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 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
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
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 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 🙂
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?“
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.
Dear Tarun,
What prompted you to choose this fund?
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
Anuj-When you bought this?
In July, 2016.
Thanks,
Anuj
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!
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).
Hi,
By saying NRI deposits , do you mean fixed deposits under NRI account.
Thanks !
Sheetal-Yes..simple and easy for your understanding 🙂
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
Rajkumar-Whether it 20 years or 100 years, proper asset allocation is key to success. You have not created debt portfolio and also investing in single mid cap fund is not good.
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.
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.
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
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.
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.
Sekhar-Flexi SIP makes you flexible. I suggest a proper monthly strict investment to reach any goal. Demat account is not required for investing in mutual funds.
i have invest in birla sunlife advantage growth direct
and hdfc reitrement saving fund so i have take correct decision or not?
Prashant-Without knowing much about your goal, waiting period and what prompted you to select these funds ONLY, how can I guide you?
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.
Yogender-Please read my latest post “Top 10 Best SIP Mutual Funds to invest in India in 2016“.
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
Sandeep-How you arrived at these funds?
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 ?
Saloni-Never run behind ratings. Will you again change if the 5 star rated fund downgrade to 2 star? Yes, if you stop the investment in HDFC, then the invested value will grow as usual.
Hello Bassu, i am Sandeep . please suggest some good Short term funds. Want to invest 30000 per month for 2 years.
Sandeep-Use RDs rather than debt funds.
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.
Sandeep-What is your tax slab?
up to 8 lakh
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
Yogesh-Select a equity oriented balanced fund from above list and start investing.
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
Yogesh-Nothing so special. Be curious with each word you come across. Use GOOGLE to search for the same. There are many in fact a lot of OVER KNOWLEDGE is there to confuse you 🙂
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
Prashant-Good and go ahead.
COULD YOU PLEASE SUGGEST ME A MUTUAL FUND WHICH CAN FULFILL MY TARGET?
Prashant-Without knowing your TARGET how can I guide you?
TARGET-Education for Daughter
Time frame -Next-15 Years
Prashant-Then use one large cap, one small and mid cap and another balanced fund from above list.
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 .
Suresh-First be specific about your time frame. Then we discuss about investment.
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
Pranay-Without knowing your timeframe, it is hard for me to guide.
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
Abhishek-Why can’t you invest in same funds?
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
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
Ruby-If your holding period is more than 1 year then all your above investments will be tax free. For better understanding of taxation of MF for NRIs, visit this LINK.
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
Ishmavel-No need to show ELSS yearly gain. Please read my earlier post regarding stock investment and taxation at “All about Tax Liability on Equity Share Trading“.
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.
Abhimanyu-How you selected these two funds?
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.
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.
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
Vinod-RTA allows you for direct funds but not MFSS. When it comes to cost then RTA is best.
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.
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.
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
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.
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?
Imtiyaz-You can invest.
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
Jayaprakash-But you missed to share your time horizon.
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.
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.
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
Virender-On what base you selected all these funds?
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.
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.
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
Virnedar-Why so many Small/Midcaps? In my view, one is enough.
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..
Rishi-What do you mean by “saving purpose as well as other pupose”?
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.
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 ?
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).
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?
Biju-For a goal which is within 3-4 years, either use bank RDs or Short Term Debt Funds. But for a long-term goal, you can use the existing funds.
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..
Hari-You can chose one large cap, one small and mid cap and another a balanced fund from above list.
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
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.
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.
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.
Nilanjan-I don’t think you have great funds apart from HDFC two funds. You have to think seriously to restructure your portfolio.
Sir, Could you please suggest, which ones should be stopped and where to put in my money in SIP mode.
Nilanjan-Retain the earlier said funds.
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
Ramesh-I already replied to your mail. But in my view it is best to invest only incase you can wait up to 10 Yrs minimum.
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.
My plan is to use the amount in 2-3 years. Please suggest options to go for.
Thank you.
Gokul-What is your tax bracket?
20%
Gokul-Better to avoid Debt Funds. Either use Bank RDs (if goal is sure and not avoidable), otherwise us Arbitrage Funds.
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 🙂
Priya-What do you mean by high risk? Also for how long you want to invest? Why you want to invest only through ICICI Bank?
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!!
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.
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.
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
Rahul-How you arrived at the required amount and the funds? Why you selected different funds for different goals?
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.
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.
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
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.
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.
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
Ram-First set right your insurance need. Then think about investing. Ideal insurance coverage should be around 15-20 times of yearly income.
