MFs for medium and high-risk investors

'My risk appetite is medium.'
'My goal is for long term wealth creation.'
'Can you please advise if I have to correct my fund choices?'

Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:

---

Santosh Iyer: I have investments in the following mutual funds (all growth option). Please advise whether I can continue with them or should change.

• HDFC Equity Fund
• ICICI Pru All Seasons Bond Fund
• ICICI Pru Balanced Advantage Fund
• ICICI Pru Debt Management Fund
• ICICI Pru Regular Gold Savings Fund
• ICICI Pru Sensex Index Fund
• SBI Magnum Constant Maturity Fund
• UTI Ultra Short Term Fund

Omkeshwar Singh: Continue with 2, 3, 4, 6, 7, 8

These can be considered:

Instead of 1. – Axis Bluechip – Growth

Instead of 5. – SGB can be considered and if through MFs than please continue

Yogendra Sharma: I am 62 year old, and want to invest 3-5 Lakhs in Mutual funds. I also want to invest in SIP (up to 5000 per month for 1-2 years). I shall be thankful if you can kindly give me the best possible advice. Also, advise please if I should wait (if it not a good time to invest).

Omkeshwar Singh: Rs. 1250 per scheme can be considered if Investment horizon is 5 years and above

1. UTI Flexi Cap – Growth
2. Axis Bluechip – Growth
3. Parag Parikh Flexi Cap – Growth
4. Union Balanced advantage - Growth

Prakash Tripathi: I am investing a monthly 40K in SIP, and have an investment horizon of 10+years with High Risk appetite. Please suggest any better options in my portfolio.

Omkeshwar Singh: Please continue with 2, 3, 5, 6, 7, 8 and 9 schemes; for 1st consolidate it with 6th and instead of 4th you may consider UTI Flexi-Cap – Growth.

RAJA V: My risk appetite is medium. My goal is for long term wealth creation. Can you please advise if I have to correct my fund choices? I have been investing in the following mutual funds Growth option in the following order (Name of MF - Monthly SIP)

• HDFC Balanced advantage fund - 2000 (Since 2013)
• SBI Magnum Global fund - 2000 (Since 2014)
• SBI Blue chip fund - 2000 (Since 2014)
• Axis long term equity - 7000 ( Since 2015)
• Mirae Asset Emerging bluechip - 5000 (Since 2018)
• Parag Parikh Long term equity- 10000 (Since 2020)

Omkeshwar Singh: Please continue with 2, 3, 4, 5 and 6th schemes; for 1st, you may consider Union Balanced Advantage - Growth

Himanshu Saxena: I have SIP in following funds since last 3 years should I continue or switch? I am investing Rs 5000 in Axis long term equity fund in two instalments in one month . My total investment in following Mutual Funds is Rs 10000.

I request you to please review my portfolio and give me your advice on it.

Omkeshwar Singh: Please continue; kindly be mindful that Axis Long Term Equity Fund is an ELSS and there is lock-in of 3 years for each and every instalment. If lock-in is not an issue please continue it is a great scheme for Tax planning as well as wealth creation!

Kavitha G: My age is 50 years and planning for a lumpsum investment of Rs. 20 lakhs in good funds. My requirement is Rs. 35000 to 40000 per month for maintenance with capital appreciation. Please suggest good investment options.

Omkeshwar Singh: Dear Ma’am, please forgive me, but the expectations are very unrealistic; with 35K withdrawal per month, there will not be any capital appreciation and by the time you are 57 this corpus will be over.

The return expectations are unrealistic with 25% + forever.

However, if the requirement is that for next 10 years Rs. 20 Lakhs will be invested and post retirement i.e. after 10 years Rs. 35K to Rs.40K is required then we may plan as under

1st 7 years:

Below Funds: (Rs. 5 lakh each) – objective Growth with Stability: 

1. UTI Flexi-Cap - Growth
2. Axis Bluechip - Growth
3. Tata Balanced Fund – Growth
4. Union Balanced Fund - Growth

8th to 10 year (Liquidate the above schemes except 1 of the Balanced advantage Fund and get into debt funds – Funds can be decided at that point, categories as under)  - Objective Stability and Protection of wealth created required post retirement

1. Banking and PSU Fund
2. Corporate Bond Fund
3. Gilt fund

Post retirement do SWP of Rs. 10,000 for each of the 4 schemes 

1. Banking and PSU Fund
2. Corporate Bond Fund
3. Gilt fund
4. Balanced Advantage Fund

This way we can have final objective of regular income with capital appreciation

Harshit Rastogi: I am 30 years old and looking to invest for a long term (10-15 years) to build a corpus of 1.5+ crores. Please review my current holdings (monthly SIPs) and suggest if I need to make any changes. I don't really know my risk appetite but still can go ahead with a small SIP of 5000 (monthly) in Axis Small Cap Fund.

