deviation, its a high risk – high return kinda fund..
Kotak Multi-cap is a good choice as well.
Aditya Birla Sun Life Equity Fund.
Hi,
My query is that Kotak standard multicap AUM is very large now nearly 24K CR. Can we still invest in it or please suggest a multicap fund for 20 years goal??
Dear Pranav,
I believe that in an actively managed multi-cap fund, the actions of the fund management is the primary performance driver.
Large AUM may not be a problem but a large increase in AUM in a short time can be a problem for the fund manager(s) to identify right investing opportunities.
You may have a look at Birla Equity Fund, Franklin Equity Fund or Parag Parikh LTE Fund etc.,
Kindly read :
* Does the size of a mutual fund affect its performance?
Thanks a lot.
Hi Shreekanth,
Need your help for the investment of my emergency fund:
total fund accumulated: Rs. 300000
Will keep around Rs. 40000 in saving account for ease of use
Started RD of Rs. 5000 for 12 months
How should I distribute Rs. 200000? across liquid/debt funds or other options.
I will try to hold it for as long as possible(By Grace of God…)
Thanks and Regards
Anil
Dear Anil,
You may kindly save it in two Liquid funds.
Ex : Parag Parikh Liquid, HDFC Liquid Fund, Birla Liquid , UTI Liquid Cash, Quantum liquid etc.,
But, do understand that Liquid funds are not 100% risk-free.
Thank you so much Sreekanth. You are always prompt in responding to our queries.
Thanks and Regards
Anil
Hello Sir,
I need one help. Suppose, there is 1 index fund which gives us 10% return in 10 years with an expense ratio of 0.10% and on the another side, there is actively manage mutual fund which gives us 13% in 10 years with an expense ratio of 1.10%.
Now, lets assume, our SIP amt is 1000 per month so how much exact amt, we will get in hands after 10 years?
Thanks!
Dear Rahul,
Kindly note that returns are calculated net of expenses from in NAV.
@10% – one can accumulate around Rs 2.04 lakh in 10 years.
@ 13% – Rs 2.44 lakh.
Hi Sreekanth,
I am following your blogs since long time for investment after 2019 election. Now after Modi 2.0 I want to start SIP. As per my analysis and to make investment less risky, I thought to invest in Multi cap instead of Small and Mid Cap funds. Below is my monthly SIP plan.
1. ICICI Prudential Bluechip fund (Large Cap) – Rs 2500
2. ICICI Prudential Equity & Debt fund (Hybrid) – Rs 2500
3. Kotak Standard Multicap fund (Multi Cap) – Rs 2500
4. Franklin India Focused Equity Fund (Multi Cap) – Rs 2500
Could you please suggest me if above funds are appropriate for better returns?
Guide me if any changes are required.
Thanks in advance.
Dear Prashant,
Have you already invested in any MF schemes? May I know your investment horizon?
Yes, but it was in lumpsum not in SIP mode.
Honestly speaking, their is no such time horizon, I am married and blessed with a daughter so just to save something for future I want to start SIP but one thing for sure that I am not going to withdraw this accumulation before 7-8 years.
Dear Prashant ,
You may share the existing MF Scheme names..
Related articles :
* Calculate how much you need to invest for your Kid’s Education
* List of Articles on the key Components of Personal Financial Planning
Below is my MF scheme name along with invested amount details:
Principal Hybrid Equity Direct-G -> 95,000
L&T Emerging Businesses Direct-G -> 55,000
Aditya Birla SL Tax Relief 96 Direct-G -> 7,000
Tata India Tax Savings Direct-G -> 7,000
Dear Prashant,
Kindly note that ELSS funds can be considered as Multi-cap funds as well.
You may consider either of the below two multicaps, in case, you would like to add one;
Kotak Standard Multicap fund (Multi Cap)
Franklin India Focused Equity Fund (Multi Cap)
Related article : Top 5 Best Aggressive Hybrid Equity Funds (Balanced Equity Mutual Funds)
Hello Sreekanth,
Good Morning !
Below are the funds (sip) invested in for long term goals i.e. 15 yrs (daughters marriage/retirement).
HDFC midcap oppurtunities fund: 8000/-
Franklin India Equity Fund : 5000/-
ICICI Pru Bluechip Fund : 4000/-
HDFC hybrid equity fund : 2000/-
ICICI Pru Val Discovery fund : 4000/-
Seek your advise on ICICI Pru Value Discovery Fund .Have been investing in this fund for close to 3 yrs .Fund performance has been dismal .Should one stay put for some more time or discontinue and invest in another fund.
Best Regards,
Roy
Dear Roy,
Focused or Value based funds may have slightly higher risk profile than regular Multi-cap funds.
You may stick to ICICI Value discover fund.
“If you look at the return graphs, notice that Value discovery is a lot more volatile in returns. If you are someone who likes steady returns even though a bit low, then Value discovery is not for you. Investing in this fund will require a long term commitment. Existing investors can continue to hold and watch for a little more….” (Source : freefincal.com)
Ok Sreekanth,point taken on volatility.Intention is long term .Will wait and keep track of the performance.
Appreciate your advice.
Have a nice day !
Best Regards,
Roy
Sir, my time horizen will be 10 – to 12 years.
May I requst to kindly advise your comments on the folliwng funds
Aditya Birla Frontline 7k
Frontline India Equity Find 7k
Frontline India smallar fund 10k
HDFC Hybrid Equity find 9k
ICICI Pro. Exports & other services 12k
ICICI value discovery funds 5k
Kotak Standard Multicap fund 5k
UTI Mid cap 5k
Axis Large tax Equity Find (ELSS) 10k
Total 70k
my wife portfolio
Mirac Asset Emerging Bluechip 5k
DSP Black Rock Tax saver 9k
ICICI value discovery fund 2k
Kotak Standard Multicap Fund 2k
ICICI prod Blue chip 10k
Total 28
Other Investment by way of PPF, FD etc.
Dear Mr Bhatt,
Most of the funds listed above are good ones.
Except, UTI mid-cap / ICICI Pro. Exports & other services (can have high risk profile).
Kindly check the % overlap among these funds and can try to trim down your portfolio a bit.
Related article : Mutual Fund Portfolio Overlap Comparison Tools
Thanks a lot for your expert comments. Request to kindly advise which one is overlapping and which is the best to enable to stop extra funds in overlapping fund.
Dear Mr Bhatt,
Kindly use the tools/portals suggested in the above link and revert with your analysis on Funds portfolio overlap %s.
My first impression is, your two portfolios look fine and the overlap %s can be on the lower side.
You may re-look at UTI mid cap fund. Can consider HDFC Mid-cap opp fund instead.
Hi Sreekanth. I think “Mirae Asset India Equity Fund (Diversified)” is changed their strategy now it seems. They are concentrating on large caps. Recently I have gone thru an article about this fund. Is it ok to invest in this for more than 7 yrs.
Dear Sivaram,
Mirae Asset India Equity Fund (Multi-cap) is now known as Mirae Asset Large Cap Fund. Yes, the objective of this fund has been changed.
I prefer not to pick a fund which changes its investment strategy for no real reason.
May I know the schemes that you have already invested in? Are you looking to add a large-cap fund to your MF portfolio?
Hi Sreekanth,
I currently invest in the following funds with 2 goals (my husband and my retirement and child’s education).All are long term goal (>12 years). Apart from this I invest in PF/PPF and have other term/health insurance for risk mitigation. Can you please evaluate/suggest your views.
My folio:
HDFC Hybrid Equity Fund Direct 1000
ICICI Pru Value Discovery 6500
ICICI Pru Blue Chip Equity 12000
UTI Equity Fund Direct Growth 3000
UTI Mid Cap Fund( Direct Growth) 3000
SBI Bluechip Fund (Direct Growth) 3000
Birla Sunlife Frontline Equity 7500
Franklin India India Equity 6000
Franklin India Smaller companies 2000
Mirae Asset India Equity Fund-Direct Plan – Growth-Growth 3000
Total : 47000
My husband folio:
HDFC Hybrid Equity Fund Direct 5000
ICICI Pru Value Discovery 8000
ICICI Pru Blue Chip Equity 8000
SBI Bluechip Fund (Direct Growth) 5000
Birla Sunlife Frontline Equity 8000
Mirae Asset India Equity Fund-Direct Plan – Growth-Growth 4000
HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth Option 3000
total : 41000
Kid folio:
HDFC Hybrid Equity Fund Direct 3000
ICICI Pru Value Discovery 10000
ICICI Pru Blue Chip Equity 12500
UTI Equity Fund Direct Growth 3000
Birla Sunlife Frontline Equity 8000
HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth Option 1000
Total : 37500
Hi,
Almost all the above mentioned MF schemes are good ones (except the UTI ones).
However, investing in too many funds may not be really beneficial, especially if they are from same fund category.
For ex (1st portfolio) :
You have ICICI Pru Blue Chip Equity , SBI Bluechip, Birla Sunlife Frontline Equity and Mirae Equity (now Mirae Large cap) are all Large-cap oriented funds.
The portfolios of these funds may overlap and the diversification in terms of multiple funds may not be really beneficial.
Kindly read :
* Mutual Fund Portfolio Overlap Comparison Tools
* List of all Popular Investment Options in India – Features & Snapshot
* List of Articles on the key Components of Personal Financial Planning
Thanks Sreekanth for the prompt help..
1) Do you think I should switch the UTI ones? Any suggestions?
2) Also for value discovery, I was thinking if I should continue the SIPs/reduce the SIP amount as it is not performing well in last 1 -3 years..what can be other options..
3) Also what is your suggestions in terms of debt exposure/instrument to these folios as I feel it is too much equity oriented. Shall I invest some amount in terms of debt funds/products( although no immediate goal in hand).
4) to make it diversified, am I missing anything?
Thanks again…! you rock..
Dear TM,
1 – Their performances have been average?
2 – You may reduce the quantum of allocation to that fund and divert the amount to Hybrid and/or pure Mutli-cap/Diversified Funds.
