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?“
What is Forex Trading in India? Legal or not?
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Tarun manti chakraborty
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.
Basavaraj Tonagatti
Dear Tarun,
What prompted you to choose this fund?
Anuj
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
Basavaraj Tonagatti
Anuj-When you bought this?
Anuj
In July, 2016.
Thanks,
Anuj
Sheetal Kashid
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!
Basavaraj Tonagatti
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).
Sheetal Kashid
Hi,
By saying NRI deposits , do you mean fixed deposits under NRI account.
Thanks !
Basavaraj Tonagatti
Sheetal-Yes..simple and easy for your understanding 🙂
rajkumar mahapatra
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
Basavaraj Tonagatti
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.
sekhar
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.
Basavaraj Tonagatti
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.
bvnr sekhar
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
Basavaraj Tonagatti
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.
sekhar
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.
Basavaraj Tonagatti
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.
prashant
i have invest in birla sunlife advantage growth direct
and hdfc reitrement saving fund so i have take correct decision or not?
Basavaraj Tonagatti
Prashant-Without knowing much about your goal, waiting period and what prompted you to select these funds ONLY, how can I guide you?
YOGENDER PAL
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.
Basavaraj Tonagatti
Yogender-Please read my latest post “Top 10 Best SIP Mutual Funds to invest in India in 2016“.
Sandeep
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
Basavaraj Tonagatti
Sandeep-How you arrived at these funds?
Saloni
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 ?
Basavaraj Tonagatti
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.
Sandeep
Hello Bassu, i am Sandeep . please suggest some good Short term funds. Want to invest 30000 per month for 2 years.
Basavaraj Tonagatti
Sandeep-Use RDs rather than debt funds.
Sandeep
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.
Basavaraj Tonagatti
Sandeep-What is your tax slab?
Sandeep
up to 8 lakh
yogesh
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
Basavaraj Tonagatti
Yogesh-Select a equity oriented balanced fund from above list and start investing.
yogesh
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
Basavaraj Tonagatti
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 🙂
Prashant Tamhankar
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
Basavaraj Tonagatti
Prashant-Good and go ahead.
Prashant Tamhankar
COULD YOU PLEASE SUGGEST ME A MUTUAL FUND WHICH CAN FULFILL MY TARGET?
Basavaraj Tonagatti
Prashant-Without knowing your TARGET how can I guide you?
Prashant Tamhankar
TARGET-Education for Daughter
Time frame -Next-15 Years
Basavaraj Tonagatti
Prashant-Then use one large cap, one small and mid cap and another balanced fund from above list.
SURESH
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 .
Basavaraj Tonagatti
Suresh-First be specific about your time frame. Then we discuss about investment.
Pranay
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
Basavaraj Tonagatti
Pranay-Without knowing your timeframe, it is hard for me to guide.
Abhishek
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
Basavaraj Tonagatti
Abhishek-Why can’t you invest in same funds?
Alok Raman
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
Ruby Agarwal
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
Basavaraj Tonagatti
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.
Ishmavel
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
Basavaraj Tonagatti
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“.
Abhimanyu Singh
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.
Basavaraj Tonagatti
Abhimanyu-How you selected these two funds?
Ashwini
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.
Basavaraj Tonagatti
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.
Vinod
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
Basavaraj Tonagatti
Vinod-RTA allows you for direct funds but not MFSS. When it comes to cost then RTA is best.
ashish
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.
Basavaraj Tonagatti
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.
ashish
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
Basavaraj Tonagatti
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.
Imtiyaz
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?
Basavaraj Tonagatti
Imtiyaz-You can invest.
JAYAPRAKASH
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
Basavaraj Tonagatti
Jayaprakash-But you missed to share your time horizon.
MD SABAUDDIN
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.
Basavaraj Tonagatti
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.
virender
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
Basavaraj Tonagatti
Virender-On what base you selected all these funds?
virender
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.
Basavaraj Tonagatti
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.
virneder
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
Basavaraj Tonagatti
Virnedar-Why so many Small/Midcaps? In my view, one is enough.
rishi kumar gupta
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..
Basavaraj Tonagatti
Rishi-What do you mean by “saving purpose as well as other pupose”?
savitha
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.
Prashant
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 ?
Basavaraj Tonagatti
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).
biju gopal
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?
Basavaraj Tonagatti
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.
HARI
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..
Basavaraj Tonagatti
Hari-You can chose one large cap, one small and mid cap and another a balanced fund from above list.
saurav
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
Basavaraj Tonagatti
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.
Sanchit
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.
Nilanjan Ghosh
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.
Basavaraj Tonagatti
Nilanjan-I don’t think you have great funds apart from HDFC two funds. You have to think seriously to restructure your portfolio.
Nilanjan Ghosh
Sir, Could you please suggest, which ones should be stopped and where to put in my money in SIP mode.
Basavaraj Tonagatti
Nilanjan-Retain the earlier said funds.
Ramesh
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
Basavaraj Tonagatti
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.
gokul
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.
gokul
My plan is to use the amount in 2-3 years. Please suggest options to go for.
Thank you.
Basavaraj Tonagatti
Gokul-What is your tax bracket?
gokul
20%
Basavaraj Tonagatti
Gokul-Better to avoid Debt Funds. Either use Bank RDs (if goal is sure and not avoidable), otherwise us Arbitrage Funds.
priya
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 🙂
Basavaraj Tonagatti
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?
Priya
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!!
Basavaraj Tonagatti
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.
abhimanyu
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.
Rahul
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
Basavaraj Tonagatti
Rahul-How you arrived at the required amount and the funds? Why you selected different funds for different goals?
Ashwani
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.
Basavaraj Tonagatti
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.
venkat
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
Sanjay
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.
Basavaraj Tonagatti
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.
ram
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
Basavaraj Tonagatti
Ram-First set right your insurance need. Then think about investing. Ideal insurance coverage should be around 15-20 times of yearly income.
israr
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
Basavaraj Tonagatti
Isar-None of pension plans are best. Better you create on your own.
Gaurav Kumar
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:-
gauravkumar078900@gmail.com
gauravkumar0789@yahoo.in
Warm Regards,
Gaurav ——-,—-,–(@)
Basavaraj Tonagatti
Gaurav-You can go ahead with Franklin India Bluechip.
rajesh koli
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.
Basavaraj Tonagatti
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.
rajesh koli
Thx basavaraj. May you please suggest what needs to be done for 2015 – 16.
Basavaraj Tonagatti
Rajesh-First understand where you are currently plan your goals. While choosing the products then think about other aspects like Tax.
shivam sajnani
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?
Basavaraj Tonagatti
Shivam-You can invest and whatever points you told are right.
shivam sajnani
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
Basavaraj Tonagatti
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.
Rakesh Dadhich
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
joy
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
Vinod
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
Basavaraj Tonagatti
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.
Vinod
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
Basavaraj Tonagatti
Vinod-Chose the fund from the list of above.
K Jijo
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
Basavaraj Tonagatti
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.
K JIJO
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 )
Basavaraj Tonagatti
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?
Ramakrishna
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.
Basavaraj Tonagatti
Ramakrishna-Stay away from ULIPs and try to weed out the existing LIC policies. Buy term plan.
Sonu
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).
Basavaraj Tonagatti
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.
Sonu
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?
Basavaraj Tonagatti
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.
M.Srinivasan
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.
Basavaraj Tonagatti
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.
M.Srinivasan
Dear Basu Sir,
OK first I will get those and revert you back. Thanks Bro..
VAKKIL SATHEESH KUMAR
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 mansaa_1964@yahoo.com.my name is vakkil satheesh kumar.
Basavaraj Tonagatti
Vakkil-Five years for equity investment is short term. Hence better to stay away.
dolly jain
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
Basavaraj Tonagatti
Dolly-Invest in Bank FDs.
Sunil M
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
Basavaraj Tonagatti
Sunil-Do you have proper term and health insurance??
Sunil M
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
Basavaraj Tonagatti
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?
Sunil
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.
Basavaraj Tonagatti
Sunil-List is already available above. Choose and invest 🙂
Sunil M
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.
Basavaraj Tonagatti
Sunil-I have not selected this fund only because it is newly launched (2009). Let us not go by sudden jerks.
Sunil M
Thank You so Much 🙂
Rajit
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.
Basavaraj Tonagatti
Rajit-That is the reason in my new post I have stayed away from CR.
Ajit
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
Basavaraj Tonagatti
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.
amar
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.
Basavaraj Tonagatti
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.
amar
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.
Basavaraj Tonagatti
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.
Ankit Goel
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
Basavaraj Tonagatti
Ankit-If your tenure is around 5-7 years only then stay away from any equity mutual funds.
Mahantesh Patil
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
Basavaraj Tonagatti
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.
Saikat
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).
Basavaraj Tonagatti
Saikat-All is good but what about term insurance? First buy that.
Saikat
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.
Basavaraj Tonagatti
Saikat-After term plan and EPF contribution, how much gap still you need to fill it? Also what is your tax slab?
Saikat
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
Basavaraj Tonagatti
Saikat-what is your shortfall for filling tax saving option?
Saikat
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
Basavaraj Tonagatti
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?
Saikat
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
Narender
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.
Stuti
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
Basavaraj Tonagatti
Stuti-So many funds? In my view two funds are enough 🙂
stuti
Which 2 would you suggest ? and would you say 15 k each then ?
Basavaraj Tonagatti
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.
Mike
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.
Basavaraj Tonagatti
Mike-High risk in the sense? You will not feel heat if all your invested amount vanish? How you chosen mutual funds and stocks?
suresh
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.
Basavaraj Tonagatti
Suresh-One large cap and one small and mid cap are suffice.
Krithika
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
Basavaraj Tonagatti
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?
Smitha
Hello Basavaraj,
Can you please write an article on Best Mutual funds for SIP to Invest in 2015?
Regards,
Smitha
Basavaraj Tonagatti
Smitha-Let us wait this year to complete 🙂
Srinivasa Kamath
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
Basavaraj Tonagatti
Srinivasa-How you chosen these funds?
Srinivasa Kamath
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?
Basavaraj Tonagatti
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.
Srinivasa Kamath
Okay. So which combination of three direct plan funds would you suggest which will provide proper diversification?
Basavaraj Tonagatti
Srinivas-Have one Large cap and another small and mid cap fund. That’s enough.
Srinivasa Kamath
How about investing as follows:
1. UTI Equity (G) – Direct plan – 3000
2. HDFC Mid-Cap Opportunities Fund – Direct Plan – 3000
Basavaraj Tonagatti
Srinivas-I feel more comfortable with HDFC Top 200 or Franklin Bluechip Fund than UTI Equity.
Srinivasa Kamath
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.
Basavaraj Tonagatti
Srinivasa-What risk you feel to invest in same fund? If uncomfortable then opt for Franklin.
sreedhar naidu
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.
Basavaraj Tonagatti
Sreedhar-Select a large cap and small and mid cap from above list and start investing.
Rishi
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)
Basavaraj Tonagatti
Rishi-Why so many tax saving funds? Do you feel you are diversifying your investment? Have you checked the underlying overlapping?
Rishi
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.
Basavaraj Tonagatti
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.
Rupak
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.
Basavaraj Tonagatti
Rupak-Keep one large cap and another small and mid cap. That is suffice.
RA
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
Basavaraj Tonagatti
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.
RA
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..
Basavaraj Tonagatti
RA-Funds like ICICI Pru Discovery, HDFC Mid Cap Opp or Franklin Prima Fund.
RA
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
Preeta
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
Basavaraj Tonagatti
Preeta-Why risky sector funds at this age and with time frame of just 5-7 years?
amar
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.
Basavaraj Tonagatti
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.
Anshu
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?
Basavaraj Tonagatti
Anshu-I suggest the first bucket than the second one.
Anshu
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. 🙂
Basavaraj Tonagatti
Anshu-You can opt one more SIP of Rs.1,000 in the same folio either on same date or on different date.
Anshu
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,
Basavaraj Tonagatti
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 🙂
Anshu
Hello Sir,
Is it good to invest in ELSS fund via lum-sum amount?
Basavaraj Tonagatti
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.
Anshu
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
Basavaraj Tonagatti
Anshu-You checked overlapping in it?
Anshu
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
Basavaraj Tonagatti
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.
dibyendu chakrabarty
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.
Basavaraj Tonagatti
Dibyendu-Why dividend reinvestment?
dibyendu chakrabarty
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
Basavaraj Tonagatti
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.
dibyendu chakrabarty
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.
Basavaraj Tonagatti
Dibyendu-If you are investing for long term view then always opt for Growth option.
Abhishek R
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.
Ram
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.
Abhishek R
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 /-
Basavaraj Tonagatti
Ram-How can I say about how much you get? Please contact nearest LIC branch.
Basavaraj Tonagatti
Abhishek-Nothing to worry about not having small and mid cap fund. Keep investing.
SRINIVASAN GOPAL
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
Basavaraj Tonagatti
Srinivasan-You can choose one large cap and another small and mid cap funds from above list.
Rick
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?
Basavaraj Tonagatti
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.
Nishant
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
Basavaraj Tonagatti
Nishant-Go with one Large Cap Fund of ICICI Focussed Bluechip Fund.
Nishant
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
Basavaraj Tonagatti
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.
RajaG
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
Basavaraj Tonagatti
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.
Suhail
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
Basavaraj Tonagatti
Sushil-Let me know how you short listed the said funds.
balu
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.
Basavaraj Tonagatti
Balu-No equity funds for time frame of 5 years or less than that.
balu
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
Basavaraj Tonagatti
Balu-In that case select one large cap and one small and mid cap fund.
balu
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.
Basavaraj Tonagatti
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.
balu
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.
Basavaraj Tonagatti
Balu-Yes you can do so.
Brahmananda Reddy
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.
Basavaraj Tonagatti
Brahmananda-How can I guide you without knowing much about your finance?
Arnab
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.
Basavaraj Tonagatti
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.
Kuntal
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.
Basavaraj Tonagatti
Kuntal-All are good but in my view retain PPFAS and come out of HDFC as one small and mid cap is suffice.
Kuntal
Wonder why u did not publish my other 2 comments!!!
Anyway its your blog. U r the boss.
Thanks,
Kuntal.
Basavaraj Tonagatti
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.
Kuntal
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.
Basavaraj Tonagatti
Kuntal-Yes I deliberately deleted as I thought it is not about any discussion.
Mahantesh Patil
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
Basavaraj Tonagatti
Mahantesh-No need to have too many funds. You can have the existing fund also for all your Rs.3,000 investment.
Anshu
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?
Basavaraj Tonagatti
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.
Shalabh Srivastava
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
Basavaraj Tonagatti
Shalabh-Currently it may be lagging but I still fan of HDFC Top 200. Whether NAV really matters? No…
Shalabh Srivastava
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.
