Ask MF Guru: 'I am very new in MFs'

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

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Jacob Cherian: I am an NRI; never invested in MFs. I would like to have your views on investing in the top MFs on a monthly basis of Rs 50k- Rs100k with a monthly inflow to my bank. I am also looking to invest between Rs 100 lacs as lumpsum in some funds to save taxes. I would appreciate your brilliant ideas on the same. My age is 55 years. I am looking forward to hearing from you.

Omkeshwar Singh: Below are few funds that can be considered for monthly investment:

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Tax savings are capped at Rs 1.5 lakhs under 80C per annum, therefore it does not make sense to invest more than that in ELSS schemes.

A few ELSS Schemes that can be considered are

1. Axis Long term Equity Fund -- Growth
2. Canara Robeco Equity Tax Saver Fund - Growth

sanjay mahajan: I am investing in MFs since Jan 2018. I have following folios:

1. Axis banking & PSU Debt (G)
2. ICICI predu.balance advantage fund (G)
3. Kotak equity apportuniy fund (G)
4. Axis multi cap fund (G)

My target is for 5 yrs. I will be retired by Nov.2022. I am investing ₹. 4000/ in each. Is it good to continue with these folios? Or would you like to suggest any change. If yes, then what type of fund? Where shall get answers to these sir?

Omkeshwar Singh: Please continue, no changes required

Anoop Yadav: I am investing in the following funds since 4-8 years. I want to build a corpus for my retirement as well chidren’s (2) higher education after 10 and 15 years. I am 40 right now. Please advise.

1.Parag Parikh Flexi Cap Fund - Direct Plan (5000/-pm, from oct 2020)
2. NIPPON INDIA GOLD SAVINGS FUND - GROWTH PLAN (1000/-pm, from 2011)
3.ICICI Prudential Bluechip Fund - Growth (2000/-pm, from 2012)
4. HDFC Mid-Cap Opportunities Fund - Regular Plan - Growth (2000/-pm, from 2012)
5. HDFC Flexi Cap Fund - Regular Plan - Growth (2000/-pm, from 2012, closed in 2020)
6. HDFC Index Fund - Sensex Plan - Direct Plan (1000/-WEEK, from Dec 2020)
7. Axis Mid Cap Fund - Direct Growth (1000/-WEEK, from June 2020)
8. Axis Long Term Equity Fund - Regular Growth (2000/-pm, from Jan 2015)
9. Aditya Birla Sun Life Tax Relief'96 Fund (2000/-pm, from 2016)

I want to invest 5000 more in Kotak small cap. Also want to invest 5000/- more, kindly advise where I invest?

Omkeshwar Singh: Please continue with 1, 3, 6, 7, 8 and 9.

Yes, you may invest in Kotak Small Cap Fund -- Growth

You may consider a couple of schemes from below for further investments

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Pradeep Tyagi: I am very new in MF. I started investing in some Mutual Funds. Kindly suggest me whether I am right or wrong? Please advise me

icici pru buiseness cycle fund direct growth -- Rs 100

Tata Digital india fund direct -- Rs 500

Quant Active fund `direct growth -- Rs 1000

Mirae Asset hybrid equity fund direct growth -- Rs 1000

Axis growth opportunity fund direct lumpsum -- Rs 5000

Omkeshwar Singh: Please continue; these are decent funds

Susheel Abraham: I have a plan to invest Rs. 5000/- each in the following funds on a monthly basis for the next 5 years for the purpose of owning a house in the next 5 or 7 years. Could you please give your advice?

PGIM India Global Equity Opportunities Fund - Growth

Kotak NASDAQ 100 Fund of Fund - Growth

ICICI Prudential Technology Fund - Growth

Tata Digital India Fund -- Growth

Omkeshwar Singh: Please continue; these are decent funds

saatvik sharma: Sir following are my SIPs per month. Kindly advice.

1. Nippon india value fund- Rs. 2000/-

2. Tata Equity P/E fund- Rs. 2000/-

3. Axis focus 25 direct plan fund- 1000/-

4. Mirae asset large cap-1000/-

5. SBI equity hybrid- 500/-

6. HDFC mid cap opportunity- 500/-

7. L&T business emerging- 500/-

8. PGIM india global equity opportunity- 500/-

9. DSP world gold fund- 500/-

10. HDFC small cap- 500/-

11. Tata India Pharma& healthcare- 500/-

12. SBI bluechip- 500/-

13. SBI focus equity- 500/-

14. SBI banking and services- Rs. 500/-

Omkeshwar Singh: Please continue with 2, 3, 4, 5, 8, 12, 13

niraj kumar: I am 34 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. Thank you

L&T Infrastructure Fund - 1500 p/m

DSP Natural Resources and New Energy Fund - 2000 p/m

L&T Midcap Fund - 1500 p/m

Aditya Birla Sun life Frontline Equity fund - 1500 p/m

ICICI Prudential Banking and Financial Services - 1500 p/m

UTI Transportation and logistics fund - 2000 p/m

Omkeshwar Singh: Too many sectoral funds, its better if you many consider below funds:

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Sunil G Bhosekar: I want to invest Rs 10L in some MF. Are there any Mutual Funds that provide monthly payout?

