'MF Guru: Suggest a portfolio for wealth creation'

Do you have mutual fund queries?

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

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.

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Abhinav Dhiman: I have been investing in 2 SIPs (Sbi Small cap and Sbi Magnum equity) Rs 2500 each from 2018. Right now I am 31 years. Now I am planning to start 2 new SIPs of Rs 2500 (making a total of Rs 10,000 in SIPs). My plan is to make a good corpus for my retirement at 60. Kindly suggest 2 more SIPs to invest and whether my current investment is good enough?

Omkeshwar Singh: The two schemes that can be considered are:

HDFC Index Fund – Sensex Plan – Growth

UTI Flexi cap Fund – Growth

In 29 years the corpus that can be created by monthly investment of Rs 10,000 will be nearly Rs 4 Crs.

Shimhachalam Sandhya Rani: I am a government employee aged about 42 and new to mf. My aim is wealth creation. Can you please suggest a bucket of portfolio in which I can invest from January 2023 with an annual 10 % increase in sip for next 10 to 15 years or above?

Omkeshwar Singh: Below fund can be considered:

HDFC Index Fund – Sensex Plan – Growth

UTI Flexi cap Fund – Growth

Axis ESG Equity fund – Growth

Samco Flexi cap fund – Growth

Priyanka Kunder: I have following monthly investment of a total of Rs 15k which was started recently in Sep 2022. Can u confirm how much corpus will I generate in 10 years with these SIP investments? How much more do I need to invest additionally monthly to get 1 cr if the current SIP is not enough to reach the target? 

1. Parag parekh flexi 1k per month

2. Mirae asset large cap 2 k per month

3. Kotak emerging equity 2k per month

4. Hdfc small cap 2k per month

5. ICICI Blue Chip 2k per month

6. Motilal Oswal flexi cap – 6k per month        

Omkeshwar Singh: Funds are decent and the corpus that can get created with above investment in 10 years is Rs 37 lakh therefore for a corpus of Rs 1 cr in 10 years, monthly investment of Rs 40000 / - or additionally Rs 25000 per month.

Vikas Chhabra: Randomly google suggested me ur ask mf and read this page many times, today i have an question regarding my investments.

Mainly i am investing for my retirement but i want to spare something for my 2 daughter's marriages, but not able to decide how. I have created two folios myself without any knowledge, read google, watched youtube and started investing... First folio, all direct fund sips:

1. axis nifty 100 index-500

2. parag parikh flexi-1000

3. axis small cap-500

4. nippon small cap-500

5. icici midcap 150 index-500

6. icici nasdaq 100-100

7. icici technology-500

Total-4000rs

Second folio with wife id:

1. pgim india flexi cap-1000

2. axis small cap-1000

3. nippon small cap-1000

4. axis nifty 100 index-lumpsump only

Total 3000rs

Started from 500rs month and reached 7000 in 1.5years, have plan to step up sip by 5-10% every year now.

Sir, daughters age are 13 and 7. didnt know about sip and mf 2 years back, else i wud have done this from many years.

Kindly suggest me best for future. 

Goals r daughters education (priority)

Daughters marriage (secondary)

Retirement (last but very imp.)

Omkeshwar Singh: The question is in detail however the corpus required and when it is required, kindly let know these 2 details for proper planning.

Murali T: I am 36 years old working in the IT field and have 25k/ month SIP running since 13-04-2021. I am planning to invest for the next 20 years for my retirement, House Purchase, and as well as my daughter's (current age 5) education/marriage.

Motilal Oswal Midcap Fund - Gr: 2,500

Edelweiss Mid Cap Fund - Regular Gr: 5,000

Quant Small Cap Fund - Gr: 5,000

Canara Robeco Flexi Cap Fund - Gr: 5,000

Mirae Asset Emerging Bluechip Fund - Gr: 2,500

Parag Parikh Flexi Cap Fund - Reg Gr: 5,000

The current value is: 452661

I want to purchase a house before my daughter turns 12 years old. Kindly advise me if I need to increase my SIP or change any plans.

