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MF GURU: '30K per month can create 80L in 10 years'

By OMKESHWAR SINGH
September 02, 2022 08:54 IST

'My target is to invest for 10 years to accumulate a sum of 1 cr. Let me know if I need to change anything.'

Illustration: Dominic Xavier/Rediff.com

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

 

Sidha Binayak: My age is 34 years. Out of my 180k monthly income, I am investing in the below funds monthly wise. Kindly guide me on whether the selection is good to have maximum return? I will add 10% to each SIP every year. In addition to this I have a home loan for which 50000 is spent.

I have no problem with a high risk and high return portfolio.

Franklin India Prima Direct Fund-Growth -- 2000

Quant Active Fund Direct-Growth -- 6500

PGIM India Midcap Opp Fund Direct-Growth -- 1000

HDFC Small Cap Fund Direct- Growth -- 2000

ICICI Prudential Technology Direct Plan-Growth -- 2500

Tata Digital India Fund Direct-Growth -- 3000

Nippon India Small Cap Fund Direct- Growth -- 2500

Invesco India Growth Opp Fund Direct-Growth -- 3000

Quant Small Cap Fund Direct Plan-Growth -- 2000

Quant Tax Plan Direct-Growth -- 3000

Axis Bluechip Fund Direct Plan-Growth -- 2000

Quant Multi Asset Fund Direct-Growth -- 1000

Mirae Asset Tax Saver Fund Direct-Growth -- 1000

Quant Large and Mid Cap Fund Direct-Growth -- 2000

Quant Mid Cap Fund Direct-Growth -- 2000

Omkeshwar Singh: Funds are decent, however too many.

Atul Dogra: Recently I have started putting money randomly into MFs w/o much guidance and study.

These are the current active MF(s):

Most of above funds I have been running for minimum 2 year now, a few for more than 5 years.

I have been managing the money for short term goals, but the long term goal from these investments is to have surplus for retirement and medical emergency in future.

Please suggest the correction and guidance to manage the portfolio.

Omkeshwar Singh: Too many funds; cut it to 4 to 6 schemes. For medical emergency please have a medical / health insurance of Rs. 15 lakhs

Sujoy Ranjan Paul: I am 40 years old and can plan up to 15000 per month of SIP. I also have a home loan started 6 months ago, EMI 45000 for 20 years. 

Below is the current allocation. Kindly suggest.

Omkeshwar Singh: Funds are okay; can be continued!

Ashley Fernandes: I am 30 years young, have a 3-year-old young kid and a wife who is 30 years young.

Planning for an investment period of 15-25 years; Gradually from 15 years I'll start using my MF.

Are these MFs good? I know I've opted for many. Any suggestions?

1.  PGIM India MidCap Opportunities (G) Rs 1,000

2. ICICI Pru Nifty Next 50 Index Rs 1,000

3. Nippon India Value Rs 1,500

4. Parag Parikh Tax Saver Rs 1,000

5. HDFC Balance Advantage IDCW Payout Rs 1,000

6. Edelweiss Govt Securities Rs 1,000

7. Edelweiss Banking and PSU Debt Rs 2,000

8. IDFC Govt Securities Rs 2,000

9. Quant Small Cap Rs 1,000

10. Axis Bluechip Rs 1,000

11. Aditya Birla Sunlife Pharma and Healthcare Rs 1,000

12. HDFC Developed World Indexes FoF Rs 1,000

13. ICICI Pru Nasdaq 100 Index Rs 500

14. Tata Resources and Energy Rs 1,000

15. Edelweiss Recently Listed IPO Rs 1,500

16. Edelweiss US Technology Equity FoF Rs 1,000

17. Tata Digital India Rs 1,000

18. Franklin Feeder Franklin US Opportunities Rs 1,000

19. PGIM India Global Equity Opportunities Rs1,000

Total SIP: Rs 21,500

Omkeshwar Singh: Funds are not bad, however as you have also indicated there are too many funds, there is possibility of underperformance due to over diversification.

