Do you have mutual fund queries?
Please ask your questions here and rediffGURU Dev Ashish, founder, StableInvestor (external link), will answer them.
Anonymous: hi, I am investing monthly around Rs 12.5K in MF, as per the following – Canara Robeco Small capMF – Rs 2.5K, PGIM Mid cap oppurtunities – Rs 2.5K, Tata Digital – Rs 2.5K, Quant Active – Rs 5K. I am intending to increase monthly investment in MF from present Rs 12.5 k to Rs 50K & needed a corpus of at least 1.25 Cr in next 10 years. Can you check my portfolio & suggest for any changes or the same appears to be in order?
While the amount that you now wish to increase your monthly SIPs to, i.e. Rs 50,000 would be a reasonably good figure to achieve Rs 1.25 Cr in 10 years, the choice of funds needs a thought.
First of all, nothing is known about your risk appetite. But assuming you belong to at least the Moderately Aggressive bucket, you should stick to the following fund categories and allocations:
- Largecap Index Funds – 10K
- Flexicap Funds – 12.5-15K
- Large&Midcap Funds – 12.5-15K
- Midcap Funds – 5-7.5K
- Smallcap Funds – 5-7.5K
In my view, you don’t need sectoral or thematic funds (like the one you have) in your portfolio. The above-suggested fund allocation will be sufficient to help you reach your goal. Also, make sure you increase your monthly SIPs each year as your income increases.
Also, just targeting a future amount may not be enough. It is always advisable to link all your investments to your real financial goals and follow a goal-based investment philosophy.
And if you have other goals that also need investment and you are unsure how to allocate to them all, it is suggested that you get in touch with an investment advisor with full details to better plan your finances.
Ashesh: HI.. I want to know which mf can deliver good returns in FY 23-24. I mean sectors and then mf in those sectors. Kindly share 5-6 max
There is no sure-shot method to predict which mutual fund scheme or sector will do well in the short term or in the next 1 year.
Most investors are better off picking funds from diversified equity fund categories and being willing to remain invested for the long term, which is at least 5 years.
Anonymous: Sir, I want to invest 5000 in MF although I am investing 5500 in Ipru multicap, HDFc ELSS, Hdfc Top 100 now in which fund I should invest?
From what I understand, it seems that you are already investing a total of Rs 5500 per month in the 3 schemes mentioned by you. And now you want to increase the amount by another Rs 5000, thereby taking the total to Rs 10,500 per month. For this monthly investment amount, generally having 1-2 funds/schemes is enough. So you can either increase your SIPs in existing funds or go for Passive Large-cap funds or Flexi-cap Funds.
TADIKAMALLA: Please suggest Best ELSS Scheme
There is no one best ELSS fund. Different ELSS funds have different investment approaches and you should pick one which fits well in your risk profile and complements the portfolio of existing mutual funds in your portfolio. So for example if you have a large-cap fund already in your portfolio, then picking an ELSS fund which has higher exposure to non-large-caps is what you should consider assuming your risk profile is suited for that. Also, when picking ELSS funds, look at the fund vintage and investment philosophy of the AMC/fund manager handling it. Better to go with funds which have seen a full market cycle instead of yet-to-prove newer ones.
Pravah: I am 32 years old salaried person. Monthly salary is 50k. I want to diversify 80k in large, mid and small cap mutual funds. Which plans should I choose? Please help as I am new to mutual funds.
It is not clear how you want to invest 80K from a 50K monthly income. If this is a typo and you meant 8K per month, then for this amount, you don’t need to diversify too much. Just pick one passive index fund and a flexicap fund for this and start your SIPs. Even picking one from these two is sufficient.
When picking funds look at the fund vintage and investment philosophy of the AMC/fund manager handling it. Better to go with funds which have seen a full market cycle instead of yet-to-prove newer ones.
If you meant one time Rs 80K to be distributed into funds, then also you can follow the above suggested fund categories
rediffGURU Dev Ashish‘s personal disclaimer: As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. The views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.
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