'Can I buy a 40 lakh car in 2 yrs with SIPs?'

Do you have mutual fund queries?

Please mail your questions to getahead@rediff.co.in with the subject line, Ask Nikunj, along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answer your queries.

Anuj Saxena: Now I am 45, I have been investing since 2015 in lumpsum basis Aditya Birla Sun Life digital India direct and ICICI prudential infrastructure growth Direct. How should it be continued?

Nikunj Saraf: Hi Anuj. Your current investments are in sectoral IT and infrastructure. It's for the long term with a horizon of at least 8 years. For your future investments, I recommend you reduce your risk appetite by switching to moderate-risk -investments like multi-caps, midcap, and large & midcap.

Rajesh Khanna: Dear Nikunj, I am 46 years old and I have taken mf and I am continuing SIP since five years as follows:

1. HDFC ELSS -1500
2. ICICI prudential Multicap - 2000
3. HDFC Top 100 growth -2000
4. AXIS Focused 25 -2000

So suggest me should I continue or switch to some other fund. I want 25 Lakh fund in another 7 to 8 years

Nikunj Saraf: Hello Rajesh Khanna. Based on the current diversification of your portfolio, I would recommend reconsidering HDFC Top 100 fund sip. As an additional option for 25 lakh investments, you may consider midcap, smallcap, flexicap, and large-cap funds.

Furthermore, you can invest via STP instead of the lump sum in order to benefit from future market volatility.

Vaibhav Sandanshive: Please give any suggestion for my mutual investment. HDFC Multi cap - Weekly 1000 Rs Tata Small Cap Fund - Weekly 500rs Axis Growth Opportunity fund - Monthly 3000 Canara Robeco Mid Cap Fund - Monthly 5000 Canara Robeco Bluechip fund rs 500000 lump sum Tata consumption fund - 500000 lump sum

Nikunj Saraf: Hi Vaibhav. In light of your current investment, I recommend that you reconsider investing in Tata Small Cap Fund sip. In addition, you should diversify your portfolio by AMC for better returns. If you would like to diversify your portfolio further, you can introduce Flexi caps.

Krishna Murthi: I am 59 years old Male and I will continue in my private job for next five years. At present I don't have any saving and planning to invest Rs 1 lakh per month for next five years and I can allow my money to grow in MFs for next 10 years. I am ready to take calculated amount of risk to generate money for my use for next 20 years. Kindly advice for good MFs to invest on monthly basis and also how to pay IT once my profits exceed Rs 1 lakh per year since I will not disclose my investment to my employer but I am planning to pay IT through online after working.

Kindly send Website name and how to pay IT on yearly. In addition MF, kindly suggest Gold MFs, share, or any other safe investment since I need money without losing money.

Nikunj Saraf: Hello Krishna Murthi. With regards to your goals and requirement, you may invest in below mentioned schemes:

• HDFC Balanced Advantage Fund
• Quant Absolute Fund Fund
• Canara Robeco Bluechip Fund
• ICICI Prudential Bluechip Fund
• Kotak Equity Opportunities Fund
• Aditya Birla Sun Life Short Term Fund
• Axis Gold Fund

In the case of IT, it would be more beneficial to contact your CA directly.

Stanley Stevenson: Hi Nikunj, I want to buy a car worth 40 lakh in 2 years. How much should I invest through SIPsand in which to invest to reach that goal?

Also I wish to buy a plot and construct a house in 3 years. Instead of taking loan I want to invest in SIP and construct with my money so that I can save  on interest and time. Please suggest.

I am 45 and can invest 1 lakh per month. Note: I don't know ins and outs of the Large, Mid and Small or any other financial terms, so please suggest some names where I can start investing. Thank you very much.

Nikunj Saraf: Hello Stanley Stevenson. To reach the goal of buying a car, you can start the sip with monthly amount of 1.47 lakh. Additionally for your home goal, you can start the sip in below mentioned schemes:

• HDFC Balanced Advantage Fund
• Mirae Asset Hybrid Equity Fund
• Canara Robeco Bluechip Fund
• ICICI Prudential Bluechip Fund
• SBI Large & Mid cap Fund
  

2. Invesco India Flexi Cap Fund-regular plan growth -- Rs 1000

3. Invesco Global Consumer Trends funds of Funds-Regular growth -- Rs 1000

4. Kotak Emerging Equity fund growth -- Rs 1000

5. Kotak Tax Saver Fund Growth (ELSS) -- Rs 500 6.

6. Union Long Term Equity Fund Growth Regular Plan -- Rs 1500

Nikunj Saraf: Hello Sanjeev. While analysing your portfolio, I would suggest reconsidering all schemes except Kotak Tax Saver Fund.

Sectoral/ Thematic funds are aggressive risk funds. They follow one sector or theme-based companies to invest. Also, it's for the long term with a horizon of at least 8 years. When investing in such a category, your investment proportion should not exceed 15-20% of your total investment.

Additionally explore the categories like large & mid cap, mid cap and flexi cap for your portfolio.

You can read more of Mr Saraf's answers here

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