Basavaraj Tonagatti
Shalabh-Sure. But do you feel day to day or month to month up and down actually meant for long term investors?
Anshu
Hello,
Which one is good to choose for investment:
UTI Opportunties (G)
HDFC Top 200 Fund (G)
for long term.
Thanks,
Basavaraj Tonagatti
Anshu-My all time favorite is HDFC. Rest is left with you.
Bhavin
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.
Basavaraj Tonagatti
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.
Bhavin
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?
Basavaraj Tonagatti
Bhavin-I am suggesting to restrict the number of funds in mid and small cap segment to one.
Mohit
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
Basavaraj Tonagatti
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.
karthik
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.
Bhagwan Murthy
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?
Basavaraj Tonagatti
Bhagwan-Whether your intention is to save tax or to grow your money?
Bhagwan Murthy
to grow my money
Bhagwan Murthy
Actually I intended it to be an emergency corpus fund. At the same time I wanted it to grow to the maximum extent possible.
Basavaraj Tonagatti
Bhagwan-Sorry no equity investment for emergency fund.
Bhagwan Murthy
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?
Basavaraj Tonagatti
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.
Atul
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.
Basavaraj Tonagatti
Atul-HDFC Top 200 Fund (G).
Bhagwan Murthy
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.
Basavaraj Tonagatti
Bhagwan-Whether SIP is in Mutual Funds or into direct equity.
Bhagwan Murthy
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
Bhagwan Murthy
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.
Basavaraj Tonagatti
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.
Manish Dahiya
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.
Basavaraj Tonagatti
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.
ravi sharma
UTI OPPERTUNITY HAS lost its rating by value research. Is it wise to continue with this fund.
Basavaraj Tonagatti
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?
roshan
which funds sir ? can u provide me some good funds name ?
Basavaraj Tonagatti
Roshan-It is already mentioned above.
Basavaraj Tonagatti
Sujeet-Why two more new funds? Also why Gold Fund? You can invest in the existing same funds too.
Sujeet Gaikwad
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.
Basavaraj Tonagatti
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?
Sujeet Gaikwad
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
Basavaraj Tonagatti
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?
Sujeet Gaikwad
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.
Basavaraj Tonagatti
Sujeet-No more funds…two to three funds are enough. More funds leads to more complication and no purpose of diversification.
Sujeet Gaikwad
Thanks a lot Basavaraj 🙂 I will continue with existing funds (w/o gold)
roshan
sir
thanks for your reply ….. and please suggenst me some good funds to invest for 2 of 3 year …regards
Basavaraj Tonagatti
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.
Bhagwan Murthy
Why is 5 year return always maximum?
roshan
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
Basavaraj Tonagatti
Roshan-Investing in equity mutual funds for tenure of 2-3 years? Stay away…
Suddy
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
Basavaraj Tonagatti
Suddy-May I know why so much over investment in PPF and LIC?
Suddy
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).
Basavaraj Tonagatti
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.
shankar
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.
Basavaraj Tonagatti
Shankar-Why no Life Insurance? Also how you opted HDFC Fund?
Sri Ganesh
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.
Basavaraj Tonagatti
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?
Shalabh
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
Basavaraj Tonagatti
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.
vishnu k nair
sir, i would like to invest in ELSS scheme.
Which is the best option available right now?????????
Basavaraj Tonagatti
Vishnu-My choices are already mentioned above.
Harshal
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
Basavaraj Tonagatti
Harshal-Go with Franklin India Bluechip Fund.
mohit
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
Basavaraj Tonagatti
Mohit-Equity investment for a period of 3 years? Sorry none of equity plans are suitable for you.
pankaj
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
Basavaraj Tonagatti
Pankaj-I recommended them for long term view but not such ups or future downs. So I still stick to them.
Shekhar
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
Basavaraj Tonagatti
Shekhar-First ask yourself whether by investing additional 5k in new funds will actually serve any purpose like diversification?
dheeraz
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
Basavaraj Tonagatti
Dheeraz-How you arrived at these funds?
Pradeep Kumar
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
Basavaraj Tonagatti
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??
Sameer Singh
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
Basavaraj Tonagatti
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.
MK
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
Basavaraj Tonagatti
MK-First fill your emergency kid with term insurance, health insurance, accidental insurance and minimum 6 months household expenses. Then we discuss about investing.
Rajib Bhaumik
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.
Basavaraj Tonagatti
Rajib-Go for HDFC Balanced Fund.
Deepak George
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
Basavaraj Tonagatti
Deepak-If your time frame is too long then why to worry about sudden jerks like bull or bear run?
Ajay Gupta
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.
Basavaraj Tonagatti
Ajay-May I know why around 50% of your salary towards PF?
raj
basavaraju sir
what about UTI OPPERTUNITY in current scenario
Basavaraj Tonagatti
Raj-It moved to large cap category. But apart from that fund is still best performer. You can check valueresearch.
Mahesh Susarla
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.
Basavaraj Tonagatti
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.
Mahesh
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
Basavaraj Tonagatti
Mahesh-Restrict your gold investment to not more than 10% of portfolio.
Sri Ram
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
Basavaraj Tonagatti
Sri-I don’t think you require Mirae or Religare. Rest are ok for me.
Abani
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.
Basavaraj Tonagatti
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?
Abani
Sir,
Minimum 20 years.
Basavaraj Tonagatti
Abani-Then you can choose any ELSS from above said list.
samuel
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.
Basavaraj Tonagatti
Samuel-Basic things like insurance and emergency funds are all in place?
samuel
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
Basavaraj Tonagatti
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?
Ashish
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.
Basavaraj Tonagatti
Ashish-I am comfortable with all except ICICI Top 100.
Jithesh
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
Basavaraj Tonagatti
Jitesh-I still suggest to go for ICICI Focussed Bluechip only because of it’s consistency. Yes expense ratio also matters in long run.
Jithesh
Hi Basavaraj,
I will go ahead with your suggestion.
Thanks a lot,
Jithesh
Sajal Kumar
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.
Basavaraj Tonagatti
Sajal-Area of investing depends on your goals. So how can I guide you?
N singh
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
Basavaraj Tonagatti
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.
N SINGH
can u tell me about some more SIPs which can perform better in future
Basavaraj Tonagatti
Singh-Existing funds are enough.
shailendra k
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,
Basavaraj Tonagatti
Shailendra-Define what do you mean by HIGH RETURN AND HIGH RISK. Understanding your financial life is very much important while advising.
JAI NU JACOB
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.
Basavaraj Tonagatti
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?
JAINU JACOB
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.
Basavaraj Tonagatti
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.
Mani
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?
Basavaraj Tonagatti
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.
Anand
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
sasikumar
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
Basavaraj Tonagatti
Sasikumar-Retain any one from ICICI or HDFC Equity.
Niraj
Hi Basavaraj,
Do you know how is Reliance tax saver fund?
Thanks
Basavaraj Tonagatti
Niraj-It is good fund
Umesh
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.
Basavaraj Tonagatti
Umesh-You are firing at air without knowing where it will hit. Please first understand your requirement then come up for help.
Nagaraj
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
Basavaraj Tonagatti
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.
Nagaraj
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..
Basavaraj Tonagatti
Nagaraj-Pleasure 🙂
Jasmine
For investing in Axis Long term equity fund(G), which option is better- SIP of 1500 per month or a 50000 one time investment.
Basavaraj Tonagatti
Jasmine-It depends on your financial status and how you are planning for goal.
Jasmine
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.
Basavaraj Tonagatti
Jasmine-As of now I have not found an investor who timed the market perfectly whether he is Warren Buffet or Rakesh Jhunjhunwala.
Jasmine
Thanks a lot for ur reply.
Mohamed Rafi
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
Basavaraj Tonagatti
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?
Mohamed Rafi
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
Basavaraj Tonagatti
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.
Mani
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.
Basavaraj Tonagatti
Mani-Thanks for sharing your views. But the person in question have enough knowledge even to pick a single stock??
Mani
I know that. but some other person may benefit from this.
Basavaraj Tonagatti
Mani-Who will find that some other person is expert in direct equity or not?
Mani
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.
Basavaraj Tonagatti
Mani-But without knowing their full financial life we can’t guide on online platforms. Especially by sharing few lines from readers.
Mani
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
Basavaraj Tonagatti
Mani-Pleasure 🙂
Mohamed Rafi
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.
Priyanka
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
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?
Basavaraj Tonagatti
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.
Indrani Choudhury
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
Basavaraj Tonagatti
Indrani-Why so many under performing SBI funds? Also why you don’t want use SIP?
Indrani Choudhury
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
Basavaraj Tonagatti
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?
Indrani Choudhury
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
Basavaraj Tonagatti
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.
manoj thamke
hello Mr.Basu, I am having 4 mutual funds since last 3 yrs and since last 1 yr I am not investing in them. I have HDFC TOP 200 G,reliance energy growth, Sundaram mutual funfd growth, IDFC growth,. Now I want to restart again in MF. Only thing I wanted to know that what should I do,should I invest in one of those funds or any new fund. As my fund adviser doesn’t suggest me much about it and he simply follows about my demand of fund.I want to start in small amount of 5000/month.Pls help me and suggest .
Basavaraj Tonagatti
Manoj-Retain HDFC Top 200 and IDFC (if it IDFC Premier Equity). Rest two are worst. So better to come out of those two funds. Continue your new investments in the said funds as usual.
Sri Ram
Hello sir,
I am sriram , my take home salary is 45k. i already have LIC policy & health insurance. Now i am planning to invest in MF around 20k per month for long term period around 10-15 years. please suggest me any five best funds to invest.
Thanks & Regards,
Sri Ram
Basavaraj Tonagatti
Sri-Do your LIC policy covers life risk of around Rs.1 Crore? If not then first fill that gap then we discuss about investment.
Sri ram
sir,
My LIC policy covers life risk of 50 lacs.
Regards,
Sri ram
Basavaraj Tonagatti
Sri-Then first fill the gap.
Nagaraj
Hello Basavraj,
thanks for the blog, this will educate some of the naive users like me. i am planning invest 1o K per month, after doing bit of check i narrowed down to the below,my plan is for long term 10 -15 y
1. HDFC Top 200 Fund : Open Ended Growth Scheme – 4000 : chose this checking the past 10Y average returns and fund manager reputation.
2. HDFC MidCap Opportunities (G) –3000
3. ICICI Pru Value Discovery Fund (G) -3 000
I intend to do direct with fund house, also you suggested go through CAMS/Karvy – mention Direct should be same too. Kindly advise..
Basavaraj Tonagatti
Nagaraj-You can go ahead.
Priya
Hi Basu,
Is it a good idea to book profits once the annualized returns is 25 or 30 % and move to a safer options like FD, though investment is for 10 to 15 years. Or keep the profits too invested till 10 years.
Please advise
Basavaraj Tonagatti
Priya-Go out of equity only when your goal is about to come. But never look at current uptrend or downtrend. Because your eyes are not at NOW but at future date. I know few advisers may suggest you this technique as they get one more commission by your entry into funds 🙂
Sushil S
Hi Basu,
I have the below MF and have been investing in SIP for 3 years now.
HDFC top 200
L & T Equity fund
IDFC Premire Equity
ICICI Value Discovery fund
DSP Small & Mid cap fund
Now, i want to redeem L&T and DSP and have Large cap SIP. Can you please review my existing SIP and also suggest me a Large cap MF ?
thx in advance.
Basavaraj Tonagatti
Sushil-Retain HDFC and IDFC or ICICI.
mohan
Hi Basu,
Your providing awareness in financial planning as an CFP appreciated for that I need your suggestion as possible as possible I Started Investing in MFs and my portfolio consists 6 funds of Birla Sunlife top100
ICICI pru focused bluechip,
HDFCmidcap opportunities,
Reliance Equity opportunities fund,
ICICI pru value discovery fund and
Mirae Asset INdia opportunities fund 2 large cap 2 multicap and 2 small and midcap My time horizon is 5+ years Is my portfolio balanced and In case In near future after 2 Years if i need money desperetly among these funds which fund i can go for redeem any suitable suggestions for my portfolio??
Basavaraj Tonagatti
Mohan-Why two funds? One fund from each category is enough. Do you feel by investment in two funds in each category will actually diversify? No…so retain one fund from each category.
rahul
Im doing Additional purchase on these funds every month along with SIP is there any effect while redeeming from these additional purchase units every month..Actually how it takes the time frame when i had additioanal corpus ill go for additional purchase suppose if i would like to reddem after 2 yrs what date it will consider my additional purchase date or fund initiated date pls clarify sir
Basavaraj Tonagatti
Rahul-They follow the process of First In and First Out (FIFO) to calculate the taxation or exit load. Hope you understood. If still confusion then let me know.
shalil
dear basu
i have a 1 year old baby girl. i am looking for an investment plan for her future. i plan to invest around Rs.5000 p.m till say next 10 to 15 years. can you suggest me which is the best investment plan. i am looking for growth of above 10 %. is MF the only plan available ? pls suggest ?
regards
shalil k
Basavaraj Tonagatti
Shalil-Before that how you planned your life insurance, health insurance, accidental insurance, emergency fund and may I know your current investments?
shalil
dear basu.. below are my current plans
1. term insurance done 1 with LIC and 1 with HDFC online .. total 1.2 crore
2. couple of more LIC insurance of sum assured of say 20 lacs like money back and endowment policy. ( i am seriously looking whether to discontinue this and use the yearly amount in some proper investment schemes which does not have dependancy on insurance policies. with my research i have found in LIC insurance policies that the returns is just 4 to 5 % with insurance, whereas Term insurance plus a separate invsetment schemes (yielding more than 10 %) is the most ideal. i am thinking of choosing an online LIC term insurance and closing my existing 3 LIC Insurance policies and re-investing these funds in a better way .. Any suggestions here.. ??
3. i have got medical insurance for my family covered via my company. plus i am thinking of buying medical insurance of Rs.3 lac each this month end for my elderly parents (for my mother who is diabetic a plan from apollo munich energy diabetec and for my father apolo optima senior). the yearly installment is coming to around Rs.40,000 for both of them.
4. i have got some 4 lacs in my saving account which i am thinking of keeping them as emergency fund by investing in Ultra Short Term Debt Funds with this cash in hand. is this OK or you suggest somethign better ?
shalil
?? any suggestions ?
sahil
dear sir,
I am sahil I really appreciate the way your suggest the people for investment. I am 33 year old married I have some amount 1 lac which I want to invest in one time ( not term investment) for long term 10-15 year. I am really very new and know nothing about the various investment options. I have 2 life insurance policies (icici prulife life time gold and hdfc classic sl assurance) I have my health insurance provided by my employer.
