‘Please keep the expectation of returns from your MF investments between 12% and 15%.‘
Omkeshwar Singh, head, Rank MF, (external link) a mutual fund investment platform, answers your queries:
Nitin Arora: I am 33 year old & investing in MF from the last 5 years which have accumulated 20 lacs (market value) in my portfolio as on date. Currently I am investing 40000 PM through SIP route & my current portfolio is:
1. Axis Long Term Equity- Direct Growth – 5000 SIP Monthly
2. DSP Tax Saver- Direct Growth – 5000 SIP Monthly
1. HDFC Index Fund Sensex Plan- Direct Growth – 5000 SIP Monthly
2. Axis Bluechip- Direct Growth – 5000 SIP Monthly
1. HDFC Mid-Cap Opportunities- Direct Growth – 5000 SIP Monthly
2. Mirae Asset Emerging Bluechip- Direct growth- 2500 SIP Monthly
1. SBI Small Cap- Direct Growth – 5000 SIP Monthly
2. DSP Small Cap- Direct Growth – 5000 SIP Monthly
1. ABSL Banking & Financial Services- Direct Growth- 2500 SIP Monthly
1. ABSL Liquid Fund- 2 Lacs LumSum for emergency use
I want to accumulate 1.5 crore at the age of 40 & expecting 15-18% CAGR for next 7 years from my current investment. Please guide me whether I am on the right track or do I need to make any changes in my portfolio?
I can increase my by 5% each year.
Omkeshwar Singh: Please continue as planned; however, keep the expectation of returns between 12% and 15%.
Basic thumb rule is risk free returns (10 years govt bond returns) + inflation + equity risk premium
Vijay R: I am planning to invest 40K per month for the next 4 years.. I am okay to take some risks. Is this portfolio good enough to start the investment? Please advice.
DSP Midcap Reg-G Rs 4,000
Axis Bluechip-G Rs 6,000
Kotak Corporate Bond Standard-G Rs 6,000
Kotak Flexicap Reg-G Rs 6,000
ICICI Pru Medium Term Bond-G Rs 6,000
ICICI Pru Multicap-G Rs 6,000
ICICI Pru Bluechip-G Rs 6,000
Omkeshwar Singh: These are fine, please continue.
INDRAJIT GHOSH: I am 38 years old. I am presently investing in the following funds:
a. IDFC Focused EF-Gr- Dir Plan
b. Tata India Pharma Dir Plan Gr
c. ICICI Bluechip Fund- Direct Plan Gr( Formerly ICICI Prudential Focused Bluechip Equity Fund)
d. SBI Small Cap Fund Dir Gr( Formerly SBI and Midcap Fund)
e. SBI BFS Fund Direct Plan Gr
f. SBI Nifty Index Fund- Dir Gr
Please guide on the above funds and recommendations if any. I want to invest Rs 50000 lump sum in SIP too. Please guide.
SBI Focused Equity Fund Direct Gr (Formerly SBI Emerging Business Fund).
Omkeshwar Singh: Please continue and SBI Focused is a good fund.
Roy K Jose: I am 57 years old holding Axis Focused 25 fund – Growth Option at a base price of 26.32 .What should I do hold or exit?
Omkeshwar Singh: Please continue to hold.
Manish Jain: Advise about short term 18 to 20 months horizon best return MF’s to invest (RIO 15%). What’s your opinion about opting for PMS over MFs? Any best PMS you can recommend.
Omkeshwar Singh: Dear Manish, I do not track PMSs therefore will not be able to comment on it. Both these modes have their own advantages and disadvantages, cost wise and tax wise MF is better option.
R N Kumawat: Thanks for providing fruitful information on MF investment strategies. Sir I am 49 year old and want to invest Rs 10000 each for my two sons who are adults. I have a dream for them to have Rs 7 crore when they attain 50 years by investing SIP of Rs 10000 per month.
My submission is which MF do I choose to make dream come true or is this is an illusion. The investment period would be 25 years.
