‘Please suggest 3 mutual funds for lump sum investment with limited downside risk and decent returns say 10% for 3 years holding period’
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:
G A Naidu: I would like to recommend my family members to invest in index based equity funds on a dollar cost basis. What are some of the funds in India?
Omkeshwar Singh: Presuming dollar cost averaging basis SIPs can be done in these index funds based upon the risk profile:
- UTI NIFTY INDEX FUND – GROWTH
- ICICI PRUDENTIAL NIFTY NEXT 50 INDEX FUND – GROWTH
- MOTILAL OSWAL NIFTY BANK INDEX FUND- GROWTH
- HDFC INDEX FUND – SENSEX PLAN – GROWTH
Rajesh Raju: Please suggest whether I should hold these mutual funds or suggest alternatives which I should switch to.
1. Aditya Birla Sun Life Focused Equity Fund – Growth Regular Plan
2. Aditya Birla Sun Life Resurgent India Fund Series 6 – Growth. REGULAR
3. NIPPON INDIA LARGE CAP FUND, – GROWTH PLAN GROWTH OPTION
4. NIPPON INDIA SMALL CAP FUND – GROWTH PLAN GROWTH OPTION
5. Principal Emerging Bluechip Fund – Regular Plan Growth
6. SBI Equity Hybrid Fund Regular Dividend
7. SBI Flexicap Fund – Regular Plan – Growth
8. SBI Long Term Advantage Fund – Series I – Regular – Growth
9. UTI Ultra Short Term Fund-Regular Growth Plan
Omkeshwar Singh: These are couple of closed ended schemes; for remaining you may consider to consolidate into good quality funds with decent margin of safety
Thiruvengadam Chellaswami: 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
Mutual Fund Monthly SIP
SBI MF Bluechip fund 2,000.00
Mirrae Asset MF Large cap 5,000.00
ICICI Bluechip fund 3,000.00
Canara robeco blue chip 2,500.00
Mirrae Emerging bluechip 2,500.00
Axis MF BlueChip 5,000.00
Omkeshwar Singh: The quality of portfolio is fine; however there is too much focus on large cap funds.
ajitav nandi: I have invested in mentioned mutual funds. Please suggest on whether to retain or move out of them.
DSP Blackrock Midcap Fund – monthly 1k
DSP Blackrock Smallcap Fund – monthly 1k
DSP Blackrock Liquidity Fund – monthly 2k
SBI Blue Chip Fund – monthly 1k
L&T Flexicap Fund – monthly 1k
L&T Liquid Fund – monthly 2k
BNP Paribas Long Term Equity Fund – monthly 2k
HDFC Midcap Opportunities Fund – monthly 1k
HDFC Infrastructure Fund – monthly 1k
Nippon India Focused Equity Fund – monthly 2k
Birla Sunlife Frontline Equity Fund – monthly 1k
Birla Sunlife Pure Value Fund – monthly 1k
Kotak Flexicap Fund – monthly 2k
Omkeshwar Singh: You may consider to consolidate into good quality funds with decent margin of safety.
Abhoy Tripathy: Last month I initiated SIPs in 8 diversified MF’s. My total investment is 4 lacs over the next 6 months. Is it a good idea to spread it across 2+ years or should I stick to the next 6 months plan? It would be great if you can specify the advantage for a long term SIP over 6 months in the current market scenario.
Omkeshwar Singh: SIPs are used for concept called dollar cost averaging i.e. it is presumed that it is very difficult to time the market so it is better to invest regularly and averaging will happen and with compounding desired objectives can be achieved.
Therefore it is better to invest into diversified equity funds over longer duration so that different market cycles gets captured and proper averaging can happen.
It is advisable to continue for 5+ years if in equity diversified funds.
Arundhati Saha Mondal: I have Rs 30 lakhs cash available to invest in Equity mutual funds, with 10 – 12 years investment horizon. I want to spread the investment in monthly SIP mode in below five funds for next 2 years with Rs 25,000 in each fund. Monthly investment of Rs 1.25 lakhs in next 2 years.
Axis Mid Cap Direct-G
Invesco India Contra Direct-G
Mirae Asset Emerging Equity BlueChip Direct-G
Axis FlexiCap Direct-G
Motilal Oswal Nasdaq 100 FOF Direct-G
Are my choices of fund good for the investment period of 10-12 years to generate XIRR of 15%?
Omkeshwar Singh: Your choice of funds is good, and the portfolio has potential to generate the required returns
How can I use part of Rs 30 Lakhs in short term debt investment, please suggest funds?
Omkeshwar Singh: You may opt for STP instead of SIP, invest in short term debts schemes of the AMCs chosen for Equity Investment and do a STP from short term debt fund scheme into required Equity scheme
STP is better option if you have large funds at hand and want to stagger the investments over a period of time
SIP is better when the limited monthly savings can be put into investment
End result is same; STP also tends to provide you with additional returns as it remains invested in short term debt funds till it is systematically switched (STP) to Equity scheme
I have 8 lakhs invested in two other funds Axis Focus 25 Direct Growth and Principal Large Cap Direct Growth. I have had these two mutual funds for the last 1 year. Plus I hold additional cash of Rs 20 lakhs in Fixed Deposit, which will mature in next 6 to 8 months. How do you advise me to invest this Rs 28 lakhs? Should I time the market in the next 2 years and do periodic lump sum investment with this Rs 28 Lakhs?
Omkeshwar Singh: As indicated above, since the markets are at all-time high, it’s better to stagger your investments with monthly investments in the required schemes via STP
With this equity investment I will still have about Rs 30 lakhs in Debt which I do not want to move to equity. I am 45 years old and a house wife and planning to retire at the age of 60 onwards. At this point there is no requirement for my family to depend on income from my investment.