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
Isar-None of pension plans are best. Better you create on your own.
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 ——-,—-,–(@)
Gaurav-You can go ahead with Franklin India Bluechip.
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.
Rajesh-Apart from PPF (that too not goal based means not a fan of it), Axis and HDFC funds, rest of all are not good to have.
Thx basavaraj. May you please suggest what needs to be done for 2015 – 16.
Rajesh-First understand where you are currently plan your goals. While choosing the products then think about other aspects like Tax.
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?
Shivam-You can invest and whatever points you told are right.
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
Shivam-Hey I am not that much big. It is sharing what I am learning. Also welcome all to share their views. It is like group learning.
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
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
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
Vinod-Why two small and mid cap and one sector fund? Retain one small and mid cap and include large cap instead of sector fund.
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
Vinod-Chose the fund from the list of above.
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
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.
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 )
Jijo-Insurance in the sense it must cover your life risk. Ideal insurance cover should be around 15-20 times of your yearly income. Do you have that much?
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.
Ramakrishna-Stay away from ULIPs and try to weed out the existing LIC policies. Buy term plan.
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).
Sonu-First visit your LIC branch and let them say you the exact amount before paying 3rd year premium and after 3rd year premium. Then you share the same. We discuss further.
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?
Sonu-You visit LIC branch and come up with how much they pay as surrender amount if you pay third year premium. Then you come to know which is feasible for you.
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.
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.
Dear Basu Sir,
OK first I will get those and revert you back. Thanks Bro..
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.
Vakkil-Five years for equity investment is short term. Hence better to stay away.
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
Dolly-Invest in Bank FDs.
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
Sunil-Do you have proper term and health insurance??
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
Sunil-what if your new company not offers health insurance to your family? Also how you planned to cover yourself once you retire from job? Better to have an alternative right?
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.
Sunil-List is already available above. Choose and invest 🙂
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.
Sunil-I have not selected this fund only because it is newly launched (2009). Let us not go by sudden jerks.
Thank You so Much 🙂
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.
Rajit-That is the reason in my new post I have stayed away from CR.
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
Ajit-Simple rule…if your time horizon is less than 5 years then don’t opt for equity. Safely invest in NRE account, Indian FDs or Debt Funds.
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.
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.
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.
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.
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
Ankit-If your tenure is around 5-7 years only then stay away from any equity mutual funds.
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
Mahantesh-If your time horizon is less than 5 years. Then don’t enter equity mutual funds. Instead either use Bank FDs or Debt Funds based on your tax slab.
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).
Saikat-All is good but what about term insurance? First buy that.
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.
Saikat-After term plan and EPF contribution, how much gap still you need to fill it? Also what is your tax slab?
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
Saikat-what is your shortfall for filling tax saving option?
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
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?
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
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.
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
Stuti-So many funds? In my view two funds are enough 🙂
Which 2 would you suggest ? and would you say 15 k each then ?
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.
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.
Mike-High risk in the sense? You will not feel heat if all your invested amount vanish? How you chosen mutual funds and stocks?
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.
Suresh-One large cap and one small and mid cap are suffice.
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
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?
Hello Basavaraj,
Can you please write an article on Best Mutual funds for SIP to Invest in 2015?
Regards,
Smitha
Smitha-Let us wait this year to complete 🙂
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
Srinivasa-How you chosen these funds?
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?
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.
Okay. So which combination of three direct plan funds would you suggest which will provide proper diversification?
Srinivas-Have one Large cap and another small and mid cap fund. That’s enough.
How about investing as follows:
1. UTI Equity (G) – Direct plan – 3000
2. HDFC Mid-Cap Opportunities Fund – Direct Plan – 3000
Srinivas-I feel more comfortable with HDFC Top 200 or Franklin Bluechip Fund than UTI Equity.
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.
Srinivasa-What risk you feel to invest in same fund? If uncomfortable then opt for Franklin.
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.
Sreedhar-Select a large cap and small and mid cap from above list and start investing.
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)
Rishi-Why so many tax saving funds? Do you feel you are diversifying your investment? Have you checked the underlying overlapping?
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.
Rishi-My choice from your listed funds are HDFC Tax Saver and IDFC. But do you feel by investing in two tax savings funds will actually a good idea? Think and decide.
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.
Rupak-Keep one large cap and another small and mid cap. That is suffice.
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
RA-So many funds not required. One large cap fund like Franklin India Bluechip Fund and one small and mid cap of your choice is enough. Please dump these so many funds.
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..
RA-Funds like ICICI Pru Discovery, HDFC Mid Cap Opp or Franklin Prima Fund.
