MF Guru: 'I want to invest Rs 500 pm in MFs every month'

'I want to invest Rs 500 per month as SIP for 5 years. Would it be beneficial to me after 5 years?'

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

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Shrinivas Naik: I am very happy to ask about my investment Plan. I hope it will help my investments. Currently I am investing Rs 5000 in the following Mutual Funds from the last 1.5 years.

Omkeshwar Singh:

1. Can I continue the above investment for the next 10 years? 
YES

2. I planned to Increase SIP 2000 more monthly kindly suggest.

In the same funds the increase can be made; no need for any further funds.

3. Need any changes in MF Kindly Suggest.

No need

AMIT GUPTA: I am planning to start investing in Intelligent Advisory Portfolios (IAP). Kindly suggest, is this a good option to invest in. If yes, also, suggest which product needs to be selected or in which mode lump sum or SIP.

Omkeshwar Singh: I would not be able to comment on the same.

Tushar Dey: I'm a beginner. I want to invest a small amount of Rs.500/-per month as an SIP for 5 years of ICICI. Kindly suggest would it be beneficial to me after 5 years?

Omkeshwar Singh: Yes, please start Investing

John Michael: Kindly review my Portfolio:

Omkeshwar Singh: Please continue

Vivek Bhuta: I am 47, self-employed and have the following SIPs under myself, wife and daughter since 3 years.

Please suggest whether to continue same or add/delete any to prepare for a corpus of 2 Cr for retirement, 1 Cr for daughter education and 1 Cr for daughter’s wedding. If need to increase the SIP contribution to achieve the target, which ones to top up or add? 

Omkeshwar Singh: Considering tenure as 16 years for retirement (47 years old) and last 3 years (3+13) for retirement, daughter’s education and marriage will be much earlier: 5-8 years (education) 10 years marriage

-        For Retirement --- Rs. 32,000 SIP for 16 years

-        For Daughter’s Education (considering 8 years) – Rs. 60,000 SIP for 8 years

-        Daughter’s Marriage ( 10 years) – Rs. 40,000 SIP for 10 years

Hence Rs. 1.32 lakh SIP per month is required, or, start with lower amount with 10k to 15k top up every year

Devarajan Deva: My monthly sip 5000 rs from July (I am new). Please tell me am I doing the right investment. I am 51 and I do have income from building (25000) and bank FD.

Parag parekh flexi

Pgim flexi cap

Axis small cap

Icici prudential tech

Edelweiss balanced advantage fund

Tata digital fund

Icici Nasdaq 100 index fund

iifl focused fund(2000)

All growth direct.

Omkeshwar Singh: All are decent funds, please continue

B Umakanth: Recently, I have taken 30,00,000 rupees as home loan with tenure of 20 years. However I want to close the loan ASAP. I want to pre-close the loan in 10 years. How much amount should I invest monthly and also please suggest what are the best MFs to invest to meet my goal.

Target amount is Rs 20,00,000.

Omkeshwar Singh: Kindly let me know the tenure you would like to invest, considering it 10 years, These funds can be considered -- each SIP of Rs. 2000 i.e. Rs. 8000 per month for 10 years

-        Axis ESG Fund - Growth

-        Samco Flexi-cap Growth

-        Parag Parekh Flexi cap Growth

-        SBI Magnum Global Fund - Growth

Harish K Iyer: I am 37 years old. I have been investing in Mutual Funds since June 2017. I am an aggressive investor ready to take risks. My investment horizon is long term. I am investing for my Son's higher education which is 13 years away and also for my retirement which is 23 years away. My portfolio comprises of the following mutual funds.

1) HDFC Midcap Opportunities fund Regular growth - ₹4100/- per month with top up of 10% every year. 

2) L&T hybrid equity fund Regular growth - ₹5000/- per month with top up of ₹500/- every year. 

3) Aditya Birla Sun Life pure value fund Regular growth - ₹4500/- per month with top up of ₹500/- every year. 

4) L&T Midcap Fund Regular growth -₹6000/- per month with top up of ₹500/- every year. 

5) L&T Emerging Businesses Fund Regular growth -₹6000/- per month with top up of ₹500/- every year. 

6) L&T Tax Advantage fund Regular growth -₹4500/- per month with top up of₹500/- every year. 

7) Aditya Birla Sun Life Tax Relief '96 fund Regular growth - ₹5000/- per month with top up of ₹500/- every year. 

8) UTI Flexi Cap fund Direct growth - ₹1000/- per month. 

9) DSP Midcap fund Direct growth - ₹1000/- per month with top up of ₹500/- every year. 

10) DSP Equity Opportunities fund Direct growth - ₹1000/- per month with top up of ₹500/- every year. 

11) DSP Flexi Cap fund Direct growth - ₹1000/- per month with top up of ₹500/- every year. 

12) Aditya Birla Sun Life Equity Advantage fund Direct growth - ₹1000/- per month with top up of ₹500/- every year. 

13) Aditya Birla Sun Life Flexi Cap fund - Direct growth - ₹1000/- per month with top up of ₹1000/- every year. 

14) ICICI Prudential Technology Plan Direct growth - ₹1000/- per month. 

15) Nippon India Small Cap fund Direct growth - ₹1000/- per month with top up of ₹500/- every year. 

16) Kotak Emerging Equity fund Direct growth plan - ₹1000/- per month with top up of ₹500/- every year. 

17) L&T Flexi Cap fund Direct Growth plan - ₹1000/- per month. 

Am I on the right track/path of investing? Please suggest necessary changes in the above portfolio if any or should I continue with the above mutual funds.Also suggest which funds should I Add/Remove from the above portfolio. 

Omkeshwar Singh: Too many funds, keep 1 fund in same / similar category. No further addition please! 

Anurag Aggarwal: I am 43 years old. Please advise changes in my portfolio if required. I want to build a corpus of 3-5 crores in next 10-12 years. I want to start SIP of Rs. 10000/- PM via Direct Plan method, please suggest suitable Mutual Funds. My objective is wealth creation and not fulfilment of any specific objective. I am making following investments in Mutual Funds:

Omkeshwar Singh: Please continue

Ravindra Dhulkhed: I am 40 and would like to start Sip. Monthly around 25k to 40k. Looking at returns in range of 15 to 30%. Please advise some MFs.

Omkeshwar Singh: Return expectations are pretty high; ideally it should be Risk Free rate (10 years Govt Bond rate) + Equity Risk Premium.

These funds can be considered

-        Axis ESG Fund - Growth

-        Samco Flexi-cap Growth

-        Parag Parekh Flexi cap Growth

-        SBI Magnum Global Fund - 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.

Read more of Mr Omkeshwar Singh's responses here.