3 – Advisable to have certain allocation to debt products as well. Ex : EPF/PPF/Post office Schemes/Debt MFs etc.,
Ok Sreekanth….as far as my core portfolio goes I have invested in Franklin India equity fund, Icici prudential blue chip fund and HDFC hybrid equity fund. From a diversification point of view considering the MNC component I have recently started investing in PP long term equity fund.
In view of the above is it advisable to look at a large cap index fund as a inclusion in my core portfolio or just a diversification.
Regards,
Roy
Dear Roy,
As you already have a blue-chip fund in your portfolio, I believe you may avoid picking one more large-cap fund/index fund..
Thank you for your guidance Sreekanth.
👍
Hello Sreekanth,
Good Afternoon!
Would it be advisable to invest in a sectoral fund at this juncture i.e. a infrastructure /pharma mutual fund for a span of 4-5 years.Positive views on these sectors and hence the thought.
I have never invested in a sectoral fund , just a diversification .
Would you advise doing so ? or should i look at another sector and also time frame and suggested funds.
Best Regards,
Roy
Dear Roy,
Personally, I suggest you to avoid investing Sectoral Schemes.
Advisable to stick to consistent Multi-cap Funds, Large cap Index Funds and/or Hybrid Funds.
Hi Shreekanth,
My current portfolio consists of below-mentioned funds:
1. SBI Bluechip fund
2. HDFC Mid Cap Opportunities fund
3. Reliance Small Cap fund
4. Axis Long Term Equity fund
Now, I do not need any ELSS fund, especially for tax saving purpose, as my 80C section is covered by other tax saving instruments. So, do you think I should continue with Axis Long Term fund? If NO then please suggest a fund where I can start investing with that amount(SIP). My investment time-frame is 10-15 years.
Thanks and Regards
Anil
Dear Anil,
You may consider investing in a diversified/multi-cap scheme.
Ex : Birla Equity Fund / Franklin Equity etc.,
Dear Sir,
I am a long term investor. pls suggest on below portfolio.
Name Monthly Investment Avg Return
DSP SMALL CAP 6000 0.96%
ICICI BANKING & FINANCE 4000 20.22%
ICICI BLUECHIP FUND 8500 13.82%
ICICI VALUE DISCOVERY FUND 4000 6.82%
L&T EMERGINF BUSINESS FUND 2000 -6.13%
L&T INFRASTRUCTURE 2000 1.36%
HDFC HYBRID EQUITY 5000 12.17%
HDFC MIDCAP OPPURTUNITY 7000 16.56%
SBI CONSUMPTION OPPT FUND 1000 -1.90%
SBI HEALTHCARE OPPT FUND 2000 -6.18%
ABSL EQUITY FUND 1000 13.83%
ABSL REGULAR SAVING FUND 1000 4.76%
Total Monthly Investment 43500 13.26%(Overall)
Dear Arun,
Any specific reason/strategy for investing in so many Schemes?
You have 4 thematic/sector oriented schemes which can have very high risk profile.
Kindly read : Mutual Fund Portfolio Overlap Comparison Tools
No Sir, No specific reason. so pls suggest me which one i should continue.
Or suggest ideal portfolio.
Dear Arun,
You may continue your investments in the below funds ;
ICICI BLUECHIP FUND
HDFC HYBRID EQUITY
HDFC MIDCAP OPPURTUNITY
ABSL EQUITY FUND
Hi Sreekanth,
I need your suggestion for the ICICI Pru Value discovery -Direct G.
I have SIP around 2k in this fund since 3 years, however i can see that this fund is not performing well since one year.
Do you have any suggestion, whether it is time to switch or continue.. i do not have issue with time frame i can stay invested for long term.
let me know your view
Dear Mihir,
May I know if you have invested in any other MF Schemes? If so, kindly share the Scheme names..
Also, your investment time-frame?
Hi Sreekanth,
yes i have another MF as well,
ICICI Focue blue chip
AXIS LTE
My time frame is more than 5 years
Dear Mihir,
ICICI Val Disc is a contrarian/focused type of fund.
You may continue with ICICI bluechip and Axis and switch from ICICI Value to an Hybrid Fund.
Hi Sreekanth,
what type of hybrid fund, can you please give one or more example if you have
Dear Mihir,
Ex : HDFC Hybrid Equity Fund.
Kindly go through this article to know about balanced or hybrid funds :
Best Balanced Mutual Fund Schemes (Equity Oriented) | Review
Hi Sreekanth,
I found SBI magnum balance fund good compare to other hybdrid fund.
whats your thought
Dear Mihir,
It is a decent performer, you may go ahead with your pick.
i am investing @ 3000/- in each of the following.
Aditya Birla Sunlife Equity Advantage Direct
HDFC small cap Dir
ICICI Pru Blue chip Dir
Kotak std multi cap dir
Mirae Assest Emerging blue chip Dir
Motilal oswal multi cap 35
kindly advise me whether any change is reqd or to continue in these. Time horizon is min 10 year.
thanks
Hanuman Prasad
Dear hanuman,
The mentioned funds are good ones and you may continue with your investment plan.
But, kindly be aware of the Portfolio overlap concept.
For ex : Kotak & Motilala Multicap funds are from same fund category ie Multicap and their Funds’ portfolios overlap by 41%. Higher the % overlap lesser would be the benefit for the investor.
Related articles :
* Mutual Fund Portfolio Overlap Comparison Tools
* List of all Popular Investment Options in India – Features & Snapshot
Thanks a lot.
So if I stop sip in one of it which one to retain. Further should I redeem from left out fund and reinvest.
Dear Hanuman .. As of now you may retain them, but keep an eye on overlap %s and performance..
Ok, however if I keep sip ( merging amount of both) in one only, which one to continue.
Hi Sree,
Sorry to ask you again. Please guide regarding
if I keep sip ( merging amount of both) in one only, which one to continue out of Kotak multi cap and motilal multi cap
Dear hanuman ..Given a choice I would go with Kotak fund..
Hi Sree
Please suggest me best mutual fund category to invset via SIP for 3-4 years.
Risk profile : Moderate
Time Horizon : 3 to 4 years
Liquidity : Not a constraint.
Dear Vishnu,
If you need money in around 3 years, you may consider investing in Bank FD / Secured NCD Issue / Ultra Short Term Debt Fund (kindly understand the risks associated with NCDs/Debt Funds).
Related article :
List of all Popular Investment Options in India – Features & Snapshot
hi sir,
me and my spouse are looking to invest 2.5 lac per month in various mutual funds.
we are looking for moderate to high risk funds.( mix of large , mid and small cap funds)
What do you think should be ideal portfolio , right now i am investing in lot of mutual funds which i want to narrow down to few.
my investments monthly-
DSP Small :20
HDFC Small:20
Axis mid:25
Axis bluechip :25
Mirae assent india emerging :25
ICICI prudential value discovery:10
And my spouse have below investments monthly –
L&T Emerging Businesses :35
kotak emerging equity :30
ICIC prudential bluechip :30
kotak standard multicap :30
We are targeting long term investments ( few for 5-6 years and others for 10+ years and retirement plans). as we can sustain above SIPS for another 1 -1.5 years , we want to maximize investments for now as after that we will go back to India and we want to create a balance of investment from our income in next 2 years .
Any input will be highly appreciated
Thanks in advance .
Dear Rajesh,
May I know which MF Schemes from the above list you would like to redeem after 5/6 years from now?
Kindly go through this article – Mutual Fund Portfolio Overlap Comparison Tools
Hi Sree,
Do you think we should switch to Mirae Emerging from Mirae India Equity as it has become completely Largecap now even though it was tilted to Largecap earlier too but now there is no room for other category as its not multicap but Largecap now.
Nancy
Dear Nancy,
Yes, if one already has large-cap in the portfolio, can consider switching.. I somehow believe that a large-cap index fund is better than regular large-cap oriented (actively managed) funds.
Guess I have some homework to do donno much about index funds :). Thanks for recommending.
Dear Nancy,
Related article – What are Index Funds? ETFs Vs Index Funds | Should you invest in them?
Thanks 🙂
Hi Sree , Thank you for the nice article .
Kindly review my portfolio & provide your inputs .
Goal : Retirement planning
Age : 30
Duration of investment : 10-15 years
Set 1 :
ABSL frontline equity fund -10k
Mirrae asset India equity fund -10k
Franklin India prima fund – 10k
Set 2 :
Axis long term equity fund -10k
Mirrae asset India equity fund – 10k
HDFC hybrid equity fund -5k
Franklin India prima fund -5K
Please let me know , whether to choose Set A or Set B .
(Tax planning are not a concern , as there are alternatives for it)
Dear Kumar,
Kindly note that Mirae India Equity has now been converted to a Large cap fund from a Multi-cap oriented fund.
You may consider ;
One Index fund (large cap) : Ex : UTI Nifty.
Franklin Prima Fund (if you can take risk) (or) a multi-cap fund.
HDFC hybrid equity fund
This looks fine as per my view..
Hi Sree ,
Thank you for the reply .
1. If I choose a Index fund , how can I protect downside ?
Your suggestion is ,
UTI nifty , Absl equity (Mukti cap) , hdfc hybrid ..
Instead can I stick to actively managed large cup fund to protect downside.
Set A :
Mirrae Asset India equity fund- large cap
ABSL equity – Mukti cap
HDFC hybrid equity
And if I need to save tax , I will choose Axis long term equity instead of ABSL equity .
Is this fine ? Kindly provide your inputs .
Dear Kumar,
You can choose an index fund and also 1-2 actively managed funds to have downside protection.
Ye,s you can pick an actively managed large cap fund, I have just given you a suggestion.
My picks would be SBI bluechip / Birla Frontline Equity.
The other two funds in Set A are fine.
Yes, you can replace Birla Equity with an ELSS fund (Axis LTE)
Hi Sreekanth,
Thank you for sharing your insights with us! Keep up the good work!
I am planning to invest in the MFs in SIP mode for the first time. Initially I want to invest 10,000/month for next 10-30 years. My two primary goals are Wealth creation for retirement (30 years), child education (10 yr). Please advise how should I allocate my fund?
Hi,
Thank you for your selfless efforts sharing the fin. literacy.
