Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:
R Parameswaran: Dear MF Guru, Greetings of the Day. My son, aged 30, holds the following MFs, in which last SIP got over in March 2020.
| Sr | AMC Name | Fund Name | Total Amount Invested up to March 2020 | No. of Units as on March 2020 |
| 1 | ABSL | Equity Advantage Fund | 195000 | 535.636 |
| 2 | HDFC | Balanced Advantage Fund | 180000 | 1081.401 |
| 3 | ICICI PRU | Blue Chip Fund | 135000 | 3791.616 |
| 4 | NIPPON INDIA (RELIANCE) | Banking Fund | 143000 | 626.941 |
| 5 | NIPPON INDIA (RELIANCE) | Small Cap Fund | 133000 | 3874.830 |
| REGULAR GROWTH OPTION | ||||
I would request you to advice as to whether to hold / sell (part / full) the above MFs.
Omkeshwar Singh: Looking at the Quality and the Margin of Safety of the funds at present market levels is better to completely exit from all of these schemes and the proceeds can be invested in Tata Balanced Advantage – Growth and Union Balanced Advantage Growth.
Presently (since July 2020) he is investing an amount of Rs. 16000 p.m as SIP towards 5 different MFs. He had also invested a lump sum of 30000 in all these MFs. The details are as under:
| Sr | AMC Name | Fund Name | Monthly SIP amount | No. of Units as on Date |
| 1 | AXIS | Blue Chip Fund | 3000 | 1662.220 |
| 2 | CAN ROBECO | Blue Chip equity | 4000 | 2121.225 |
| 3 | MIRAE ASSET | Health Care Fund | 3000 | 3362.874 |
| 4 | MOTILAL OSWAL | Nasdaq 100 Fund of Fund | 3000 | 2985.792 |
| 5 | SUNDARAM | Services Fund | 3000 | 4428.504 |
| REGULAR GROWTH OPTION | ||||
I would request you to advice as to whether to hold / switch / additional purchase in the above MFs.
Omkeshwar Singh: All these funds are good quality and are also at fair margin of safety, therefore kindly continue with all this 5 schemes.
Vikas Pathak: Kindly suggest whether i have chosen right or wrong and kindly suggest. I am Investing in SIPs (since Aug-2018) in following funds…
1. ICICI Discovery fund Direct-Growth - 1000 pm
2. ICICI Prudential BlueChip Direct-Growth - 2000 pm
3. Nippon Small Cap Growth - 2000 pm
4. Franklin Prima Growth - 3000 pm
5. Kotak Select Focus Direct-Growth - 2000 pm
6. Motilal Oswal Focus-25 Direct-Growth - 1000 pm
7. Motilal Oswal 35 Direct-Fund - 1000 pm
8. SBI Bluechip Direct-Growth - 2000 pm
9. TATA ELSS Direct-Growth - 1000 pm
Omkeshwar Singh: Please continue with 1, 6, 8 and 9; rest can be exited and consolidated into Axis Bluechip Fund – Growth and Parag Parikh Flexi Cap Growth.
niraj kalra: pls name five- six funds including balanced advantage and hybrid one each to invest when sensex is around 50000 with 2-3 years horizon. i want to invest about 10-15 lakhs.
Omkeshwar Singh: Looking at the investment horizon, debt and Hybrid will be appropriate
Hybrid - Tata Balanced Advantage – Growth and Union Balanced Advantage Growth
Debt – HDFC Short Term Debt Fund – Growth and ABSL Short Term Fund - Growth
Vasudevan N P: Please let me know whether my invested mutual funds are right now? Shall I continue with this for another two years? Your feedback is highly appreciated.
1)SBI focused equity fund regular-growth plan.
2)DSP equity fund regular-growth plan.
3)Aditya Birla sunlife india gen next fund-growth plan.
4)Aditya Birla sunlife pure value fund-growth plan.
5)HDFC mid cap opportunities fund regular plan.
6)Axis special sector fund.
Omkeshwar Singh: Please continue with 1, 2, 3, 6 and for 4 and 5 Tata P/E Fund – Growth and Axis Mid Cap - Growth can be considered.
manish sonar: I am 45 years old NRI.
1. If I want to invest lump-sum amount may be 2 Lakhs, which is the better option you suggest.
Omkeshwar Singh: For Long term 5 to 10 years than UTI Flexi Cap – Growth and Parag Parikh Flexi Cap – Growth
2. If I want to invest funds in the range to 10-15 lakhs, please advise the MFs which I must select to invest in for a period of about 3 to 5 years.
Omkeshwar Singh: Looking at the investment horizon, debt and Hybrid will be appropriate
Hybrid - Tata Balanced Advantage – Growth and Union Balanced Advantage Growth
Debt – HDFC Short Term Debt Fund – Growth and ABSL Short Term Fund - Growth
3. Further as the market has recovered a lot from Covid period, please advice if it is the correct time to invest the same?
Omkeshwar Singh: Markets have been hitting new highs, however most of the Equity / Equity Oriented Schemes have a completely different portfolio compared to Market indices, therefore each and every schemes has different margin of Safety depending upon the scheme portfolio and thereafter upon the Margin of Safety of the Schemes, Investors should either continue with the investing or book partial profits.
It is difficult to ascertain the Margin of Safety of all the Equity Oriented scheme by most of Individual Investors (Retail or HNI), therefore RankMF has developed a proprietary MosDex for each and every equity oriented Schemes depending upon the individual portfolio of each and every Scheme to guide the Investors on RankMF to take informed decision and not worry about the market levels!
And how it will benefits from tax savings?
Omkeshwar Singh: Funds deduct TDS form proceeds for NRI Investors. Not an expert on NRI taxation, would request kindly have qualified Tax Expert consulted with.
