Best 10 Mutual Funds to Invest in India for 2014

There are more than two dozen mutual fund companies operate in India and each mutual fund company offers so many varieties of funds. So for new investors or for someone who need shortlisting will automatically get confused. Just to help you all, I am providing here the list of funds which I personally feel are top to invest.

Note-I published the post for 2015 “Top 10 Best Mutual Funds to invest in India for 2015“. Please go through it for latest reviews.

Why I have chosen 10 funds only?

Maintaining so many funds in your portfolio is not a better way of managing your money. Many times you may find so many overlapping. Hence with around 5 funds you can create a good equity portfolio. Hence to make it little bit comfortable in choosing funds, I have selected only top 10 funds.

Here I am providing best top 10 equity mutual funds only. But I am completely neglecting the sector funds, international funds, Index Funds, Debt Funds or Gold Funds (as my concentration is on diversified equity).

How I selected these funds?

I selected these funds based on the quality, transparency and how old is the mutual fund company. Then I moved to the performance of the fund for 15-10 years or minimum 5 years old fund. Because by choosing the oldest fund we can easily find the track record of the fund which is not possible with new funds. Finally based on ranking in the category, expense ratio and some other information.

Best 2 Large Cap Funds to Invest in India for 2014

Best Top 2 Large Cap Funds to Invest in India for 2014

Best 2 Large and Mid Cap Funds to Invest in India for 2014

Best Top 2 Large and Mid Cap Funds to Invest in India for 2014

It is hard for me to neglect my all time favorite fund HDFC Top 200 Fund (G). But considering the current performance of the fund, I myself thought some doubts on the same and stayed away. Otherwise I still strongly recommend HDFC Top 200 Fund (G) and I am confident that it will once again come out with the best performance.

I selected Quantum Long Term Equity (G) over other best performing funds based on the low expense ratio. But do remember that Quantum Long Term Equity (G) has some strict exit loads like 4% from within 6 months, 3% after 6 months but within a year, 2% after 1 year but within 18 months, 1% between 18 months to 2 years and no load after 2 years. But whereas for all equity funds no exit load after 1 year.

Best 2 Mid and Small Cap Funds to Invest in India for 2014

Best Top 2 Mid and Small Cap Funds to Invest in India for 2014

The reliance equity opportunities fund is a very dynamic fund and we can’t say that it belongs to any category. But as of now this is currently invested in Mid and Small Cap Funds. Hence I have chosen this fund.

Best 2 Multi Cap Funds to Invest in India for 2014

Best 2 Multi Cap Funds to Invest in India for 2014

Second fund is missing 🙂 Yes, while searching I didn’t find a fund which is comforting to me. So I left that second fund choice blank.

Best 2 Balanced Funds Equity Oriented to Invest in India for 2014

Best Top 2 Balanced Funds Equity Oriented to Invest in India for 2014

Best 2 Tax Saving Mutual Funds (ELSS) to Invest in India for 2014

Why I have chosen Tax Saving Mutual funds when this is not included as a tax saving instrument under Sec80C in the upcoming Direct Tax Code (DTC) ? Because we can’t believe political class for how and when they act 🙂

Best Top 2 Tax Saving Mutual Funds (ELSS) to Invest in India for 2014

Hope above list will simplify to the extent. According to me these funds are best. But with a different set of permutation and combination you may come out with the funds which are not in the above list.  Let us know your views too 🙂

Now proceed for investing by choosing the right platform for you by reading my latest post “How to invest in Mutual Funds in India online?

1,271 Responses

  1. I have invested 19lakh at ICICI PRUDENTIAL MULTI GROWTH MUTUAL FUND during Nov.2019. I am getting monthly divident of around 20k. Now, my question is how much I will be affected during the present cornovirus cases and if it continues for another 6 months or more.My NAV decreases below 18L. How my NAV will decrease further at maxim.

  2. Hi,

    I have invested in ICICI Wealth builder II. I am paying the premium of 1,20,000 per annum. I am looking for investment for more 10-15 years. Do you think that this is the good option or should i surrender the policy. As of now, I have paid just one premium.

    Thanks,
    Anuj Jain

  3. Hi,
    Hope you are doing good!
    Im Sheetal, a NRI and iam looking for a yearly investment for like next 5 years. One of the ICICI represntative suggested me ICICI pru Maximizer fund V weatlh builder investment plan. He says that on paper ofcourse they say that they will give 8% but they will be investing in equity which will eventually give 14% interest.
    So for eg if i Invest 1 lak per year then my actual investment after 5 years would be 5 lak but with 14% recurring interest i will get around 9-9.5 lak. Not sure if this actually happens.
    I need your expert suggestion on such investment and would also like to hear your recommendation so as where to invest
    Thanks!

    1. Sheetal-I am fine and hope the same with you too. First thing, stay away from these bankers. Nowadays they turned to SELLERS than providing you banking service. They are the dangerous species nowadays. Coming back to your investment, equity product is not suitable for your timeframe. Can the so-called bank representative give in written that it gives you more than 9% return (forget about his big claims of 14%)? If so I am also ready to invest 🙂
      Don’t fall into such trap. If your timeframe is just 5 years and considering your residential status, I suggest NRI deposits (which are tax-free).

  4. dear sir/-
    mee 1 sbi midcap plan lena chati hu monthily plan, maanthily me rs-3000 rupices hoga term 20 yers rehega to maturiti kitne salo me hoga or kitna maturiti melegi please answer

  5. Dear Basu,
    Now after having a clear idea and coming to a conclusion I had started investing Rs. 10,000 in MF flexi – sip from december-2015 from my trading account mentioning a investment span of 5 years.
    1. franklin india prima plus- 2000
    2. franklin india blue chip -3000
    3. icici pru focussed blue chip fund-3000
    4. icici pru value discovery fund-2000

    what happens if i forget to invest the flexi-sip for a month or stop and switch over to another fund? Can the term be increased or decreased?

    Also took a pure term plan 2cr from icici pru Jan -16, also hav LIC JA -5lk SA and money back and one more small policy. Also ppf was continued from 4years to the full eligible saving extent.
    Last year starting dropped all other 5 ulip policies (some under loss) and took a flat with that amount and registered remaining on loan. 1st home loan remaining balance was cleared.

    I want you to suggest some more investment options in MF like equity,debit, FMP or some other NPS, annuity to create corpus for the retirement fund and children education. 1st child-7yrs and 2nd baby- 09 months. Instead of going with bank RD Iam thinking to open an ppf a/c in the name of both the kids also. Can invest 10-20 k.

    Please suggest.

    1. Sekhar-Equity investment for a period 5 years? I simply avoid it. Why you selected Flexi SIP? If you have term insurance then why LIC JA, Money Back and other ULIPS? the problem with you is, you are eager to invest, but don’t know why, when you need and how much to expect.

      1. Sir,
        1.It was just the starting in MF inverstments and max term available 120months in my trading a/c and my requirement is after 10 years when my elder kid (7yrs) finishes his collage.
        2. Thinking that whenever i have a chance to invest some more in between i had opted for flexi-sip
        3.No ulips at all, Small money back 3000yrly premium took 17yrs back (term 25yrs pay20yrs) and LIC JA 6yrs back. Just recently opted for the term insurance.

        Similarly for the 2nd kid (10months) after 15-17years term

        I understand what u mean

        Please suggest

        1. Sekhar-1) In that case retain one large cap of Franklin and a multi-cap of ICICI. But with a ratio of equity to debt 50:50.
          2) I answered already.
          3) Then, try to come out of those other insurance policies at the earliest.
          4) For second kid also, you can use the same funds and add one small and mid cap fund. Ratio of equity to debt must be 70:30.

          1. thank u for the advise, i will try to close those which were not so important. And, will also start to invest as suggested 1small cap and 1 mid cap.

            Just 1 query,
            Is there any difference in investing MF sip/flexi sip through – demat trading account or the individual fund websites.

  6. i have invest in birla sunlife advantage growth direct
    and hdfc reitrement saving fund so i have take correct decision or not?

  7. Hi Basavaraj, i am yogender pal, i want to invest Rs.2000/. please suggest me in which mutual fund is best for next 6 to 8 years.

  8. Hello Basu….Hope everything will be great. I have term plan, Jeevan ankur policy for kid & health insurence as a back up and aa good amount for financial safety of my family. But for the future better returns, i want to invest in SIP & i am selected some funds.
    Birla MNC fund-5000
    SBI blue chip equity fund-3000
    Axis long term equity fund-4500
    SBI small & mid cap-3000
    Reliance equity opp-2500
    Birla top 100-2500
    IDBI diversified equity-2500
    Reliance small cap-2000

    Please provide guidance
    Thanks regards
    Sandeep

  9. Hello, I am an NRI. Started investing in 2011 April, all growth.
    20K/ month – HDFC Top 200 ( this was stopped last year since they stoppped taking NRI investments)
    10K/ month – IDFC Premier Equity – IDFC PEF-Gr-(Dir Pln).
    10k/ month – RELIANCE REGULAR SAVINGS FUND – EQUITY PLAN – DIRECT GROWTH

    I see not so good ratings for IDFC & Reliance currently. should I switch or continue . plz advice

    Also what will happen to HDFC fund if I dont withdraw and let it sit ? will it continue to grow ?

  10. Hello Bassu, i am Sandeep . please suggest some good Short term funds. Want to invest 30000 per month for 2 years.

  11. Hello Mr Basavaraj , i am Sandeep 33 years old. I want to invest in short debt funds , because i need money after 2 years & i want to invest 35000 rs per month. i am having one Jeevan ankur policy for my kid , having life insurance policy & term plan for safety. Please suggest some short debt funds with your fine judgement.

  12. Hello Sir,

    I want to invest small amount (500 to 1000 ) monthly for long term, my plan is to get the good returns after 10 years.
    what should i do. i am very new to this i don’t know too much about market SIP as well.So kindly suggest.

    Thank you
    Yogesh

      1. Thank you for reply 🙂

        i think i will go with the HDFC balance funds (G).

        One more thing Basavaraji if i want to learn or gain more knowledge about the SIP what could be the best and simple way.

        Thank you
        YOGESH

  13. Sir,
    I am NRI,Living in AUH,
    I want to invest the money in mutual fund by using SIP.
    Target to get good amount of fund for my daughter education.she is one month old.
    Regards/Prashant

      1. I am NRI and Planning to start invest in mutual funds for a period 5 to 10 years.
        I can effort monthy 25000/- Rs.

        Could you tell me some best mutual funds for long term .

  14. Hi ,

    I am 28 years old and investing 10-15k per month in the below mutual funds from past 2 years :

    SBI Pharma (500 pm + Additional purchase )
    SBI FMCG (Only additional purchase , depends upon the market )
    SBI Business Emerging Fund ( 1500 pm)

    Franklin Bluechip (1000 pm)
    Franklin India Tax Shield ( Only additional purchase , depends upon the market )
    Axis Long Term Equity Fund (1000 pm)

    Could you please suggest me on the below things :

    1. Fund selection is good or not ?
    2. Should I switch to different fund ?

    And I am ready to take risk and looking for high returns.

    Regards,
    Pranay

      1. Sir, my name is Abhishek and I would like to invest 1000-2000 rupees per month. I have LIC of 200000 (jeevan anand). and I use to submit F.D. in Bank but apart from this, I invested in sbi bluechip fund regular growth1000 rs. pm for 3 yrs and in sbi magnum balanced fund regular growth 2000 rs. pm for 3 yrs now i would like to invest 1000 rs. pm either in franklin india tax shield growth or in sbi magnum midcap growth for 3yrs, i am confused I need a expert advise, I think you are the best to answer me. Please share your idea as per your exp. thanks a lot once again 

  15. Hi Sir,
    I have been following you on twitter ….Really appreciate your efforts and the way you have been helping various people in selecting mutual funds.

    I am just 23 years old and want to invest 10k to 15k per month , and have no idea about mutual funds.

    Could you please suggest me one or two good schemes i should go for and returns i can expect .

    Regards
    Alok Raman

  16. 1) UTI Opportunities Fund
    2) Franklin India Bluechip Fund
    3) IDFC Premier Equity Fund
    4) ICICI Prudential Discovery Fund
    Are this mutual fund fund are taxble to NRI if transaction is from NRO a/c and also if transaction take place from NRE a/c then it will be taxble.I am investing 10000 pm in all Mutual fund

  17. Hi Sir,

    Need your expertise,

    I am filing my returns for assessment year 15-16. I have investment in ELSS and have gained RS 6600 for the previous year 14-15 so should I show that when I file returns or should I show it once after the maturity of the fund that’s is 3 year.

    My second question, I have some Long tem capital gain in stocks for the PY 14-15 and short term capital gain in stock for PY 13-14 can I net the loss with the gain for the AY 15-16.

    Note: this is the 1st time I am filing my IT return

    Please advice

    Thanks
    Ishmavel

  18. Hi Sir, I had short listed 2 mutual funds for my daughter’s (3yrs) education in SIP mode.Axis long term equity fund,Franklin india high growth companies fund. please suggest is this the best option or there is some more better plans available.And from were do i purchase these SIP’s.is there any online process or i had to go offline.I want to invest 2.5 + 2.5 k each.

  19. My bank relationship manager is asking me to invest in HDFC Pro growth fund for 5 years. Pls let me know how is the performance.

    1. Ashwini-Never ever listen to any such relationship managers. If you invest today and in bad case fund not perfomed then he may not be in a same chiar to answer you. Also, the said product is not a mutual fund but a ULIP.

  20. Hi Basu,

    Just want to know when we are purchasing a mutual fund, we can purchase thru RTA or NSE/MFSS. I have below doubts:

    • What are the difference between RTA and NSE/MFSS?
    • Which one is giving more benefit to investor?
    • I have noted if we purchase MF via NSE/MFSS then we have the more profit. If the same nav are for both how the profit will be different. Is it correct?

    Thanks in Advance.

    Vinod Singh

  21. Dear BasavRaj

    I am currently having SIPof Rs 1000/month in reliance gold saving fund which is showing negative return.Kindly suggest me whether switching to other reliance fund is a right decision or i should hold this for some more time.Kindly suggest me switching option in lieu of it.

    1. Ashish-First let me know for what purpose you invested in this. Also, switching to other Reliance Funds means? I think you are not sure of what you want to do. Please clarify first about the investment purpose.

      1. Thanks for reply.
        Actually my portfolio has three reliance sip…reliance small cap,reliance pharma fund and reliance gold saving fund.I have started these on basis of suggestion by my friend who works in reliance almost year and half back.The aim is wealth creation over a time period.But reliance gold fund is showing negative growth persistently.hence you are requested to suggest whether switch over is recommended and if yes than which fund should i switch into.
        Regards

        1. Ashish-To me any sector specific exposure is risky like infra, pharma or gold. Instead diversified funds are best. Your friend may be suggested because of his positive expectation from Reliance. But you have options to ivnest in other funds which are far better than these selected Relaiance Funds. Hence, I suggest to stay away from all the three.

  22. I would like to invest Rs.20000 in tata ethical fund as per shariah law for the next 5 years, please suggest whether it is recommended?

  23. Sir,
    I would like to thank u very much
    I am nri and new investor & no knowledge about mutual fund.
    I want to invest in mutual fund minimum lump sum amount at one time . in different scheme what are the funds which is suitable for beginners (not sip)
    if investment through bank ,like sbi, axis ,federal bank , or which is better option
    please help me
    thanking you
    jp

  24. Sir, I am new investor & no knowledge about mutual fund return. I want to invest in mutual fund Rs 2 lac at one time for five year. In addition to above i am also interested to invests Rs 10000/- per month in Mutual fund. Where is suitable to me for investment in Fund.

    1. Sabauddin-For Rs.2 lakh, no need to invest in equity mutual fund. However, you can use the short term debt funds or Bank FDs. Regarding monthly investment, I am uable to comment as you have not mentioned your waiting period.

  25. I am reading your Blogs and articles and quite impressed!
    I have following MFs,

    1 HDFC Gold fund-2000/- pm from last three years
    2 uti opportunity-1500/- pm from last one year
    3 icici balanced advantage -1000 pm from last one year
    4 hdfc mid cap opportunity-1000 per month from last six months
    5 canara robeco infrastructure -1000 per month from last six months
    6 franklin india high growth-1000 per month from last six months

    Further, I am interest for invest Rs 1000 per month in the following:-

    UTI dynamic bond fund or l&T flexi bond fund or L& T short term opportunity fund

    I am 45 yrs. old. please suggest me for my current mf and further planning mf

      1. Sir, I have no knowledge about mutual fund return. the above investment on the basis of suggestion given to me by policy agent but now please suggest me the best for me.

        1. Virender-Avoid Gold or sector funds. Have one large cap like Franklin or ICICI BLuechip, one small/mid cap like HDFC Midcap Opp or Franklin India Smaller Companies and a balanced fund like HDFC. No more funds required. For debt category, I suggest you to short term debt funds.

          1. Thanks for guide me, I want to invest in L&T emerging business mutual fund through SIP of Rs. 1500/- PM or Rs. 50000/- , can you guide me about this fund and suggest me as per my existing fund. thanks

  26. I am 31 years old. Now i want to invest for saving purpose as well as other purpose. none of the policy i am holding currently. I want to invest through SIP 1000 per months. Further i will increase it as per my need. suggest me for better planning..

    1. Dear Mr basu
      I would like to thank u very much for all the articles which has helped me learn abt financial planning.
      I am 40 year old professional. I do not have fixed income. I have been investing lumpsum in mf for quite some time. All the funds were bought in NFO. Now after reading UR articles I realise I have to consolidate my mf portfolio.
      My insurance,health policies are adequate.
      Plz help me choose one fund from each category so that I can sell all other funds in same category and buy into what u suggest

      Equity..M&SC
      DSPBR micro cap fund
      FRANKLIN SMALLER COMPANIES fund
      RELIANCNCE EQUITY OPP FUND
      RELIANCE MID &SMALL CAP FUND
      TATA MIDCAP GROWTH FUND
      SBI MAGNUM MIDCAP FUND

      MULTICAP
      FRANKLIN INDIA HIGH GROWTH COMPANIES FUND
      TATA DIV YIELD FUND PLAN A

      LC & MC
      FRANKLIN INDIA PRIMA PLUS
      HDFC CAPITAL BUILDER FUND
      L&T EQITY FUND
      TATA EQ OPP FUND PLAN A

      LC
      UTI TOP 100

      Thank u fr ur response.

  27. Hello,

    I want to know about rebalancing of fund.
    i.e. let say we have invested 1 fund around 3-4 years(created a good amount of money) and after that fund stop performing then everyone suggest that switch fund i.e. redeem money from 1 fund and invest in other.

    Also when we invest in fund that it is said that we should not invest lumsump.

    so option which is available is STP.

    is this is the only way while doing rebalancing ?

    1. Prashant-Ideally there are many ways to do rebalancing. But when your goal is far then a lump sum switch is not a problem. When your goal is near then anyhow you are decreasing your equity exposure. So you can redeem and invest to debt (based on the % of rebalancing).

  28. hi mr basu,
    i am confused.i am investing in two sip from december 2013 i.e,
    ICICI PRUDENTIAL FOCUSSED BLUECHIP EQUITY(G)- 1000
    IDFC PREMIER EQUITY FUND (G)-2000.
    I WANT TO INVEST ANOTHER 10000 /- IN SIP FOR RS 5000 EACH IN TWO FUNDS ONE FOR BUYING A HOUSE IN NEXT 3-4 YEARS AND ONE FOR LONG TERM FOR NEXT 15 TO 20 YEARS.CAN YOU PLEASE TELL ME WHICH FUNDS SHOULD I CONSIDER AND SHOULD I CONTINUE TO INVEST IN THE EXISTING ABOVE TWO FUNDS,PLEASE ADVICE?

  29. Sir,

    This is Hari. I want to invest Rs. 3000/- p.m (Rs. 1000/- of each ) in three different SIP schemes for the period of next 20-25 years. Kindly suggest me the best plans..

  30. Dear Sir,

    My current Age is 22 and recently i got a new Job after Finishing my College. My Current CTC is 24000 Per month. I want to Invest maximum 4 to 5 Thousands per month but don’t have any Idea regarding the Investments. In Present Scenario which Policy would be good one for me to start Investment. Pls Suggest me ASAP.

    Looking for some Positive Reply as well.
    Thanks
    Saurav

    1. Saurav-Policy in the sense Life Insurance for INVESTMENT? Don’t combine your investment with insurance. Separate them and if your time horizon is more than 7+ years then start to invest in equity mutual funds. Otherwise use debt products.

  31. Hi,

    A question not relevant to MF. Request you to guide on the same.
    (1) I would like to invest in Money Market instruments. Kindly suggest what are the options?

    (2) I am preferring to invest in Treasury Bill for 91 day to 364 days by opening Constituent SGL account with a Bank / NSDL. Kindly guide with the suggestion whether to invest or not and the process how to go how about it?
    (3) Besides Mutual Fund and above, what are the other avenues of investments for decent returns. Please guide.

  32. Dear Mr. Tonagatti,
    I have some funds (SIP) for the last 5 years running with a horizon of 10 years, all growth options. Please advice and predict your views
    1. Reliance Growth Fund – growth- Rs. 1000 and Rs. 500 = Rs. 1500
    2. Reliance Diversified Power sector Fund – growth – Rs 1000/-
    3. Reliance Banking Fund – growth- Rs. 1000/-
    4. DSP Black Rock growth – Rs 500/-
    5. HDFC Top 200-0 Growth- Rs. 1000/-
    6. SBI Contra fund regular plan – growth —Rs. 1000/- (Now stopped)
    7. HDFC Mid-Cap Opportunities Fund – Growth – Rs. 1000/- (newly started)

    Motilal Oswal Focussed 35 gowth – Rs. 30,000.. my latest buy.

    Now I would like to invest one more of Rs. 1000/- from this month only….Please advice, from where to get the maximum benefit. Noted: I dont require any tax saving fund.
    Please advice Sir.

      1. Sir, Could you please suggest, which ones should be stopped and where to put in my money in SIP mode.

  33. Hi Basu,

    I have invested in the below funds,
    1.Large Cap- ICICI Bluechip growth
    2.Mid & Small – HDFC Mid-cap Opp. Fund
    3.Balance-HDFC Balanced Fund
    4.Diversified -Franklin India High Growth Companies Fund

    all fund are SIP with 1 K per month, now please suggest me for 5 to 7 years all are ok?

    Thanks,
    Ramesh

  34. Hello,
    I am a regular follower of you blog. Wanted to know about debt fund. I want to invest to get a return in 2-3 years.
    How good is it to take Debt fund for a term 2-3 years goal? I am planning to go for SIP.
    Also, can you please tell me a few Debt-income options, as to which one to go for.

  35. Hello Sir,

    I am working from last two years and have been doing safe investments like RDs and FDs. But now I want to start investing in SIPs. Please suggest me a good equity mutual fund plan in ICICI bank. I visited bank branch and they directly recommended Value Discovery Fund. I would like to know any other good plans which dont involve high risk. I would like to invest 2 -3 K monthly in SIP please suggest accordingly.

    Thanks in advance 🙂

      1. Hi,

        Please find my answers below

        From high risk I mean I dont want to end up loosing capital amount at the end. 😉
        I would like to invest for 4 – 5 years for now and might extend it later on depending on my financial needs.
        As I am already banking with ICICI so any good SIPs within ICICI would be preferred (if they have one :-P) Else I’ll moving to HDFC or whereever you suggest.

        Good day!!

        1. Priya-The fund your ICICI Bank suggested is high-risk category considering your time frame of the investment. Because, it is small and mid cap fund where risk will be higher. Ideally in my view if your time frame is around 4-5 years then don’t enter into equity. For your information ICICI Bank is a different entity from ICICI Mutual Fund. ICICI Bank act like an agent to sell ICICI Mutual Fund Product. Hence, don’t be in wrong belief that if ICICI Bank or HDFC Bank suggest any product which involves their bank name means it is their own product.
          Never believe those Bank Officials who are eager to sell you any product. Becuase their only motive is to SELL. Once that is over then after few years they may not be in the same bank or at the same position. The risk of wrong investment entirely be on your own.
          As of now, no equity suggestion from my end (considering your time frame). It is left with you to believe ICICI or HDFC.

  36. Sir
    I am 31yts old earning 41000 per month.I want around 1.5lacs money on the month of December2015,so i want to invest in mutual fund with per month investment upto 12000.kindly suggest which mutual fund will better for me.

  37. I am 30 years old and have recently started investing 32,000/- per month via 3 SIP in Mutual fund for my Retirement and another 8,000/- per month via 2 SIP’s for Child Education & Marriage as below:

    Mutual Fund for Retirement: (Investment Horizon around 23 years for retirement)

    Birla Sun Life Top 100 Fund (G) – 15,000/- per month
    HDFC Balanced Fund (G) – 10,000/- per month
    UTI Mid Cap Fund (G) – 7,000/- per month.

    Mutual Funds for Child Education and Marriage:
    ICICI Pru Value Discovery Fund (G) – 5,000/- (Investment Horizon 15 years)
    Reliance Small Cap Fund (G) – 3000/- (Investment horizon 22 years)

    I do have some investments in PPF as well as FD in the debt component. I wish to check if I have the correct Mutual Fund portfolio or I need some changes. Kindly suggest.

    Regards,
    Rahul

  38. Sir,

    I have read your Blogs and suggestion and quite impressed!
    I am 33 years old, Monthly Income 52,000/-, I have following investments:-
    1) PPF= 20000/- (Per Month SIP 1000/-)
    2) Term Insurance: 7000/- (for sum insured 50 lacs)
    3) Bajaj Family floater Health Insurance: 9582/- (Sum insured 4,00,000, 2 adult and 1 child)
    4) LIC Jeevan Saral policy : Rs. 6,120/- P.A.
    5) Canara Robeceo Equity Tax Saver (G) : Rs.1000/- P.M. SIP (Total Invested amount Rs. 40,000/-)
    6) Axis Long Term Equity Fund (G) : Rs.1,000/-P.M. SIP ( Total Investment Rs. 9,000/-)
    7) L & T Tax Advantage Fund (G) : (Total Hold amount Rs.30,000/-)

    Liabilities:
    Car Loan: Rs.8000/- PM
    Personal Loan : 7500 /- PM
    Household expenses: 15000 PM
    Child Education: 7000/- PM

    My future needs:
    Require fund for my child education he is 4 years old now.
    Buy a home.

    1. Ashwani-First try to increase your term insurance to at least of 15-20 times of yearly expenses. Buy Accidental Insurance. Try to come out of LIC Plan. Retain one tax saving instead of two. Start with one Large Cap and one Small/Mid Cap Fund from above list.

  39. Hi Sir
    Thank you for the valuable info.
    Currently i do not have any insurance policies or investments also i am not interested in policies.
    But i wwant to take mutual funds where it shd be useful for my retirement plans i mean after my job and also for my kids study etc.. ( my age 33yrs i may work till 58age and i have 7yrs old kid) Please guide i want to invest at least for 10yrs so my kid will get money for the studies also i get some amount for for retirement income. Please suggest the best funds.

    Thank you
    venkat

  40. HI,

    Sir, I am 39 and plan to invest in a) TERM INSURANCE, b) MF.

    Term Insurance : I am intrested to go with TATA AIA for 40 years term. Because its give me insurance cover till Age 80 and also found that the premium are much lower then LIC and other top insurance company. Really want to know your view about that.

    Mutual Fund : from May onwards want to invest 50000 per month MF. So, far i have findout below few product and need to shortlist amound them (top 5).

    But, i would be really thankful to you if you help me to recommend right funds as i need to invest at least next 10 years in the same.

    i) Reliance Tax Saver Fund
    ii) Reliance Equity opportunity Fund (large)
    iii) ICICI Pro Focus Bluechip Fund (large)
    iv)Reliance Small Cap Fund (Small)
    v) ICICI value Discovery Fund (Large + Small)
    vi) IDFC primer Equity Fund (Small + Midcap)
    vii) UTI Equity Fund (G)
    viii) Birla Sunlife MNC fund (G)
    ix) UTI MNC Fund (G)

    Note:
    a) My wife is housewife
    b) I have 10 years old boy.

    Thanks
    Sanjay.

    1. Sanjay-First of all insurance not required after retirement. Second, so many funds not at all useful (even though currently they rank high). Instead one large cap fund like ICICI Bluechip and ICICI Discovery are enough.

  41. Hi
    I have monthly income of 31000, had insurance policy yearly premium 10000. Then monthly educational loan 5000 as emi. If i want to invest in Mutual fund,pl suggest some good funds for me.
    Thanks
    Ram

  42. Dear Sir,

    I am Israr, 30 year ,married and i have a 1.5 years old kid. I am working in gulf countries.
    I have not yet bought any Policy . I have done some online surfing and get convinced to buy a term insurance plan,but confused with pension plan ,

    Please advice me to buy an pension plan,some says you must get HDFC pro growth plans,some say go only with mutual no unit linked.

    Thanks

    Israr

  43. sir,

    good after noon,

    Sir, my name is Gaurav Kumar, and I would like to invest 1000-2000 rupees per month. I have LIC of 16000 (jeevan anand). and I use to submit F.D. in Bank but apart from this, I would like to invest (1000-2000). My friend suggest me for (franklin india) 1000/- per month. I need a expert advise, I think you are the best to answer me. Please share your idea as per your exp. thaks a lot once again my email id is mention below:-

    [email protected]
    [email protected]

    Warm Regards,

    Gaurav ——-,—-,–(@)

  44. Hi. I appreciate the work you are doing.Please suggest me investment in 2015 based on my last years investment mentioned below :-
    1)PPF – 70000
    2) LIC – 19216 (jeevan saral plan 165)4 policies of 4804 each
    3)LIC – 15000 i guess its term plan – jeevan anand or jeevan arogya – covers sum of 3600000
    4)Axis long term equity fund – 20000 – invested in feb 2015
    5) Reliance retirement fund – 20000 – invested in feb 2015 – advisor suggested that its a new launch and it will generate weatlh. He also said that its lock in period is 5 years or age 60 which ever comes later.
    6)HDFC top 200 fund – 25000 invested in dec 2014
    7) Sundaram world band fund – 25000 invested in dec 2014 – advisor suggested that its a new NFO and will definite generate wealth
    8)Reliance small & midcap fund – 2000 SIP since 2009.
    9)NSC – 20000-25000

    Suggest me what needs to be done for 2015.My motive is for tax saving plus wealth generation. My income is arnd 6-7 lacs yearly.

    Suggest SIP as well as lumpsum investment.

  45. sir, i know that mid cap and small cap funds are volatile than large cap funds.my view is of long term so is this right to invest in only mid and small cap funds?because if we compare return of 3 and 5 years mid and small cap funds are better performer than large cap fund.i also know when market falls then small cap fund decline sharper than large cap funds.but for long term perspective most of the mid and small cap fund have given more return than large cap fund.so is my decision right to invest only in mid and small cap fund as my view is of long term?

      1. thanks sir, i see many much time the lack of financial literacy in indians.you are working to guide them.i appreciate your noble deed.your contribution to the nation is equal to the soldier who fought for the country and you are fighting with financial illteracy.thanks once again

  46. Hi Basu,

    My Investments are :
    60000/- ICICI Pru Elite Life-SP – Maximiser Fund V (Income Fund) (Once in a year)
    51000/- LIC Jeevan Saral Policy (Monthly 4250)
    14000/-HDFC Term Insurance (1 Cr Sum assured) -Yearly
    12500/-ICICI Health Insurance(Critical Illness Covered) (10 Lac) — Yearly
    36000/- PPF (Monthly 3000)
    96000/- Land EMI (Purchased a land 2 years back in Jaipur and monthly EMI is 8000)

    Now I want to invest 6000 monthly in SIP in ELSS fund and I have chosen below fund:
    1.Axis Long Term Equity Fund(G) – 3000
    2. Reliance Tax Saver Fund – 3000

    can you please suggest me above funds are good for long term (around 15-20 yrs) and tell me that my portfolio is good or need to be changed or added.

    Regards,
    Rakesh Dadhich

  47. Hi,

    Thanks for the article. I am having below listed SIPs running. Please have a look and suggest if I need to change any of the below

    1>Frankline india blue chip- Rs 1000 pm
    2>reliance gold saving fund- Rs 2000 pm
    3>SBI emerging business fund- Rs 2000 pm
    4>Birla sunlife front line equity(B)- Rs 1000 pm
    5>Hdfc Prudence Fund-G- Rs 1ooo pm
    6>Hdfc Children Gift Fund-Investment- Rs 2000 pm

    Thanks in adv

  48. Hi Basu,

    My portfolio includes the below fund and I am investing Rs. 2000 each per month:

    Reliance small cap (G)
    ICICI Prudentail value discovery (G)
    Reliance Tax Saver (G)
    SBI Pharma Fund (G)
    HDFC Balance (G)

    Please suggest me if this portfolio is good for the long term capital gain or suggest me if I need to include/exclude any fund in my portfolio.

    Thanks in Advance,
    Vinod Singh

      1. Thanks for your suggestion Basu, please let me know the good large cap as you mentioned, I will drop one of the small and mid cap from my portfolio.

        since Pharma is the safest sector as per the past track history thats why I include in my portal folio.

        Thanks,
        Vinod

  49. Hello Sir

    I am Jijo new in mutual fund… Please advice me

    I have a Home loan 20 lacs for 20 years from HDFC bank and now i have increased my EMI and make it 29000 each month… and now i have to pay 8. 5 years, I am also investing 10000 rupees in 6 mutual funds

    Canara Robeco Emerging Equities (G) 2000 Rs ( Just started Dec 2014)

    DSP BlackRock Micro Cap Fund – Regular Plan (G) 2000 Rs ( Just started Dec 2014)

    Sundaram Select Midcap – Regular Plan (G) 1000 Rs ( Just started Dec 2014)

    SBI Magnum Midcap Fund (G) 2000 Rs ( Just started Dec 2014)

    Reliance Small Cap Fund (G) 1000 Rs ( Just started Dec 2014)

    ICICI Prudential Value Discovery Fund (G) 2000 Rs ( This is my 1st Mutual Fund and almost 23 months old started 2013 march)

    i have my saving 1. 5 lac should i invest or prepayment home loan ?

    Please kindly give your need full information above my Question…

    I have read a lot and Google it a lot but cant find suitable answer for my doubts

    I have a ICICI Prudential Value Discovery Fund (G) which i s running since March 2013 and till date 23 sip paid 46000 and amount is 72000 means ( 44000+ rest is profit ) if i withdraw around 22000 do i need to pay tax? or not

    please advice me

    thanks you

    1. Jijo-First concentrate on buying online term insurance, emergency fund, health insurance, accidental and critical illness insurance. Once all these are in place then first prioritize your goals like retirement and kids education and marriage. After these mandatory goal based investing, whatever left out must be passed towards home loan principal. If you do in this way then you have balanced way of approach towards your loan as well as towards your other major financial goals.

      1. Dear Sir
        Thanks for you reply… I do have LIC ( 12000 yearly ) and Also have Max NewYork health Insurance (30000 yearly )and POST office saving too (60000 Yearly )

  50. Hi Basavaraj,

    Your suggestions are really helpful.

    I need your suggestions on very priority.

    I am 36 years of age and I have investments on LIC Jeevan Anand 33000/- premium, Jeevan Saral 24000/- and Jeevan Chaya 24000/- and PPF 60,000/- Anum. And also investing 5000/- in MFs on HDFC Mid cap. Now I am planning to invest ICICI Pru Wealth Builder 60,000*5=300000.

    My aim is for good returns.

    Please guide me.

    Thanks in advance.

    Regards,
    Ramakrishna.

  51. Hi Basavraj,

    I have bought 2 policies in 2013

    1) LIC Jeevan Saathi(Premium – INR 26K Yearly)
    2) LIC Jeevan Tarang
    (Premium -INR 24K Yearly)
    I have started LIC eTerm Policy of SAs 1 Crore from Dec last year.

    I have already paid two premiums for above 2 endowment Policies as mentioned above. Now I want to discontinue the above two policies. I have two options with me now

    1) Pay the 3rd installments of the premium and make the Policies Paid Off.
    2) Not to pay the 3rd installment and Lapse the both Policies.

    Please guide me which option to choose. I want to invest the money in MF(My emergency fund, Mediclaim already Done and I meet 80C).

      1. Hi Basavaraj,

        Thanks for your reply. I didn’t get your point. What is the ‘exact amount’. Kindly clarify.
        Do you suggest I should pay 3rd year premium too so that the policy is not lapsed?

  52. Dear Sir,

    Thanks for your sharing, now I my income is 13k/month. Is there any possibilities of Invest small amount in Mutual funds for long time ? Please Guide me for a better income.

    1. Srinivasan-Before investing, do you have term insurance, health insurance, accidental insurance and emergency fund in place? Once all these basic things are at place then we discuss about investing.

  53. Dear sir
    your article is very usefulllike me people.sir, ilike to invest monthly rupees 50000 for five years time monthly for my daughters marriage & for my childrens higher studies. please guide me some of my relatives said invest in sip investments,but after reading your knowledgeable quates i determined to follow your guide lines.please advise me. i am working in africa.but iam planning to invest from this month.my e-mailid [email protected] name is vakkil satheesh kumar.

  54. Sir i want to invest my INR of 100000 for three years
    Actually i don’t no where to invest the money because i am new in the market i wish that my principle should be saved
    so can u please suggest me some mutual funds

  55. Hello Basavaraj,

    I am looking for a long term investment plan(15-25 Years), every month say 5 to 8K Monthy. Could you please suggest any good plans which can give good returns on the maturity and as well as help me in 80C.( Should I go for LIC traditional policies Or any equity based plan like HDFC pro growth or Axis long term equity)

    Also I am looking for a plan where I have a flexibility to pay monthly or quarterly and no committed amount kind of.

    Thanks
    Sunil

      1. Hi Basavaraj,

        Yes I do have HDFC term Plan HDFC Life Click 2 Protect Plus with 1 Crore of Sum assured and .05 % of SA monthly being paid for 10 years. But don’t have the medical coverage since it’s covered in my current organization with a sum of 6 Lakhs.

        Thanks Much

          1. Hello Basavaraj,

            Yes I agree with you. It’s always better to have one from outside. Also as I posted in my original post, Need your inputs on long term investment plan(15-25 Years), every month say 5 to 8K Monthy. Could you please suggest any good MF’s which can give good returns on the maturity and as well as help me in 80C.( I heard about ELSS equity based plan like HDFC pro growth , Axis long term equity).

            Thanks Much for your valuable inputs.

              1. Thank Sir, Just one opinion I have been told for Axis Bank long team equity fund but I don’t see either in 2014 or 15 list given by you. Any specific reason. Sorry again I don’t have much knowledge on this, just started with it. That’s why asking this question.

                Thanks Much for your valuable inputs.

                  1. Even if Axis long term equity fund (G) is newly launched, the asset size of the fund is two thousand crores (2020.07) to be precise..where as Canera robeco tax saver asset size is just 787 crores 🙂 . that shows the difference in investment portfolio. Also the ratings of CR tax saver fund have slightly declined when compared to Reliance tax saver and Axis long term equity fund.

  56. Dear Mr. Basavaraj,

    I am an NRI I want to invest 5.5 L now and there after every month 1.25 L for next 8-10 months, i.e total 18-20 L (5.5 Immediately and the rest in monthly form). After which I want to withdraw towards House construction. Can you pls advice suitable investment advice, I am ready to take risk of 50 % and I am flexible for duration i.e. It can be increased to 2 years or so.

    I thank you in advance for your guidance.

    Regards,
    Ajit

  57. sir,
    thank you so much for creating financial awareness for new investors.
    my monthly income is 60 k .
    my company offers me a medical insurance of 5lacs(family floater), accident insurance 30lacs, life insurance 40 lacs.
    i have an emergency fund of 3 times my monthly income. my ppf is 50k per annum .i recently took icici prudential wealth builder policy with a premium of 50 k per annum.
    Is this k or shall i take some other future planning measures
    suggest me some mutual funds which i can invest 2000 per month for 10 -15 yrs
    can i withdraw that amt in mutual funds when i require in b/w this 10 yrs span
    pls suggest me.

    1. Amar-Own your health insurance (even though your employer provides it), minimum sum assured insurance required for you is around Rs.1,00,00,000 (ideal insurance must be around 15-20 times of yearly income), increase your emergency fund to minimum 6-12 months of expenses, stay away from policies which combines insurance with investment and finally list of funds are already available above. Choose and invest.

      1. sir,
        thank u so much.
        which companies are offering the best health insurance policies.how much health insurance should i take for me and my wife.we both are healthy enough.my age is 30 and my wife is 26 yrs old.
        i think that 1 cr insurance is the term insurance which i should take.
        can i put that emergency fund in fd’s or some where else.
        pls guide me.

        1. Amar-How much health insurance you need depends on the city you life, what type of hospitals you want and many more things. So better you discuss about this with your family then buy it. I personally prefer online FDs. Because even in night too you can redeem and within second amount will be in your savings account. That too I split each month expenses into one FD.

  58. I have been earning for past 1.5 year and i want to start investing in mutual funds for long term. I plan to buy house in next 5-7 years. How should i start and which mutual funds should i invest in?

    Thanks
    Ankit

  59. Hi Basu,

    Your last suggestions were very much helpful. I need one more suggestion
    I would like to invest one time 50K in Mutual fund and would like to keep it for 3-5 years.
    can you please suggest
    1) top 3 mutual fund for one time investment
    2) top 3 mutual fund for one time investment for tax saving.

    Thank you
    Mahantesh

  60. Hi Basavaraj,
    Hope you are doing well. Again I will appreciate your good work 🙂

    I have started investing in MF in 2014 and my portfolio have 4 funds;
    ICICI Pru Focused Bluechip(G)
    UTI Opportunities(G)
    IDFC Premier Equity(G)
    HDFC Balanced Fund(G)
    I have plan to continue this for next 15 years. Are these 4 funds good enough for next 15 years?
    For 80C, presently I am having EPF, LIC and PPF(total 1.5 lakhs). As in one of your blogs, you have told about tax savings fund. Shall I include a tax savings fund in my portfolio by adjusting it with PPF? If yes, then please suggest the best fund for long term(more than 10 years).

      1. Hi Basavaraj,
        Term Plan of 15 x of my annual package done. My employer also gives another 3 x of annual package.
        Shall I plan for distributing 80C in some tax saving fund? Please suggest the best fund/s for longer time.

        Thanks in advance.

          1. Hi Basavaraj,
            My present tax slab is 30%.
            I am having a target of another 1-1.5 Crore apart from Term plan/EPF/LIC/PPF. I also started this year MF of 10K per month for next 15 yrs, but I am keeping this for Retirement and child higher education/marriage purpose.
            I have to buy a house in future.

            Please suggest.

            Regards
            Saikat

              1. Hi Basavaraj,
                There is no shortfall yet. I am having approx 45K in EFP, 52K in LIC and remaining in PPF and covering full 1.5 lakhs. I think too many debt options I have chosen.
                Even 1 of my 4 MF is HDFC Balanced Fund(G).
                So I wanted to remove something from PPF(as it gives ~8.7% with 15 yrs lock in) and place it in some tax savings fund where % of return is high and locking period is 3 years only. Also if 2014-15, tax slab increases, I don’t want to increase in LIC/PPF.

                Thanks
                Saikat

                1. Saikat-Why can’t you load off from worst product of your portfolio i.e. LIC? Instead buy term insurance and forget about life insurance part. Yes I agree that all in debt category. But without rectifying the current situation and starting new is not worth right?

                  1. Hi Basavaraj,
                    Yes, I will stop LIC investment soon(I will be completing 3 yrs). I already have Term insurance of 1.5 Cr.

                    Thanks
                    Saikat

  61. Hi Basavaraj,

    I want to invest in Rajivgandhi equity scheme. I have seen in website about this and we can invest in shares and in few mutual funds too. Long back I have opened demat account and few DLF shares were there currently I am not accessing that account. So, shall I access the same account for this scheme? And is it good idea to invest under this scheme? If it is good idea which mutual fund is good? Thank you.

  62. Hello,

    I have been investing around 30 K a month in SIPs over last 6-7 years through bajaj capital. But i am unable to manage them well. Here is a list of my current portfolio. My investment is long term – 15-20 yrs.

    Please advise as i am at a loss.

    Scheme Name
    CANARA ROBECO EMERGING EQUITIES – GROWTH
    DSP BLACKROCK TAX SAVER FUND – DIVIDEND
    FRANKLIN INDIA CORPORATE BOND OPPORTUNITIES FUND – DIVIDEND
    FRANKLIN INDIA TAXSHIELD – DIVIDEND
    HDFC CAPITAL PROTECTION ORIENTED FUND – SERIES II – 36M – MAY 14 – REGULAR – GROWTH
    HDFC LONG TERM ADVANTAGE FUND – DIVIDEND
    HDFC LONG TERM ADVANTAGE FUND – GROWTH
    HDFC TOP 200 – GROWTH
    ICICI PRUDENTIAL CAPITAL PROTECTION ORIENTED FUND VI – PLAN D – 1100 D – REGULAR – GROWTH
    ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – RETAIL – GROWTH
    ICICI PRUDENTIAL TOP 100 FUND – GROWTH
    L&T INDIA LARGE CAP FUND – GROWTH
    L&T TAX ADVANTAGE FUND – GROWTH
    RELIANCE DUAL ADVANTAGE FIXED TENURE FUND V – PLAN F – GROWTH
    RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH
    RELIANCE GOLD SAVINGS FUND – GROWTH
    RELIANCE TAX SAVER (ELSS) FUND – DIVIDEND

        1. Stuti-One large cap fund like ICICI Pru Focussed Bluechip Fund and another Reliance Equity Opp Fund enough to diversify. Have you checked how much overlap your investment be by investing in so many funds. Even though you feel that having so many funds will actually diversify your investment. But check where those funds are investing. If they are investing in same sectors or same companies then what is use of having so many funds? If at all you need tax saving fund then you can add a fund for tax saving purpose.