I have a home loan (38 lacs) in SBI @ 8.9 % interest. Now I have got 8 lacs money. what is your suggestion whether to repay home loan ? or park it in max gain and invest the accounted monthly interest of 8 lacs in MF’s as SIP ?. I can take high risk and high gain. time horizon 5 to 10 years. pls suggest how it should be diversified and fund names?
Even I can invest entire 8 lacs in MFs by systematic transfer in the span of 5 to 8 years
Regards
Ram.
Dear ram,
Thank you for your appreciation!
Are you a new MF investor? Are you adequately investing for your other high priority fin goals?
Related article : Investing in Mutual Funds while paying Home Loan EMIs | Cost-Benefit Analysis
Thank you for the reply.
I am already investing 30 k p/m in MFs SIPs. I asked this suggestion, because as I am planning for additional investment of 10 to 15 k in SIP’s for at least 5 to 10yeears. Pls suggest for better return as I can take risk.
Dear Ram,
Can you share the scheme names that you have been investing in..??
Reliance small cap – 8 k
Kotak standard multicap – 6k
HDFC hybrid -10 k
Sundaram select mid cap – 2k
Icici pru value disco – 3k
SBI multicap -2k
Reliance reg. savings fund -2k.
Dear Ram,
You may do STP for next 12 months from liquid fund to a Hybrid fund and can remain invested for next 5 to 10 years.
Ex : HDFC Liquid fund to HDFC Hybrid Equity fund.
I am a regular reader of your blogs and really appreciate your guidance provided on different investment options. I have following query:
Currently, I am investing in Mutual Fund with 20K Per Month and goal is to maximize my Investment for Future.
1. HDFC Top 100 Fund-Direct Plan(G) – 3000 (Large Cap)
2. HDFC Mid Cap Opportunities Fund-Direct Plan(G) -> 2000 (Small & Mid Cap)
3. ICICI LTEF (Tax Saving)-Direct Plan(G) -> 2000 (ELSS)
4. Aditya Birla Sun Life Frontline Equity Fund(G) -> 3000 (Large Cap)
5. SBI Blue Chip Fund Plan-Direct Plan(G) -> 2000 (Large Cap)
6. Franklin India Prima Fund-Direct plan (G) ->3000 (Small & Mid Cap)
7. Kotak Select Focus Fund (G) -> 2000 (Multicap)
8. Mirae Asset Emerging Bluechip-Direct Plan(G) -> 3000 (Small and Mid Cap Fund)
Also i am about to start SIP (2K) for my spouse in ICICI Prudential Blue chip fund.
Please suggest if any add/deletion required in above MF Scheme for better return or do i need to switch in some other plan.
Thanks in Advance !!
Dear Amit..May I know your investment time-frame (horizon)??
10 to 15 years
Dear Amit,
You have 3 large cap oriented funds HDFC Top 100, Birla Frontlline and SBI Bluechip. And also have one large+mid-cap fund ie Mirae Emerging..
You may just retain any one fund out of these four and consolidate.
You may retain the two mid-cap and one multi-cap funds.
Are you investing in ICICI LTEF for tax saving?
Do note that its performance has been just average in the recent past and its current portfolio has an allocation of more than 70% in large cap stocks.
Kindly read :
Mutual Fund Portfolio Overlap Comparison Tools
Yes, i am investing in ICICI LTEF for the purpose of tax saving.
Please suggest some good funds for my spouse,target is to invest 5K for 10 years.
Dear Amit,
You may invest in Axis LTE / Franklin Taxshield/ Birla Tax Relief for tax saving purposes.
For your spouse : May I know the investment objective? Is it for tax-saving cum wealth accumulation?
Objective is wealth accumulation
Dear Amit,
Can consider a multi-cap fund.
Ex : Birla Equity / Franklin Equity fund
Thnx Sreekanth !!!
Dear Sreekant, thanks for your guidance.
I am planing to invest in the folowing SIP Monthly By March 19
Aditya Birla Sunlife Frontline Equity Fund 5k
Axis Blue Chip Fund 5k
Reliance Multicap Fund 5K
Franklin India Prima Fund 5k
ICICI Prudential Blue Chip Fund 5k
Kotak Equity Opportunities Fund 5k.
beside i have already SIP Aditya Birila MID cap Dividend Growth REg Plan – 20 k For last 1 year.
i want to Invest one time Investments in
Tata Hybrid Equity Fund 1 Lakh
HDFC Hybrid Equity Fund 2 Lakh
UTI Nifty Index Fund 1 Lakh
SBI Blue Chip Fund 1 Lakh
Franklin India Equity Fund 1 Lakh.
The objective is wealth creation in long time.
My Age is 55 years.
Kindly suggest if any change of Fund name you recommend or any categories changes you recommend.
Thanks In Advance
Dear mukund ji,
Is your investment time-frame 10+ years?
Have you already invested in these funds? (or) do you currently hold one fund i.e.,Aditya Birila MID cap (D)??
Dear Sreekant,
yes the investment time frame is 5+ years. I have yet to invest in these SIP & one time funds as mentioned in the list. But presently Aditya Birla Mid Cap 20 k each month is on for last one year. Please suggest the list of SIP planned are ok or any other option
Dear mukund,
Birla Mid-cap fund has been an average performer.
Do you need to withdraw the accumulated corpus (if any) after 5 years?
Dear Sreekant,
ok will continue for some time BIrla MId Cap Fund. then after 6 month we will review
yest After 5 years i will with draw corpus for my use as & when required so i want to Invest
in the following SIP Monthly scheme. If possible from This month on wards. Since my Home Loan Installments are over of 30 K from this month. The same amount i want to Invest each month.
Aditya Birla Sunlife Frontline Equity Fund 5k
Axis Blue Chip Fund 5k
Reliance Multicap Fund 5K
Franklin India Prima Fund 5k
ICICI Prudential Blue Chip Fund 5k
Kotak Equity Opportunities Fund 5k.
beside i have already SIP Aditya Birila MID cap Dividend Growth REg Plan – 20 k For last 1 year.
i want to Invest one time Investments in
Tata Hybrid Equity Fund 1 Lakh
HDFC Hybrid Equity Fund 2 Lakh
UTI Nifty Index Fund 1 Lakh
SBI Blue Chip Fund 1 Lakh
Franklin India Equity Fund 1 Lakh.
The objective is wealth creation in long time.
Dear mukund,
If your investment horizon is around 5 years, suggest you not to invest in pure Equity funds. You may kindly avoid investing in Mid/small oriented funds.
You may consider investing in Hybrid Funds.
Related article : List of all Popular Investment Options in India – Features & Snapshot
Hello Sreekanth,
Good evening and wish you a very Happy Holi
Given below is the % allocation of my ongoing portfolio for all my long term goals ranging from 8 to 20 yrs.
I have 1 fund in all catg.’s mentioned below except for small cap that too because of DSP switching from micro to small cap.Current exposure to small/midcap is at 43 % ,want to reduce the exposure to small cap and bring the small/midcap catg to 30 %
Just a thought,should i discontinue DSP small cap totally (Mr.Sambre has better things to do with his elevated profile 😜 fund does not seem to be coming out from the dumps) and re invest in Franklin Smaller Co’s and Parag Parikh LTE (so that i have a global component in this portfolio)
DSP Small Cap Fund Small cap 17.1 %
Franklin India Smaller Co’s Fund Small cap 12.9%
HDFC Midcap Oppurtuinities Equity Fund Midcap 12.9%
Franklin India Taxshield Fund ELSS 11.4%
Franklin India Equity Fund Multicap 8.6%
Franklin India Focussed Equity Fund Focussed/Multicap 8.6%
HDFC Hybrid Equity Fund Hybrid-Aggressive 12.9%
ICICI Pru Value Discovery Fund Value 7.1%
ICICI Pru Bluechip Equity Fund Large Cap 8.6%
Would appreciate your help and valuable suggestions .
Have a nice evening .
Thanks and Regards,
Roy
Dear Roy,
Thanks for the wishes and same to you!
Yes, you may just invest in Franklin Smaller cos fund (instead of having two small cap schemes in your portfolio).
Also, kindly do not over-diversify, this may not be really beneficial.
For ex : You have Franklin Equity fund, then Franklin Focused equity fund may not be really needed in the portfolio (just a suggestion..).
Dear Sreekanth,
Was sceptical on DSP Small cap,will make the switch .
Should I discontinue Franklin India focused Equity and reinvest the same in Franklin India equity due to the risk parameter factor of Franklin India focused equity fund and hence this would not make the overall portfolio too aggressive along with the current allocation to small and midcap at 43%.Have I read it right.
Also additional sip plan for PP LTE,should I put this into Franklin India equity as this would be having 2 multicap funds again after discontinuing Franklin focused equity or any other suggestions you have.
Any other funds in overall portfolio you feel I should discontinue and reinvest.
Want to simplify the portfolio starting as rightly suggested , starting apr’19 .
Thank you.
Regards,
Roy
Dear Roy,
Given a choice, I would be content with Franklin India equity and not pick Franklin Focused (though it is a decent performer).
As discussed earlier on Parag, you may invest in it! (for the sake of diversification!)
Is Franklin taxshield for your 80c tax saving purposes??
Hello Sreekanth,
Point taken on Franklin Equity.
As far as Franklin taxshield goes was investing 8 k a month for 80c tax purpose but in the last 2 yrs it actually does not serve any tax purpose as my daughters tuition fees compensates for that component.Any suggestion ,should i stop this SIP and reinvest this amount and in which fund/catg ?
Would be discontinuing DSP small cap .Approx current redemption amount is 3.5 lacs .
-Should i withdraw it at one go and take a hit on STCG/Exit load or should i do a partial withdrawal ?
-Should i re invest the redeemed amount as a lumpsum into the same catg fund or spread it over a few funds ?
Have a nice evening.
Cheers !
Roy
Made a mistake Sreekanth,Only exit load appicable in case of DSP small cap and no STCG as returns are negative ….
Thank you.
Dear Roy,
1 – If tax saving is not a reason, you may re-allocate the future SIPs of Taxshield to other Multi-cap and/or Large cap funds..
