Ask MF Guru: 'How to make 15% returns in 5 yrs in MFs?'

'I started reading your MF articles regularly so requesting your guidance as I would like to start investing in MFs'.

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

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Sudhir Bhende: I started reading your MF articles regularly, so requesting your guidance as I would like to start investing in MFs.

I am 55 years old, working in an IT company and would like to start monthly SIPs for 35K and lump sum investment of Rs 5 lakhs and would be looking for 15 per cent plus return over five years.

Please let me know whether I can avail your regular investment expertise, if the option is available.

Omkeshwar Singh: It's better to start with staggered investments, instead of a lump sum.

A few schemes that may be considered are:

 

Prashant Kumar: I am investing Rs 7,000 per month in the following SIPs since 2018 and continuing in the same portfolio.

I want to exit from under-performing funds and start investing in a new SIP portfolio.

Please suggest a better option for me. Also, will I get tax benefit now also from the ELSS funds as the three-year term lock-in period is over?

L&T Midcap Fund (Rs 2,000), Motilal Oswal Long Term Equity Fund (Rs 3,000), Aditya Birla Sun Life Tax Relief 96 Fund (Rs 2,000).

Omkeshwar Singh: A few schemes that may be considered are:

 

Aditya Singh: I am 21 years old. I am currently in university and am already investing in equity mutual funds with the goal of wealth creation.

I am currently capped at a monthly SIP of 10k. My portfolio is:

I have invested nearly Rs 2 lakhs in the above funds over the past two years with my portfolio's XIRR being 48.52 per cent.

I believe much of this is due to the current market highs.

What changes do you recommend to improve my portfolio in terms of securing current and future gains?

Omkeshwar Singh: You may continue with the investments, if required you may book 30 per cent profits.

 

Ashish Kinger: Hope this mail finds you well!

I have SIPs in the following schemes

My goal is to create wealth by doing SIPs for a long time.

Kindly let me know if these schemes are good for the long run or are there are better alternatives to move or rejig in my MF portfolio.

Also, I am thinking for my wife to invest SIPs of 5k monthly each in SBI small-cap or mid-cap fund and quant ELSS fund.

Kindly suggest to me whether these schemes are good or should I select something else.

Omkeshwar Singh: Please continue. Some portion of investments can be in small-cap, mid-cap and ELSS.

 

Vijay Parmar: Are these below the best mutual funds to invest in:

If I invest in nine mutual funds, the lump sum amount Rs 1 lakh in each fund, then how much will I get after 20 years. 

Omkeshwar Singh: Too much exposure to small caps will be there. Also it is advisable to invest via SIP/STP route and not at one go via lumpsum, as the markets are at all time high.

 

Girish Negi: Sir I am 29 years old and invested in Aditya Birla Sun Life Tax Relief 96(D)-ELSS by Rs 3,000 per month and Mirae Asset Tax saver Fund (D) ELSS by Rs 7,000 per month. Total Rs 10,000 per month SIPs.

I want to invest around Rs 10,000 to Rs 15,000 per month additionally in other equity MFs that can yield high rate of return in 10 to 15 years.

Please suggest the MFs which also offer me a diversification in stock from my existing MF investment.

Omkeshwar Singh: A few schemes that may be considered are:

 

Chitvan Sethi: Please advise on the best MFs to invest in.

Omkeshwar Singh: A few schemes that may be considered are:

 

Parag Chaudhary: I want to start investing in MFs.

I am thinking of investing every month at an appropriate time, especially when the market is going down, instead of regular SIPs. And if I don't get or miss a chance to invest in a whole month, then I can invest between 25th to 30th of every month.

Do you think it will be better to invest in MFs instead of SIPs?

Omkeshwar Singh: Timing the markets is very difficult, therefore it is advisable to invest via the SIP route, and then long-term appropriate averaging happens.

 

Srikanth Vadrevu: Hope you are doing well. Can you advise me on the best mutual funds in 2021 for both ELSS and long-term growth?

Omkeshwar Singh: Axis Long Term Equity Fund Growth is good for both tax benefits as well as long-term growth.

 

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If you want Mr Singh's advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in 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.

Feature Presentation: Ashish Narsale/Rediff.com