I will greatly thankful to you if you will suggest me a suitable investment option for me with good expected return.
thanks and regards
Basavaraj Tonagatti
Sahil-First cover your life with proper life insurance (ideal insurance cover should be around 15-20 times of your yearly income). Second thing do you have emergency fund (ideal fund should be around 6 months household expenses) in place??
sahil
dear sir,
thanks to reply
I have 10 lac as emergency fund invested in FD. I have 1nother 1 lac saving which I want t invest for long term 15 year as I do not have regular monthly income that is why I dont want sip please sir suggest me the suitable long term investment with this amount for the higher education of my son (3months)
thanks a lot
Basavaraj Tonagatti
Sahil-Choose any one large cap fund from above said list.
Rajeev
Dear Basavaraj,
I want to invest in following mutual funds for a period of 10-15 years.
1) ICICI Pru Focussed Bluechip Equity Fund – Rs 6000
2) Reliance Equity Opportunity fund – Rs 6000
3) ICICI Pru value Discovery fund – Rs 6000
4) HDFC Balanced fund – Rs 6000
5) Franklin India Income opportunity fund – Rs 6000
Kindly suggest shall I invest in these funds.
Thanks & Regards,
Basavaraj Tonagatti
Rajeev-Why two small and mid cap funds (Reliance and ICICI Discovery)? Also if your time horizon is more than 10 years then why to invest in income and balanced funds? Do these funds selected to invest some % into debt category? If so then you don’t have any other investment in debt category currently like PPF, Bank FDs or RDs?
Yashavantharaja
Dear Basavaraj,
My name is raj, I am planning to investment below mutual funds (Tax saving )every month 5000 for 5 years. What is your suggestion
Axis Long Term Equity Fund —— Investment Amount: 5000 /PM
Canara Robeco Equity Tax Saver Fund – Regular Plan —— Investment Amount: 5000/PM
Franklin India Taxshield Fund —— Investment Amount: 5000 /PM
ICICI Prudential Tax Plan – Regular Plan —— Investment Amount: 5000/PM
Basavaraj Tonagatti
Yashvanthraja-If your waiting period is 5 years then better to stay away.
Yashavantharaja
Thanks for replying to my request. Kindly advise any mutual funds which include tax saving also. i am planning to invest 5 years and will wait for another 5 years (Total 10 years from investment)
Kindly provide your contact number.
Basavaraj Tonagatti
Yashavantharaja-Go with ICICI.
Bhartendu
Kindly review the following plan and suggest for long term plan (15 years & above)
ICICI Prudential Focused Bluechip Equity (Growth) : 7000
UTI Equity Fund (growth) : 5000
HDFC Mid-Cap Opportunities Fund (growth) : 4500
ICICI Prudential Value Discovery Fund (growth) – : 4000
Mirae Asset India Opportunities Fund : 3000
please advise on this.
regards
Basavaraj Tonagatti
Bhartendu-Retain ICICI, Mirae and HDFC.
Bhartendu
Thanks
one clarification, are your suggesting both ICICI funds or any one of the two?
Sakndha
Hii Basu,
I had invested Rs. 25000 in HDFC LONG TERM ADVANTAGE FUND-DIVIDEND and Rs. 25000 in ICICI PRUDENTIAL TAXPLAN – DIVIDEND in Feb 2011 (Both ELSS). I am getting 13.25% and 15.25% annulised return as on today.
Shall I withdraw this amount and reinvest via SIP in other (Growth) funds or shall i continue…? My horizon is minimum 10-15 yr.
Thanks.
Skandha
Basavaraj Tonagatti
Sakndha-If your time horizon is more than 10-15 years then why you are tempting with current return? Also may I know why you opted dividend option? Whether it is payout or re-investment?
Skandha
It is payout option. Actually i was not aware of this fund type hence invested..:(.
pl. suggest.
Thanks
Skandha
Shabeer
please review and advise me for 5 MF’s ( total 15000 monthly )
ICICI Pru Focused Blue Chip Eq Fund-Reg(G) : 3000
Birla SL Frontline Equity Fund(G) : 3000
HDFC Mid-Cap Opportunities Fund(G) :5000
DSPBR Small & Mid Cap Fund-Reg (G) or DSP BlackRock Micro Cap Fund – Regular Plan – : 1000
Reliance Equity Opportunities Fund(G) : 3000
please advise and suggest- thanks
Basavaraj Tonagatti
Shabeer-Instead of Birla I suggest ICICI Dynamic and I don’t think too many mid and small are required.
aji thomas
Thanks basavraj sir for your earliar clarification regarding ELSS scheme.
I am a new invester And with the help of your blog and small research i made the following portfolio with Rs.5000 r for 10 years-
1. Large Cap : ICICI Prudential Focused Bluechip. 2000 Rs
2. Large & Mid Cap : UTI Opportunities.2000 Rs
3. Mid & Small Cap : IDFC Premier Equity Regular.1000 Rs
Is it ok or do you suggest some change. Kindly suggest i,ll be highly obliged
aji thomas
Thanks basavraj sir for your earliar clarification regarding ELSS scheme.
I am a new invester And with the help of your blog and small research i made the following portfolio with Rs.5000 r for 10 years-
1. Large Cap : ICICI Prudential Focused Bluechip. 2000
2. Large & Mid Cap : UTI Opportunities.2000
3. Mid & Small Cap : IDFC Premier Equity Regular.1000
Is it ok or do you suggest some change. Kindly suggest i,ll be highly obliged
michael
Hello Sir,
I have been holding 3 funds on long term basis. They are Birla Frontline Equity, Icici Focussed Blue Chip and Quantum LT Equity. Recently I redeemed DspBr Equity Fund. Now in order to makeover my portfolio, I am thinking either to switch the Focussed Blue Chip fund to Icici Value Discovery or to add IDFC Premier Equity fund. Please advise or comment in this regard please. Many thanks.
Basavaraj Tonagatti
Michael-Better to come out of Birla as it overlaps more with ICICI. Retain IDFC, and you may continue with these two funds along with one small and mid cap fund.
dikshant
sir I hv invested 20k p.a in hdfc life pro growth plus in opportunities fund and 15k p.a in hdfc sl pro growth super 2 in bluechip fund after seeing their returns wht would u suggest should I disclose dis funds or should I continue for more den 5 years as I hv opportunity to disclose one fund I.e sl pro growth super 2 as its bonds paper r still to recieve nd I wanna invest in mutual funds soo as a fresher which funds should I choose for sip of 2000 suggest me 2 funds which provide higher returns say 7+ years thanx
Basavaraj Tonagatti
Dikshant-Do you feel they are mutual funds?
Rahul Menon
Hello ,
I have already taken SIP of 2000/- each on
1) HDFC equity fund(G)(diversified)
2) ICIC pru focussed bluechip(G) (Large)
Wanted to take one more SIP OF 2000/- . I have shortlisted few of the fundz i.e
1) Quantum long term quity
2) UTI oppurtunities
3) HDFC mid cap oppurtunities .
4) IDFC premium quity regular.
Would be highly obliged if you can suggest me any one from the above .
aji thomas
Thanks sir for your clarification regarding elss. So how can we do investment in Elss if we cannot redeem our mney after 3 years
Basavaraj Tonagatti
Aji-I already replied to it for your earlier comment. Please go through it.
Amit
Hi Basavaraj,
I have been investing into the following ( SIP ) mutual funds from past 2 years.
ICICI blue chip – Large cap -4k pm
IDFC premier equity Mid cap – 2.5k pm
SBI Gold – 1.5 k
I am planning to open a new portfolio, Can u please advice me on the same
And also let me know if i should continue on the above mentioned funds for more longer period , If yes approximately how many more years?
Any advice would be appreciated.
PS: Am 24 years age.
Thanks in advance
Regards,
Amit
Amit
Just a correction
its,
1. ICICI Prudential Mutual Fund Equity – Large cap
2. IDFC premier equity fund – mid cap
3. SBI Mutual fund Gold
I earn around 6L pa
Amit
Since the SBI Mutual Fund gold is not performing or is not upto the expectations since a long time
Basavaraj Tonagatti
Amit-Gold itself not performing well so how can the fund which have underlying asset as gold can perform well?
Basavaraj Tonagatti
Amit-Apart from SBI gold fund, I don’t have any issue with two funds. Why can’t continue in same funds for your fresh investment? No need to add funds for each fresh investment. Also equity investment should always be considered for long term goals like 7+ years. So if have such waiting period then go ahead.
Amit
Thanks Basavaraj.
Can you please let me know if I should opt out of SBI gold fund , since my investment is already down by 15%or should i give it some more time and wait until i get my capital back. ?
Thanks & Regards
Amit Shah
Basavaraj Tonagatti
Amit-Why SBI Gold?
Amit
Since the SBI Mutual Fund gold is not performing or is not upto the expectations since a long time
Achintya Kumar
Hi Basavaraj,
I am 30 Year old IT professional. Actually I have been a firm believer of Fixed Deposit type of investment instruments for the last 7 years (Like PPF [70k per year), FDs in SBI/HDFC, IDBI, etc, NSC). I also have an Insurance Policy from Metlife (Term insurance of 25 years, paid 5 annual premiums of 50k till date).
But apart from Tax Savings and Small income from FDs and similar instruments, Please advice me on how to invest my money going forward, probably Mutual fund investments and any advice on stopping any existing investments. Any Mutual Fund Investments you suggest going ahead would be very helpful.
Regards,
Basavaraj Tonagatti
Achintya-For any long term goals you can use equity mutual funds (7+ years), but for less than 3 years goals you can use FDs, more than 3 years goals you can use debt products. So choosing product depends on your financial goals rather than simply to add one more product or asset class to your kitty.
Niraj Pareeik
Hi Basavaraj
How is Axis Long Term Equity fund? I want to start SIP in this fund for tax saving and capital appreciation point of view. Also is this large cap or large & mid cap fund
Basavaraj Tonagatti
Niraj-It is good fund but slightly at higher expense ratio. You can try with Quantum Tax Saving or ICICI’s Tax Plan.
aji thomas
Basavaraj Sir!
i Wanted to know about t lock in period Elss plan if i do sip. Is SIP possible in ELSS ? If it is possible is there lock in period for each unit or i can take entire ammont after period 3 years?
For eg if i started an sip of 1000 on 1/1/14 can i take entire ammount on 1/1/17 or there would be some unit which i can take after which lock in period 3 years is completed ? Sir kindly clarify.
Basavaraj Tonagatti
Ajit-You have 3 Yrs lock in for ELSS. Do remember that each SIP is considered as fresh investment. So each investment need to complete 3 yrs. Hence don’t be in wrong belief that SIP you started today for one year will be eligible for redemption (all units) at once after 3 years from now.
aji thomas
Thanks for the clarification regarding sip of elss. So Basavraj sir! its better if we dont do SIP for ELSS FUND. Is their any better option for doing investment in Elss fund.
Basavaraj Tonagatti
Aji-It is not like that. Anyhow equity mutual funds are meant for long term. So you can opt for SIP. But the only problem with SIP for ELSS is, if fund is not performing well then you can’t switch because of lock-in. In that case one time investment seems better, because after 3 years you can come out of fund if it not performing well.
aji thomas
Thanks Basavaraj sir!
aji thomas
Thanks Basavraj sir!
Thanks for your prompt reply. Actually this portfolio is created by scripbox the online portal for mutual fund investment,they chose 4 mutual fund and investor has no choice but to invest in these mutual fund in they go through their gateway and they claim these are the best portfolio .Do they have commision from mutual fund company to include their product in thier portfolio. Sir, kindly comment on it
And sir, how safe is doing mutual fund investment through such portal including fundsindia .How can we make sure the money is safe in the hands of third party like scripbox or fundsindia.
Sir kindly reply.
Basavaraj Tonagatti
Ajit-Blindly don’t follow even me too. Investing all your money in basket is danger. So try to diversify it. I am now aware about scripbox. But I know fundsindia and their service and quality of selection of fund is good. Yes…they earn commission from fund houses. So they may push you where they earn more 🙂
ajay K
Hello sir,
ajay here age 33, married from Karnataka . my take home salary is 20000 rs .
i have LIC premium of 3000 rs per month
home loan per month 7000 rs
other expense 4000 rs
want to start investing on SIP around 1000 rs/month for 10 – 15 years for my childerens
education. some of friends refer ICICI pru focused bluechip fund & HDFC TOP 200
can you suggest how much i should invest and where or please do my portfolio.
thank you…….
Basavaraj Tonagatti
Ajay-Your 15% of earning going towards bad product (LIC). So first come out of that one (If it is not term plan). Buy pure term plan, health insurance and accidental insurance. Create emergency fund of around 6 months. Then we discuss about investment.
ajay K
Basavaraj sir,
thanks for replying to me, all the LIC plans are for 15 to 20 years duration, what to do sir ?
can u suggest me any health insurence to me, we are total 6 members including my parents, spouse and 2 childerens sir. little bit of confused sir.
Basavaraj Tonagatti
Ajay-If they completed 3 years then try to come out. Better to take separate health insurance for your parents and for your family separately. Go wtih Star, apollo, maxbupa or national health insurance.
ajay K
thanks a lot Basavaraj sir…
aji thomas
a very informative blogs. Thanks Basavaraj for this informative blog. kindly suggest and comment on the following portfolio.With sip investment of Rs 5000 for 20 years in
UTI Equity Fund (G)
ICICI Prudential Top 100 Fund (G)
Canara Robeco Equity Diversified Fund (G)
ICICI Prudential Focused Bluechip Equity Fund (G
Basavaraj Tonagatti
Aji-Why all large cap funds? It is wrong to invest all in one classified funds. Retain ICICI Pru Focussed Bluechip and come out from rest.
Tridip
Hi,
Please let me know if the below Fund allotments is OK:
HDFC Short Term Opportunities Fund for 1 yr -1500pm (for marriage expenses)
Birla Sun Life Top 100 Fund – Monthly 2000 for 10 years
ICICI Pru Focused blue chip Equity Growth-2000 for 10 years
SBI magnum midcap fund-2000 pm for 10 years
DSP BlackRock India TIGER fund-2000pm for 10 years
All my insurances are in place.
Thanks in advance
Basavaraj Tonagatti
Tridip-Please stay away from debt funds if your time horizon is less than 3 years (due to recent tax changes), if you are at 20% or 30% tax slab. Also DSPBR, because it is infra fund. So if you are confident of infra sector then go ahead.
Rick
I visited your website today only and let me tell you I really liked the way you write and explain things. I really gained some insight. I need a little investment guidance from you.
I am 27, married. I have ample insurance cover. I don’t need health insurance as I am fully covered by my employer. I want to invest 5k per month by sip. My investment horizon is 10+ years. I would like to take moderate to high risk. what fund will you suggest for me?
