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.
Sanjivrao Katakam: I hope you are in the best of your health.
In brief, I am a 40-year-old IT consultant based in Bangalore. I want to build a corpus of Rs 50 lakh in the next 8-9 years & an additional corpus of 2 Cr in the next 20 years for retirement. Currently my MF portfolio includes:
Axis Bluechip Fund (Since May'2020) - Rs 1500 pm SIP
Mirae Asset Emerging Bluechip Fund (Since July'2020) - Rs 1000 pm SIP
HDFC Balanced Fund (Since Feb'22) - Rs 6000 pm SIP
Tata Retirements Savings Fund (Since Apr'22) - Rs 6000 pm SIP
I have plans to start a SIP of Rs 6000 pm in Parag Parikh Flexi Cap Fund. Should I also consider an Index fund?
Please suggest if I need to do any changes in the current portfolio and additional MF I need to start to reach my objectives.
Omkeshwar Singh: 4 to 5 funds are sufficient, no need to add. You can start SIP in PPFAS Flexi Cap.
Assign different funds to both the Goals i.e. Axis, Mirae and HDFC for Goal 1 and Tata and PPFAS for Goal 2.
Goal 1 - Rs. 50 lakh in 9 years - Rs. 25K SIP is required
Goal 2 – Rs. 2 crs in 20 years – Rs. 15K SIP is required
Tapas Maity: I am 40 years old. I want to invest for another 20 years with an corpus target of 3 crore. I am investing from last 2 years.
My present investments are:
Parag Parikh Flexi cap fund - Rs 10000
Axis Blue Chip Fund - Rs 5000
Axis Mid cap fund - Rs 2500
Axis Small cap fund - Rs 2500
Mirae Asset Emerging Blue Chip - Rs 2500
NPS - Rs 5000
VPF - Rs 6000
RD - Rs 7000
Please help me with more funds and amount how much to be invested.
Omkeshwar Singh: With Rs. 22500 SIP a corpus of Rs. 3 cr can be created in 22 years.
Additionally, with 18K NPS / VPF / RD Rs. 1 crs corpus will get created
Hence nearly Rs. 4 crs corpus will get created with current investment
Anuj Choubey: I'm 30 year old. I have investment only in PPF and EPF. Considering goals like honeymoon trip, child education, retirement plan (10 cr after 25 yrs) I want to start investing in SIPs. How should I plan my investments?
Omkeshwar Singh: You may consider the below funds.
Uti Flexi Cap Fund-regular -growth
Axis Esg Equity Fund -Growth
Kotak Business Cycle Fund-growth
Samco Flexi Cap Fund - Growth
Mithun Vora: I am running 3 index Mutual fund with total SIP of 25k, since late 2020. I want broad market coverage on M-caps at a much lower expense ratios should be below 50 paise.
I have existing balance fund and a flexi cap fund and started new SIP in following index funds.
Current SIPs:
1. HDFC NIFTY 50 - Direct growth - Rs 12,000 monthly SIP
2. Motilal Oswal Midcap 150 - Rs 6,000 monthly SIP
3. Motilal Oswal smallcap 250 - Rs 6000 monthly SIP
I want to change my SIP distribution. I want to have a higher contribution to MO mid cap 150, thus I am thinking of reducing SIPs in
Nifty 50 by 2k, smallcap 250 by 2k, and adding to mid cap 150.
So new planned SIP distribution is thus:
1. HDFC NIFTY 50 - Direct growth – Rs 10,000 monthly SIP
2. Motilal Oswal Midcap 150 Rs 10,000 monthly SIP
3. Motilal Oswal smallcap 250 - Rs 5000 monthly SIP
Questions:
1. What is the ideal ratio for SIP distribution on basis of Market capitalisation, with an outlook of 10 years?
Omkeshwar Singh: 10 years is good time and hence mid and small caps can be with higher weightage
2. Could you suggest a few active funds (non-index) that offer coverage on all 3 Mcaps with a lower expense ratio?
Omkeshwar Singh: You can look at Multi-cap category, it has decent exposure to all caps.
Is it better to opt for weekly or daily SIP as against monthly for better index tracking and better NAV averages?
