Do you have mutual fund queries?
Please ask your questions here and rediffGURU Dev Ashish, founder, StableInvestor (external link), will answer them.
Ravi: Hello sir... I am Ravi kumar. Already am investing in MF. I want start SIP for my two Sons who are 5 years and 3years old with their names. Please suggest best mutual funds for long term
We don't have information about your risk appetite. But assuming that it is at least moderately aggressive, then (assuming) that your long-term horizon is at least 7+ years, you can start investing in a combination of large-cap index fund, flexicap fund, mid-cap fund.
Unless you are planning to invest a large amount every month, just limit the number of schemes to 2-3 funds as these give sufficient diversification.
Saikat: Hi. I am 37 yrs old and need Rs. 5 lakhs in next 4 years. I would like to achieve it through regular SIPs. Kindly suggest me the amount and funds.
Your investment horizon of 4 years is a relatively short one. So ideally there is no need for equity exposure. But you can consider taking some exposure if you have sufficient risk appetite by investing via conservative hybrid funds. You should start a monthly SIP of Rs 8,500-9,000 for the next 4 years.
Anonymous: Sir, My monthly income is around Rs 2,00,000 and expenditure around Rs 45,000. I'm 45 and want to achieve retirement goal in 60. How much asset allocation do you think is right for medium risk to invest in equity, debt, SGB, REIT and others etc. I am thinking of starting investing in a large cap index and a flexicap. For protection of volatility, and less risk I should invest in debt mutual funds or should go for NPS? Pls suggest any other option you have.
We don't have information about your risk appetite. But assuming that it is at least moderately aggressive, then for a 15-year remaining investment horizon for retirement goal, you can have an allocation of 60-65% equity, 30% in debt, and 5% in gold.
For equity allocation, your choice to start with large-cap index fund and a flexicap fund is good enough. For debt for retirement goal, first try to maximise tax-free limit of EPF, and then PPF, and then look at debt mutual funds or NPS (G+C).
Anonymous: I have a surplus amount of Rs 36 lakh in account still not invested and I am newly married my age is 30 I'm a state govt employee too and my goal is by the age 50 retire with a corpus of Rs 10 crore. Plz guide how to achieve
If your investment horizon is 20 years, then you should be looking at investing in inflation-beating assets like equities. Assuming Rs 36 lakh is deployed into equity (say in a staggered manner over the next 2 years) and you also start investing regularly each month into equity funds, then to reach Rs 10 crore at average portfolio returns of 10% (assuming a mix of equity and debt), you need to invest about Rs 70-75,000 monthly.
Since you would already be investing in PF, etc. via salary deduction every month, the remaining amount can be invested in equity schemes from fund categories like large-cap index funds, flexicap funds, midcap funds, etc.
Rajesh: Hi Dev, Good day. I am planning to start SIPs (55K per month) in the following Mutual funds for a horizon of 5-7 years to create 1 corpus. Could you please review and suggest if they look fine or need any changes/alternate funds. I am fine to take higher risks.
1. Quant Small Cap Fund Direct Plan Growth 3000
2. Nippon India Small Cap Fund Direct Growth 2500
3. HDFC Small Cap Fund Direct Growth 2500
4. Canara Robeco Small Cap Fund Direct Growth 3000
5. Quant Mid Cap Fund Direct Growth 3000
6. Motilal Oswal Midcap Fund Direct Growth 2000
7. HDFC Mid Cap Opportunities Direct Plan Growth 3000
8. Quant Infrastructure Fund Direct 3000
9. Quant Flexi Cap Fund Direct Growth 3000
10. Parag Parikh Flexi Cap Fund Direct Growth 6000
11. HDFC Flexi Cap Direct Plan Growth 5000
12. ICICI Prudential Technology Direct Plan Growth 3000
13. HDFC Retirement Savings Fund Equity Plan Direct Growth 5000
14. HDFC Balanced Advantage Fund Direct Plan Growth 2500
15. UTI Nifty200 Momentum 30 Index Fund Direct Growth 2500
16. Bandhan Nifty 50 Index Fund Direct Plan Growth 3000
17. Nippon India Growth Fund Direct Growth 5000 Thank You!
You have chosen an unnecessarily large number (17) of funds to invest Rs 55,000 monthly. If you combine the underlying stock portfolio of all these funds then you would have hundreds of stocks and be running effectively a Nifty500 kind of portfolio. So no need to complicate it.
In my view, just having 3-4 funds would be more than enough for your requirements.
Assuming you have at least a moderately aggressive risk appetite, you can invest 10-15K in one large-cap index fund, 15-20K in one flexicap/large & midcap fund, 10K in one midcap fund and remaining in smallcap fund.
This allocation will be more than enough for your portfolio requirements.
- You can ask rediffGURU Dev Ashish your questions HERE.
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