You may re-invest the lump sum amount in 2 to 4 installments over the next 1 year or so (if you track the Stock markets).
Can allocate across your other existing funds.
Kindly read :
*How to set-off Capital Losses on Mutual Funds, Stocks, Property, Gold, Bonds & Debentures?
Dear Sreekanth,
Thank’s a million for your advise and guidance.Also went through the article,got clarity on setting of capital loss against gains …good part is that it can be carried forward to the next Fin Year or 8 yrs from booking the losses.
Thank you once again.Will re- allocate accordingly 👍
Best Regards,
Roy
sir,
as of now i’m holding the following Mf’s
pls suggest any changes required
ICICI pru focussed blue chip – 8k /Month on going
HDFC mid cap opportunities – 3k /Month on going
Tata balanced fund – 2k /Month on going
HDFC top 100 – 50k – discontinued
IDFC premier equity plan a – 65k – discontinued
i have no such short term target,
pls suggest whether to change any MF which are ‘on going’
as well suggest ant STP for the discontinued MF’s
thanks
Dear san,
You have two large cap oriented funds (ICICI bluechip & HDFC Top 100). You may retain either of the two.
TATA balanced fund has not been performing well over the last couple of years. You may switch to HDFC Hybrid Equity fund.
Related article : Mutual Fund Portfolio Overlap Comparison Tools
Ok sir,
I will switch from TATA balanced to HDFC hybrid equity,
thank you!
Sir….I have some amount in discontinued funds like IDFC premier equity & HDFC top 100 at about 120k, pls pls suggest should i re-invest in some other or let it be….i dont have any short goals…..
Dear pavan,
You may redeem the units from IDFC fund and reinvest in HDFC Mid-cap. You may hold on to HDFC Top 100 units..
Hi Sree,
My investment objective is wealth creation, Please find the below MF schemes. I am investing thru SIP since 1 to 1 1/2 years,
Ready to wait for 8-10 years
My Portfolio
LARGE CAP -SBI Blue Chip Fund – Direct Plan – Growth – 7000/Month
DIVERSIFIED -Franklin India Focussed Equity -Direct- Growth – 5000/Month
SMALL CAP-Franklin India Smaller Companies Fundt- Growth- 2500/Month
SMALL CAP -SBI Small Cap Fund – Direct Plan – Growth – 2500/Month
BALANCE FUND-HDFC Hybird Equity (Balance fund) – 5000/Month
Spouse Portfolio
ELSS L&T Tax Advantage Fund Direct Plan – Growth – 1500/Month
ELSS DSP Tax Saver Fund Direct- Growth – 1500/Month
MIDCAP Mirae Asset Emerging Bluechip Fund – Growth – 2000/Month
MIDCAP Franklin India Prima Fund – Direct – 2000/Month
Please advise If we need any changes on above portfolio ?
Regards,
Ravi
Dear Ravi,
Both portfolios look ok to me.
But, kindly note that a Focused Diversified fund may have higher risk profile than a typical regular Multi-cap fund. Also, you have two small cap funds, so your overall risk profile can be considered as AGGRESSIVE.
Hi Sree, I’m your reuglar follower of all your blogs – Good insight.
Thanks for your valuable suggestion and reply.
Here, Could you please suggest the below changes will be ok to my portfolio for long term (lets say 8 years)
Franklin India Focussed Equity to Franklin India Equity Fund ? AND
Franklin smaller companies/SBI (Any one small cap) to HDFC Mid-cap Opportunities Fund ?
Else please suggest your own good funds to switch according to my existing portfolio..
Dear Ravi,
If given a choice, I would pick Franklin Equity fund and a hybrid equity fund.
Hi Sree,
Thanks Much, Ok, I will choose…
Franklin India Focused Equity to Franklin India Equity Fund
AND
Franklin smaller companies/SBI Small Cap Fund (Any one small cap) to HDFC HYBIRD EQUITY FUND
(Fyi – Here am already investing here about 5000/ month – still we can add 2500/month ? please confirm..)
(Fyi – Here am already investing HDFC Hybird Equity 5000/ month – still we can add 2500/month ? please confirm..)
Dear Ravi,
You may add the additional amount to your Bluechip fund..
Thanks a lot for your inputs Sree..
Hi Sree,
Could you please suggest the below overlap’s are ok ?
because all this combinations shows 42% overlap…
LARGE CAP : SBI BlueChip Growth &
HDFC Hybrid Equity -G – 42 % overlap
LARGE CAP : Aditya Birla Sun Life Frontline Equity -G
& HDFC Hybrid Equity -G – 42 % Overlap
LARGE CAP : ICICI Prudential Bluechip Fund &
HDFC Hybrid Equity -G – 42 % Overlap
If need any changes on this – please suggest on your views…Thanks
Dear Ravi,
There is no need to pick three large-cap oriented MF Schemes..
You may have one large-cap/multi-cap fund and also can have an hybrid fund (if needed..)..
Hi Sree, Sorry -I put my question this way – I did Fundoo analysis and found that LARGE CAP(one) and HYBIRD Fund overlap percentage is 42 % – Here it is advisable to can have one LARGE CAP and HDFC HYBIRD FUND in my Portfolio ?
Note: Hence i have tried all recommended LARGE CAP fund with HYBIRD fund – all shows 42 %. so little concerned about 42% overlap percentage..looking your views on this. Thanks
Dear Ravi,
42% across different combinations? Sounds interesting & confusing as well!
But, do note that over a period of time, the Funds’ portfolios do change.
You may go ahead with your selection!
Hi Sree,
Yes, Across Different combinations( one LARGE CAP Vs HYBIRD FUND) among above 2019 recommendations.
Agree, You are Correct – Fund portfolio change as per fund manger’s choice – nice thought
Here, I will go for long term as of below
LARGE CAP : SBI BLUE CHIP
HYBIRD : HDFC HYBIRD FUND
Please let me know if this combination is not correct !
Thanks
Dear Ravi ..You may kindly go ahead with your selection..
Hello Sree,
I am a NRI based out in USA. In case I have short term capital gain on a debt mutual fund which is approximately Rs 50000 only, I assume Mutual Fund house will deduct TDS at 30%, however can I claim for full refund in case there is no other income. Please advise.
Thanks,
Hemant
Dear Hemant,
Yes, you can claim it by filing ITR.
Hello Sreekanth,
I had done the lump sum investment 3 years ago in Aditya Birla Sun Life MIP II wealth 25 plan growth which is now known as Aditya Birla Sun Life Regular savings fund growth. Since, the fund is not performing well in comparison to it’s peers, please advise, if I should withdraw the funds and invest in some other fund or should continue with holding my investment.
Thanks,
Hemant
Dear Hemant,
May I know your investment horizon from now?
Do you have investments in any other MF schemes?
Thanks Sreekanth for your response. I had invested in ABSL Regular savings fund growth with a horizon of 3-5 years. My other MF schemes in portfolio are as below. I had invested in them with SIP for 3 years, however have stopped the SIP from last 1 year.
8-10 years
SBI Blue Chip
Kotak Select Focus
Birla SL Equity
SBI Magnum Balanced Fund
12-15 years
SBI Magnum Multicap Fund
UTI Mid Cap
Please advise if you want to make any changes on above portfolio. Also on my previous query on withdrawal or continue hold of ABSL Regular savings fund growth.
Regards,
Hemant
Dear Hemant,
If your investment horizon is around 10+ years, may I know the reason for stopping SIPs in these funds??
The listed funds are good ones. The performance of UTI mid-cap has not been up to the mark in the last few years.
You may redeem the units of Birla MIP fund and re-invest in your Balance fund.
Hello Sree,
Thanks for your prompt response. I am following up your blogs from last several years and had built up my portfolio based on your recommendation only. I had stopped SIP for the time being as I was investing somewhere else.
Regarding UTI Mid Cap fund, do you recommend to redeem all units and re-invest in lumpsum in some other fund or should I continue holding them.
Also for Birla MIP fund, should I re-invest all units in lumpsum or do them with SIP. Please advise.
Thanks,
Hemant
Dear Hemant,
You may switch all the units of UTI midcap to a better one. Ex : Franklin Prima Fund or HDFC Mid-cap opp Fund.
If your investment horizon is long-term, you may re-invest all units of Birla MIp (lump sum) into balanced fund (Hyrbid Equity).
Hello Sreekanth,
Good Afternoon!
Seek your valuable advice on my retirement portfolio with a horizon of 15 yrs.
Ongoing retirement portfolio SIPS :
ICICI Pru Value Discovery Fund-2000 pm
ICICI Pru Bluechip Fund-2000 pm
DSP Small Cap Fund-7000 pm
Franklin India Taxshield Fund-1000 pm
Want to increase mthly sips by 5 k starting april 2019.
Planning to invest in a fund investing in developed markets (2000 pm in a Franklin India US oppurtunities fund ) and increase current ongoing sip by 2000 in ICICI pru Bluechip and 1000 in Franklin India Taxshield .
Would appreciate your suggestion.
Thanks and Regards,
Roy
Dear Roy,
Kindly go ahead with your investment plan.
Another alternate is Parag Parikh Long Term Equity Fund which invests in Indian and foreign equities as well (20 to 30%).
You have a higher allocation to a small cap fund, so advisable to increase the allocations to Bluechip fund/ELSS fund.
Dear Sreekanth,
Good evening !
Thank you for your guidance and valuable insight as always.
Would go with PP LTE fund 👍 .3 yr performance almost on par for both funds but 5 yr performance of PP LTE 17.64% returns as compared to Franklin feeder @ 10.4% .
Point taken on DSP Small Cap Fund .I have been in this fund i.e. DSP micro cap/small cap for the last 3 yrs. Will give the fund another 1-2yrs or will discontinue the same.(is this ok or should i give it more time)
Please suggest which option should i go for starting apr’19 taking into consideration that going further i would be gradually increasing sip amounts in selected funds taking it to 29 k in totality towards my retirement portfolio between the next two financial years i.e.2019/20 &2020/21
Option 1:
ICICI Pru Value Discovery Fund-2000 pm
ICICI Pru Bluechip Fund-4000 pm
DSP Small Cap Fund-7000 pm
Franklin India Taxshield Fund-2000 pm
Parag Parikh Long Term Equity Fund-2000
Option 2:
ICICI Pru Value Discovery Fund-2000 pm
ICICI Pru Bluechip Fund-6000 pm
DSP Small Cap Fund-7000 pm
Franklin India Taxshield Fund-2000 pm
Best Regards,
Roy
Dear Roy,
You can continue with your investments in DSP fund, but I was just referring to % allocation (amount).