I was researching about some fund like UTI opportunites , icici pru focussed bluchip, hdfc top 200 and a few more but cant come to any conclusion.
What is your take on index funds if I want to invest for long term and be, well a little risk averse!
Oh lastly I am a new investor and this will be my first investment.I am investing by fundsindia
Basavaraj Tonagatti
Rick-Use Index Fund (less expensive) along with that invest in ICICI Bluechip and small and mid cap fund like IDFC Premier Equity.
Rakesh Dadhich
Hi Basu,
I want to invest 6000/- per month into SIP and I have selected two plans (as i have to select only one) :
1.ICICI Prudential Tech Funds – 3000
2. SBI Magnum Mid-cap – 3000
Or should I invest into the below funds:
1.ICICI Pru Focussed BlueChip Equity(G) – 3000
2.IDFC Premier Equity Regular (G) – 3000
Is this right funds for long term (lets say around 15-20 yrs) ?
Regards,
Rakesh D
Basavaraj Tonagatti
Rakesh-Choose option two.
PRIYABRATA SAHU
Hi Basu,
I want to know about “L&T Balance Cycle Fund”. This is different kind of fund and it’s NFO start from 30th July to 13th August, 2014. I tried to know about this kind of fund, but i am unable to get it. I think this kind of fund firstly introduced in the market.
Shall i go for this NFO: “L&T Balance Cycle Fund-Growth”. Please Guide.
Thanks,
Priyabrata Sahu
PRIYABRATA SAHU
Sorry Basu.. it is Typo Error: This fund is “L&T Business Cycle Fund-Growth”.
Basavaraj Tonagatti
Priyabhrata-I am not big fan NFOs.
manish
Hi
manish here age 33, married from mumbai. my take home salary is 62k .
company health insurance product for 4 lakh.
i have LIC premium of 6k per month
home loan per month 31 k
other expense 10k
want to start investing on SIP – some of friends refer ICICI pru focused bluechip fund.
can you suggest how much i should invest and where
Basavaraj Tonagatti
Manish-First by term insurance (15-20 times of income), own health insurance, emergency fund for 6 months, accidental insurance. Then we discuss about investment.
Vivek
hi,
myself vivek and my age is 26.Currently i am working in a soft company with take home of 35k pm.
lets say,
expenses – 10k
ppf + bank fd + savings – 15k
As i am planning to marry after 3 yrs, i am not interested in any insurance or watsover.may be once i get
married i can start thinking of any insurance for my family.
I have remaining 10k in my hand.so thought of investing into mutual funds for long term.
So i have selected few funds,
ICICI Prudential Focused Bluechip Equity
–
Quantum Long Term Equity or uti opportunities
–
Reliance Small Cap Fund (G) or DSP-BR Micro Cap Fund – RP (G) or or hdfc mid cap opportunities or uti mid cap
–
hdfc balanced fund or hdfc prudence fund
–
Are My understandings correct ? or should i include one ELSS fund and balanced fund(as i already plannin to put some in FD) in my portfolio ?
can u help me to select proper funds and how much i can invest in these ?
Basavaraj Tonagatti
Vivek-Why Rs.15K in PPF+FD+Savings? Do you know as you grow older the premium you need to pay for same sum assured and term will go on increase? What is your time horizon of this equity investment? I am ok with ICICI, Quantum or UTI, HDFC Mid Cap but not favor of balanced funds. Because you already over investing in dept products.
Vivek
Sorry.What i meant to say is, just to cover tax i am planning to invest 50k or more in ppf and another 50k or e more in fixed deposit per year not monthly.
Basavaraj Tonagatti
Vivek-Please don’t concentrate your investment only to save tax.
Vivek
As i have explained my salary and expenses , could you please help me on this.As of now i don’t have any responsibilities(no dependency).How i can invest 25k pm.
Priyanka
What is your thought on below mid-small cap funds. I want one of these in my portfolio to book profits in bull market.
1. BSL Pure Value fund
2. DSP BR micro cap
3. Reliance small cap fun
Basavaraj Tonagatti
Priyanka-If you are so much confident of bull market and of short term in nature then why can’t trade in direct equity? BSL will be my choice, lesser expense ratio, consistent long performer than other two.
Priyanka
Thanks for the reply. I was thinking it this way… Invest in these funds and keep booking profits for my other expenses like my ppf, fd etc. If there is no profit just leave it alone n keep on investing until I profit again.
I felt mutual fund is better than direct equity as I am not very well versed with picking up such stocks…
Basavaraj Tonagatti
Priyanka-But your strategy seems to be of trader than investor. So my serious suggestion is to not to do. If you are ready to take risk of such then you can. Please keep in mind that equity is for long term but not for short term.
Priyanka
Thanks…
Rakesh Bajaj
Hi Mr Basu ..Great Job and nice to see the way u handle – kind request to guide me on below :
Age :41
Year Requirement in lacs
2018 25 Child 1 Education
2022 30 Child 1 Education
2023 30 Child 2 Education
2027 60 Marriage child 1 and Education 2
2032 40 Marriage child 2
Total 185
Investment :
Large Cap : Axis equity fund or ICICI prud focused bluechip 6000 per month
Large and Mid : UTI opportunities 6000 per month
Mid and Small cap Equity 6000 per month
Balance Fund equity HDFC Balance fund equity 6000 per month
kindly guide if the above selection is correct or requires modification. Regards Rakesh
Basavaraj Tonagatti
Rakesh-Why two large cap funds? Infact currently UTI is also rated as large cap fund (value researchonline). So retain one large cap, mid and small cap and balanced fund. Regarding the amount you mentioned above, whether they are current values or future values? If they are future values then are they inflation adjusted? Also 2018 is short term goal. So for that why to invest in equity?
A S
Hi…
I am working in a Bank for past 4 years, my age is 28 and I am unmarried. My current CTC is around 6 lacs and my monthly take away is around 40k. My current Investments are :
1. Rs 1 lac FD for 1 year.
2. RD of Rs 15,000 per month.
My Financial Goals:
1. Car of around 6 lacs next year. For that I will take 3 lacs loan remaining savings.
I want to break my RD and invest 15k per month in different options.
I currently have no insurance or any other investments. So kindly guide me , the suitable options.
Should I take a term plan? Of what value? If you have some products in mind pls share.
Should I invest in SIP/MF? What value? products?
looking forward to hear from you.
Basavaraj Tonagatti
AS-First buy term insurance to the tune of around 15-20 times of your yearly income, health insurance, accidental insurance and critical illness insurance. Create emergency fund of around 6 months (which you need to touch only at emergencies). Once all these are at place then think for retirement goal (an utmost important than car). Then we discuss further…but do you feel car is necessary item or show off item?
AS
Thanks a lot for your reply.
As you have suggested.
For term plan : I have checked Max Life, HDFC & ICICI pru online term plans. In Max Life they are offering a monthly pension amount with Sum assured. Is it good? Also HDFC term plan require no medical check ups. Kindly suggest which one is better. Also should the term be 20 years or 30 years?
Health Insurance : I have company provided health insurance of 5 lacs from ICICI Lombard. Should I take an extra health insurance? What are my options?
Accidental & Critical illness insurance : What are my options? Does they include the health insurance plan?
Contingency Fund : As you suggested a contingency fund for 6 months salary, should it be in FD or some other more liquid options? Please clarify.
As far as the CAR goes, it is a necessary for me, but I can postpone it for 1 more year.
As I have around 15k per month surplus income, how much should I invest in PPF , SIP/MF or other instruments.
Thanks in Advance..
Basavaraj Tonagatti
AS-MAX with pension is not good as it’s premium will be higher and you can’t liquidate easily on claim. Go with HDFC,ICICI, MAX (without pension). Better to have your own than depending on company provided insurance. Accidental insurance not include Health Insurance. Considering current taxation better to keep it in FDs. Investing % to each asset class depends on goals. So I can’t comment on that. Based on your risk appetite and goal time horizon, invest.
shalil
dear Basu
i have got around 2,25,000 amount which i want to invest.I am looking Ultra short term for my emergency fund and other as an investment for min 4 years. i am thinking of below options which is a mix of lumpsum and SIP MFs. please correct me.
1. IDFC MM Treasury – SIP – 13,000 per month
2. Pramerica Ultra Short Term Bond – 13,000 per month
3. BSL Dynamic – Lumpsum – 75,000
4. Pramerica Equity – Lumpsum – 75,000
5. BSL Frontline Equity – Lumpsum – 70,000
6. Reliance Equity Opportunities Fund – Lumpsum – 70,000
thanks
shalil
Basavaraj Tonagatti
Shalil-In my view for emergency fund better to park with Bank FDs (because of recent tax changes with debt funds). For 4 years tenure you can go with BSL fund. I am not suggesting any equity fund for you.
Swati
Hello Basu,
I am 28 yrs old and would like to invest around 5000-10000 K pm in SIP for around 5-10 years. I already invest in FDs and PPF as well. Thus my expectation form SIP is good returns.
I am planning to take up 1 large cap (30%), 2-3 mid cap funds (60%) and 1 small cap fund (10%).
Kindly suggest funds I shall invest in since I do not have very good knowledge in this area. Also, any tips are welcome.
Thanks
Basavaraj Tonagatti
Swati-First set your time exactly but not like random 5-10 yrs. Please select one large cap, large and mid cap and mid and small cap funds.
Shivendra
Can you please suggest whether the recommended MF’s are still good to invest in the current scenario? This is the first time I am planning to invest in MF and wanted to know your prudent advice before proceeding.
Thanks a lot in advance.
Basavaraj Tonagatti
Shivendra-The above listed funds currently showing lesser star grades then their peers. But I still believe that they are best when you look for long term growth.
MANU SHARMA
Hello Sir,
I want to Invest in Mutual Fund through SIP .For 3 to 5 year
(1) want to invest 5000 per month for 3 year through SIP (Recommnend Fund pls)
& also want to invest 2000 per month for 5 year through SIP (Recommend Fund pls)
Regards
Manu Sharma
Basavaraj Tonagatti
Manu-If your time horizon is 5 yrs or less then better to stay away from equity mutual funds.
Priya
Mr Basu,
I am just a beginner in Investing. I am seeking your advice to invest about Rs 10000 pm as SIP in mutual fund for long term goals . My daughters are now 4 yrs and 2 months old each and my husband is 37 yrs old. So I need a large amount at say 10-15 yrs from now for my 2 daughters’ education and marriage and also a corpus for our retirement. I am planning to invest in mutual funds. I already have SIP in UTI opportunities @1500 pm and HDFC Top 200 @1500 pm. In my small research I understood UTI opportunities is a good fund for long term, so planning to increase the SIP to Rs 3000 pm. Is that a good idea? Besides this please guide me in choosing the best funds and also let me know any other investment ideas that serves our needs.
Basavaraj Tonagatti
Priya-You can continue both existing funds and along with them add IDFC Premier Equity (mid and small cap). Also try to invest around 30% of your overall investable amount into PPF (considered as debt product).
Priya
Thank you so much for your quick response, time and your valuable advice. I shall make the changes as advised. Your articles are very useful and guiding beginners like me in investing. Please do continue writing.
Bhartendu singh
Hi,
your articles and advices are really helpful for investor like me.
I want to start SIP with long term goal (16 – 20 years). I have shortlisted some funds as below;
1. ICICI Prudential Focused Bluechip Equity – Rs. 7000/-
2. UTI Opportunities Fund OR Mirae Asset India Opportunities Fund – Rs. 5000/-
3. HDFC Mid-Cap Opportunities OR Religare Invesco Mid N Small Cap – Rs. 4000/-
4. HDFC Balanced Fund – Rs. 3000/-
Kindly suggest whether it is OK
also pls refer No. 2 & 3 and suggest which one I should select
apart from this kindly suggest me one more fund for Rs. 5000/-
regards
Bhartendu
Basavaraj Tonagatti
Bharatendu-Go ahead…regarding point nos.2 and 3, my selection will be UTI and HDFC.
Bhartendu
Thanks for your guidance.
kindly suggest if I want to invest Rs. 5000/- more should I buy new fund (if yes which one) OR invest in these only.
Basavaraj Tonagatti
Bhartendu-Never select new funds again and again for further investments. You can choose 4-5 funds and start investing and continue for future fresh investments too.
Sundar
Dear Mr Tonagatti,
Really appreciate the views and informal consultations that u have been giving to people – this is of immense help to lot of people. I have adduced below a snapshot of my financial profile of my family & goals. Request u to suggest a good portfolio of Equity oriented funds for my SIP strategy.
Financial Profile:
Risk Cover: Life Insurance – Yes; Health Insurance – Yes; Accident Insurance – (covered via Employer);
Assets:
Real Estate: – Two properties, combined current market value of about 1.5 Cr – having pending loans for about 24 L
Equity: Nil
Debt: TDs worth about 3 Lakhs – Using it as Emergency Fund
Goals:
Long term wealth creation – horizon of 20 years. Can do SIP of about 10,000 per month in my name and another 10,000 in my wife’s name. Going by ur suggestion, I guess I should pick up a portfolio of 5 Funds – not sure if I select the same Set of funds for both the SIPs (i.e mine & my Wife’s).
Basavaraj Tonagatti
Sundar-Yes you can have the same above funds for you as well as to your wife’s portfolios.
Sundar
Thanks Mr Tonagatti. Pls see if below portfolio is good for an investment plan of 10,000 pm.
Franklin India Bluechip Fund(G) – 2000
ICICI Pru Focussed BlueChip Equity(G) – 2000
UTI Opportunities (G) – 2000
IDFC Premier Equity Regular (G) – 2000
HDFC Balanced Fund (G) – 2000
Basavaraj Tonagatti
Sundar-Retain one among Franklin, ICICI or UTI.
Sundar
Mr Tonagatti, ok fine. In that case, if I retain Franklin can u pls suggest 2 other funds in place of ICICI & UTI. Thanks.
Sundar
Mr Tonagatti, ok fine. In that case, if I retain Franklin can u pls suggest 2 other funds in place of ICICI & UTI. Basically i was trying to pick out 2 Large Cap, 1 Mid Cap, 1 Mid-Small Cap and 1 Balanced fund from ur Shortlist. Thanks.
Basavaraj Tonagatti
Sundar-You can go with ICICI. But why two large cap funds? It will overlap your investments. Think and decide.
Sundar
Mr Tonagatti. My idea of 2 Large Caps within a portolio of 5 was on assumed (!) ‘safety’ cues – but looks like its not a decent strategy. Request u to let me know ur recommended choice of 5 funds for my portfolio – I would want to invest about 2000 pm in each fund on this portfolio with a horizon of about 15-20 yrs. Thanks.