1. ICICI Prudential Bluechip Fund Direct Growth - 10000 (invested for more than 2 years now and thinking of stopping SIP due to underperformance)

2. Axis Bluechip Fund Direct Growth - 10000

3. Parag Parikh Long Term Equity Fund Direct Growth - 10000

4. Mirae Asset Emerging Bluechip Fund Direct Growth - 2500

5. SBI Magnum Medium Duration Debt Fund Direct Growth - 10000

Omkeshwar Singh: Please continue with 2, 3, 4 and instead of 1st UTI Mastershare – Growth can be considered and instead of a Debt Fund, a Hybrid - Tata Balanced Advantage – Growth OR Union Balanced Advantage Growth can be considered

The expectations are reasonable and @ 13 % CARG in 10 years the corpus can be Rs. 1 cr and in 15 years around 2.4 crs and in mid-way i.e. 12.5 years required objective can be meet . Best Wishes

Jimmy Zilver: Could you please advise how to manage a lump sum of Rs. 25 Lakhs I have recently received after maturity of my REC Bonds? I am already investing in following funds via SIP 10K in each fund. Please advise if I can invest a lump sum of around 5 Lakhs in any good fund and/or should I park my funds into some short term liquid funds and continue the SIP

1)Canara Robeco Bluechip Eqt Dir-G

2)Mirae Asset Emerging Bluechip Dir-G

3)Mirae Asset Large Cap Dir-G

4)HDFC Hybrid Eqt Dir-G

Omkeshwar Singh: First 3 funds are good; for the 4th fund considering current margin of safety, a Hybrid - Tata Balanced Advantage – Growth OR Union Balanced Advantage Growth can be considered

One time Lumpsum of Rs. 5 lakh can be done for long term in these 2 funds Rs. 2.5 lakh each UTI Flexi-Cap – Growth and Axis Bluechip - Growth

Remaining amount can be put into Banking and PSU Funds, Corporate Bond Funds and Gilt funds, i.e., you may keep the emergency fund in liquid and the remaining in these 3 funds

• Hdfc Banking And Psu Debt Fund - Growth Option
• Idfc Government Securities Fund- Investment Plan--growth
• Aditya Birla Sun Life Corporate Bond Fund - Growth

Swapnil Teppalwar: I am investing in the following funds since 4 years. I want to build a corpus for my retirement as well chidren’s (2) higher education (US colleges) which will come up when I turn 50. I am 42 right now. Please advise.

Here is my portfolio:

1. Franklin India Equity Fund - Growth -3000/month
2. HDFC Small Cap Fund- regular Plan-Growth Plan- 4000/month
3. Motilal Oswal Midcap 30 Fund - Regular Growth -4000/month
4. Motilal Oswal Mutlicap 35 Fund - Regular Growth - 3000/month
5. Kotak Standard Multicap Fund - Growth(Regular Plan) (erstwhile Kotak Select Focus)-6000/month

Omkeshwar Singh: Better Portfolio is as under

1. UTI Flexi Cap – Growth
2. Axis Bluechip – Growth
3. Parag Parikh Flexi Cap – Growth
4. Union Balanced advantage - Growth

Charmaine Colaco: I have been investing monthly in the following SIPs (Growth option) since the last two years. Please advise which funds I should consolidate or add new and which to discontinue as I want to stick to only 6 quality schemes for a duration of 7 years. Thank you.

HDFC Top 100 Fund lumpsum 25000 on 01.3.18

Omkeshwar Singh: Please continue with 3, 5, 6 and may consider below for the rest

1. UTI Flexi Cap – Growth
2. Axis Bluechip – Growth
3. Parag Parikh Flexi Cap – Growth

The lumpsum one can be exited into DSP Quant Fund - Growth

S Kumar: Please assess my portfolio and suggest. My SIP funds in 2021 are:

• Axis bluechip Fund
• Canara Robeco Bluechip Equity Fund
• Kotak Standard Multicap
• Parag Parikh Long term equity fund
• Mirae Asset Emerging Bluechip Fund

Liquid:

Parag Parikh Liquid Fund

Axis Liquid Fund

Canara Robeco liquid fund

Omkeshwar Singh: These are good funds; please continue

---

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.