Option-1 can be considered. But, you may reduce the allocation to Small cap fund. Do note that Franklin Taxshiled generally allocates higher % to large cap stocks, hence the current overlap between the portfolios of Franklin Taxshiled and ICICI Bluechip is around 40%.
Thank you for the input Sreekanth.
Regards,
Roy
Dear Srikanth,
Good morning.
I have some investments in MF. I am planning to redeem & construct a house ( I have one house already which is self occupied). So that I can get rent. Is it advisable. My age is 45 years.
Dear Harinath,
Are these investments in MFs meant for this goal or any other goal?
i want to invest rs 30000 each month in various SIP MF for 3 years. my age is 55. pls suggest 5 good funds & advise the max. amount in each fund. i also want to invest one time around 10 lakh. suggest the good funds
the objective is for wealth creation.
present Investmnets : Rs 20000/per month in Aditya Birla Mid cap Divedend Plan. last 1 year. Rs 10000/per month in Franklin Small Co fund Dividend since last 1 year. Rs 10,00,00/- In SBI equity saving find regular Monthy dividend. occordingly suggest for next investment as above
Dear mukund,
If your objective is to create wealth then not advisable to invest in Dividend payout options and also not in Equity funds.
Please suggest what are the best options to me. hope you have seen my present investment. i need to invest Rs 30000 each month & one time investment above 10 Lakh. minimum for 3 years. max 7 years.
Dear mukund,
You may pick Equity Hybrid Funds like HDFC Hybrid Equity and a Large-cap fund with Growth option.
Instead of investing the entire Rs 10 lakh in one go, you may invest it in 2 to 4 installments over next 6 to 12 months.
You may also take service of a fee-only financial planner.
Related article : My List of popular Fee-only Financial Planners | Based on my interactions & observations
Hi Sree
I am helping a friend build her portfolio and have following funds in list.
– Franklin Smaller Companies
– HDFC Hybrid
And we will have one more for which I have shortlisted 3:
-Mirae Asset India Equity Multicap OR
-Mirae Asset Emerging Large & Midcap OR
– L&T Midcap.
Does this portfolio look ok to you? And do you recommend any 1 fund out of the 3 shortlisted.
Dear Nancy,
May I know her investment objective(s) and time-horizon??
Hi Sree,
7-10 yrs.
Objective – to generate wealth
Nancy
Dear Nancy,
Along with the two mentioned funds, you may suggest adding Mirae Asset India Equity Multicap fund to the portfolio.
Thanks Sree just one thing. I tried an online overlapping tool however I do think its not 100% accurate but it showed me more overlap between the two and Mirae India than the two with Mirae Emerging, just a little more with India than emerging. But that should be ok? What do you say?
Nancy
Dear Nancy,
The overlap between Mirae Equity Vs Mirae Emerging is around 60%.
I have checked @ thefundoo.com
Sorry to confuse you Sree, I meant the overlap between Mirae India Equity and (HDFC & Franklin) is showing 57% whereas overlap between Mirae Emerging and (HDFC & Franklin) seem less about 38 or 39% something. But if you suggest India equity is safer than Emerging then I think I will suggest that one. What do you say?
Somehow I didnt get an email notification of your response this time. I was waiting but then I thought you’v always been so prompt so I came by today to check and there was a reply from you :). Thank you.
Dear Nancy,
Out of the listed options, Mirae Asset India Equity Multicap is a better fit as there is one small cap and one balanced fund in the portfolio. Can avoid investing in Large+midcap and/or mid-cap fund.
Mirae Equity (multicap) Vs Franklin Smaller cos overlap is around 15% and 39% with HDFC Hybrid Equity..
Did you check the option ‘Notify me when someone replies to my comment’ and also provide correct email Id???
We will go with Mirae Asset India Equity then.
I make sure I check that option but I may have forgotten last time. Thanks as always 🙂
Dear Nancy,
Did you receive an email alert this time around??
(Just making sure that there is no technical issue at our end..)
Got it 🙂
Dear Sree,
I have following portfolio each one have around 10k invested also mentioned period of invested.
My requirement is long term, kids education etc.
Request you to kindly advice which one continue or suggest new one also.
Aditya Birla Sunlife Top 100 Fund-Dividend Payout (2Yr)
Aditya Birla Sunlife Top 100 Fund-Growth (2Yr)
Aditya Birla Sun Life Tax Relief 96 (5Yr)
Axis Long Term Equity Fund Growth (5 Yr)
HDFC BALANCED FUND – GROWTH (3 Yr)
HDFC Mid Cap Opportunities Fund Growth (2 Yr)
HDFC TAX SAVER – DIVIDEND PAYOUT (10 Yr)
L&T India Value Fund – Growth ( 1 Yr)
L&T Tax Advantage Fund-Growth ( 1 Yr)
RELIANCE Large Cap – Growth (1 Yr)
SBI Blue Chip Fund-Growth ( 3 Yrs)
SBI Magnum Taxgain Scheme 93 Growth (10+yr)
Tata Equity P/E Fund – Growth ( 3 Yr)
TATA India Tax Savings Fund-DP (3 yr)
Thanks in advance for help.
Dear Rutushar,
If your investment objective is wealth creation, you may avoid investing in Dividend plans of MF schemes, opt for Growth..
You may try trimming down your portfolio. Investing in too many funds that too from same fund category may not be really beneficial.
For ex : You have large-cap funds like ABSL Top 100, Reliance Large & SBI bluechip funds. The funds’ portfolios may overlap.. you may just retain one out of these three large-cap funds.
Like-wise you may continue investing in one ELSS fund for wealth creation and tax-saving.
Related articles:
* Mutual Fund Portfolio Overlap Comparison Tools
* Best Tax saving ELSS Mutual Funds
Thanks a lot Sree. Will check the overlapping and do the changes.
Also request can you please guide to me for my above portfolio, which fund should continue for long term.
Dear Rutushar,
Most of the listed funds are good ones.
Suggest you to do overlap analysis and revert..
Hi Sree. I have following MFs in my portfolio:
Mirae India Equity
HDFC hybrid Equity
Franklin smaller companies
ICICI Pru value discovery
I was thinking of stopping the ICICI pru discovery and rather invest in Franklin or Mirae or add a new MF – L&T midcap. What do you say?
Also I see some of my SIPs are showing negative XIRR even after 2 yrs. Is it normal? I see my lumpsum are returning positive but SIP negative. Why is that?
Rajni
Dear Rajni,
The last one year has been very volatile and the Mid/Small cap stocks have corrected considerably. Hence your overall Portfolio return would have also come down.
If you are investing for long-term, kindly hold on to your investments in Equity funds.
Focused or Value based funds may have slightly higher risk profile than regular Multi-cap funds.
You may stick to ICICI Value discover fund.
“If you look at the return graphs, notice that Value discovery is a lot more volatile in returns. If you are someone who likes steady returns even though a bit low, then Value discovery is not for you. Investing in this fund will require a long term commitment. Existing investors can continue to hold and watch for a little more….” (Source : freefincal.com)
Ok. Thanks 🙂
Dear sir
Pls review my
Portfolio -I ( for son education after 12 years). Target amount 35 Lakhs
1. Parag parikh long term equity -5000
2. Mirae asset emerging blue chip- 4500
Portfolio -I I ( for child education after 15 years). Target amount 50 Lakhs
1. L T Midcap 4000
2. Reliance small cap 3000
is it okay to continue sir?
Dear Nikki,
Portfolio – 1 is ok.
Portfolio – 2 is an aggressive one. You ma include one multi-cap fund and one mid-cap fund.
Have a look at index Funds and Hybrid funds..
Related articles :
* Calculate how much you need to invest for your Kid’s Education
* List of all Popular Investment Options in India – Features & Snapshot
* List of Articles on the key Components of Personal Financial Planning
Thanks for reply sir..
You mean to say that their should not any small cap in portfolio II?
Dear Nikki,
It is not that you should not…
But it is prudent to have a well diversified portfolio and also a Hybrid Equity fund can balance your portfolio which gives a certain amount of Downside protection..
Hi Sreekanth,
Thank you for continuing your yearly MF pick. Really appreciate your time.
I have a question, see I have to switch few funds, see details below.
1. UTI Midcap (5lakh)
2. Tata Balanced (4 lakhs)
(I made these funds by investing in SIP mode for couple of years.)
I am planning to switch these to
1. HDFC Mid cap opportunity
2. HDFC Hybrid Equity (Balanced fund)
Should I withdraw full and invest in new funds lump sum? I think withdraw full and start SIP in new funds may be better idea as there might be market volatility for this year.
My investment is for long term, say 15+ years.
Other funds holdings
1. AB wealth 25 (MIP): 7Lakh
2. Franklin smaller companies: 2 Lakhs
3. Franklin India Equity (multi cap): 3Lakh
Thanks,
Jose
Hi,
Considering your long term horizon, you may make lump sum investments in few installments in the next 6 months to newly chosen Funds. Yes, we can expect volatility in the first 6 months of this calendar year.
But be aware of the tax implications on redemption.
Read : Mutual Funds Capital Gains Taxation Rules FY 2018-19 (AY 2019-20) | Capital Gains Tax Rates Chart
Thanks Sreekanth for quick reply.
I was an NRI status till Jan 2019. Hope the redemption won’t attract any income tax. I heard that we didn’t need to pay tax if fund value is not much than in Jan 2018.
Thanks,
Dear Jose,
LTCG (if any) @ 10% on Equity fund units redemption is applicable only if gains are above Rs 1 Lakh in a FY.
Kindly note that TDS is applicable on NRI MF investments. Kindly refer to the above suggested link..