Basavaraj Tonagatti
Sundar-Select one fund as I said earlier and start investing. Four funds are enough.
Sundar
Hi,
But it comes only to 3 (mentioned below). Pls can u point out the 4th fund that u r referring to. Thanks.
IDFC Premier Equity Regular (G) – (since u asked me to select one among Franklin, ICICI or UTI – I selected Franklin)
HDFC Balanced Fund (G)
Franklin India Bluechip Fund(G)
Basavaraj Tonagatti
Sundar-Select one large and mid cap fund from above list.
Priyanka
Hi
I hold units through SIP in below funds. Time frame ins 15 years.
HDFC Equity G – 2000 pm (30 months)
IDFC Premier Equity G – 2000 pm (30 months)
ICICI Focussed bluechip G – 2000 pm (6 months)
My questions are
1. All are suggesting to come out of HDFC Equity as its underperforming. But when I compare my returns of HDFC Equity and IDFC premier Equity now, I find HDFC has performed better than IDFC Premier equity. Should I still come out of HDFC or continue?
2. I want to include 2 or 3 more funds. I am totally confused . Please help me pick considering I can invest agressesively and for long time.
Basavaraj Tonagatti
Priyanka-Never go with ratings of funds. Instead look for past performance and it’s consistency. So my suggestion is to continue HDFC (large and mid cap). Continue IDFC also which is small and mid cap fund along with ICICI. No need to add further funds. You can continue with same funds. Adding number of funds will not increase your return.
subashini
Sir, I want to invest 4k per month in sip for 3 yrs. Can you suggest how best I can Invest to get better returns.
Basavaraj Tonagatti
Subashini-Please don’t invest in any equity mutual funds. Instead use RD.
Kshama Mahale
I have already been investing in the following funds for a couple of years:
HDFC Top 200 (G) – 2k
Sundaram Select Mid Cap Regular Plan (G) – 2k
HDFC Prudence(G) – 2k
I’m planning to invest another 6k for 12-15 years in these different fund categories, 2 k in Large cap, 2k in mid & small cap and 2k in balanced fund through direct mode. Which funds do U suggest I should put my money in?
Basavaraj Tonagatti
Kshama-You can continue in the same funds.
Kshama Mahale
Hi,
I wanted to invest additional 6k monthly in 3 new funds and through direct mode. So wanted your advice on that.
Basavaraj Tonagatti
Kshma-That is what I said to continue in same funds.
rahul
Hi Sir,
My portfolio Consists Hdfc midcap opportunities(2k/month)
ICICI pru discovery (2k/month)
Sbi Emerging bussiness fund(1k/month)
Reliance equity opportunity(2k/month)
I have somy corpus I would like to invest in MF canu suggest me the Funds which are suitable to my portfolio and i would like to reddem sbi emerging bussiness fund can i redeem this im invested in sbi emerging from past 3 years i need your advice weather to redeem that fund or not as well as suitable funds to my portfolio Im expecting a positive reply to my mail mohankumar.info345@gmail.com
rahul
Holding period 3-5 yrs
Basavaraj Tonagatti
Rahul-Then don’t enter into equity.
Basavaraj Tonagatti
Rahul-With mere specifying your invested funds how can I judge about your portfolio? Also I am unable to understand what is your time frame and how you have choosen the existing funds.
vijay k
Hello,
Please advise on my portfolio. I am planning for investing for 20-25 years and am currently investing in following funds:
1) UTI opportunities – 3000/month
2) Reliance Equity Opportunities – 4000/month
3) IDFC premier equity – 4000/month
4) ICICI Pru Discvovery – 4000/month
Pls advise on my fund selection.
I would like to invest 3000 more every month so please advise should I add more fund and if yes which fund? Or add 3000 to my existing funds?
Thanks,
Vijay K
Basavaraj Tonagatti
Vijay-Why so many small and mid cap funds?
Vijay K
I chose one mid cap fund IDF premier equity, one multicast fund Reliance Eq Opportunity and one value fund ICICI discovery. Since my time horizon is more than 20 years I chose more various segments in mid cap space. Its aggressive but I thought with so many years the risk is relatively less. Pls advise.
Basavaraj Tonagatti
Vijay-Please understand that current mid cap company may move to large cap company based on it’s growth. But your fund will still have investments in mid caps only. So do you feel you follow the company you are investing now? Instead it is wise to spread your risk.
Vijay K
I understand. Can you pls advise on which funds to retain and which ones to add to make my portfolio more balanced for long term (20 to 25 years).
Basavaraj Tonagatti
Vijay-Please select a fund from each category either from your selected or from above and start investing.
sandeep bajaj
hello Basu,
please suggest me any investment plans in which i can invest & want a good amount after 15 years, i can save up to 10-15000/month .I have save amount for emergency also, took a policy for my kid also & also family health insurence. please tell me the proportion of investment,& approximate amount which i will get.
Thanks
Regards
Sandeep bajaj
Basavaraj Tonagatti
Sandeep-What about term insurance?
sandeep bajaj
Thanks Basu for your valuable time…tell me the best term plan also,& one of my friend tell me about Aviva I growth he is investing 4000/month & after 20 yrs getting around 46 lacks,which we assume minimum of 13 % return,& please give me reply of above query also.
Thanks regards
Sandeep bajaj.
Basavaraj Tonagatti
Sandeep-My earlier post “Best Term Insurance Plans in India (After 1st Jan 2014)” will be helpful for you.
sandeep bajaj
Thanks Basu….
Basu i am not reached at any decision yet…Look i have two goals to be achieved by the savings.
1.Best term plan.(tell me about 2-3 names of the plans & company then i can decide)
2.To get sum of 4-5 cr , how much investment & in which amount, please guide me in achieveing these goals ,it is up to you whether it is by mitual funds or any retirement plan
-time limitation can be increased to 15 -20 years, saving can also be increased…
-Hope i will get the answer of all my queries.
Thanks regards
Sandeep bajaj.
Basavaraj Tonagatti
Sandeep-Regarding best term plans you can refer my post “Best Term Insurance plans in India (After 1st Jan 2014)“. Regarding your second doubt, it is wild question to me. Do you know whether it is equity or any other asset you need to review on at least yearly base. So If I say invest in some x,y and z funds means your work is not over. Please understand that claiming Rs4-5 Cr seems to bigger now. But there are so many complications in one’s financial like for example inflation itself will beat your whole lot of earning if not do proper investment. Hence I can’t answer or provide you READY-MADE answer 🙂
malav
Hi Sir,
I want to invest 6000/pm in mutual fund for period of 15 years.
PLease suggest me 3 funds , so I can invest 2000 Rs each.
Also suggest me to invest in growth /dividend option of a fund, as I am investing for 15 years.
Waiting for Response
Basavaraj Tonagatti
Malav-You can chose a fund from large cap, large and mid cap and a mid and small cap fund. When you are planning for 15 years then opt for growth than dividend.
Malav
Hi Sir,
I want to invest 6000/pm in mutual fund for a period of 15 years.
Please suggest me 3 funds.
Which is a good option for going with dividend option OR growth option for a span of 15 years?
Please suggest me 3 funds with dividend/growth option.
Thanks in Advance
Basavaraj Tonagatti
Malav-Choose above listed funds but growth option.
Anand
Hi BasuNivesh ,
Iam going to invest in the Sips for Rs. 10,000 on the following funds for 15 years ..
please look into it and suggest me .
1. Icici focussed blue chip fund (G) – 2000
2. Uti Opportunities (G) – 2000
3. HdFc mid cap Fund or Reliance Equity Opportunities Fund (G) – 2000
4. Hdfc Balanced fund – 2000
5. Reliance regular Savings equity fund – 2000
Is That ok .. or any Suggestions …
iam looking for thr best output ..
Basavaraj Tonagatti
Anand-You can
Anand
Thanks ..
Also i want to invest in the retireplan ..
I can pay 1 lakh annualy ..
the term can be 20 years
iam looking for a lumpsum ..
which is the best company and the best plan ..
Basavaraj Tonagatti
Anand-Sadly there is no such fund which you can say as BEST RETIREMENT PLAN or Fund. So if your goal is of long term then why can’t consider equity?
Anand
i want a guaranteed returns …is there anything in the equity ..
Basavaraj Tonagatti
Anand-First check out your basic knowledge about equity then we can discuss further.
Anand
I mean to ask like is there any highest Nav guaranteed funds ….If So any Suggestions
Basavaraj Tonagatti
Anand-For your information such dummy products called Highest NAV Plans were closed by regulator. So no more highest NAV plans now in market.
Ashwary Agarwal
Hello Basu, I am a beginner and looking forward to invest in SIP/MF’s.
My investments is probably too small around Rs 5000 ( i am looking to split 5000 into 5 different funds).
Can you please suggest which all funds should I be investing and which is a better option to go for 3 years or 5 Years.
Looking forward for your favorable response.
Thanks & Regards
Ashwary
Basavaraj Tonagatti
Ashwary-If your waiting period is less than 5 years then better to stay away from equity.
Ashwary Agarwal
So you are saying SIP is not recommended at all if I want to invest for 3 years or so??
And in case I invest for 5 years then which all funds you recommend?
Basavaraj Tonagatti
Ashwary-I am not saying about SIP (please understand that SIP is not equity, but it is a way of investment), but against equity if your time horizon is less than 5 years. At the same time 5 years in the sense not exact 5 years. It must be more than 5 years.
Prakash
Sir, Also will u pls advise me if I go for the investment in the following funds on 20000 p.m for 7+ years
1) ICICI Pru Focussed BlueChip Fund (G) – 5K
2) IDFC Premier Eq. Fund -Plan A (G) – 5K
3) Reliance Eq. Opportunities Fund (G) – 5K and
4) Quantum Long Term Equity Fund (G) – 5K.
Already am investing 8K p.m in PPF and have enough insurance.
Pls suggest me whether I hv to change/replace any funds. Thanks in advance. ……. Prakash.
Basavaraj Tonagatti
Prakash-Please go ahead.
Arun ravi
Sir..now i plan to invest Rs.3000 more..would i invest in existing Sips or i start new Sips…kindly advice
AMOL
Hi Basu,
Nice article. I have come across your website first time today, nice work.
You are selected only two GEMS from each category, really nice work.
It is always difficult for us to select best funds from thousands funds.
Dear Basu,
1. I have not find – ICICI Value Discovery, ICICI Pru Dynamic in above list as both are good for long term.
2. PPFAS Long Term Fund is new, awaiting for your comments.
3. I have – HDFC Mid Cap opp, IDFC Pre Eq, ICICI Discovery
FT Blue chip, PPFAS , Quantum LT Eq. & ICICI Pru dynamic .. 07 Funds
plz reply me with your valuable comments.
AMOL
Basavaraj Tonagatti
Amol-There are plenty of permutation and combinations to select a fund. But as I said above, I selected the funds based on long term performance, fund house credibility and some other things. So I am not saying that the funds you named are bad. But adding more funds only to have more successful funds in your kitty will not make sense. PPFAS have good idea, but sadly no promotion as they not tied with any distributors. Ideal portfolio can be enough with 4-5 funds.
AMOL
Hi Basu,
Thanks for your comments. as for Pt. No 03 above, may I continue with current portfolio or would you suggest any change?
AMOL
Basavaraj Tonagatti
Amol-That is what I said and hinted you. Please check for overlapping and you can come out of funds which are in same category and retain rest. Like you have too many mid and small cap funds. Retain one and continue.
Goutam Kumar Jena
Hi,
Sir , I want to investment in mutual fund, but lack of more information i did not investment,
now i am pursuning a accounting course and doing a job in office as a accountan in delhi,
Pls sir give me some knowledge in mutual fund and which is the best for investment for me.
Basavaraj Tonagatti
Goutam-Before proceeding for investing, do you have proper insurance, health insurance, accidental insurance or emergency fund? If not then first concentrate on basic things of anyone’s financial life. Then we can discuss about investing.
Jatin
Hello Sir
I need your suggestions on my portfolio.
I am investing 10500 pm (3500*3) from last 12 months in following funds:-
HDFC Prudence
SBI Emerging Business Fund
Reliance Equity Oppurtunity
& I got pretty decent returns as well c.25%. Now my Financial Manager has suggested, that since we have some good lumpsum amount, we should park this money in some Debt fund & transfer some amount e.g. 5000 pm (divided by no. of working days) into equity (small & mid cap) to capture daily NAVs basically transfer from Debt to Equity by Systematic Transfer Plan.
& in place of above 3 funds, we should investing same amount (10500) in following 3 funds for short term (12 months) since markets is in bullish trend.
Franklin India smaller companies fund
UTI MNC
SBI Magnam Midcap
Sir please let me know your take on this. Thanks!
Basavaraj Tonagatti
Jatin-Please come out of SBI and continue with Reliance. You got a good returns all because of bull market. Now let me know your time period of investment. Because if you are investing for long term (like another 7+ years) then no need to come out. Stay with both HDFC, Reliance and also start investing in Franklin Bluechip (Large Cap).
The trick used by your Financial Manager is cautious move but when you have long term view then no need to come out in such sudden jerks of market. I am smelling something fishy in his move. Because the funds which he has chosen are small and mid cap funds which are more riskier than the HDFC Prudence fund. Also all are small and mid cap funds. So there is more risk in investing in the funds which your manager chosen than continuing HDFC Prudence Fund (Balanced).
So instead of coming out of risk you are entering into more riskier product and time. Think and decide.
Jatin
Thanks for your reply.
My investment horizon is 5+ years.
The reason he suggested me for adding 3 small & mid cap fund & pulling out from previous funds is that since market is in a bullish trend & given the good returns of these new 3 funds compared to previous 3, we’ll invest in them for 12 months & then switch back to some stable funds.
In the mean time we’ll park the lumpsum amount in debt funds.
Also could you please let me know when & why to invest in Large caps funds vs. Small & Mid cap funds.
Regards,
Jatin Chauhan
Basavaraj Tonagatti
Jatin-Do you not feel putting all eggs in same basket rather than different baskets? I suggested you large cap fund as they are less volatile than small and mid cap. It is now your call to take decision.
Jatin
Thanks Sir.
Anand
Hi Basu , I want to start an sip .. I can spend Rs. 12,000 per month ..Please suggest me the funds in all categories ..ia looking for the best returns . I can wait upto 18 years … So please suggest the funds ..
Basavaraj Tonagatti
Anand-List already mentioned above. Choose a fund from each category and start investing. Review them once a year (but for goals of more than 5-7+ yrs).
Vamsi
Hi Nivesh,
I don’t have any savings till now. So, I want invest in either MF / PPF / RD for an amount of 4000 per month for a period of 5~8 years. Can you please suggest which one is good to start with?