  63. Hello Sir,

    Thanks for your valuable comments on the financial planning front. I would like to get your kind advise on my financial planning as a newbee.

    Let me tell about myself.

    I am currently working aborad and would like to invest in India. Could you please suggest me various option available to do so.

    I am currently 28 and can take high risk with annual investment of 5L. My current holdings are as below which was started 2 months before.

    Reliance Equity Opportunities Growth -1500/month
    DSP BlackRock Micro Cap Fund – Regular Growth – 1500/month
    ICICI Prudential Focused Equity Fund Retail Growth – 2000/month
    ICICI Prudential Balance Growth – 2000/month
    Franklin India smaller companies – Fund Growth – 2000
    HDFC Top 200 Growth – 2000/month

    SIP in EqUity on monthly basis

    MARUTHI
    TECH MAHINDRA
    ASIAN PAINTS
    BEL
    SNOW MAN
    DCB UNION BANK

    could you please kindly advise any correction and valueable suggestion.
    Thanks.

  64. Hello Sir,

    I would like to invest in SIP for 12 to 15 years with Rs 10000 initially for my 2 kids education( and will increase gradually if needed) in the following funds.
    Icici Prudential focussed blue chip (Rs2500), Uti opportunities fund(Rs2500),HDFC midcap (Rs 2500) and HDFC balanced(2500). Could you please let me know if it is ok?. Many thanks.

  65. Hi,

    I have been investing in the following funds through SIP for last 4 years,
    HDFC Top 200 – 4k (SIP over, but still holding it)
    DSPBR Top 100 – 2k
    Mirae Asset Opportunities – 2k

    I would like to add a small/midcap fund and balanced or sector fund to my portfolio.

    Let me know your suggestion on small/midcap fund – Mirae Asset emerging blue chip or HDFC Midcap Opportunities
    Also, to go towards balanced or sector funds, which will be better.

    My investment horizon is for 5 to 10 years.

    Thanks
    Krithika

    1. Krithika-I don’t it is required. Because you already have HDFC and Mirae (large and mid cap). But try to come out of DSPBR. If at all you need a small and mid cap then go with HDFC Midcap Opp Fund. In that case churn your Mirae fund towards this new investment. So that finally you have one large and one small and mid cap fund. Try to avoid sector funds. Why you want to have a fund from each fund classifieds? Do you think it actually serve a better diversification? Have checked the overlapping if you do so?

  66. Hi Basu,

    I want to invest 6 k in mutual funds for 12-15 years. I’m planning to invest in the following funds:

    1. ICICI Pru Balanced (G) – Direct plan – 2000
    2. UTI Equity (G) – Direct plan – 2000
    3. SBI Magnum Midcap (G) – Direct plan – 2000

    Please let me know if my fund selection is right. Also not very sure of SBI Magnum Midcap fund. Could you suggest any other midcap fund.

    Thanks & Regards,
    Srinivasa

      1. I want to invest in largcap, midcap and balanced fund each in different fund houses. These funds seemed top ranked funds in their respective category for last few quarters in most of the websites. Aren’t these funds worth investing in?

        1. Srinivas-Have you checked the % of overlapping in your portfolio if you do by investing in large cap, mid cap and balanced fund? Even though you feel it diversified, but what if all three funds have same underlying sector or stocks? Currently market is at all time high. So all funds will show you the good positive return since few quarters. But it is always best to choose a fund which is consistent in long run like 5-10 years. Hope you got my answer.

          1. Okay. So which combination of three direct plan funds would you suggest which will provide proper diversification?

              1. How about investing as follows:
                1. UTI Equity (G) – Direct plan – 3000
                2. HDFC Mid-Cap Opportunities Fund – Direct Plan – 3000

                  1. Are you not comfortable with UTI as a fund house or that particular fund?
                    I’m not very sure if its right to invest in the same fund house.

                    So I’m planning to invest in following combination:
                    1. HDFC top 200 and UTI midcap fund
                    Or
                    2. HDFC top 200 and HDFC midcap opportunities

                    Please let me know which of the combination is right to invest.

  67. HI Basu,

    I want to invest 10,000 pm.in SIP for Mutual fund for 15-20 years for my childrens education and marriage. Could you please suggest me some good mutual funds.

    Thanks in advance.
    Sreedhar.

  68. Hi Basavaraj

    Thank you for nice article. Need your advice in mutual fund portfolio. I am investing lump sum amount in ELSS since 2011.

    1) Canara Robeco Equity Tax saver Fund (G)
    2) Fidelity Tax Advantage Fund (G)
    3) HDFC Tax Saver (G)
    4) ICICI Prudential Tax Advantage (G)

    Please guide
    1) I need to invest 25 K in ELSS in FY15. Sould I invest in same list mentioned here or thinking for Axis Long term Advantage (G) also
    2) Want to start four SIP 1000/- from Apr’15. Which funds would better for 15 years period
    i) IDFC Premier Equity Fund – Mid & Small Cap
    ii) Sundaram Select Mid Cap
    iii) HDFC Balanced Fund
    iv) HDFC Tax saver (G) – for tax saving

    Waiting for reply. Thank You
    Rishi
    Age (30)

      1. Hi

        Yes, I want diversification. Please suggest me right mutual funds as asked in 2nd part. I am also thinking to reduce so many tax saving funds. In previous year I just invested in few funds to fulfill one lac. limit.

    1. Hi Basu ji,
      Thanks for your great article.Hats off to you for creating financial awareness.I have a SIP investment aim of Rs 11000 per month.I am already investing HDFC Top 200(2000 pm),ICICI pru focused bluechip(2000 pm) & UTI Opportunities(2000 pm).I want to invest in 2 more midcap fund like HDFC Midcap opportunities(1500 pm) & other midcap fund(1500pm.your suggestion is needed).Besides this i also want to invest 2000 pm in a large cap fund.I think my investments are against your overlapping of fund portfolios concept.Can you please enlighten me about it and can you help me to make my rs11000 SIP plan ?
      I am 34 years old and i have a 3 years old daughter.
      Thanks in advance.

  69. Hi Basu….First of all..thanks for writing such informative posts on your blog on Investment.I have been investing Rs.11,500 via SIP’s, in the following funds for the past 5 years as a prospective money dump for my kid’s education.The break up is as follows :

    – HDFC Top 200 Fund ( Growth Option ) – Rs. 3000
    – DSP Blackrock Equity Fund ( Growth Option ) – Rs. 3000
    – DSP Blackrock Top 100 Equity Fund ( Growth Option ) – Rs.2000
    – Franklin India Blue Chip Fund ( Growth Option ) – Rs. 1500
    – L&T Equity Fund ( earlier was called “Fidelity Equity Fund” ) Growth Option – Rs.1000
    – Reliance Growth Fund ( Growth Option ) – Rs.1000

    My time period of these investments is another 15 years until my son completes his college education.

    Please advise if the choice of funds is appropriate ..if not..then please suggest which funds to remove and what new funds to add so that I will reap good benefits on my SIP investments in the long term.Thanks in advance.

    RA

      1. Hi Basu..Thanks for the insights..Please suggest..which Small Cap and Mid Cap fund should I invest in..as I’m confused to choose among the one’s available in market..

          1. Hi Basu,

            Thanks for your insights..I have chosen the following three funds as part of my MF Portfolio, and do off with all the others.

            HDFC Top 200 – Rs.5000 per month ( Growth option )
            UTI Opportunties – Rs. 5000 per month ( Growth option )
            ICICI Pru Value Discovery – 2000 per month ( Growth option )

            But since I already have accrued some amount over past years with SIP in my existing Mutual funds ,like DSPBR / Reliance / L&T / Franklin etc and as I do not need immediate money..I was thinking of keeping their existing MF units..without encashing them .. .Is this right decision..or do you suggest that I encash all the MF’s for which I will be deallocating from my current portfolio .Please suggest.

            Thanks
            RA

  70. I am a 53 yr. old retired Bank officer (VRS). I have received Rs.28 lakhs approx. as retirement benefits. I have no liabilities. Apart from enhancement in Mediclaim and fixed deposits, I would like to add to my MF (given below) portfolio for 5-7 yrs. period. Please advise.

    DSP Blackrock India TIGER Fund – regular plan – dividend
    Kotak Opportunities – growth
    Sundaram Select midcap regular plan growth
    Reliance natural resources fund growth plan – growth option

  71. i want to invest in mutual funds through some investors like hdfc bank or icici bank.
    is this correct way .which is the best among two? can u pls help me to invest correctly.

    1. Amar-NONE…instead if you want to go with any middlemen then opt for an adviser who have sound knowledge. Because the person who sell you mutual fund now may not be there in same bank when you visit once again after a year or so.

  72. Hello Sir,

    Can you look my portfolio and give your feedback. My time frame is for 10 year as for children education.

    ICICI Pru Focussed Bluechip Equity [G] 1000/– Large Cap Fund
    UTI Opportunties[G]- 2000/- – L&M Cap Fund
    IDFC Premier Equity[G]- 2000/- M&S Cap Fund
    HDFC Balanced Fund [G] – 1000 Balanced Equity Fund

    Some one suggest me these:

    UTI Opportunities Fund(G) – Equity – Diversified funds
    Canara Rob Eq Diver Fund-Reg(G) – Equity – Diversified funds
    HDFC Mid-Cap Opportunities Fund(G) – Equity – Mid & small-cap funds
    Tata Balanced Fund(G) – Balanced/Equity-oriented funds
    UTI Dynamic Bond Fund-Reg(G) – Debt – Income funds

    As market is going high. Is it right to invest in mutual fund?

      1. Thanks,

        I have a question. If I started SIP with 5000/- which consist of 5 funds and in future I want to increase 1000/- in each fund. Then what I have to do. First stop this SIP and again restart?

        Thanks for your knowledge sharing. 🙂

          1. Hello Sir,

            I’m investing in first bucket funds. If I have to invest for my second goal for retirement then what is prefer, I have again create a folio with consist of these fund or Is there any other choice of fund?
            Or I should increase the SIP amount.

            Thanks,

                1. Anshu-It is good if your view is not to 3 years. Invest in lump sum and wait for long term like 7+ years. Only hardship is, if fund not performing well within lock in period then you can’t move out.

                  1. Hello Sir,

                    Can you give me the feedback about my assert location. I already started SIP in these fund. Just want to verify for long term the assert allocation is good or not or any change needed.

                    ICICI Pru Focussed Bluechip Equity [G] 1000/– Large Cap Fund
                    UTI Opportunties[G]- 2000/- – L&M Cap Fund
                    Reliance Equity Opportunities Fund[G]- 2000/- M&S Cap Fund
                    HDFC Balanced Fund [G] – 1000 Balanced Equity Fund

                    These are OK right now market is up but worried for low market.

                    Thanks & Regards,
                    -Anshu

                    1. Hello Sir,

                      Then in which these fund I can pump more money which is good for 10 year.

                      A regular SIP is going on if I have some surplus money then which among these fund I can consider.

                      Thanks

                    2. Anshu-My intention of say so was that, a single fund is enough from each category. Having two large cap funds will not diversify your investment. So for additional investment also use the same funds.

  73. Dear sir
    I have started 4 mutual fund.I am investing Rs.1000 per month in each the following fund .
    1. icici focused blue chip fund for 20 years.

    2. icici discovery fund for 15 years .

    3. uti opportunity fund for 20 years.

    4. uti mid cap fund for 15 years.

    All are divident re-investment plan.
    Please aIdvice me if there has any mistake …
    m waiting for your advice.

    thanking you.

      1. actually I wanted to invest in growth fund.my friend cum advisor told me growth and reinvest ment fund are same in case of long term.I have doubt be cause I read lots of review in internate and every where experts are suggested the growth plan.now what ll I do?please suggest me.m new invester so I followed my frnd opinion

          1. sir.
            I will watch next 4 days.and thing I forgot to tel you.2 funds of uti already started bu the rest 2 funds of icici (icici focused blue chip and icici discovery)stil not started .there I have choice to select growth fund.what is your suggestion? plz reply.
            Thanks.

  74. Hello Basu,

    After following your informative Blog Posts, i have taken some decisions which i think are good for my future.
    I have surrendered my Jeevan Saral Policy after 6 Yrs. of paying Premiums. I have just taken HDFC Click 2Protect Plus Term Plan for 1 Crore and it is under process.
    I have also invested and setup monthly SIP’s for 2000 \- in each the following Mutual Funds based on your selection through FundsIndia:

    1) ICICI Pru Tax Plan [G] – For Tax Saving Purpose under 80C.
    2) ICICI Pru Focussed Bluechip Equity [G] – Large Cap Fund
    3) UTI Oppurtunities [G] – Large and Mid Cap Fund
    4) HDFC Balanced Fund [G] – Balanced Equity Fund

    This is for a Long Term Investment of 10+ Yrs. Only the Mid and Small Cap Fund is missing in the above list. Since i am a totally new Investor in Mutual Funds and i have read that Mid and Small Cap Funds are more risky, i did not go ahead and invest in it. Kindly advise if my above Portfolio is good enough and should i go ahead and invest in a Mid and Small Cap Fund ?

    Awaiting your response. Thank you.

    1. Hi Abhishek R,

      Can you please let me know how much profit/loss you got with surrender of your Jeevan Saral policy after 6 years?

      I am thinking to surrender my policy but thinking about returns..:)

      Thanks,
      Ram.

      1. Hi Ram,

        I had to incur a loss of 40000 /- but i accepted it as it was a better decision to surrender it considering the future long term goals. My Annual Premium was 36000 /-

  75. Sir,

    On account of my pay revision, I have a surplus fund of Rs.4000/- per month, which I would like to invest in a good mutual fund on SIP basis. Could you suggest a good mutual fund product. My horizon is till 7/2025. Awaiting your reply. Thanking you in advance.

    Regards,

    Gopal

  76. I am moderately versed with the mutual funds and I have a question to ask. I am sipping in equity mf with 20 year time frame. Now say at the end of time the market crashed severely and the value of my funds falls astronomically then what should one do?

  77. Dear Basavaraj,
    I am 25 years old and having income of 20k/month.
    I have started a SIP of rs 1000/- in Axis LT Equity fund under ELSS from last month.
    Now I am planning to invest 3000/- in 1 Diversified Equity fund & 1 bluechip fund for long term [>10 years]
    I have considered the following funds for monthly SIP.
    Franklin HIGH GROWTH Companies [need your inputs on this specifically].
    BIRLA Sun life India Opportunities,
    Quantum LT Equity.

    Please Also guide me on a good Bluechip fund
    I have selected the following, what is your take on these.
    SBI Bluechip
    ICICI Focused Bluechip
    Birla Sun life Equity

    Also guide me on Flex SIP vs normal SIP… which is better.

    Thanks

      1. Thanks for the reply. What is your take on Franklin high growth fund , as I am more inclined to it based on its returns and diversification.
        Aslo whether to invest via SIP in that fund or lumpsum for 6 months [5000/-].
        Please also suggest a good Diversified Equity fund other than the franklin one.

        Thanks

        1. Nishant-It is multi cap fund but just completed around 5+ years. So I personally stay from it. Even though it may be showing an exceptional returns all due to booming market. But check the performance when market falls.

  78. Dear Basu
    Am investing Rs 1000 in SIP on the below mentioned funds.

    Equity – Mid & small-cap funds
    BNP Paribas Mid Cap Fund(G)
    ICICI Pru Value Discovery Fund-Reg(G)

    Equity – Large-cap funds
    ICICI Pru Focused BlueChip Eq Fund-Reg(G)
    Franklin India Bluechip Fund-D

    Equity – Diversified funds
    Mirae Asset India Opportunities Fund-Reg(G)
    UTI Opportunities Fund(G)

    Small Cap
    Sundaram Select Midcap-G

    Would like to increase my SIP contribution. Could you plz suggest which would be best to go for. My target is long term only.

    Thanks
    RajaG

  79. Hello Basu,

    I want to allocate SIP of 8K per month, right now I have taken 2 MF

    1. HDFC Mid-Cap Opportunities Fund – Growth [ 2,000 rs pm ]
    2. ICICI Prudential Technology Fund – Growth [ 2,000 rs pm ]

    I would like to buy some more SIP (max 2-3) within my budget, I goggled and found these three

    1. Reliance Small CAP- G
    2. Franklin india smaller companies-G
    3. SBI blue chip fund – G

    Could you please guide.

    Secondly, let me know if Flexi SIP is better than SIP and if yes which MF should I choose for
    Flexi SIP
    ** I can handle High Risk for High return.

    Thanks,
    Suhail

  80. Hi Basu,

    I am planning to invest 10k every month and my planning to invest for 5 years. As I am new to Mutual funds could you suggest me the mutual funds to which i can invest and how much against each mutual fund.

    Regards,
    Balu.

      1. Thanks Basu for your quick reply. No issues I can extend the period to a max of 10 years. Actually I am planning to get some funds after 10 years for my business.If that is the case could you let me know the Mutual funds in which I can invest.

        Balu

          1. Hi Basu,

            Thanks for your information. I have short listed some funds for large, mid and small, balanced and diversified funds. I am planning to invest in 2 funds for each caterogy each month 2500 (monthly 20k for all). I need your advice to select 2 for larege cap and diversifed to short list among the given. Moreover let me know whether my investment option is correct to proceed.

            Large Cap
            UTI Opportunities Fund (G)
            ICICI Pru Focused Bluechip Eqty (G)
            Franklin India Bluechip (G)

            small and midcap
            ICICI Pru Value Discovery Fund (G)
            HDFC MidCap Opportunities (G)

            diversified
            Reliance Equity Opportunities Fund – Retail Plan (G)
            Franklin India Prima Plus (G)
            Quantum Long-Term Equity (G)
            ICICI Pru Dynamic Plan (G)

            Balanced
            HDFC Balanced Fund (G)
            ICICI Pru Balanced Fund (G)

            Regards,
            Balu.

            1. Balu-Not required to have too many funds. Three or two funds are enough. One large cap (Franklin India Bluechip), one small and mid cap (HDFC) and if you want some portion to be at debt then HDFC Balanced. Not more than these three funds.

              1. Dear Basu,

                Can I invest 3 000 equally in all three Franklin India Blue chip , HDFC Mid Cap Oppurtunity and hdfc balanced fund totally 9000 or i have to change the ratio. Could you kindly advice me

                Regards,
                Balu.

  81. Hi Basu,

    My age is 26 and earning 50k/month. Currently I am paying 25k for LIC JeevanAnand(2 years completed) and 5k for chits. Now I am planning to invest like below. Can I go ahead with below plan ?

    1)PPF (30k/year)
    2)Term Insurance (6000/year (It covers 50Lacs))
    3) ICICI Pru Balance Fund (G)(SIP-2k for 5 years)
    4) RD-(2k pm)

    Regards,
    Brahma.

  82. Sir, I am a big follower of your website. I need a serious help from you. I am working in a IT company and my yearly salary is 3.25 lacks. Now i need to give 5000 /pm to a education loan that i have taken during my Graduation. Sir, I want to go for further studies at abroad and for which i need at least 8 lacks in 3 years. I will be very thankful to you if you tell me where should I invest my earnings to get a high return in 3 years.
    Thank you in advance.

    1. Arnab-Do you know even if you planned to invest in any non risky instruments like RD (which we may assume provide you 8% return) then the monthly contribution should be Rs.19,735 to reach Rs.8 lakh goal within 3 years. So with kind of salary of Rs.3.25 lakh is is possible for you? Time period is too short, so better to invest in non risky products. Do remember that HIGH RETURN is always associated with HIGH RISK.

  83. Hi Basu,
    I would like to hear from you about my choice of funds (investing from 2013, for at least 20 years) :
    1. Franklin India Bluechip
    2. Quantum Long term Equity
    3. HDFC Midcap Opportunities
    4. PPFAS Long Term Value Fund.
    I would love to hear your analysis on my portfolio, specially what you think about prospects of PPFAS.
    Thanks,
    Kuntal.

        1. Kuntal-Nothing is intentional. Let me know what you mentioned in those comments. Also if those particular comments goes to spam then I might have deleted them in bulk. So if you feel those two comments are very much important then re-comment once again to reply to you back.

          1. Hi Basu,
            Nothing in particular. Just wanted to congratulate u on receiving 1009 comments in a single article. It really is a rare achievement. Maybe the reason is that u give an answer to all MF queries- most experts do not like to answer such queries.
            Keep up the good work.
            Thanks,
            Kuntal.

  84. Hello Basu,

    I would like to invest in Mutual Fund around Rs. 3000p/m.
    I have below questions
    1) Shall I invest full Rs.3000 in on one mutual fund?OR Three different Mutual Fund of monthly investment of Rs.1000
    2) Can you suggest Which Mutual Fund should I choose( though you have mentioned some MFs, but still Im looking from my perspecitve).

    Note that I already started an SIP in ICICI BlueChip(1000pm)

    Thank you
    Mahantesh

  85. Hi Sir,

    I had one confusion related to mutual fund, so I want to clarify with you.
    Suppose I started a SIP of 5000/month for year of 20 year. In between if I want to sell some fund in 6th year. Can I sell? or if I sell all of my all holding fund?

  86. Hi Basavaraj ,
    It is always great to read your blog and thanks for sharing it.

    My query is whether it is right time to start investing in HDFC Top 200 (G) SIP as seems falling in from past couple years. As it is past performance is very good. Currently it latest NAV is Rs 341.

    Please provide your input.

    Thanks,
    Shalabh

      1. Thanks for your reply.

        It’s a request to you please post some article on mf funds up & down with times and its various consequences.

  87. Hi,

    I invested 5 MFs earlier. I invested lum sum amount in these MFs before 2 months ago. Now I am planning to start SIP. My horizon time for SIP investment 5-7 years. I can invest 10000 per/Month.

    Amount currently I invested in MFs.

    1. ICICI pru value discovery fund
    2. ICICI pru top 100
    3. Reliance Equity Opp.
    4. Kotak Select Focus
    5. Franklin India Smaller Comp.

    Please can you suggest MFs which I already invested are good?

    Please can you suggest, can I start new SIP investment in my existing MFs. If yes please provide name in which I can start SIP. Or please provide new MFs for SIP for 5-7 year Horizon.

    1. Bhavin-First retain anyone mid and small cap. Why 2-3 of same category funds? Also having 2-3 funds are enough for investing. It is not necessary to select a new fund each time you start investing freshly.

      1. Hi,

        Thanks for quick reply. So you mean I need to continue in my existing mid cap or small cap fund for SIP investment for 5-7 year horizon right?
        Please can you suggest perticular fund in above list?

  88. HI Basu,

    Can you advice me on Reliance Regular Saving Fund – Equity – Dividend Plan or Any other equity plan as per your experience to invest for long term, say around 5-8 yrs?

    Earlier, I have never invested in MF so to start with, I am willing to invest Rs. 2500/- month.

    Regards,
    Mohit

  89. Hello Sir,

    I have following question

    1. Regarding ELSS funds, Is there an option for loan on the elss funds, if yes, how much loan we can avail, and also if there are any conditions. Reason for this question is i want to decide between elss or nsc for 80C claim, Advantage of NSC i believe is i can pledge for loan anytime, which might be helpful. Since i might need some money in 2-3 years timeframe.

    2. I could not understand your explanation on ELSS in this article. Will ELSS funds be removed from 80C.

  90. Dear Basavaraj,

    I have accumulated 14 lakhs in state bank 500 day E-STDRs. It earns around 1 lakh per annum but the bank deducts 10% TDS and I have to pay 20% on my own to the IT department – a gross waste! Can I earn the same interest AND escape from tax by putting this amount as lumpsum in 3 or 4 SIPs? For what period would I have to keep the money there? Would the principal be safe? Which SIPs would be best?

        1. Actually I intended it to be an emergency corpus fund. At the same time I wanted it to grow to the maximum extent possible.

  91. Can SIP ever produce a negative return? If not, would it be better to invest Rs. 10,000 per month in a SIP instead of in an RD or fixed deposit? Is the return taxable?

    1. Bhagwan-SIP itself is not any magic to get higher return or positive return. It is just a way of investment. Only better return producing way in equity is invest systematically and wait for long term.

  92. Hi Basu,

    It’s very informative artical. I want to start investing in mutual fund through SIP. My goal is to invest for long term(min 5 years) with starting amount of Rs. 3000 per month which I will increase gradually per year.
    I have shorlisted some of the below funds to invest. As of now I want to go with one fund, could you suggest from them or any other.

    1. Birla Sun Life Long Term Advantage Fund (G)
    2. Birla Sun Life Top 100 Fund (G)
    3. Birla Sun Life Equity Fund
    4. HDFC Top 200 Fund (G)
    5. ICICI Prudential Top 200 Fund
    6.

  93. Dear Basu,
    Somewhere you said that demat account is one of the costliest ways of investing in mutual fund. I have invested in a few SIPs using demat account of Motilal Oswal which I opened a year back as I thought I would do trading. But seeing the risks of trading, I went for SIP. What would be the overhead of the demat account? Should I close it and invest with the companies directly? Thanks.

      1. In mutual funds. To be specific,
        HDFC PRUDENCE FUND – GROWTH OPTION
        MAGNUM MIDCAP FUND – DIVIDEND REINVEST
        UTI TOP 100 FUND – GROOWTH OPENWTH PLAN
        TATA BALANCED FUND-GROWTH
        and
        HDFC BALANCED FUND – GROWTH OPTION

        each for Rs. 100 p.m.
        This is the first time I’m entering into mutual funds.
        Thanks

        1. Each for Rs. 1000, not 100. I will do term and medical insurance at the earliest. Emergency fund is ready. I am 52 due to retire at 65.

  94. I am investing 70 K in LIC policies ( taken 2 wrong policies of 42 K but i will surrender after 3-4 years after got bonus), 3000 in RD, EPF 3000 ( 3000 of employer extra). I have baby girl and want to invest for my baby education and marriage. I will surrender LIc as i mentioned above. Now planing for invest 3000 in SIP for at least 15-20 years. Can you please suggest me good option and also let me know where to invest rest amount which will be saved after surrender LIC policies after 3-4 years. I want to secure future needs. Please advise.

    1. Manish-First buy term insurance of around 15-20 times of your yearly income. Second create an emergency fund of at least 6 months household expenses. Third have your own health insurance, accidental insurance and critical illness insurance. Once they are at place then think or we discuss about investment.

    1. Ravi-I am not a big fan of ratings 🙂 Check the rating of HDFC Top 200 of last 1 year, it was down 1 year or so back. But currently it came back. Now with rating goes down means switching is viable?

    1. Hello, my intention with two more funds is to diversify my investments in different types of investments like large cap, mid cap, high risk, medium risk etc. also gold fund will reduce overall risk. Please correct me If I am wrong.

        1. Hi Basavraj, thanks for clarifying my doubts 🙂 I was thinking that I can diversify my folio by investing in multiple funds with different market cap (large,mid,large-mid etc.) I have invested in below funds & I can further invest 2000 month, can u plz give direction for the same.

          Rs 2000/month in each fund below
          DSP BlackRock Tax Saver Fund – Direct Plan – Growth
          ICICI Prudential Value Discovery Fund – Direct Plan – Growth
          ICICI Prudential Focused Bluechip Equity Fund – Direct Plan – Growth
          ICICI Prudential Regular Gold Savings Fund – Direct Plan – Growth

            1. Basavraj, I had selected Tax saver 2 years ago to achieve my 80c limits. About gold, I was thinking it will help reduce overall risk, but after discussions with you, now I am learning that gold fund may not be as effective as others 🙂 May be I will stop gold fund now. May you suggest another fund based on my current folio where I can invest Rs. 2000/month, please. Thanks again for very helpful guidance.

  95. sir ,
    i am doing government job and my salary is 25k p.m.
    i want to invest rs 5000 p.m through sip for short terms and i choose some funds
    1)hdfc balanced fund(G)
    2)hdfc short term opportunities fund (G)
    3)birla sun life short term fund (g)
    is this funds are good to invest ?
    or pls suggest me some good funds to invest for short term like 2 or 3 years
    thanks

  96. Hello!
    I am 26 year old. Currently my in hand salary is 70k per month.

    I am investing 1.5 lakh in PPF and 30k in LIC.

    I have never invested in share market through any medium.

    I want to start investing in MFs through the SIP route.

    I am looking to invest 1000 – 2000 INR per month in a MF. My risk appetite is low – moderate.

    Please suggest a few options.

    Thanks

      1. I have always been a very conservative investor. None of my family members have ever ventured into the share markets. Hence, my initial investments have been limited to the sure-shot-return options. I don’t might losing out on of a few % return points against guaranteed returns.

        The PPF contribution helps me in saving tax. Besides, the no tax on the interest is a big lure. My PPF was started by my father several years (>15) ago and now the yearly interest itself is quite handsome.

        As regards LIC, my policy is Jeevan Saral (Annual Premium 30k, Duration 30 years. This I have done more for security than for returns.

        Besides these 2, I do not invest anywhere else. I just want to test the waters and hence want to limit my monthly contribution to 1k-2k (towards MFs).

        1. Suddy-I respect your views. But do you know few real issues of one’s investment life? Like INFLATION or REAL RETURN? How you planning to beat inflation? Interest on PPF is good but check the record interest rate history…it may stumble you. Because day by day interest rate is decreasing. So if goes on so then how you can digest the already invested amount in earning less return as it is bit illiquid product. What security you will get from Jeevan Saral? Please elaborate more.

  97. Hi basavaraj sir,
    I went through your article. Very nice article and giving good inputs to the new investors. I have literally no knowledge about MF. But still investing in one MF. Can you pls describe the terms like large cap, middle small cap open end close end etc. So that people like me can have much more information about MF.
    I am getting 40k per month .my investments are as follows:-
    General PF 15K
    Local chit fund 4k
    HDFC mid cap opportunities fund direct plan growth option 1k.
    Kindly guide me for better investment in MF with medium risk.

  98. Presently I am investing in the following via SIP route

    Franklin India Bluechip Rs. 1000
    HDFC Midcap oppurtunities Rs. 1000
    UTI Oppurtunities Rs. 2000
    ICICI Focused Bluechip Rs. 2000

    I am planning to invest in two more funds at Rs. 2000 each. I have zeroed on the following

    HDFC Balanced
    IDFC Premier Equity
    SBI Emerging Businesses

    Which are the better ones in these three, or else, do you have any other good fund to offer. Please reply. I am planning to invest for the next 10 years minimum.

  99. Dear Basavaraj,

    I am investing in following funds monthly for long term capital appreciation
    HDFC Equity, Quantum LT Equity, DSPBR Top 100 & SBI Emerging businesses.

    I am not sure about DSPBR top 100, what is your take on my fund selection. I can start an sip of 2000 more. Any suggestion for this.

    Thanks

  100. I am planning for a long term investments with good returns.

    Want to go with SIP.

    Planning to invest Rs. 1,000 per month. Could you please advise best mutual funds to invest…

    UTI mutual funds, can I invest in this? Please advise

    Thank you

  101. Hi Basu,

    Can you plz advice me on Reliance Regular Saving Plan (Equity Option)?

    Is it a good fund to invest in for a period of 3 yrs?

    Regards,
    Mohit

  102. Dear Basu, any changes in your recommendations for future now that the market is at an all time high. Kindly recommend 10 Mrs for SIP for long term 10 yes. Regards

  103. Hello Sir,

    I would like to start investing for my child future. My son is 3 months old and i have opened one minor ppf account . As now PPF limit is increased to 1.5 lk i am planning to invest some amount in ppf to get tax advantage. However as my investment tenure is more than 15 years i am keen to put around 5k in mutual fund through SIP mode. Kindly suggest two best fund for that tenure.
    Kindly note for other goals like retirement : i am already investing in ICICI Pru Focussed, HDFC Mid Cap, and Franklin India PrimaPlus through SIP mode.

    Should i put that additional 5k in any of these fund or should i opt a new AMC fund like BSL Long Term Adv and Reliance Opportunity.

    Thanks
    Shekhar

  104. I am 24years old. Bank employee by profession. I can save upto 10000rs per month. I already started an rd for 5000rs for 10.15% yearly interest. now i want to invest remaining 5000rs in 5 ddifferent mutual funds
    1)hdfc mid cap opportunities fund
    2)icici pru value discovery fund
    3)hdfc balanced fund
    4)icici pru focused bluechip fund or idfc premier equity fund
    5)mirae asset india opprtunities fund.. or mirae asset india emerging bluechip fund

    any suggestions plzz

  105. Hi
    I am presently investing
    PPF 1.5 Lacs
    SIP SBI FMCG Fund 1000/
    SBI Emerging Buissness Fund 1000/
    Reliance small and midcap fund 1000/
    ICICI pru Value Discovery Fund 1000/
    Sbi Magnum Balance Fund 1000/
    LIC Jeevan Anand 90000/Year
    I want to continue SIP for 15 years least, whether funds choosen are good and want to know expected annual return in these funds.
    Thanks

    1. Pradeep-I am not fan of any particular sector fund. So SBI FMCG in my view not best investment. Switch SBI Emerging fund to Reliance Equity Opp Fund or HDFC Mid Cap Opp fund. One small and mid cap fund is enough. So Reliance Small and Midcap is not required. ICICI Pru can be continued and instead of SBI Balanced Fund switch to HDFC Balanced fund. Also major missing is no large cap. Why so much heavy investment in low yielding product called Jeevan Anand?? Also why you are so fond of PPF??

  106. Dear Mr. Basu,

    I am 38 and have a monthly income of around 3 lacs. the company provides for the medical cover of my spouse, kid and parents. I have not taken any insurance policy yet. Please advice what kind of insurance I should invest in? also looking for some child plan.
    Appreciate your response.

    Thanks
    Sameer

    1. Sameer-Buy term insurance to the tune of around 15-20 times of your yearly income along with that have your own health and accidental insurance. Don’t combine your insurance with investment. So no question of buying child plan.

  107. Hi Basavaraj,

    I went through your article, it’s an excellent article for rookies like me. I have few questions before starting investing in MFs.

    1) My Family monthly income is – 1 lakh.
    2) We have Fixed deposits of 2.5 lakhs.
    3) PPF deposits 1.5 lakhs.
    4) Currently we have a house loan of 16 lakhs ( Emi : 25k ).
    5) Life insurance policy : 10 lakhs ( yearly : 48k )
    6) Goal to invest in MFs -> Long Term Saving

    Since I am starting with the MFs I have decided to invest 2000 Per month in mutual funds.

    I have below questions:

    1) Is it right time for us to invest in Mfs now? If not then Why not now?
    2) If Yes for point 1 then which are the best MFs for us to invest.

    Thanks,
    MK

  108. Hi Basu,

    Can you please advise which is the best fund to invest with regards to Balanced or Top Equity fund (SIP)? I want to create fund for my child education (long Term)

    I am already investing on ELSS mutual fund ‘FTADD-L&T Tax Advantage Fund Direct Plan – Dividend’ plan’ since last 7 yrs with a monthly investment of Rs 2000/- through SIP.

    request your advice on the balanced or top equity fund to invest further.

    Regards,
    Rajib.

  109. Sir i am 24 yrs old and i started my SIP investments recently. I invest close to 20000 every month in MF, 3000 per month in ULIP and 7000 per month in Post office RD. Apart from these i also invest a total of 8000-10000 every year in PPF. How does my investments look?

    My investments in MF’s have started to get higher returns, i was wondering if i could withdraw the excess amount that has come as gains? will there be any additional charges incurred if i do so, i was thinking that if i get the money now the i can realise these gains.

    Funds invested in:

    Birla Sunlife pure value fund
    ICICI pru focused bluechip equity funds
    ICICI pru value discovery fund
    Mirae asset India opportunities fund
    Quantum LT equity fund
    SBI emerging business Fund
    Uti opportunities fund.

    waiting for your reply
    Thanks in advance.

    Regards,

    Deepak George

  110. My monthly income is 36000 and I am investing around 15000 in General Provident Fund and I want to invest 3000 in SIP, should I invest in SBI Pharma and Magnam. Kindly advise best SIP plan.

  111. Hi Sir,
    I am 27 year old working professional. I started my SIP 2 years ago. Below is my profile of MFs currently I’m into.

    Quantum Gold savings fund – Rs. 3000 monthly
    IDFC Premier equity Growth – Rs. 3000 monthly
    UTI Opportunities fund – Rs. 2000 monthly
    SBI Emerging Businesses fund – Rs. 1000 monthly

    I noticed that Quantum Gold savings fund is not yielding me any profit.

    Please suggest where my profile of funds need a change (exit or add a new ) and do comment. Thanks in advance.

      1. Sir some one suggest that gold will get good returns so took it in my basket. Current I stopped the SIP on it.

        I registered for Quantum LT fund from next month with monthly 2000.Pl suggest if that’s fine.

        Also pls suggest should I switch the amount in Quantum gold to long tterm equity or leave as is? THANKS

  112. Dear Basu,

    This is my portfolio through SIP for 7 to 10 years time span. Any suggestions please

    ICICI Pru Focused BlueChip Eq Fund-Reg(G)-2000

    Mirae Asset India Opportunities Fund-Reg(G)-2000

    HDFC Mid-Cap Opportunities Fund(G)-2000

    Religare Invesco Mid N Small Cap Fund(G)-2000

    HDFC Balanced Fund(G)-2000

    Regards,
    Sri ram

  113. Hello Basavraj,
    Next year I am planning for a home loan. Only this year for tax saving purpose I want to invest around 1L in ELSS. How many funds I should chose for investing around 14K per month? I want to continue 2 funds on long term for retirement and child education. Please suggest few good funds.

  114. sir,
    i am 35 yrs old totally new to mutual fund i would love to invest 10,000 pm for 10 to 15 years on SIP can u pls suggest and advice me on what mutual funds to invest.

      1. Dear basu sir,

        Here is what i have invested as of now

        1.national pension scheme-monthly 4000 term till my retirement
        2. IDBI federal incomesurance guaranteed money back plan -yearly 100000-10 yrs
        3.birla sunlife incurance dream life plan.-4000 pm -policy term whole life-pay term 5 yrs
        4.birla sunlife classic child plan -36000 per annum
        5.f.D -5 lakhs
        6.opting to go for medical floater plan-ICICI Lombard Complete Health Insurance Policy in a month or two.
        7.emergency fund-4 lakhs

        Sir ,this are my investment kindly advice me if i should go for MF if so pls give me some input regarding which MF fund to choose.I would like to invest in SIP for 10 to 15 yrs .

        With regards

        sam

        1. Samuel-First clear your dust bin (Sorry to say these words, but sad to know that you have all dummy products invested). Please take is serious suggestion. Think seriously about what you are investing. I feel none of them are worth to invest. Then we discuss further. I promise you that I will guide you in making you right. But think sitting for a while, whether the current investments are your decisions or your agents? Whether they add any value to your financial life or not?

  115. Dear Basu ,

    I am folowing your Blog for Long time.

    Can you provide your feedback for following Mutual Funds, with Monthly SIP which i have planned :-

    ICICI PRUDENTIAL DISCOVERY FUND—2.5K

    ICICI PRUDENTIAL TOP 100 FUND—3K

    UTI OPPORTUNITIES FUND—-2K

    hdfc balanced fund growth—2.5K

    Thanks for your support.

  116. Dear Mr.Basavaraj,

    I have been following your blog for quite a long time now and it is for the first time that I’m writing here. First of all a big thank you for educating all of us of the importance of sound financial planning.

    Currently I’m planning to invest in a large cap fund through sip for a period of 10+ years. I have shortlisted ICICI prudential focused bluechip equity and ICICI top 100 funds both on a growth option. I am in a dilemma as to which fund to choose between the two. As I can see you have suggested the former fund in this article. I was following these funds for the last few months and top 100 seems to be performing better. The expense ratio is on the higher side for the top 100 and should that be a concern in the final returns or shall I go ahead with it?

    Best Regards
    Jithesh

  117. Dear Sir,

    I am 26 yrs. old and I started my career last 1.5 yrs. I want to invest around 10-15 thousand per month. I have some knowledge of MF, PPF, Share etc. I which area you are advising me to go. Kindly assist.

    Regards,
    Sajal.

  118. Hello Sir,
    From last 3 years I am investing in below schems:-
    1)PPF(maximum limit yearly)
    2)Postal life insurance(25000 yearly)
    3)Fixed Deposits
    From last month I have started below SIPs:-
    1)ICICI Focussed Bluechip[through broker—regular Rs 2000/monthly)
    2)IDFC Premier Equity Fund(Through broker—-regular Rs 2000/monthly)
    3)UTI focussed 1100 days closed Equity—-rs 15000 for 3 months(through broker)

    And yesterday only invested Rs 10000 LUMPSUM in IDFC Premier Equity Fund
    NOW MY QUERIES ARE:–
    1)are above investment in right directions or do I need to change something
    2)I wanted to invest further in SIP for long time 5-10 years kindly inform what other SIPs r better and can do well in future
    Thanks

    N Singh

    1. Singh-Each product is good and bad in it’s usage in your financial life. So without knowing much about financial life how can I say current investments are good or bad. Because if you say postal life insurance investment is for long term goal and equity investment is for short term goal (considering current market boom) then it is not right to say upfront from my end considering product only to bad or good.

  119. Hello,

    I have been investing in Mutual funds since 2008 and so far I am happy with my portfolio which has given me returns of more than 15% over a period fo 5 Years. How ever, to build more corplus I am seeking your advise which I can follow:

    Currently My investment is roughly as below:

    Post office scheme: 4Lacs

    Bank Fixed Deposits: 3 Lacs

    Company Fixed Deposits: 2 Lacs

    PPF:2 Lacs

    Shares: 3 Lacs

    Mutual Funds: 5 Lacs

    Insurance: 10 Lacs

    My nature of living is allowing me to save about 5000/- per month (addition to above savings) and would like to divert this extra peny to high return high risk Mutual funds. I am regularly visiting many sites during surfing to gain knowledge and understanding but so far haven;t got any idle advise in fact it all made me confused.

    Requesting you to help me with proper guidance which will allow me to take quick decision.

    Thank You,

  120. Dear Basu Sir,
    I am 38-year-old male with annual income Rs.6lakh. I found your blogs from Google search “Best investment Options”. Sir I have five insurance policies as follows. Before reading your blogs, I was under the impression that LIC is an investment for children education etc as the agent convinces us. However, I was wrong. I have taken all these policies on advice of my friend to save income tax.
    Sl Name of the policy & Duration S.A Premium paid Premium left Annual premium
    1. ICICI pru save & protect – 20 Y 2 Lkh 10 10 9755
    2. LIC Bima Gold -16 Y 1.4 Lakh 9 7 7150
    3. LIC Jeevan Komal- 18 Y 2 Lakh 7 11 14848
    4. LIC Jeevan Komal- 18 Y 2 Lakh 6 12 14848
    5. LIC Jeevan Chhaya-20 Y 4 Lakh 3 17 22007

    I would like to surrender these policies so that I can invest the amount in good return instruments. Here I am little confused whether I continue these policies with mutual fund or surrender these policies or make them paid up. Please advise me whether I surrender these policies or not? Alternatively, paid up like 3-year-old Jeevan chhaya I will get only 30 % of 2nd and 3rd premium. In case of Jeevan Komal I will get 90 % of the premium paid except first premium before commencement of risk since my child not attained 7 year. Following surrender value I get as per the policy bond
    Jeeva Chhaya –(3y) (22007X3=66021-22007-70%=13204)
    Jeevan Komal (7y)-14848 X7=103936-10%-14848=80179)
    Jeevan Komal(6y)-(14848 X6=89088-10%-14848=66816)
    Since ICICI prudential save & protect and Bima Gold are 10 and 9 years old I can consider them to continue till maturity
    I have taken 1crore Term Policy from HDFC click to protect this year after reading your blogs. I wanted to invest in MFs by way of SIP. I have three children 7, 4,2years respectively. I selected the following funds to invest a total of Rs.10000/-as SIP for their higher education and marriage. This is after 11 -20 years
    1. Franklin India Blue Chip (G)-Rs.3000 -18 years
    2. UTI Opportunities Fund (G)-Rs2000-10 years
    3. HDFC midcap opportunities fund (G)-Rs.3000-15years
    4. HDFC balanced Fund- (G)Rs.200-10 years
    I would like to start a PPF account 5000/-PM from next month to save tax and for the retirement. I would like to increase all the above investments by 10% every year.
    I am new to mutual fund I get an idea from your blogs. Is my portfolio selection is right or need any correction?
    My main concern is over the surrender/paid up/continue the existing traditional insurance policies please guide me sir.

    1. Jai-You have lot of confusing ideas. First try to understand that where you are going wrong. My suggestion is to discontinue Jeevan Chhaya and let me know the rest Komal Jeevan left out period to decide. At the same time you did good by buying term plan. You also need to create emergency fund for at least of 6 months household expenses. When you are already using LIC policies then why to again look for PPF (debt category)? How much is your shortfall after paying EPF, LIC policies, ICICI policy and term insurance?