Hi Sreekanth pls clear my confusion. If investing in a MF scheme through SIP (Not Lumpsum) it’s consistently performing poorly compared to its benchmark as well as category average for few years & have decided to reedem the units & invest into a new fund. How should I do it? Again starting a SIP or invest at one shot?
Dear Niladri,
May I know your existing scheme names and your investment horizon?
SIP in following funds
Motilal Oswal LT equity fund Rs 5000
ABSL tax relief 96 Rs 5000
ABSL Equity Fund Rs 4000(Stopped SIP in ABSL pure value & started this fund)
Kotak standard Multicap Rs 4000
Mirae Asset emerging Bluechip Rs 3000
Reliance small cap Rs 2000
Investment time horizon 10 yrs or more
Moderate to Aggressive investor
Dear Niladri,
Which are the funds in your portfolio that have been under-performing according to your analysis.
ABSL pure value( How to deal with the acumulated amount?)
Motilal LT
Dear Niladri,
The first 4 founds are Multi-cap oriented funds (Though 1 & 2 are ELSS, we can treat them as multi cap ones only).
Kindly check their portofolios overlap. Investing in too many funds from same fund category may not be really beneficial (though listed funds are good ones).
You may invest the redeemed corpus in 2 to 4 installments over the next 6 months period, as we may see high volatility with Equity markets.
Related article :
Mutual Fund Portfolio Overlap Comparison Tools
Most of the scheme has ~30% overlap among them except ABSL tax 96/Mirae Emerging blue chip & definately Reliance small cap as it’s small cap. Now pls help me to reconstruct portfolio.
Dear Niladri,
You may stick one ELSS fund (may be ABSL ’96 fund).
Can stick to one of the two : Kotak or ABSL Equity.
Instead of Mirea fund you may add one Hybrid Equity fund.
Thank for ur advise. Can I go with Mirae asset India opp as a 2nd fund? What’s ur opinion on increasing AUM of kotak multi cap? As Hybrid which would be better HDFC or ICICI?
Dear Niladri,
You have already invested in mutli-caps, why one more?
I dont get worried about the high AUM..
My vote is for HDFC ..
So as per ur suggestion
ABSL tax relief 96
ABSL equity
HDFC Balanced
My query is Can I opt for Mirae asset India equity in place of ABSL equity as already selected an ABSL fund?
What should be the ideal ratio of large/mid/small cap stock in a mutual fund portfolio in mod to aggressive long term investor (10yr or more)?
What’s the utility of balance fund in a long term portfolio?
Dear Niladri,
Mriea Equity fund is also a decent choice. But it has a shorter track record when compared to Birla Fund. You may pick Mriae fund.
There is no ideal ratio as such. If you are investing for 10+ years and ready to take high risk, you may have higher allocation say 50% to mid/small cap funds.
But, having one mid or small cap is enough and not both.
Hybrid fund can give downside protection to the portfolio and some of them have given almost similar returns as pure Equity funds.
Thanks for ur words.So I am selecting following funds:
1.ABSL Tax 96 10000
2.Mirae Asset equity or ABSL Equity
3.HDFC Balance fund
Do I need additional mid/ small cap fund?
Dear Niladri,
As of now, ABSL Tax relief fund invested around 50% of its corpus in mid-cap stocks and its investment style is predominately an aggressive one.
You also have reliance small cap fund, you may continue with it for long-term..
Hi Sreekanth
Can I stick with Mirae asset emerging blue chip in place of multi cap fund(Mirae asset India equity/ABSL equity) for long term goal?
Will smallcap funds able to perform in long run considering increasing AUM? Does it really necessary for separate small cap if investing in others fund provide ~7% exposure to small cap category stocks?
Dear Niladri,
You may continue with Mirae EBC fund..
Thanks Shreekanth
Thank you Sir for listing out these funds. As i have been connected with you from long time now and based on your topics i have come to this level. Thank you.
So this time i just want your help if i need to reshuffle funds based on your new suggestion or shall i still continue with below. These are continued from last 3 years.
1. HDFC Mid-Cap Opportunities Fund – Direct Plan (G) – Rs 3500 – Mid Cap
2. HDFC hybrid Equity Fund – Direct Plan (G) – Rs 5000- Balanced Fund
3. ICICI Prudential Large and Mid cap fund – Direct Plan(G) – Rs 3000 – Large Cap
4. ICICI Prudential Value Discovery Fund – Direct Plan – Rs 3000 – Dversified
5. UTI Mid Cap Fund – Direct Plan (G) – Rs 2000 – Mid Cap
Still i want to continue for 10 Years so is this fine.
Thanks
Dear Gourav,
Thank you for following my blog posts!
In place of 3 & 5 you may consider adding a Mutli-cap fund to your portfolio.
Related article :
List of the most Popular Investment Options in India – Features & Snapshot
Thank you Sir..will add. But shall I sell these 3& 5 now or leave them as it is for later. And add multi cap in addition to these.
Or after selling these invest that amount in multi cap as well so that fund count will remain same.
Please suggest.
Dear Gourav,
You may switch from 3 & 5 and move to a Multi-cap fund / Large cap fund.
Hi Sreekanth.
First of all A big thank you, this is one article that I keep looking up to every year as I like to invest most of my investment in Mutual Funds. This has been my one stop website for all financial guidance.
I have distributed my 10K in ELSS to
Axis Long Term(4K),
Franklin Tax Shield (2K),
HDFC Tax Saver (2K) and
Aditya Birla Sun Life Tax Relief 96(2K).
However the returns from FRANKLIN INDIA TAXSHIELD and FRANKLIN INDIA SMALLER COMPANIES FUND GROWTH are Nill and negative correspondingly (started 2 years back).
I see the Frankling India Taxshield everytime in your list all the time. Is there something i shall change or reshuffle in my portfolio considering their returns in past two years.
Thanks in Advance.
Dear Amit,
Thank your for your appreciation and encouraging words!
Kindly note that Franklin Smaller Cos fund is not an ELSS fund.
May I know the reason for opting 4 ELSS funds?
Hi Sreekanth
Apart from ELSS i also have 4k in small and mid cap for agressive wealth accumulation as follows :-
1) Franklin India Smaller Companies Fund (1K for last 2 years)
2) ICICI Value Discovery Growth (1K for last 6 years)
3) HDFC Midcap Opportunities Fund Growth (2K Recently)
I have chosen 4 ELSS funds to spread the risk and returns. Going further i can increase the amount in these funds.
My Folio :-
Axis Long Term(4K),
Franklin Tax Shield (2K),
HDFC Tax Saver (2K) and
Aditya Birla Sun Life Tax Relief 96(2K).
I started HDFC and Aditya Birla last month only.
My Wife’s Folio :-
Aditya Birla Sun Life Tax Relief 96(4K).
Tata Tax Savings fund (3K)
Axis Long Term(3K),
Please suggest if i need to rebalance or reshuffle. How many funds should 10 K be spread to ideally?
and, whether Franklin funds in worth keeping as for last two years I have almost 0 profit loss.
Also, What other Investment option i can consider for lumpsum investment. PPF/NPS/Post Office
Dear Amit,
Though the listed funds are good ones, investing in too many funds that too from same Fund category may not be really beneficial.
Suggest you to check the Funds’ portfolios overlap %s.
When we check the fund’s performance, we need to check its performance not only with peers but also with its respective benchmark index, to analyze whether it has under performed or not.
Kindly do not expect fantastic returns from a fund like Franklin Tax shield, as it is more of a stable return generator. It has good downside protection when markets fall. The last 5 year returns of this fund is more than the returns generated by its benchmark index and avg category returns.
You may go through my latest article on various investment options @ List of all Popular Investment Options in India – Features & Snapshot
Thank You Sreekanth.
Can you suggest how to restructure this investments in to fewer funds. I am investing 10K each for me and my wife as mentioned in previous post.
My aim is to save tax as well as accumulate wealth in long term.
Regards!
Dear Amit,
Individually you may consider 1 or 2 ELSS funds, no real need to invest in multiple ELSS funds.
Kindly read :
Mutual Fund Portfolio Overlap Comparison Tools
Thank You. 🙂
Hi Sreekanth,
Could you please advise on how to offset the LTCG taxation on MF investments?
What needs to be done in terms of- may be redeeming and reinvesting? and how to do that?
I am not clear on this at all and need guidance.
I am a DIY investor and have been invested in MFs- thanks to your guidance- for couple of years now
Thanks
Gaurav
Dear Gaurav,
As an advisor, I do not recommend selling and re-investing MF Units just to save some taxes.
You may kindly go through this related article…
SIRJI CAN I CONSIDER IN THIS BEST FUND LIST L&T EQUITY HYBRID FUND?
Dear Dipesh,
If you have not yet invested, you may consider the mentioned hybrid aggressive funds instead.
Hello Sreekanth,
A very Happy,Healthy & Prosperous new year to you and your loved ones.
I follow a goal based portfolio i.e. daughters pg education/marriage,retirement .While the same is on going i was planning to have a portfolio where i could dig into if funds are needed which would take care of expenses like school/college fees,house repair funds,family celebrations and other miscellaneous/emergency expenses .
The intention is to have one and not goal based portfolio for the smaller goals so as to simplify the same and access this portfolio as and when the need arises.As of now have a kitty of around 4.5 lacs for these kind of expenses .
Wanted to start with a SIP of around 5000 p.m. and gradually build this portfolio . Was planning to invest it in a multicap fund i.e.Aditya Birla Equity Fund or a Franklin India Equity Fund considering the current volatility in the market and build on the same as one goes along.
Would appreciate your advice on the same.
Thanks and regards,
Roy
Dear Roy,
Wish you too a very happy new year, thank you!
Do you mean to say you would like to build a corpus for short term, recurring goals and also for Emergency Fund??
Right Sreekanth,as mentioned i have 4.5 lacs which should take care of expenses in the short term.
The intention of starting this 5 k SIP is more skewed towards building up a corpus to take care of recurring expenses and emergency fund.Would increase the sip amount gradually too.
Regards,
Melroy
Dear Roy,
If your investment objective is to create a corpus for shorterm, recurring expenses and for Emergency Fund, advisable not to invest in pure Equity Funds.