Omkeshwar Singh: Considering your age and profile, there is an opportunity to explore hybrid funds for 10 years i.e. till age of 55 years, post that you may switch to debt funds.
The hybrid funds will provide a combination of debt and equity that has more chances to grow your corpus compared to debt only investment.
Aurobindo Saha: I need your advice to help consolidate the below 6 funds in my folio. All these crossed 1 year of investment and does not have exit load. I want to be tax conscious, since I am in the 30% bracket. Should I start considering consolidation towards the end of the financial year to ensure I stay below 1 L profit? The concern is that the 14.5 profit I have today will take a long time to do tax free consolidation. This makes me wonder if it makes sense to pay LTCG tax and try to correct over diversification mistakes? The funds are good and these six funds amount to 35 L principal that is giving 14.5 L profit now and average investment period is about 2 – 3 years. I have no hurry to withdraw in the next 10 to 15 years, over diversification is the only concern. Please let me know your advice.
Omkeshwar Singh: These are good funds and can be continued if funds are not required. Further 4 to 6 funds are decent and not overdiversification.
Prudent approach is to book partial profits i.e. 30% to 50% depending upon risk appetite when markets are at all time high and remaining can remain invested and re -enter with margin of safety is high.
Capital gain is paid on profits, so it makes sense to book profits (partial) and pay the LTCG because if the profits (notional) vanishes then it will be a missed opportunity.
FYI, currently I am investing 2 Lakhs per month in SIP mode in the below funds, with desire to increase debt allocation.
Omkeshwar Singh: Continue with these investments
Tapas Chowdhury: I am 40 years old & just recently (6 months back) started investing in SIPs. Currently I am investing in 2 Funds:
1. Mirae Asset Emerging Bluechip Fund – Growth – 2,500 (per month)
2. SBI Blue Chip Fund – Growth – 1,500 (per month)
Kindly advice should I continue & also I am planning to invest another 10,000 per month for next 2-3 Years; please suggest the funds.
Omkeshwar Singh: These are good funds, please continue.
You may consider below funds from below since horizon is 2-3 years:
- EDELWEISS BALANCED ADVANTAGE FUND – GROWTH OPTION
- TATA BALANCED ADVANTAGE FUND PLAN GROWTH
Ajay Arora: Please suggest 3 mutual funds for lump sum investment with limited downside risk and decent returns say 10% for 3 years holding period.
Omkeshwar Singh: You may consider hybrid funds:
- EDELWEISS BALANCED ADVANTAGE FUND – GROWTH OPTION
- TATA BALANCED ADVANTAGE FUND GROWTH
- UNION BALANCED ADVANTAGE FUND – GROWTH
Rahul Singh: I hope you are doing well. I am 25 years old and looking for long term investing. I started investing 2 months back. Can you please review my portfolio?
Hdfc sensex index fund – 2k
Parag Parikh MF – 2k
Mirae asset tax saver – 2k
Axis small cap – 500
And please suggest some good debt fund for lump sum investment.
Omkeshwar Singh: All 4 funds are good; please continue
Debt funds for 1 to 3 years, short duration is fine however if longer term debt funds are to be considered then banking and PSU and corporate bond funds are better
- Aditya Birla Sun Life Short Term Fund – Growth
- Hdfc Short Term Debt Fund – Growth
Medium to long term
- Kotak Banking And Psu Fund – Growth
- Aditya Birla Sun Life Corporate Bond Fund – Growth
Kunal Chattopadhyay: I have just started investing in mutual funds since last March with very small amount in 3 different sips out of which one is NFO:
1. QUANT TAX PLAN DIRECT GROWTH
2. SBI BANKING AND FINANCIAL SERVICES DIRECT GROWTH
1. TATA DIVIDEND YIELD FUND DIRECT GROWTH
Monthly SIP in all Three is of 500 Rs each.
From July I want to invest 20,000 monthly
All in equity plans only
Shall I continue with the above plan?
Or will you suggest any new options
How much Corpus I can accumulate by the end of 10th year down the line if I invest 20,000 monthly?
Omkeshwar Singh: You may consider any 3 of these good quality funds with decent margin of safety
Corpus that can be created in 10 years with monthly investment of Rs. 10000 can be 25 lakhs
A J Jacob: I have these MFs. Can you suggest which one to retain and any other MF to add to my portfolio? Currently I don’t have any active sip. I invest in lump sum. Am I invested in any similar kid of MF?
DSP Small Cap Fund- Regular Plan – Growth Rs 99,900
HDFC Mid-Cap Opportunities Fund – Regular Plan – Growth Rs 99,900
Tata India Consumer Fund Regular Plan Growth Rs 88000
Aditya Birla Sun Life Top 100 Fund – Growth-Regular Plan Rs 99000
SBI Blue Chip Fund-Reg Plan (G) Rs 99000
Aditya Birla Sun Life Banking and Financial Service Fund – Growth-Regular Plan Rs 30,000
HDFC Housing Opportunities Fund 1 Rs 50,000
ICICI Prudential Multicap Fund (G) Rs 100,000
Aditya Birla Sun Life Multi-Cap Fund – Growth Rs 100,000
Omkeshwar Singh: You may consider to consolidate into good quality funds with decent margin of safety
RAKESH SHARMA: I’ve started an SIP investment in below funds:
ICICI prudential technology Direct Plan Growth- 2500 pm
ICICI Prudential Long Term Equity Tax Saving Growth – 500
Aditya Birla Sun Life Nifty 50 Equal Weight Index Direct (NFO) – 1000.
Kindly advise your expertise on it.
Omkeshwar Singh: Please continue
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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