      1. Dear sir,
        Thanks for your valuable and quick reponse
        Discontinue jeevan Chhaya means paid up am I right ?
        I have the 6 months emergency fund as you said

        Out of the two jeevan Komal policies one is 6 premium paid and 12 left second one is 7 premiums paid and 11 left. But the worst thing is that premium paying term is 18 years and I get GA+LA if any+FAB when the child is 26 years after ie.8 years after premium paying term. Before that I will get only money back of 20%+20%+30%+30% in interval of two years from 18th year which will not serve the education purpose of the child considering inflation rates. Still I have 11 years to invest the premium amount in MFs to generate a good amount. please correct if i am wrong

        Idont have a EPF account from employer thats why I opted for PPF. I get 8.75% interest+tax benefit in long run.
        My 80C break up is as follows
        Children tuition fee-52000
        Term paln-18000
        Insurance policies(all)-70000 (2xJ.Komal=30000+J.chhaya-22000+ LIC Bima Gold-8000+ICICI-10000)

        If I continue all the policies the shortfall is 10K only. If discontinue j.chhaya shortage is 32000.
        Sir please also suggest me the portfolio I selected for MF investment from next month is correct or need any modification(total-10000/PM)

        1.Franklin India Blue Chip (G)-Rs.3000 -18 years
        2. UTI Opportunities Fund (G)-Rs2000-10 years
        3. HDFC midcap opportunities fund (G)-Rs.3000-15years
        4. HDFC balanced Fund- (G)Rs.2000-10 years

        Thanks.

        1. Jainu-Yes you are right about the komal Jeevan Policies. I advised about paid of Chayya only. Regarding Komal Jeevan policies, you need to work out like as below.
          1) Ask for surrender value of Komal Jeevan.
          2) Then calculate whether if you invest that surrender value along with future premium in any product which gives you around 8-9% return then whether you can come of that loss from surrender and along with that more return from continuing Komal Jeevan or not.
          Based on this judgement you need to go ahead. For tax saving, you can use PPF and ELSS (don’t be in belief that liquidate it once lock in over).
          It is good portfolio selection of funds. But currently UTI showing in large cap. So go either with Franklin or UTI instead of both funds.

  121. Hello sir,
    I am new to investing. I have some theoretical knowledge of how things are in financial sphere but have zero experience. Recently I have started sip in mf with a time horizon of ~15 years. I know time in market is important than timing the market. However is it prudent idea to sip now as the market is very high. The units that I am buying now will only increase the average cost. alternately if I invest in RD now and wait for the market to fall.Then start doing sip with the accumulated money. Is it a good idea?

    1. Mani-May I know when and what is the level you feel as market down? If today NIFTY touches 6000 then you still be in confusion that it will touch another low so let us wait. So in that you have every chance of missing a bus. Instead if you are long term investor but you will find so many such bull and bear runs. Don’t worry and continue your SIPs.

  122. Hi Basu ,

    I have been reading this blog for some time and it is very helpful for plan my finance.
    I need few advice which will help me to take a decision.

    1. I am 24 years old -married – family year income of 8 lpa. I started LIC jeevan anand last year for SA= 5,00,000 and term is 25 yrs but after reading many finance related article , I came to know about online term insurance and going to start one for 1 crore and 35 years as term. Also i am thinking of surrender LIC policy and invest this in Mutual funds. Pls clarify whether this is a right decision.

    2. I am thinking of saving 20k in mutual fund for my sister marriage 10 lakhs (7 years ) child education and marriage – 1 crore (25 years) and my retirement 1 crore ( 35 years). Please help me in diversifying the folio. Can i park all in equity or few percent in debt and balanced ?Pls help me here.

    Thanks
    Anand

    1. Sir, I am investing in HFC mid cap opportunities, icici pru value discovery and HDFC equity funds @ rs 2000 in each fund in SIP mode. My plan is to invest for more than 10+ years. Pl offer your expert opinion. Sasi

  123. Hi Basavaraj,

    I want to know about some investment plans for savings.I am planing to invest about 10k per month.Which mutual fund is good to start in present days.I want to know about some plan of MF & LIC.

  124. Hello Basu,

    I wanted to open Mutual fund account with HDFC(for direct plan) and checked at one of the nearest branch, i am said i will have to open the Savings account to do the transaction as HDFC bank facilitates to only their account holders with their AMC, the minimum balance to be maintained 10K to keep account active.

    http://www.hdfcbank.com/personal/products/investments/investment-products/mutual-funds

    is this the only way to enter in to mutual fund to buy the direct plan?, if i have to consider ICICI direct plan then i will have to follow the similar way?

    i checked CAMS, looks like we need to have a folio with at-least one of the AMC to open an account with them and then do further transaction.

    kindly advise

    1. Nagaraj-They are completely misguiding you. Because for investing any AMC it is not mandatory to have savings account of same Bank like ICICI to ICICI Bank, HDFC to HDFC Bank, SBI to SBI Bank or like that. In my view they are indirectly forcing you to open demat account, which is one of the costliest option of investing in mutual funds. Whether you visited to HDFC AMC or HDFC Bank?? Please go to mutual fund companies than banks.

      1. Basu,

        Thanks for your response, i visited HDFC Bank, after reading your response, i checked further on the HDFC mutual fund website and i got the address of “HDFC Mutual Fund Investor Services Centres (ISCs) and official Points of Acceptance (POA)” in every state, there are few Centeres in Bangalore. I will visit them and keep you posted.
        http://www.hdfcfund.com/ContactUs/LocateUs.aspx?ReportID=4DFE03E1-B11C-4C5F-86DC-A18EC154C65A

        Thanks again for the guidance..

  125. For investing in Axis Long term equity fund(G), which option is better- SIP of 1500 per month or a 50000 one time investment.

      1. Financially I can go for both options and I will be taking out the money after 3 years. I need to know if the market timing is right to go for lumpsum investment or should I go for SIP for averaging.

  126. I am new to the mutual fund and have question regarding Mutual fund.

    1. Mutual funds are interest based investment?

    2. If am investing in the mutual funds, is any mutual fund company or any stocks in that funds providing / adding any interest to that fund to raise the investment value. Please let me know with details?

    Thank you !

    Mohamed Rafi

      1. Hi Basu,

        I am not clear still. “price appreciation based. Exactly like your real estate investment”. Could you give more details on this it would be appreciated.

        Why am I asking this, because I am a Muslim and we will not invest in the interest based investment. For that only I am clear my queries.

        Waiting for you detailed answer !

        Thanks,
        Rafi

        1. Mohammed-Suppose currently you are investing Rs.100 into mutual fund and current one unit value is Rs.10. Now after 5 years if you want to withdraw then let us say unit price grown from Rs.10 to Rs.12 then you will get Rs.120. So price appreciation of Rs.20. At the same time if unit price (NAV) came down to Rs.8 then you will receive Rs.80.

        2. It will be very difficult for you if you want to avoid interest based things. From your comments it seems your idea about mf is unclear.Let me discuss very simply.
          1.In mutual fund, fund manager/ AMC takes your money and invest in various instrument like stocks,govt bond, corporate bond etc. Depending upon where they invest, mf can be broadly divided in two part: equity mf and debt fund.
          2.So debt funds is straight away big no for you, because they invest in various deposits which offers interest.
          3. So you have to find pure equity fund, which invests in stocks/share which is not interest base.
          4. But even all equity fund will not be suitable for you. Because if a equity fund invests in banking stocks it becomes a NO for you. Beacause banking business is haram. and investing in that fund means you are investing in a prohibited instrument.
          5. So ultimately you have to find
          a.Pure equity fund
          b. Check its portfolio and decide whether it has invested in any prohibited stock or not.
          c. if you find any suitable fund, then also you have to monitor it regularly, because a fund’s portfolio changes with time.
          d. All these means it is almost impossible for you to invest in mf in current scenario. You have to wait for arrival of islamic fund in india.
          5. My suggestion is go for individual stocks.

                1. if there is a need there will be way. I have several muslim friends who are learning about stock investment after realising that the traditional mf or bank based savings scheme are not for them.

                    1. I believe each q/a adds value to a blog. A blog with its writing and comments becomes a source of knowledge. It may not guide a particular person. I have learned a lot from reading comments and q/a in blogs. thank you sir

          1. Thanks for the details, Mani & Basu.

            Mani, in this chat you have mentioned that “equity fund invests in banking stocks which is not suitable for you”. My question is, why the equity fund is not suitable for me.? Because, the SIP amount is investing in banking stocks and in equity instrument not investing in the interest based instrument and also not providing any interest to that fund (as per your statement). Hence, I think it is better to invest in Indian mutual funds to grow money.

            Further, I am having less knowledge about stock investment and I don’t know which stock give high return in long marathon.

  127. I had a doubt regarding switching of fund units. Kindly help me understand. Suppose I hold 500 units in fund A with NAV 25 and I wish to switch all units to fund B with NAV 200. How is the conversion done as fund A is at lower NAV than fund B? And will I be in loss or profit?

  128. Hi Basu,

    I had a doubt regarding switching of fund units. Kindly help me understand.
    Suppose I hold 500 units in fund A with NAV 25 and I wish to switch all units to fund B with NAV 200. How is the conversion done as fund A is at lower NAV than fund B? And will I be in loss or profit?

    1. PK-It will not be loss. Because suppose you have Rs.10,000 which you withdrawn from A fund and invest the same in Fund B then only number of units will come down. But the value of investment will be same. Confused? Take an example, suppose in Fund A NAV at Rs.25 and units you are holding is 100. So once you withdraw the amount from Fund A then you will get Rs.2,500 (Rs.25*100). Again you are investing the same Rs.2,500 in the Fund B. They will divide this Rs.2,500 by NAV which is Rs.200. So your units in Fund B will be 12.5 (Rs.2,500/200). So the end result of investment is same. But only holding units count vary.

  129. Dear Sir,
    I am a government employee, my monthly income around Rs 30000/- pm. I have been investing in
    sbimf magnum tax gain scheme- growth Rs 2500/- pm
    sbimf magnum sector fund contra growth Rs 1500/- pm
    sbimf magnum sector funds umbrella emerging businesses fund growth Rs 1000/ pm
    for last 44 months.
    Should I discontinue any of those?
    I want to invest in other mutual funds. However, I don’t want to start SIP.
    Please guide me, what should I do and suggest me some good mutual funds to invest for long time (not SIP).
    Thanks,
    Indrani

      1. Dear Sir, Thanks for your reply. I invested in those sbimf in 2010. Now I want to continue SIP with some good mutual funds for long term, around Rs 6000- 7000/- per month. But now a good amount of cash is in my hand and I want to invest in mutual fund for one time. That’s why I requested you to suggest some good mutual funds for investing good amount of money right now.
        Thanks
        Indrani

          1. Dear Sir, thanks for your reply. I had a money back policy with sbilife, I paid three premium and discontinue with it. Currently I do not have any life insurance and I am thinking about 60-70 lac term insurance. I am a Railway employee and now going to join Indian overseas bank as a po. So, I am fully covered by my employer.
            I have investment in mutual fund, about Rs 220000/-.
            PPF Rs 100000/-
            Short term and Long term FD Rs 500000/-
            And some idle money in SB A/c
            My goals: 1. I want a financially secured life.
            2. want to purchase a piece of land and build a house.
            3. Want to start my own business.
            So, willing to invest money in high return yielding funds to grow my money faster.
            Time frame for investment: 12-15 years or more.
            Thanks.
            Indrani

            1. Indrani-I appreciate your sharing. But ideal insurance cover should be around 15-20 times of your yearly income. I found that your investments are spread across without any specific goal attached to it. Also your financial goals seems to be dreams to me rather than specific. So please understand what you want to be and when. Based on that you need to choose products. Ideal emergency fund also to be created which is around 6-12 months household expenses.

  130. hello Mr.Basu, I am having 4 mutual funds since last 3 yrs and since last 1 yr I am not investing in them. I have HDFC TOP 200 G,reliance energy growth, Sundaram mutual funfd growth, IDFC growth,. Now I want to restart again in MF. Only thing I wanted to know that what should I do,should I invest in one of those funds or any new fund. As my fund adviser doesn’t suggest me much about it and he simply follows about my demand of fund.I want to start in small amount of 5000/month.Pls help me and suggest .

  131. Hello sir,

    I am sriram , my take home salary is 45k. i already have LIC policy & health insurance. Now i am planning to invest in MF around 20k per month for long term period around 10-15 years. please suggest me any five best funds to invest.

    Thanks & Regards,
    Sri Ram

  132. Hello Basavraj,

    thanks for the blog, this will educate some of the naive users like me. i am planning invest 1o K per month, after doing bit of check i narrowed down to the below,my plan is for long term 10 -15 y

    1. HDFC Top 200 Fund : Open Ended Growth Scheme – 4000 : chose this checking the past 10Y average returns and fund manager reputation.
    2. HDFC MidCap Opportunities (G) –3000
    3. ICICI Pru Value Discovery Fund (G) -3 000

    I intend to do direct with fund house, also you suggested go through CAMS/Karvy – mention Direct should be same too. Kindly advise..

  133. Hi Basu,

    Is it a good idea to book profits once the annualized returns is 25 or 30 % and move to a safer options like FD, though investment is for 10 to 15 years. Or keep the profits too invested till 10 years.

    Please advise

    1. Priya-Go out of equity only when your goal is about to come. But never look at current uptrend or downtrend. Because your eyes are not at NOW but at future date. I know few advisers may suggest you this technique as they get one more commission by your entry into funds 🙂

  134. Hi Basu,

    I have the below MF and have been investing in SIP for 3 years now.

    HDFC top 200
    L & T Equity fund
    IDFC Premire Equity
    ICICI Value Discovery fund
    DSP Small & Mid cap fund

    Now, i want to redeem L&T and DSP and have Large cap SIP. Can you please review my existing SIP and also suggest me a Large cap MF ?

    thx in advance.

  135. Hi Basu,

    Your providing awareness in financial planning as an CFP appreciated for that I need your suggestion as possible as possible I Started Investing in MFs and my portfolio consists 6 funds of Birla Sunlife top100
    ICICI pru focused bluechip,
    HDFCmidcap opportunities,
    Reliance Equity opportunities fund,
    ICICI pru value discovery fund and
    Mirae Asset INdia opportunities fund 2 large cap 2 multicap and 2 small and midcap My time horizon is 5+ years Is my portfolio balanced and In case In near future after 2 Years if i need money desperetly among these funds which fund i can go for redeem any suitable suggestions for my portfolio??

      1. Im doing Additional purchase on these funds every month along with SIP is there any effect while redeeming from these additional purchase units every month..Actually how it takes the time frame when i had additioanal corpus ill go for additional purchase suppose if i would like to reddem after 2 yrs what date it will consider my additional purchase date or fund initiated date pls clarify sir

  136. dear basu

    i have a 1 year old baby girl. i am looking for an investment plan for her future. i plan to invest around Rs.5000 p.m till say next 10 to 15 years. can you suggest me which is the best investment plan. i am looking for growth of above 10 %. is MF the only plan available ? pls suggest ?

    regards
    shalil k

      1. dear basu.. below are my current plans

        1. term insurance done 1 with LIC and 1 with HDFC online .. total 1.2 crore

        2. couple of more LIC insurance of sum assured of say 20 lacs like money back and endowment policy. ( i am seriously looking whether to discontinue this and use the yearly amount in some proper investment schemes which does not have dependancy on insurance policies. with my research i have found in LIC insurance policies that the returns is just 4 to 5 % with insurance, whereas Term insurance plus a separate invsetment schemes (yielding more than 10 %) is the most ideal. i am thinking of choosing an online LIC term insurance and closing my existing 3 LIC Insurance policies and re-investing these funds in a better way .. Any suggestions here.. ??

        3. i have got medical insurance for my family covered via my company. plus i am thinking of buying medical insurance of Rs.3 lac each this month end for my elderly parents (for my mother who is diabetic a plan from apollo munich energy diabetec and for my father apolo optima senior). the yearly installment is coming to around Rs.40,000 for both of them.

        4. i have got some 4 lacs in my saving account which i am thinking of keeping them as emergency fund by investing in Ultra Short Term Debt Funds with this cash in hand. is this OK or you suggest somethign better ?

  137. dear sir,

    I am sahil I really appreciate the way your suggest the people for investment. I am 33 year old married I have some amount 1 lac which I want to invest in one time ( not term investment) for long term 10-15 year. I am really very new and know nothing about the various investment options. I have 2 life insurance policies (icici prulife life time gold and hdfc classic sl assurance) I have my health insurance provided by my employer.
    I will greatly thankful to you if you will suggest me a suitable investment option for me with good expected return.

    thanks and regards

    1. Sahil-First cover your life with proper life insurance (ideal insurance cover should be around 15-20 times of your yearly income). Second thing do you have emergency fund (ideal fund should be around 6 months household expenses) in place??

      1. dear sir,

        thanks to reply
        I have 10 lac as emergency fund invested in FD. I have 1nother 1 lac saving which I want t invest for long term 15 year as I do not have regular monthly income that is why I dont want sip please sir suggest me the suitable long term investment with this amount for the higher education of my son (3months)

        thanks a lot

  138. Dear Basavaraj,

    I want to invest in following mutual funds for a period of 10-15 years.

    1) ICICI Pru Focussed Bluechip Equity Fund – Rs 6000
    2) Reliance Equity Opportunity fund – Rs 6000
    3) ICICI Pru value Discovery fund – Rs 6000
    4) HDFC Balanced fund – Rs 6000
    5) Franklin India Income opportunity fund – Rs 6000

    Kindly suggest shall I invest in these funds.

    Thanks & Regards,

    1. Rajeev-Why two small and mid cap funds (Reliance and ICICI Discovery)? Also if your time horizon is more than 10 years then why to invest in income and balanced funds? Do these funds selected to invest some % into debt category? If so then you don’t have any other investment in debt category currently like PPF, Bank FDs or RDs?

  139. Dear Basavaraj,

    My name is raj, I am planning to investment below mutual funds (Tax saving )every month 5000 for 5 years. What is your suggestion

    Axis Long Term Equity Fund —— Investment Amount: 5000 /PM

    Canara Robeco Equity Tax Saver Fund – Regular Plan —— Investment Amount: 5000/PM

    Franklin India Taxshield Fund —— Investment Amount: 5000 /PM

    ICICI Prudential Tax Plan – Regular Plan —— Investment Amount: 5000/PM

      1. Thanks for replying to my request. Kindly advise any mutual funds which include tax saving also. i am planning to invest 5 years and will wait for another 5 years (Total 10 years from investment)

        Kindly provide your contact number.

  140. Kindly review the following plan and suggest for long term plan (15 years & above)

    ICICI Prudential Focused Bluechip Equity (Growth) : 7000
    UTI Equity Fund (growth) : 5000
    HDFC Mid-Cap Opportunities Fund (growth) : 4500
    ICICI Prudential Value Discovery Fund (growth) – : 4000
    Mirae Asset India Opportunities Fund : 3000

    please advise on this.

    regards

  141. Hii Basu,

    I had invested Rs. 25000 in HDFC LONG TERM ADVANTAGE FUND-DIVIDEND and Rs. 25000 in ICICI PRUDENTIAL TAXPLAN – DIVIDEND in Feb 2011 (Both ELSS). I am getting 13.25% and 15.25% annulised return as on today.

    Shall I withdraw this amount and reinvest via SIP in other (Growth) funds or shall i continue…? My horizon is minimum 10-15 yr.

    Thanks.
    Skandha

      1. It is payout option. Actually i was not aware of this fund type hence invested..:(.

        pl. suggest.

        Thanks
        Skandha

  142. please review and advise me for 5 MF’s ( total 15000 monthly )

    ICICI Pru Focused Blue Chip Eq Fund-Reg(G) : 3000
    Birla SL Frontline Equity Fund(G) : 3000
    HDFC Mid-Cap Opportunities Fund(G) :5000
    DSPBR Small & Mid Cap Fund-Reg (G) or DSP BlackRock Micro Cap Fund – Regular Plan – : 1000
    Reliance Equity Opportunities Fund(G) : 3000

    please advise and suggest- thanks

  143. Thanks basavraj sir for your earliar clarification regarding ELSS scheme.
    I am a new invester And with the help of your blog and small research i made the following portfolio with Rs.5000 r for 10 years-
    1. Large Cap : ICICI Prudential Focused Bluechip. 2000 Rs

    2. Large & Mid Cap : UTI Opportunities.2000 Rs

    3. Mid & Small Cap : IDFC Premier Equity Regular.1000 Rs
    Is it ok or do you suggest some change. Kindly suggest i,ll be highly obliged

  144. Thanks basavraj sir for your earliar clarification regarding ELSS scheme.
    I am a new invester And with the help of your blog and small research i made the following portfolio with Rs.5000 r for 10 years-
    1. Large Cap : ICICI Prudential Focused Bluechip. 2000

    2. Large & Mid Cap : UTI Opportunities.2000

    3. Mid & Small Cap : IDFC Premier Equity Regular.1000
    Is it ok or do you suggest some change. Kindly suggest i,ll be highly obliged

  145. Hello Sir,

    I have been holding 3 funds on long term basis. They are Birla Frontline Equity, Icici Focussed Blue Chip and Quantum LT Equity. Recently I redeemed DspBr Equity Fund. Now in order to makeover my portfolio, I am thinking either to switch the Focussed Blue Chip fund to Icici Value Discovery or to add IDFC Premier Equity fund. Please advise or comment in this regard please. Many thanks.

      1. sir I hv invested 20k p.a in hdfc life pro growth plus in opportunities fund and 15k p.a in hdfc sl pro growth super 2 in bluechip fund after seeing their returns wht would u suggest should I disclose dis funds or should I continue for more den 5 years as I hv opportunity to disclose one fund I.e sl pro growth super 2 as its bonds paper r still to recieve nd I wanna invest in mutual funds soo as a fresher which funds should I choose for sip of 2000 suggest me 2 funds which provide higher returns say 7+ years thanx

  146. Hello ,

    I have already taken SIP of 2000/- each on
    1) HDFC equity fund(G)(diversified)
    2) ICIC pru focussed bluechip(G) (Large)

    Wanted to take one more SIP OF 2000/- . I have shortlisted few of the fundz i.e

    1) Quantum long term quity
    2) UTI oppurtunities
    3) HDFC mid cap oppurtunities .
    4) IDFC premium quity regular.

    Would be highly obliged if you can suggest me any one from the above .

  147. Thanks sir for your clarification regarding elss. So how can we do investment in Elss if we cannot redeem our mney after 3 years

  148. Hi Basavaraj,

    I have been investing into the following ( SIP ) mutual funds from past 2 years.

    ICICI blue chip – Large cap -4k pm
    IDFC premier equity Mid cap – 2.5k pm
    SBI Gold – 1.5 k

    I am planning to open a new portfolio, Can u please advice me on the same

    And also let me know if i should continue on the above mentioned funds for more longer period , If yes approximately how many more years?

    Any advice would be appreciated.

    PS: Am 24 years age.

    Thanks in advance
    Regards,
    Amit

    1. Just a correction
      its,
      1. ICICI Prudential Mutual Fund Equity – Large cap
      2. IDFC premier equity fund – mid cap
      3. SBI Mutual fund Gold

      I earn around 6L pa

    2. Amit-Apart from SBI gold fund, I don’t have any issue with two funds. Why can’t continue in same funds for your fresh investment? No need to add funds for each fresh investment. Also equity investment should always be considered for long term goals like 7+ years. So if have such waiting period then go ahead.

      1. Thanks Basavaraj.

        Can you please let me know if I should opt out of SBI gold fund , since my investment is already down by 15%or should i give it some more time and wait until i get my capital back. ?

        Thanks & Regards
        Amit Shah

  149. Hi Basavaraj,

    I am 30 Year old IT professional. Actually I have been a firm believer of Fixed Deposit type of investment instruments for the last 7 years (Like PPF [70k per year), FDs in SBI/HDFC, IDBI, etc, NSC). I also have an Insurance Policy from Metlife (Term insurance of 25 years, paid 5 annual premiums of 50k till date).

    But apart from Tax Savings and Small income from FDs and similar instruments, Please advice me on how to invest my money going forward, probably Mutual fund investments and any advice on stopping any existing investments. Any Mutual Fund Investments you suggest going ahead would be very helpful.

    Regards,

    1. Achintya-For any long term goals you can use equity mutual funds (7+ years), but for less than 3 years goals you can use FDs, more than 3 years goals you can use debt products. So choosing product depends on your financial goals rather than simply to add one more product or asset class to your kitty.

  150. Hi Basavaraj

    How is Axis Long Term Equity fund? I want to start SIP in this fund for tax saving and capital appreciation point of view. Also is this large cap or large & mid cap fund

  151. Basavaraj Sir!
    i Wanted to know about t lock in period Elss plan if i do sip. Is SIP possible in ELSS ? If it is possible is there lock in period for each unit or i can take entire ammont after period 3 years?
    For eg if i started an sip of 1000 on 1/1/14 can i take entire ammount on 1/1/17 or there would be some unit which i can take after which lock in period 3 years is completed ? Sir kindly clarify.

    1. Ajit-You have 3 Yrs lock in for ELSS. Do remember that each SIP is considered as fresh investment. So each investment need to complete 3 yrs. Hence don’t be in wrong belief that SIP you started today for one year will be eligible for redemption (all units) at once after 3 years from now.

      1. Thanks for the clarification regarding sip of elss. So Basavraj sir! its better if we dont do SIP for ELSS FUND. Is their any better option for doing investment in Elss fund.

        1. Aji-It is not like that. Anyhow equity mutual funds are meant for long term. So you can opt for SIP. But the only problem with SIP for ELSS is, if fund is not performing well then you can’t switch because of lock-in. In that case one time investment seems better, because after 3 years you can come out of fund if it not performing well.

  152. Thanks Basavraj sir!
    Thanks for your prompt reply. Actually this portfolio is created by scripbox the online portal for mutual fund investment,they chose 4 mutual fund and investor has no choice but to invest in these mutual fund in they go through their gateway and they claim these are the best portfolio .Do they have commision from mutual fund company to include their product in thier portfolio. Sir, kindly comment on it
    And sir, how safe is doing mutual fund investment through such portal including fundsindia .How can we make sure the money is safe in the hands of third party like scripbox or fundsindia.
    Sir kindly reply.

    1. Ajit-Blindly don’t follow even me too. Investing all your money in basket is danger. So try to diversify it. I am now aware about scripbox. But I know fundsindia and their service and quality of selection of fund is good. Yes…they earn commission from fund houses. So they may push you where they earn more 🙂

  153. Hello sir,
    ajay here age 33, married from Karnataka . my take home salary is 20000 rs .

    i have LIC premium of 3000 rs per month

    home loan per month 7000 rs

    other expense 4000 rs

    want to start investing on SIP around 1000 rs/month for 10 – 15 years for my childerens

    education. some of friends refer ICICI pru focused bluechip fund & HDFC TOP 200

    can you suggest how much i should invest and where or please do my portfolio.

    thank you…….

    1. Ajay-Your 15% of earning going towards bad product (LIC). So first come out of that one (If it is not term plan). Buy pure term plan, health insurance and accidental insurance. Create emergency fund of around 6 months. Then we discuss about investment.

      1. Basavaraj sir,
        thanks for replying to me, all the LIC plans are for 15 to 20 years duration, what to do sir ?
        can u suggest me any health insurence to me, we are total 6 members including my parents, spouse and 2 childerens sir. little bit of confused sir.

        1. Ajay-If they completed 3 years then try to come out. Better to take separate health insurance for your parents and for your family separately. Go wtih Star, apollo, maxbupa or national health insurance.

  154. a very informative blogs. Thanks Basavaraj for this informative blog. kindly suggest and comment on the following portfolio.With sip investment of Rs 5000 for 20 years in
    UTI Equity Fund (G)
    ICICI Prudential Top 100 Fund (G)
    Canara Robeco Equity Diversified Fund (G)
    ICICI Prudential Focused Bluechip Equity Fund (G

  155. Hi,

    Please let me know if the below Fund allotments is OK:

    HDFC Short Term Opportunities Fund for 1 yr -1500pm (for marriage expenses)
    Birla Sun Life Top 100 Fund – Monthly 2000 for 10 years
    ICICI Pru Focused blue chip Equity Growth-2000 for 10 years
    SBI magnum midcap fund-2000 pm for 10 years
    DSP BlackRock India TIGER fund-2000pm for 10 years

    All my insurances are in place.

    Thanks in advance

    1. Tridip-Please stay away from debt funds if your time horizon is less than 3 years (due to recent tax changes), if you are at 20% or 30% tax slab. Also DSPBR, because it is infra fund. So if you are confident of infra sector then go ahead.

  156. I visited your website today only and let me tell you I really liked the way you write and explain things. I really gained some insight. I need a little investment guidance from you.
    I am 27, married. I have ample insurance cover. I don’t need health insurance as I am fully covered by my employer. I want to invest 5k per month by sip. My investment horizon is 10+ years. I would like to take moderate to high risk. what fund will you suggest for me?
    I was researching about some fund like UTI opportunites , icici pru focussed bluchip, hdfc top 200 and a few more but cant come to any conclusion.
    What is your take on index funds if I want to invest for long term and be, well a little risk averse!
    Oh lastly I am a new investor and this will be my first investment.I am investing by fundsindia

  157. Hi Basu,

    I want to invest 6000/- per month into SIP and I have selected two plans (as i have to select only one) :

    1.ICICI Prudential Tech Funds – 3000
    2. SBI Magnum Mid-cap – 3000

    Or should I invest into the below funds:

    1.ICICI Pru Focussed BlueChip Equity(G) – 3000
    2.IDFC Premier Equity Regular (G) – 3000

    Is this right funds for long term (lets say around 15-20 yrs) ?

    Regards,
    Rakesh D

      1. Hi Basu,

        I want to know about “L&T Balance Cycle Fund”. This is different kind of fund and it’s NFO start from 30th July to 13th August, 2014. I tried to know about this kind of fund, but i am unable to get it. I think this kind of fund firstly introduced in the market.

        Shall i go for this NFO: “L&T Balance Cycle Fund-Growth”. Please Guide.

        Thanks,
        Priyabrata Sahu

  158. Hi

    manish here age 33, married from mumbai. my take home salary is 62k .

    company health insurance product for 4 lakh.

    i have LIC premium of 6k per month

    home loan per month 31 k

    other expense 10k

    want to start investing on SIP – some of friends refer ICICI pru focused bluechip fund.

    can you suggest how much i should invest and where

  159. hi,
    myself vivek and my age is 26.Currently i am working in a soft company with take home of 35k pm.
    lets say,
    expenses – 10k
    ppf + bank fd + savings – 15k
    As i am planning to marry after 3 yrs, i am not interested in any insurance or watsover.may be once i get
    married i can start thinking of any insurance for my family.
    I have remaining 10k in my hand.so thought of investing into mutual funds for long term.

    So i have selected few funds,

    ICICI Prudential Focused Bluechip Equity

    Quantum Long Term Equity or uti opportunities

    Reliance Small Cap Fund (G) or DSP-BR Micro Cap Fund – RP (G) or or hdfc mid cap opportunities or uti mid cap

    hdfc balanced fund or hdfc prudence fund

    Are My understandings correct ? or should i include one ELSS fund and balanced fund(as i already plannin to put some in FD) in my portfolio ?
    can u help me to select proper funds and how much i can invest in these ?

    1. Vivek-Why Rs.15K in PPF+FD+Savings? Do you know as you grow older the premium you need to pay for same sum assured and term will go on increase? What is your time horizon of this equity investment? I am ok with ICICI, Quantum or UTI, HDFC Mid Cap but not favor of balanced funds. Because you already over investing in dept products.

      1. Sorry.What i meant to say is, just to cover tax i am planning to invest 50k or more in ppf and another 50k or e more in fixed deposit per year not monthly.

          1. As i have explained my salary and expenses , could you please help me on this.As of now i don’t have any responsibilities(no dependency).How i can invest 25k pm.

  160. What is your thought on below mid-small cap funds. I want one of these in my portfolio to book profits in bull market.

    1. BSL Pure Value fund
    2. DSP BR micro cap
    3. Reliance small cap fun

    1. Priyanka-If you are so much confident of bull market and of short term in nature then why can’t trade in direct equity? BSL will be my choice, lesser expense ratio, consistent long performer than other two.

      1. Thanks for the reply. I was thinking it this way… Invest in these funds and keep booking profits for my other expenses like my ppf, fd etc. If there is no profit just leave it alone n keep on investing until I profit again.

        I felt mutual fund is better than direct equity as I am not very well versed with picking up such stocks…

        1. Priyanka-But your strategy seems to be of trader than investor. So my serious suggestion is to not to do. If you are ready to take risk of such then you can. Please keep in mind that equity is for long term but not for short term.

  161. Hi Mr Basu ..Great Job and nice to see the way u handle – kind request to guide me on below :

    Age :41

    Year Requirement in lacs
    2018 25 Child 1 Education
    2022 30 Child 1 Education
    2023 30 Child 2 Education
    2027 60 Marriage child 1 and Education 2
    2032 40 Marriage child 2
    Total 185

    Investment :
    Large Cap : Axis equity fund or ICICI prud focused bluechip 6000 per month
    Large and Mid : UTI opportunities 6000 per month
    Mid and Small cap Equity 6000 per month
    Balance Fund equity HDFC Balance fund equity 6000 per month

    kindly guide if the above selection is correct or requires modification. Regards Rakesh

    1. Rakesh-Why two large cap funds? Infact currently UTI is also rated as large cap fund (value researchonline). So retain one large cap, mid and small cap and balanced fund. Regarding the amount you mentioned above, whether they are current values or future values? If they are future values then are they inflation adjusted? Also 2018 is short term goal. So for that why to invest in equity?

  162. Hi…

    I am working in a Bank for past 4 years, my age is 28 and I am unmarried. My current CTC is around 6 lacs and my monthly take away is around 40k. My current Investments are :
    1. Rs 1 lac FD for 1 year.
    2. RD of Rs 15,000 per month.

    My Financial Goals:
    1. Car of around 6 lacs next year. For that I will take 3 lacs loan remaining savings.

    I want to break my RD and invest 15k per month in different options.

    I currently have no insurance or any other investments. So kindly guide me , the suitable options.
    Should I take a term plan? Of what value? If you have some products in mind pls share.
    Should I invest in SIP/MF? What value? products?

    looking forward to hear from you.

    1. AS-First buy term insurance to the tune of around 15-20 times of your yearly income, health insurance, accidental insurance and critical illness insurance. Create emergency fund of around 6 months (which you need to touch only at emergencies). Once all these are at place then think for retirement goal (an utmost important than car). Then we discuss further…but do you feel car is necessary item or show off item?

      1. Thanks a lot for your reply.

        As you have suggested.
        For term plan : I have checked Max Life, HDFC & ICICI pru online term plans. In Max Life they are offering a monthly pension amount with Sum assured. Is it good? Also HDFC term plan require no medical check ups. Kindly suggest which one is better. Also should the term be 20 years or 30 years?
        Health Insurance : I have company provided health insurance of 5 lacs from ICICI Lombard. Should I take an extra health insurance? What are my options?
        Accidental & Critical illness insurance : What are my options? Does they include the health insurance plan?
        Contingency Fund : As you suggested a contingency fund for 6 months salary, should it be in FD or some other more liquid options? Please clarify.
        As far as the CAR goes, it is a necessary for me, but I can postpone it for 1 more year.
        As I have around 15k per month surplus income, how much should I invest in PPF , SIP/MF or other instruments.

        Thanks in Advance..

        1. AS-MAX with pension is not good as it’s premium will be higher and you can’t liquidate easily on claim. Go with HDFC,ICICI, MAX (without pension). Better to have your own than depending on company provided insurance. Accidental insurance not include Health Insurance. Considering current taxation better to keep it in FDs. Investing % to each asset class depends on goals. So I can’t comment on that. Based on your risk appetite and goal time horizon, invest.

  163. dear Basu

    i have got around 2,25,000 amount which i want to invest.I am looking Ultra short term for my emergency fund and other as an investment for min 4 years. i am thinking of below options which is a mix of lumpsum and SIP MFs. please correct me.

    1. IDFC MM Treasury – SIP – 13,000 per month
    2. Pramerica Ultra Short Term Bond – 13,000 per month
    3. BSL Dynamic – Lumpsum – 75,000
    4. Pramerica Equity – Lumpsum – 75,000
    5. BSL Frontline Equity – Lumpsum – 70,000
    6. Reliance Equity Opportunities Fund – Lumpsum – 70,000

    thanks
    shalil

    1. Shalil-In my view for emergency fund better to park with Bank FDs (because of recent tax changes with debt funds). For 4 years tenure you can go with BSL fund. I am not suggesting any equity fund for you.

  164. Hello Basu,

    I am 28 yrs old and would like to invest around 5000-10000 K pm in SIP for around 5-10 years. I already invest in FDs and PPF as well. Thus my expectation form SIP is good returns.
    I am planning to take up 1 large cap (30%), 2-3 mid cap funds (60%) and 1 small cap fund (10%).
    Kindly suggest funds I shall invest in since I do not have very good knowledge in this area. Also, any tips are welcome.

    Thanks

  165. Can you please suggest whether the recommended MF’s are still good to invest in the current scenario? This is the first time I am planning to invest in MF and wanted to know your prudent advice before proceeding.

    Thanks a lot in advance.

  166. Hello Sir,

    I want to Invest in Mutual Fund through SIP .For 3 to 5 year
    (1) want to invest 5000 per month for 3 year through SIP (Recommnend Fund pls)

    & also want to invest 2000 per month for 5 year through SIP (Recommend Fund pls)

    Regards
    Manu Sharma

  167. Mr Basu,
    I am just a beginner in Investing. I am seeking your advice to invest about Rs 10000 pm as SIP in mutual fund for long term goals . My daughters are now 4 yrs and 2 months old each and my husband is 37 yrs old. So I need a large amount at say 10-15 yrs from now for my 2 daughters’ education and marriage and also a corpus for our retirement. I am planning to invest in mutual funds. I already have SIP in UTI opportunities @1500 pm and HDFC Top 200 @1500 pm. In my small research I understood UTI opportunities is a good fund for long term, so planning to increase the SIP to Rs 3000 pm. Is that a good idea? Besides this please guide me in choosing the best funds and also let me know any other investment ideas that serves our needs.

    1. Priya-You can continue both existing funds and along with them add IDFC Premier Equity (mid and small cap). Also try to invest around 30% of your overall investable amount into PPF (considered as debt product).

      1. Thank you so much for your quick response, time and your valuable advice. I shall make the changes as advised. Your articles are very useful and guiding beginners like me in investing. Please do continue writing.

  168. Hi,

    your articles and advices are really helpful for investor like me.

    I want to start SIP with long term goal (16 – 20 years). I have shortlisted some funds as below;

    1. ICICI Prudential Focused Bluechip Equity – Rs. 7000/-
    2. UTI Opportunities Fund OR Mirae Asset India Opportunities Fund – Rs. 5000/-
    3. HDFC Mid-Cap Opportunities OR Religare Invesco Mid N Small Cap – Rs. 4000/-
    4. HDFC Balanced Fund – Rs. 3000/-

    Kindly suggest whether it is OK
    also pls refer No. 2 & 3 and suggest which one I should select
    apart from this kindly suggest me one more fund for Rs. 5000/-

    regards

    Bhartendu

      1. Thanks for your guidance.

        kindly suggest if I want to invest Rs. 5000/- more should I buy new fund (if yes which one) OR invest in these only.

  169. Dear Mr Tonagatti,
    Really appreciate the views and informal consultations that u have been giving to people – this is of immense help to lot of people. I have adduced below a snapshot of my financial profile of my family & goals. Request u to suggest a good portfolio of Equity oriented funds for my SIP strategy.

    Financial Profile:
    Risk Cover: Life Insurance – Yes; Health Insurance – Yes; Accident Insurance – (covered via Employer);
    Assets:
    Real Estate: – Two properties, combined current market value of about 1.5 Cr – having pending loans for about 24 L
    Equity: Nil
    Debt: TDs worth about 3 Lakhs – Using it as Emergency Fund

    Goals:
    Long term wealth creation – horizon of 20 years. Can do SIP of about 10,000 per month in my name and another 10,000 in my wife’s name. Going by ur suggestion, I guess I should pick up a portfolio of 5 Funds – not sure if I select the same Set of funds for both the SIPs (i.e mine & my Wife’s).

      1. Thanks Mr Tonagatti. Pls see if below portfolio is good for an investment plan of 10,000 pm.

        Franklin India Bluechip Fund(G) – 2000
        ICICI Pru Focussed BlueChip Equity(G) – 2000
        UTI Opportunities (G) – 2000
        IDFC Premier Equity Regular (G) – 2000
        HDFC Balanced Fund (G) – 2000

          1. Mr Tonagatti, ok fine. In that case, if I retain Franklin can u pls suggest 2 other funds in place of ICICI & UTI. Thanks.

          2. Mr Tonagatti, ok fine. In that case, if I retain Franklin can u pls suggest 2 other funds in place of ICICI & UTI. Basically i was trying to pick out 2 Large Cap, 1 Mid Cap, 1 Mid-Small Cap and 1 Balanced fund from ur Shortlist. Thanks.

              1. Mr Tonagatti. My idea of 2 Large Caps within a portolio of 5 was on assumed (!) ‘safety’ cues – but looks like its not a decent strategy. Request u to let me know ur recommended choice of 5 funds for my portfolio – I would want to invest about 2000 pm in each fund on this portfolio with a horizon of about 15-20 yrs. Thanks.

                  1. Hi,

                    But it comes only to 3 (mentioned below). Pls can u point out the 4th fund that u r referring to. Thanks.

                    IDFC Premier Equity Regular (G) – (since u asked me to select one among Franklin, ICICI or UTI – I selected Franklin)
                    HDFC Balanced Fund (G)
                    Franklin India Bluechip Fund(G)

  170. Hi

    I hold units through SIP in below funds. Time frame ins 15 years.

    HDFC Equity G – 2000 pm (30 months)
    IDFC Premier Equity G – 2000 pm (30 months)
    ICICI Focussed bluechip G – 2000 pm (6 months)

    My questions are

    1. All are suggesting to come out of HDFC Equity as its underperforming. But when I compare my returns of HDFC Equity and IDFC premier Equity now, I find HDFC has performed better than IDFC Premier equity. Should I still come out of HDFC or continue?
    2. I want to include 2 or 3 more funds. I am totally confused . Please help me pick considering I can invest agressesively and for long time.

    1. Priyanka-Never go with ratings of funds. Instead look for past performance and it’s consistency. So my suggestion is to continue HDFC (large and mid cap). Continue IDFC also which is small and mid cap fund along with ICICI. No need to add further funds. You can continue with same funds. Adding number of funds will not increase your return.

  171. Sir, I want to invest 4k per month in sip for 3 yrs. Can you suggest how best I can Invest to get better returns.

  172. I have already been investing in the following funds for a couple of years:
    HDFC Top 200 (G) – 2k
    Sundaram Select Mid Cap Regular Plan (G) – 2k
    HDFC Prudence(G) – 2k
    I’m planning to invest another 6k for 12-15 years in these different fund categories, 2 k in Large cap, 2k in mid & small cap and 2k in balanced fund through direct mode. Which funds do U suggest I should put my money in?

      1. Hi,
        I wanted to invest additional 6k monthly in 3 new funds and through direct mode. So wanted your advice on that.

  173. Hi Sir,

    My portfolio Consists Hdfc midcap opportunities(2k/month)
    ICICI pru discovery (2k/month)

    Sbi Emerging bussiness fund(1k/month)
    Reliance equity opportunity(2k/month)

    I have somy corpus I would like to invest in MF canu suggest me the Funds which are suitable to my portfolio and i would like to reddem sbi emerging bussiness fund can i redeem this im invested in sbi emerging from past 3 years i need your advice weather to redeem that fund or not as well as suitable funds to my portfolio Im expecting a positive reply to my mail [email protected]

    1. Rahul-With mere specifying your invested funds how can I judge about your portfolio? Also I am unable to understand what is your time frame and how you have choosen the existing funds.

  174. Hello,

    Please advise on my portfolio. I am planning for investing for 20-25 years and am currently investing in following funds:
    1) UTI opportunities – 3000/month
    2) Reliance Equity Opportunities – 4000/month
    3) IDFC premier equity – 4000/month
    4) ICICI Pru Discvovery – 4000/month

    Pls advise on my fund selection.

    I would like to invest 3000 more every month so please advise should I add more fund and if yes which fund? Or add 3000 to my existing funds?

    Thanks,
    Vijay K

      1. I chose one mid cap fund IDF premier equity, one multicast fund Reliance Eq Opportunity and one value fund ICICI discovery. Since my time horizon is more than 20 years I chose more various segments in mid cap space. Its aggressive but I thought with so many years the risk is relatively less. Pls advise.

        1. Vijay-Please understand that current mid cap company may move to large cap company based on it’s growth. But your fund will still have investments in mid caps only. So do you feel you follow the company you are investing now? Instead it is wise to spread your risk.

          1. I understand. Can you pls advise on which funds to retain and which ones to add to make my portfolio more balanced for long term (20 to 25 years).

  175. hello Basu,

    please suggest me any investment plans in which i can invest & want a good amount after 15 years, i can save up to 10-15000/month .I have save amount for emergency also, took a policy for my kid also & also family health insurence. please tell me the proportion of investment,& approximate amount which i will get.

    Thanks
    Regards
    Sandeep bajaj

      1. Thanks Basu for your valuable time…tell me the best term plan also,& one of my friend tell me about Aviva I growth he is investing 4000/month & after 20 yrs getting around 46 lacks,which we assume minimum of 13 % return,& please give me reply of above query also.

        Thanks regards
        Sandeep bajaj.

          1. Thanks Basu….
            Basu i am not reached at any decision yet…Look i have two goals to be achieved by the savings.
            1.Best term plan.(tell me about 2-3 names of the plans & company then i can decide)
            2.To get sum of 4-5 cr , how much investment & in which amount, please guide me in achieveing these goals ,it is up to you whether it is by mitual funds or any retirement plan
            -time limitation can be increased to 15 -20 years, saving can also be increased…
            -Hope i will get the answer of all my queries.