May I know where have you currently invested this Rs 4.5 lakh?
Dear Sreekanth,
It is invested in hdfc hybrid/Franklin ultra short bond/SBI magnum ultra short term.
Dear Roy,
Ultra Short Term, Liquid Fund(s) or Arbitrage Funds are fine.
Safety, lower risk, capital protection should be given higher priority for the said scenario..
RDs/FDs can be considered by the individuals who are not tax assessees and the investment horizon is less than say 3 years.
Ok Sreekanth, Pls advise as to whether i should do a SIP with a mix of arbitrage and liquid funds and if so any suggestions on funds i should look at.
Dear Roy,
You may invest a portion of your existing lump sum amount in Liquid / Arbitrage Fund and also continue with your investments in Ultra Short term Debt funds.
Liquid fund : HDFC Liquid Fund, ICICI Prudential Liquid Plan or
Quantum Liquid Fund can be considered.
Arbitrage Fund : UTI Arbitrage and ICICI Arbitrage can be considered.
Thank you for your guidance Sreekanth.
Have a nice day.
Thanks and Regards,
Roy
Hello Sreekanth,
Happy new year 2019! Hope you are doing well.
I have been following your guidance since last few years and I really appreciate you for your valuable advice. Wanted to check with you about my portfolio as of today.
I have been managing two separate portfolios for two different goals.
Portfolio 1 – For Child education, marriage etc. Time Horizon is 11 years from now.
1. Franklin India Focused Equity (started two years back) – 6000 pm
2. Canara Robeco Emerging Equities (started a year back) – 4000 pm
3. Mirae Asset Tax Saver (started a year back) – 6000 pm
Portfolio 2 – For retirement. Time Horizon is around 15 years from now.
1. Frankling India Prima (started two years back) – 4000 pm
2. Canara Robeco Emerging Equities (started a year back) – 4000 pm
3. Mirae Asset Tax Saver (started a year back) – 4000 pm
4. SBI small cap (started 5 months back) – 4000 pm
Need your advice on below
For portfolio 1
I wanted to have one multicap, one mid cap, and one tax saver. Was planning to add one more if needed in future. But now High Growth changed from pure multicap to Focused multicap and Canara emerging changed from mid cap to mid & large cap so I am confused with this portfolio. Also both of them have not performed good for a one full year or more.
Question 1 – So I am thinking to stop or at least reduce this Franklin focused equity SIP and start a new fund. Do you think it is a wise move or should I still continue with it? And if I have to stop/reduce this SIP and start a new one then could you suggest a good fund?
Question 2 – On the Canara emerging equity, should I continue with it or switch to pure mid cap?
For portfolio 2
There are two mid (now one mid and one mid & large), one small, one tax saver
Question 3 – Any changes required in your opinion to this portfolio 2?
Request you to please share your expert opinion on my portfolios.
Thanks,
Amit
Dear Amit,
Thank you for following my blog posts!
Portfolio – 1 : Focused Funds can have higher risk profile than a regular multi-cap fund. Also, withdrawals from an ELSS fund need to be taken care carefully when they are required, as units allotted under each SIP block gets locked for 3 years. Sticking to a pure large cap or index based large cap fund and a mid-cap fund should be good. If you do not want to take higher risk then mid-cap can be replaced with an hybrid fund.
Large cap + Pure mid-cap can be considered. You already have Franklin Prima fund, can consider the same.
Portfolio – 2 : Franklin + Sbi + Mirae should be fine.
Hope you have some allocation to Debt securities / investments as well.
Thanks Sreekanth for your guidance. I will work on it.
Yes. Other than Mutual Funds, I have investments in EPF, PPF, FDs, and Gold as well.
Thanks,
Amit
Forgot to add time horizon. My time horizon is 7 years. SIP amount is 1000.
Dear Aravindh,
The risk profile of Axis Focused can be higher as it restricts the allocation to 25 stocks only (concentration risk). But, a decent bet.
Given a choice, for the said investment horizon, I prefer to pick a Hybrid fund than a Focused fund.
Is it good to continue investing in Axis focused 25 equity fund through SIP?
Hi Sreekanth, What’s your opinion about SIP insurance? Have you made an article about that? I am an NRI and at 50 yrs young.
Dear Jiju,
These are just value additions and not required. One can consider opting for a basic Term life cover through any Life insurer.
No, i have not published any article on this topic.
Hello Srikanth,
I’m investing in the below Mutual Funds monthly SIP, may I know whether these are good funds to proceed further. (since one year) ?
1 IDFC Sterling Value Fund – Regular Plan – Growth
2 Reliance Small Cap Fund – Growth
3 Axis Focused 25 Fund – Growth
4 HDFC Small Cap Fund – Regular Plan – Growth
Thanks in advance. Arjun
Dear Arjun,
May I know your investment objective(s) and time-horizon?
Hi Sreekant,
I am following your blog from 2 years long and I really appreciate your efforts helping others. Keep up the good work! This is my first post though,I would need your suggestion for my below situation, I’ve bought a property on loan around 26lk which I want to get rid off by making part payment and then invest in MF. The loan has 32k EMI (8.6% interest) and I can make N number of part payments to finish it early as there is no pre closure charges. I am living abroad currently and can save 3lk monthly. I might not stay abroad for longer time though. Is it a good idea to finish the loan first or do you have any suggestion for any investments along with my loan. Currently I have two ELSS SIPs in Axis LTEF(1k) and Frankline Taxfield (2k) which I had started when I was in India so just continuing with only these two. Would really appreciate your inputs on this.!
Thank you.
Dear Chandu,
Thank you for following my blog posts!
May I know if you have any other Loans? (Personal/Auto..) Is this a floating rate loan?
Related article : Investing in Mutual Funds while paying Home Loan EMIs | Cost-Benefit Analysis
Hi Sreekanth,
No I don’t have any other loans nor I’ve invested anywhere. Yes this is the floating rate loan.
Thank you.
Dear Chandu,
My suggestion would be to invest a portion of your investible surplus for your long-term goals and also part-pay your home loan.
Hi Sreekanth,
I Invested in UTI transportation & logistics fund during 2015-2017 via SIP. Now the value is around 85000. It is showing negative results from last 15 months.
Is it good to continue or need to switch to other fund.
Please suggest.
Dear Rajesh,
May I know if you have any other investments in MF Schemes?
What is your investment horizon for this?
I am investing in the below funds via SIP from last 1-2 years.
My Investment horizon is around 10 years with Moderate risk.
PPF – 2000/Month
HDFC Hybrid Equity fund – 3000
ICICI Pru Blue chip Fund – 3000
HDFC Mid cap opportunities fund – 2000
Franklin India Smaller cos – 2000
Dear Rajesh,
Sectoral funds have higher risk profile, you may switch your investments to Hybrid Fund / Large-cap / mid-cap fund.
Hi Srikanth ,
I am doing a sip of 5000 rs per month in DSP microcap fund from 3 years ..Is it a good idea to continue this , or shift to another fund ? Investment horizon 10 -15 years ..
–thanks,
thomas
Dear thomas,
May I know if you hold any other MF scheme(s)?
Considering your investment horizon, you may continue with your investments..
Should I continue my investments in
1. Birla sunlit frontline equity
2. Franklin Focused equity
3. Mirae emerging blue chip
4. L&T emerging business
considering longterm horizon??
Dear Sai,
1 – Fine.
2 – Though it is a multi-cap fund, it focuses on picking a limited set of stocks. So, the risk profile can be higher than a regular Multicap fund.
3 – If one has a regular multi-cap fund then can avoid a Large+Mid-cap fund. Since, you do not have one, you can retain it.
4 – This fund has been performing well but relatively a new entrant (launched in 2014).
These are decent bets, you may continue with them.
Hi Srikanth.
I am an avid follower of your blogs for over a year now and really like the simple way in which you explain all the basics of investing. And thank you for publishing this article ‘on time’ this year ( last year you delayed it by 4-5 months 🙂 if i remember correctly). Anyway, Keep up the good work!
Me and my wife have following SIPs -65K running (for last 9-18 months)based on your earlier recommendations:
SBI bluechip direct – 10K
ICICI bluechip direct – 10K
HDFC midcap opp. – 10K
SBI magnum multicap -5K
HDFC Hybrid – 20K
SBI small cap – 5K
ICICI value discovery – 5K
We have another 35K per month investible income and need your guidance for the same. I am currently 40 and Goals are long term ( > 5 years – child education, wealth creation and retirements etc.)
Please advise:
Are the above funds and portfolio balance ok?
Should i top up the above SIPs or go for a new fund?
I invest directly thru AMCs portal and therefore would not like to add more than one AMC due to inconvenience of managing so many user names and passwords.
Thanks, Raj
Dear Raj,
Thank you for following my blog posts!
Yes, last year I had waited for the Fund houses to implement the SEBI’s new re-categorization rules and then published the ‘Best Mutual Funds’ article.
You may consider making additional investments in your existing Portfolio itself.
You may retain either of the two Large-cap funds. SBI Blue chip & ICICI Bluechip Funds’ portfolios overlap by around 45%.
Do you have any investments in Debt Securities? (Debt funds/PPF/EPF etc).
Hi Sreekanth, I have invested in the following for the last 3 years:
1. RELIANCE MUTLI CAP FUND – GROWTH PLAN
2. TATA EQUITY PE FUND REGULAR PLAN – time horizon is 5+ years. Is good to continue or shall i consider other funds?
Dear SakthiSG,
If you need money in next 5 years, can consider Hybrid conservative + Hybrid Aggressive funds instead.
Hi Sreekanth,
Again great article with maximum clarity. I have a questions
do we need to add Large cap or Nifty Index as core portfolio or something like following will be fine.
Parag Parikh Long Term Equity 40%+Mirae Asset India Equity 40%+Franklin Prima 20%
My asset allocation is 50:50 for Debt and Equity. Debt I have PF and PPF.
Equity I am investing in SBI Bluechip (from two years), PPLTE and Franklin Prima. My query is regarding is it ok to replace SBI Bluechip with Mirae asset equity and/ or Index fund.