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
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
Preeta-Why risky sector funds at this age and with time frame of just 5-7 years?
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.
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.
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?
Anshu-I suggest the first bucket than the second one.
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. 🙂
Anshu-You can opt one more SIP of Rs.1,000 in the same folio either on same date or on different date.
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,
Anshu-No need to either to have separate funds or separate folio. Within same fund under same number start a SIP. This makes your life simple 🙂
Hello Sir,
Is it good to invest in ELSS fund via lum-sum amount?
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.
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
Anshu-You checked overlapping in it?
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
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.
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.
Dibyendu-Why dividend reinvestment?
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
Dibyendu-Start a test from today, watch daily NAV of Growth and Dividend reinvestment option for another 3-4 days and come out with what you observed. Then we discuss further.
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.
Dibyendu-If you are investing for long term view then always opt for Growth option.
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.
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.
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 /-
Ram-How can I say about how much you get? Please contact nearest LIC branch.
Abhishek-Nothing to worry about not having small and mid cap fund. Keep investing.
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
Srinivasan-You can choose one large cap and another small and mid cap funds from above list.
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?
Rick-You need to use the re-balancing strategy to avoid such risks. As goal approaches, based on market condition you need to shift from equity to debt.
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
Nishant-Go with one Large Cap Fund of ICICI Focussed Bluechip Fund.
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
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.
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
RajaG-Instead of having two funds in each category better to retain one. Once you do that then continue your fresh investment in same funds. No more funds to add.
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
Sushil-Let me know how you short listed the said funds.
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.
Balu-No equity funds for time frame of 5 years or less than that.
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
Balu-In that case select one large cap and one small and mid cap fund.
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.
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.
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.
Balu-Yes you can do so.
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.
Brahmananda-How can I guide you without knowing much about your finance?
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.
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.
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.
Kuntal-All are good but in my view retain PPFAS and come out of HDFC as one small and mid cap is suffice.
Wonder why u did not publish my other 2 comments!!!
Anyway its your blog. U r the boss.
Thanks,
Kuntal.
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.
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.
Kuntal-Yes I deliberately deleted as I thought it is not about any discussion.
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
Mahantesh-No need to have too many funds. You can have the existing fund also for all your Rs.3,000 investment.
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?
Anshu-Yes you can sell it either partially or fully. But only in case of ELSS (Tax Saving Funds), there is a lock-in of 3 years for each investment.
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
Shalabh-Currently it may be lagging but I still fan of HDFC Top 200. Whether NAV really matters? No…
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.
Shalabh-Sure. But do you feel day to day or month to month up and down actually meant for long term investors?
Hello,
Which one is good to choose for investment:
UTI Opportunties (G)
HDFC Top 200 Fund (G)
for long term.
Thanks,
Anshu-My all time favorite is HDFC. Rest is left with you.
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.
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.
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?
Bhavin-I am suggesting to restrict the number of funds in mid and small cap segment to one.
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
Mohit-If you are first time investor and the time period is more than 5-7 years or more then better to go for a Large Cap Funds like Franklin India Bluechip Fund.
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.
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?
Bhagwan-Whether your intention is to save tax or to grow your money?
to grow my money
Actually I intended it to be an emergency corpus fund. At the same time I wanted it to grow to the maximum extent possible.
Bhagwan-Sorry no equity investment for emergency fund.
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?
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.
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.
Atul-HDFC Top 200 Fund (G).
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.
Bhagwan-Whether SIP is in Mutual Funds or into direct equity.
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
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.
Bhagwan-If you are about to retire within another 13 years and your first timer then my suggestion will be to for balanced funds like HDFC Balanced OR Prudence.
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.
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.
UTI OPPERTUNITY HAS lost its rating by value research. Is it wise to continue with this fund.
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?
which funds sir ? can u provide me some good funds name ?
Roshan-It is already mentioned above.
Sujeet-Why two more new funds? Also why Gold Fund? You can invest in the existing same funds too.
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.
Sujeet-Can you elaborate more about high risk and medium risk in equity when you already diversifying it based on market cap? Also do you feel Gold will reduce the risk?
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
Sujeet-ICICI Bluechip and Discovery are fine for me. But no comments on Tax Saver as it is done to save tax. But why Gold Fund?
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.
Sujeet-No more funds…two to three funds are enough. More funds leads to more complication and no purpose of diversification.
Thanks a lot Basavaraj 🙂 I will continue with existing funds (w/o gold)
sir
thanks for your reply ….. and please suggenst me some good funds to invest for 2 of 3 year …regards
Roshan-You can use Debt Funds if your time horizon is more than 3 years and you are under 30% tax bracket. If less than 3 years then simply use Bank FDs.