Basavaraj Tonagatti
Vamsi-If your investment period is around 5 Years then better to go for secured investments like RDs, Debt Funds or FDs but not equity.
Vamsi
Nivesh,
Thanks for your quick response. Normally, To invest in MF, how long wii be good?
Basavaraj Tonagatti
Vamsi-First let me clear you that mutual funds in the sense not equity. Mutual Funds have plenty of options like short term debt to Equity. But when you say equity investment then there are so many theories like who can enter. In my view the idealistic entry will be for those who have goal time horizon of around more than 5-7 Yrs.
Vamsi
ok.. So, if I can invest for a long time as you said for a period of more 5 years, which funds do I need to choose?
Basavaraj Tonagatti
Vamsi-You can choose a large cap and large and mid cap fund from above and start investing. But do remember to review on yearly base.
Vamsi
please suggest me best funds to start investing for a sum of 4000~6000 per month
Basavaraj Tonagatti
Vamsi-They are listed above.
sandeep bajaj
Thanks Basu for sharing your valuable knowledge & time….Basu i also want to opt retirement plan…..like i want around 2 cr of bank balance at the age of 60, as i told you i am 32 know.Tell me where to invest….& in what proportions….
Thanks in advance
Regards
Sandeep bajaj.
Basavaraj Tonagatti
Sandeep-First understand whether the targeted Rs.2 Cr suffice for you from your retirement age to till death? How you arrived at this value?
sandeep bajaj
hi Basu,
Its just the figure for which we can think is a good amount for peaceful life…as i lived in small city Sirsa in haryana having on house….actually i want to reach for the figure of 5 cr…but earlier i show you 2 cr, may be funds which i have planned are less.please tell me for 5 cr & savings proportion…..
Thanks for guidence
Regards
Sandeep bajaj.
Basavaraj Tonagatti
Sandeep-It involves lot of data from your end and a process of retirement planning. It is hard for me to guide by mere sharing two lines suffice to guide you. But you can consider equity mutual fund of around 80% and rest 20% in debt.
sandeep bajaj
again thanks Basu…
sorry i am not able to understand your technical terms of equity 80 % & debt 20% please can you elaborate the same…..
one of my friend told me about Gold etf (Gold biss),he is purchasing 4 gms every month & plan to do the same for 20 years,is it good option for investment?
Thanks
Regards
Sandeep bajaj
Basavaraj Tonagatti
Sandeep-Equity in the sense my suggestion is to go for equity mutual funds. Debt-If you have experience or knowledge about how debt funds work then select debt funds otherwise choose options like PPF. I am not big fan of gold. But you can have it around 5% of overall investment (that too not in physical format, but either in Gold Mutual Funds or ETF).
sandeep bajaj
thanks Basu…
can you please suggest me some funds in these categories….. what i think Basu that Modi govt may put more stress over natural power resources so can i also look forward for this sector also??as they are performing low in past but now they are boosting….whats your view….
Thanks
Regards
Sandeep bajaj
sandeep bajaj
Helo Basu,
I am new in SIP and very thanks to you for knowledge sharing.
Can you guide me that how do i invest in SIP? like i am 32 and have son of 2 yrs & a LIC policy (jeevan ankur)of 57000 pa & have enough emergency fund,have ICICI lombard health insurance of 3 lakh . I want to invest for my son (2 years old) for his higher education & my retirement.I have selected three funds please give me advice on these…
(1)Reliance Equityopportunities fund (G)
(2)Quantum long term equity
(3)ICICI pru tax plan(G)
Want to invest 10000/month up to 7- 10 yrs .
Thanks in Advance
Regards,
Sandeep bajaj.
Basavaraj Tonagatti
Sandeep-Go ahead but you being first time investor, I suggest you to go for any one large cap fund than Reliance. But choice is your’s.
Rajiv
Hi
I have below MF investments done for my long term goal of >15yrs:-
1. HDFC Prudence (Rs. 1000)
2. ICICI Prudential Dynamic Plan -G (Rs. 1000)
3. Started recently with Reliance Tax Saver Fund (Rs 2500) for Tax Purpose.
Iam also tempted to start may be Rs 500 SIP in Quantum Long Term Equity Fund
purely because of its lowest Expense Ratio.
My Questions :-
A)-> Are these MFs sufficient, Do i need to do any changes in this portfolio?
B)-> Is it wise to put money in different sectors fund? So what all should i do?
C)-> Is it wise decision to start Quantum Long Term Equity Fund also.
D)-> This is my biggest doubt wanted to clear – > What should we do, put all the
spare money in 1 MF or should purchase number of MFs. ?
Thanks
Rajiv
Basavaraj Tonagatti
Rajiv-Why two large and mid cap funds (ICICI and Quantum)? Select Quantum and continue. You also include one large cap and one small and mid cap fund from above list. Let me know the answer to basic question-“Should I put all eggs in one basket or should I put it in different baskets??”.
Rajiv
Thanks for the reply. You are right…. one should put all the eggs in diff basket as much as possible.
For my other Query which you answered – I am already continuing with ICICI Prudential Dynamic Plan for past 1 and half year.. and am getting around 20% as return in this.
Is it the good MF in which i have invested for long run?
Also, does it make sense to start with Quantum Long Term Equity MF? My only temptation was because it had lowest PE ratio.
Also, suggest me MF’s of other sectors which have a very good track record for last 5yrs atleast in which i can invest?
Thanks for your valuable inputs.
Basavaraj Tonagatti
Rajiv-Worst performing stocks also give such 20% run when there is a bull market. So don’t go by current bull market return and it’s effect on your fund. Instead I suggest you to go by historical returns of both ICICI and Quantum. Then decide yourself (if possible share what you learnt). Sector means??
Rajiv
Hi!
This is the return history:-
ICICI Pru Dynamic Reg-G: [ Sector: Large and Mid Cap ]
1yr Return=55.71%
3yr Return=16.25%
5yr Return=18.97%
Quantum Long Term Equity – G [Sector : Large and Mid Cap]
1yr Return=46.09%
3yr Return=16.65%
5yr Return=20.67%
As per this, my understanding says both will be under same category fund. So, Category wise both are into same Large and Mid Cap. Should avoid purchasing Quantum long term Equity Fund i.e. the same sector fund. right??
Can you tell me, if its good to put Quantum and Reliance Tax Saver Fund together for Tax saving purpose? I need to save tax also.
Quantum tax Saver is in large and mid cap sector whereas Reliance is in Mid and Small Cap. Also, overlapping factor between these funds for stocks is about 8%.
Will this be good to start investing in Quantum Tax Saver fund also as i already have Reliance Tax saver fund started? And, it will also give me room to save tax.
So, based on above facts and figure, do you suggest me to start another SIP with Quantum Tax
Thanks for giving me your advice
Basavaraj Tonagatti
Rajiv-But Quantum Long Term Equity is not tax saving fund. Regarding choosing funds between Quantum and ICICI, the decision is left with you (but my inclination is towards Quantum). But you are talking about Quantum Tax Saver to Reliance Tax Saver, then it is always better to have only one.
Rajiv
Thanks for your guidance
sachin gupta
Hi,
i am 38 year old and want to invest rs 1000 per month in sip from July 2014, and wants to keep on doing this till June 2036 till i get to my retirement age.
pls suggest best funds, however somebody suggested me birla frontline / hdfc top 200 / hdfc equity.
Pls advice me best possible option keeping in mind long term durability of the fund.
Also advice me whether it will be prudent to register for an auto increase of 500 rs per year in the fund where i will be investing
Regards,
Sachin Gupta
Basavaraj Tonagatti
Sachin-You can go with HDFC Top 200. But regarding auto increase, I can’t say as it depends on your affordability and goal target amount.
Sebastian
Hi ,
Thank you for the info that has been shared, very helpful! Request your view on the below funds?
Franklin India Smaller Cos Fund-G
HDFC Mid-Cap Opportunities Fund – Growth
Mirae Asset India Opportunities Fund-Reg(G) –
UTI Transportation & Logistics
Birla SL Pure Value Fund(G)
ICICI Prudential Exports & Other Service
Thanks,
Sebastian
Basavaraj Tonagatti
Sebastian-Why so many mid cap and sector funds??
Rajesh Vyas
Hi,
I want to start SIP’s of Rs.1000/- each in following funds for a period of 5 years or more. please suggest whether these choices are good or not. ( I have to save money for my daughter education and future)
1. Reliance Equity Opportunities Fund
2. Franklin India Smaller Companies Fund
3. ICICI Prudential Focused Bluechip Equity Fund – Regular Plan
4. Quantum Long Term Equity Fund
5. ICICI Prudential Technology Fund – Regular Plan
6. UTI Transportation and Logistics-G
7. SBI Pharma Fund
Regards
Rajesh
Basavaraj Tonagatti
Rajesh-Why two mid and small cap funds (Franklin and Reliance)? Also if you are fresher then I don’t think sector funds will be better for you. They involve more risk than diversified. So rest is left with you.
Kamal
I have SIPs in the following Equity Mutual Funds with the intention to keep invested for another 10 to 15 yrs.
ICICI Pru Focused Bluechip Equity Fund – 2000
UTI Opportunities Fund – 2000
L & T India Special Situation Fund – 2000
Reliance Equity Opportunities Fund – 2000
Mirae Asset Emerging Bluechip Fund – 2000
Pls advice if I require to make any changes in the said funds.
Thanks
Basavaraj Tonagatti
Kamal-Good and looks great but why two mid and small cap funds (Reliance and Mirae). Instead retain any one and continue.
Shantanu Thakre
Hello Sir,
My name is Shantanu and i am from Maharashtra..Currently i am working in IT company and I am interested to invest in mutual funds but as a starter i don’t know where should i invest. Can you please help me in investing? i am thinking of investing 2k-4k /month and please tell me should i invest for short term or long term? as if now i am not investing anywhere. Thanks in adavance 🙂
Basavaraj Tonagatti
Shantanu-If you have long term (more than 7+ years) then enter equity, otherwise a big no. Let me know your time frame.
Shantanu Thakre
Sir i would first like to invest for a short term i.e. 2 to 3 years.
thanks you .
Balaji
Hi Brother
I have a daughter aged 3 Years. My age is 33.
I am planning to invest in Mutual Funds for long term for my daughter Education, Marriage and my retirment purpose
atleast 15 to 20 years based on her age now.
I feel goin for long term in mutual funds, i prefer high risk high returns MF.
Kindly suggest the MFs which i could opt for the above 3 purpose.
I read different MFs can be bought via single platform like Fundsindia or Fundsupermart .
which one is best Fundsindia or Fundsupermart ?
Thanks alot for your great service 🙂
Basavaraj Tonagatti
Balaji-I am not sure about Fundsupermart. But I know FundsIndia and their service is good. Hence my recommendation is FundsIndia.
Balaji
Thanks alot for the reply Brother.
Could you please reply for the first question below :
I have a daughter aged 3 Years. My age is 33.
I am planning to invest in Mutual Funds for long term for my daughter Education, Marriage and my retirment purpose
atleast 15 to 20 years based on her age now.
I feel goin for long term in mutual funds, i prefer high risk high returns MF.
Could i go for high risk high returns for long term ?
Kindly suggest the MFs which i could opt for the above 3 purpose
Thanks again
Basavaraj Tonagatti
Balaji-No need to take huge risk. But you can opt a fund from each category in the above listed funds from large cap, large and mid cap and mid and small cap fund. Start investing and review on yearly base.
Balaji
Thanks Alot Brother 🙂
Shrikant
Hello, Basu,
I am investing in HDFC long tern advantage fund (D), HDFC top 200 found, and HDFC equity fund (G) from last few years. I am investing Rs.10000/- in each of the above funds. Please advise if that is good or do you suggest any other funds for 10-15 year period?
Shrikant
Basavaraj Tonagatti
Shrikant-All are goo in their categories. But why only HDFC? Slightly I prefer to go for ICICI Pru Tax Plan than this.
Pari
Hi,
I wish to invest in MF and as long term goal (20 years). I plan to go with SBI Magnum (Growth) and HDFC Balanced Fund.
Please suggest on above MFs or any other options. I am looking for benefits at later stage say 15-20 years. Invest plan is for 5000/- pm
Regards,
Parima
Basavaraj Tonagatti
Pari-Chose one large cap and another large and mid cap funds from above list. Why balanced fund for long term goal?
shalil
Dear BT
thanks for such a wonderful advise and tip. I have couple of queries.
1. I recently came across a plan called TATA AIA Maha Gold Insurance plan introduced to me by 1 relative. the plan says that if I invest approx. Rs.2,00,000 for the first 10 years. then I will start getting approx. Rs.1,50,000. which is a combination of 5.5 % gauranteed and 4.5 % returns on dividends. this is amount of Rs. 1,50,000 i will get it for the next 75 years. at the outset this looks very attractive but I am sure there is some catch. have you heard of this plan. is it good or bad ?
2. I have a cash of 1 lac with hand with me for 1 year. what is the best way to invest this. Fixed deposit at a Nationalised Bank ? or any Gold plan. the plan to invest is only 1 year.
regards
shalil mumbai
Basavaraj Tonagatti
Shalil-Please go through the link, it states that you will receive 5% of sum assured from the policy 10th year. So you pay Rs.100 and they give you Rs.5 as annual payout. How about keeping the same in savings account (yes savings account itself will fetch you GUARANTEED return equal to this plan)? Do you think with the kid of inflation (around 8%) your retirement or future 5% payment from this plan suffice to survive. This is typical traditional plan. Stay away. Also I have not seen any wordings related to 4.5% return. Please let me know who shared that with you or source of the same.
Fixed Deposit or use ultra short term funds for a year time period.
shalil
thanks mate..appreciate your time
Deep Achtani
Hello Mr Basu,
I went through the article posted by you and also the comments and replies and got a fair bit of idea. I am totally new to investment. I have insurance cover and term insurance, Mediclaim etc. I have a plan of investing Rs 10,000/- each month via SIP. I am looking at returns after 15 years and 20 years. After reading through different articles and some research I am thinking of investing in 5 products (2000 each).
My question:
Should i invest in 5 products or go with 2-3 and increase the amount per month in each product.
What should I look at: Large cap, Mid cap, small cap, balanced equity?
I am someone who wont be keep a track of all he data so which product is suitable for me?
Thank you in advance
Deep
Basavaraj Tonagatti
Deep-Five products in the sense?
Deep Achtani
Sorry for my amateur language. I meant funds 🙂
Basavaraj Tonagatti
Deep-You choose a fund from each category as mentioned above. Start investing and if want to increase your investment then you can increase in the same funds than having one more fund.
sandip
is ELSS beneficial for tax saving now? thanx. pl reply
Basavaraj Tonagatti
Sandip-Yes it is beneficial. But never invest in this product keeping in mind that you will get it back after 3 years lock in over. This product being equity oriented, your time horizon of waiting must be more than 5+ years.