            Thanks regards
            Sandeep bajaj.

            1. Sandeep-Regarding best term plans you can refer my post “Best Term Insurance plans in India (After 1st Jan 2014)“. Regarding your second doubt, it is wild question to me. Do you know whether it is equity or any other asset you need to review on at least yearly base. So If I say invest in some x,y and z funds means your work is not over. Please understand that claiming Rs4-5 Cr seems to bigger now. But there are so many complications in one’s financial like for example inflation itself will beat your whole lot of earning if not do proper investment. Hence I can’t answer or provide you READY-MADE answer 🙂

  176. Hi Sir,

    I want to invest 6000/pm in mutual fund for period of 15 years.
    PLease suggest me 3 funds , so I can invest 2000 Rs each.
    Also suggest me to invest in growth /dividend option of a fund, as I am investing for 15 years.

    Waiting for Response

  177. Hi Sir,

    I want to invest 6000/pm in mutual fund for a period of 15 years.
    Please suggest me 3 funds.
    Which is a good option for going with dividend option OR growth option for a span of 15 years?

    Please suggest me 3 funds with dividend/growth option.

    Thanks in Advance

  178. Hi BasuNivesh ,

    Iam going to invest in the Sips for Rs. 10,000 on the following funds for 15 years ..

    please look into it and suggest me .

    1. Icici focussed blue chip fund (G) – 2000
    2. Uti Opportunities (G) – 2000
    3. HdFc mid cap Fund or Reliance Equity Opportunities Fund (G) – 2000
    4. Hdfc Balanced fund – 2000
    5. Reliance regular Savings equity fund – 2000

    Is That ok .. or any Suggestions …

    iam looking for thr best output ..

      1. Thanks ..

        Also i want to invest in the retireplan ..

        I can pay 1 lakh annualy ..

        the term can be 20 years

        iam looking for a lumpsum ..

        which is the best company and the best plan ..

    1. Hello Basu, I am a beginner and looking forward to invest in SIP/MF’s.
      My investments is probably too small around Rs 5000 ( i am looking to split 5000 into 5 different funds).

      Can you please suggest which all funds should I be investing and which is a better option to go for 3 years or 5 Years.

      Looking forward for your favorable response.

      Thanks & Regards
      Ashwary

        1. So you are saying SIP is not recommended at all if I want to invest for 3 years or so??

          And in case I invest for 5 years then which all funds you recommend?

          1. Ashwary-I am not saying about SIP (please understand that SIP is not equity, but it is a way of investment), but against equity if your time horizon is less than 5 years. At the same time 5 years in the sense not exact 5 years. It must be more than 5 years.

  179. Sir, Also will u pls advise me if I go for the investment in the following funds on 20000 p.m for 7+ years

    1) ICICI Pru Focussed BlueChip Fund (G) – 5K

    2) IDFC Premier Eq. Fund -Plan A (G) – 5K

    3) Reliance Eq. Opportunities Fund (G) – 5K and

    4) Quantum Long Term Equity Fund (G) – 5K.

    Already am investing 8K p.m in PPF and have enough insurance.

    Pls suggest me whether I hv to change/replace any funds. Thanks in advance. ……. Prakash.

  180. Sir..now i plan to invest Rs.3000 more..would i invest in existing Sips or i start new Sips…kindly advice

  181. Hi Basu,

    Nice article. I have come across your website first time today, nice work.
    You are selected only two GEMS from each category, really nice work.
    It is always difficult for us to select best funds from thousands funds.
    Dear Basu,
    1. I have not find – ICICI Value Discovery, ICICI Pru Dynamic in above list as both are good for long term.
    2. PPFAS Long Term Fund is new, awaiting for your comments.
    3. I have – HDFC Mid Cap opp, IDFC Pre Eq, ICICI Discovery
    FT Blue chip, PPFAS , Quantum LT Eq. & ICICI Pru dynamic .. 07 Funds
    plz reply me with your valuable comments.

    AMOL

    1. Amol-There are plenty of permutation and combinations to select a fund. But as I said above, I selected the funds based on long term performance, fund house credibility and some other things. So I am not saying that the funds you named are bad. But adding more funds only to have more successful funds in your kitty will not make sense. PPFAS have good idea, but sadly no promotion as they not tied with any distributors. Ideal portfolio can be enough with 4-5 funds.

      1. Hi Basu,
        Thanks for your comments. as for Pt. No 03 above, may I continue with current portfolio or would you suggest any change?

        AMOL

        1. Amol-That is what I said and hinted you. Please check for overlapping and you can come out of funds which are in same category and retain rest. Like you have too many mid and small cap funds. Retain one and continue.

  182. Hi,
    Sir , I want to investment in mutual fund, but lack of more information i did not investment,
    now i am pursuning a accounting course and doing a job in office as a accountan in delhi,

    Pls sir give me some knowledge in mutual fund and which is the best for investment for me.

    1. Goutam-Before proceeding for investing, do you have proper insurance, health insurance, accidental insurance or emergency fund? If not then first concentrate on basic things of anyone’s financial life. Then we can discuss about investing.

  183. Hello Sir

    I need your suggestions on my portfolio.

    I am investing 10500 pm (3500*3) from last 12 months in following funds:-
    HDFC Prudence
    SBI Emerging Business Fund
    Reliance Equity Oppurtunity

    & I got pretty decent returns as well c.25%. Now my Financial Manager has suggested, that since we have some good lumpsum amount, we should park this money in some Debt fund & transfer some amount e.g. 5000 pm (divided by no. of working days) into equity (small & mid cap) to capture daily NAVs basically transfer from Debt to Equity by Systematic Transfer Plan.

    & in place of above 3 funds, we should investing same amount (10500) in following 3 funds for short term (12 months) since markets is in bullish trend.

    Franklin India smaller companies fund
    UTI MNC
    SBI Magnam Midcap

    Sir please let me know your take on this. Thanks!

    1. Jatin-Please come out of SBI and continue with Reliance. You got a good returns all because of bull market. Now let me know your time period of investment. Because if you are investing for long term (like another 7+ years) then no need to come out. Stay with both HDFC, Reliance and also start investing in Franklin Bluechip (Large Cap).
      The trick used by your Financial Manager is cautious move but when you have long term view then no need to come out in such sudden jerks of market. I am smelling something fishy in his move. Because the funds which he has chosen are small and mid cap funds which are more riskier than the HDFC Prudence fund. Also all are small and mid cap funds. So there is more risk in investing in the funds which your manager chosen than continuing HDFC Prudence Fund (Balanced).
      So instead of coming out of risk you are entering into more riskier product and time. Think and decide.

      1. Thanks for your reply.

        My investment horizon is 5+ years.

        The reason he suggested me for adding 3 small & mid cap fund & pulling out from previous funds is that since market is in a bullish trend & given the good returns of these new 3 funds compared to previous 3, we’ll invest in them for 12 months & then switch back to some stable funds.

        In the mean time we’ll park the lumpsum amount in debt funds.

        Also could you please let me know when & why to invest in Large caps funds vs. Small & Mid cap funds.

        Regards,
        Jatin Chauhan

        1. Jatin-Do you not feel putting all eggs in same basket rather than different baskets? I suggested you large cap fund as they are less volatile than small and mid cap. It is now your call to take decision.

  184. Hi Basu , I want to start an sip .. I can spend Rs. 12,000 per month ..Please suggest me the funds in all categories ..ia looking for the best returns . I can wait upto 18 years … So please suggest the funds ..

  185. Hi Nivesh,

    I don’t have any savings till now. So, I want invest in either MF / PPF / RD for an amount of 4000 per month for a period of 5~8 years. Can you please suggest which one is good to start with?

        1. Vamsi-First let me clear you that mutual funds in the sense not equity. Mutual Funds have plenty of options like short term debt to Equity. But when you say equity investment then there are so many theories like who can enter. In my view the idealistic entry will be for those who have goal time horizon of around more than 5-7 Yrs.

          1. ok.. So, if I can invest for a long time as you said for a period of more 5 years, which funds do I need to choose?

  186. Thanks Basu for sharing your valuable knowledge & time….Basu i also want to opt retirement plan…..like i want around 2 cr of bank balance at the age of 60, as i told you i am 32 know.Tell me where to invest….& in what proportions….

    Thanks in advance
    Regards
    Sandeep bajaj.

      1. hi Basu,
        Its just the figure for which we can think is a good amount for peaceful life…as i lived in small city Sirsa in haryana having on house….actually i want to reach for the figure of 5 cr…but earlier i show you 2 cr, may be funds which i have planned are less.please tell me for 5 cr & savings proportion…..

        Thanks for guidence
        Regards
        Sandeep bajaj.

        1. Sandeep-It involves lot of data from your end and a process of retirement planning. It is hard for me to guide by mere sharing two lines suffice to guide you. But you can consider equity mutual fund of around 80% and rest 20% in debt.

          1. again thanks Basu…
            sorry i am not able to understand your technical terms of equity 80 % & debt 20% please can you elaborate the same…..
            one of my friend told me about Gold etf (Gold biss),he is purchasing 4 gms every month & plan to do the same for 20 years,is it good option for investment?

            Thanks
            Regards
            Sandeep bajaj

            1. Sandeep-Equity in the sense my suggestion is to go for equity mutual funds. Debt-If you have experience or knowledge about how debt funds work then select debt funds otherwise choose options like PPF. I am not big fan of gold. But you can have it around 5% of overall investment (that too not in physical format, but either in Gold Mutual Funds or ETF).

              1. thanks Basu…
                can you please suggest me some funds in these categories….. what i think Basu that Modi govt may put more stress over natural power resources so can i also look forward for this sector also??as they are performing low in past but now they are boosting….whats your view….

                Thanks
                Regards
                Sandeep bajaj

  187. Helo Basu,
    I am new in SIP and very thanks to you for knowledge sharing.
    Can you guide me that how do i invest in SIP? like i am 32 and have son of 2 yrs & a LIC policy (jeevan ankur)of 57000 pa & have enough emergency fund,have ICICI lombard health insurance of 3 lakh . I want to invest for my son (2 years old) for his higher education & my retirement.I have selected three funds please give me advice on these…
    (1)Reliance Equityopportunities fund (G)
    (2)Quantum long term equity
    (3)ICICI pru tax plan(G)
    Want to invest 10000/month up to 7- 10 yrs .

    Thanks in Advance
    Regards,
    Sandeep bajaj.

  188. Hi

    I have below MF investments done for my long term goal of >15yrs:-

    1. HDFC Prudence (Rs. 1000)
    2. ICICI Prudential Dynamic Plan -G (Rs. 1000)
    3. Started recently with Reliance Tax Saver Fund (Rs 2500) for Tax Purpose.

    Iam also tempted to start may be Rs 500 SIP in Quantum Long Term Equity Fund
    purely because of its lowest Expense Ratio.

    My Questions :-

    A)-> Are these MFs sufficient, Do i need to do any changes in this portfolio?
    B)-> Is it wise to put money in different sectors fund? So what all should i do?
    C)-> Is it wise decision to start Quantum Long Term Equity Fund also.
    D)-> This is my biggest doubt wanted to clear – > What should we do, put all the
    spare money in 1 MF or should purchase number of MFs. ?

    Thanks
    Rajiv

    1. Rajiv-Why two large and mid cap funds (ICICI and Quantum)? Select Quantum and continue. You also include one large cap and one small and mid cap fund from above list. Let me know the answer to basic question-“Should I put all eggs in one basket or should I put it in different baskets??”.

      1. Thanks for the reply. You are right…. one should put all the eggs in diff basket as much as possible.

        For my other Query which you answered – I am already continuing with ICICI Prudential Dynamic Plan for past 1 and half year.. and am getting around 20% as return in this.
        Is it the good MF in which i have invested for long run?

        Also, does it make sense to start with Quantum Long Term Equity MF? My only temptation was because it had lowest PE ratio.

        Also, suggest me MF’s of other sectors which have a very good track record for last 5yrs atleast in which i can invest?

        Thanks for your valuable inputs.

        1. Rajiv-Worst performing stocks also give such 20% run when there is a bull market. So don’t go by current bull market return and it’s effect on your fund. Instead I suggest you to go by historical returns of both ICICI and Quantum. Then decide yourself (if possible share what you learnt). Sector means??

          1. Hi!

            This is the return history:-

            ICICI Pru Dynamic Reg-G: [ Sector: Large and Mid Cap ]
            1yr Return=55.71%
            3yr Return=16.25%
            5yr Return=18.97%

            Quantum Long Term Equity – G [Sector : Large and Mid Cap]

            1yr Return=46.09%
            3yr Return=16.65%
            5yr Return=20.67%

            As per this, my understanding says both will be under same category fund. So, Category wise both are into same Large and Mid Cap. Should avoid purchasing Quantum long term Equity Fund i.e. the same sector fund. right??

            Can you tell me, if its good to put Quantum and Reliance Tax Saver Fund together for Tax saving purpose? I need to save tax also.

            Quantum tax Saver is in large and mid cap sector whereas Reliance is in Mid and Small Cap. Also, overlapping factor between these funds for stocks is about 8%.
            Will this be good to start investing in Quantum Tax Saver fund also as i already have Reliance Tax saver fund started? And, it will also give me room to save tax.

            So, based on above facts and figure, do you suggest me to start another SIP with Quantum Tax

            Thanks for giving me your advice

            1. Rajiv-But Quantum Long Term Equity is not tax saving fund. Regarding choosing funds between Quantum and ICICI, the decision is left with you (but my inclination is towards Quantum). But you are talking about Quantum Tax Saver to Reliance Tax Saver, then it is always better to have only one.

  189. Hi,

    i am 38 year old and want to invest rs 1000 per month in sip from July 2014, and wants to keep on doing this till June 2036 till i get to my retirement age.

    pls suggest best funds, however somebody suggested me birla frontline / hdfc top 200 / hdfc equity.

    Pls advice me best possible option keeping in mind long term durability of the fund.

    Also advice me whether it will be prudent to register for an auto increase of 500 rs per year in the fund where i will be investing

    Regards,

    Sachin Gupta

  190. Hi ,

    Thank you for the info that has been shared, very helpful! Request your view on the below funds?

    Franklin India Smaller Cos Fund-G

    HDFC Mid-Cap Opportunities Fund – Growth

    Mirae Asset India Opportunities Fund-Reg(G) –

    UTI Transportation & Logistics

    Birla SL Pure Value Fund(G)

    ICICI Prudential Exports & Other Service

    Thanks,

    Sebastian

  191. Hi,

    I want to start SIP’s of Rs.1000/- each in following funds for a period of 5 years or more. please suggest whether these choices are good or not. ( I have to save money for my daughter education and future)

    1. Reliance Equity Opportunities Fund
    2. Franklin India Smaller Companies Fund
    3. ICICI Prudential Focused Bluechip Equity Fund – Regular Plan
    4. Quantum Long Term Equity Fund
    5. ICICI Prudential Technology Fund – Regular Plan
    6. UTI Transportation and Logistics-G
    7. SBI Pharma Fund

    Regards

    Rajesh

    1. Rajesh-Why two mid and small cap funds (Franklin and Reliance)? Also if you are fresher then I don’t think sector funds will be better for you. They involve more risk than diversified. So rest is left with you.

  192. I have SIPs in the following Equity Mutual Funds with the intention to keep invested for another 10 to 15 yrs.

    ICICI Pru Focused Bluechip Equity Fund – 2000
    UTI Opportunities Fund – 2000
    L & T India Special Situation Fund – 2000
    Reliance Equity Opportunities Fund – 2000
    Mirae Asset Emerging Bluechip Fund – 2000

    Pls advice if I require to make any changes in the said funds.

    Thanks

  193. Hello Sir,
    My name is Shantanu and i am from Maharashtra..Currently i am working in IT company and I am interested to invest in mutual funds but as a starter i don’t know where should i invest. Can you please help me in investing? i am thinking of investing 2k-4k /month and please tell me should i invest for short term or long term? as if now i am not investing anywhere. Thanks in adavance 🙂

  194. Hi Brother
    I have a daughter aged 3 Years. My age is 33.
    I am planning to invest in Mutual Funds for long term for my daughter Education, Marriage and my retirment purpose
    atleast 15 to 20 years based on her age now.
    I feel goin for long term in mutual funds, i prefer high risk high returns MF.
    Kindly suggest the MFs which i could opt for the above 3 purpose.

    I read different MFs can be bought via single platform like Fundsindia or Fundsupermart .
    which one is best Fundsindia or Fundsupermart ?

    Thanks alot for your great service 🙂

      1. Thanks alot for the reply Brother.

        Could you please reply for the first question below :
        I have a daughter aged 3 Years. My age is 33.
        I am planning to invest in Mutual Funds for long term for my daughter Education, Marriage and my retirment purpose
        atleast 15 to 20 years based on her age now.
        I feel goin for long term in mutual funds, i prefer high risk high returns MF.
        Could i go for high risk high returns for long term ?
        Kindly suggest the MFs which i could opt for the above 3 purpose
        Thanks again

        1. Balaji-No need to take huge risk. But you can opt a fund from each category in the above listed funds from large cap, large and mid cap and mid and small cap fund. Start investing and review on yearly base.

  195. Hello, Basu,

    I am investing in HDFC long tern advantage fund (D), HDFC top 200 found, and HDFC equity fund (G) from last few years. I am investing Rs.10000/- in each of the above funds. Please advise if that is good or do you suggest any other funds for 10-15 year period?

    Shrikant

  196. Hi,

    I wish to invest in MF and as long term goal (20 years). I plan to go with SBI Magnum (Growth) and HDFC Balanced Fund.

    Please suggest on above MFs or any other options. I am looking for benefits at later stage say 15-20 years. Invest plan is for 5000/- pm

    Regards,

    Parima

  197. Dear BT

    thanks for such a wonderful advise and tip. I have couple of queries.

    1. I recently came across a plan called TATA AIA Maha Gold Insurance plan introduced to me by 1 relative. the plan says that if I invest approx. Rs.2,00,000 for the first 10 years. then I will start getting approx. Rs.1,50,000. which is a combination of 5.5 % gauranteed and 4.5 % returns on dividends. this is amount of Rs. 1,50,000 i will get it for the next 75 years. at the outset this looks very attractive but I am sure there is some catch. have you heard of this plan. is it good or bad ?

    2. I have a cash of 1 lac with hand with me for 1 year. what is the best way to invest this. Fixed deposit at a Nationalised Bank ? or any Gold plan. the plan to invest is only 1 year.

    regards
    shalil mumbai

    1. Shalil-Please go through the link, it states that you will receive 5% of sum assured from the policy 10th year. So you pay Rs.100 and they give you Rs.5 as annual payout. How about keeping the same in savings account (yes savings account itself will fetch you GUARANTEED return equal to this plan)? Do you think with the kid of inflation (around 8%) your retirement or future 5% payment from this plan suffice to survive. This is typical traditional plan. Stay away. Also I have not seen any wordings related to 4.5% return. Please let me know who shared that with you or source of the same.
      Fixed Deposit or use ultra short term funds for a year time period.

  198. Hello Mr Basu,

    I went through the article posted by you and also the comments and replies and got a fair bit of idea. I am totally new to investment. I have insurance cover and term insurance, Mediclaim etc. I have a plan of investing Rs 10,000/- each month via SIP. I am looking at returns after 15 years and 20 years. After reading through different articles and some research I am thinking of investing in 5 products (2000 each).

    My question:
    Should i invest in 5 products or go with 2-3 and increase the amount per month in each product.
    What should I look at: Large cap, Mid cap, small cap, balanced equity?
    I am someone who wont be keep a track of all he data so which product is suitable for me?

    Thank you in advance
    Deep

        1. Deep-You choose a fund from each category as mentioned above. Start investing and if want to increase your investment then you can increase in the same funds than having one more fund.

            1. Sandip-Yes it is beneficial. But never invest in this product keeping in mind that you will get it back after 3 years lock in over. This product being equity oriented, your time horizon of waiting must be more than 5+ years.

  199. Hi Basu,
    I am new in SIP and very thanks to you for knowledge sharing.
    Can you guide me to how do i invest in SIP? like i am 32 and i have a LIC of 25,000 pa and regularly i am investing in FD of 1 lkh every year for 5 years from last 3 years. I want to invest for my daughter (3 years old) for her higher education when she will 16 and then for her marriage.
    Kindly guide me that how do i invest to achieve this goal .

    Thanks in Advance
    Regards,
    Shailendra

    1. Shailendra-Do you have enough insurance? Do you have health insurance? Do you have emergency fund placed of around 6 months household expenses? If all these basic things are at place then we move towards investment. Please let me know your views.

      1. Hi Basu,
        I have Term Plan of 50 lakh other than the LIC . and also have health insurace of 5 lakh which covers my family. And yes i have enough emergency fund which can be use 6 months household expenses in case of any misshappening.
        Kindly suggest

        Regards,
        Shailendra

        1. Shailendra-Please think and decide about the amount of sum assured (ideal should be around 15 times of your yearly income). You can choose a fund from each category of above listed funds and start investing. Review it once in a year. How much need to invested involves lot of calculation. So you need to decide the amount yourself.

  200. Hi Basu

    I am Planning to create a MF portfolio with a time horizon of 10-15 years. After doing a bit of research i have zeroed in to below given funds.

    ICICI Pru Focussed Blue Chip Fund- Rs. 1500/month
    HDFC Top 200-Growth fund- 2000/Month
    Birla Sunlife Top 100 (G)- 1500/month
    UTI Opportunites- 1000/Month
    HDFC Mid Cap Opportunities- 1500/month
    ICICI Pru Balanced Fund- (G)- 2000/month

    Can you please suggest some good DEBT fund and Gold ETF fund also to be invested. I have a Moderate Risk Appetite but looking for good growth with 10-15 years horizon.

    Thanx,
    Govind
    Govind

    1. Govind-Why can’t have one fund from each category and come out of rest? Also when your time horizon is around 10-15 years and some % of your investment is already in debt category (balanced fund), then what is the need of debt funds? Gold Fund-Maintain around less than 10% of your inestable surplus or portfolio.

  201. Dear Sir,
    Please evaluate following portfolio and advice any addition or deletion. The portfolio has been built up through SIP.
    1) DSP BR Top 100 Fund (G)
    2) Birla SL Frontline Equity Fund (G)
    3) UTI Opportunities Fund (G)
    4) Reliance Equity Opportunities Fund-RP (G)
    5) HDFC Top 200 Fund (G)
    6) IDFC Premier Equity Fund-A(G)
    7) HDFC Midcap opportunities Fund – Direct (G)
    Thanks & Regards.
    Balkar Singh

  202. Hi Basu…at the outset let me thank you warmly for the independent opinion you give out through your website; Can you advise me on these 2 questions, thanks in advance 1. what is your outlook on Reliance Diversified Power Sector fund (Growth), the NAV was around 43 before the new government took charge and now it shot up to 77. I used to hold some units in the Reliance Infrastructure fund which got amalgamated to the Relaince Diversified Power Sector Fund. Is it worthwhile to hold on to this fund or now that the NAV is high, should i cut my losses and move forward. 2. What is your outlook on Religarte Invesco Mid n Small cap fund ? thanks in advance, Hari

    1. Hari-Power sector may see some positive response from new Govt. But I still avoid avoid any sector funds. Better I stick with diversified. Regarding Religarte Invesco Mid and Small-It is aggressive fund but look at higher expense ratio too.

  203. Sir, I am 32 Years old. I have HDFC term plan(OF 50LAKHS). Currently investing in RD (2k) as well as in LIC(1.5K). Investing in MF is new for me. But i want to invest Rs.3000/- in MF from this months in different plan through SIP as 1K/ month.
    Pl. advise which MF is good for me. I want to invest for 5 to 7 Years. But i can continuing one MF plan upto 10 years. Pl. revet in case you require more details from me.

  204. I want a fixed income scheme want invest less than 5000 and also suggest good short term schemes that yield better returns& which scheme should i take up as a beginner in mutual fund pls help me

  205. Namaskaara Basavaraj,

    Thank you for such a wonderful guidance. Could you also guide me?

    Since I was wondering whether my money would go for a toss, so initially I thought the following SIP instrument for 3-5 years

    ICICI Pru Focussed BlueChip Eq Fund [1500/-]
    UTI Opp [1,000/-]
    Birla SL FRF-Long Term Plan [1,000/-]
    IDFC Dynamic Bond Fund[1,000/-]

    But after reading your article I have changed my mind set and would like to start SIP for at least 20 years [I’m now 27]

    ICICI Pru focussed Bluechip Equity (G) – Large cap [2,000/-]
    Quantum long term Equity (G) – Large and Mid cap [1,000/-]
    Reliance Equity opportunities Fund (G) – Mid and Small cap [1,000/-]
    HDFC Balanced Fund (G) – Balanced [1,000/-]

    Possibly in future I may increase the amount based on their performance and my compensation 🙂

    Would you still recommend me the first SIP plan [mentioned above] If I plan a SIP for 3-5 years?

    Regards,
    Vasu

      1. BT- I chose short term and income funds because of small term [3-5 years] plan. Isn’t there any other option for this?

        If these are not suitable for short term could you please tell me when can an individual choose them?

        Regards,
        VB

          1. Thanks, Basu!

            Recently, JPMorgan MF launched Emerging Markets Opportunities Fund and they are offering NFO for Rs 10 per unit. Offer closes on 30-Jun

            Do you recommend to invest in this?

  206. Dear Basu,
    i am an NRI working in Gulf Aged 39 yrs.
    i wish to invest in mutual funds in SIP mode in 5 funds around Rs.3000 each for 3 yrs. i will hold for 5 to 7 yrs.
    kindly advice me some good mutual fund schemes which can give me good returns and whether the SIP amount and no of funds is OK or you will advice a change.
    i already have LIC policies, FD in bank, term insurance and medical insurance and hence want to invest in MF.

    Pl advice,
    Thanks,
    A S Ashok-

      1. Dear Mr.Basu,

        i can hold on for more years upto 10 yrs. There is no immediate commitment for me to utilise these investment.

        Do u still advice me to be out of equity market or how many years minimum u will recommend for people of my age 39 yrs?

        If the time frame of 10 yrs is ok, kindly advice me on the SIP and the good funds to invest

        Thanks,

        Ashok

  207. Hi Basu

    First of all i would like to thank you for all the information provided by you. I have the following questions:

    1. With the market being at a high, is it wise to start the SIPs now. I know the SIPs are a means to NOT time the market, but nevertheless wanted to know if we should wait for a correction?

    2. I am 28 and planning to start investing for my retirement. So i am looking at investing for the next 15-20 years. Right now i am going to start with a SIP of Rs. 5000 using the following funds:

    ICICI prudential focused blue chip: 1000
    ICICI prudential dynamic plan: 1500
    Quantum Long term equity: 1500
    ICICI prudential value discovery fund: 1000

    I am going to start investing using the DIRECT route as the expense ratio is cheaper. Please advice on the above.

    Thanks!!!!

    1. Ram-Including me, you or any expert on this earth can’t time the market exactly. So when you are planning for long term such situations will occur so many times. Being calm and continuing with investment is success mantra. Funds are good but why two large and mid cap (ICICI Dynamic and Quantum)?. Keep one and continue.

      1. Thanks for your reply Basu. I thought of investing in two large and mid caps at different periods of the month. For example, i can invest in Quantum long term equity with a fortnightly SIP on 5th and 21st and ICICI pru dynamic plan with monthly SIP on say 15th or so. Do you think that is a right method or shall i just stick with Quantum Long term equity.

        I have one more question for you. As you can see am having 3 MF schemes from the same fund – ICICI. Although the fund managers are different, would you advice going with this plan or go for different fund houses. Do you see any advantages/disadvantages with this?

        Thanks!!

        1. Ram-Even can do such investment set up with one fund only. So why two? I thought to raise this of going only with ICICI, there is no such harm if funds are well performing and no one from ICICI is forcing you. You can go ahead 🙂

  208. Hi Sir,
    can you suggest me some long term investment mutual funds with in 5*1000=5000(5 funds) per month.
    please include 2 tax saving plan and equity large and mid cap plan.i have already invested on icici prudential
    focused bluechip growth.
    so i want 4 more funds to invest.

    thanking you
    ashish tiwari

    1. Ashish-What do you mean by long term according to you? If it is more than 7+ years then choose a fund from above said category and start investing. Adding new fund on each your new investment will not add value. Instead you can invest within 3-4 funds in a diversified manner.

      1. yes sir i want to go more then 15 years.sir can you elaborate more what you replied.so that it is understandable to me.

  209. I want to buy mutual funds through SIP (Monthly investment of Rs. 5000/-) for a long term. Pl suggest best mutual funds.

  210. HI Basu,

    First of all thanks a lot for sharing such wonderful information.

    I am 28 year old and very new to this mutual fund world , though i am trying hard to understand it.
    My queries to you are.
    1) Being a first time investor from where should i start , i am planning for long term planning
    2)I have around 5000 pm to invest as of now
    3)At the same time i am looking for any tax saving schemes as well because i dont have any of them.I am thinking of any ELSS plan(please suggest)
    4)Are the SIP’s better option than the LIC plans?

    Many thanks in advance

    Regards
    Manoj

    1. Manoj-1) If your time horizon is more than 5-7 years then definitely start with selecting one from each sector.
      2) Diversify that Rs.5,000 among the investable funds equally.
      3) ICICI, Canara Robeco or HDFC Tax Saving Funds are good. You can go ahead.
      4) SIP is not a product but it is way of investment. Hence don’t compare with SIP to product of LIC.

  211. Hi,
    I have a 2 yr old daughter and would like to invest for her future. The amount i can invest is Rs 3000 pm.
    I have read about the HDFC Childrens Gift Fund – Investment Plan. Is this a good fund. Please also suggest if it would be better instead if i take a child insurance plan. I’m also looking at investing Rs 1000 each in Hdfc mid cap opportunities fund growth and quantum long term equity for my other goals. In all the 3 funds i would like to stay invested for 10 years. Kindly advice if these funds would benefit in the long run.

      1. yes me and my husband have a Jeevan Anand life insurance policy each.. I have also started a PPF account recently . No additional health insurance apart from company cover.

        1. Poorna-Ideal insurance cover should be around 15-20 times of yearly income, which I think lacking in your case by investing in typical traditional plan. So first buy pure term insurance product. Buy Health Insurance, even though company provides that. Buy accidental insurance and buffer a cash of at least around 6 months of household expenses as emergency fund. Once all these are in place then go ahead for investment.

  212. Hi Basu,

    I am at 29 yrs & planning to invest below funds for 10 years through SIP (HDFC Netbanking).

    1. ICICI Prudential Focused Bluechip Equity (G) – Rs: 2000/month (Large Cap)
    2. UTI Opportunities (G) – Rs: 1000/month (Large & Mid Cap)
    3. IDFC Premier Equity Regular (G) – Rs: 1000/month (Mid and Small Cap)
    4. Reliance Regular Savings Equity (G) – Rs: 1000/month
    5. HDFC Prudence – Rs: 1000/month

    And I also started PPF investment for tax purpose.

    My Queries is, Is it right choice to SIP invest through HDFC NetBanking?

    Please advise on this. Thanks.

    Regards
    Ram

      1. Thank you very much for quick response Basu …

        One month back, I went to my home branch HDFC bank & filled the two forms which include KYC form and submitted them.

        After that, They created one mutual fund account number with SIP, STP, Purchase, Redeem & etc., facility with Saving banks.

        But they will charging for this facility Rs: 100 per quarter even if we didn’t any transaction for mutual funds.

        For example, 1 Year = Rs: 400 & 10 years = Rs: 4000.

        We can see list of mutual funds with transactions in One view in HDFC Netbanking. That’s one advantage.

        Shall I proceed mutual fund investments through Netbanking or shall i move to other options.

        Please advise on this.

        Thanks.

        1. Ram-HDFC Bank is acting as middlemen and charging you. They are charging for each transaction which is unfair. Even if you go through any adviser they will not charge anything for SIPs or even you can opt for online service of FundsIndia. In long run it is not a good investment choice for you when same is available at free. Coming back to viewing all your SIP at one place, it is not a big deal. Nowadays if you request statement then the same will be available in your mail box within few hours, which involves all your investments. Also you can receive the consolidated account statement from CAMS (irrespective of which fund your investments are). I will inform about this with FundsIndia and I hope they will help you.

  213. Hi

    Thanks for valuable knowledge sharing,

    I’m new in Mutual Fund. Right now I want to invest in Tax saving fund for 5-6 year. I want to invest 3000/- per month.
    I read that there is locking period of 3 year means that after 3 year I sell my funds. I’m confuse little as I started Investing in Tax saving through SIP in June 2014.

    Each year investment comes under Tax 80c rebate.

  214. Hi,

    I’m 40 years. I have the following MFs, and I’m investing thru SIP. I’m planing to invest for coming 10 years. Please suggest if the current portfolio look fine or if there is any change required:

    1. HDFC Equity Fund(G) – 5000/month
    2. L&T Equity Fund(G) – 5000/month
    3. IDFC Premier Equity Fund-Reg(G) – 5000/month
    4. Mirae Asset India Opportunities Fund-Reg(G) – 5000/month
    5. HDFC Mid-Cap Opportunities Fund(G) – 5000/month
    6. ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 5000/month

    Thanks,
    Pat

    1. Pat-HDFC Equity (Large and Mid Cap), L&T Equity (Large Cap), IDFC Premier Equity (Mid and Small), Mirae Asset India Opp (Large Cap), HDFC Mid Cap (Mid and Small) and ICICI Pru Focussed Bluechip (Large Cap). So now see there three large cap and two mid cap funds. Hence retain any one from each category and continue.

  215. please advise about my mutual fund investment that is via SIP as follow.

    RELIANCE REGULAR SAVING FUND-BALANCE PLAN-GROWTH (10 K)

    HDFC EQUITY FUND GROWTH (15 K)

    HDFC PRUDENCE FUND GROWTH (15 K)

    HDFC TOP 200 FUND (10 K)

    BIRALA SUNLIFE FRONT LINE EQUITY FUND PLAN-A GROWTH (10 K)

    IDFC PREMIER EQUITY FUND PLAN-A GROWTH (15 K)

    L&T EQUITY FUND (G) (10 K)

    Pl advise for my portfolio and investment.
    1) I am not in need of this money for next 10 years.
    2) apart of this, I am financially ok and can take risk and wait if market is bad for few months as well
    3) I am planning to increase my monthly SIP from 85 to additional 75K, please advise about the funds to be added.
    4) I have received advise to add mid and small cap, what is your advise.

    1. Kinmar-Reliance Regular Savings Fund-Is it Debt or Equity? If it is equity then it is multi cap otherwise it is typical debt income fund. HDFC Equity and Top 200 continue. But I don’t think you can add value by Birla fund as it is again a large and mid cap fund. IDFC and L&T can be continued. You can continue in same funds as they are well performing funds.

  216. Hi Basu,
    Im 29 yr old doc. So almost a novice in managing my personal finances.
    I currently have around 2lacs in my hand.

    I am planning to send 1 lac into the PPF account i already have.
    And after reading all the questions above, i thnk, i can dare to invest 7-10K per mnth.
    Planning 2k into HDFC prudence fund
    1k in gold fund.
    Rest i am not sure yet.

    Wanted to ask u one thing.
    If the 5 yr returns of small cap are less c/t a large or mid cap, is it worth investing in them at all just for the sake of diversification. Why not stay with the fund class that give maximum returns.

  217. Hi Basu,

    currently I am investing around 12500Rs/Month in multiple MF

    HDFC Prudence –2000 Rs/Month( 4 year old)
    HDFC Top 200 Fund –1500Rs/Month(4 year old)
    ICICI Prudential Tax Plan –3000 Rs/Month(2 year old)
    IDFC Premier Equity Fund — 3000Rs/Month (2 year old)
    RELIANCE GOLD SAVINGS FUND -3000Rs/Month(2 year old)

    Now i would like invest around 5000Rs/Month in new MF so could you please suggest that which MF would be best .My time horizon is around 10 year

    also in above current portfolio do i need some change or still it is ok

    Regards,
    Shri

    1. Shri-Reduce your investment from Reliance Gold (maximum around 10% of your overall investment, not more than that). Large and Mid Cap fund is missing. So choose a fund from above category and start investing. Also diversify your further investment of Rs.5,000 among the same existing funds (except gold fund). I am not sure about tax fund…so unable to comment. Rest are good and you can continue.

      1. Thanks Basu for your valuable reply..

        so I am going to split our 5000rs/Month MF investment in below

        1)Birla sunlife top 100 —-2000rs/month
        2)Franklin India smaller company fund–2000rs/month
        3)SBI magnum midcap fund–1000rs/Month

        and existing gold saving is 3000rs/month and will reduce soon by 1500rs/Month

        please suggest is it ok because i have already below fund

        HDFC Prudence –2000 Rs/Month( 4 year old)
        HDFC Top 200 Fund –1500Rs/Month(4 year old)
        ICICI Prudential Tax Plan –3000 Rs/Month(2 year old)
        IDFC Premier Equity Fund — 3000Rs/Month (2 year old)
        RELIANCE GOLD SAVINGS FUND -3000Rs/Month(2 year old)

        Regards,
        Shri

  218. Hi Basavaraj,
    I already invested a total of 5000 on some MF’s(
    HDFC Top 200 Fund – Growth – large cap category – Expense ratio – 2.13 – 1000 rs
    ICICI Prudential Dynamic Plan – Regular Plan – Growth Expense ratio – 2.23 – 1000 rs
    ICICI Prudential Infrastructure Fund – Regular Plan – Growth Expense ratio – 2.33 – 2000 rs
    Tata Ethical Fund – Appreciation Expense ratio – 2.97 – 1000 rs )

    thru FundsIndia.com and want to invest another 5000 on the funds you mentioned above..But not sure whether to go thru CAMS with DIRECT funds or go thru with Fundsindia.com itself.
    In some place I read the if we are going thru these websites we will be losing for 47% in the long run….I want to know how much exactly we will be losing as commission to FUNDSINDIA.COM if I go on with my investment for some 10 Years for 10000 rs monthly.. And will there be expense ratio commission if we go thru DIRECT funds also……….Any input is appreciated…

    Regards,
    Praveen M.R.

    1. Praveen-Rest are good but I am bit skeptical with Tata Fund. Why can’t you switch to Reliance Regular Savings (my above recommendation)? You can select the same funds for your future investment. But going direct is advisable in long run. But how much beneficial (whether it is 47% or 80%) depends on how long you stay in that fund. So I can’t say exact % on that. But it is sure that it is beneficial if you are ready to manage your funds on your own.

  219. Dear Basavaraj,
    I used to follow your blog from quite long time. Also, I am investing in market from 3 years and I will continue at least till 2019. I have couple of questions, could you please guide me and clarify me.

    1. what is problem of having two mutual funds from each/any category i.e. i had HDFC Top200 and now I started ICICI Pru. focus bluechip?
    Usually MF advisor dont advice it.

    2. I am investing 11K every month on MF, but sometimes i get some extra money, can you please let me know which is best MF or way for one time investment (i don’t mind about time frame, i can wait even 10 years or more but return should be good 🙂 )

    Thanks
    Raj

    1. Raj-1) It is like investing Rs.10,000 in Infosys from one demat account and another Rs.10,000 from another demat account in same Infosys. After this believing that your investments are diversified. It is not like that. That is the reason choosing same category will not diversify your investment. Hence such advice.
      2) Why to choose another fund for lump sum? Invest in the same funds of what you are investing. You can create a best portfolio with 5-6 funds. No need to add on funds.

      1. Dear Basavaraj,

        Thanks a lot for quick reply.

        Yes, I think my portfolio is diversified ( the SIPs are, i have HDFC top 200 – 2K, ICICI Pru focus bluechip -3K, ICICI Discovery – 2K, IDFC premier equity – 2K and HDFC Prudence (balanced fune) – 2K )

        Bue, about my second questions, I get sometime extra money( i.e. its after my sal and amount range from 4K to 7K but not in every month ) , As you are advising me to put those in any of the above fund. Yes I am happy with your suggestion but could you please suggest me which fund from above i should prefer to put extra money from the above funds.

        FYI, here my aim is when I get extra money i will invest else my as usual SIP will keep continue.

        Again thanks for your kind suggestions.

        Thanks
        Raj

      2. Basu:- If so than why all large cap MF are giving different return..???
        Going with your logic it should be same for all large cap MF..!!!

        what’s your comment..?

        1. Mukesh-It depends on fund manager performance, asset he is handling, expense ratio of fund and many more things. But while investing we must see that how fund performed since long and each category of funds almost always replicate the same underlying portfolio.

  220. Dear Basu,

    My Portfolio in MF is

    Franklin India Flexi Cap Gr – Rs. 500 SIP
    Reliance Eq. Opp. Fund Gr – Rs. 1000 SIP
    ICICI Prud. Tax Saving Fund Gr. – Rs. 1000 SIP …………….. All funds are choosed for Long Term investment

    please suggest Mid Cap fund for short term profit & Tax saving point of view.

    with Regards
    Mahesh

    1. Mahesh-Franklin India Flexi cap-Large and Mid Cap-Not a right choice. Move to above said same fund category. Reliance Equity Opp Fund-Small and Mid Cap-Continue and ICICI Pru Tax Saving-Continue.

  221. Hello Basavaraj,

    Good Blog, so much information and knowledge is been shared, really appreciated.

    Sir, me and my friend are planning to start invest in Saving and we choose a platform Mutual Funds.

    We have no knowledge and activating our MF a/c associated to our company salary account as this will be free of cost from HDFC Back for salaried employees.

    We do not have lump sum amount but rather planning to invest Rs 500/1000 PM on one particular fund or 500 each fund.

    We are planning to invest for 5 years, please suggest some good funds to invest considering next years.

    Thanks,
    Sharan.

    1. Sharan-Good to know that you planned. But first understand the meaning of saving and investing. You are planning for investing by setting aside or saving of Rs.1,000 from your salary. So saving is setting aside and investing is when you put that amount into any product where you earn something.
      If your time frame is around 5 years then don’t enter into equity. Instead go with RDs or FDs.

  222. Hi Basavaraj,
    Good Afternoon. What do you think of BNP Paribas Mid Cap Fund – Growth FUND…It is worth to have in porfolio.

    Thanks & Regards,
    Praveen M.R.

    1. HI ,
      I want to start SIP so for which mutual fund i should go,
      i have Little bit of know how about mutual funds you can say i am a fresher and i want to start with small investment.

  223. Hi,

    I am new to mutual funds. I have invested in LIC policy and Recurring deposits/FDs of banks. Could you please guide me to invest in SIPs. Should i go for STP and set up an monthly SIP. Please guide in selecting the funds. I do not have any immediate short term goals.

    Thanks,
    Samidha

      1. Hi,

        I don’t have any knowledge of both just read some articles about SIP and STP. For me short term is 5 years or less.

        Thanks,
        Samidha.

        1. Samidha-First read the difference. SIP-Systematic Investment Plan-means you are investing equal sum in equal interval. Any investment which follows this type of investment is called SIP. So whether it is in equity mutual fund, PPF, RD or any product, you can use SIP. STP-Systematic Transfer Plan-When you have large cash then you can put it into some debt or liquid fund and give request to transfer equal sum in equal period from that fund to another fund. So both are meant for different need.
          It is good that you understood the concept of long term and short term. But in my view keep another +2 years addition to 5 years for considering and arriving at goal tenure. Now for your investment, you can choose a fund from above list of each category and start investing.

  224. My mutual portfolio is
    1. Reliance Regular Savings Fund-Equity Plan- Growth: Rs 1000
    2. HDFC Top 200 Fund Growth plan: Rs. 2000
    3. ICICI Prudential Discovery Fund- Growth: Rs. 1000
    4. Birla Top 100 Growth: Rs. 1000

    Pls suggest if any changes required in my portfolio

  225. HI Basu,

    Thanks for the information. I have started a Smart ULIP from SBI on Jan 2010 and I have paid 5000/- per month for next three years. After that, I let the money to grow but no additional payment done. Now, the value is around 2,00,000. Meanwhile, I am paying around 11000 per month for my car loan as EMI. Is it a wise idea to use this money to pre-pay the loan? Or, should I park this money in a better instrument ( i need capital protection, and moderate return) ?

    1. Bala-Check the difference like how much you earned from ULIP since 2010 to today and how much interest you are paying for car loan. Definitely car loan interest will be higher. So if there are no surrender charges then go ahead and pay your debt. Always do remember that debt is bad to one’s financial health. So first finish it off.

  226. Hi Basu

    Thanks for your excellent article. Couple of questions:

    1. Can i replace ICICI pru focused blue chip with ICICI pru top 100? While both are large caps, ICICI pru top 100 is a more diversified fund compared to ICICI pru focused blue chip. So isnt ICICI pru top 100 a better choice?

    2. Can i replace IDFC premier equity regular from the mid cap to Franklin India smaller companies fund or Mirae emerging blue chip fund? Your advice is needed.

    Thanks!

    1. Vicky- 1) You can go, but look at expense ratio and ICICI Pru Bluechip is lesser and standard deviation of of ICICI Pru top 100 is bit high. But choice is your’s.
      2) Same comment to second point too.

  227. Hi Basu,

    1. I planning to invest in sip mutual fund monthly 2000 /Month for Atleast 5 years… What the mutual fund i can choose?
    2. And i have 25000 thousand in FD. Shall i invest that amount into Mutual fund for long term (20 Years).. May i know which one is the Best Mutual fund i can choose?

      1. Thanks for the quick reply basu.. Ok if i go for more than 10 to 15 years.. What would be the best one..?

        This one is in my mind — ICICI Pru Tax Plan Reg-G. Is this the good one..?