Why is 5 year return always maximum?
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
Roshan-Investing in equity mutual funds for tenure of 2-3 years? Stay away…
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
Suddy-May I know why so much over investment in PPF and LIC?
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).
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.
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.
Shankar-Why no Life Insurance? Also how you opted HDFC Fund?
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.
Sri-Do you not feel like having two large caps or two to three small and mid caps will not serve any purpose? Why to have only one from each category?
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
Shalabh-Retain Quantum and come out of HDFC. Go with Franklin or ICICI of above said large cap fund instead of DSPBR. Instead of SBI I prefer IDFC Premier Equity.
sir, i would like to invest in ELSS scheme.
Which is the best option available right now?????????
Vishnu-My choices are already mentioned above.
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
Harshal-Go with Franklin India Bluechip Fund.
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
Mohit-Equity investment for a period of 3 years? Sorry none of equity plans are suitable for you.
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
Pankaj-I recommended them for long term view but not such ups or future downs. So I still stick to them.
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
Shekhar-First ask yourself whether by investing additional 5k in new funds will actually serve any purpose like diversification?
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
Dheeraz-How you arrived at these funds?
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
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??
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
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.
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
MK-First fill your emergency kid with term insurance, health insurance, accidental insurance and minimum 6 months household expenses. Then we discuss about investing.
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.
Rajib-Go for HDFC Balanced Fund.
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
Deepak-If your time frame is too long then why to worry about sudden jerks like bull or bear run?
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.
Ajay-May I know why around 50% of your salary towards PF?
basavaraju sir
what about UTI OPPERTUNITY in current scenario
Raj-It moved to large cap category. But apart from that fund is still best performer. You can check valueresearch.
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.
Mahesh-Quantum fund is not performing because gold is currently going through sluggish phase. But I am unable to understand why you selected this fund.
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
Mahesh-Restrict your gold investment to not more than 10% of portfolio.
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
Sri-I don’t think you require Mirae or Religare. Rest are ok for me.
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.
Abani-When you say ELSS then there is no choice like large cap or small and mid cap. You have only option is to go for tax saving funds. Long term means how many years?
Sir,
Minimum 20 years.
Abani-Then you can choose any ELSS from above said list.
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.
Samuel-Basic things like insurance and emergency funds are all in place?
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
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?
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.
Ashish-I am comfortable with all except ICICI Top 100.
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
Jitesh-I still suggest to go for ICICI Focussed Bluechip only because of it’s consistency. Yes expense ratio also matters in long run.
Hi Basavaraj,
I will go ahead with your suggestion.
Thanks a lot,
Jithesh
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.
Sajal-Area of investing depends on your goals. So how can I guide you?
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
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.
can u tell me about some more SIPs which can perform better in future
Singh-Existing funds are enough.
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,
Shailendra-Define what do you mean by HIGH RETURN AND HIGH RISK. Understanding your financial life is very much important while advising.
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.
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?
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.
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.
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?
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.
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
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
Sasikumar-Retain any one from ICICI or HDFC Equity.
Hi Basavaraj,
Do you know how is Reliance tax saver fund?
Thanks
Niraj-It is good fund
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.
Umesh-You are firing at air without knowing where it will hit. Please first understand your requirement then come up for help.
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
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.
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..
Nagaraj-Pleasure 🙂
For investing in Axis Long term equity fund(G), which option is better- SIP of 1500 per month or a 50000 one time investment.
Jasmine-It depends on your financial status and how you are planning for goal.
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.
Jasmine-As of now I have not found an investor who timed the market perfectly whether he is Warren Buffet or Rakesh Jhunjhunwala.
Thanks a lot for ur reply.
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
Mohamed-Mutual funds are not interest based investment but price appreciation based. Exactly like your real estate investment. I answered for your both questions. Am I right?
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
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.
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.
Mani-Thanks for sharing your views. But the person in question have enough knowledge even to pick a single stock??
I know that. but some other person may benefit from this.
Mani-Who will find that some other person is expert in direct equity or not?
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.
Mani-But without knowing their full financial life we can’t guide on online platforms. Especially by sharing few lines from readers.
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
Mani-Pleasure 🙂
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.
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?
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?
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.
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
Indrani-Why so many under performing SBI funds? Also why you don’t want use SIP?
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
Indrani-What is your time frame? How your other things are set like life, health, critical and accidental insurance, emergency funding, past investments and future goals?
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
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.
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