Omkeshwar Singh: The corpus that can be created by SIP of Rs 25K in 7 years is Rs 35 lakh.

Current value of Rs 4.5 lakh will grow up to Rs 10 lakh, hence total Rs 45 lakh will be available for the home purchase.

Child education and marriage corpus and tenure is required

For Retirement in 13 years the corpus that can get created by monthly investment of Rs 25K is Rs 1 cr.

Shyleswari: I am 50 years old, and planning to invest in either SIP or Mutual Funds. 

At the same time, I have taken too many loans like home loans, top ups on home loans for my daughters abroad education, car loan and personal loan.

Please suggest how to invest in these financial products and get good returns to secure retired life for myself and my husband (both of our income take home is 1.3lakh and the debts we are paying 90k).

Omkeshwar Singh: Kindly let know the monthly living expenditure

S A Digambar: Respected sir, Can a non-listed public limited company invest in SIP. Please also let me know can a company make one time investment in mutual funds

Omkeshwar Singh: Companies can invest in mutual funds by either mode, SIP or lump sum.

Munendra Singh: I have a number of SIPs (in various MFs) worth 1 lakh per month. I want to consolidate the SIPs as below:

Large Cap: 15 K

Mid Cap: 30 K

Small Cap: 15 K

Sector/ tech fund: 10 K

Contra fund: 15 k

Flexi cap: 15 K

Please let me know if I need to correct this scheme. Also, please tell me one fund in each of the above categories to invest in. I can invest for more than 10 years and have no immediate liability in sight.

Omkeshwar Singh:

Large Cap: DSP top 100 fund - Growth

Mid Cap: Motilal Oswal Mid cap Fund - Growth

Small Cap: Nippon India Small Cap Fund - Growth

Sector/ tech fund: SBI Technology Opportunities fund - Growth

Contra fund: Kotak India Eq Contra Fund - Growth

Flexi cap: UTI Flexi Cap fund - Growth

P M: I have been investing in MF from last 5 years via SIP regularly with intermittent top ups. My portfolio consists of{

Mirae Asset Tax Saver Fund Direct-Growth

Mirae Asset NYSE FANG+ ETF FoF Direct

Nippon India Gilt Securities Fund Direct

Tata India Pharma & HealthCare Fund Direct Growth

Navi US Total Stock Market FOF Direct - Growth

HDFC Mid-Cap Opportunities Direct Plan-Growth

ICICI Prudential 50 Nifty Index Direct Plan-Growth

Canara Robeco Emerging Equities Fund Direct-Growth

Mirae Asset Emerging Bluechip Fund Direct-Growth

SBI Banking & Financial Services Fund Direct-Growth

IIFL Focused Equity Fund Direct - Growth

Motilal Oswal S&P 500 Index Fund Direct-G. 

Please guide me whether my port2needs any correction.

Omkeshwar Singh: Please continue

Nitish Kumar: I want to create a corpus of 5-10 cr in next 10 years. I have paused my previous sips and started new sips with a financial firm. They are listed below.

1. IIFL focused Equity fund(G) - 25000rs SIP monthly started 

2. Canara Bluechip Equity fund(G) - 25000rs SIP monthly started

3. SBI Contra (G) - 20000rs SIP monthly started

4. SBI Smal cap fund (G)- 10000rs SIP monthly

5. Canara Roberco Small cap- 10000rs SIP monthly 

I intent to save 90K to 1 L a month. what is the maximum corpus I can create with this saving in next 10 years? Also PPF of 1.5L annually.

I have a lump sum of 25L to 30L annually salary. Please suggest and guide me if I can do something more better. PPF 1.5L anually till date 8.40lakh. Previous SIPs - 10lakh

Please guide.

Omkeshwar Singh: Funds are good, please continue. The corpus that can get created by investment of Rs 90000 is Rs 2.2 cr in 10 years.

PPF is fine.

Read more of Omkeshwar Singh's responses here.

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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.

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