Omkeshwar Singh: Sir, disciplined investments makes dream crystalise into realities!
The below funds may be considered:
Pranjit Prasad Sahoo: Sir I am 45 years old and my wife 35 yrs we both investing in following MF for our child’s education and wealth creation from 03/2018 .Our time horizon is 15 yrs.
1. HDFC EQUITY FUND REGULAR GROWTH Rs 3000/month
2. AXIS LONG TERM EQUITY FUND DIRECT GROWTH RS 2000/MONTH.
3. SBI SMALL CAP FUND DIRECT GROWTH RS 2000/MONTH.
4. SBI TECHNOLOGY FUND DIRECT GROWTH RS 2000/MONTH.
5. PARAG PARIKH FLEXI CAP FUND DIRECT GROWTH RS 1000/MONTH.
My wife’s portfolio:
1. MIRAE ASSET EMERGING BLUE CHIP FUND DIRECT GROWTH RS 3000/MONTH
2. CANARA ROBECCO EMERGING EQUITY FUND Rs 1500/MONTH
3. CANARA ROBECCO BLUE CHIP FUND DIRECT GROWTH RS 1000/MONTH
4. MOTILAL OSWAL 35 CAP FUND RS 1500/MONTH.
5. L &T INDIA VALUE FUND RS 2000/MONTH.
6. SBI SMALL CAP FUND DIRECT GROWTH RS 2000/MONTH.
7. QUANT SMALL CAP FUND DIRECT GROWTH RS 2000/MONTH.
SIR please advice/suggestions regarding above investment required if any modifications? One more thing I want to invest more please suggest me some funds giving return above 20%.
Omkeshwar Singh: No changes are required; however, please keep the expectation of returns between 12% and 15%.
Basic thumb rule is risk free returns (10 years govt bond returns) + inflation + equity risk premium.
Prashanth K: Without much research I purchased these ELSS mutual funds to save tax, since they were for long term (3 years).
1. Franklin India Taxshield – Direct Plan
2. Canara Robeco Equity Tax Saver – Direct Plan
Now my friend said that Franklin has closed its debt funds. Do I need to worry? Am I able to sell these ELSS funds before 3 years completion?
Omkeshwar Singh: Equity and debt funds have different sets of market risk and therefore both needs to be considered separately. No need to panic, closure of debt funds have no impact on equity funds.
yuvaraj natarajan: I am 37 years old working in IT sector. Started mutual fund investing recently through SIPs and the following are my holdings.
axis esg equity – 5000/month
axis flexi cap – 3000/month
tata focused equity – 3000/month
uti flexi cap -3000/month
Planning to retire by the age of 50. Advise me on the present investments and the ones to be done to get good wealth creation in the next 10 years.
Omkeshwar Singh: These are good funds, please continue
ram gopal mukherjee: I am an avid reader of your insights on Mutual Funds at Rediff.com. I am a retired senior citizen and I am having a SIP with Axis Long Term Equity Fund (ELSS) for 80 savings.
My question is:
Whether I can continue with this SIP and simultaneously start a SWP from this month, since the SIP has been going on for more than three years? Could the SIP and SWP from the same fund be simultaneously done? Waiting for your valued reply.
Omkeshwar Singh: Yes SIP and SWP can be done from the same fund. However please keep SWP at 7.5% to 8% of the corpus for perpetuity.
tariq masood: I read your responses regularly, thank you for providing insights. I’m 39 years and started SIP from March 2021.
1. Parag Parik Flexi Fund – Growth (10k)
2. Axis small Cap – Growth (5k)
3. Mirae Tax Saver – Growth (5k)
I would like to continue for minimum 22 years as these funds are not needed and would increase 1k in each fund every year. Would review every 3 years to see if they are trending well.
Please let me know if this makes sense or I need to take a different approach.
Omkeshwar Singh: It makes perfect sense. No need to doubt your approach.
Note: I do invest in equity, NPS, EPF and Gold.
Omkeshwar Singh: Nice.
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.
You can find more of Mr Singh’s answers here.
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