Dr Sagar Malsane: I am 37 years old. I have 10 MF investments in the form of lumpsum and SIPs, which started 3 years before, kindly review and advise details as below. Further in addition I would want to start SIP (Monthly total 6-8 thousand) and invest lump-sum amount may be 2 Lakhs, which better option you suggest?
| Fund Name | Category | Investment | Start Date | Investment type | Holding Years | Av. return | |
| 01 | SBI Magnum Mid Cap | Mid cap | Rs.16000 | Feb. 18 | Lump sum | 05 | No further investment |
| 02 | Franklin India Liquid Fund | Debt - liquid | Rs.30037 | Jan. 18 | LS & STP | 10 | No further investment |
| 03 | Franklin India Equity Fund | Equity - Multi cap | Rs. 65000 | Feb. 18 | SIP | 10 | No further investment |
| 04 | Franklin India Ultra-Short Bond | Debt fund | Rs.25000 | April 18 | Lump sum | 10 | No further investment |
| 05 | Aditya Birla Sun Life Advantage Growth | Mid & large | Rs.118000 | Feb. 18 | Lump sum + SIP | 07 | No further investment |
| 06 | AXIS LIQUID Fund | Debt - liquid | Rs.75000 | Sep 18 | Lump S | 08 | No further investment |
| 07 | AXIS BLUECHIP Mutual fund | Large cap | Rs. 1.63 Lakh | Aug 18 | SIP 4K + LS | 07 | SIP Active |
| 08 | Nippon India Large Cap Fund – Direct | Large cap | Rs. 1.05 Lakh | Feb 18 | SIP – 4K | 07 | No further investment |
| 09 | Nippon India Gilt Securities Fund | Debt-gilt | Rs. 10000 | May 19 | Lump S | 02 | No further investment |
| 10 | Mirae Asset Emerging Blue-chip Fund Direct-Growth | Large and mid-cap | Rs.59998 | Jan. 2020 | SIP – 5K | 05 | SIP Active |
Omkeshwar Singh: Please continue with the Active SIPs 07, 10 and can add Axis ESG Equity – Growth and DSP Quant fund – Growth for additional SIPs
Further you may continue with 06 (02 can be consolidated into 06) and 09 and the rest can be exited and invested into Hybrid - Tata Balanced Advantage – Growth , Union Balanced Advantage Growth and Axis Dynamic Equity -Growth
Axis Mid Cap - Growth can be considered if Mid-Cap Exposure is required for 01.
| Jatin Suresh Vakil: I have following investments. Me and my wife are retired. Pl advise. Franklin India Smaller Companies Fund - Direct-GROWTH |
| HDFC Balanced Advantage Fund - Direct Plan - Dividend |
| L&T Emerging Businesses Fund Direct Growth |
| L&T Infrastructure Fund Direct Plan - Growth |
| L&T Midcap Fund Direct Plan - Growth |
| Nippon India SMALL CAP FUND - DIRECT GROWTH PLAN GROWTH OPTION |
| Tata Retirement Savings Fund-Conservative DIRECT Plan - Growth |
| Franklin India BLUECHIP FUND - Direct-GROWTH |
| Franklin India Equity Advantage Fund - Direct-Growth |
| HDFC Balanced Advantage Fund - Direct Plan - Growth Option |
| HDFC Equity Fund - Direct Plan - Growth Option |
| HDFC Infrastructure Fund - Direct Plan - Growth Option |
| HDFC Small Cap Fund-Direct-Growth |
| HDFC Top 100 Fund - Direct Plan - Growth Option |
| L&T Equity Fund Direct Plan - Growth |
| Nippon India GROWTH FUND - DIRECT GROWTH PLAN GROWTH OPTION |
| Nippon India MULTI CAP FUND- DIRECT DIVIDEND PLAN |
| Nippon India SMALL CAP FUND - DIRECT GROWTH PLAN GROWTH OPTION |
Omkeshwar Singh: All of these are good funds in their asset classes therefore please continue; can be reviewed later
Kinjal Dawda: I am a 39 year old looking to close some debts and need your advice. I had made lumpsum investments in the following tax saving funds that are now free of the lock-in period. Kindly advise whether I should book profits.
1. Fund: DSP Tax Saver (Regular - Growth)
Investment date: Jan 2011
Current value: 1,40,000
2. Fund: Franklin India Taxshield (Regular - Growth)
Investment date: Jan 2009
Current value: 1,50,000
3. Fund: HDFC Long Term Advantage (Regular - Growth)
Investment date: Feb 2007
Current value: 1,25,000
4. Fund: HDFC Long Term Advantage (Direct - Growth)
Investment date: Jan 2013
Current value: 1,15,000
5. Fund: ICICI Prudential Long Term Equity (Regular - Growth)
Investment date: Feb 2006
Current value: 2,50,000
6. Fund: SBI Long Term Equity (Direct - Growth)
Investment date: Feb 2007
Current value: 50,000
7. Fund: Sundaram Diversified Equity (Regular - Growth)
Investment date: Jan 2009
Current value: 1,65,000
Looking forward to your recommendation. Thank you for your time and expertise.
Omkeshwar Singh: Looking at the margin of safety and lock-in free investments (ELSSs), you may exit from all of these funds and consolidate into
amit sawant: I have UTI-MASTER EQUITY PLAN UNIT SCHEME (MEPUS) - DIVIDEND PLAN PAYOUT 792 Units. Should I switch to other scheme?
Omkeshwar Singh: This is a closed ended fund , you may exit and invest into UTI Flexi-Cap – Growth ( open ended Flexi Cap Fund)
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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