Shailendra
Hi Basu,
I am new in SIP and very thanks to you for knowledge sharing.
Can you guide me to how do i invest in SIP? like i am 32 and i have a LIC of 25,000 pa and regularly i am investing in FD of 1 lkh every year for 5 years from last 3 years. I want to invest for my daughter (3 years old) for her higher education when she will 16 and then for her marriage.
Kindly guide me that how do i invest to achieve this goal .
Thanks in Advance
Regards,
Shailendra
Basavaraj Tonagatti
Shailendra-Do you have enough insurance? Do you have health insurance? Do you have emergency fund placed of around 6 months household expenses? If all these basic things are at place then we move towards investment. Please let me know your views.
Shailendra
Hi Basu,
I have Term Plan of 50 lakh other than the LIC . and also have health insurace of 5 lakh which covers my family. And yes i have enough emergency fund which can be use 6 months household expenses in case of any misshappening.
Kindly suggest
Regards,
Shailendra
Basavaraj Tonagatti
Shailendra-Please think and decide about the amount of sum assured (ideal should be around 15 times of your yearly income). You can choose a fund from each category of above listed funds and start investing. Review it once in a year. How much need to invested involves lot of calculation. So you need to decide the amount yourself.
Govind Mishra
Hi Basu
I am Planning to create a MF portfolio with a time horizon of 10-15 years. After doing a bit of research i have zeroed in to below given funds.
ICICI Pru Focussed Blue Chip Fund- Rs. 1500/month
HDFC Top 200-Growth fund- 2000/Month
Birla Sunlife Top 100 (G)- 1500/month
UTI Opportunites- 1000/Month
HDFC Mid Cap Opportunities- 1500/month
ICICI Pru Balanced Fund- (G)- 2000/month
Can you please suggest some good DEBT fund and Gold ETF fund also to be invested. I have a Moderate Risk Appetite but looking for good growth with 10-15 years horizon.
Thanx,
Govind
Govind
Basavaraj Tonagatti
Govind-Why can’t have one fund from each category and come out of rest? Also when your time horizon is around 10-15 years and some % of your investment is already in debt category (balanced fund), then what is the need of debt funds? Gold Fund-Maintain around less than 10% of your inestable surplus or portfolio.
Balkar Singh
Dear Sir,
Please evaluate following portfolio and advice any addition or deletion. The portfolio has been built up through SIP.
1) DSP BR Top 100 Fund (G)
2) Birla SL Frontline Equity Fund (G)
3) UTI Opportunities Fund (G)
4) Reliance Equity Opportunities Fund-RP (G)
5) HDFC Top 200 Fund (G)
6) IDFC Premier Equity Fund-A(G)
7) HDFC Midcap opportunities Fund – Direct (G)
Thanks & Regards.
Balkar Singh
Hari
Hi Basu…at the outset let me thank you warmly for the independent opinion you give out through your website; Can you advise me on these 2 questions, thanks in advance 1. what is your outlook on Reliance Diversified Power Sector fund (Growth), the NAV was around 43 before the new government took charge and now it shot up to 77. I used to hold some units in the Reliance Infrastructure fund which got amalgamated to the Relaince Diversified Power Sector Fund. Is it worthwhile to hold on to this fund or now that the NAV is high, should i cut my losses and move forward. 2. What is your outlook on Religarte Invesco Mid n Small cap fund ? thanks in advance, Hari
Basavaraj Tonagatti
Hari-Power sector may see some positive response from new Govt. But I still avoid avoid any sector funds. Better I stick with diversified. Regarding Religarte Invesco Mid and Small-It is aggressive fund but look at higher expense ratio too.
DineshB
Sir, I am 32 Years old. I have HDFC term plan(OF 50LAKHS). Currently investing in RD (2k) as well as in LIC(1.5K). Investing in MF is new for me. But i want to invest Rs.3000/- in MF from this months in different plan through SIP as 1K/ month.
Pl. advise which MF is good for me. I want to invest for 5 to 7 Years. But i can continuing one MF plan upto 10 years. Pl. revet in case you require more details from me.
Basavaraj Tonagatti
Dinesh-Choose above said one Large cap and HDFC Balanced fund for this purpose.
Girish
I want a fixed income scheme want invest less than 5000 and also suggest good short term schemes that yield better returns& which scheme should i take up as a beginner in mutual fund pls help me
Basavaraj Tonagatti
Girish-Can you elaborate more on your time frame?
Vasu
Namaskaara Basavaraj,
Thank you for such a wonderful guidance. Could you also guide me?
Since I was wondering whether my money would go for a toss, so initially I thought the following SIP instrument for 3-5 years
ICICI Pru Focussed BlueChip Eq Fund [1500/-]
UTI Opp [1,000/-]
Birla SL FRF-Long Term Plan [1,000/-]
IDFC Dynamic Bond Fund[1,000/-]
But after reading your article I have changed my mind set and would like to start SIP for at least 20 years [I’m now 27]
ICICI Pru focussed Bluechip Equity (G) – Large cap [2,000/-]
Quantum long term Equity (G) – Large and Mid cap [1,000/-]
Reliance Equity opportunities Fund (G) – Mid and Small cap [1,000/-]
HDFC Balanced Fund (G) – Balanced [1,000/-]
Possibly in future I may increase the amount based on their performance and my compensation 🙂
Would you still recommend me the first SIP plan [mentioned above] If I plan a SIP for 3-5 years?
Regards,
Vasu
Basavaraj Tonagatti
Vasu-Why short term and income funds in your existing funds? If your time horizon is 3-5 years only then don’t enter.
Vasu
BT- I chose short term and income funds because of small term [3-5 years] plan. Isn’t there any other option for this?
If these are not suitable for short term could you please tell me when can an individual choose them?
Regards,
VB
Basavaraj Tonagatti
Vasu-If your investable period is around 3-5 years then good to go with debt funds as they are more tax efficient than typical FDs or RDs.
Vasu
Thanks, Basu!
Recently, JPMorgan MF launched Emerging Markets Opportunities Fund and they are offering NFO for Rs 10 per unit. Offer closes on 30-Jun
Do you recommend to invest in this?
Ashok
Dear Basu,
i am an NRI working in Gulf Aged 39 yrs.
i wish to invest in mutual funds in SIP mode in 5 funds around Rs.3000 each for 3 yrs. i will hold for 5 to 7 yrs.
kindly advice me some good mutual fund schemes which can give me good returns and whether the SIP amount and no of funds is OK or you will advice a change.
i already have LIC policies, FD in bank, term insurance and medical insurance and hence want to invest in MF.
Pl advice,
Thanks,
A S Ashok-
Basavaraj Tonagatti
Ashok-Your time frame is around 5-7 years then don’t enter into equity.
Ashok
Dear Mr.Basu,
i can hold on for more years upto 10 yrs. There is no immediate commitment for me to utilise these investment.
Do u still advice me to be out of equity market or how many years minimum u will recommend for people of my age 39 yrs?
If the time frame of 10 yrs is ok, kindly advice me on the SIP and the good funds to invest
Thanks,
Ashok
Basavaraj Tonagatti
Ashok-If time frame is around 7+ years then you can enter by selecting a each fund from above chosen funds.
Ram
Hi Basu
First of all i would like to thank you for all the information provided by you. I have the following questions:
1. With the market being at a high, is it wise to start the SIPs now. I know the SIPs are a means to NOT time the market, but nevertheless wanted to know if we should wait for a correction?
2. I am 28 and planning to start investing for my retirement. So i am looking at investing for the next 15-20 years. Right now i am going to start with a SIP of Rs. 5000 using the following funds:
ICICI prudential focused blue chip: 1000
ICICI prudential dynamic plan: 1500
Quantum Long term equity: 1500
ICICI prudential value discovery fund: 1000
I am going to start investing using the DIRECT route as the expense ratio is cheaper. Please advice on the above.
Thanks!!!!
Basavaraj Tonagatti
Ram-Including me, you or any expert on this earth can’t time the market exactly. So when you are planning for long term such situations will occur so many times. Being calm and continuing with investment is success mantra. Funds are good but why two large and mid cap (ICICI Dynamic and Quantum)?. Keep one and continue.
Ram
Thanks for your reply Basu. I thought of investing in two large and mid caps at different periods of the month. For example, i can invest in Quantum long term equity with a fortnightly SIP on 5th and 21st and ICICI pru dynamic plan with monthly SIP on say 15th or so. Do you think that is a right method or shall i just stick with Quantum Long term equity.
I have one more question for you. As you can see am having 3 MF schemes from the same fund – ICICI. Although the fund managers are different, would you advice going with this plan or go for different fund houses. Do you see any advantages/disadvantages with this?
Thanks!!
Basavaraj Tonagatti
Ram-Even can do such investment set up with one fund only. So why two? I thought to raise this of going only with ICICI, there is no such harm if funds are well performing and no one from ICICI is forcing you. You can go ahead 🙂
ashish tiwari
Hi Sir,
can you suggest me some long term investment mutual funds with in 5*1000=5000(5 funds) per month.
please include 2 tax saving plan and equity large and mid cap plan.i have already invested on icici prudential
focused bluechip growth.
so i want 4 more funds to invest.
thanking you
ashish tiwari
Basavaraj Tonagatti
Ashish-What do you mean by long term according to you? If it is more than 7+ years then choose a fund from above said category and start investing. Adding new fund on each your new investment will not add value. Instead you can invest within 3-4 funds in a diversified manner.
ashish tiwari
yes sir i want to go more then 15 years.sir can you elaborate more what you replied.so that it is understandable to me.
Basavaraj Tonagatti
Ashish-Select a fund from each category I mentioned above, and start investing. Like one from large cap and one from large and mid cap and so on..
ashish tiwari
thank you sir i will follow that strategy.
sumit
I want to buy mutual funds through SIP (Monthly investment of Rs. 5000/-) for a long term. Pl suggest best mutual funds.
Basavaraj Tonagatti
Sumit-Long term in the sense??
Manoj Tiwari
HI Basu,
First of all thanks a lot for sharing such wonderful information.
I am 28 year old and very new to this mutual fund world , though i am trying hard to understand it.
My queries to you are.
1) Being a first time investor from where should i start , i am planning for long term planning
2)I have around 5000 pm to invest as of now
3)At the same time i am looking for any tax saving schemes as well because i dont have any of them.I am thinking of any ELSS plan(please suggest)
4)Are the SIP’s better option than the LIC plans?
Many thanks in advance
Regards
Manoj
Basavaraj Tonagatti
Manoj-1) If your time horizon is more than 5-7 years then definitely start with selecting one from each sector.
2) Diversify that Rs.5,000 among the investable funds equally.
3) ICICI, Canara Robeco or HDFC Tax Saving Funds are good. You can go ahead.
4) SIP is not a product but it is way of investment. Hence don’t compare with SIP to product of LIC.
A.C.SARAVANAN
Very nice blog,
Poorna
Hi,
I have a 2 yr old daughter and would like to invest for her future. The amount i can invest is Rs 3000 pm.
I have read about the HDFC Childrens Gift Fund – Investment Plan. Is this a good fund. Please also suggest if it would be better instead if i take a child insurance plan. I’m also looking at investing Rs 1000 each in Hdfc mid cap opportunities fund growth and quantum long term equity for my other goals. In all the 3 funds i would like to stay invested for 10 years. Kindly advice if these funds would benefit in the long run.
Basavaraj Tonagatti
Poorna-Before proceeding further, do you have enough life and health insurance coverage?
Poorna
yes me and my husband have a Jeevan Anand life insurance policy each.. I have also started a PPF account recently . No additional health insurance apart from company cover.
Basavaraj Tonagatti
Poorna-Ideal insurance cover should be around 15-20 times of yearly income, which I think lacking in your case by investing in typical traditional plan. So first buy pure term insurance product. Buy Health Insurance, even though company provides that. Buy accidental insurance and buffer a cash of at least around 6 months of household expenses as emergency fund. Once all these are in place then go ahead for investment.
Ram
Hi Basu,
I am at 29 yrs & planning to invest below funds for 10 years through SIP (HDFC Netbanking).
1. ICICI Prudential Focused Bluechip Equity (G) – Rs: 2000/month (Large Cap)
2. UTI Opportunities (G) – Rs: 1000/month (Large & Mid Cap)
3. IDFC Premier Equity Regular (G) – Rs: 1000/month (Mid and Small Cap)
4. Reliance Regular Savings Equity (G) – Rs: 1000/month
5. HDFC Prudence – Rs: 1000/month
And I also started PPF investment for tax purpose.
My Queries is, Is it right choice to SIP invest through HDFC NetBanking?
Please advise on this. Thanks.
Regards
Ram
Basavaraj Tonagatti
Ram-SIP usually is automated process on a particular day of a month. So I am unable to understand why HDFC Net Banking facility here? Can you elaborate more??
Ram
Thank you very much for quick response Basu …
One month back, I went to my home branch HDFC bank & filled the two forms which include KYC form and submitted them.
After that, They created one mutual fund account number with SIP, STP, Purchase, Redeem & etc., facility with Saving banks.
But they will charging for this facility Rs: 100 per quarter even if we didn’t any transaction for mutual funds.
For example, 1 Year = Rs: 400 & 10 years = Rs: 4000.
We can see list of mutual funds with transactions in One view in HDFC Netbanking. That’s one advantage.
Shall I proceed mutual fund investments through Netbanking or shall i move to other options.
Please advise on this.
Thanks.
Basavaraj Tonagatti
Ram-HDFC Bank is acting as middlemen and charging you. They are charging for each transaction which is unfair. Even if you go through any adviser they will not charge anything for SIPs or even you can opt for online service of FundsIndia. In long run it is not a good investment choice for you when same is available at free. Coming back to viewing all your SIP at one place, it is not a big deal. Nowadays if you request statement then the same will be available in your mail box within few hours, which involves all your investments. Also you can receive the consolidated account statement from CAMS (irrespective of which fund your investments are). I will inform about this with FundsIndia and I hope they will help you.
Ram
Thank you so much Basu …
Anshu
Hi
Thanks for valuable knowledge sharing,
I’m new in Mutual Fund. Right now I want to invest in Tax saving fund for 5-6 year. I want to invest 3000/- per month.
I read that there is locking period of 3 year means that after 3 year I sell my funds. I’m confuse little as I started Investing in Tax saving through SIP in June 2014.
Each year investment comes under Tax 80c rebate.
Basavaraj Tonagatti
Anshu-What is your confusion?