Omkeshwar Singh: Monthly dividend payout is tax inefficient and also irregular pay-outs, its better invest in Growth Plans with SWP.

Need more information to suggest any funds

Anonymous: My age is 31. I am trying to save up to 5,000 per month. I wanted to know if my current strategy is correct or not and if the funds are right. Pl advice what should I do. Whether I should continue or switch over to other schemes.

SIPs:

1. Franklin India Smaller Companies Fund - Gr - Rs.2000/-

Lumpsum investments:

1. Axis Focused 25 Fund - Gr - Rs.50,000/- From 19-03-2020
2. BNP Paribas Focused 25 Equity Fund - Gr - Rs.5000/- From 11-02-2021
3. Nippon India Liquid Fund - Gr - Rs.50,000/- From 27-03-2019
4.Nippon India Low Duration Fund - Gr - Rs.5000/- From 19-12-2016

Omkeshwar Singh: Axis Small Cap or Kotak Small cap are better options and keep one focused fund -- Axis Focused -- and add a flexi cap fund to your portfolio; 3 and 4 are okay on the debt side.

Either of these 2:

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth

puneet sharma: I am 4o years old. I have been investing in below funds. Please suggest whether to continue or not. I am investing for a total of 15-20 years. My goal is for my children's, who are 7+ and twin daughters of 1 year old, education; also for my retirement income. Total 30,000/month:

1. Mirae Asset Emerging Bluechip Fund - 9,000/month

2. Axis Bluechip Fund - 5,000/month

3. Axis Mid-cap Fund - 5,000/month

4. Parag Parekh Long Term Equity Fund - 5,000/month

5. DSP Small Cap - 3,000/month

6. Franklin India Bluechip Fund - 3,000/month

Omkeshwar Singh: Continue with 1, 2, 3 and 4

Krishnan N: Please review my MF holdings and kindly advise me what are the funds i should retain/close and what new investments to make?

Omkeshwar Singh: Too many funds for any meaningful long-term outperformance.

Continue with Tata large and mid-cap, SBI Focused Equity Fund, Axis Bluechip Growth Fund, Canara Emerging, Mirae Emerging,

Saravanan K S: I am an NRI, 37 yrs old. I am planning to invest Rs 50,000 in MF every month. I will not need immediate cash from this for next 23 years. Can you please suggest growth funds for me? I aim to maximise the growth for 23 years, so ready to take high risk. In addition, I also have a lumpsum of 20Lakhs. I want to invest this in MF, but worried about the current market levels. Can I put this in Liquid fund and SIP slowly into growth funds? I have recently done KYC and created online account only with the following fund houses, so can you please suggest direct funds with them only?

Omkeshwar Singh:

ICICI PRUDENTIAL – Go for ICICI US Bluechip Fund - Growth

SBI MF – Go for SBI Global Equity fund -- Growth

HDFC MF – Go for HDFC Sensex Index Fund -- Growth

AXIS MF – Go for Axis ESG Equity Fund Growth

UTI – Go for UTI Flexi Cap Fund - Growth

Riddhi Gilatar: I am 26 years old. I don't have much knowledge on SIP and Mutual Funds. Currently I will be able to invest around rs. 5000-6000 per month and my goal is for purchasing a house in next few years. I wanted to know which Mutual funds should I opt for in terms of growth and high returns? Also please suggest if I need to increase the amount to invest. Please let me know with regards to SIP, as I won't be able to invest lumpsum amounts and can only invest via SIP.

Omkeshwar Singh: Below are few funds that can be considered for monthly investment:

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Velanandan Parasuraman: I turned 56years old this March. I have no regular source of income except bank interest on FDs. Since the interest rates have fallen I need to enhance my monthly income. I intend to break my FD which I renewed for a year from 29-1-21. I intend to take 50 lacs from that & invest in SWP so that I get 50k every month. Given the market conditions is it a right decision serving my purpose with adequate capital protection. Eagerly awaiting your reply & thanking you in advance.

Omkeshwar Singh: 10% SWP will eat up the corpus, realistic would be SWP of 7% to 7.5% of the corpus form high quality debt and a balanced advantage fund can be introduced to the portfolio

1. HDFC Banking and PSU Fund -- Growth
2. ICICI Corporate bond Fund -- Growth
3. Union Balanced Advantage Fund -- Growth
4. Aditya Birla Corporate Bond Fund -- Growth

Rs 12.5 lakhs to be invested in each with SWP of Rs. 8000 per month from each of these 4 funds

swagat chakraborty: I am 45 year old and want to build a corpus of 1.5 Crore in next 15 year. Pls Suggest Me the MF I need to invest. My Risk Appetite is High as I am starting late.

Omkeshwar Singh: Monthly SIP amount of Rs 27500 will be required to achieve the targets:

Below are few funds that can be considered for creating a corpus of Rs 1.5. Crs in 15 years

1. UTI Flexi Cap Fund -- Growth
2. Parag Parikh Flexi Cap Fund -- Growth
3. Axis ESG Equity Fund -- Growth
4. Motilal Oswal Focused 25 Fund -- Growth

Around 13th year or when you reach 57/58 years in age to reduce the volatility in the corpus shift to Debt Funds (Couple of Banking and PSU and one Corporate Bond Fund) along a Hybrid Balanced advantage fund

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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.