Neeraj Swansi: I have the below mutual fund portfolio. My target is to invest for 10 years to accumulate a sum of 1 cr. Let me know if I need to change anything. Let me know if it's good

Omkeshwar Singh: It's good, 30K per month can create a corpus of Rs. 80 lakh in 10 years.

Tanu Mittal: Our family wishes to invest in Tax Saving Schemes for tax saving purpose along with decent returns. Any good SIP with long term investment will help. Your guidance will be very much helpful.

1. Mohinder Mittal, Age 62 - 5000/month

2. Neelam Mittal, Age 66 - 5000/Month

3. Mohinder Mittal HUF - 12000/Month

4. Tanu Mittal - 5000/Month

5. Srashti Mittal - 5000/Month

Omkeshwar Singh: You may consider:

Bhavin Patel: Seen below is my current allocation in MF, I am investing in all these funds for a long term perspective of retirement. I am currently aged 41 and started investing last year when I was 40 with a time horizon of 20 years when I will be 60. Kindly advise if the funds as well as allocation is sufficient.

I have not started an SIP because I believe I can manually track the NAVs and appropriately invest at the most opportune time in the month.

Awaiting your reply.

Omkeshwar Singh: These are good funds, please continue. Rs. 25K in 20 years can create a corpus of Rs. 3.30 crs.

Himanshu Kandpal: I am a 48 year old government employee and currently investing Rs 20K SIP monthly in following funds. Investment horizon 12-15 years:

1. Franklin India Smaller Companies Fund (G):  Rs 2000/pm (SinceSept 2017)

2. ICICI Pru Bluechip Fund Reg (G): Rs 2000/pm (Since Sept 2017)

3. Kotak Flexi Cap Fund Reg (G):  Rs 2000/pm (Since Sept 2017)

4. Union Small Cap Fund Reg (G):  Rs 2000/pm (Since Sept 2017)

5. Edelweiss Mid Cap Fund Reg (G):  Rs 2000/pm (Since August 2020)  and Rs 3000/pm (Since April 2022)

6. DSP Equity Opp Fund Reg (G):   Rs 3000/pm (Since April 2022)

7. JM Value Fund (G):  Rs 3000/pm (Since April 2022)

Omkeshwar Singh: Funds are fine, please continue

Jagan Mohan: I am 48 yrs. I have some funds (around 4-5 lacks) which my father gifted me after he sold one of his small property. I want to invest the same in some good funds to get monthly returns or long term returns. I am not very good at SIP/MFs etc and normally go for fixed deposits. Please suggest some good funds. I want to divide for long term and regular returns.

Omkeshwar Singh: You may consider below funds:

Kiran Lokhande: I want to create a corpus of 10 lakh in the next 6 – 7 years for my child's education. I can invest around 10 thousand monthly. Could you please suggest which mutual funds are advisable to achieve this target?

Omkeshwar Singh: You may consider below funds, Rs. 2500 in each:

S D: I have been going through posts and thought of taking your expert advice. I am 45 years old and am looking for 4-5 cr corpus in the next 10-15 years. These are my SIPs that I am paying monthly.

1. Canara Robeco Emerging equities Reg (G): 10K
2. DSP Top 100 Equity Fund Reg (G): 5K
3. Franklin India Focused Equity Fund (G): 10K
4. HDFC Top 100 Fund (G): 7.5K
5. Mirae Asset Emerging Bluechip Fund Reg (G): 10K
6. Nippon India Value Fund (G): 7.5K

Please suggest the above and any other SIP I should have that will help me with my goal.

Omkeshwar Singh: With Rs. 50K monthly investment, a corpus of Rs. 3 crs can be created in 15 years.

The funds are fine, no need to add any more funds.


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.

You can read more of Omkeshwar Singh's responses here.


Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

While we value our readers' requests for privacy and avoid using their actual names along with the question whenever a request is made, we regret that no question will be answered personally on e-mail.

OMKESHWAR SINGH / Rediff.com

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