MF Guru: ‘Want to invest Rs 100 in SIPs for 5-7 years’

Omkeshwar Singh, head, Rank MF, (external link) a mutual fund investment platform, answers your queries:

Nupur Sharma: I am investing in various funds of axis bank, axis blue chip, mid cap, triple advantage. With the news of front runner of two fund managers, should I worry and start withdrawing my money from axis?

Omkeshwar Singh: SEBI is looking into it, all scheme does not have the same problem. Don’t take decision in haste and take informed decision.

Britto John Baskar: I hope you are doing well. I am not sure whether my invest is in the correct fund or not. So kindly request you to verify and let me know if there is any change required. My investments per month, is as below:

1. Edelweiss Large & Midcap Index fund direct growth – 2k
2. ICICI Prudential Midcap 150 Index fund direct growth – 2k
3. Axis Nifty Smallcap 50 Index fund direct growth – 2k
4. Parag Parikh Flexi cap fund direct growth – 2k

Omkeshwar Singh: No change is required.

Dharman Shaji: I am holding Nippon India focused equity fund growth plan growth option. My investment SIP value is 94850. SIP has expired. My current market value is 190868. Shall I hold or redeem? Please advise.

Omkeshwar Singh: Please hold

PARAMBIR SINGH Duggal: I am a retired person. I want to invest money to earn yearly 10 percent return. Time horizon above 5 years. Please suggest me some safe avenues in MFs. 

Omkeshwar Singh: You may consider a basket of Hybrid funds.

  • EDELWEISS BALANCED ADVANTAGE FUND – GROWTH OPTION
  • CANARA ROBECO EQUITY HYBRID FUND -GROWTH
  • UNION BALANCED ADVANTAGE FUND – GROWTH
  • TATA BALANCED ADVANTAGE FUND – GROWTH

Ravi: First of all I would like to thank you for valuable guidance to people for free. Sir, I am 47 & would like to invest one time 30K FD in mutual investment & also 100 to 500 SIPs for 5-7 years for my daughter & son 13 & 7 yrs. Please guide me & also teach me how to select Mutual funds.

Omkeshwar Singh: You may consider the below funds:

– Samco Flexi Cap Fund – Growth

– Axis Esg Equity Fund Regular Growth

– Uti Flexi Cap Fund – growth

– Hdfc Index Fund – Sensex Plan -Growth

While selecting a mutual fund, define your goal and then decide on the category that is best suited.

Once that is done, look for schemes in those categories with HIGH quality Portfolio and Moderate to High margin of safety.

Ajay Ghosh: Hi Sir, I am 36, below mentioned are some MFs. I recently joined 10 MF SIPs for 5000 each. Look forward to invest for next 15 years max. So I will be investing 90 lakh into the market. What could be my worst and best returns percentage based on these funds? Thanks for your time and advice in advance. 

  • Parag Parikh Flexi Cap Fund Direct Growth
  • PGIM India Flexi Cap Fund Direct Growth
  • L&T Emerging Buisness Fund Direct Growth
  • Quant Infrastructure Fund Direct Growth
  • ICICI Prudential Technology Direct Plan Growth
  • Quant Tax Plan Direct Growth
  • Quant Small Cap Fund Direct Growth
  • Tata Digital India Fund Direct Growth
  • Nippon India Small Cap Direct Growth
  • Mirae Asset Tax Saver Fund Direct Growth

Omkeshwar Singh: These funds are good.

With increase in time horizon the chances of poor returns decreases provided the quality of the scheme portfolio is high and also the margin of safety is higher.

Mutual funds are subject to market risk and therefore it is difficult to ascertain the worst and best returns or timing the markets.

Yashwanth Kumar: I am doing SIP of Mirae Asset Emerging Blue chip fund Direct fund Rs.10000/- monthly for longer period which is more than 15 years for one crore lump sum . Kindly advise this fund is suitable for me to become corepati in 15 years. Kindly guide and advice 

Omkeshwar Singh: The fund is very good, however 10000 for 15 years may not make you crorepati, but if you can increase the investment by 5K or duration to 18 years the GOAL will be achieved!

Neelam Joshi: My husband and I are investing around 1.25 lacs per month in mutual funds and we have invested in more than 15 funds. Could you please help by telling me which funds (non-tax saver) I can continue for the next 5 years or more so that I will stop the rest of them?

Below is the list of funds and the investment we are making per month:

Funds — Amount per month

  • HDFC Top 100 — 20,000
  • Canara Robeco Emerging Equities   — 20,000
  • Mirae Asset Emerging Bluechip Fund — 5,000
  • SBI Gold Fund- Dir Plan Growth — 5,000
  • Axis blue chip direct — 5,000
  • Quant Mutual Fund — 8,000
  • DSP BlackRock Tax Saver — 2,000
  • Mirae Asset Tax Saver Fund — 5,000
  • SBI small cap — 10,000
  • Axis Mid Cap Fund — 5,000
  • Mirae Asset Healthcare Fund — 7,000
  • PGIM India Midcap Opportunities Fund — 7,000
  • Tata digital india fund — 10,000
  • Parag parikh flexi cap fund — 5,000
  • axis growth opportunities fund — 5,000
  • ICICI Prudential Asset Allocator Fund — 5,000

Omkeshwar Singh: The funds that can be continued (Non Tax Saver) are 1, 2, 3, 6, 9, 10 and 14

Harshit Shah: Am 34 years old doctor working in one of the tertiary care hospital in Mumbai. I need suggestion regarding investment in mutual fund for long term may 15-20 years. Monthly can contribute around 20k. Currently am investing in Tata Digital India fund direct growth and quant tax plan direct growth. Awaiting your suggestions

Omkeshwar Singh: The current investments are in decent funds and if require you may add a couple from the below:

– Samco Flexi Cap Fund – Growth

– Axis Esg Equity Fund Regular Growth

– Uti Flexi Cap Fund – growth

– Hdfc Index Fund – Sensex Plan -Growth

If you want Mr Singh’s advice on your mutual fund investments, please mail your questions to [email protected] with the subject line, ‘Ask MF Guru‘, along with your name, and he will offer his unbiased views.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

Read more of Omkeshwar Singh’s responses here.

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