'Want regular income for next 20 years from Rs 4L'

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

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Vineet Kathuria: I started investing in mutual fund back in 2006 with very small SIP amounts and I am 41 now. Currently, I have a MF corpus of approx 30 lakh, with SIP investments in following schemes, though i myself feel i have invested in multiple fund houses or similar portfolios and need your help or guidance with consolidation and then keep a target of 2.5 to 3 crore in next 15 years through Mutual fund only.

Currently I am investing 32500 per month through SIPs only.

Omkeshwar Singh: The funds that can be continued are 15, 16, 26, 27, 28, 29, 30, 32 and 33; 27, 29, 30, and 33 being debt funds and 15, 16, 28 and 32 being equity funds.

Ayush Pradhan: Hello sir, I'm 29 years old and I'm a beginner at mutual funds. I'm looking for 2 crore corpus within a timeline of 15 years. Currently I have invested in:

• Axis small cap fund direct growth
• Icici Prudential small cap Fund direct plan growth.

And I am considering investment in:

• Canara Robecco small cap fund Direct growth
• Nippon india index fund.

Kindly suggest how much to invest and where to invest to reach my goals.

Omkeshwar Singh: Rs 2 crore in 15 years would require monthly investment of Rs 32,500 in these 4 funds.

Baiju Mohan: I am 33 years old. Planned to get 1 crore corpus in next 15 years.

Currently, I invested in below funds: 

1. Nippon idia large cap direct growth - sip 2500 per month ( current value 1lakh)

2. Icici prodential technology direct plan growth - lumpsum 1 lakh (current value 1.30 l)

3. Icici prodential MN find - lumpsum 10k( current value 18k)

4. Icici mnc fund direct growth - lumpsum 20k (current value 20k)

5. Kotak nifty index fund direct growth - sip 1000 (current value 14k)

Could you suggest what changes I need to do in current portfolio to achieve 2 crore corpus in next 15 years?

Omkeshwar Singh: A monthly investment of Rs 16,500 is required to create a corpus of Rs 1 crore.

Below funds can be considered:

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• HDFC Index Fund – Sensex plan
• UTI Flexi cap Fund

Vivekananda Kamle: I recently turned 30, unmarried. Started investing in MFs recently. The following are my selections:

1. Quant Mid cap fund - 3000

2. ICICI prudential nifty next fifty - 2000

3. Mirae asset emerging bluechip - 1500

4. Axis small cap fund - 1500

Apart from this, I invest 5000 in NPS aggressive allocation voluntarily. I’m also planning to switch to NPS from current EPF for both employee and employer contributions.

Above investments (including EPF) account to 20% of my net pay and I plan to continue to keep investing 20% of my net pay over the years. I’m looking to build a retirement corpus. What would be a decent retirement corpus and should I make any changes?

Omkeshwar Singh: No changes required. Rs 8,000 monthly investment can create a corpus of Rs 1 crore, with step -up (20% of net salary will increase every year) the corpus will be much more!

Pallab Mishra: Kindly check and advise me on my portfolio below.

1. PGIM India Flexicap Fund- 5000 pm
2. Axis Long Term Equity Fund Growth (ELSS)- 10000 PM
3. Motilal Oswal Nasdaq 100 FOF Regular Growth- 10000 lumpsum
4. Nippon India Small Cap Fund- 5000 pm
5. ICICI Prudential Technology Fund Growth- 2000 pm

Omkeshwar Singh: These are good funds, no changes required.

Ankit Gupta: I'm 38 years old and have been investing since 7 years. I have accumulated 35 lakh in my MF portfolio. Presently I'm investing in following funds/ govt schemes monthly:

1. Nippon small cap- 25000

2. SBI small cap- 10000

3. Parag parekh flexi cap- 15000

4. Mirae asset emerging bluechip- 14000

5. Quant Absolute fund- 14000

6. Sukanya samridhi- 4000 

7. PPF- 40000( present corpus 60 lakh)

I intend retiring after 7 years at the age of 45. I am expecting to achieve a corpus of Rs 3 crore including both MF and PPF.

Kindly advice sir if my investments are in line or do I need to do something else.

Omkeshwar Singh: PPF: corpus will be Rs 1 crore

SS: Corpus Rs 4 lakh

MF: Corpus will be Rs 1.45 crore

Total in next 7 years will be nearly Rs 2.5 crore.

Lav Manocha: One of my family members (non - senior citizen) has liquid 4 lakh in FD. He wants a regular income for next 20 years from this amount.

Would you suggest SWP? If yes, please guide how to work on it.

Key goal is preservation of capital and beat FD returns.

Also please inform me if my answer is published online so that I can check for same 

Omkeshwar Singh: Yes, SWP can be used for regular income, the investment to be made in 4 funds of Rs 1 lakh each.

• HDFC short Term Fund
• Aditya Birla Sun life Corporate Bond Fund
• Edelweiss Balanced Advantage Fund
• ICICI Pru Balanced Advantage Fund

The withdrawal must be under 7% of the corpus for corpus to be available for 20 years and also grow on the initial corpus.

Snehasish Ghosh: I am 34 years old currently having one mutual fund investment in mirae asset blue chip of Rs 6000 per month.

Could you pls advise some good mutual fund? I am planning to put another 10k to 15k per month.

Omkeshwar Singh: Below funds can be considered:

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• HDFC Index Fund – Sensex plan
• UTI Flexi cap Fund

Considering Rs 21,000 monthly investment, the corpus that can get created in 20 years will be Rs 2.8 crore

Sameer: Dear Sir, Greetings! I am 49 Year old salaried person & looking forward to seek yours advice in context of mututal fund investments. I have been investing since 2016. Kindly refer portfolio:

1) Axis Blue chip fund – Rs 1500
2) Mirae Asset Emerging blue chip fund – Rs 2000
3) Nippon Large Cap – Rs 1000
4) Kotak Standard multicap fund – Rs 2000
5) L& T Large & Mid cap fund – Rs 1500

My target is to generate maximum as I expect to be active for next 10 to 15 years. Also planning to add Canara Robecco emerging equities fund.

Also requested to guide for more funds that can be added in the future.

Kindly share guidelines.

Omkeshwar Singh: 6 funds are sufficient, no need to add any funds.

Kunal Bapna: Thank you for your advice. I have a monthly investment capacity of Rs 30,000, which can be increased by 2% per year. My aim is to continue for 20 years with goals of making maximum possible corpus for family settlement.

I request you to kindly advice on the same with the best funds and allocations in each. 

Omkeshwar Singh: Below funds can be considered with equal allocation:

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• HDFC Index Fund – Sensex plan
• UTI Flexi cap Fund

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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.

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