Do you think Active large cap funds will beat index in long run from now? Is it worth to choose Index fund nifty or nifty next 50 over large cap?
Many advisers are now suggesting that Large cap fund after re categorization are not justifying the expense ratio.
forgot to add time horizon it is 15 years.
Dear Prakash,
As of now, both the funds Parag LTE & Mirae Equity have around 73% & 87% allocation to Large cap stocks. So, it does not really make sense to add a pure large-cap oriented fund or Index fund to your portfolio.
If at all, you would like to add one more fund then it can be an Hybrid Equity fund (not compulsory though).
Thanks Sreekanth,
I am not yet invested in Mirae equity. I am invested in SBI Bluechip and PPLTE. Is this ok to replace SBI bluechip with Mirae equity or remain in SBI?
Dear Prakash,
SBI Bluechip + PPLTE + Franklin Prima combo, looks fine to me.
Thanks Sreekanth. I am following up your blogs since last years. your articles are great.
Thank you dear Prakash, for following my blog posts ..Keep visiting ReLakhs!
HY Sreekant,
Your mail are very informative. I would like you to review my son portfolio.
He has
kotak select focus,
HDFC mid cap Opp
Reliance small cap,
L&T emerging business,
ABL advantage,
Invesco Contro fund.Each fund has SIP of 2000/- Direct-G
.He is 25 years young. Should he continue with same?
Please advice if any change is required
Dear Sunil ji,
Is his investment horizon long term?? (say 10+ years)
yes more than 10 years
Dear Dear Sunil ji,
The above listed funds are fine, but the portfolio profile is very aggressive.
He has Focused fund, 1 mid cap, 2 Small cap and 1 contra fund.
Hope, he is aware of the risks associated with these fund categories…
Thanks for your reply.
Pl suggest which funds are to be replaced by which fund.
Should he add one Balance fund ?
Dear Sunil,
You may replace one small-cap fund with a Large cap fund and invest higher allocation to Hybrid fund (balanced fund).
The one you have, is it, Aditya Birla Sun Life Balanced Advantage Fund?
Thanks for the reply .No It is Equity advantage fund.
Sir He has following Funds too .
1) Birla SL front line Equity G Reg
2)Franklin India Smaller Co.Fund G Reg
3) SBI blue ChipG Reg
4)Mirae Asset Emerging Blue Chip G Reg
5) Canara Robico Emerging Equiy G Reg
6)Mirae Asset Opp.fund g Reg
7) ICICI Value Discovery Fund. G Reg
He has all the above fund whose SIP is still running Rs 1000/-
Pl guide him so that he can continue the fund advised/ suggested by you so that he can have good corpus with a horizon of 10 years.He is unmarried.
Dear sunil ji,
Investing in too many funds especially within same fund category is not really beneficial.
For ex : Birla Frontline fund and SBI blue chip fund. The portfolios of these funds overlap by around 57%. So, it is advisable to have one large cap fund, thats enough.
So, you may suggest him to check the overlap among the funds and revert to me with analysis.
Related article : Mutual Fund Portfolio Overlap Comparison Tools
Thanks for our valuable and practical suggestion.
A) Out of Following funds which fund is the best for long Term
LARGE CAP
1) ABSL Front Line Equity G
2) SBI blue chip
3) Mirae Asset India Equity Fund.
Large+ Mid cap
!) Mirae asset Emeriging Blue Chip
2) CanaraRobico Emeriging blue chip
from the above different category ,I want only two fund which will be continued for the longer time
As per your valuable advice one small cap SIP is Closed.
Dear sunil ji,
Mirae Asset India Equity Fund is a multi-cap fund and not a large cap one.
Large cap : You may pick either of the two (Frontline or SBI bluechip).
If you have a large cap and a small/mid-cap fund in your portfolio, you may actually need not invest in a large+mid-cap fund (general suggestion).
Hi,
I have SIP in UTI Midcap (reg) and Tata hybrid equity (reg) since last 2 years with a long term perspective. But funds are not performing well. Should I continue these funds ?
Kumar
Dear Kumar,
You may continue with your holdings in UTI mid-cap for time-being and can switch from TATA fund to some other Hybrid fund.
Hi Sree,
My portfolio consists of:
Mirae India Equity Fund
Franklin Smaller Cap
HDFC Hybrid
ICICI Pru Discovery
DSP Small Cap
I picked these funds when they were performing good 2-3 years ago. Shall I continue investing? Do you have suggestions?
Nancy
Dear Nancy,
If your investment horizon is long term, you may kindly continue with your investments..
What is the total allocation (%) to small cap funds in your portfolio?
Hi Sree, Small cap is 35%.
Dear Nancy,
You may reduce the allocation to Small cap fund a bit or can retain either of the two small cap funds (preferably Franklin Smaller Cos fund).
Thank you sree. Your suggestion much appreciated. Wish you a Happy New Year
Thank you! Happy new year..
Keep visiting ReLakhs!
Hello Sreekanth,
I am a regular follower of your blog. You have been a great help for novice investors like me. Thank you.
I am invested in below funds via SIP:
1. Mirae Emerging Bluechip (Large & Mid Cap)
2. Birla SL Equity (Multicap)
3. Birla SL Tax Relief (ELSS)
4. Axis Long Term EQUITY (ELSS)
Can I hold on to these? Do you suggest I add a Hybrid Equity or a Large Cap to this list?
Dear Kirti,
Thank you for following my blog posts!
May I know your investment objectives and time-frame?
Going to be a father soon. So need to invest for child’s future. Also need to plan for retirement.
Short Term Goal (5+ Years) – Child’s Schooling
Medium Term (15+ Years) – Child’s College
Long Term (25+ Years) – Retirement
Currently investing 16K per month across the mentioned funds. Can go upto 25K per month.
Dear Kirti,
Are you investing in ELSS funds (3 & 4) for tax saving? Or is your 80C full without these funds?
You have three multi-cap funds (2,3 & 4). Can limit the funds from same fund category. Yes, advisable to add one Hybrid fund to your portfolio.
If you mandatorily need money in 5 years (short term goal) then advisable not to invest in pure Equity funds. Can consider Conservative hybrid funds.
Hi Sree,
It didn’t strike me that I have 3 multi-cap funds since I wasn’t looking at the ELSS funds as multi-cap. Thank you for highlighting it.
Around 50K from my 80C limit comes from the ELSS funds. The rest is covered by other means.
Do you suggest I drop 1 of the 2 ELSS funds and add a hybrid fund?
Or can I continue with these and add the Hybrid one on top? I am looking at HDFC Hybrid Equity.
Also please suggest a liquid or short-term debt fund for the 5 year goal.
Regards,
Kirti
Dear Kirti,
If we check the Funds (2,3 & 4) portfolios overlap, its around 15%, which is ok. And these are good funds.
But, the point is diversification across fund categories as well, so you may retain the current holdings and pick a Hybrid Equity fund for your long term goal.
You may pick Franklin Low Duration Fund or any 3-4 year cumulative NCD. Ex : Shri ram NCD which will open for subscription next week.
But, kindly understand the risks associated with NCDs/Debt funds, do note that they are not 100% risk-free.
Related article :
* Shriram Transport Finance NCD Jan 2019 Public Issue : Details & Review
Thank you for your honest and unbiased advice. Keep up the great work! Cheers.
You are welcome.
Happy new year!
Keep visiting ReLakhs.com .
Hi Sreekanth
Nice article.
I’m planning to invest Rs 1000 per month for a very long term of 20 years to genarate 30+ Lakhs for one of my future goal.
Since its long very term i think the right approach is to go aggressive.
Please suggest me which category and which fund is ideal for such an investment.
Risk profile : moderate to aggressive
Dear Vishnu,
To accumulate Rs 30 Lakhs in 20 years from now, at an expected rate of 12% CAGR, you need to invest around Rs 3000 p.m.
You may start your investment plan with Rs 1000 and may gradually increase the SIP amount in the future.
Is this your first investment in MF?
Hi Sree
Thanks for the reply. No this is not my first MF.I have in invested in the below funds.
ELSS : Franklin Taxshield Direct Growth (2017),Aditya Birla Tax Relief 96 Direct Growth (2018).I have been investing 3-4 lumpsums in these funds whenever i feel market is low. Every FY i try to invest around 1 – 1.30 lakhs in ELSS.These funds are also linked to a future goal after 10 years.
Liquid Fund : HDFC Direct and Reliance Direct
STF : Franklin Ultra Short-term Bond Fund.
Please let me know which category is best to invest for my investment mentioned in first query?
Dear Vishnu,
Considering your time-horizon, you may pick a mid-cap oriented fund.
Hi Sree
How can I compare 10+ or 20+ year return data of different mutual funds.Sites like moneycontrol or valueresearch shows return data only upto 5 years.
Dear Vishnu,
You can find 10 year returns data in Valueresearch portal.
You can also find ‘since inception’ data in VR.
You can also visit Moneycontrol and click on ‘Returns calculator’ or SIP Calculator under the respective Fund Scheme link and get the required data.
Hi Sree
After much contemplation i have shortlisted 2 funds for this
1. Mirae Asset Emerging Bluechip Fund
2.Franklin India Prima Fund
I’m confused which one to select. Mirae asset is relatively new fund but it has beated Franklin’s return since its launch in 2011.
While Franklin has seen many up’s and downs and is there from more than 20 years.When i compare the risk parameters also both are neck to neck. Mirae is slightly better.
How is your personal opinion on both AMC’s?
Which fund should i select ?
Risk Profile : Moderate
Tenure : 15-20 years
SIP mode
Existing funds : Franklin Taxshield Direct Growth (2017),Aditya Birla Tax Relief 96 Direct Growth (2018)
Dear Vishnu,
Given a choice I would go with Franklin Prima Fund, given its track record..
Do note that Mirae Emerging BC Fund is categorized under Large+Mid-cap fund, whereas, Franklin Prima is a Mid-cap oriented fund.
Sir
I invest in reliance tax saver elss funds for last three years by SIP can I continue or quit
Dear Mukesh,
Are you happy with the Fund’s performance?