ASK MF GURU: ‘I haven’t invested in MFs’

‘I want to start investing SIPs, monthly investment would be 1,500-2,000.’

Omkeshwar Singh, Head, Rank MF (extrenal link), a mutual fund investment platform, answers your queries:

TGA: I saw your kind answers to many queries on Rediff and wanted to ask your advice on my retirement financial model. Here it is:

Portfolio:

Hybrid 10%

Flexi 10%

Mid 10%

Small 5%

Contra 5%

All India funds only. 

I am 2 years from retirement and want to start drawing 3% out every year from next year but only 0.25% monthly no one shot annual drawing. 

Question to you: Assuming I have 30 more years to live do you THINK will the above model work? I have evaluated the bucket model and feel the full equity model is better. 

Please let me know your thoughts.

With 3 % annual withdrawal,

Omkeshwar Singh: Bucket /Basket route is good for post-retirement investment and periodic withdrawal.

Combination of Equity and Hybrid funds can provide for 30 years

Also 3% annual withdrawal is very decent, that will ensure that the money does not get depleted and in-fact the corpus will only keep growing

Raj Kotwadekar: Age: 23 

Question: I want to start investing in MF through SIPs, monthly investment would be 1500-2000. My goal is to invest for 10-15 years from now. And keep the amount invested for another 10 years, to use the compounding power.

Can you suggest me few mutual funds? Please note: my basic idea was to invest 1000 in a reputed/large cap fund and 500 in another fund (Growth). Please suggest.

Omkeshwar Singh: Large cap fund: HDFC Top 100 – Growth plan OR SBI Blue chip fund  – Growth

Flexi Cap Growth option: Parag Parikh Flexi Cap Fund- Growth OR Samco Flexi Cap Fund – Growth

Dipesh Negi: I am 19 years old and currently pursuing my graduation. 

I want to start a SIP of Rs 1000 for short term (3-5 years) which will give high returns with high risk or moderate risk. Can you please suggest me some MF for my plan? I can start investing in 2 or 3 SIP after 3-4 months. 

Omkeshwar Singh: You may consider these:

1. Parag Parikh Conservative Hybrid Fund – Growth

2. ICICI Prudential Balanced Advantage Fund – Growth

3. HDFC Balanced Advantage Fund – Growth

Ninad Karnik: Hope you are doing well! I would like to know which MF should I invest and with how much amount for below corpus.

Retirement – 2cr

Daughter’s Education – 50 lakh

Also please suggest how much i should invest yearly in Sukanya Samrudhi Yojna.

Omkeshwar Singh: Retirement: You may consider below funds:

  • Parag Parikh Flexi Cap Fund- Growth
  • Samco Flexi Cap Fund – Growth
  • UTI MNC Fund – Growth Plan
  • HDFC Index Fund – Sensex Plan  – Growth

Monthly Investment of Rs 30,000 for 15 years 

Daughter Education:

1. Parag Parikh Conservative Hybrid Fund – Growth. 

2) ICICI Prudential Balanced Advantage Fund – Growth

3) HDFC Balanced Advantage Fund  – Growth

Monthly Investment of Rs 30,000 for 10 years 

You may invest up to 1.5 lakh per annum in Sukanya Samrudhi Yojna and also claim tax deduction under section 80 C

Prince Reid: I haven’t invested any amount in MF so far but planning to invest for 15-20 years for early retirement. Kindly advise. My age is 34 years and can invest 10 k each month and will increase 10-15% every year.

Omkeshwar Singh: You may consider below funds:

  • Parag Parikh Flexi Cap Fund- Growth
  • Samco Flexi Cap Fund – Growth
  • UTI MNC Fund – Growth Plan
  • HDFC Index Fund – Sensex Plan  – Growth

Karthik Keyan: Please advise. I am investing in the following MF SIPs:

  • Axis Flexi cap fund 6000/- from April 2022
  • Axis Bluechip 5000/- from Nov 2021
  • Canara Robeco Blue chip 5000/- from Feb 2022
  • Canara Robeco Emerging Equities 5000/- from Jan 2022
  • Icici value discovery 5000/- from May 2022
  • Mirae Asset Emerging Equities 2500 /-From Jan 2022
  • Franklin India Focussed Eq Fund 2500/- from Sep 2016
  • Sbi flexicap fund 2500/- from Sep 2016
  • Mirae Focussed fund 5000/- from Sep 2019

Omkeshwar Singh: These are good funds, please continue.

Syed Rahaman: I am 46 years old now and estimating a requirement of approx 2 Cr at the age of 58. I am continuing below mentioning SIP from the last two years. Need you valuable suggestions to achieve my target. 

SIPs are for Total Amount of 33000/ month

  • Axis Focused 25 Fund – Growth — 2500
  • Aditya Birla Sun Life Frontline Equity Fund – Growth — 2500
  • HDFC Hybrid Equity Fund – Regular Plan – Growth — 5000
  • Axis Bluechip Fund – Growth — 2500
  • Axis Growth Opportunities Fund – Growth — 2500
  • DSP Mid Cap Fund – Growth — 3000
  • HDFC Small Cap Fund – Regular Plan – Growth — 3000
  • IDFC Focused Equity Fund – Growth — 3000
  • L&T Emerging Businesses Fund – Regular Plan – G — 3000
  • SBI Blue Chip Fund – Growth — 3000
  • UTI Flexi Cap Fund – Growth — 3000

Omkeshwar Singh: This seems to be within reach in 14 years (2 years prior and 12 years hence forth).

Vanden Jain: I hope everything is well. I need some investment advice. I am a 22-year-old salaried person. I need to create a corpus of 10+ cr in the upcoming 30 years for retirement/higher studies. I can invest 50-60k/month. Please suggest some suitable MFs and other investments. 

Thanks! I am looking forward to hearing from you soon. 

Omkeshwar Singh: You may consider below funds:

  • Parag Parikh Flexi Cap Fund- Growth
  • Samco Flexi Cap Fund – Growth
  • UTI MNC Fund – Growth Plan
  • HDFC Index Fund – Sensex Plan  – Growth

Ashwin Jain: Please help me with the following queries.

I have lump sum 60 lakh that I want to invest in MFs along with SIP of 60,000 pm. I am open to high risk and am considering a goal of 2.5 crore from MF.

Q. Is my goal feasible by 2029?

Omkeshwar Singh: Yes !

Q. Can you suggest some MFs for this?

Omkeshwar Singh: You may consider below funds:

  • Parag Parikh Flexi Cap Fund- Growth
  • Samco Flexi Cap Fund – Growth
  • UTI MNC Fund – Growth Plan
  • HDFC Index Fund – Sensex Plan  – Growth

Manjunath: I am 36 years old. Can you please help me know if my mutual fund investments are in line with the current market situation. 

I am looking for good retirement amount of 2-4cr and kids (6 year old) education requirements. I am ok to invest another 10-15 k SIP, please suggest me other options or funds.

Also is the ET money genius subscription worth for doing 10k sip. They charge 740 approx quarterly.

Omkeshwar Singh: Kindly provide the portfolio

If you want Mr Singh’s advice on your mutual fund investments, please mail your questions to [email protected] 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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