          1. I am paying early 10000 tax apart from my tax exception with my current salary.. So that i choose this Tax saving fund.. If i am worng please advise me right one.Thanks

              1. I am having insurance in LIC– 24000 /year and epf 25000 per year which is detecing in my company… Also i am Paying 4500 / year Health Insuarnce in DHFC ERGO.

                1. Karthikeyan-Whether life insurance is pure term or typical traditional plan? If it is traditional plan then to go for term insurance at the earliest. Now the question is for around Rs.51,000. First create your financial goals then if they are short term in nature then go for FDs (tax saving) otherwise you can go ahead with ELSS.

  228. Dear Basu sir,

    need your valuable guidance as I am 32 Year old and investing 5000 pm in below MF from 2012 onwards..

    HDFC MID-CAP OPPORTUNITIES FUND – GROWTH
    FRANKLIN INDIA TAXSHIELD – GROWTH
    ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – RETAIL – GROWTH
    RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH
    HDFC TAXSAVER – GROWTH

    Do you suggest me any changes in my current portfolio as mentioned above pls.

    Further, I want to invest further 7000-10000/- in mutual fund (need atleast 2 ELSS MF). I will prefer more return MF and take risk but dont want to go with Small Cap fund but good MID CAP MF is OK for me.

    pl. see below points as..

    I need 25Lc after 15 year for my Kid education.
    I need 40 Lc. after 25 year for my kid marriage and
    1 cr. after 30 yr for retirement.

    Could you pl. suggest me good mutual fund considering above points and do i need to increase more investment for above goal..?

    Thanx for expert opinion in advance

    Best regards,
    Ashutosh

    1. Ashutosh-Why two mid cap funds (HDFC and Reliance)? Retain anyone. Also do you feel two tax saving funds necessary? Select Large and Mid Cap (which is missing and continue the investment, even for fresh too).
      Is the target amounts are in today’s value or future value?

      1. Thanx Basu for your reply.

        1. I selected 2 MID cap due to more return but Ok to exit from Reliance since it is giving less return as compare to HDFC as suggested.
        2. Selected ELSS to take care of Tax part (80C)
        3. Kindly suggest good Large & Mid cap fund
        4. Target amount is future value.

        Regards,
        Ashutosh

  229. Dear Sir,

    I have started investing 4000/month in MF through SIP for at least 10 to 15 years’ time frame. Please find my portfolio below:

    (1) ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth (1000 per month) – Started from last 2 months

    (2) IDFC Sterling Equity Fund – Regular Plan – Growth (1000 per month) : From last 3 years-35 months

    (3) HDFC Mid-cap Opportunities Fund- Growth(1000 per month) :From last 16 months

    (4) CICI Prudential Balanced Advantage Fund – Regular Plan – Growth : Started from last 2 months

    Should I make any changes in the current portfolio of mine?
    Also I wanted to invest 3000 rs more in SIP per month. Please suggest me some good funds?

    Thanks,
    Abhishek.

      1. Sir,Thanks!! for your reply..

        IDFC is currently showing good return almost (45K)… I need to move out from this fund or can I continue for 5-10 years. If I need to move then in which fund I need to invest?
        Please let me know.

        Thanks,
        Abhishek.

          1. Sir, You mean I put all IDFC money into HDFC Mid-cap Opportunities Fund- Growth and close IDFC SIP?

  230. Hi, I read your article on PPF. Just want to know that-

    -1. Once we are committed to pay say “x” amount, cant we change this amount next year?

    2. If someone wants to contribute more than 1 lakh per year, how much more can be invested?

    3. If there is a minor kid, can there be three PPF accounts (husband, wife and minor kid)?

    1. Rahul-1) You have flexibility to change at any point of time, even from next month either you can increase or decrease your contribution.
      2) You are not allowed to pay more than Rs.1,00,000 in a financial year. So forget about that.
      3) Yes you can have your own account, wife account and kid’s account (for this you or your wife can be guardian).

    2. As far as the rules go, everyone in your family can have their own PPF accounts but you still can’t contribute more than 1 Lac into all accounts combined. That means, say you contributed 50k to your account and 25k to your kid’s account, that leaves you with only 25k more to contribute to your wife’s account. You can’t contribute 100k to each account yourself to max out the limits. Be aware that if you have do so and the bank/post office becomes aware of this, you will lose all the interest that you have earned thus far. So in the end it could be disastrous for you.

  231. Dear Sir,

    I have started investing 4000/month in MF through SIP for at least 10 to 15 years’ time frame. Please find my portfolio below:

    (1) ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth (1000 per month) – Started from last 2 months

    (2) IDFC Sterling Equity Fund – Regular Plan – Growth (1000 per month) : From last 3 years-35 months

    (3) HDFC Mid-cap Opportunities Fund- Growth(1000 per month) :From last 16 months

    (4) CICI Prudential Balanced Advantage Fund – Regular Plan – Growth : Started from last 2 months

    Should I make any changes in the current portfolio of mine?
    Also I wanted to invest 3000 rs more in SIP per month. Please suggest me some good funds?

    Thanks,
    Abhishek.

  232. Dear Basu,

    I am 32 Year old and investing 5000 pm in below MF from 2012 onwards..

    HDFC MID-CAP OPPORTUNITIES FUND – GROWTH
    FRANKLIN INDIA TAXSHIELD – GROWTH
    ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – RETAIL – GROWTH
    RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH
    HDFC TAXSAVER – GROWTH

    Do you suggest me any changes in my current portfolio as mentioned above pls.

    Further, I want to invest further 7000-10000/- in mutual fund (need atleast 2 ELSS MF). I will prefer more return MF and take risk but dont want to go with Small Cap fund but good MID CAP MF is OK for me.

    pl. see below points as..

    I need 25Lc after 15 year for my Kid education.
    I need 40 Lc. after 25 year for my kid marriage and
    1 cr. after 30 yr for retirement.

    Could you pl. suggest me good mutual fund considering above points and do i need to increase more investment for above goal..?

    Thanx for expert opinion in advance

    Best regards,
    Ashutosh

  233. Hi Basu,

    It would be great if you can help me. Need your advice on below

    Current Portfolio:
    Axis Long term equity

    Reliance Pharma fund – SIP 2000

    ICICI Pru Discovery fund – SIP 2500

    Tata Ethical Fund – SIP 2000

    ICICI Gold Saving fund (SIP 5k paid for 18 mths – not redeemed as its in negative returns) – at present what should i do? this fund being down shall i top up now

    SBI Gold fund – (SIP of 1k paid for 12 months – not redeemed as its in negative returns) – at present what should i do? this fund being down shall i top up now

    RD of different banks – 6500 p.m.

    Q 1: Please advice on my current portfolio health,

    Q 2: Also I intend to add monthly 3000 more investment. Need your advice on the funds after looking at my current portfolio 🙂

    Q 3: At present will it be advisable to invest lumpsum in Sector funds like IT, Infrastructure & Pharma as they are available at affordable rate presently. With new government will these industries and there by funds outperform? If yes which are they??

    Thanks in advance.

    Regards,

    Komal Shah

    1. Komal-Reliance pharma-Continue.
      ICICI Pru Discover Fund-Small and Mid Cap-Continue.
      Tata Ethical Fund-Multi Cap-Fund is good but little expensive. But choice is your’s.
      Why two Gold Funds? Restrict your investment into Gold at around 10%. Not more than that.
      Going by your portfolio it seems that, eventhough you are investing but there is no linkage of goals to any investments. Hence goal based investment is good rather than investing irregularly. I am not aware about reasons of investing in RD. So can’t comment on that.
      Currently large cap and large and mid cap funds are missing in your portfolio. So select a fund from each category from above list and start investing for your fresh investment. You are already exposed toward pharma through Reliance pharma. So what is the reason to over expose to any specific sector? Let your investments be diversified instead of stagnant in any one particular sector. Hope I resolved your doubts.

      1. Thanks for your valuable feedback Basu.

        Reason for RD is nothing but safe investment so if you have any suggestion on changing the route then please let me know.

        SIP in Both Gold funds i have stopped but not redeemed being in negative. So Q is should i top up at current market to get the average or just wait for it to coverup.

        Agreed on Pharma fund as i am doing SIP anyways but what about Tech & Infrastructure fund Basu. Is it advisable to enter it now??

        1. Komal-Link your financial goals to each investments, whether it is RD or Mutual Fund. Then you are in a position to analyse the product and decide whether to go or not. As I said earlier, restrict your gold investment to less than 10% of overall portfolio. If you want to invest more then use the route of SIP. Regarding tech and pharma I am bit skeptical as in near future all are predicting strengthening of rupee. So instead of exposing to one stock select a fund then invest.

          1. Thanks a ton Basu.
            Let me know your contact number where i can connect to you for your services. (i checked ‘contact us’ page and no number has been provided). Fyi i am from Mumbai. Hope your services are PAN India level 🙂

  234. Hello Basu,

    I would need your advice on addition of Mutual funds to my portfolio.

    Requirement is of 25 lacs for my kid’s education. This is needed after 18 years.
    Requirement is of 1 crore for retirement. This is needed after 25 years.

    From January 2014, I have started investing in the following funds:
    ICICI Focused Bluechip Direct: 2000
    ICICI Dynamic Fund Direct: 2000

    To reach to such huge corpus, I need to invest more. At this point, I can invest another 4500 rs. and hence would need your advice on the following MFs:
    HDFC Child Care- Investment: 1000
    UTI CCP Balanced: 1000
    IDFC Premier Equity: 1000
    PPF: 18000 per year
    Please suggest any alternatives as you deem fit, in case these are not the funds as per requirement. Also, if possible, can you please let me know how much extra I need to invest to reach my targets.
    Thank you so much for your articles. Infact, following your advice, I have taken term insurance from MaxLife.

    Many thanks in advance,
    AJ

    1. AJ-Considering the value you mentioned are future target amount, you need to invest Rs.4,162 (Tenure-18 yrs, return on investment-10% and target amount Rs.25 Lakh) for first goal and Rs.7,536 (Tenure-25 Yrs, return on investment-10% and target amount Rs.1 Cr). But do understand that the value you mentioned as target amount may feel you great. But when you approach towards goal then you may require more due to inflation. So think and decide. Coming back to fund selection, below are my suggestions.
      1) PPF-20% of investable amount.
      2) ICICI Focused Bluechip
      3) ICICI Dynamic Fund
      4) IDFC Premier Equity
      5) Reliance Equity Opp Fund.
      Why you need balanced fund when part of the investable amount is already going towards debt product (PPF)?

      1. Hi Basu ;

        I need your help to choose right mutual fund (SIP) to invest .
        My target is after 25 years i need aleast 1 Cr.

        Right now I am having
        1) HDFC Top 200 fund – 1000 rs
        2) DSP BlackRock Top 100 Equity Fund-1000 rs
        3)Franklin India Bluechip Fund-1000 rs

        Is the Mutual fund selection is right ?

        Now i want to invest 2000 rs more so let me know which fund will
        give good returns . I have 3 funds in my mind . U can suggest other mutal funds also.

        1) IDFC Premier Equity Fund-Regular Plan-Growth
        2)HDFC MID-CAP OPPORTUNITIES FUND – Growth Option
        3) SBI magnum

        Regards
        Nilesh Salunkhe

      2. Many thanks Basu for your reply!

        The reason I was considering the Balanced Funds and CCP, is because:to be on the safer side on the investments. Also, some one suggested me to put some money into these funds. Though I was a bit skeptical on the investment, hence thought of getting your advice on these funds. Also, one more reason was that these funds might give me ~10% return in the long term, which is anyways better than PPF (8.7%). Please comment!

        Thanks,
        AJ

  235. Hello Basu,

    Hope you are doing great.

    I have some holdings in below funds

    1. BSF 95 Series Regular Plan
    2. Birla Sunlife Frontline Equity.

    I have a couple of questions –
    1. Why should an investor park money in all the categories i.e. Small, Mid and Large Cap?
    2. I plan to start an SIP with 10K amount, can you please advise some suitable funds? ( Just an information that the above folio has given me good returns of around 11% p.a.)

    Thanks & Regards,
    Ankit.

    1. Ankit- My answers
      1) What is the purpose of diversification if you stick to any one category??
      2) Currently market is at all time high. So obviously all funds will good return. But select the fund which has given you the consistent return over long run.

  236. Hi Basu

    First i would like to thank you for the detailed explanation on the different funds and appreciate your efforts on the same. I am planning to invest Rs 5000 as SIP every month in the following MFs for a period of 15 years. I would like to know your feedback on the same:

    Large cap: ICICI prudential focused blue chip – Rs 2000
    Large & Mid cap: Quantum long term equity – Rs 2000
    Small & Mid cap: Mirae asset emerging blue chip fund – Rs 1000

    Thanks in advance!

      1. Thanks for your quick response. Any reason why you are against Mirae asset emerging blue chip fund? It ranks 1st in Crisil as well among others.

          1. The expense ratio is 2.7, a bit higher than IDFC. Also its a new fund, been there for 3-4 years i believe. Having said that, as per CRISIL and other forums, Mirae is better placed than IDFC. That is why i wondered.

  237. Hi Basvaraj,

    What is the investment stratgey Post-elections? With markest up and high, which all MFs shall we buy? As explained by you in the post above, shall I start SIP on these only?

    Thanks,
    Rohit

  238. Hi Basu,

    Great article. Thanks a lot for this. I had started investing in MFs in 2005 and since then I have not looked at my portfolio. I am now looking to re-analyse my portfolio. Can you please suggest changes to it?

    DSP BR India TIGER Fund – Thematic invested since 2008
    DSP BR Opportunities – Diversified Equity invested since 2005
    Franklin India Flexicap Growth -Diversified Equity invested since 2006
    HDFC Capital Builder – Diversified Equity invested since 2005
    HDFC Top 200 – Large Cap invested since 2011
    ICICI Pru Discovery Fund – Small & Midcap Equity invested since 2006
    Reliance Vision – Diversified Equity since 2008

    I need your suggestion on –

    a) selling any MFs
    b) topping up existing MFs
    c) buying a new balanced MF

    Thanks a lot!

    1. ic005322-My suggestions are as below.

      1) DSPBR India TIGER Fund-Infra fund-Come out of it.
      2) DSPBR Opportunities Fund-Large and Mid Cap-Move to UTI Opportunities Fund.
      3) Franklin India Flexicap Fund-Large and Mid Cap-Follow what I said in point number 2.
      4) HDFC Capital Builder Fund-Large and Mid Cap-Come out of this. Because one large and mid cap is enough.
      5) HDFC Top 200-Large Cap-Continue.
      6) ICICI Pru Discovery Fund-Large Cap-Continue.
      7) Reliance Vision Fund-Multi Cap-Switch to Reliance Regular Savings.

      1. Thanks Basu. Should I top up any of these like ICICI Pru Discovery Fund which is doing well?

        Also, please suggest 1 balanced fund and 1 -small/midcap fund?

        Regards,

  239. Great Artcile Basu! Thanks for sharing the information.
    I am new in SIP and don’t know much about it but want to invest some small amount in every month.

    I can invest 7000 per month for now. I can invest for 15-18 years.

    It’ll be grate if you suggest some funds (Large, Mid and Small cap).

    Thanks in advance.

  240. dear basavraj
    Hay my name is fazal, working in gulf.
    Impressed with ur ideas here. Kindly help me as well.

    I wish to invest in mutual funds in SIP. I do have some investment in equity. But it will be first time with mutual funds. My intention is to accumulate funds for my daughter’s education. I have 7 yrs time. I can manage around 25k every month. I use IIFL for my shares. I wish to use ICICI direct now.

    Kindly advice on both issues pls.

  241. Hi basu,

    I have 1 lakh rupees in savings account, want to invest in mf systematically over a period of 12 to 18 months thru SIPs.
    I came to know that it is a option of putting lump sum amount in one of the debt schemes and use STP mechanism to shift to equity. can you please guide me two/three debt schemes and as well as equity MFs to participate in above said STP.

    The below are my existing SIP MFs investments

    HDFC TOP 200 (1000)
    ICICI Prudential Focussed Blue Chip (1000)
    UTI Opportunities (1500)

    Thanks

    1. Nagaraju-Use the existing funds for your Rs.1 lakh further investment by STP mode. You need to park your fund in respective mutual fund company’s liquid fund. From there you can give instruction for STP. I don’t think are many liquid funds in each fund company. So choose the available liquid funds and start investing.

      1. Thanks Basu..

        In Mid and Small Cap Equity Funds category, when I verify the returns over 6months/1year/3year/5years
        ICICI prudential value discovery fund and HDFC mid cap opportunities delivered good returns when compared to that of IDFC Premier Equity Fund -Regular. Please help me to know the reason and criteria of choosing IDFC premier Equity Regular Fund in your mid and small cap list. Is it because of less expense ratio??

        I am in learning phase..please advise

        Thanks….

  242. Hi Basu

    Thank you for your informative blog. It makes life of layman like us much easier.

    I am investing SIP in following funds, all Growth options. I am 41 and investing with an aim to create retirement corpus.

    DSP BlackRock TOP 100
    HDFC Prudence
    Reliance Regular Savings
    ICICI Pru Discovery

    I saw that DSP Top 100 ratings in Value research to 2 star ratings. Should I continue with this fund on long term perspectie or change to Either Franklin Blue Chip OR ICICI Pru Focused please?

    Thanks & Regards

    Vikas

      1. Thank you so much.

        Though I will start new SIP with ICICI Pru Focussed, I have to redeem DSP Top 100 gradually and shift to ICICI pru focus accordingly right ? Do not think there is another choice as they are different fund houses and cannot switch i guess.

        Regards

        Vikas

        1. Vikas-You can’t switch. Market is at it’s peak. So instead of investing whole redeemed amount at once ICICI, I suggest you to put the amount in ICICI liquid fund and from there give instruction to switch to ICICI Focussed Bluechip. Also start a fresh SIP for further investment. If you do in this way then the risk of investing lump sum will be averted.

          1. Dear Basu

            Sorry to be pain.

            But I am trying to do something more simpler. With my limited knowledge, I think any mutual funds other than equity will invite tax if redeem or switch within one year. So for example if my investments in DSP Top 100 has completed 1 year, then redemption or switch will invite only LTCG which is Nil at present. More than paying the small tax amount, keeping track of it and showing it correctly in returns is highly complicated for me.

            So what I have been generally doing so far is to invest in X Fund and wait for at least one year before reviewing it and then deciding if i need to change to another fund. If it is within the same fund house even better then only i need to switch it gradually and one fine day the entire fund will be in the new scheme of the same fund house.

            But in this case, it is a different fund house. So I have about 45K in DSP top 100. So what I am planning to do is to withdraw say 5000 at a time on specific date of a month regardless of market situation and immediately transfer that to the new scheme ie ICICI focussed. By the time i reach the last 5000, it would have completed 1 year in older scheme and hence no complications. Then of course, on parallel grounds, i will start new SIP in ICICI focussed. So my new investment and old investment in old scheme will meet in one basket one day.

            Hope this makes sense. Sorry if I am messing around, do not know how to explain better.:-)

            Regards

            Vikas

  243. Dear sir,

    KINDLY ANALYSE MY PORTFOLIO

    ICICI PRU FOCUSSED BLUECHIP EQUITY-2000
    HDFC PRUDENCE-1000
    HDFC TOP 200-1000
    RELIANCE EQUITY OPPORTUNITY FUND-1000
    SBI EMERGING BUSINESS FUND-1000
    SBI MAGNUM GLOBAL FUND-1000

    MY INVESTMENT HORIZON IS 15-20 YEARS AND WANT TO ACCUMULATE 50 LACS.

    KINDLY GIVE YOUR VALUABLE ADVICE ON MY PORTFOLIO

    1. Arun-Why two mid and small cap funds (both SBI)? Retain anyone and rest looks good for me. But if we consider time frame of 15 years, return on investment around 10% and monthly SIP Rs.7,000 then accumulation will be Rs.29,01,292. So shortfall of around Rs.21 Lakh. Either increase your investment in future or postpone your target to 20 years (After 20 years for SIP of Rs.7,000 and return 10% means accumulation will be Rs.53,15,581).

          1. sir, now I plan to invest Rs.3000 more from next month.Would I invest in the above funds or I start new Sips..if new funds,kindly suggest the funds..

  244. Dear Sir,

    Thank you for this valuable information ,I am a NRI and with agents and bank pushing me with various SIP’s I have a mix sabji of investments .

    I now want to discipline my self and re arrange my investments to give best results.
    I invest 25K per month spread across the below SIP’s, planning to increase to 30K from next month

    I am investing for long term needs and this funds are for my retirement with a target of 1.5 Crores
    I want to avoid capital gain tax .

    Following is my investments in SIP’s

    Birla Sun Life Frontline Equity Fund – Growth — Since 2009, Amt Invested so far 67K, gain 12.21%

    Tata Infrastructure Fund Plan A – Growth — since 2008, Amt invested so far 98K, gain 4.86%

    Birla Life Midcap Growth Regular Plan – since 2009, Amount invested so far 87K, gain 12.53%

    Birla Sun Life Monthly Income – Growth-Regular Plan — since 2013, Amount Invested so far 21K, gain 9%

    HDFC Top 200 Fund – Growth – since 2009, Amounted invested so far 116K, Gain 14.55%

    HDFC Equity Fund – Growth –since 2013, Amounted invested so far 46K, Gain 35.38%

    Reliance Diversified Power Sector Fund – Growth Plan – Growth Option –since 2008, Amounted invested so far 136K, Gain 1%

    Reliance Regular Savings Fund – Equity Plan – Growth Plan – Growth Option — since 2008, Amount invested so far 42K, Gain 16%

    Reliance Gold Savings Fund – Growth Plan Growth Option — since 2013, Amount invested so far 26K, gain 3.68%

    UTI-OPPORTUNITIES FUND – GROWTH — since 2013, Amount invested so far 44K, gain 20.37%

    please suggest how to re arrange to get better returns

    Jerry

    1. Jerry-1) Birla Sun Life Frontline Equity Fund-Large and Mid Cap-Continue
      2) Tata Infra Fund-Discontinue immediately.
      3) Birla Sunlife Mid Cap Fund-Move to any one fund of above said mid cap fund.
      4) Birla Sunlife Money Income Plan-What is the reason for investing in this fund?
      5) HDFC Top 200 Fund-Continue
      6) Reliance Diversified Power Sector-Come out immediately.
      7) Reliance Regular Savings-Continue
      8) Reliance Gold-No need if you need then restrict to around less than 10% or possible try to invest in ETF.
      9) UTI Opportunities Fund-Large and Mid Cap-Continue.
      Large Cap is missing. Hence select a fund from above large cap fund of my choice and start ivnesting.

      1. Thanks for your advice,
        I dont have good knowledge of investments, when I go to India, Banks, Agents who are friends etc. convinced me, today I have all such funds. Birla Sunlife Money Income Plan, Reliance Diversified Power Sector is a reason of such.

        One final question I have.
        after following your advice and switching to the funds suggested by you.
        I will stay in it for say 8 to10 years. after that period when I exit will I be taxed (Capital Gain tax)

      2. I am investing in all the funds from my NRE account .. upon exiting these SIP funds can I transfer these returns back in my NRE account … or will it go to normal savings accounts and I will be liable for income tax or TDS if I invest in FD’s

          1. Case 1 : NRE at time of withdrawal : My plan is to be NRE for 8 – 10 Years and will exit the SIPS transfer the returns to my NRE and come to India for good

            Case 2 : Resident at time of Withdrawal : if I loose my job before this period say 3 years and have to come over to India and start work I will continue in SIP in order to achieve my goal and exit the funds in 10 Years and divert the funds in Fd’s,

            My current age is 35

  245. Hi Sir,

    Thanks for your valuable information.

    I didn’t get the market risk means what money I invested. Its goes to zero. Please write something on risk with some example.

    Thanks

      1. Hi Sir,

        I am 25 year, I need your help in setting my financial goal. I have two goal
        1) For 25 year- I want to invest 2000/-
        2) 15-20 year- I want to invest 5000/-

        Can you help me to make my portfolio. Please also suggest amount if it is not proper, because someone say that in MF we also investment proper amount as something compound.

        Thanks

        1. Anshu-When you said time frame then may I know what goals are they (I think it will not be problem for you in sharing the name of goal)? Also what is your target amount? I am unable to understand what you are pointing to say by the line “Please also suggest amount if it is not proper, because someone say that in MF we also investment proper amount as something compound.” in a elaboration manner?

          1. Hi Sir,

            The goal are
            1) Retirement – 25 year – 2000 per month – Target amount – 30 lac.
            2) Children Education – 15-20 year – 5000 per month – Target amount – 40 -50 lac.

            I am right now 25 year, I am going to invest for long term.

            Thanks

            1. Anshu-
              1) Going by your target and monthly investable amount, if the product generates around 10.71% return then you can easily achieve this. Select a large cap fund from above list for this. But do you think Rs.30 lakhs after 25 years is suffice for your retirement? If we bring it to current value with inflation of around 6% then that Rs.30 lakh in today’s term will be just Rs.6,98,000. For how many years you survive from this Rs. 6 lakh if you get it now and thinking that you are into retirement life?
              2) Coming back to second goal, if we consider time frame of 15 years, investable amount Rs.5,000 and target amount Rs.40 lakh then return on investment must be around 17%. But when we consider equity return then the ideal consideration will be around 10% to 12%. So to achieve this goal either you need to increase your investment or reduce the target amount. Because you can reduce the time frame of this goal. Hence think and decide. For this, you can select a Large and Mid Cap fund and along with Mid and Small Cap fund from above list.

              1. Thanks for valuable information.

                To achieve goal two, 5000/- for 20 year. I selected these MF

                UTI Opportunties- 1000/- – L&M Cap Fund
                IDFC Premier Equity- 1000/- M&S Cap Fund
                Canara Robeco Equity Tax saver (G) – 1000/-

                Should I increase the amount on each mutual fund or I add some more MF to my portfolio.

                Thanks & Regards,

                  1. Thanks for helping me.

                    I am using FundIndia to invest in mutual fund. Will they provide the document of these mutual fund. For such a long time people are investing, so I am worry about.

                    Thanks & Regards,

  246. Hi Sir,

    Thanks for the previous Info given!

    As per your blog, I have started SIPs and few already running SIPs as below:
    1. UTI Opportunties- 1000/-
    2. HDFC Balanced- 1000/-
    3. IDFC Premier Equity- 2000/-
    4. ICICI Pru Focused Bluechip- 1000/-
    5. SBI Emerging Business- 1000/-

    I was thinking to invest in Franklin Smaller Companies Fund of say 500 to 1000/-. Please advise.

    Kindly, correct my portfolio if you feel it is not ok. Please advise.

      1. What I was thinking is it is performing well currently, I do agree the similar category (Small and MidCap) I already have the fund and I do have 1000/- spare to invest per month.

        Kindly advise on my portfolio as well, do you think it is correct?

        1. Rohit-Fund may be performing well currently. But it will not add value to your diversification. Hence suggestion is to select a fund from each category and start investing. Instead don’t be in a drive to adding funds for each new investment.

          1. Hmm.. Right…. Thanks Sir, I got it.

            Kindly, atleast tell on my portfolio. I am waiting for your words on it??

  247. Hi BasuNivesh

    I have few queries where I need your suggestion. I have liquid of Rs500000 which I would like to invest in combination of equity, debt funds for period of 5 years. I am currently 44 years. would like to have your suggestion on composition of the funds choice of 50%-50% in the equity, debt combinations. please suggest any better combination, by not restricting to 50/50.
    thanks & regards
    raghav

      1. thank you basu.
        I was opting for BIrla sunlife medium term plan – debt fund of 1 lkah
        ICICI pru balanced advantage fund with some exposure to equity – 1 lakh
        and rest FD
        request to comment.

        thanks & regards, raghav

  248. Hello Basuvinesh,

    Hope you are doing good.

    Today I went to ICICI bank to Invest in PPF, but the Bank Manager has suggested me to go for Systematic Investment Plan, which would be good and having better returns in the long term. Is it good to take this? Would there be any risk? Or Shall I go with the PPF only. Please advice.

    Regards,
    Sridhar K

    1. Sridhar-PPF or Equity (SIP I understood as equity mutual fund investment) is depends on lot of things like your current investment, your risk taking ability, future goals and time frame of the same. So without knowing all these how can I say? But if you have long term view (as you said went Bank to open PPF) then park around 70% into equity SIP and rest 30% in debt products like PPF.

  249. Hi Basavaraj,

    I have been investing an amount of Rs.1000/- per month each by way of SIP in the following funds
    (i) Franklin India High Growth Companies Fund – Growth – 2 years
    (ii) HDFC Mid-Cap Opportunities Fund – Growth – 2 years
    (iii) Reliance Growth – Growth – 3 years
    (iv) Reliance Vision – Growth – 3years
    (v) SBI Magnum Global Fund 94 – Growth – 6 years

    Can you please suggest if my portfolio is good enough for long term investment horizon of 15-20 years.

    Further, I want to add additional funds in my portfolio (Rs 1000/- in five funds, i.e. total Rs 5000/- per month) to take care of my retirement life and my child education/marriage? I am now 35 years and my son is 2 years old. I am in 30% tax bracket. Apart from this, I have PPF investment of Rs 100000/- per annum. Appreciate your view and advice.

    Best Regards,
    Deep

    1. Deep-1) Franklin India High Growth Companies Fund (Mid and Small Cap)-Move to IDFC Premier Equity.
      2) HDFC Mid Cap Opportunities Fund (Small and Mid Cap)-Why one more Small and Mid Cap?
      3) Reliance Growth (Multi Cap)-Come out of this fund to Reliance Regular Savings.
      4) Reliance Vision (Multi Cap)-One more Multi Cap Fund??
      5) SBI Magnum Global Fund 94 (Small and Mid Cap)-Stuck again with same category?
      This time add missing categories like Large Cap and Large and Mid Cap from above list for your further investment. Don’t be in a fund adding spree. Instead choose a fund from each category and start investing. Adding more funds will harm your investment.

      1. Dear Sir,

        Thanks a lot for your valuable suggestions…should I stop investing in SBI Magnum Global Fund and HDFC Mid Cap Opportunities Fund? Kindly suggest alternative options? Also request you to suggest alternative for Reliance Vision Fund?

        Best Regards,
        Deep

        1. Deep-I already said no need to have too many funds of same category. So no need to invest in SBI or HDFC funds you mentioned. Instead retain one fund from each category. That is enough.

  250. Great Artcile Basu! Thanks for sharing the information.
    I have been investing in HDFC children’s gift fund- Investment option for last 3 years or so (3K/PM). My understaning is, this fund is doing well.
    I would like to hear your thoughts. Whether to continue it or switch to another plan.
    Thnaks.

    1. Anmol-It is typical equity oriented balanced fund. It may be currently doing good but why can’t you switch to HDFC Balanced Fund which have less expense ratio than this fund (2.58 vs 2.30).

  251. Hi Basu,

    Interesting article. Can you help me with your views on this? I am looking at moving away from “SBI Emerging Business Fund – Growth”, which does not seem very attractive at this time.

    Instead, I plan to move the above to either “SBI Magnum Midcap Fund (G)” or “Franklin India Smaller Companies – Growth”. The goal of this investment is to continue SIP for 5 years, to close my home loan. Which of these would you recommend or would you recommend any other funds.

    I also regularly invest in the following MF’s:
    – SBI DYNAMIC BOND FUND – GROWTH (Goal = Retirement)
    – ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND RETAIL GROWTH (Goal = Retirement)
    – UTI OPPORTUNITIES FUND GROWTH (Goal = Child Education)

    What do you think of the above?

    Thanks,
    snp

    1. snp-If your time frame is 5 years only (closure of home loan) then first come out of both the funds (SBI Magnum Mid Cap Fund and Franklin India Smaller Companies Fund). Because it is too short period and suggest you not to take any risk. Instead start investing in the products like RDs or Income Funds. Why bond fund for a retirement goal? I don’t think it is worth. Rest two funds are good and you can continue.

  252. Hi Sir

    I had one SIP for rs 1000/- which I stopped 6 months. Now, again I started the SIP of 1000/- for that same fund but it is creating new folio and adding the newly acquired units in the new folio.

    The fund is UTI Opportunities and is showing as two different folio’s of UTI opportunities 6000 and 1000 and not showing under one with total investment of 7000/-

    Can you help me, why is that so? and how can it show under one?

    1. Rohit-While investing second time if you selected the option of existing investor and provided the existing folio number then they might not have created two folios on your name. If you want to all investments within one folio number then move to all your investments to that folio.

  253. I am 25 year old female and I need to buy a house in 3-5 years. I have about 50000 per year to invest in ELSS. Since the time frame is small, I need a high return on investment at the same time save the tax. I am open for high risk. Please suggest an investment method. Also please suggest the steps to open an ELSS account.

  254. Hi,

    Can u please suggest me with good debt fund. I would like to get a house around 5-10 years time from now. Amount at present to invest 5000-7000 pm

    1. Ishmavel-Go for Biral Sunlife Dynamic Bond Fund (Income Fund) for around 65% and rest 35% invest in HDFC Balanced Fund (Hybrid with Equity Oriented). But do remember that there will be exit load of 0.5% in Birla Sunlife Dynamic Bond Fund if you exit within 180 days.

  255. Hi,

    I am 24 year old, I have to buy a house in 5-10 years, i started to invest in RD,Equities, and Elss and also planning to invest in some large cap and mid cap fund . please suggest me the funds.i would like to invest 5000 pm preferably SIP

    Thank u

  256. Hello Sir,

    I find this blog very informative and useful. Can you please suggest if my portfolio is good enough for long term investment horizon of 10-15 years. I have started a SIP on the following funds Rs.5000 each/month.

    HDFC Balanced ( Growth )
    HDFC Mid-cap Opportunities ( Growth )
    ICICI Pru Focused Bluechip Equity Reg ( Growth )
    ICICI Pru Value Discovery Reg ( Growth )
    UTI Opportunities ( Growth ).

    Should I add any fund more or change anyone of them ? Appreciate your review and advise.

  257. Sir,
    iam 22 yrs old confused about investment should invest equity, MF ,FD, Private financial institutions,
    plz suggest the better 1 ……………………………………….

  258. Dear Basavaraj,

    I came across your blog yesterday and since then i am reading all your article one by one. They are very educative and written in a manner which keeps the reader interested.
    I need your suggestion regarding the following : I am planning to invest Rs 12,000 in mutual fund. Which is preferrable – SIP of Rs 1,000 per month or lump sum of Rs 12,000 ? . Since i am fresh into this market which mutual fund is better amongst the 10 you named?

    regards,
    Suresh

  259. hi, i m planning to invest in ITC around rs 15000 per month.. I believe FMCG cos have a great future over the next 20-25 years…
    my question is – Is it better to invest directly in ITC or instead buy a FMCG mutual fund like sbi fmcg which also invests in other FMCGs along with ITC?

    also I would like to invest 15000 pm in quantum long term mutual fund for a long long period. . Is it better to have only 1 large cap fund or should I split this rs 15000 into 2 or 3 other mutual funds ?

    thanks for your reply regarding the PPF topic 🙂

    1. Abhi-Investing in any one sector is dangerous. Instead my suggestion is to select 4-5 sectors which you feel will work wonders in future then based on that start investing. My question is, what will be your investment returns if ITC or say FMCG under performed on a particular year when exactly you need money? So better use diversification mantra rather exposing to any one sector.

  260. Dear Mr. Basavaraj,

    after your recommendations, i have invested in franklin India bluechip fund sip of Rs 2000/- per month. So, again I want your recommendation to Invest Rs 500/- per month for 10 years. So, pl suggest for the same.

  261. Sir,
    I was about to Invest in MF’s through Sharekhan Demat Account which I have. They have two options which is RTA (Registrar and Transfer Agent) and other is NSE/MFSS. I enquired from sharekhan and they said, if you invest thru NSE/MFSS option it would be demaaterised form and if when you want to redeem it would take T+1 day. And, it would take 15 days to redeem your MFs when you have RTA option choosen.

    I dont understand the complete difference. What I preceived is when we invest through RTA it is investing Directly in the MF company.

    I would like to seek your advise on two things:
    1. Need more details on these 2 options and is my understanding correct?
    2. Which is the better option?

    Also, like my friend invest direct in MF company and I Invest thru sharekhan, which is the more safest option?

    I believe, you need to write different blog for me on this confusion? 🙂

    1. Rohit-One is demat mode and another is normal investment. That is your option to keep your investment in demat format or in physical format. It is your wish to do so. But the real thing is, check out with Sharekhan for their charges on each new investment or SIP. If there is charge then you no need to invest using their platform. You can go with any brokers who not charge you upfront on your SIPs. While investing through brokers you can provide demat details which will automatically covert all your mutual fund investments into demat. Coming back to redemption issue, what they told about demat format is correct. But if your investment is in physical mode then it will not take any mutual fund companies to process it more than 5 working days. Now choice is your’s.

      1. Thanks Sir,

        I got your point that there are 2 options. One directly thru mutual Fund Company (Registering in particular AMC and Logging to their website and start investing) and and other is thru share broker which is sharekhan in my case and it will be in Demat Form.

        But one thing is still unclear that is investing thru share broker, as they also giving me 2 options. RTA (which is like directly investing in MF company and the units will be visible on share broker website) and other is NSE/MFSS (which will be in Demat Form). Does that mean choosign RTA option will not be in Demat Form? Also, if they dont have any additional charges what option is advised to chose?

        Thanks,
        Rohit K

        1. Rohit-I think you are confusing between normal advisers to stock broking firms which offer you online investment opportunities. So I suggest you to read my latest post on the same “How to invest in Mutual Funds in India online?“.
          If you opt for RTA option then too you can have your investments in demat format. In that case while submitting forms you need to provide demat account details. I hope I cleared your doubts. If still they are then let me know 🙂

  262. Mr. Basavaraj,

    Thanks for guiding a whole lot of us for our financial planning. I had already posted a comment earlier on this thread and you had responded bad to my query and based on your advise, I have already started my SIPs. I have a new query now on Debt funds.

    I have current parked my Emergency funds in JM Money Manager Fund Super Plan – G (abt 5 lakhs) for the past 2 years and I have been really happy so far about it as it is yeilding a CAGR of abt 9.8% to 10% so far.

    I have a corpus fund which I have created where I keep investing a fixed amount every month (about 10K+) every month. This money is for non-monthly expenses which includes vacation money, School Fees, Car Maintenance etc. I kept this amount in a separate SB account. Seeing the performance of the above JM MMF Super Plan, I created another portfolio of the same fund in my ICICI Direct account and started moving my monthly corpus amount to this folio. However, when I did my first withdrawl from this second folio after 3 months, I found out that ICICI Direct is treating both my portfolios as a single amount and showed the withdrawl under long term gains instead of short term gains. This was a surprise to me. I really wanted to keep my emergency find untouched so that when the need arised to with draw it, I wanted to make full use of the Indexation to minimize the losses due to Taxes.

    However with this new information, I realized that no matter how long I kept my emergency funds, the gains when I withdraw will always come under short term gains.

    To avoid this, I would like to see if I can keep both the Emergency and the short term corpus fund in separate funds. I wanted to seek your advise on what could be the best funds for both these amounts. One option I was thinking of was SBI Magnum Income Fund – Floating Rate Plan – Long Term Plan – Direct Plan.

    Can you pls advise the right funds for me for the above purpose ?

    Thanks in advance

    Uma Shankar

    1. Uma Shankar-The problem lies in not understanding the taxation of debt funds properly. Also during time of investing in any debt funds always check for exit loads. If both the things match your requirement then go ahead. Now coming back to your problem, JM Money Manager Fund is ultra short term fund and in my view it is good fund. So continue with that fund for investing your emergency fund. In my view ICICI considered your oldest investment for taxation as withdrawal and calculated LTCG. But that is beneficial for you I think. Because if they considered that investment as LTCG then earnings will be taxed according to your tax slab, that I think will costed you more (considering you at 30% tax bracket). So paying 10% without indexation or 20% with indexation is better than paying LTCG at 30%. What is your opinion?
      In my view maintain both your goals in same fund. By doing so, if any withdraw from this fund will be treated as LTCG and will be taxed accordingly. Instead if you invested in separate fund for your yearly expenses (kids education, vacation or car maintenance) and withdrawn the cash within a year then you will be taxed according to LTCG. So when we look at taxation issue, STCG will be beneficial than LTCG. Let me know your view too (because your thought process or requirement may be different).

  263. Hi Basavaraj,

    Thank you for the informative blog.

    I am new to Mutual Funds. Please suggest me at least 5 different types of funds in which I can invest Rs. 5000 each monthly.

    Thanks.

  264. Hello Basavaraj

    I am new in MF. I want to invest 10000 per month by SIP. Please tell me what is right time to start my sip. Should i start invest after the election.

  265. Sir,
    What is the procedure of DIRECT investment rather than going through a agent/agency.
    What documentation is required for the same.
    Thanking you in anticipation

    1. Anupam-It is as usual but the only thing you need to take care is to first time visit mutual fund companies directly (once folio no. generated then you can do all necessary things by registering online) and need to mention as “Direct” along with fund name also in broker ARN column you need to mention as Direct. Documentation and everything is same as that of normal.

  266. Dear Sir , interested in starting ELSS in Axis Long Term Equity Fund. What is your opinion about this particular plan ? Also already running SIP for ICICI – PRUDENTIAL DISCOVERY FUND – GROWTH 2500/-

    Birla Sun Life Frontline Equity Fund – Growth 1000/-

    IDFC Premier Equity Fund – Plan A Growth 2500/-
    RELIANCE REGULAR SAVINGS FUND – EQUITY PLAN 2000/-
    HDFC TOP 200 2000/-
    Please give your opinion on the above.
    Thanks
    Navneet

      1. Sir,
        Actually this TAX saving investment will be for my wife. Till date her tax saving route is PPF and 5 years FD. Now interested in starting ELSS for Rs 2500 in Axis Long Term Equity Fund . Please provide your opinion. Also about rest of the mutual funds.
        Thanks
        Navneet

        1. Navneet-Currently Axis Long Term Equity may be performing well. But I bit hesitant with the expense ratio (2.85%). So my suggestion is Quantum Tax Saving Fund. ICICI PRUDENTIAL DISCOVERY FUND is Small and Mid Cap Fund and better to retain one fund (either Discovery Fund or IDFC Premier Equity Fund). Instead of Birla Sunlife Frontline Equity Fund (Large and Mid Cap) move to UTI Opportunities Fund. Continue RELIANCE REGULAR SAVINGS FUND and HDFC Top 200.

          1. Thanks Sir.
            Also previous year my father has invested in
            HDFC MF Monthly Income Plan – Long Term – Growth a lump sum amount of 1,50,000/- and in RELIANCE MONTHLY INCOME PLAN GROWTH PLAN GROWTH OPTION a lump sum amount of 1,50,000/. Shall he continue in it or needs to shift.
            Thanks again.
            Navneet

              1. Sir, sorry I am late to reply. Actually father was interested in keeping this amount in debt oriented funds so that he may earn interest more tha FD’s. Your advice please.

                1. Navneet-MIPs are meant for monthly income but not like FDs. Also return from such funds depend on debt market which fluctuate exactly like equity market but not that much volatile. So your aim is to earn more than FDs then choose the debt fund which matches your time horizon but not FMPs. Also if you withdraw money within one then the earnings will be taxes as per your tax slab. If you withdraw after one year then taxation will be either of 10% (without indexation) or 20% (with indexation) whichever is lower. So considering these factors choose your fund.

  267. Hi Basu,

    What to select from Quantum Long term equity fund and Quantum Tax saving fund?
    Both is having same portfolio and both are performing well. Alsmost same NAVs. What do you suggest?

    Thanks!

    Gautam

  268. Hi Basavaraj,

    I have been investing an amount of Rs. 2000 each by way of SIP for over 2 years in the following funds.

    HDFC Mid Cap Opportunities Fund Growth
    IDFC Sterling Equity Fund
    RELIANCE BANKING FUND – GROWTH PLAN – GROWTH OPTION

    I would like to hold at the most 2-3 funds in my portfolio. I am open to pruning my existing portfolio of MF’s and concentrate on the ones I select. I will not be needing this money for some time and I am looking at a 5-10 years horizon. I am looking at 15% pa returns for the money invested ( I know it isn’t guaranteed but I am willing to hold on to a good fund to achieve this target) . I may also increase my monthly contribution.

    I am also concerned with the expense ratios since I am looking over the long haul. In your discussion I don’t see you recommend Quantum Long Term Equity to people. Any particular reason?

    1. Sid-You can switch from existing funds to the below funds.
      HDFC Top 200 Fund, IDFC Premier Equity and UTI Opportunities Fund. Please have a look at above list, I already recommended the Quantum Long Term Equity. If you are so concerned about expense part then why can’t you opt for DIRECT plans??

      1. Thank You. Well to be frank I wasn’t aware of the option. Did some reading and seems like its a good way to go.

  269. Dear Mr Basu

    My MF portfolio is as under:
    SBI Magnum Contra
    SBI Magnum Global
    SBI Magnum Taxgain
    HDFC Top 200
    HDFC Equity
    HDFC Focussed Large Cap
    HDFC Tax saver
    HDFC Prudence
    ICICI Pru Focussed Blue chip
    ICICI Pru Discovery
    ICICI Pru Dynamic
    Reliance Long term equity
    Reliance Growth
    Reliance RSF Equity
    Reliance RSF Balanced
    Sunderam Select Midcap

    Pl suggest about my portfolio and how to prune it further

    Regards
    Das

      1. These many funds have been accumulated over the years. Now I want to prune it to 5 to 6 funds.
        I want your advice on this.
        Pl suggest which funds to close & invest in which funds.

