'Can Rs 20k per month in MFs help me get Rs 50 lakh?'

Do you have mutual fund queries?
Please ask your questions here and Ulhas Joshi, CEO, RankMF, will answer them.

NANDKISHOR: Hi Can you please suggest good mutual funds that I can start on immediate basis from my demat account in SBI Securities?

Hello Nandkishor. Thanks for writing to me. You can consider investing or starting SIPs in:

1. Edelweiss NIFTY 100 Quality 30 Index Fund

2. SBI Focused Equity Fund

3. DSP Quant Fund

4. UTI MNC Fund

I am recommending these funds assuming you are comfortable with the risks associated with equity funds and looking to invest for the long term.

If you provide me other details like your risk appetite, time horizon and goals, I may recommend other schemes.

DILIP: Sir, I want to invest Rs 20k per month my goal is to get Rs 50 lakh. Where i should invest and how long in mutual fund?

Hello Dilip and thanks for writing to me.

Assuming your investments compound at around 12 per cent, you will be able to create a corpus of Rs 50 lakhs in around 11 years.

You can consider starting SIPs in:

1. Nippon India Multi Asset Fund: Rs 4,000

2. Samco Flexicap Fund: Rs 4,000

3. DSP Quant Fund: Rs 4,000

4. SBI Focused Equity Fund: Rs 4,000

5. Canara Robeco Bluechip Fund: Rs 4,000

Annually stepping up your SIPs by 10 per cent or more will help you achieve your goal amount faster. Rebalancing your portfolio is also essential to ensure you are on the right track to achieve your goal.

Ashokan: I entered my 60 on 1 Aug 2023.
I could invest at least Rs 50k per month from now for a minimum of 10 years.
Suggest suitable investment idea for a long term retirement fund.
This Rs 50k includes a Rs 12k of rental income. No EMIs to pay. Some Rs 2 L in bank balance.
No retirement for me compulsorily. Can work as long as I wish. I am fit enough to work for at least for 20 years.
Rs 1 cr corpus, I am planning. Guide me suitably.
Thanks in advance

Hello Ashokan and thanks for writing to me.

Assuming that your you are able to generate XIRR of around 12 per cent, you will be able to create a corpus of around Rs 1.16 crore after 10 years.

You can consider investing in small cap and midcap funds for around five to seven years and then switch to large cap balanced advantage funds for the latter part of your journey. Small and midcap funds, while generally more volatile than large cap and balanced advantage funds, can offer higher returns.

Now, you can consider starting SIPs in:

1. DSP Midcap Fund: Rs 10,000

2. SBI Magnum Midcap Fund: Rs 10,000

3. Kotak Emerging Equity Fund: Rs 10,000

4. HSBC Midcap Fund: Rs 10,000

5. UTI Midcap Fund: Rs 10,000

After a period of say five to seven years, you can stop investments in these schemes and then begin investing in BAF and large cap funds.

Stepping up your SIPs every year will help you create a larger corpus.

Periodic rebalancing of all schemes you are investing in is essential to ensure you are on the right financial track.

I recommend you consult a financial planner who can help you create a robust plan keeping your needs in mind.

Anonymous: Sir pls advise on the recently launched mutual funds of Mirae Asset Global X Artificial Intelligence and Technology ETF Fund of Fund and Mirae Asset Global Electric & Autonomous Vehicles ETFs Fund of Fund.
Should I go in SIP in these mutual funds or continue SIP in already existing large, midcap small, funds.

Hello and thanks for writing to me.

The funds you mention are thematic funds. Thematic funds have the potential to give high returns but as the focus area of the fund is narrow and restricted, the fund will only invest in companies operating in the particular theme.

If you build a concentrated portfolio comprising only in thematic/sectoral funds and if there is a downturn in that particular theme, then you may see your portfolio growth stagnate for some time.

I recommend that you consult a financial advisor who can help you create a diversified portfolio after understanding your own goals and risk appetite.

Apurv: Hi! I am a retired person 62-yr-old.
Recently I sold my equity portfolio, so I am having a spare corpus of about Rs 60-70 lakh.
I had kept this amount solely for equity/MF investments as I had also invested in FDs/Gold bonds separately.
I want to invest it in an instrument which can give me less risk/good returns (above FDs and inflation beating), say about 9-10 % to the least in next three year and even better returns in the long run in my seventies/eighties.
Please illuminate me on the following:
1. Is it desirable to put this entire amount in MFs or there should be some direct investment in equities also?
2. If yes, what should be the ideal mix of portfolio for me? Should it have equity (Large cap /Mutli cap) or Balance Hybrid funds will be more suitable from the risk angle as I am a retired person? Please suggest an ideal mix with category & names of fund with the amount to be invested. 3. If no, then please suggest alternatives.
Thanks & Regards Apurv Chandra

Hello Apurv. Thanks for writing to me.

Note that I only discuss mutual funds in this column and so will not advise for or against any other asset classes.

To generate inflation beating returns, given that you are retired and would not like to take undue risk, I believe a mix of balanced advantage funds and multi-asset funds will be ideal to invest in for a period of around three years.

Starting SWPs from those schemes after three years will help you meet living expenses while your corpus continues to grow.

You can consider investing your funds equally in:

1. ICICI Prudential Regular Savings Fund

2. SBI Conservative Hybrid Fund

3. Tata Balanced Advantage Fund

4. Aditya Birla Sun Life Balanced Advantage Fund

5. Nippon India Multi Asset Fund

• You can ask rediffGURU Ulhas Joshi your questions HERE.

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.