MF GURU: 'Will too many funds reduce my final gain?'

'I am investing Rs 12,500 in SIPs every month. I have a fear that over-diversification may reduce my ultimate return.'

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

---

Kumar Goutam Das: I am 37. Currently, I am investing Rs 1,000 (SIP) in each of the following Mutual Funds. I want to stay invested till I am 50. Kindly see my portfolio and make suggestions.

1. SBI Magnum Global Fund

2. SBI Magnum Equity ESG Fund

3. ICICI Prudential Technology Fund

4. Nippon India Pharma Fund

5. HDFC Gold Fund

6. Motilal Oswal Nasdaq 100 FOF Scheme

7. Axis Focused 25 Fund

8. UTI Flexi Cap Fund

9. UTI Transportation and Logistics Fund

10. DSP Natural Resources and New Energy Fund

11. Axis Midcap Fund

12. Canara Robeco Emerging Equities Fund

13. DSP Flexi Cap Fund

14. ICICI Prudential Commodities Fund

15. Edelweiss Recently Listed IPO Fund

16. Nippon India Multi-Asset Fund

17. Motilal Oswal MSCI EAFE Top 100 Select Index Fund

Omkeshwar Singh: You have too many funds in your portfolio; kindly consolidate to 4-5 funds

Imran Shaikh: I am cumulatively investing Rs 12,500 in sip every month. I have a fear that over-diversification may reduce my ultimate return. I am currently aged 36, started investing 3 year back and plan to achieve 2.5cr till age 50 through overall investment as below. Please suggest should I add more mutual funds or continue with the one I have by increasing amount. 

Omkeshwar Singh: No need to add any more funds, just increase amount in these funds.

Anish Deshpande: I am 28 years old. I have started some SIPs in this year itself. Currently I am investing ₹9500 per month. I want to take this up to ₹20000 per month. I would stay invested for 15 to 20 years at least. Let me know if I need to change these MFs or add some new ones or just increase the amount in these funds. Thanks in advance for your return. Current SIPs:

1. Axis Focussed 25 Fund - ₹2000

2. Mirae Asset Emerging Bluechip Fund - ₹2500

3. Parag Parikh Flexi Cap Fund - ₹3000

4. Kotak Nifty Next 50 Fund - ₹1000

5. Kotak NASDAQ 100 FOF - ₹1000

These are fine -- No need to increase funds, amount can be increased in these funds only.

Vivek G Ravindranath: My monthly income is Rs 80,000. Out of which, I can spend upto Rs. 15,000 for MF SIPs. I am planning for direct funds. Could you please suggest which funds to invest in?

Omkeshwar Singh: You may opt for some or all of these funds:

- Axis ESG Fund - Growth

- Samco Flexi-cap Growth

- Parag Parekh Flexi cap Growth

- SBI Magnum Global Fund - Growth

Biswajit Das: Sir I am 26 years old now doing my job I have started investing in mutual fund from since 1year. I have invested in these MFs. Please review this funds can I invest on them for more 5-6 years? SHOULD I have to increase my SIP AMOUNTS in the existing MFs? PLEASE SUGGEST SOME MORE FUNDS TO INVEST FOR LONG TERM. 

1) TATA DIGITAL INDIA FUND DIRECT GROWTH - 1000

2) AXIS SMALL CAP FUND DIRECT GROWTH - 2000

3) ICICI PRUDENTIAL TECHNOLOGY DIRECT PLAN GROWTH – 2000

Omkeshwar Singh: These are decent funds, please continue

Further you may consider a few of these funds:

- Axis ESG Fund - Growth

- Samco Flexi-cap Growth

- Parag Parekh Flexi cap Growth

- SBI Magnum Global Fund - Growth

Ramesh Pandey: I want to start SIP with amount of 8-10 k and want to save taxes along with a good return. The time period of investment can vary. Please suggest some SIPs. 

Omkeshwar Singh: 

- Axis ESG Fund - Growth

- Samco Flexi-cap Growth

- Parag Parekh Flexi cap Growth

- SBI Magnum Global Fund - Growth 

Aman Chaudhary: I am 29 years old. I am doing the below SIPs since last year. Should I change any of these? I am bit concerned about the flexi fund and its return in last six month.

Aditya birla frontline - 1000
Aditya birla digital fund direct - 4000
Aditya birla Sun life Flexi cap – 3000

Omkeshwar Singh: For flexi cap you may consider these

- Samco Flexi-cap Growth

- Parag Parekh Flexi cap Growth

Denish Patel: I am 31. Do I need to change my current SIPs?

1. ICICI prudential large n mid cap - 10000 in Freedom SIP

2. Parag Parikh flexi fund-1000

3. Tata digital direct fund- 1000

4. HDFC next nifty 50 -1500

5. Axis Long term - 1500 

Also, I want to start SIPs of Rs 3000. Please suggest some good MFs. Should I start new or add in any above? 

Omkeshwar Singh: No need to change the current SIPs and for further investment you may consider these:

- Samco Flexi-cap Growth

- Parag Parekh Flexi cap Growth

Ravi Shankar: I have recently started investing in MF. I am 61 years old without any liability. My focus is on growth. Please advise: should I continue or redeem and/or invest in more in other MFs? This is my portfolio:

1. AXIS ESG EQUITY (G)- DIRECT - Rs.3000/-
2. KOTAK EMERGING EQUITY FUND (G)- DIRECT - Rs.3000/-
3. MIRAE ASSET MIDCAP FUND (G) DIRECT - Rs.3000/-
4. SBI MAGNUM GLOBAL FUND (G)-DIRECT. - Rs.3000/-

Omkeshwar Singh: These are good funds, please continue

Sandeep Negi: I have one query: I want to invest around Rs 5 lakh lump sum in MFs -- and not in SIPs -- for a horizon of 5 years. Please suggest any particular fund I should focus on. 

Omkeshwar Singh: You may consider the below funds

- Samco Flexi-cap Growth

- Parag Parekh Flexi cap Growth

---

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 Omkeshwar Singh's responses here.