        Thanks & regards

        Das

        1. Sabyasachi-In that case I will give you some homework. Do your research of identifying the each fund category and share the same with me. Once you do that then you yourself will come to know the type of overlapping you did.

        2. Fund Fund category
          SBI Magnum Contra Multi cap
          SBI Magnum Global Mid & small cap
          SBI Magnum Taxgain ELSS
          HDFC Top 200 Large & mid cap
          HDFC Equity Multi cap
          HDFC Focussed Large Cap Large cap
          HDFC Tax saver ELSS
          HDFC Prudence Hybrid equity
          ICICI Pru Focussed Blue chip Large & mid cap
          ICICI Pru Discovery Mid & small cap
          ICICI Pru Dynamic Multi cap
          Reliance Long term equity Mid & small cap
          Reliance Growth Mid & small cap
          Reliance RSF Equity Multi cap
          Reliance RSF Balanced Hybrid equity
          Sunderam Select Midcap Mid & small cap

          I can see a lot of overlapping in same category. I need your advice which one to keep & which one to convert to which fund.

          Thanks & regards

          Das

          1. Sabyasachi-Now you understood where you are doing mistake. Simple solution is to exit from non performing same category funds and continue with good performing funds. My selection is as below.

            1) ICICI Pru Focussed Bluechip Fund, 2) HDFC Top 200 Fund, 3) HDFC Prudence Fund, 4) UTI Opportunities Fund and 5) Reliance Equity Opportunities Fund. Rest are useless.

  270. Hi Basu,

    I am 24 and want to satrt invest in MF.
    I got suggestion for SIP in HDFC Balanced fund and ICICI Pru Focused BlueChip Eq Fund-Reg(G).

    My colleague also suggests me Reliance Money Manger Fund (G), which have ATM card facility also.

    So, please guide me which one should I choose?.
    limit: 3k/month

    Thanks & Regards,
    Kunal

    1. Kunal-First understand your time period of investing. Because at one point you are claiming and selecting the funds which are equity oriented and also planning to go by your colleague suggestion of investing Reliance Money Manger Fund, which is ultra short term fund (exactly like having your money in savings account). So if you are planning for long term like more than 5-7 years then go for the said two equity and balanced funds. Otherwise you are investing for short duration like few months then go for Reliance Money Manger Fund.

  271. Hello Basavaraj,

    I am 32, Investing in MF thru SIP since 2011. Objective is wealth creation for the retirement and child education

    My portfolio
    IDFC Premier Equity (Dir) – (Grow) – Monthly 2500
    BSL Frontline equity (Dir) – (Grow) – Monthly 2500
    SBI Emerging Business (Dir) – (Grow) – Monthly 2500 (Redeemed on Last week Mar’2014)
    HDFC Top 200 – Monthly 2500 (Redeemed on 1st week Apr’2014)

    Redeemed money has been moved to liquid fund for emergency purpose

    Now started BSL Pure value (Dir) – (Grow) – Monthly 2500
    Kindly suggest me for another SIP of 2500 INR monthly

    I am inclined towards ICICI Pru Dynamic Plan (G) – Diversified Equity, is my choice is correct? or shall I change it to other bluechip fund

    Regards,

    1. Anbu-IDFC Premier Equity (Mid and Small Cap)-Go ahead, BSL Frontline equity(Large and Mid Cap)-You can continue,
      SBI Emerging Business(Mid and Small Cap)-IDFC Premier Equity is suffice to fill the category. So why one more fund of same category? HDFC Top 200 Fund-You can continue. BSL Pure value-Why so many funds in the category of Mid and Small Cap?? ICICI Pru Dynamic Plan-Again overlap of the same category of large and mid cap? Overlapping your investment in same category will not serve any purpose or good diversification tactic. So choose a fund from each category and stick to it.

      1. Hi,
        As a portfolio review exercise, I have stopped the HDFC Top 200 and SBI Emerging Markets in the Last March. No further SIP for these funds.

        I am starting the BSL pure value to replace the SBI Emerging Market, baseed on the last one year performance

        From the pervious threads, I understood that you still believe HDFC Top 200. I have little doubt on that and thinking to add the replacement for the same.

        Redefined portfolio (From Apr’2014)
        BSL Frontline equity (Dir) – (Grow) – Monthly 2500
        IDFC Premier Equity (Dir) – (Grow) – Monthly 2500
        BSL Pure value (Dir) – (Grow) – Monthly 2500

        All these 3 MF contains total number of 147 stocks , (123 stocks exist only in one mutual fund + 24 stocks exist in two mutual fund).

        As you mentioned If I add ICICI pru dynamic plan, No much appreciation in the unique stocks numbers. I am investing in the same stocks again.

        Now I am looking for another SIP for 2500 (Expected return of 15+% anuually), Shall I go with Diversified Equity or Blue chip fund. Please suggest me

        Regards,
        Anbu

        1. Anbu-I still believe in HDFC Top 200 and it already started reflecting the growth since few months. You did good work that these funds have 147 stocks but of which sector? I am unable to understand the meaning of diversify to bluechip. Is bluechip stock not a diversified fund?

          1. Hi,

            PFB the brake up of 147 stocks and sectors

            Sector no of stocks
            Miscellaneous 1
            Manufacturing 5
            Consumer Non-durables 6
            Services 5
            Automotive 11
            Engineering & Capital Goods 22
            Chemicals 7
            Oil & Gas 10
            Media & Entertainment 8
            Tobacco 2
            Information Technology 7
            Banking & Financial Services 28
            Retail & Real Estate 4
            Cement & Construction 4
            Utilities 4
            Conglomerates 3
            Telecommunication 3
            Food & Beverages 6
            Pharmaceuticals 5
            Metals & Mining 6

            I have left with 2500 per month for the SIP. Which fund is suitable to club with my existing 3 MF portfolio
            BSL Frontline equity (Dir) – (Grow) – Monthly 2500
            IDFC Premier Equity (Dir) – (Grow) – Monthly 2500
            BSL Pure value (Dir) – (Grow) – Monthly 2500

            Regards,
            Anbu

  272. Hi, This is really good article. Could you please review my portfolio as i have already subscribed to the below mentinoed MF’s for the period of 15 years

    ICICI Pru Focused BlueChip Eq Fund-Reg(G)
    Amount (Rs): 2,000.00

    IDFC Premier Equity Fund-Reg(G)
    Amount (Rs): 2,000.00

    HDFC Balanced Fund(G)
    Amount (Rs): 2,000.00

    Please guide me shall i change my portfolio by exiting from HDFC balanced or continue?

  273. Hi Basu,

    I want to invest for 1year where I am expecting 20-30% return. I find three funds. Please suggest me which one should I go for.
    Birla Sun Life MNC Fund (G)
    or
    hdfc mid cap opportuniti fund
    or
    Icici pru discovery fund-ref(G).
    or
    Your suggestion.

    I know it is more resk prone. But for some reason I have to invest for short term.
    Thanks in advance.

    1. Chandru-My simple advice is STAY AWAY FROM EQUITY INVESTMENT. Because you are claiming that your time horizon is one year and expecting unimaginable target of 20-30% which is very risky. So I will not suggest any fund for your goal. Sorry.

  274. hello mr Tonagatti,

    please guide me with choosing a really good sensex fund.
    waiting for your response.

    regards,
    purnendu

  275. Hi Basu,

    I want to invest 2500 rs for my son’s(1 yr old) education for long time. Please suggest me the best fund. Thank you.

      1. Basu,

        which option I have to choose…. Inst Growth, Reg Plan Dividend or Reg Plan Growth??? I am new to these…….
        Thank you.

  276. Dear Mr. Basu,

    It was nice reading your article.

    I am a naive in Mutual Funds, but reading a lot of articles & blogs regarding SIP Mutual Funds these days.

    I have gathered some information also.

    I want to invest Rs.1000 per month in the below mentioned segments of mutual funds. Kindly suggest which one to opt for in each segment.

    1. Large Cap : ICICI Prudential Focused Bluechip Equity. OR Franklin India Bluechip Fund.

    2. Large & Mid Cap : Quantum Long Term Equity. OR UTI Opportunities.

    3. Mid & Small Cap : Reliane Equity Opportunities. OR IDFC Premier Equity Regular. OR SBI Emerging Business. OR SBI Magnum Global.

    4. Sector : ICICI Pru Tech Fund. OR SBI Pharma Fund.

    Also, plz suggest for best returns,for how much duration to invest in each of the above mentioned segment of mutual fund.

    I am flexible to any sort of the duration that you suggest, what i want is only high returns.

    Plz guide, waiting for your reply.

  277. I want to invest Rs.1000 per month in the below mentioned segments of mutual funds. Kindly suggest which one to opt for in each segment.

    1. Large Cap : ICICI Prudential Focused Bluechip Equity. OR Franklin India Bluechip Fund.

    2. Large & Mid Cap : Quantum Long Term Equity. OR UTI Opportunities.

    3. Mid & Small Cap : Reliane Equity Opportunities. OR IDFC Premier Equity Regular. OR SBI Emerging Business. OR SBI Magnum Global.

    4. Sector : ICICI Pru Tech Fund. OR SBI Pharma Fund.

    Also, plz suggest for best returns, how much duration for invest in each of the above mentioned segment of mutual fund.

    I am flexible to any of the duration that you suggest, what i want is only high returns.

    Plz guide.

    1. Piyush-If your investable amount is just Rs.1,000 then choose a single fund and invest in the selected large cap fund. Equity investment is for long term. Hence more than 7+ years is always a best option.

      1. Dear Mr. Basu,

        I think i didn’t frame my question properly. I want to invest Rs.1000 in each segment of the mutual fund – Large, Large & Mid, Mid & Small & Sector mutual funds, i.e., total Rs.4000 per month.
        Moreover, is +7 yrs duration is for each segment of mutual fund ?

        And lastly, plz suggest which one to opt for in each segment of mutual fund ( b/w the options i have given for each segment of mutual fund or any other better fund that you suggest ).

        Waiting for your reply.

        Thanks & Best Regards
        Piyush

        1. Piyush-In that case your selection looks good but avoid sector fund you have chosen. Instead go with balanced fund, by doing so some % will go towards debt. Yes any equity investment must be for long term. You can choose any one of fund you mentioned.

  278. Hi Basu

    Nice article regarding the selection of funds. As per your list I have Franklin india blue chip since 2 yrs via sip and DSPBR Top 100 via sip since 5 yrs. Do I need to switch DSPBR Top 100 to ICICI pru focused bluechip fund. I have quite a lots of units in DSPBR Top 100. If yes pls tell me how to switch from DSPBR top 100 to ICICI pru foc blue ship?
    Or should I exit the DSPBR top 100 in onego and invest the same in onego to ICICI pru foc and continue sip in that fund. Pls explain in details

    1. Satish-Instead of again going for one more fund of large cap, select large and mid cap fund for your DSPBR movement. In my view currently market is at it’s peak. Hence better to come out and invest the same in any debt product. Otherwise invest in liquid fund and request for STP to the selected large and mid cap fund.

  279. Hi Basu ,

    Presently i am investing through SIP in the following 3 funds from past 2 years.

    1. ICICI Prudential Focused Blue Chip – Direct ( 2500 )
    2. UTI Opportunities – Direct ( 2500 )
    3. Reliance Equity Opportunities – Direct ( 1500 )

    And i would like to investment additional RS.2000/- in the following options

    – IDFC Premier Equity – Direct ( 2000 )

    or

    – Existing ICICI Prudential Focused Blue Chip – Direct ( 2500 + 1000 )
    – Existing Reliance Equity Opportunities – Direct ( 1500 + 1000)

    Could you please suggest me if i can go ahead with this choice else suggest me.

  280. Dear Basavraj,

    I am planning to invest around 20k / month through Mutual Fund.
    My Goals are :
    1. Child Education: Time frame ~ 12-15 years
    2. Retirement: Time Frame ~ 20-25 yrs

    I have shortlist few funds : All in Growth Options
    1. ICICI Prudential Focussed BlueChip Equity – 4k
    2. UTI Opportunities – 4k
    3. Franklin India Prima Plus – 4k
    4. Mirae Emerging Bluechip -4k
    5. UTI Equity / HDFC Top 200- 4k

    Kindly note : I have already a PPF/ NPS (around 3k/ month ) Account and EPF Account and contribute to them regularly.

    Kindly suggest

    Thanks,
    Shekhar

    1. Shekhar-Why two Small and Mid Cap funds (UTI and Franklin), instead choose any one. Instead of Mirae Emerging Bluechip, my suggestion will be IDFC Premier Equity. Choose HDFC Top 200 over UTI Equity.

  281. Hi Basu ,

    Presently i am investing through SIP in the following 3 funds from past 2 years.

    1. ICICI Prudential Focused Blue Chip – Direct ( 2500 )
    2. UTI Opportunities – Direct ( 2500 )
    3. Reliance Equity Opportunities – Direct ( 1500 )

    And i would like to investment additional RS.2000/- in the following options

    – IDFC Premier Equity – Direct ( 2000 )

    or

    – Existing ICICI Prudential Focused Blue Chip – Direct ( 2500 + 1000 )
    – Existing Reliance Equity Opportunities – Direct ( 1500 + 1000)

    Could you please suggest me if i can go ahead with this choice else suggest me.

  282. Hi Basavaraj,

    Your blog is very informative.

    I am new to Mutual fund . I have Citi and HDFC back account .

    1)Is it wise to invest in mutual fund via Citi or HDFC netbanking ?

    2) I am currently investing in SBI Magnum Tax Gain Scheme – Regular Plan – Growth ( 2000/month ) ,can I continue that or should I go for any alternative ?

    3) I am planning to invest 2500/month in ICICI Pru Focused Bluechip Equity – Growth for 10 years .
    Is it fine If I start with ONLY Large Cap or should I invest parallel in all 3 sector ( Large , Mid , Small )

    Please advise 🙂

    Thanks ,Looking forward for your response.

    -Abhiram

  283. Hi Basu,
    I want to start a long term investment plan minimum 7-10 yrs. Ideally a SIP will be the best option.
    I already have HDFC top 200 (2500/-), which I find to be above average of late. Please suggest me the plans that can be considered (3000/- monthly).
    Please provide me your opinion on below funds
    1. SBI PSU Fund: I have 1500 units my agent wants me to keep it till the new government. I want to sell it as I haven’t got anything out of it.
    2. UTI Dividend yield (D): Has been Ok all these years but not happy with its performance so thinking to put the money in some other fund.

    Thanks
    Raghav

    1. Raghav-Please continue with HDFC Top 200 Fund, currently it may be not a best performer but I still hope that it will emerge as a best fund once again. Instead of depending on Govt policies, I suggest you to go for Franklin India Bluechip Fund for your future Rs.3,000 investment. Stay away from UTI Dividend yield.

  284. Hello Basavaraj,

    I am planning to start new investment of Rs. 10000/- for my son’s future. Right Now my son is 1 year old. Can you please suggest me how to plan my investment. Is it good to put all 10000/- in mutual funds only or any changes is required.

    Currently i am investing in below 2 fund as per one adviser
    Franklin India Bluechip Fund – Dividend(2500/-)
    ICICI Pru Focused Bluechip Equity – Growth(2500/-)

    Please advice me.

    Thanks & Regards

    1. Smitha-Better to diversify your investment by investing around Rs.2,500 into PPF. Rest Rs.7,500 among three funds (each Rs.2,500) by selecting a fund from each category of said list. Your current investment in both large cap will not serve any purpose. Also if your view is of long term investment then why you opted for Dividend in Franklin India Bluechip Fund?

      1. Thanks Basavaraj

        It was not opted by me. i gone through broker and he filled form. I was new that time.I already have PPF of 2000 and also EPF. I have got SBI’s – ULIP and LIC Jeeven Anand policy.

        Do you feel i should invest somewhere else also?

        1. Smitha-In that case select three funds from a fund list of each category also go with HDFC Balanced Fund. ULIP and Jeevan Anand are not right products. Instead I suggest you to opt for term insurance to the tune of around 15-20 times of your yearly income first and then proceed for this fresh investment.

  285. HiBaswaraj,

    I am inversting 10K pm in following fund. please suggest if any changes required.

    1) 02T-HDFC Equity Fund – Direct Plan – Growth Option (Rs. 3000)
    2) BFGT-HDFC Balanced Fund – Direct Plan – Growth Option (Rs. 1000)
    3) LTEGT-HDFC Focused Large-Cap Fund – Direct Plan – Growth Option (Rs. 2000)
    4) MCOGT-HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth Option (Rs. 1000)
    5) MCOG-HDFC Mid-Cap Opportunities Fund – Growth (Rs. 1000)
    6) 8042-ICICI Prudential Focused Bluechip Equity Fund – Direct Plan – Growth (Rs. 2000)

    Thanks & Regards
    Ramesh

    1. Ramesh-Why so much attraction towards HDFC Mutual Fund Company? Also I see over lapping in your fund selection (like two large cap funds or two mid cap funds). Restrict to one fund from each category.

  286. Hi Basu,

    My investment horizon is 20 years. I am currently invested in the below fund for past 6 months. Let me know your expert advise on this. Im a little doubtful on UTI MNC. Let me know if I should continue with it.

    ICICI Pru Bluechip – 5000K
    UTI Oppotunities – 3000K
    ICICI Pru Discovery – 2000K
    UTI MNC Fund – 2000K

      1. Hi Basu,

        Just curios to know under which sector does UTI MNC falls in ? I looked at the portfolio and I see being diversified. need your kind advise here.

  287. Hi,

    I am new to mutual funds. I have made the following investments through an agent:

    Franklin India TAXSHIELD – GROWTH: Rs.1500 pm (SIP)
    HDFC Cash Management Fund – Treasury Advantage Plan – Retail – Growth: 1,00000(STP) to HDFC Mid-Cap Opportunities Fund – Growth (1000 weekly)
    IDFC Premier Equity Fund-Growth-(Regular Plan): Rs.2000 pm(SIP)

    Please let me know if they are good investments. Also, I was adviced by my agent that instead of investing in Recuring Deposit (which i do regularly for my 4 year old daughter) i should go for a large cap fund investment which would fetch me better gains similar to FD. Please guide which fund should i select and how much amount, also for what duration.

    Thanks,
    Harshada.

    1. Harshada-Franklin India TAXSHIELD (G) is tax saving. If you have any goal to save tax with your investment then go ahead. Why you have chosen HDFC Cash Management Fund, as this fund being ultra short term fund, you need to chose this fund if you have immediate goal. You have again chosen two Small and Mid Cap funds (HDFC Mid-Cap Opportunities Fund and IDFC Premier Equity Fund-Growth), chose any one fund. RD is for your short term goals and equity is for your long term goals. Also bear in mind that return from RD is taxable. But what your agent is claiming is partially true. He is correct by saying that if your goal is for long term (for your kid’s education and marriage) then instead of investing in RD better to switch to Large Cap Fund. But he is wrong by stating that mutual funds will fetch you more or similar return to FDs. In reality as I said above, equity investment is for long term. So if you have waiting period anything more than 7+ years then you go ahead with equity as in long run it always give you good return and tax efficient too.

  288. Hi, I am a newbie, aged in mid 20s and planning to invest around Rs. 2000 through SIP for at least 2 years from now (honestly speaking, I don’t know for how long, but no where less than 2 years, it might even continue for 5 yrs / 10 yrs)

    I plan to increase my total SIPs by roughly 30% per year over my lifetime

    For now, I am thinking of investing in one of the below mentioned three funds:
    ICICI Prudential Exports and Other Services Fund
    Reliance Small Cap Fund – Direct Plan
    ICICI Prudential Technology Fund – Direct Plan

    Can you please suggest which one to choose from above or if you would suggest any other scheme to invest in if none of the above are recommended ones…

    Thanks, looking forward to your response

    1. Deep-You claiming to be newbie to mutual funds and entering into sector funds is totally risky and at the same time, if your time horizon is less than 5 years then a big NO from my end. Equity investment is for long term. If you have any short term specific goal for which you are investing then stay away from equity investment.

  289. Hi Basu,
    I have been MF investor since 2011 and have SIP and lumpsome investments made in equity (L , SMC) and debt funds. I want to start a SIP of around 4 K per month in sector fund “ICICI prudential exports and other services fund”. It predominantly invests in IT and Pharma. My overall contribution to this sector fund will be less than 5% of my annual contribution. Pls advice if you have any review comments about this fund.

  290. Hi Basu,

    Very informative blog and thanks you for keeping us financially aware.

    Below is my portfolio and doing SIP (Growth Option) from Nov 11 when it was from Regular mode which I converted them to Direct Plan for avoiding any charges.

    • Reliance Equity Opportunities Fund of Rs 1000
    • IDFC Premier Equity Fund –Rs 2000
    • ICICI Prudential Focused Bluechip Fund Rs 500
    • Quantum Gold Saving Fund Rs 1000
    • HDFC Balanced Fund (SIP from April 14) Rs 1000
    • UTI Opportunities Fund (SIP from April 14) Rs 1000

    I have stopped SIP in HDFC top 200 and planning to stop DSP Blackrock Top 100 Equity Fund from May 14 onwards as replacement of HDFC balanced fund and UTI opp fund

    I have Kotak Term Insurance of 25 Lac with 5 lac of Aegon Religare Health Insurance. Also have LIC Money back Policy of 50k. Also investing in PPF for saving purpose.

    Please review my portfolio and advice any changes required and whether I can add International fund and Pension Plan ie Templeton India Pension Plan with NPS.

    1. Mahesh-I think you can continue with the listed funds you mentioned. But I still have faith in HDFC Top 200 and if still not performed well one more year then you can switch to HDFC Prudence. Whether your term insurance cover is around 15-20 times of your yearly income? If not then fill it with additional purchase. Where is emergency fund? If not shared then OK, otherwise build a corpus of around 6 months household expenses in some liquid funds or FDs. But do remember that equity investment is for long term.

  291. hi sir,

    Hats off to your blog. Its very educative after reading the services tab in your blog about FINANCIAL PLANNING. i put all my early myths to rest & provoked me to do finance planning.

    After analysing my current finance i feel that i can invest Rs 5000/- per month in MFs to secure my son future
    (At present my son age is 5yrs). since im a first time investor i request you to guide me in choosing the fund and how to diversify my amount in different funds.

    1. Mohan-Choose a fund from above listed each category and start investing. Better to have more inclination towards large cap and large and mid cap funds. But at the same time, buy term plan also to cover your life risk.

  292. Hi ,
    I am 30 yrs old first time investor in MF’s, as far as my portfolio is concern I have invested in fixed deposits, PPF, monthly EPF, Term and health insurance cover for myself, this way I am planning to secure my future with secure investments and insurance. Now as I said before I am planning to invest in MF long term (5yrs) so identified following funds to invest but not sure whether to go for lump sum or monthly SIP’s?? Which would be better option , investing 40K each fund or 2000 monthly SIP??
    I personally believe not to clutter with many funds so planning to invest only in 5 MF’s, 2 large cap funds (just to avoid stock market volatility), 2 Mid cap funds (for rapid growth) and 1 balanced fund.

    Large Cap Funds
    ICICI prudential focused Bluechip Equity (G)
    Quantum Long Term Equity (G)

    Mid cap funds
    Reliance Equity Opportunitis Fund (G)
    IDFC Premier Equity Regular (G)

    Balanced Funds equity
    HDFC balance fund (G)

    Additionally I am thinking of further investing on sectoral funds and my choices would be following.

    Reliance Pharma
    ICICI prudential Technology Reg

    Other option here I have SBI Pharma/Franklin Infotech fund but not sure of them, may be in future fancy my chances.

    My target is to stay invested for 5 yrs and generate an average returns of 22-25%, Please suggest if my overall choice is correct or not??

    Kind regards,
    Anuj Sharma

    1. Anuj-Better to opt for SIP instead of lumpsum investment. Why two funds from each category? One fund from each category will fulfill the same objective. Go ahead with one fund from each selected funds. You are claiming to be first time investor. Hence as of now avoid any sector funds. Also keep in mind that mutual fund investment (equity) is for long term. Hence don’t restrict your time horizon to 5 years only. It must be more than that. Expecting 22-25% good but how much the funds deliver is question. Hence in my view around 10-12% of expectation for long term will be an ideal way as this return is also tax free.

      1. Many thanks Basavaraj!!, much appriciated.

        I am going ahead with ICICI prudential focused bluechip equity(G), Reliance equity opportunitis funds(G) and HDFC balance funds(G) with monthly SIP.

        I am itching to put 5% of this year investment target in sector funds and willing to take risk because I assume with stable goverment will bring some reforms (hopefully 🙂 ) and pharma, techo funds may do well!, but little apprehensive if private banking sector is going to do well this year or not?. I know I could be wrong in overall prediction but just want to start with some risk appitite.

        My 5 yrs plans are to generate captial and invest into real estate, what do you think if one want to make short terms gains then which funds do you recommend??

        Many thanks,

        Kind regards,
        Anuj Sharma

        I

        1. Anuj-Good to know about your selection. If your sector fund exposure is around 5% overall investment then I don’t think it will harm you that much. My assumption is IT, Banking (More towards private sector) and Pharma. Rest let us hope for stable Govt and some action oriented days ahead 🙂 Stick to your return expectation, if anything more than advantage and switch to debt around 5-6 months before you reach goal.

  293. my child marriage saving funds this is first time invest mutual funds large yrs term 15/ 20 .this is best plan large yrs i invest 1000 p.m for 2 funds with plan best plan

  294. Hi Basavaraj,

    Hope you are doing well. Again I will appreciate your good work. Please carry on 🙂
    As suggested by you, I have already started SIPs on 4 funds : ICICI Pru Focused Bluechip, UTI Opportunities, IDFC Premier Equity and HDFC Balanced Fund with total of 10k per month. I can see an opportunity of adding another 2K per month.
    Can you please suggest the fund, apart from this 4 on which I should add?

      1. Hi Basavaraj,

        Thank you. I will do it.
        Just for my understanding, one should not have more than 4 funds in his portfolio at any given time. Any particular reason for it?

        1. Saikat-I said of maintaining limited number of funds in your portfolio. Reason for such claim is, if you go on adding funds of same category then do you feel you are diversifying your investment? It is just overlapping with different fund names. Also having too many funds will confuse you in tracking your investment. Hence keeping simple and clean is mantra of success.

  295. Dear Basu,
    Being a novice in this matter, i was reading your blog with a lot of intrigue.
    Must say, your recommendation sound really cool. cannot judge any of it, due to paucity of knowledge in this field.

    I am 34 years, I am starting afresh with involvements once again, as i had to dissolve all past investments due to some crisis.
    I can invest Rs. 5000-7000/- every month on SIP. basis your blog i have selected
    ICICI Pru, Focused Bluechip Equity Fund (G), for a 10 years period.
    Please tell me, why does the return peak in 5 years and drops in 10 years time frame? then is it wise to keep invested for 10 years?
    also, I am planning to take an online term plan of rs. 1 Crore
    now, should i tak it from one company at one go? or split 50 lakhs in 2 companies?
    kindly suggest

    Kousttav

    1. Kousttav-But instead of selecting a single fund, I suggest you to select a fund from each above said category and start investing for better diversification. To avoid such market volatility like peak in 5th year and drops in 10th year, it is always suggested to have time frame of long term, use monthly SIP and review the fund at least once in a year. Equity investment is not like FDs, where you invest today and will open your eyes once it matures. I don’t think it is wise to spread your risk. Instead select a company based on your comfort and buy it with disclosing all materiel facts. If you are so much scary about companies, then you can do so. But do remember that once you have your first insurance then in further buying you must disclose your existing cover.

      1. Hi,
        May I request you then to kindly suggest a portfolio to me basis your understanding of funds and their diversification please.
        As in How much of my (Rs 7000) in Blup chip, how much in UTI, How much in Reliance….
        I am quite dud 😉 in this regard.

    2. Also Basu,

      with the rs. 7000 i mentioned, will u split that into Large, Mid and Small cap funds or all in the Bluechip fund?
      My purpose of investment is long term only.

      Thanks

      1. Kousttav-Invest Rs.3,000 in large cap, Rs.2,000 in large and mid cap and Rs.1,000 in mid and small cap and Rs.1,000 in balanced fund. Remember that to invest for only long term view. Best of luck 🙂

  296. Hi Basu, I am looking at 5 funds which I can invest for 10-15 year min for my daughter avg invt of 10L and expected returns of min 15%-20% per annum with good track record.

    Pls can you suggest some funds and thanks in advance

  297. AT PRESENT I AM INVESTING IN FOLLOWING FUNDS
    1. ICICI PRUDENTIAL FOCUSSED BLUECHIP FUND
    2. HDFC EQUITY FUND
    3. QUANTUM LONG TERM EQUITY FUND
    4. IDFC PREMIER EQUITY FUND
    5. ICICI PRUDENTIAL DISCOVERY FUND
    6. SBI GOLD FUND.

    TEL ME WHETHER MY SELECTION OF FUND IS OK OR NOT

  298. Thanks Basu for a detailed reply. Based on the discussions, what I will extend all existing best perfuming SIP’s to a period of 10 years (as most of them have done a 3 year by now).

    New SIP’s will be taken for a straight 15 year term, and let’s see how it works. I will avoid ICICI Pru Banking and other sectorial funds, also the Navaratnas.

    Axis Long Term, I started in Jan 2014 without knowing its a Tax Saving fund (Saw money control recommendation and picked it). Should I stop and divert to another SIP? (This is showing a 1 yr return of 26%, 3 Yrs 15.77%, hence picked)

    Do you advise the sectorial funds (pharma, technology and Export) to stop SIP’s or continue for the 3 years opted already…? These SIP’s will get over by 2016, and given about 34% in 1 year, 20% in 3years)

    I have a BSL Divident Yeild Fund 3 yrs SIP matured in July 2013 for amount of close to 2 Lacs. Should I redeem the funds, or continue holding it?

    Another matured fund is SBI FMCG, where 49K is available still holding (without any further investment)

    What would you advise with the above 2 funds.

    I have UTI Divident Yild Fund, should I switch over to UTI Opportunities fund?

    Another doubt is, by going direct from MF houses, how will I be able to track it on a single platform…? Then I should login ICICI, or UTI, or HDFC MF pages individually right? Or if I use fundsindia.com or someone, will there be charges?

    Currently as I said, I use my HDFC Bank for setting up SIP’s and transfer of funds etc. Which way we can do a direct deal and monitoring all funds in a single platform? Will Karvy or CAMS page help..?

    Thank you for your patience in reading my queries.

    Vinod

    1. Vinod-Tax saving funds involves lock-in of 3 years. Hence better to avoid them if you don’t need any tax saving option. I am not big fan of sector funds as it need constant monitoring of sector and risk involves is more than diversified funds. BSL Divident Yeild is not performing well currently. Hence avoid it. There are plenty of free online tools to track your funds. So no need to worry about such hassles. Even you can use moneycontrol tool to track your funds. FundsIndia is typical broker. So you will not get the benefit of direct investment. Only difference to HDFC trading account will be they will not charge anything on SIP. But if you go with them still middlemen charges will be there. You can still use your HDFC Bank for direct investment. No need to worry about that. My latest post will give an idea about direct plans here-“How to switch to direct plans of Mutual Funds?

      1. Thanks Basu. You said avoid BSL Dividend Yield fund…. Can you advise you mean close it and redeem? I have 2 lacs in this fund, matured in July 2013 and no more SIP’s running in it.

        Axis Long Term – SIP just started a month back, should I stop and use other funds rather? I do not need them for tax saving, as I have already got other 80C products for tax saving.

        Is it better to use 5 Funds (10K each) for a 50K SIP plan, or do you suggest 8 or 10 funds in total. My investment horizon as per your advise will be 10 to 15 years.

        Kindly advise. Thanks

        1. Vinod-Instead of investing lumpsum of redeemed amount in any new plan, invest in same fund house liquid fund and request for STP. If you do so then you earn something from liquid fund and you reduce the risk of one time investment in equity. Better to stick to one from each category rather than go on adding funds to your portfolio.

            1. Sorry, one more quick question, while doing STP, is it mandatory that we need to do transfer and switch to another fund from same Fund house..? Eg: from BSL DYP plan, where can I switch to..?

                1. You had mentioned me to do an STP to a liquid fund, and only BSL Cash fund is available i guess. Can’t we do an STP to a better perfuming fund like BSL MNC Fund or Front Line Equity Fund or BSL Top 100 Funds? Just to remind you, this is for switching from BSL Dividend Yield Plus fund for an amount of 2 Lacs.

                  Thanks Basu.

                  1. Hi Basu, Can you advise on my query: Why you suggested switching the BSL Dividend Yield Fund accumulated money (2Lac) to a BSL Liquid Fund? Cant we switch to (STP of 200 or 5000 Per Month) to BSL MNC Fund, or BSL Top 100 or BSL Frontline Equity Funds?

                    Which one you advise, kindly let me know?

                    Do you suggest to withdraw fully and put the entire fund on Govt of India Inflation Indexed Bonds as an alternative??

                    Thanks

                    1. Vinod-I suggested to liquid fund if you are totally moving out of that particular AMC. If withing AMC then my choice will be BSL Frontline Equity Fund. Do you believe the calculation of inflation is actually match your household inflation? Do you feel to mess in future because of Govt policies? If yes then go ahead. Also look at taxation issue also of these bonds.

  299. Hello Basu,

    Thanks for such a nice article.
    I am 33 Yrs old and annual income is 10L. Few months back only I started following SIP’s:

    1. Franklin India Bluechip Fund -Growth
    2. ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth
    3. HDFC Top 200 Fund – Growth
    4. BNP Paribas Equity Fund – Growth
    5. IDFC Sterling Equity Fund – Regular Plan – Growth
    6. Birla Sun Life Frontline Equity Fund -PLAN AGrowth
    7. UTI Equity Fund – Growth

    Apart from that I have a term plan of 1 cr.
    Please suggest if I continue above SIP’s for next 10 yrs or buy few more ?

      1. I am very new to it, so I do not understand the permutation and combinations of it.
        So can you please suggest ?

          1. You mean to say that I should continue with following :
            1. Franklin India Bluechip Fund -Growth
            2. ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth
            3. BNP Paribas Equity Fund – Growth

            and discard others ?

  300. Sir,
    I am a 36 yrs old person I am working in a prvt company last 14years my current salary is 40k/month and my wife is a teacher she is getting 28k/mnth.In my previous 14 years I was buy one house and 25 cent plot for 5lakh (2004) with a bank loan of 4 lakh,its corrent value is 25 lakh, the loan is closed. After that my wife and me transferred to another district 2007, There I bought one more house with 5 cent in town for 15lakh with abank loan of 10 lakh, its current value is 50 lakh, now mean 2013 onwards I was renewed my loan with an amount of 9 lakh with a current emi of 9000/month,2011 iam purchased maruthi a star with a loan of 2 lakh that I am closed.now my assets are these two houses and 1 lakh in bank for emurgency fund, and liability is 9 lakh loan, now i have a family insurance in star health for 3.5lakh for 6250/annum and company family health insurance of 1.5 lakh and my wife have 4000 rs cutting in pf and 1000 in post office rd, and 1000 in PACL one pvt company investmentment(she’s relative is a staff of this company we know we loose this money any time), two money back policy 750/month each, 1000 bank rd. I have 1500 pf and started 12 months back in SUNDARAM SELECT MIDCAP D reinvest, IDFC PREMIER EQUITY PLAN A D reinvest 2000/ month each(total 4000).I am and my cousin have a sharewealth chitty or 20 lakh for 20 years (3 yrs cmpltd) current monthly installment is 6200 (3100 me and cousin). My monthly house expense is 10k which is in sharing basis with my wife I have a
    4 years old girl, I wish to invest in some mutual funds from now onwards details given below and advice me how to achieve in a good financial position me and let my dauter to become a doctor.
    plannig funds.pls choose me 5 to 8 funds .
    1. IDFC PREMIER EQUITY PLAN A D(investing march 2013 onwards)
    2. SUNDARAM SELECT MIDCAP D (investing march 2013 onwards)
    3. RELIANCE EQTY OPPRTUNTY RP G
    4. QUANTUM LONG TERM EQTY G
    5. ICICI PRU FOCUSED BLUE CHIP EQTY G
    6. UTI OPPRTNTY G
    7. HDFC BALANCED FUND G
    8. HDFC PRUDENCE FUND G
    9. ICICI PRU DYNAMIC PLAN G
    10. HDFC TOP 200 G (currently bad but an old rore horse)
    11. BIRLA SL FRNT LINE EQTY G
    12. FRANKLIN INDIA BLU CHIP G.
    Pls advice howmuch I can invest in 5 or 8 mf and other possibilities out of these.

    1. Girish-You are under insured, hence my suggestion will be first to have proper life insurance by buying online term plan to the tune of 15 times of your yearly income+existing loan amount. Same rule apply to your wife also. She also need to buy term insurance as you are financially dependent on her. Try to first come out of that private company investment. May I know the reasons behind having RD from you and your wife? Also why you have chosen dividend option in mutual funds of Sundaram Select Midcap and IDFC Premier Equity? Chit funds are risk if they are not registered and regulated well. Hence having such investment like your wife’s investment in one company and your chit fund investments are more riskier. So try to come out of these two at the earliest. First clear my doubts then we will go further to select funds. Also before proceeding further, buy term insurance as early as possible.

      1. Hi sir,
        Thank u for ur sujetions. I am planned to stop that pvt company investment of 1000 rs, rest of wife’s 2rd of rs 1000 each,she’s one aunty is in post office and one brother is in bank that relationship are compelling us, the chit fund, in my vew sharewealth is a well established company in share broking and other diversified businesses, if you are sujesting to come out from that I will go through. Divident reinvestment is, in my vew if nav will come down but no of shares will not come down that is only my vew pls tell it is right or not.pls recomend lowest premium term policy for me and my wife. I have one more doubt how I am dependeded of my wife, iam also earning person and my assets are only my own money.pls give a valuable advice.

    2. Hi Basu,

      I did a few researches and comparisons and short-listed these funds for SIP route. I am planning to invest about 50K per month from April 2014.

      What is the period you suggest to book SIP for…? 5 years, 10 years or 15 years? Should we go that long?

      Let me know what do you advise. Any one you feel can be opted..or which best 5 I should consider. Is it not advisable to hold more than 10 SIP’s in a portfolio?

      IDFC primer Equity G
      Axis long term equity G
      SBI Magnum Midcap Fund G
      Quantum Long Term Equity
      Franklin India Prima Fund
      Birla SL Top 100 G
      HDFC MidCap Opportunities (G)
      Birla SL MNC Fund (G)
      Birla SL India Opportunities Fund – Plan B (G)
      Tata Ethical Fund (G)
      ICICI Pru Banking Fund
      Franklin India Flexi Cap G
      ICICI Pru Focussed Blue Chip
      Mirae Asset India Opportunities Fund-Reg(G)
      ICICI Pru Discovery Fund-Reg(G)
      Frankline India Blue Chip Fund G

      (I already have existing SIP’s for about 7 Lacs net worth done over the last 5 years).

      Existing SIPs, which will run for another 3 more years are:
      ICICI Prudential Export and Other Services Fund GR
      SBI MSFU Pharma – Growth
      ICICI Prudential Technology Fund – Regular – Growth
      ICICI FMCG Fund
      Birla SL Fronline Equity

      Hope you will share your thoughts.

      Thanks
      Vinod

      1. Vinod-Equity is for long term. How much is the true long term is the question mark 🙂 In my view anything above 7+ years will be considered as long term. Select one fund from each sector by going through my fund selection (if you have doubt) and start investing. Having so many funds will actually overlap your investment. Hence restrict it to 4-5 funds. Your existing funds are all sector funds which I don’t think a better strategy to mitigate the risk. Hence avoid such sector exposure and use the diversified funds to further investment.

        1. Thank you Basu for your reply. I had taken a few SIP’s in 2010, 2011 and 2012, but all were taken for about 3 year to 4 year period and these are getting over by 2014/2015. Funds include some of the performing ones such as IDFC Premier equity, BSL Fronltine Equity, UTI Dividend Yield, BSL Dividend Yield Plus, HDFC Top 200, BSL MNC Fund etc, in addition to the sector funds I mentioned earlier.

          These are all Online SIP’s through my HDFC Bank account. What is your suggestion, to extend the funds after the end of 3 years, or plan right away with a set of 5 more new funds. As I mentioned I plan to invest about 50K per month in SIP’s.

          1. Will it be good, if I opt for SIP’s of 5000pm x 10 funds (OR) 10000x 5 funds?
          2. I have chosen multiple funds from similar category based on their 3,5 and 10 year returns…and I check and found that the investments are in different companies from same sector
          3.

          Will you advise these 3 funds (i was not familiar with, but recently read about a few articles and they suggested)

          Axis long term equity G
          Tata Ethical Fund (G)
          ICICI Pru Banking Fund
          Mirae Asset India Opportunities Fund-Reg(G)

          One more input I thought of sharing is that, since i opted for weekly SIP in IDFC Primer equity (2000 per week) it has given a much higher returns in the last 15 months, compared to monthly investment…may be due to better averaging. You can share your views on it.

          Hope you will advise, and accordingly I can choose the best 5, or best 10 or continue a few existing + add a few more and plan.

          1. One more question….. What is your call on the new CPSE ETF fund? Worth picking it…as it is an NFO and is on Maharatnas?

          2. Vinod-You can continue the existing well performing funds. At the same time don’t be in a mis-conception that online investment with trading account provider is the cheapest mode of investment. I think they charge for each SIP and your online investment includes brokerage charges from Mutual Fund Companies. So, if you are so confident about tracking the funds on your own then why can’t you opt for Direct Investments where their will be no middlemen and this cost of middlemen will directly reflect in NAV (which are different to normal rates). So my suggestion will be to go for direct plans. I don’t think having too many funds will actually diversify. I agree that there may be slight change in investment ideas of each fund eventhough being in same category. But overall the theme will be same and going on adding more and more funds will not be a best idea.
            Axis long term equity-It is tax saving fund. Will you need this?
            Tata Ethical Fund-Expense ratio slightly more but you can invest in it.
            ICICI Pru Banking Fund-I don’t think what is prompting to go for sector funds. Just check your large cap funds and you notice that higher exposure will be towards Financial sector then why again Banking?
            Mirae Asset India Opportunities Fund-I still prefer UTI Opportunities fund over this fund. Because UTI fund is old fund, lesser standard deviation and expense is less.
            My only suggestion is first select a fund from each category based on oldest funds, how old is mutual fund company in managing, how well it performed consistently (I know few rating sites may give high rate currently, but will they retain the same rating in future?) and do research on some technical issues like standard deviation, alpha, beta and sharpe ratios. I agree that weekly averaging will have an advantage. But maintaining the cash and tracking them regularly is the task which few fail to do.

            1. Hi, I replied to this post, but its not been displayed. Hope you got it. When I tried for 2nd time, it said this topic was already posted by you.

  301. Hi Basavaraj,

    Nice Blog. I need your advice to start SIP for 3K more 1K in each fund. Right now I have the following SIPs monthly from past 18months.

    1) DSP BlackRock Equity Fund – Reg – Div Reinvestment
    2) Franklin India FLEXI CAP FUND GROWTH
    3) HDFC TOP 200 FUND – GROWTH
    4) RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH PLAN – GROWTH

    I have opted this fund from this month – RELIANCE PHARMA FUND – GROWTH PLAN – GROWTH

    Thanks,
    Venkat

    1. Venkat-Apart from DSPBR Equity Fund (which I don’t know why you opted for Div Reinvestment) others are good funds. You can go ahead. Reliance Pharma Fund is sector fund which are risky than normal diversified. Hence it is upto you to what extent you are ready to take risk.

  302. Hi, I am planning to invest 5000 pm in SIP. Can we invest already running funds(Eg: HDFC TOP-200- Direct) and it having current NAV of 243.00. or CAn I invest in new funds which are getting launched from mutual funds. I am little bit confused on can we invest in newly started funds or running funds? I know based on market risk new funds will perform. If I invest in running funds, I am buying the units with more cost.. Will it be worth???

    Thanks

    Sankar

    1. Sankar-When you are investing in mutual funds how cheap is NAV not matters. Instead how fund performs is the matter to worry. Hence instead of investing new fund offers which are hard to track the history as they newly launched, better to invest in funds like HDFC Top 200 Fund.

  303. Hi Basu,

    Extremely Helpful!!! I have a read a lot about investing on MF’s .
    I’m new to MF’s . I have shortlisted a few to start with a target of 10 -15 years.
    Do help me to choose the best. I am 29yr old with salaried income of 40k a month. Currently savings in LIC of 35 k annually, ppf 3000/ month. I would like to add more 4000 a month to mutual funds. Here are my choices:
    1. Icici Pru Focused Blue chip Eq Fund : 1000 pm
    2. IDFC Premier Equity :1000 pm
    3. UTI Opportunities Fund : 1000 pm
    4. Sundaram Select Midcap Fund : 1000 pm

    Let me know if these are good enough or do recommend the best ones. Also i feel i have selected too many LIC’s and shall I surrender a couple of policies after 3 yrs period which is about get completed.

    Regards,
    Nambi Rajan

    1. Nambirajan-Before proceeding further must do things are-Buy term insurance to cover your life risk, create emergency funding of at least 6 months of household expenses and have proper health insurance. Why two midcap funds (IDFC Premier equity and Sundaram Select Midcap)? Choose anyone and rest are fine for me. Better to surrender dummy investments like LIC and concentrate insurance only to cover your life risk.