Omkeshwar Singh: Daily and weekly will have more volatility, however if you are fine with volatility you may opt for daily SIP
4. What is your take on sectoral indices with ETFs?
I have lump sum investments in Nifty Bank and gold ETFs.
Omkeshwar Singh: Sectoral should be avoided or should have lower weightage unless you are an expert in few sectors.
Naveen Ganesh: I am 38 years old. I am investing 25k per month in MFs. Like to increase the investment to 40k per month. Need your advice for the same.
Goal: Planning to have a corpus of 2 crore when I turn 50 year old. i.e 12 years from now.
Investment Details:
Omkeshwar Singh: Sufficient funds are already there; no need to add any further schemes. Increase proportionately
Shashank Inamdar: I am 48 years old new to SIP/MFs. I have some funds of Rs 5 lakh which I want to invest for long term. Please suggest some good MFs for long term investment along with how to split the amount.
I can also invest 25k monthly in SIP for 5-6 years. Please suggest some good MFs with medium risk. How can I invest directly in MFs without any agent or other?
Omkeshwar Singh:
Few funds that can be considered are as under:
Uti Flexi Cap Fund -growth
Axis Esg Equity Fund -Growth
Kotak Business Cycle Fund-growth
Samco Flexi Cap Fund - Growth
There are many RIA (Registered Independent Advisor) platforms available where you can invest in direct schemes.
Dharmesh Shantilal Tanna: I have a SIPs in the following funds of Rs 20k. I want to create Rs 1 Cr corpus in 5-10 yrs. Current corpus is Rs 30 lakh. Please suggest the best option.
Aditya Birla Sun Life Equity Advantage Fund - Growth -- 1500
Aditya Birla Sun Life Pure Value Fund - Growth -- 3000
Axis Bluechip Fund - Regular Plan - Growth -- 1500
Franklin India Focused Equity Fund - Growth -- 2000
Franklin India Smaller Companies Fund - Growth -- 2000
HDFC Top 100 Fund - Growth -- 1500
Sundaram Mid Cap Fund - Regular Plan - Growth -- 2000
Aditya Birla Sun Life Tax Relief '96 - Growth -- 1500
Axis Long Term Equity Fund - Regular Plan - Growth -- 2500
DSP Tax Saver Fund - Regular Plan - Growth -- 2500
Omkeshwar Singh: To create a corpus of 1 crs (present corpus 30 lakh) in 10 years present SIPs Investment are sufficient.
Please continue
Udit Mathur: Kindly advice me on monthly SIPs for investment purpose. I am 43 years & currently having below SIP since 5 years.
Aditya Birla SL Frontline Equity Fund (G) - 2500/m
ICICI Pru MidCap Fund (G) - 2500/m
HDFC Mid-Cap Opportunities Fund (G)-2500/m
Parag Parikh Flexi Cap Fund (G) - 2500/m
Franklin India Focused Equity Fund (G) - 1500/m
Invesco India Dynamic Equity Fund (G) - 2500/m
Also I want to invest Rs 500,000 lump sum.
Goal:
Child 1 education - 15-20 lakh after 5 years
Child 2 education - 20-25 lakh after 10 years
Retirement - 1.5 Cr, after 18 years
Kindly advice the best option to proceed.
Omkeshwar Singh: Goal 1: Monthly Investment required is of Rs. 20000 for 5 years
Goal 2: Monthly Investment required is of Rs. 10000 for 10 years
Goal 3: Monthly Investment required is of Rs. 15000 for 18 years
Schemes selected are fine, allot them to each goal
Ajay Seth: I had started SIPs in Tata Digital Fund MF about 6 months back with long-term perspective but incurring losses@14%. Should I continue or exit?
Omkeshwar Singh: Please continue
Siva Rao: My age is 48 years My current SIPs are as listed below:
Nippon India small cap 10000
Hdfc mid cap opportunities fund 5000 Quant Active fund 10000
Hdfc flexi cap fund 5000
Parag parikh flexi cap fund 10000
Axis blue chip fund 10000
Current outstanding MF savings are 13 lakh so far
What can I expect at my retirement?
Omkeshwar Singh: Considering Retirement age of 60, a corpus of Rs. 2.5 crs can be created
Do you have mutual fund 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.
Read more of Omkeshwar Singh's responses here.
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