ASK MF GURU: 'Want to invest Rs 15-20 lakh'

'Lump sums are better if you have funds at your disposal, and SIPs are better if you have lesser funds at disposal.'

Illustration: Dominic Xavier/Rediff.com

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

Praveen R: Below are my monthly SIPs (22k). Please advise if any change is required:

Mirae Emerging Bluechip Growth - 2k
Tata Digital India (G) - 5k
IDFC sterling value (G) - 5k
Canara Robeco Emerging Equities (G) - 1k
Mirrae Large Cap (G) - 1k
Axis Small Cap (G) - 1k

ELSS funds

Canara Robeco Equity Tax saver - 1k
Quant Tax (G) - 4k
IDFC Tax advantage (G) - 2k

Also I have around 6 lakh in Edelweiss Large and Mid cap (G) fund (SIPs stopped in this).

Is it fine to park this amount here or any other option?

Omkeshwar Singh:

Continue
It is fine to continue to hold the same fund.

Vinod Gulwani: Is SIP of 5000 x 2 per month okay or is 2500 x 4 per month a better option for long term?

Omkeshwar Singh: 2500 x 4 will give adequate exposure to all segments and sectors of the market.

5000 x 2 is also not a bad strategy provided the portfolio of the scheme is known and then decision is made based upon the strategy of the funds.

As per portfolio theory and empirical studies have shown that a portfolio is completely diversified with 25 to 27 stocks, post that it is a drag!

Shiva Kumar: I have invested in ELSS funds with lump sum option in last year, and I want to invest in the same fund every year from now on.

Is it possible to add money (lump sum) to the same fund again or can I convert it to a SIP?

Like, I have Quant Tax plan with 25,000 as lump sum invested for last year. Then how can I add money to it this year and coming forth to keep investing in the same fund?

Please suggest. It will help a lot.

Omkeshwar Singh: There is no restriction on adding more money year-after-year in the same ELSS fund. There is lock in of 3 years in every ELSS funds.

Further if you can do it via lump sum, no issue, SIPs are not mandatory!

Please understand lump sums are better if you have funds at your disposal, and SIPs are better if you have lesser funds at disposal but in every period (month).

Ganesh Joshi: I am 42. I have started investment in below funds one year ago. My salary is Rs 43,000 per month.

Axis blue chip - sip Rs 1000, total investment Rs 70000 as I invested lump sum also
Axis long term equity - Rs 2000, total investment Rs.12009
Axis growth opportunities - Lump sum Rs 49000
Canara Robeco - Rs.30,000
Parag Parekh flexi cap - Rs.10000
Kotak Balanced Advantage - Rs 30000

I have 10 year old son, single child.

Goals:

Son’s education - need 10 lakh after 7 years

Retirement - need 1 crore after 15 years

Omkeshwar Singh: Please break the above details in SIP and lump sums for me to advise properly.

Ravindranath Subramanian: I am 43 years old and would like to invest till I retire at 58 and expect a decent return of at least 12%.

Please find below my mf basket, and advise whether the funds in the basket are good ones or not.

Axis Long term Equity Fund (Tax Saving) Direct Plan Growth - 500/M
Aditya Birla Sun Life Tax relief 96 Direct Plan Growth - 500/M
PGIM Midcap Opportunities Fund Direct growth - 1000/M
Axis Small Cap Fund Direct Growth - 500/M
Parag Parikh Flexi cap Direct Growth - 1000/M
Quant Active Fund Growth Option Direct Fund - 1000/M
ICICI Prudential Commodities Fund Direct growth - 300/M
Kotak Bluechip Diect growth - 1000/M
Navi Nifty Next 50 Index Fund Direct Growth - 500/M
Tata Digital India Fund Direct Growth - 1000/M

Omkeshwar Singh: The schemes are good. Please continue.

Teja Das: I am 52 years old and working. My personal exposure to equity investment is very less ie some Mastershares and NPS Tier-1 investment of Rs 2 lakh.

Due to a demise in the family due to Covid, EPF accruals and Gratuity etc totalling nearly Rs 30 lakh have been received by me.

Please advise what is the ideal way to invest these receipts for capital safety and reasonable post tax returns over the next 8-10 years, that is, by the time I retire.

I am in the 30% tax bracket.

Omkeshwar Singh: Heartfelt condolences to the family.

A combination of debt funds and hybrid funds would take care of the requirements.

Debt: Corporate Bond Fund and Banking and PSU fund

Hybrid: Couple of Balanced advantage funds

Abhi: I am 37 years old. I have these funds and would like to know if these are fine or require any changes.

Monthly SIPs:

Axis small cap - 3k
UTI nifty - 3k
Tata Digital - 3k
Mirae Asset emerging Bluechip -3k
Mirae Asset Tax Saver - 3k
Pgim midcap - 3k
Quant Active - 3k
Parag Parekh flexi cap -3k

Omkeshwar Singh: No changes required.

Praveen Kumar Devarapalli: I am 29 years old, and I am investing in mutual funds of amount 20,000 in SIP Growth mode from February 21.

Kindly review my portfolio and suggest any changes in the to be made in the portfolio for long term.

1. ICICI Pru technology – Rs 4000

2. Axis Mid cap – Rs 2500

3. Mirae Emerging Bluechip – Rs 2500

4. Motilal Oswal Nasdaq FOF – Rs 3000

5. Parag Parikh Flexi Cap – Rs 2500

6. SBI Small Cap – Rs 3000

7. Quant Small Cap – Rs 2500

Omkeshwar Singh: These are good funds please continue

Dipayan Palit: Hello! I am 44 and planning to retire at 50 yrs. I am in a corporate job in Bangalore.

I started investing in SIP mutual funds of Rs 75000 per month and lump sum of Rs 500000 from Sep 2021 in the following MFs.

In the next 6 months, I have additional plans to invest Rs 20000 per month and Rs 15,00,000-20,00,000 in lump sum.

I wish to know whether I should continue or switch to other MFs and what would be your recommendations for my next investment plans.

ICICI Prudential Regular Saving Fund - Growth (Hybrid Fund- Conservative) – Lump sum amount Rs 5,00,000 (Started Sep 2021)
UTI Flexi Cap Fund (Formerly known as UTI Equity Fund) /Regular Growth Plan Growth (Equity Fund- Flexi Cap) – SIP Rs 25,000 (Started Sep 2021)
DSP Quant Fund- Reg-Growth (Equity Fund- Thematic) – SIP Rs 10,000 (Started Oct 2021)
Axis Flexi Cap Fund – Growth (Equity Fund- Flexi Cap) – SIP Rs 15,000 (Started Oct 2021)
Axis Growth Opportunities Fund - Growth Equity Fund (Large & Mid Cap) – SIP Rs 10,000 (Started Oct 2021)
DSP Innovation FOF /Reg-G Equity Fund- (Equity Fund) – SIP Rs 5,000 (Started Jan 2022)
Parag Parikh Flexi Cap- Reg Plan (Equity Fund- Flexi Cap) – SIP Rs 5,000 (Started Sep 2021)
DSP Value Fund- Reg-Growth (Equity Fund- Thematic) – SIP Rs 5,000 (Started Sep 2021)

Omkeshwar Singh: 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.

You can read more of Omkeshwar Singh's responses here.