    2. Dear NambiRajan,

      First and the most imp: Please STOP your LIC Premium asap & take an online or offline term plan of atleast 1 CRORE. You are 29yrs…so ANNUAL Premium will be around 10,000 RS. Now remaining 90,000/- PA for 80C Investments you may plan as follows: PPF: 2500PM, ELSS MF (Tax Saving MF): 5000PM. (ICICI PRU TAX PLAN & FRANKLIN INDIA TAX SHIELD, Both GROWTH Option: 2500PM Each)

      Now after making yourself DISCIPLINED in 80 C Category, plan for MEDICLAIM 80D Catergory, and ONLY then you should think of other investment avenues.

      Please remember in FINANCIAL PLANNING “Do the disciplined things 1st, and then Flamboyance things later”

  304. Hi

    I have selected 6 Funds with Direct Option for Starting SIP From Apr’14 to next 10 Yrs . Equal Amount in Each Fund. Please suggest IS My Selectin is Right? IF OK Then how much amount %wise to be distributed in These Fund.

    I have HDFC Securities Trading Account Where Demat Account is with HDFC BANK. From Where i Should Start my SIPs

    1. From HDFC SECURITIES- I have to call them for starting the SIPs They have only Online facility for Lump-sum purchase. If i Go with this option Will HDFC Bank will Charge For SIP Transaction and when I will sell MY Units They Will Charge any extra cost for selling through HDFC SECURITIES TRADING ACCOUNT as they charged for equity transaction. They charged for Equity Transaction (Brokerage by HDFC SECS.+ Depository Charges (HDFC BANK).

    2. I can download forms from internet and submit application to Mutual Fund Houses Offices in My City. I found they have online transaction facility also. what is this facility ? is this chargeable? what are the benefits of this facility? What happen if i opt for Units in dematerialized form in my HDFC Bank De mat Account. Is Their any extra cost involve in this option.

    3. Through Kary./CAMS. How much they will charge for SIP. and same if I Opt Units Credited into MY HDFC De-mat Account. Is There any Extra cost Involve. Or I should Choose Online Transaction Facility Only. Or Only in Physical Form.

    1. SBI Magnum Global -Direct
    2. Franklin India Prima Plus-Direct
    3. HDFC TOP-200- Direct
    4. ICICI PRUDENTIAL DYNAMIC – DIRECT
    5. IDFC PREMIER EQUITY-DIRECT
    6. BIRLA SUNLIFE Frontline Equity -DIRECT.

    1. Ashish-You are claiming to start Direct plans. If so then why you are opting your HDFC Securities demat account? In my view it is more costlier than normal plan. Because they get normal commission from mutual fund companies and above that they will charge you per SIP. Then this seems to be costlier. Never ever believe that online investment in mutual fund means a DIRECT investment. The only way if you are eager to start directly means visit to respective mutual fund companies, start investing. Afterwards you have option to do investment online from respective mutual fund company sites. In my view Karvy/CAMS may not charge you anything as your HDFC Securities demat account. But it will be direct plan. Hence physically visit to respective mutual fund companies and start.
      SBI Magnum Global (Mid and Small Cap)-Better to go with IDFC PREMIER EQUITY.
      Franklin India Prima Plus (Large and Mid Cap)-Go ahead.
      HDFC Top 200 Fund (Currently Large Cap)-Choose Franklin India Bluechip Fund.
      ICICI PRUDENTIAL DYNAMIC (Large and Mid Cap)-Choose between this fund or Franklin India Prima Plus (any one is enough).
      IDFC PREMIER EQUITY (Mid and Small Cap)-Go ahead.
      BIRLA SUNLIFE Frontline Equity-Large and Mid Cap-Better to go with Franklin India Prima Plus than this fund.

  305. Dear Mr. Basavaraj,

    Thank you for the informative article. I’m glad I read it at the right time. I have been a SIP investor for last 10 years. Had started with Franklin Blue Chip and Birla Dividend Yield Plus then. In the last 5 years have added the following on SIP
    HDFC Tax Saver
    L&T Equity Fund
    L&T Tax advantage
    Reliance Growth
    HSBC Equity
    HSBC Emerging markets

    For some reason, I couldn’t renew the SIPs last year and now I’ve decided to renew from April.

    So was seeking your opinion on the above portfolio, do you feel the above is a good enough to continue or would you recommend any changes.

    I’m looking at a tenure of 10 years and open to high risk. Seek your advice.
    Thanking you
    Raj

    1. Raj-HDFC Tax Saver-Continue if you feel requirement for Sec 80C. L&T Equity Fund (Large and Mid Cap Fund)-Switch to UTI Opportunities Fund. L&T Tax advantage, no need to have one more tax saving. Reliance Growth (Multi Cap Fund)-Switch to Reliance Regular Savings Fund. HSBC Equity (Large Cap)-No need to continue, switch to Franklin India Bluechip Fund. HSBC Emerging markets (International)-Better to come out and concentrate on diversified fund. Because it is very difficult for a common man to track the economic conditions of Globe. Birla Dividend Yield Plus (Mid and Small Cap)-I don’t think it is wise decision. Better to switch to IDFC Premier Equity.

          1. Dear Mr. Basavaraj,

            Thanks again for your guidance. I have done my investments more or less on the similar lines. Would like to have your inputs on the existing investments.

            Previously had SIPs in Birla Div Yield Plus, L&T Equity and Tax Saver, HSBC Equity and Emerging Markets and Reliance Growth. Have discontinued all the SIPs in these funds. Therefore all the units accumulated till date continue to remain in the said funds.

            My query is, should I disinvest from these schemes and if yes should I simply transfer these funds to the new SIPs which I have recently started ? Or what would be the best option as per you to deal with them.

            Thank you

            Raj

  306. Hi, Can you suggest whether investing in international fund be a good option?
    which sectors to focus in 2014?

    1. Piyush-Are you able to track the international economic updates regularly? If so then you can otherwise I don’t think it is wise to invest blindly. I am not a big fan of international funds as it is very difficult to follow up the economic conditions.

  307. Hi Basu!!!

    This is pradeep shukla from noida. I am beginner so I have no good idea how mutual fund works however I read your article and other articles to understand many thing about mutual fund. I want to invest 2000 pm in Large cap for 5-10 years (I can increase my invest as per profit per year) using SIP. I found the below two large cap that looks good for investment.

    a) Could you please suggest me if the given below large cap is fine for only 2000 pm investment
    b) Also please let me know which fund should I use ICICI or Franklin and why ?
    c) You can suggest me for other fund as well.
    d) I should invest when fund is in loss or when fund is in gain or any time as its for long term investment?
    e) How much percent i can return if i invest 2000 only for 5 year and for 10 years in any fund that you suggest for me.

    1) ICICI Pru Focused BlueChip Eq Fund-Reg(G)
    2) Franklin India Bluchip Fund

    Thanks for your nice article.. 🙂

    Waiting for your reply….Thanks in advance.. 🙂

    1. Pradeep-You can go with Franklin India Bluechip Fund. Because it is oldest fund than ICICI and performing well since long. You can’t time the market, hence start investing immediately. Because no one knows what lies in future. The best advice is to start investing immediately, stay for long and never panic when market dips or rise.

      1. Hi Basu!!!

        Thank you so much for your reply. 🙂

        I have some ques here:

        Other websites suggest ICICI over Franklin, they have given Franklin India Bluechip Fund (G) to average rating (3 star ) however ICICI Pru Focused Bluechip Eq Fund-Direct(G) to good rating (4-5 star), also they are saying that ICICI will give high return than Franklin. I am little bit confused here. Can you please suggest ?

        What average percent ICICI will return if I invest only 2000 pm for 5 year or 10 years and What average percent Franklin will return if I invest only 2000 pm for 5 year or 10 years ? Which one can give the high return ?

        You suggested Franklin because this is the oldest fund than ICICI, any other reason (Except oldest fund) to choose Franklin over ICICI fund ?

        Sorry if my queses are wrong but I want to know everything that can clear my confusion and help me to invest in right direction.

        If you can give some other information like how to choose mutual fund, when use SIW in investment duration,other info about mutual fund…..If you have a link that can explain everything about mutual fund please share with me… I will really appreciate you.

        1. Pradeep-The rating site which is currently giving good points towards ICICI may change it’s view suddenly after few months. Then what you will do? Do you again churn your portfolio in alignment of that site? I strongly believe that Franklin is a wonderful product which consistently given good returns. So now it is your call to take and act. How much each fund will give you can be easily be predicted by above table where I mentioned past performance of each fund. There are lot of things which will come into picture while selecting a fund like expense ratio, capability of company, how they care about investors, how old is company, alpha, beta or standard deviation. So you are welcome to learn each of these technicalities then start investing.

  308. I am 37. Monthly income 7 lacs. Two Children aged 6 yrs and 1 yr. I want to build up my savings for my children’s future requirements. Planning to start SIP for that, amount 10k per month. Kindly suggest what Mutual Funds should i go for?
    Currently I am not saving anything except my EPF.
    Pls advise

    1. Ajit-Good to know that you planned to invest for your kids future. But before that let me know whether you have term insurance, health insurance, emergency fund and accidental insurance are already bought? If NO, then first buy them immediately and create emergency fund. Once these are in place and still you have surplus then you can start immediately investing into mutual funds. I will wait for your reply to discuss and guide you further 🙂

  309. I do not know much about mutual fund but after reading few on-line article, I want to invest around Rs. 5000 in mutual fund as SIP. But I do not know where to go i.e how to start. I prefer online SIP. In google search I got one website called http://www.fundsindia.com/? where they are offering online SIP but min amount was Rs. 5000. I desperately need advice whether to join SIP in fundsindia. My age is 47 at present i do not have any matual fund exposer. My current incest is Bank Fixed deposit, PPF, EPF and Post Office small saving scheme. In fundindia I find auto planning of SIP only we have to choose risk factor like aggressive, normal etc.

    1. T K Singh-Equity investment is something which you need to enter only if your waiting period is long term like 10 years or more. Again if you have no prior mutual fund experience then you can go ahead with adviser either online (like FundsIndia) or offline within your location. Once you learn about this investment in a better way then you can move to direct plans, which are cost effective than normal plans (as there will no middlemen expenses). But as of now I suggest you to go with middlemen and must have long term perspective of investment.

  310. Hai basavaraj,
    please let know the best 5* rated fund for SIP 1000/month. i’m purely looking for profit focus fund. i’m ready to take minimum risk. kindly suggest me on this.

    Thanks,

    1. ErodeSankar-What do you mean by 5* rated funds? If your fond of such star rating then you will find such funds on mutual funds related sites. Please do visit and invest. But remember that these ratings will change frequently. So think twice what if after your invested STAR RATED funds not perform well without any STAR RATE? Please first learn the basic things like why you are investing, what is your time frame, whether other important aspects like life insurance, emergency funding or health insurance are in place. Also I am unable to understand what do you mean by “Minimum Risk”? Whether it is time based or return based?

  311. Dear Mr. BasuNivesh,

    I have just started SIPs for the following funds two months ago,

    1. SBI Emerging business fund – direct (G)
    2. Franklin India smaller companies fund – direct (G)
    3. HDFC Mid-cap opportunity fund (G)
    4. Religare invesco Mid N Small cap fund (G)
    5. Franklin India bluechip fund – direct (G)
    6. ICICI Pru focused bluechip equity fund – reg (G)
    7. Franklin India Flexi cap fund – direct (G)
    8. ICICI pru dynamic plan – reg (G)
    9. Mirae Asset India opportunities fund – reg (G)
    10. SBI Dynamic bond fund – direct (G)
    11. Templeton India Income opportunities fund – direct (G)
    12. SBI Gold fund – reg (G)

    I have selected these funds from reading artciles and star rating and recommended funds from websites. My goal is long term atleast 10 years. My SIP is Rs. 1000 per fund per month. I would like to have your expert opinion / advise whether I have too many funds selected or not. If yes, what are funds I can drop and what are the funds I can continue. Any other best fund I can add. Please advise.
    Thanks, Regards, Manikandan

    1. Manikandan-Why so many funds? But only positive point I noticed is, you opted for direct plans. At the same time, instead of giving you ready made answer, I try to give you some work 🙂 First figure out the funds which have in same category like large cap funds or large and mid cap funds so on…Then come up with the funds you want to retain yourself. Once you do this activity then post a comment with final choice of your funds, then we finally discuss on this. I hope this too will be good learning for you too.

      1. Dear Mr. BasuNivesh,

        I have Segregated into different category as indicated below,

        Large Cap Franklin India Bluechip Fund – Direct – Growth
        Large Cap ICICI Pru Focused BlueChip Eq Fund-Reg(G)

        Small & Mid Cap Franklin India Smaller Companies Fund – Direct – Growth
        Small & Mid Cap HDFC Mid-Cap Opportunities Fund(G)
        Small & Mid Cap Religare Invesco Mid N Small Cap Fund(G)
        Small & Mid Cap SBI Emerging business fund – direct – growth

        Diversified Equity Franklin India Flexi Cap Fund – Direct – Growth
        Diversified Equity ICICI Pru Dynamic Plan-Reg(G)
        Diversified Equity Mirae Asset India Opportunities Fund-Reg(G)

        Dept funds SBI Dynamic Bond Fund – Direct Plan – Growth
        Dept funds Templeton India Income Opportunities Fund – Direct – Growth

        Gold fund Gold mutual fund – regular plan (growth)

        But, I do not have much idea how to eliminate funds or select from the funds I have. As seen from your advises probably I can drop SBI emerging business funds. As I want my portfolio to be balanced, I still want to continue with dept funds. But, I am not sure whether the above two (2) dept funds are performing well or yet there are other better dept funds available than these two. If you can advise me what are the things I need to analyse to select or drop equity funds.
        Thanks
        Regards,
        N. Manikandan

        1. Manikandan-Now after this, ask yourself whether you are actually diversifying your investment properly or not? Selecting funds based on rating is good but at the same time first understand where your are investing. To me, with around 5 funds you can create a better portfolio than having too many so called “RATED” funds. Let me know why you included Debt funds in your investment of mutual funds. Is there any logic behind this? Also what I noticed is, you have too many mid and small cap funds, which is riskier. Hence restrict your fund of this category. Please once again do your homework and let me know what you learnt from this next activity. I will help you choosing the funds, don’t worry about that. But my only motto is to make yourself understand the investment rather than blindly following either me or others.

          1. Dear Mr. BasuNivesh,

            I have included the debt funds to keep certain allocation ratio in equity, debt and gold to minimize / balance the risk. This is what I have understood from my reading in mutual fund articles. Accordingly I have included debt and gold funds. If this understanding is not right, please advise.
            I will do some home work and come back to final selection of funds with the reasons.
            Thanks
            Regards,
            N. Manikandan

            1. Manikandan-Good to know about diversification, but restrict your debt portion based goals rather than overall portfolio %. Sure, I will wait and we discuss further. I know it is bit irritating for you. But I am trying to educate you in better way. Hope you understand it.

              1. Dear Mr. BasuNivesh,

                I am trying to analyse the funds to choose and retain funds from what I have selected and listed in my previous comments. Since, I am beginner I unable to conclude. When I see fund fact sheets, I come to know about “Standard Deviation, R-squared, Beta, Sharp ratio, expense ratio, portfolio turnover, fund asset allocation (sector), performance by returns based on benchmark and ratings”. Can I choose fund based on the above latest data. I found performance (return) wise year to year, there are difference in all funds. I bit confused. Can you hint me how to narrow down to select the fund.
                Thanks & Regards,
                N. Manikandan

                1. Manikandan-Do simple work. Follow the above funds what I suggested. One fund from each category and start investing in direct plans. Review it yearly once. You need to choose the funds based on such terminologies. But for beginners like you, it will be difficult. Hence choose the funds which are since long, performing well continuously and well managed by brand mutual fund companies.

                  1. Dear Mr. BasuNivesh,

                    Thanks for the advise. I will follow your advise to choose one fund in each. However, I have already started my SIP for those 12 funds. Can I know what are the fund I can continue or I have to stop other than funds already in your list (eg. franklin india bluechip and ICICI pru focused bluchip). If I continue SIP for the above two large cap funds, am I really overlap and adding up my risk as both are large cap or it does not matter to have more than one fund in large cap. Same can be followed for mid & small cap? what is the ratio may be followed between large cap and mid & small cap for long term.

                    I am planning for long term (minimum 10 year), so do I really need to include dept portion in folio or I can restrict only large and mid & small cap funds.

                    Please advise.

                    Thanks
                    Regards,
                    N. Manikandan

                    1. Manikandan-Choose Franklin India Bluechip Fund Growth (Large Cap), HDFC Mid Cap Opportunities Fund (Mid and Small Cap), Mirae Asset India Opportunities Fund (Large and Mid Cap Fund), instead of debt fund choose the balanced fund equity oriented like HDFC Balanced Fund. Gold Fund, as you said, restrict to 10% of overall portfolio. Rest distribute equally among all the funds.

  312. Sir,
    I have been investing in ICICI pru focused blue chip (5000/month)and Quantum long term equity (5000/month) for last 1 years. I would like to add one mid & small cap fund in my portfolio. Could you please suggest whether I will go for HDFC mid cap opportunity or IDFC premium equity. Also please suggest what will be % amount to be invested in mid & small cap fund.

    Thanks,
    Nirmal

    1. Nirmal-Better to go with IDFC Premier Equity. How much towards this fund depends on many things like how far your goal and your risk appetite as mid and small cap funds are riskier than large cap funds. Hence unable to quote specific standard.

  313. I also have a SIP in SBI Emerging Businesses Fund – Regular Plan – Growth since Jan 2013. I am not getting expected growth here, Should I change that SIP to some other fund?

  314. I have invested some amount for long term saving in Debt find SBI Magnum Income Fund – Regular Plan – Growth but not getting good returns. Should I keep my money there or should I switch. I am looking for 10-15 years period.

      1. Hi Basavaraj,

        Thanks for your reply. I just wanted to avoid market risk for a fixed gain. Please suggest where to invest.

        My Current portfolio is:

        SBI Magnum Income Fund: 2L one time
        SBI Emerging Businesses Fund: 4k monthly
        ICICI focused Bluechip: 4k monthly

        I am thinking of investing 2L more in a debt fund and 4k more in SIPs. Please suggest what to neglect from current portfolio and what to opt for?

        1. Akash-When you have long term investment perspective then you can easily take the calculated risk by investing in well diversified funds. For long term, choosing income fund is not a great idea. If you feel so unsecured about market, then why can’t you invest in PPF which more tax efficient than income funds? So in my view, income fund and SBI Emerging Business are not best options.

          1. Hi Basavaraj,

            Thank you very much for prompt reply 🙂

            I am thinking of following change as per your replies on other comments:

            ICICI focused Bluechip: 4k
            UTI Opportunities: 4k
            ICICI Pru Discovery Fund – 2K
            SBI Pharma – 2K (or any other Pharma fund based on your recommendation)

            Birla Sun Life Medium Term – 2L (Do you suggest any STP there?)

            May be in:

            IDFC Premier Equity Fund-Reg(G) -2K
            HDFC Balanced Fund(G) -2K

            please suggest.

            Thanx in Advance
            -Akash

            1. Akash-I suggest you to drop UTI Opportunities fund and select Birla Sunlife Frontline Equity and do STP from the existing debt fund (Birla Sun Life Medium Term). I am not comfortable in going with sector funds like pharma or banking. Instead my fund is pure diversification. So better to avoid sector funds and concentrate on diversification.

  315. Hi Basavaraj,

    I like to invest 3000 Per month for 3 years.i would like to divide the amount in 2 funds. It should serve my tax saving purpose also. and also i expect decent returns. i m much confused with lots of plans. can you pls guide us? Thanks

  316. Hello Srikanth very good article. Below are my current investment, could you please guide me on realigning my MF investment portfolio.
    Investment on mutual fund through SIP:
    1. Reliance Gold Savings Fund – (G) — 1K, from Dec 2011
    2. HDFC Top 200 Fund – (G)– 1K , from Jan 2012
    3. DSP BlackRock Top 100 Equity Fund (G) — 1K, from Jan 2012
    4. ICICI Prudential Tax Plan (G) – 0.5 K , from Sep 2013
    5. HDFC Tax Saver Plan (G) – 0.5 K, from Oct 2013

    Investment on mutual fund through single investment for Tax saving:
    1. L&T Tax Advantage Fund – (Div) – 20k, march 2011
    2. BSL Tax Relief 96(G) – 20K, march 2011
    3. LIC Nomura MF(G)-20K, march 2011
    4. Canara Robeco Equity Tax Saver Fund – (G)-10K, Dec 2011
    5. HDFC Taxsaver – (G)-20K, Jan 2012
    6. ICICI Prudential Tax Plan-(G)-20K, Jan 2012
    7. DSP BlackRock Tax Saver Fund-(G)-10K, april 2013
    8. ICICI Prudential Tax Plan-(G)-10K, april 2013
    Please review my mutual fund portfolio and provide your valuable suggestion. Is it good or I needed to make some changes?
    Further I also want to start 2k SIP for tax saving purpose, please suggestion which one would be the best one.
    I also need to invest approx. 20k for current financial tax saving purpose please suggest best option for this also. Can I discontinue or withdraw partially from my an existing portfolio and switch this amount for tax saving purpose of current financial year? Hope for your corporation and thanks in advance.

    Thanks
    Amit

    1. Amit-First of all my name is not Srikant, but Basavaraj 🙂 May I know what prompting you to only think about tax saving? How much insurance coverage do you have? How much EPF contribution from your side?

      1. Basavaraj sorry for calling by wrong name. I have 10 L insurance coverage as a term insurance. And I have plan to purchase 1 more term insurance plan next year. I also have account in PPF. I have Average 12k annualy EPF contribution from my side.

        1. Amit-It’s alright 🙂 Ideal insurance coverage should be around 15-20 times of your yearly income+Any Loan+Your future commitments towards your dependents (Like education or marriage of kid). In my view give priority first towards buying term insurance. If you buy it next year then it will cost you more than buying today.

        2. Amit-Whatever the tax savings funds (which are locked free), move them to HDFC Top 200 Fund, Franklin India Bluechip Fund and IDFC Premier Equity Fund equally (If amount is larger then opt for liquid fund in respective fund companies and request for Systematic Withdrawal Plan to the above said funds). We can’t do more to the funds which are still in locked stage. So wait and watch for those funds. In my view PPF is better option than Gold Fund. So better to come out of that plan. This PPF investment+EPF+Term Insurance premium will actually help you in tax saving option of Sec 80C. Let me know your view too 🙂

          1. Thanks for your valuable advice. I understand that you want to say that I should more focus on PPF, EPF and Term insurance instead of Tax saving mutual fund for tax saving. And it is better for me to invest in open mutual fund using SIP for long term am I correct?

            1. Amit-I pointing that your investment motive should not be only tax saving, but it need to match your financial goals. In your case you don’t have term plan and you can easily achieve Sec 80C by buying term plan, EPF and some portion into PPF and ELSS. I am not saying that ELSS are bad product for tax saving. But let your investment should be diversified.

              1. Thanks Basavaraj , as per advice I will buy new online term insurance soon. Your opinions are really very genuine, thanks for providing such a great platform online…
                I would like to ask two more questions from you:
                1) As you know currently I have 2 ELSS for tax saving. 1) ICICI Prudential Tax Plan (G) @500 per month 2) HDFC Tax Saver Plan (G) @500 per month. But also I want 2 k ELSS, aim of tax saving and long term goal, I prefer ELSS as it will be deducted directly from account and there is no burden of tax saving at year end. Can I increase amount in these existing ELSS or will purchase another one please suggest.
                2) I also have 3k ELSS for targeting my middle and long term goals mentioned. I already get feedback from you for reliance gold. Please could you provide suggestion on remaining two are these good or would you like to suggest some better option.
                a. Reliance Gold Savings Fund – (G) — 1K, from Dec 2011
                b. HDFC Top 200 Fund – (G)– 1K , from Jan 2012
                c. DSP BlackRock Top 100 Equity Fund (G) — 1K, from Jan 2012

                1. Amit-If your Sec 80C is not yet fulfilled then you can go ahead. But at the same time don’t over exposure yourself towards ELSS, otherwise try products like PPF. Exit from Reliance Gold, continue HDFC Top 200 and move DSPBR Top 100 to above said large cap.

  317. I would like to invest Rs 2000 per month for next 5 – 10 years. Please suggest which fund do I need to invest into.
    I am a 29 years old professional earning around 28000 p/m.

  318. Hi,

    I currently 28yrs, planning to start SIP. My initial plan to invest 10K per month in MFs from March 2014 for next 5 yrs. I have selected 4 funds as follows;
    1) ICICI Pru Focused BlueChip Eq Fund-Reg(G)
    2) IDFC Premier Equity Fund-Reg(G)
    3) HDFC Mid-Cap Opportunities Fund(G)
    4) HDFC Balanced Fund(G)

    I need your valuable advise on
    1. Have I selected the correct MFs for my portfolio ? please suggest in anything need to be updated..
    2.Can you please help me to divide this 10K into the above funds?
    3. Is 5 yrs duration is correct time span for this funds?
    4. Suppose I need some cash after 3 yrs, I have 50K as FD. Should I invest in some MF and expect a better deal than FD in 3 yrs? If so what is the MF do I look for?

    Thanks in advance. You are doing a great job 🙂

    1. Saikat-
      1) They are good and you can go ahead but why two mid cap funds (IDFC Premier Equity and HDFC Mid Cap Opportunities Fund)? Choose any one.
      2) Include UTI Opportunities Fund (Large and Mid Cap Fund) and then divide Rs.10,000 among ICICI Pru Focused Bluechip, UTI Opportunities, IDFC Premier Equity and HDFC Balanced Fund.
      3) Please have a look of more than 5 years if you are interested to proceed.
      4) If you have time horizon of 3 years then don’t invest in any of the above said funds. Equity investment is only for long term goals. Hence sorry to say that don’t go ahead with 3 years time horizon.

      1. Hi Basavaraj,

        Thank you for the guidance.
        I chose 2 mid caps for playing little risky. Any ways thanks for clearing my doubts.
        I see some other Large and Mid Cap Funds apart from UTI Opportunities Fund,like Mirae Asset India Opportunities Fund-Reg(G) and Canara Rob Eq Diver Fund-Reg(G) which has been doing good for last 5 yrs and more. Please suggest what will best?
        Since I am fresher in this market with limited knowledge, can you please help me to distribute the 10K in the final 4 funds which will be best in long run for me.
        Thanks again. I will include my friends to follow this and get the misconception of MF’s cleared. It helped me.

        1. Saikat-One way you are stating yourself as fresher and in another statement you claim to be ready to take risk. My advice is play with the funds which I recommended in my previous comment. May I know the reason behind neglecting UTI Opportunities Fund? My favorite is UTI Opportunities, but it is left with you to choose according to your comfort.

          1. Hi Basavaraj,

            Thank you very much.
            I had no intention to neglect UTI Opportunities Fund. I was just comparing some other funds in same category which has been performing well over last 5 yrs.
            Yes, you are correct, I should not be too aggressive at start. I will go as suggested by you.
            1) ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 3K
            2) UTI Opportunities Fund(G) -3K
            3) IDFC Premier Equity Fund-Reg(G) -2K
            4) HDFC Balanced Fund(G) -2K
            This sharing of 10K is fine or shall I change the shares among this funds?

                1. Hi Basavaraj,

                  Hope you are doing well. Again I will appreciate your good work. Please carry on 🙂
                  As suggested by you, I have already started SIPs on 4 funds : ICICI Pru Focused Bluechip, UTI Opportunities, IDFC Premier Equity and HDFC Balanced Fund with total of 10k per month. I can see an opportunity of adding another 2K per month.
                  Can you please suggest the fund, apart from this 4 on which I should add?

  319. Hi,

    I currently hold the below SIPs. My time frame is 10-15 years.
    HDFC EQUITY growth – 2000 pm
    IDFC Premier Equity growth- 2000 pm
    ICICI Focussed Bluechip Growth – 2000 pm

    need your valuable advise on
    1. Should I retain HDFC Equity ? or please suggest a fund to diversify my portfolio.
    2. Currently I am investing 6k pm. I want to increase to 10k. Should I opt for any more fund
    3. You have suggested to switch to a better performing fund if fund is not performing. My question is how do I switch. Redeem the entire amount and then start a new investment in another fund? What about the money I get my redeeming from under performing fund?

    1. Priya-I have bit concern regarding HDFC Equity, hence suggest you to move to UTI Opportunities fund. You can add one more fund for Rs.2,000 with Reliance Regular Savings Fund and rest amount you can increase in existing SIPs. Switching is the last resort if the fund continuously under performing. Because if you switch frequently then the cost of investment and taxation (if it is LTCG) may affect your investment growth. Hence do your review once in a year. Switching means redemption from the existing fund and re-investing the same in better fund. You may feel received less by under performing fund, but in long this switching will actually benefit by moving to well performing fund.

        1. Priya-Selecting UTI Opportunities fund over Quantum Long Term Equity have few reasons (even though Quantum Long Term Equity have low expense ratio of 1.25% versus UTI’s 2.18%). Reasons are-Higher Sharpe (UTI-o.13 Vs Quantum-0.05) and beta (UTI-3.10 Vs Quantum-2.18) ratios and product is from one of the best and oldest fund house.

  320. Hi basavaraj.Great article with nice and accurate content.
    1)Should one include balanced fund in their portfolio along with large,mid and small cap.
    2)i understand that equity is for longterm.but what funds do u suggest below 5 yrs waiting period for some good returns?

    1. Philip-
      1) Balanced fund is required to maintain some exposure towards debt. It again based on one’s goal and risk taking ability.
      2) I strictly say NO to investors who’s time horizon is less than 5 years. I suggest them debt funds, RDs or FDs.

  321. Hi Basu,

    I Am working as a software Engineer and earning around 30K/ Month. My age is 22.

    I have FD of about 1 Lakh at the rate of 9.10 % at bob, for some emergency needs.

    I have Educational Loan having around 2 Laks, which i am paying around 10K/ month.

    I like to start investing in some funds for some long period ( 5 – 10 years).

    Please suggest how can i proceed, i am not aware of any investment options.

    thanks,
    Raj.

    1. Rajasekhar-I am repeating again and again the same thing. Now you said that you have emergency funding in place. Next to buy term insurance to the tune of 15 times of your yearly income. Get rid of the loan you owe as much as possible at the earliest. Then from remaining fund, if your timing is less than or equal to 5 years then start investing in RDs or Debt Funds. If it is more than 7 years then start with the above mentioned balanced fund at the start. Once you are comfortable with mutual fund investment then move to large cap fund of above said funds.

  322. Hi Basu,

    First of all, Thank you very much for such informative blog.

    I have a term insurance with LIC for about 25 lakhs for which I am paying 12000 per annum.

    I have money back policy from LIC which I have taken long time back through which I have around 2 Lakhs cover.

    Through SBI smart ULIP (i paid 5000 per month for about 3 years, no more payment now but stay invested in it), I have around 3 Lakhs cover.

    I have a running home loan (outstanding 22 Lakhs) for which paying around 30000 per month EMI and bought a insurance cover for this loan from SBH itself.

    From my company, I have life cover around 40 Lakhs

    I have SBI pension plan 18000 per year

    I have SBI child plan 18000 per year

    HDFC Equite Growth monthly 3000 (Since last 8 MONTHS)

    Running car loan 11000 per month

    RD of 15000 per month since last one year

    RD of 5000 per month since last 3 months

    Observing my portfolio, I am aware that I am underinvested in Mutual funds.

    I will become 34 yrs by May 2014.

    Can you suggest few funds to re-align my portfolio? I do not more funds available for investment other than what I save in RD.

    My wife is little skeptic about investing in Markets and hence forcing me to stay away from it and instead go with Banks’ RD instruments.

    I am planning to stop LIC term insurance and instead will buy HDFCClick2protect for 1 crore by April 2014.

    Can you please suggest me any new good funds and amount that is to be invested? If you feel, I should save more, advise me on this so that I can see whereelse I can save some money for those investments. I felt one crose is enough as I have cover to my home loan. Is this correct planing? Is HDFCClick2protect is a good plan for term insurance? If not, kindly suggest someething better.

    I have a goal for closing my housing loan in another 8 – 10 years. I want to select one MF for my retirement planning as well. In other MFs, I wil be discliplined and will stay invested for 10 years minimum.

    Last but not least, My monthly take home is 1 lakh and houseshold expenses is around 25K.

    Looking forward to your suggestion.

    Bala

    1. Bala-It is very difficult to explain all my suggestions and recommendations on this platform. Hence you need to mail me @ [email protected]. Because you shared all information of your financial life and and looking for my view and guideline, this will be very difficult and not worth to guide you in detail on each plan or product.

  323. Hi, my current age is 32 years. My annual income is around 4-5 lacs , currently I have to repay home loan of Rs 7 lacs(taken 6 months back) and I have insurance of LIC(20000 rs yearly premium around 4-5 lacs insurance) and Health insurance plan of company. I don’t have any childrens yet. I am planning to invest in icici Prudential Focused Bluechip Equity Fund monthly I want to invest for around 5-7 years so do you think this is the correct option ?

    1. Vijay-First thing I noticed is, you have low insurance coverage. Hence fill that gap with around 15 times of your income+loan amount by buying proper pure term plans. Second thing you have time frame of around 5-7 years then I don’t thing it is wise to enter equity. Equity investment is for long term investments. Hence better to choose the different product like RDs or Debt funds rather than equity funds.

      1. Thanks Sir for your reply you are doing good job , I will probably buy term plan(it was somewhere at the back of my mind for long time but I ignored it) +Health insurance plan. I could even plan to invest for long term(may be more than 7 years) i did some research and most of the analyst suggest the blue-chip fund(icici pru). so now with the current scenario(after taking insurance) do you think it is ok to go with icici blue chip(i have one FD also and 2PPF accounts around 2 lacs in account)

        1. Vijay-Why you are comparing your insurance buying with investment in mutual funds? They are totally different two products with different aspect in one’s financial life. You can go ahead with ICICI Pru Bluechip, but I still remind you that equity investment is for long term.

  324. Dear Sir,

    Below are my current investment, could you please guide me on realigning my MF investment portfolio.

    investment on mutual fund through SIP :_
    1. HDFC Prudence Fund (G) — 2K
    2. DSP-BR Top 100 Equity – RP (G) – 1K
    3. HDFC Top 200 Fund (G) — 2K
    4. ICICI Pru Discovery Fund (G) – 1K
    5. IDFC Premier Equity – A (G) – 2K
    6. UTI Opportunities Fund (G) — 1K

    All these above funding running on SIP mode for more than 2.5 Year except UTI (5months)

    I have too PPF(6K monthly) and RD (3K monthly)
    I have one lic bima gold.

    Could you please help me on realign my MF portfolio, thanks in advance.

    Also, i am planning to increase my monthly 9K mutual fund to 11K, please let me where to use rest 2K in which fund?

    Also, i wanted to buy a car (20k monthly i can arrange next two year), please let me where can i use it so that i can optimize my investment in order to afford to buy a car (car cost less than 8Lakhs)

    Thanks
    Raj
    [email protected]

    1. Raj Kumar-My suggestion will be as below
      1) HDFC Prudence (Balanced Equity)-Continue
      2) DSPBR Top 100 Equity (Large Cap Fund)-Move to Franklin India Bluechip Fund
      3) HDFC Top 200 Fund (Large Cap Fund) Currently under performing. But I still recommend you to continue as this is one of the longest and continues performed fund.
      4) ICICI Pru Discovery Fund (Mid and Small Cap)-Continue
      5) IDFC Premier Equity (Mid and Small Cap)-Either retain this or ICICI Pru Discover Fund. Having two funds of same asset class will not save any purpose.
      6) UTI Opportunites Fund(Large and Mid Cap)-Retain it.
      Use the additional Rs.2,000 towards the above said large cap fund Rs.1,000 and in large and mid cap fund of Rs.1,000.
      But when you want to buy the car? Any time horizon fixed for this?

      1. Dear Basavaraj,

        Thanks a lot for your guidance… 🙂

        1. As you suggested and looking into current portfolio performance, i will stop ICICI Pru Discovery Fund but IDFC Premier Equity will be continued. Here one advice need, do I need to invest discontinued ICICI Pru Discovery Fund monthly amount on IDFC or any new fund from this category you will advice me?

        2. Again, on large cap, i will discontinue DSPBR Top 100, same amount plus 1K will put on Franklin India Bluechip Fund. Here one more fund coming into my mind like ICICI Prudential Focused Bluechip Equity Fund, how about it?

        Another question like, when I am discontinuing any fund, do I need to sell all units from that fund or I should keep it unit I get good return on it or till my investment period achieved? how it works?

        Here, my investment time horizon is around 10 years, all these money i am keeping for my retirement. Also, I will increase my monthly SIP amount by 10/20% yearly for next 10 years.

        Regarding to buying car, I am planning for it around Dec 2016 or it can be extended because i am moving to USA in a month or two on long term.

        Thanks
        Raj
        [email protected]

        1. Raj-I don’t how why you are adding spree of mutual fund products to your portfolio. If you go on adding number of funds then it will not give any purpose of either better diversification or better return. If the redemption amount from existing fund completed one year then simply switch to new funds (more than one year means no tax). If your car buying goal is too short then my suggestion will be to invest in RD.

  325. Dear Sir,

    Good Morning,

    I am Naman Chilwal age 24 years. These are few information regarding me.
    – I am currently working in private sector with a monthly salary of 30000 in hand.
    – I have monthly expenses of 10,000.
    – I have a education loan which I am repaying and there is still 1,50,000 Rs left.
    – I pay every month 10,000 Rs in the edu. loan. And wish to repay it asap. Its ROI in 8%.
    – I have mediclaim policy worth 2 lakh from my employer.
    – And a life insurance of about 40 lakh from the employer.

    Now my questions:
    1. Whether should I invest right now or should I first repay my edu loan with all the money I am left with after my monthly expenses ? Because it seems a burden to me.
    2. Otherwise I want to do a long term investment in MF’s. So please tell me which to go for and how much to invest? And want to get a return more than 15%.
    3. I have opened PPF this in 2013 as have invested 15000 till now.
    4. I want money for my marriage at age of about 27-28. How to save for that ?

    Also I want to tell you that my father works in SBI so If i invest through him in Fixed or term deposits I get 10% interest. So please advice me considering this option also.

    Please help me to get my investments in place. It would be a very great help for me.

    Thank You in advance.

    Naman Chilwal
    M: 9099058549
    [email protected]

    1. Naman-1) First have pure term insurance on your life (approximately around 15-20 times of your yearly income), even if your employer providing this currently. 2) Buy health insurance for you and your family (again even if your employer providing this insurance). 3) Create an emergency fund of atleast 6 months expenses. 4) Start to increase your EMI towards education loan for another Rs.2,000 (so monthly outgo towards this loan will be Rs.12,000). 5) From the rest amount of Rs.8,000 (less your insurance+emergency fund), start investing in RD for your marriage expenses. 6) Once you come out of loan then start investing for your long term goals such as retirement.
      It is good that if you invest through your father then he will earn 10% return on FDs, but what about taxability? Can you please elaborate more about this plan? If you still need any help then mail me.

  326. Hi I am nitesh Jain, want to know that is it the right time to invest in sip. I want to invest 5k . if yes than which funds should I switch for investment. Plz help-

    1. Nitesh-If you have long perspective like more than 7+ years then starting now is the right time 🙂 Select one fund from above sectors and start investing. But it must be for your long term investment.

  327. Hi,
    For the past 2 and a half years I am investing in the following funds.Please let me know if I can continue with the existing ones?
    1) ICICI Focused bluechip equity fund – Rs.2000
    2) ICICI Discovery fund – Rs.2000
    3) HDFC Top 200 fund – Rs.1000
    4) HDFC equity fund – Rs.2000

    Shall I redeem the accumulated amount from all these funds once after the completion of 3 years of investment and invest the lumpsum in any tax saver funds? Then start of with new SIPs.
    Or should I continue investing in these funds through SIP.

    1. Rekha-Two large cap funds (ICICI Focused Bluechip Equity Fund and HDFC Top 200 Fund), one large and mid cap fund (HDFC Equity) and one mid and small cap fund (ICICI Discovery fund). So in my view retain either any one fund from large cap, move from HDFC Equity to UTI Opportunities Fund and retain the ICICI Discovery fund.
      May I know the reason behind your 3 years redemption theory? Funds are good and my suggestion will be, continue SIP for long term perspective like 5+.

      1. Thanks alot.I will go with your advice.
        Actually , this redemption option was suggested by the ICICI bank executive who helped me in opening the mutual funds.

        1. Rekha-Who decides your financial goals? You or your bank executive? They will sell today and ask you to redeem the same after few months and convert them to bank FDs with the same bank just to reach their selling targets. Today they are the real miss-selling channel to all customers. If you try to meet the same ICICI Bank executive after few years then either he will not in the same branch or bank. Hence never ever believe on anybody. Do your homework then start investing. It may take time, but start from scratch. This will be your long term solution.

          1. Thanks Sir.
            It’s been 2 1/2 years since i started ULIP – Life stage wealth plan 2.The premium is 3000 per month.
            What would be your advice on this one?

            Thanks
            Rekha

    1. Raj-If you feel and confident that Mr.Chidambaram and company or the next central government will not hinder any of PSUs then you can go ahead. They are risky in policy decision taking. That is the only negative point which may impact the companies earnings also.

    2. Hi Basu,

      I have 2 questions,

      Quest 1 :

      Under ELSS, you have mentioned ICICI Pru Tax Saver ( G ) , but came thru these 2. I’m not sure which one to choose. It would be helpful if you could explain the diff and pls suggest me the best

      ICICI Prudential Tax Plan – Direct Plan – Growth
      ICICI Prudential Tax Plan – Regular Plan – Growth

      Quest 2 :

      As i am new to MF, Could you please help me choose best UNITS to purchase under either of the above plan.

      My Husband & I have planned to invest 2000 each
      Starting : Apr 2014 ( Dates 5 , 7 or 10 )
      Lock in period : 3 or 5

      Regards,
      Shobana

      1. Shobana- 1) If you invest direct plans then there will be no middlemen involved. You need to take care of your investment like processing, service related issues or managing the fund and reviewing. If you choose the adviser then you need to invest under normal plans, where your adviser will be helpful for you in investing (if he is good in servicing and guiding you in better way). So the pain you take by investing directly will be beneficial in terms of price difference in rate (as direct plans have no adviser expenses) which in long run will make you around 1% to 2% more earning than normal plans. My suggestion is, if you are totally new to mutual funds then opt for normal plans and once you are comfortable about all the in and outs of mutual funds then you can switch to direct plans.
        2) I think my above clarification already answered your second doubt. But do remember that in ELSS lock in will be 3 years not 5 years. Instead what I am suggesting is treat equity investment as long term investment like more than 5 years.

  328. Sir,
    I have done the following investments so far.

    Rs 50000 annually on Insurance form LIC & ICICI
    have taken health insurance for my parenthave invested SIP of Rs 1000 in the belo mutal funds
    ICICI Focussed blue chip equity
    HDFC balance
    IDFC sterling equity
    SBI Magnum
    SBI Emerging business.

    planning to start one more sip please suggest one more plan or is to put something in gold etf is good.Planning for a long term goal of 7 to 10 years.

    1. Rajesh-I think you have over invested towards Life Insurance. May I know how much life risk you have from those existing policies? Do you think they are enough to take of your financial dependents in case of your absent? Please answer then we will go for investing in mutual funds.

  329. Thanks for the informative blog. I’m 42 and am looking for some SIP options. I do have some exposure to direct equity and MF’s but not in SIP mode. I’m looking at 10 year horizon and have shortlisted following funds. Please let me know your suggestions. Is this the right mix? The idea is to build a corpus towards retirement and child’s education.

    1) Reliance Equity Opportunities Fund – 5000
    2) UTI Opportunities Fund – 5000
    3) HDFC Mid-Cap Opportunities Fund OR IDFC Premier Equity Fund – 5000

    For option 3 which is better HDFC or IDFC?

    1. Mahadev-My suggestion will be Franklin India Bluchip Fund (large cap), UTI Opportunities Fund (large and mid cap) and either IDFC Premier Equity or Reliance Equity Opportunities Fund (both are mid cap funds).

  330. I am new to mutual fund and looking for long term SIP investment of INR 3000 for at least 10 years.
    kindly advice best fund or funds to invest .

  331. Hi Basavaraj,

    Thanks for your valuable article. I am investing in 04 MF through SIP since 2009:

    BSL Tax Relief’96-G: 2000 pm
    Sundaram Tax Saver-D: 1000 pm
    Religare Tax Plan-G: 1000 pm
    HDFC Long Term Advantage-D : 1000 pm

    I had to opt for ELSS because I am a Govt. employee and had tax burdens. Now, after taking a home loan, I am no longer in need for tax plans and can invest in any kind of fund.

    After reviewing above mentioned funds, I stopped Sundaram Tax Saver and started ICICI Pru Discovery growth last year. Now, I want to stop BSL Tax Relief’96 (because of its poor performance in last 4-5 years) also and want to start with SBI Emerging Business Fund-G.

    What are your suggestions? which funds shall I continue and which one shall I stop? Please suggest good replacement funds considering that I am 35, risk appetite: moderately high, time period for SIP > 10-12 years.

    Make a good portfolio for me for Rs. 7000-8000 per month.

    Thanks in advance.
    Debangshu

    1. Debangshu-Do you have proper insurance in place to cover your life risk? If not then give first priority to that product. Coming back to investing , you can choose the above listed fund and start your investment by equally distributing among all funds. But bear in mind that equity investment is for long term.

    2. Basavaraj,

      Sorry for late response. I am staring a term insurance of 50 lacs in this month. Thus I think insurance will not be an issue. Coming back to investments, I want to increase monthly SIP to Rs.10,000 from present Rs. 5000. As I stated earlier, I am no need of continuing ELSS funds. So, what is suggestion? Shall I continue the SIPs in HDFC LT ADV, Religare TAX Plan & BSL Tax Relief’96? Or, it would be better to stop them and go ahead for oter equity schemes. Following is my plan:
      ______________________________
      ICICI Pru Focused Bluechip (G)-Direct : 2000
      UTI Opportunites (G)-Direct : 2000
      ICICI Pru Discovery (G)-Direct : 2000
      SBI Emerging Business (G)-Direct : 2000
      HDFC LT Advantage-ELSS : 1000 (continue)
      Religare Tax Plan : 1000 (continue)
      Stop BSL Tax Relief’96 and switch available units to BSL Frontline Equity.
      _______________________________________________

      Make necessary corrections in my portfolio please.
      Thanks

      1. Debangshu-If you are in no need of tax saving funds, then I don’t think it is necessary to go with such funds. Again both ICICI Pru Discovery and SBI Emerging Business are mid and small cap funds. Hence choose anyone among these two. Also if possible include one equity oriented balanced fund.

        1. Hi Basavaraj,
          Thanks for making it a lot easier for me to make my portfolio. As per your suggestion, along with all those equity funds, I have stated HDFC Balanced Fund also. Now, as I have closed all the ELSS that I continued for last 5 years, I had some free units that are free from their Lock in period. Here I need your valuable suggestion:
          1. Shall I redeem the free units from ELSS and put somewhere else? If yes then suggest me where to. Shall I follow STP or simply put lump sum in a new fund? Or will it be better to put the money in any one of the existing funds?
          2. In near future, if I want to increase my investment amount by 1K/2K, which of the existing funds shall I consider first?

          1. Debangshu-1) If the existing ELSS is performing well then no need to come out. Otherwise you can move to the existing large cap fund. STP is possible if both the existing and new funds are within same AMC, otherwise it is not.
            2) No need to going to add on number of funds. With existing funds you can invest. Having too many funds will not serve any purpose. So continue increasing your investing in same funds.

            1. Hi Basavaraj,

              Hope you are doing well. I was just doing a bit of research and found out that UTI Opportunities Fund’s Market Capitalization is 85% in Giant & Large Caps. Does not this percentile (>80%) make the fund a large cap rather than being a large-mid cap? Value research, Morningstar & Moneycontrol have mentioned this fund as a pure large cap fund.

              I would like to know your point of view.

              1. Debangshu-I know that as they dynamically moved towards large cap. Such changes happens also sometime due to market capitalization of underlying stocks move high due to bull market. Also sometime due to change in theme of fund. But I still believe in their long history.

                1. Thanks Basav. I don’t doubt about the quality of the fund at all. Now, as this fund’s bias is towards large-cap in the present scenario, can you name a 2nd Large-mid cap fund (other than the QLTE in your list) which we all may consider for long term SIP investment. I hope other people who follow your blog regularly like me, will also get benefited if you choose another fund in that category for us.

                  Some of the names that are coming to my mind are:

                  1. Mirae Asset India Opportunities Fund
                  2. ICICI Prudential Dynamic Fund
                  3. Canara Robeco Equity Diversified Fund
                  4. Birla Sun Life Top 100 Fund
                  5. HDFC Equity Fund

                  Please recommend your suggestions.

  332. Hi Basu,

    Hope you are doing good

    I am trying to invest 10 to 12 thousand per month . My goal is to get a good returns after 5 years could you please suggest me the good SIP .

    Thanks
    Sameer Dokuparthi

        1. Hi Basu ,

          I am thinking to invest monthly in these SIP Plans

          Franklin india blue chip : 5000
          UTI Opportunites -5000
          Reliance Regular saving fund :2000

          Do you think these are the best options for investing ?

          Thanks
          Sameer Dokuparthi

  333. Hello Basav,

    Hope all is well.

    I am 27 and have been investing since the age of 24.I want to make a basket of investments which includes Equity/Mutual funds/Bonds, NCDs/Gold & Insurance related products.

    1) Can you please advise if the below funds i am currently investing is solid for long term and whether it requires some amendement.I am investing monthly & have choosen growth option for all of the listed funds.

    1) Reliance Regular Saving Equity – 3000
    2) HDFC Equity – 2000
    3) HDFC Prudence – 2000
    4) HDFC Top 200 – 2500
    5) UTI Opportunities – 3000

    In addition to the above,witnessing the growth in Pharma and Tech stocks in 2013 i am hopefull these sectors will lead the way further into 2014.I have invested “one time amount” of Rs.5000/ each in SBI Pharma and ICICI Technology Fund to see the outcome.

    2) Also to add Debt i have Recurring Deposit of Rs.5500 with HDFC Bank at 8.35% for tenure of 10 years and have subscribed to HUDCO Tranch 2 Bond and SREI NCD issue each for 20,000 each.

    3) Going forward i plan to invest 40-50K in Gold ( for my marriage in 2 years time),however i am confused if this is the right time to park funds in gold.

    Your valuable feedback would be very much appreciated.

    Regards,
    A

    1. A-Reliance Regular Saving Equity is multi cap fund, HDFC Equity is Large and Midcap Fund, HDFC Prudence is equity oriented balanced fund, HDFC Top 200 is large cap fund, UTI Opportunities fund again large and mid cap fund. Hence my suggestion will be to retain HDFC Top 200, HDFC Prudence, UTI Opportunities Fund and Reliance Regular Savings Equity Fund. But move from HDFC Equity to IDFC Premier Equity which is mid and small cap fund.
      Regarding your debt investment, RD is best but the return is taxable. Hence please take care of taxation part also into consideration. Instead if you have tenure of more than 10 years then you can invest in PPF which is totally tax free. I am not a fan of these NCDs until and unless they match your financial goals.
      Accumulate goal through Gold ETF rather than buying physically.

  334. hello Sir,, i have just started working , I save 10-15 thousand per month ,, i want to invest my money,, i hv read about ppf and lic, these are more of tax saving investments, Sir can u suggest me the mutual funds which have good returns with no risk? ,, considering for 5 year bracket and 10 year bracket?

    our some suggestions from your side where i should invest to get maximum risk free investments?

    thank you Sir

    1. Anubhav-If just started working then your first priority should be to have proper life risk by buying online term plan of your choice. Second is, to create emergency fund of at least 6 months of your household expenses. Third thing is, to buy health insurance for your family. Fourth will be to identify your goals and then based on that start investing.
      If your waiting period is around 5 years then better not to enter equity market. For the goal you said waiting period is 10 years, then choose the above listed funds and start investing. At the same time start PPF investment regularly.

  335. Hi Basu ,

    I am smitha , Software Engineer working in Bangalore . Earning an annual income between 4-5 Lakhs per annum .

    I have some debts currently with HDFC – Personal loan ( EMI – 8203 ( 2yrs remaining ) , Investment in KSFE Chits ( 7500 Rs ( 7years remaining ) & 4000 ( 2years remaining ) Rs ) , PPF ( 1000 ) , LIC ( 5105 Rs Qtrly ) . I have changed my company with better offer with morethan 6 lakhs per annum . So I am planning to increase my PPF ( 8000) , RD ( 10,000) and wants to start investing in Funds ( SIP mode -1000 ),I am new to the Equity based investments in funds . I need your help in selecting the proper funds ( long term ) .

    I have consulted some investment advisors , who suggest me to put in Reliance Growth fund , SBI balanced Fund etc . When i check in Rating CIRISL and other websites these funds are not a good performer last year. Bit Confused and not sure what to do .Please suggest .

    Regards
    Smitha Bijoy

    1. Smitha-Before proceeding further (I am giving you this suggestion as you shared all your investment details with me) first have proper life insurance on your life (pure term plan), then create around 6 months emergency fund and have your own family health insurance (even if you already have it from your employer). Then try to clear it off your personal loan with existing cash and liquid investments. Invest based on your financial goals. Investing Chits looks bit risky to me, but you already entered into it, so no option to continue. PPF+LIC are like debt products which gives you around 8% return. Hence don’t over invest in these products if you have long term goals. Once all these things are set right then we can discuss about investment.

        1. Ok … With respect to Chit ( Its is Kerala Government Chit) which is less risky ( in which perspective it is risky not sure ) .

          With respect to Income tax , only i decided to increase PPF ( Rs 8000) . whatelse can be done for reducing Tax .

          I am married and me & my husband is having family medical insurance . So is it really required to have life term plan ( Please suggest good plan ) and family health insurance ( Please suggest )

          1. Smitha-If your chit fund is managed by Kerala Government then I don’t have any issue. For tax saving you have other options like your EPF contribution, term insurance on your life, PPF, ELSS, Bank FDs or even home loan. So parking all your tax saving option in any one product is dangerous.
            There are plenty of online term plans available in market. You can choose based on your comfort with company and premium range. Even LIC too recently re-launched it’s terms plans and are cheaper than older plans. Details of that will be available in “LIC’s new term plans 2014-Anmol Jeevan II and Amulya Jeevan II“. Same is with health insurance also.

            1. Thanks you for the suggestion …

              I have some more clarification required with respect to ELSS &PPF …

              ELSS – how much safe is our principle amount ? can u give more information on this ELSS ?

  336. hello sir, greetings to you, i have been investing in SBI magnum Emerging Business Fund growth since past 3 years of amt rs 1000/ month now i want to invest into another fund and i have 3 choices in my mind based on your article
    1: Franklin India Blue chip Fund
    2: Quantum Long term Equity
    3: Franklin India Smaller Companies Fund
    as i already have SBI fund now i want to choose any out of above 3 so i can have mix portfolio
    its for long term gain , kindly suggest me based on risk reward ratio. i am 22 years old financial planning student
    awaiting for your response
    Thanks
    Vishal

  337. Hi Basu,

    First of all a great blog for all investors and you are doing great work.I recently started reading your blog and I am very impressed. This is my first comment.

    I started investing in mutual funds a month ago and I doubt whether I am doing correctly. Can you please have a look at my portfolio? My SIP portfolio every month is as follows.

    ICICI pru Focussed Blue chip – 1500 (Large)
    UTI Opportunities Fund – 1500 (Large)
    ICICI Pru Balanced Advantage Fund – 1000 (Balanced)
    ICICI Pru Dynamic Plan – 1000 ( Diversified)
    SBI Emerging Businesses Fund – 1000 ( MidCap)
    Birla SL short term Fund – 1500 ( Debt)
    SBI Dynamic Bond – 1500 (Debt)

    I started these a month ago and I doubt whether I invested a bit too much. I get confused when I check portfolios of these funds as I see most of them invest in similar stocks of banks or companies. Can you please suggest me if there is any overlapping in above funds and which funds to hold and which ones to remove?

    And again, Thanks for your effort.

    1. Sandy-Can you please elaborate more about this portfolio construction like what will be your waiting period and why and how you choosen each funds (in short)? Based on these I can guide you in a better way.

      1. Thanks for your reply.

        I decided to save 10000 pm from last month in MFs. My goals are for long term only > 5 yrs. I dont have any intention to redeem before this period. I already have a PPF and a RD account. So i though i will invest in more equity oriented funds. And then i decided to select one fund in each category of MFs. So i went to moneycontrol site and picked crisil rank 1 funds(at that time) in each category and started investing. But now getting doubt whether i went overboard and whether the funds are overlapping.
        I know there is one short term fund above Birla SL but i am ok to wait 3 yrs for that if its a good fund as per ranking.

        1. Sandy-If you already have investments in PPF and RD they why you choose the funds Birla SL short term Fund – 1500 ( Debt), SBI Dynamic Bond – 1500 (Debt) and ICICI Pru Balanced Advantage Fund – 1000 (Balanced) funds?
          One large cap, one large and mid cap and one mid and small call funds are enough. Too many funds selection will not provide any solution to your investment rather it creates problem.

          1. Thanks for the reply.

            Investments in PPF and RD were not big enough so i thought of taking debt funds. I will try to add the same investments into PPF and remove these funds. What about the other funds? Are these good as a combination?

  338. What is your opinion about Axis Equity Fund? Whether this is suitable for long term growth.? Recently this fund gave good return? But I am not sure whether this will continue? Suggestion Please …

  339. Good list Basavaraj. If one can invest in combination of all these funds, there is higher possibility that he or she can get good returns.

  340. I want to invest in SBI Magnum midcap fund. When I see its historical performance, it has returned better than some of above mentioned fund. Can you please share your suggestion on my choice?

      1. Hi Basavaraj,

        Thanks for reply. Yes, I have experience of investing in mutual fund and I have been investing in mutual fund since 2010. Here is my portfolio:
        1) HDFC Top 200(G) – 1600
        2) IDFC Premier Fund(G) – 2000
        3) ICICI Prudential Focused Bluechip Equity fund (G) – 1600
        4) ICICI Prudential Discovery Fund (G) – 2000

        But, I came to know about SBI Magnum midcap fund through my friends. They are recommending and saying that it has returned very good in last 3 years comparing to my above funds.
        I just wanted to know your opinion.

        1. Rahul-My only suggestion is, equity is a investment which you need to look at long term perspective. So if a fund performed well for 3 years, 1 years or for few months may not be a good yardstick to select the fund. Look for the long term track record of the fund then select it.

          1. Thanks for your quick response. Have you track or seen the performance of SBI Magnum Midcap fund?
            This fund got launched in the same year with IDFC Premier Equity fund in 2005. Moreover, it has performed better than IDFC Premier equity fund. However, my only concern is the Asset. It has very less asset (182.84 cr) than IDFC premier Equity (3,297.14 cr) .

            And Yes, I am looking for long term perspective at least minimum 5 years.

            1. Rahul-It may performed well equally. But I am little bit discomfort with SBI Mutual fund performance (when I consider while choosing the fund house to my fund selection, it may be my personal view) also SBI Midcap Fund (2.84) is bit expensive than IDFC Premier Equity (2.27).

              1. Thanks for sharing your view. you mentioned that SBI Midcap Fund (2.84) is bit expensive than IDFC Premier Equity (2.27) . How did you calculate the expensive rate SBI Midcap Fund (2.84) vs IDFC Premier Equity (2.27) ?

  341. Mr. Nivesh,

    I have just existed out of an Insurance cum ULIP plan and I was to invest the corpus and also the ongoing amount as SIPS.

    Based on your advise, I was planning to allocate both the Corpus (about 5 Lacs) and also the monthly SIP amount (Rs 25,000) as follows.

    Prudential Bluechip equity growth (20%) – Large Cap
    UTI Opportunities (20%) – Large & Mid
    IDFC Premier Equity (20%) – Mid & Small Cap

    For the remaining 40%. I was planning one of the 2 options

    Option 1

    IDBI Nifty Index Fund (20%) – Index Based
    DSPBR Dynamic Asset Allocation (20%) – NFO Balanced

    Option 2

    IDBI Nifty Index Fund (20%)
    HDFC Balanced (20%)

    Pls let me know your thoughts on the above and your valuable suggestions.

    Thanks in Advance for your kind support

    Shankar

    1. Shankar-Better to go with HDFC Balanced. Because you already have Nifty stocks invested by large cap fund. So I don’t think it serve any purpose again to invest in Index Fund (only advantage is low cost). Even though DSPBR Dynamic Asset Allocation fund looks attractive, but when you look at tax efficiency and cost of the fund then it lacks both the features. Hence better to avoid it.

      1. Sir,

        Thanks for your immediate response. I will take your advise. I will avoid the NIFTY fund and the DSPBR Dynamic allocation.

        Do you suggest to invest the remaining 40% in the HDFC balanced fund or should I find one more fund (like HDFC Midcap or anything that you might suggest) and invest 20% in that and the remaining 20% in the HDFC Balanced fund.

        The other option is just to have these 4 funds and split 25% each in the 4 funds.

        Pls let me know your thoughts on this also.

        Again, Thanks a ton for your patience.

        Regards,
        Shankar.

  342. Dear sir,

    I plan to start investing 25000/month through SIP. I have some FD’s so only considering an equity portfolio. I plan to split the investment as follows. (All direct, Growth plans)
    1. ICICI focussed bluechip- 5k
    2. Franklin india bluechip – 5k
    3. UTI opportunities – 5k
    4. Birla sunflife frontline equity – 5k
    5. Reliance equity opportunities – 2.5k
    6. IDFC premier equity – 2.5k

    Please suggest if this allocation is fine or if any modifications in the allocation or the fund selection is necessary. Thank you for your time.

    venkat

    1. Venkat-Why two large cap funds like ICICI and Franklin? Choose anyone of them. Go with Reliance Equity Opportunities Fund but stay away with Birla sunflife frontline equity (Large and Midcap Fund which again overlaps the fund UTI Opportunities fund). Also if possible include any balanced funds (equity oriented) or Income Funds, so that you can profit from interest rate cycle which not possible with bank FDs.

      1. a. Thank you so much for your very quick response. Based on your suggestion i will direct part of my investment in RD/FD into balanced funds (the HDFC balanced fund which you had suggested) and would maintain a equity folio for 25k. Just to reconfirm, is this revised allocation in line with what you suggested.
        1. ICICI blue chip (40%)
        2. UTI opportunities (20%)
        3. Reliance equity opportu (20%)
        4. IDFC premier equity (20%)

        b. I wish to buy mutual funds directly from AMC. but that requires sending application to different AMC separately. can i first invest some token money through an online portal like fundsindia/fundsmart and invest with all mutual funds i am interested in at once, then use the folio number to make all additional transactions directly (buying additional units or SIP) from the AMC site. This way, any changes i wish to do (KYC, bank details etc) can be done through fundsindia/fundsmart portal and it would reflect at once for the token units i had purchased through fundsindia/fundsmart and therefor for all the one i had bought directly as well. I would get the advantage of low cost from buying funds directly and the convenience of less paper work. Is my understanding correct or am i missing something. kindly advise

        Thank you once again for your time and valuable suggestions.

        1. Venkat-Diversification seems good. You can do so first by investing with online portals then moving to direct plans. But my suggestions will be, eventhough you may avoid beginning hurdles of physical submission, but in future you need to take care all things yourself. Hence take it as a learning and initiate the process of initial processing too on your own. If you don’t want that pain then plan you designed will be fine 🙂

          1. Thank you for your quick reply. I currently invest through online portal. I wanted to start a SIP and found the selecting the direct option can make significant impact in the long run. Being an NRI, i find it difficult to deal with all AMC for the paper work. Having an folio number makes subsequent investments much easier as its fully online. That the reason i thought of this route. Anyway thank you so much for you patient reading and comments.

            Just a suggestion, Your articles under investment under different heads (like mutual funds, EPF….and spread across 18 pages). It would be very helpful for us readers if you group them under some subcategories. This would make it easier to search for articles we are looking for. Thank you again.

            venkat

            1. Venkat-In that case I agree with your intelligence of opting online portals at beginning. Direct plans are best available option for investment and as you said when we look for long term difference then this 1% to 1.5% will actually a huge impact on your investment. Hence go ahead with direct plans.
              Regarding categorizing the posts under different head, yes I am doing it on high priority by looking at suitable plugin. I am a non tech guy and did all these by my own learning. So I need to be cautious when dealing with these 🙂

  343. Hi,

    This is Rafi. I have been investing in the following funds DSP Top 100 and HDFC Top 200 since 2010. Now both funds are under perform. Many of the advisors are not recommending these funds now a days? Could you please tell me whether I can continue my SIP on these funds and my tenure is 20 yrs.

    In the above post you have mentioned that you want you exit from the above funds.

    What happen if I continue on these funds over 20 yrs time frame? Whether I can get hand some returns after the above duration.

    Please guide me on this.

      1. Thanks for your suggestion.

        I have some questions :

        In your statement that “I want to move to Franklin India Bluechip Fund from DSPBR Top 100 Fund”.

        In the long term race both the funds are performing well.
        My query is :

        1. If I move from DSPBR Top 100 to Franklin Blue Chip, I lost my compounding in the fund DSPBR Top 100.

        2. If suppose I move to Franklin blue chip fund, after 3 yrs the fund is not performing well like DSPBR Top 100 (now), I will ask during that time the Franklin Blue Chip fund is not performing well and DSPBR Top 100 is performing well. What I will do on that time? Are you recommending any other funds to move during that time or you are still recommend to stay invest in the Franklin Blue Chip fund.?

        Why I am asking here is every 3 yrs or more, if I move to some other funds the compounding will get affect and I will get very less amount only.

        Awaiting you reply.

        Rafi

        1. Rafi-1) How you are loosing your compounding can you explain me? Suppose you invested Rs.100 today in DSPBR and after one year it grown to Rs.110 and after that if you are moving to other fund then you are investing Rs.110 into new fund (which includes your one year return). So I am unable to understand you point. Can you elaborate more on this?
          2) Equity investment is not like bank FDs where you invest today and forget for 10 years. It need to review at least on yearly base. But it does not mean that you need to churn your portfolio regularly. You need to move from one fund to another fund if the fund you invested continues failed to deliver equal to it’s peers.

  344. Hi Basu,
    Please accept my sincere thanks and appreciation for your informative and educative personal finance blogs.
    It gave fair idea on selecting mutual funds for SIP’s. However I may need to educate myself in understanding about mutual funds and other areas in personal finance.
    Since some time I have invested in MF through SIP’s. Now I am planning to invest more on my spouse name in following funds. These are taken from blogs and information on internet(web). This is to wealth creation and investment period is 1-3 years and holding period is 5+years. SIP amount of approx. 6-10 thousands equally divided in these and for debt I am willing to invest in PPF 500/month.

    1. Franklin India Smaller Companies Fund
    2. HDFC Mid Cap Opportunities Fund
    3. IDFC Premier Equity Fund
    4. I have some corpus(apprx 5 lakhs) that I want to use to park in liquid fund and invest further through STP.

    Please advice and throw some light per your experience.

    Thanks in advance.
    –SureshG

    1. Suresh-Thanks for your appreciation. Why you selected small and mid cap funds? They riskier when you compare to large cap fund. When look at performance sometime they lure to invest. But if you are looking at long term perspective then better to include large, large and mid cap and some balanced funds too. Parking in liquid fund and opting for STP is good idea. You can go ahead.

      1. Hi Basavaraj,

        Thanks for the reply. As I mentioned, this set is for wealth creation and felt aggressive funds in that perspective. In second set may be in six months I would add two more SIP’s with large cap & balanced fund. Below is base info that helped me to finalize these funds. CRISIL & ValueSearch Online rating is good.

        Fund Name CRISIL Rating 5Yr Returns StockAllocation
        HDFC Mid Cap Opportunities fund Rank3 4Star >25% 54 % to mid, 32 % small and 14% large
        IDFC Premier Equity Fund Rank2 4Star >25% 43.5% in mid, 22% small and 34.5% to large
        Franklin India Smaller Companies Fund Rank2 4Star >25% 49.5% to mid, 40% small and 8.5% to large

        Since stock allocation includes large cap companies too I felt it would be good aggressive fund for wealth creation.

        Thanks,
        SureshG

        1. Suresh-I agree with your aggressive style. But at the same time we must not forget the risk involved. Hence better to include diversification in your investment style always. Also as I said above I always look for long term performed funds (may be more than 5 yrs). If you do so then you will get the real picture like how they behaved during low and high of the market.

          1. Hi Basavaraj,
            Thanks for the reply and appreciable for your different perspective on this. I will add ICICI focus blue chip eq fund.

            Here is the other list of SIP’s which I have from FEB 2014, that is with 5500 each & are recommended by MF agent/broker. Just want to double check if any of these need to be revived

            1. BNP Paribas Midcap Fund – Gr
            2. Mirae Asset India Opportunities Fund – Div
            3. Birla Sun Life Top 100 Fund – Div
            4. L&T India Special Situations Fund – Gr
            5. Kotak Select Focus Fund – Gr
            6. Tata Floater Fund Plan A – Gr – 7k

            And these are my existing SIP’s and I am planning to discontinue( #8 to #11) after Mar2014

            7. ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND –3k
            8. FRANKLIN INDIA BLUECHIP FUND -2k
            9. SUNDARAM ULTRA ST FUND RETAIL GROWTH – 1K
            10. ICICI PRUDENTIAL DYNAMIC REGULAR PLAN –2k
            11. ICICI PRUDENTIAL DISCOVERY FUND – REG PLAN – GROWTH – 1k

            Thanks,
            SureshG

            1. Suresh-Please understand that having so many funds means not a well diversified portfolio. You can play with 4-5 funds by choosing a fund from each category. So having plenty of funds will actually confuse to you and to your money 🙂 Keep it as simple as possible.

              1. Yes, that’s the reason I reduced to 6(#1-6) funds only to avoid confusion & maintenance issue. Would like to get your opinion on these funds 1-6 mentioned above.

                1. Suresh-I think the funds were chosen based on the rating. But have checked the expense ratio of these funds compared to the funds I recommended? Please check it and you get the answer whether to go ahead or not.

  345. Hi,
    The following is my current portfolio(All investments are monthly SIP):
    ICICI Pru Focused Blue chip Eqty- Rs.3000
    HDFC Tax Saver (G)- Rs.1000 (Currently the SIP has ended)
    HDFC Top 200 Fund (G)- Rs. 1000
    DSP-BR Top 100 Equity – Rs. 1000
    Recurring Deposit in ICICI – Rs. 2000

    Now, I would like to make the following rearrangements from the next month:
    ICICI Pru Focused Blue chip Eqty- Rs.3000 – Continue
    HDFC Tax Saver (G)- Rs.1000 – Switch the units to Axis Long Term Equity Fund (G) or ICICI Pru Tax Plan (G); and to increase the monthly SIP to Rs.1500
    HDFC Top 200 Fund (G)- Rs. 1000 – Continue
    DSP-BR Top 100 Equity – Rs. 1000 – Switch the units to Birla Sun Life MNC Fund (G) or HDFC MidCap Opportunities (G); and to increase the monthly SIP to Rs.1500
    Recurring Deposit in ICICI – Rs. 2000
    Open a PPF A/C and start a monthly investment of Rs. 1000

    Are my selection of mutual funds right? My criteria of selecting them was based on CRISIL ranking. Is my proposed portfolio better than the existing one? My intention is to invest 10k every month with the required diversification. I am 27 years old, bachelor, professional. All my investments are for long term. Waiting for your precious recommendations. Thanking you in advance.

    1. Adarsh-Simply choose the above funds from each category which I mentioned above and start investing (Instead of HDFC MidCap Opportunities Fund choose Reliance Equity Opportunities Fund. When you are claiming to be investing Rs.10,000 for long term then I am unable to understand why you opted RD? PPF Account is a good choice. But equally distribute your investable amount in all funds (including PPF).

      1. Thanks a lot Basavaraj. RD was my very first investment. Was unaware of MFs then. Now I just continuing it. All my new investments are to MF/shares. Thanking you again. Just one more info regarding HDFC Tax Saver. Any other better ELSS if I want to switch to? Or should I continue the same?

  346. Hi, My MF Investments are

    1) Running SIPs:

    UTI Opportunities – 6K (1st of everymonth)
    IDFC Premier Equity – 5K (5th)
    Reliance Equity Opportunities – 4K (10th)
    ICICI Prudential Focussed Bluechip – 5K (15th)
    HDFC Balanced – 6K (20th)

    2) ELSS : Canara Robaco TaxSaver – 40000 p.a.

    3) My other investments in MF (currently not putting any money)

    HDFC Equity + HDFC Top 200 (Total Rs 4.5 Lakhs)

    4) I recently redeemed all my investments in Reliance Regular Savings Equity and DSPBR Equity as their performance continue tobe poor and currently i am sitting in cash of around 2 Lakhs (recd from these redemptions).

    I need to slowly put these money also in MFs. Please suggest a couple of good fund (s).

    Regards
    J Ayyappan

  347. sir i invest mirae asset india oppurtunities fund reg (groth plan),n icci prudential focused bluechip equity fund,my question is will i continue with dis two fund??n kindly suggest another fund to invest

  348. Dear Basavaraj

    I had started investing in HDFC Top 200 Growth from July 2012 till date. (5000 RS monthly)
    (95000 total investment = Mkt Value 102,695.19 )

    I would like to know should i hold on my mind is saying it would come back again like before because before investing i had heard many positive feed backs but now the scenario is this. So i would like to know whether i should hold on for more time.

    I have no urgent need of money this is mainly kept for future say after 10 years. & I wish to continue with one stock only.

    Also my agent (bank) told me if i had to switch i could only switch with HDFC funds (free of cost) otherwise other funds like Franklin India Bluechip cannot be done since they may charge me is this true ??

    would like to receive your valuable feedback.

    1. Biju-Don’t go by short term down trend. It is down due to its dependency on financial sector, which is currently under pressure. So do continue. Else continue Rs.2,500 with HDFC Top 200 Fund and Rs.2,500 with Franklin India Bluechip Fund (If you are so concerned).

  349. I’m investing the below funds. Could you please analyze and give your suggestion for good returns!
    1. Reliance Regular Savings Fund (G) – 1000 SIP for the last 3 years.
    2. Reliance Banking Fund (G) – 1000 SIP for the last 3 years.
    3. Sundaram Select Midcap fund (G) – 1000 SIP for the last 3 years.
    4. ICICI Select Focus Blue chip fund(G) – 1000 started recently
    5. Templeton India Equity (G)

    I’m also holding Sundaram Global Advantage Fund (G) 3000 Units @15.04 . Could you please guide on me on this also

    Thanks in Advance.

    1. Suresh-1) Continue, 2) Move to UTI Opportunities, 3) Move to Reliance Equity Opportunities Fund, 4) Continue and 5) Continue. I don’t think Sundaram Global Advantage Fund (G) is a good one. So come out of this fund.

      1. Thank you Basu . Your posts are very informative and useful. I’m investing 1000 Rupees (SIP) in each fund in the below funds from the past 46 months, and got 40% profit by this time.
        1. Reliance Regular Savings (G) ,
        2. Sundaram Select Midcap fund (G)
        3. Relinace Banking fund (G)
        4. Templeton India Equity (G)
        4. HDFC Equity (Lumpsum 40K)
        I would like to safe guard my profits so what I want to do is I want to switch the above funds amount to the respective liquidity/Treasury funds whenever the market is in down fall and switch back to the above funds once the Market Bull run starts. For ex: Switch HDFC Equity fund to HDFC Cash Management Fund- Treasury Advantage Plan – Retail Plan (which does not have any entry/exit load) .

        Could you please suggest some good liquid funds ( which does not have entry/exit load ) in Reliance , Sundaram and Franklin Templeton fund houses?.

        Appreciate your quick response.

        1. Suresh-First let me know according to you what is the meaning or value of “Market Down”? What if from today’s position market again went up to another high or what if market fall to another low of 2008 kind? So don’t bother about these up and down of your investment cycle. Suppose you are near to your financial goals then switch to debt funds. If your goals are still of long term (5+ years) then why to worry??

          1. Thank you Nivesh. I got you. Could you please guide me some debt funds which are performing well ?. I got the expected returns in the above. Just I want move the profit to debt funds and continue the SIP for 5 years . Is it beneficial to convert all the SIPs to direct plan now(Stop the current SIP and start them as Direct plans ) ?

            Thanks in advance.

  350. Dear Basavaraj

    Thanks for the reply, The diversification I told you is my current overall diversifciation. I also have EPF from my employer, savings for short term emergency and loss of employment ( 1 year worth). What I was asking is in addition to the current portfolio I have which I need for my retirement I would like to add one or two funds soley for the purpose of my kids education and do you have a recomendation of funds for this

    1. Sunkad-With adding one or two more funds do think it serves any purpose? You just overlap the investment. Going on adding new funds with each goal will not be the best decision. Instead with current funds you can increase your investment. Having plenty of funds will create more confusion. Keep it simple.

  351. Dear Basavaraj

    One more question. I have two girls aged 9 years. Can you suggest a good fund for them that I can start for their higher education which I will need 8-9 years from now.

    thanks

    venkatesh

  352. Dear Basavaraj

    Thanks for your reply.

    1) Specifically your thoughts on HDFC Prudence fund since lately (I mean for the past 2 years they are under performing)
    2) On your why Gold Fund vs Gold ETF the expense ratio difference is 0.25 since the ETF charges 1% and this charges 1% from the ETF plus 0.25. The main reason is that I can do SIP whereas in ETF I cannot do this and the discipline to buy it every month could be a challenge for a fixed amount. My portfolio mix is 40% Large cap, 20% large and Mid cap, 20% small cap, 15% Hybrid equity and 5% in the Gold Fund.

    sunkad

    1. Sunkad-Yes, you can’t buy less, when the value of your investment is less than 1 gram in gold ETFs. Good going and looks better portfolio construction. But is this investment is for particular goal or overall portfolio diversification? In my view going by overall % diversification of your investment is wrong. Instead, you need to concentrate on each goal separately and diversify it.
      Regarding your kids future. My suggestion is to have term insurance and start investing in PPF+Equity into 25% to 75%.

  353. Dear Basavaraj
    Thank you for an excellent article. I have been investing using SIP in the Direct Plan in the following funds. ICCI Pru Focussed Blue Chip, Quantum Long term Equity, IDFC Premier Equity Growth, HDFC Prudence, Quantum Gold Savings Fund. Can you comment on the fund selection ?

    thanks

    sunkad

  354. Hi,
    Long back, I have invested in following Mutual Funds (1) L&T Equity Fund-Dividend (2) HDFC Tax Saver – Dividend Plan (3) Magnum Tax Gain Scheme – Dividend (4) RELIANCE TAX SAVER ( ELSS ) FUND – GROWTH PLAN (5) HDFC Long Term Advantage Fund (ELSS)- Dividend;
    Please guide on above picks
    Now I want to invest in SIP scheme of funds suggested by you (Rs 20000/= per month). Please guide how to distribute. Please also guide if all scheme have option of SIP

    1. Rajan-May I know the reason behind opting dividend option in all funds? Also, except one or two funds, the rest of them are tax saving funds. So I don’t whether each investment completed 3 years or not. Hence difficult for me to guide you with limited knowledge. Regarding new investment, you can choose any one of the fund from each sector and divide your Rs.20,000 equally. But do remember that equity investment is for the long term.

  355. Sir tell me one thing..experts say dont change your funds at the time of downfall..just invest and forget about dat atleast for 10 yrs..
    and at the same show expert says that time to time we should track the performance of our portfolio and if required switch over to some other fund?? is switching good..and is it possible to switch, mutual funds allow us to switch just after a month or year, as the case may be..???

    1. Sachin-Investing today and forgetting for the next 10 years is not an intelligent move. What if the fund doesn’t perform well compared to its peer may be because of a change in fund manager, mutual company or some other issues related to fund (For example Reliance Growth Fund-One of the best performing fund since long, but currently underperforming)? Hence it is always advisable to review your investment one in a year at least. If the fund is consistently under performing, then the answer is to switch some best funds. But it does not mean that you need to switch every time. Yes you can switch from one fund to another fund and the best option is to after a year (long term tax gain from equity is nil).

  356. Hi Basavaraj,

    I have invested an lumpsum amount in ELSS – Birla Sun Life Tax Relief 96 (D) on jan 8th and the lock in period is 3yrs. i have invested in this fund for my tax saving purpose. Have i made a right decision by investing in the right fund? Going forward investing in ELSS every year(lumpsum -20/30k) or going for SIP is an good idea?

    1. Vijay-It is a good and oldest fund. But the point is, you opted for dividend option, whether it is payout or reinvestment? If it is payout then no issues, otherwise each reinvestment again need to complete 3 years (reinvestment of dividend is treated as fresh investment). So have thought about this? Also, always bear in mind that SIP is best when are investing in equity than a lump sum.

  357. Hi Basu…

    What is your take on below funds :
    1 – SBI Emerging Business
    2 – HDFC Midcap oppurtunities
    3 – Sundaram select mid cap fund

      1. Thanks Basu..i hold HDFC top 200, Quantum long term equity and also reliance eq opportunities……Thank u very much for ur comments…hope to see more users getting us advise going frward..

  358. I have invested in Tata Growing Economics Infrastructure Fund Scheme B Plan A on 11Apr 2008, Rs: 20000.
    Should I redem or stay on it? Please could you guide me?

  359. I want to invest through sip of about Rs 10000. Please suggest how much in above mentioned funds. Whether we should start now or wait for mid 2014. Suggest

    1. Suradip-You can select any one from each mentioned fund type and invest an equal amount among all. Starting now itself is the best decision when it comes to saving and investing. Because who starts early will be a winner. But at the same time, bear in mind that for investing in equity mutual funds, your waiting period must be at least 10 years or more.

      1. Hi Basavaraj,
        I am reading your Blogs and articles and quite impressed!
        I have following MFs, One time around 4 years back, I have started in SIP mode and now not continuing further, reason being the return is not good enough. It’s may be the time and fund selection was not good for me.
        I need your suggestion on –
        1. Should I continue further with the existing folios? Or to start in SIP afresh in new funds?
        2. If to start afresh, which are the funds, I should start with. I can invest Rs 5000-7000/ month and I am 40 yrs. old. I have term plans and Insurances – Health and Life both.
        3. I want to invest in direct mode and not through any distributor or agent, please suggest the process for it.
        4. Should I sell the existing funds or to keep as it is , if I need to start in afresh ?
        My current MF s are-
        1 UTI Dividend
        2 HDFC TOP 200 Growth
        3 Birla Sun life Midcap Fund Plan-A
        4 HDFC Equity, Growth
        5 ICICI Prudential Focused Blue-chip Equity Fund, Gr.
        6 Reliance Banking Fund, Growth
        7 HDFC Midcap Opportunity Growth
        8 UTI Opportunity Fund Growth
        9 SBI Magnum Contra Emerging Business Fund -Growth
        10 HDFC Prudence Fund – Growth
        11 Birla Sun life MNC (G)
        12 Reliance Pharma
        13 HDFC Gold Fund

        Please Suggest. Your valuable guidance may show the right path….

        1. NEEL-Too many funds will actually confuse your investment. Instead select one fund from above category and start investing. Now coming back to your existing funds. I suggest you to continue in HDFC Top 200, ICICI Prudential Focussed Bluechip, UTI Opportunities Fund, HDFC Prudence. For rest of them, if they are showing you some positive returns then withdraw the amount and invest in the liquid funds of mutual fund companies where you want to start SIP and give instruction for STP. Regarding how to proceed for investment in mutual fund, I just wrote a post and the link will be available on top post (at end). If you still have doubt then let me know.

  360. I am a beginner to MF’s, so i have no idea on how it works. I had always invested in traditional savings as they are risk free.

    Now i would like to go for a SIP. Here are my criteria’s.

    * Tax Saver
    * Best Returns
    * Amt : Up to 3000 Monthly
    * Team : Up to 20 Yrs

    Please suggest me the best SIP plan in market which suits my requirement for the year 2014.

    1. Shobha-You can choose any of above two funds which I mentioned as tax saving funds. Below are my answers to your criteria.
      1) Tax Saver-Yes under current income tax law you will get benefit under Sec 80C if you invest in tax saving funds.
      2) The best returns on equity depend on how much longer you invest. So if your view is long term like more than 5 years, then definitely these funds have an edge over other investments.
      3) Yes, you can invest the specified amount.
      4) Please remember that under DTC (Direct Tax Code) which I don’t when will come into effect, has not considered tax savings funds as tax saving tools. So based on the tax law changes you must invest.

    2. Hello Basu,
      this is Jagadesh from Vizag, Andhra pradesh. im a public sector employee. im new to MF’s and donot know how they work or how to invest in them. i have relied on traditional methods like VPF,PPF and FD’s for saving my money and have been gaining an intrest of around 8.5%. (im saving around 17000/month)
      my question is whether investing the same amount say 20,000/ month in MF’s for period of 10-15 years will fetch a higher returns than 8.5%? please clarify
      thank you.

      1. Jagdesh-Yes, it will definitely fetch more than 8.5% in the long run like 10-15 years. But at the same time, I am not suggesting you to put all Rs.20,000 in equity. Instead, put some % of your portfolio into debt products like VPF or PPF also. The major point to note is, your investment must fulfill your financial goals.

    1. Sumon-How to invest-There are two options currently. One is, if you are new investor then choose the adviser who you think will give you better service and guide you in investing and reviewing. The second option is, direct investment. Where you need to take care of all your investments and processing part also. Option is your’s. Minimum monthly investment in these funds is as small as Rs.500.

  361. HI,

    I am lookin for investment plan having tax benefit and good returns.I don want any of my amount going to some kind of insurance coverage.The whole
    amount of premium should go to investment.I can invest aroun 1500-3000 Rs per month.Kindly suggest me gew good plans suiting me.Products where I can invest

    Is SIp a good Option?If Yes which One.

    Regards,
    Biju

  362. Thanks Basu, this is really a good article. My question here is how to choose an option of investment between SIP and lump sump amount? Does it depend on type of funds and how one should opt for the decision? e.g. (This is an arbitrary example) Large cap equity fund, – Lump sump investment is best or Mid and small cap equity – SIP is best and so on?

    Which one would you suggest – SIP or Lump sump??

    1. Sameer-Best option to enter the equity market irrespective of the fund type is SIP. So always go ahead with SIP only. If you have large cash and your waiting period is too long like 20 Yrs or 25 Yrs then you can go ahead. But still by investing the large sum in any liquid fund and opting for STP to equity will be best. SIP is the way of reducing the market volatility risk.

    1. Prasanna-If you are confident of handling the processing and reviewing your portfolio then I still suggest you to opt for Direct Plans they are more advantageous than normal funds. If not then go to FundsIndia as they not charge anything extra like the other demat account provider.

  363. Hi
    I have monthly SIP as follows: HDFC TOP 200 (Rs.1000), DSP Black ROCK TOP 100(Rs. 1000), ICICI Pru Focussed Bluechip Equity (Rs. 3000) and HDFC TaxSaver (Rs.1000). Should I make any changes in the current portfolio of mine? Thanks in advance.

    1. Adarsh-Move DSP Black Top 100 to Reliance Equity Opportunities Fund. Reason for this change is, you have already large cap fund (ICICI Pru Focussed Bluechip Equity), Large and Mid Cap Fund (HDFC Top 200 Fund). So having one more large cap is not necessary, instead move to mid and small cap. This will diversify your investment. You can retain HDFC Tax Saver.

  364. Dear Basu – Happy New Year to you and best wishes for 2014. This is an excellent starting list. As you have rightly pointed out, there will always be permutations and combinations. But the key is really to start investing. I have had several conversations with friends and clients who discuss a lot about the fund selection framework/criteria etc. They keep postponing the actual investment itself in their quest for the finest fund !!. Staying invested in the market over the long run (with periodic review of the chosen funds) is the most important thing.

    If a couple of observations are permitted – In addition to the excellent funds you have suggested I would also look at a couple of relatively new/small funds which are doing very well e.g. BNP Mid Cap, Axis Equity etc. I am also a fan of strong long term funds like HDFC 200 (despite the recent under performance), Birla Sunlife Front Line Equity etc. I continue to remain sceptical about ELSS funds – Apart from the 80C benefit (covered for most people via other instruments like housing loan, PF, PPF etc), the only benefit is that they compel folks to remain in the market due to lack of choice !!

    This is a nice post for the New Year – Regards Prasanna Varadan

    1. Prasanna-Thanks for endorsing my view. Yes man of action will win in a race and it applies to all our good work. Also thanks for sharing few funds from your side. Yes ELSS compels them to remain in the market and few look for this investment as the lock in is short when compared to other tax saving. But they forget that equity is for the long term.

  365. Dear Basu – Happy New Year to you and best wishes for 2014. This is an excellent starting list. As you have rightly pointed out, there will always be permutations and combinations. But the key is really to start investing. I have had several conversations with friends and clients who discuss a lot about the fund selection framework/criteria etc. They keep postponing the actual investment itself in their quest for the finest fund !!. Staying invested in the market over the long run (with periodic review of the chosen funds) is the most important thing.

    If a couple of observations are permitted – In addition to the excellent funds you have suggested I would also look at a couple of relatively new/small funds which are doing very well e.g. BNP Mid Cap, Axis Equity etc. I am also a fan of strong long term funds like HDFC 200 (despite the recent under performance), Birla Sunlife Front Line Equity etc. I continue to remain sceptical about ELSS funds – Apart from the 80C benefit (covered for most people via other instruments like housing loan, PF, PPF etc), the only benefit is that they compel folks to remain in the market due to lack of choice !!

    Regards Prasanna Varadan

  366. Good one Basu.
    But, I am not happy that you have ignored a consistently high quality performer like BNP Paribas Equity Fund.
    Please do not go for BIG brands.
    Do also consider consistent performers.
    By the way, the article would have been complete if you had thrown in a couple of Tax Funds since the Tax Saving season has started

    1. Srikanth-Thanks for your point. But as I said above I not only went by brand but also selective funds. I don’t have any issue with the BNP Paribas Equity Fund. Also I already said above that this list is my favorite but it does not mean that these are the only funds which one can invest. If we do some research then some other competitor may emerge. I did tax saving funds also. But restricted to two only. Because I am skeptical about DTC 🙂

  367. Thanks,

    Can you guide us, what is the process of investing in mutual fund. Where I have to contact what are the good companies where we can trust. I want to know the whole process of mutual fund how to invest in it.

    Regards,

    1. Anshu-Currently there are two options. One is a direct mode where there will be no middlemen and you will invest directly by contacting individual mutual fund companies, you will take care of your future transaction related issues yourself and future fund monitoring. This is the cheapest way of investing as these direct plans have different NAV which are cheaper than normal plans, because no middlemen. But if you not at all interested to take these steps yourself then you can go with an adviser who will do this process and if you are lucky he can review your portfolio regularly and guide you in the future. If you want to choose online middlemen then you can choose Fund India.

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