Pat
Hi,
I’m 40 years. I have the following MFs, and I’m investing thru SIP. I’m planing to invest for coming 10 years. Please suggest if the current portfolio look fine or if there is any change required:
1. HDFC Equity Fund(G) – 5000/month
2. L&T Equity Fund(G) – 5000/month
3. IDFC Premier Equity Fund-Reg(G) – 5000/month
4. Mirae Asset India Opportunities Fund-Reg(G) – 5000/month
5. HDFC Mid-Cap Opportunities Fund(G) – 5000/month
6. ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 5000/month
Thanks,
Pat
Basavaraj Tonagatti
Pat-HDFC Equity (Large and Mid Cap), L&T Equity (Large Cap), IDFC Premier Equity (Mid and Small), Mirae Asset India Opp (Large Cap), HDFC Mid Cap (Mid and Small) and ICICI Pru Focussed Bluechip (Large Cap). So now see there three large cap and two mid cap funds. Hence retain any one from each category and continue.
kinmar
please advise about my mutual fund investment that is via SIP as follow.
RELIANCE REGULAR SAVING FUND-BALANCE PLAN-GROWTH (10 K)
HDFC EQUITY FUND GROWTH (15 K)
HDFC PRUDENCE FUND GROWTH (15 K)
HDFC TOP 200 FUND (10 K)
BIRALA SUNLIFE FRONT LINE EQUITY FUND PLAN-A GROWTH (10 K)
IDFC PREMIER EQUITY FUND PLAN-A GROWTH (15 K)
L&T EQUITY FUND (G) (10 K)
Pl advise for my portfolio and investment.
1) I am not in need of this money for next 10 years.
2) apart of this, I am financially ok and can take risk and wait if market is bad for few months as well
3) I am planning to increase my monthly SIP from 85 to additional 75K, please advise about the funds to be added.
4) I have received advise to add mid and small cap, what is your advise.
Basavaraj Tonagatti
Kinmar-Reliance Regular Savings Fund-Is it Debt or Equity? If it is equity then it is multi cap otherwise it is typical debt income fund. HDFC Equity and Top 200 continue. But I don’t think you can add value by Birla fund as it is again a large and mid cap fund. IDFC and L&T can be continued. You can continue in same funds as they are well performing funds.
Pranav S
Hi Basu,
Im 29 yr old doc. So almost a novice in managing my personal finances.
I currently have around 2lacs in my hand.
I am planning to send 1 lac into the PPF account i already have.
And after reading all the questions above, i thnk, i can dare to invest 7-10K per mnth.
Planning 2k into HDFC prudence fund
1k in gold fund.
Rest i am not sure yet.
Wanted to ask u one thing.
If the 5 yr returns of small cap are less c/t a large or mid cap, is it worth investing in them at all just for the sake of diversification. Why not stay with the fund class that give maximum returns.
Basavaraj Tonagatti
Pranav-What is your time frame of investment?
shri kumar
Hi Basu,
currently I am investing around 12500Rs/Month in multiple MF
HDFC Prudence –2000 Rs/Month( 4 year old)
HDFC Top 200 Fund –1500Rs/Month(4 year old)
ICICI Prudential Tax Plan –3000 Rs/Month(2 year old)
IDFC Premier Equity Fund — 3000Rs/Month (2 year old)
RELIANCE GOLD SAVINGS FUND -3000Rs/Month(2 year old)
Now i would like invest around 5000Rs/Month in new MF so could you please suggest that which MF would be best .My time horizon is around 10 year
also in above current portfolio do i need some change or still it is ok
Regards,
Shri
Basavaraj Tonagatti
Shri-Reduce your investment from Reliance Gold (maximum around 10% of your overall investment, not more than that). Large and Mid Cap fund is missing. So choose a fund from above category and start investing. Also diversify your further investment of Rs.5,000 among the same existing funds (except gold fund). I am not sure about tax fund…so unable to comment. Rest are good and you can continue.
shri kumar
Thanks Basu for your valuable reply..
so I am going to split our 5000rs/Month MF investment in below
1)Birla sunlife top 100 —-2000rs/month
2)Franklin India smaller company fund–2000rs/month
3)SBI magnum midcap fund–1000rs/Month
and existing gold saving is 3000rs/month and will reduce soon by 1500rs/Month
please suggest is it ok because i have already below fund
HDFC Prudence –2000 Rs/Month( 4 year old)
HDFC Top 200 Fund –1500Rs/Month(4 year old)
ICICI Prudential Tax Plan –3000 Rs/Month(2 year old)
IDFC Premier Equity Fund — 3000Rs/Month (2 year old)
RELIANCE GOLD SAVINGS FUND -3000Rs/Month(2 year old)
Regards,
Shri
Basavaraj Tonagatti
Shri-You already have IDFC Premier which is small and mid cap then why another two funds of same category (Franklin India Smaller Company and SBI Mid Cap)? Rest are correct.
praveen M Ramakrishna
Hi Basavaraj,
I already invested a total of 5000 on some MF’s(
HDFC Top 200 Fund – Growth – large cap category – Expense ratio – 2.13 – 1000 rs
ICICI Prudential Dynamic Plan – Regular Plan – Growth Expense ratio – 2.23 – 1000 rs
ICICI Prudential Infrastructure Fund – Regular Plan – Growth Expense ratio – 2.33 – 2000 rs
Tata Ethical Fund – Appreciation Expense ratio – 2.97 – 1000 rs )
thru FundsIndia.com and want to invest another 5000 on the funds you mentioned above..But not sure whether to go thru CAMS with DIRECT funds or go thru with Fundsindia.com itself.
In some place I read the if we are going thru these websites we will be losing for 47% in the long run….I want to know how much exactly we will be losing as commission to FUNDSINDIA.COM if I go on with my investment for some 10 Years for 10000 rs monthly.. And will there be expense ratio commission if we go thru DIRECT funds also……….Any input is appreciated…
Regards,
Praveen M.R.
Basavaraj Tonagatti
Praveen-Rest are good but I am bit skeptical with Tata Fund. Why can’t you switch to Reliance Regular Savings (my above recommendation)? You can select the same funds for your future investment. But going direct is advisable in long run. But how much beneficial (whether it is 47% or 80%) depends on how long you stay in that fund. So I can’t say exact % on that. But it is sure that it is beneficial if you are ready to manage your funds on your own.
Raj Kumar Jena
Dear Basavaraj,
I used to follow your blog from quite long time. Also, I am investing in market from 3 years and I will continue at least till 2019. I have couple of questions, could you please guide me and clarify me.
1. what is problem of having two mutual funds from each/any category i.e. i had HDFC Top200 and now I started ICICI Pru. focus bluechip?
Usually MF advisor dont advice it.
2. I am investing 11K every month on MF, but sometimes i get some extra money, can you please let me know which is best MF or way for one time investment (i don’t mind about time frame, i can wait even 10 years or more but return should be good 🙂 )
Thanks
Raj
Basavaraj Tonagatti
Raj-1) It is like investing Rs.10,000 in Infosys from one demat account and another Rs.10,000 from another demat account in same Infosys. After this believing that your investments are diversified. It is not like that. That is the reason choosing same category will not diversify your investment. Hence such advice.
2) Why to choose another fund for lump sum? Invest in the same funds of what you are investing. You can create a best portfolio with 5-6 funds. No need to add on funds.
Raj Kumar Jena
Dear Basavaraj,
Thanks a lot for quick reply.
Yes, I think my portfolio is diversified ( the SIPs are, i have HDFC top 200 – 2K, ICICI Pru focus bluechip -3K, ICICI Discovery – 2K, IDFC premier equity – 2K and HDFC Prudence (balanced fune) – 2K )
Bue, about my second questions, I get sometime extra money( i.e. its after my sal and amount range from 4K to 7K but not in every month ) , As you are advising me to put those in any of the above fund. Yes I am happy with your suggestion but could you please suggest me which fund from above i should prefer to put extra money from the above funds.
FYI, here my aim is when I get extra money i will invest else my as usual SIP will keep continue.
Again thanks for your kind suggestions.
Thanks
Raj
Basavaraj Tonagatti
Raj-Why for one fund? Instead diversify the lump sum into all your existing funds 🙂
Raj Kumar Jena
Thanks Basavaraj 🙂
Mukesh
Basu:- If so than why all large cap MF are giving different return..???
Going with your logic it should be same for all large cap MF..!!!
what’s your comment..?
Basavaraj Tonagatti
Mukesh-It depends on fund manager performance, asset he is handling, expense ratio of fund and many more things. But while investing we must see that how fund performed since long and each category of funds almost always replicate the same underlying portfolio.
Mukesh
Ok. Agree and Thanks.
Mahesh S.
Dear Basu,
My Portfolio in MF is
Franklin India Flexi Cap Gr – Rs. 500 SIP
Reliance Eq. Opp. Fund Gr – Rs. 1000 SIP
ICICI Prud. Tax Saving Fund Gr. – Rs. 1000 SIP …………….. All funds are choosed for Long Term investment
please suggest Mid Cap fund for short term profit & Tax saving point of view.
with Regards
Mahesh
Basavaraj Tonagatti
Mahesh-Franklin India Flexi cap-Large and Mid Cap-Not a right choice. Move to above said same fund category. Reliance Equity Opp Fund-Small and Mid Cap-Continue and ICICI Pru Tax Saving-Continue.
Sharan
Hello Basavaraj,
Good Blog, so much information and knowledge is been shared, really appreciated.
Sir, me and my friend are planning to start invest in Saving and we choose a platform Mutual Funds.
We have no knowledge and activating our MF a/c associated to our company salary account as this will be free of cost from HDFC Back for salaried employees.
We do not have lump sum amount but rather planning to invest Rs 500/1000 PM on one particular fund or 500 each fund.
We are planning to invest for 5 years, please suggest some good funds to invest considering next years.
Thanks,
Sharan.
Basavaraj Tonagatti
Sharan-Good to know that you planned. But first understand the meaning of saving and investing. You are planning for investing by setting aside or saving of Rs.1,000 from your salary. So saving is setting aside and investing is when you put that amount into any product where you earn something.
If your time frame is around 5 years then don’t enter into equity. Instead go with RDs or FDs.
praveen M Ramakrishna
Hi Basavaraj,
Good Afternoon. What do you think of BNP Paribas Mid Cap Fund – Growth FUND…It is worth to have in porfolio.
Thanks & Regards,
Praveen M.R.
Basavaraj Tonagatti
Praveen-You can consider as currently everything is green in equity market. But I still stick to IDFC’s above fund 🙂
Satish
HI ,
I want to start SIP so for which mutual fund i should go,
i have Little bit of know how about mutual funds you can say i am a fresher and i want to start with small investment.
Basavaraj Tonagatti
Satish-What is your time frame of investment?
Samidha
Hi,
I am new to mutual funds. I have invested in LIC policy and Recurring deposits/FDs of banks. Could you please guide me to invest in SIPs. Should i go for STP and set up an monthly SIP. Please guide in selecting the funds. I do not have any immediate short term goals.
Thanks,
Samidha
Basavaraj Tonagatti
Samidha-Please let me know your understanding about SIP and STP also what according to you is short term.
Samidha
Hi,
I don’t have any knowledge of both just read some articles about SIP and STP. For me short term is 5 years or less.
Thanks,
Samidha.
Basavaraj Tonagatti
Samidha-First read the difference. SIP-Systematic Investment Plan-means you are investing equal sum in equal interval. Any investment which follows this type of investment is called SIP. So whether it is in equity mutual fund, PPF, RD or any product, you can use SIP. STP-Systematic Transfer Plan-When you have large cash then you can put it into some debt or liquid fund and give request to transfer equal sum in equal period from that fund to another fund. So both are meant for different need.
It is good that you understood the concept of long term and short term. But in my view keep another +2 years addition to 5 years for considering and arriving at goal tenure. Now for your investment, you can choose a fund from above list of each category and start investing.
Mukesh Jat
My mutual portfolio is
1. Reliance Regular Savings Fund-Equity Plan- Growth: Rs 1000
2. HDFC Top 200 Fund Growth plan: Rs. 2000
3. ICICI Prudential Discovery Fund- Growth: Rs. 1000
4. Birla Top 100 Growth: Rs. 1000
Pls suggest if any changes required in my portfolio
Basavaraj Tonagatti
Mukesh-You can continue the funds as currently due to market performance all funds performing well. But do remember to check once in a year.
Bala
HI Basu,
Thanks for the information. I have started a Smart ULIP from SBI on Jan 2010 and I have paid 5000/- per month for next three years. After that, I let the money to grow but no additional payment done. Now, the value is around 2,00,000. Meanwhile, I am paying around 11000 per month for my car loan as EMI. Is it a wise idea to use this money to pre-pay the loan? Or, should I park this money in a better instrument ( i need capital protection, and moderate return) ?
Basavaraj Tonagatti
Bala-Check the difference like how much you earned from ULIP since 2010 to today and how much interest you are paying for car loan. Definitely car loan interest will be higher. So if there are no surrender charges then go ahead and pay your debt. Always do remember that debt is bad to one’s financial health. So first finish it off.
Vicky
Hi Basu
Thanks for your excellent article. Couple of questions:
1. Can i replace ICICI pru focused blue chip with ICICI pru top 100? While both are large caps, ICICI pru top 100 is a more diversified fund compared to ICICI pru focused blue chip. So isnt ICICI pru top 100 a better choice?
2. Can i replace IDFC premier equity regular from the mid cap to Franklin India smaller companies fund or Mirae emerging blue chip fund? Your advice is needed.
Thanks!
Basavaraj Tonagatti
Vicky- 1) You can go, but look at expense ratio and ICICI Pru Bluechip is lesser and standard deviation of of ICICI Pru top 100 is bit high. But choice is your’s.
2) Same comment to second point too.
Karthikeyan
Hi Basu,
1. I planning to invest in sip mutual fund monthly 2000 /Month for Atleast 5 years… What the mutual fund i can choose?
2. And i have 25000 thousand in FD. Shall i invest that amount into Mutual fund for long term (20 Years).. May i know which one is the Best Mutual fund i can choose?
Basavaraj Tonagatti
Karthikeyan- 1) IF your plan is for 5 years then stay away from equity mutual fund.
2) For lump sum investment choose each fund from above category and start investing.
Karthikeyan
Thanks for the quick reply basu.. Ok if i go for more than 10 to 15 years.. What would be the best one..?
This one is in my mind — ICICI Pru Tax Plan Reg-G. Is this the good one..?
Basavaraj Tonagatti
Karthikeyan-Why Tax Saving Fund?
Karthikeyan
I am paying early 10000 tax apart from my tax exception with my current salary.. So that i choose this Tax saving fund.. If i am worng please advise me right one.Thanks
Basavaraj Tonagatti
Karthikeyan-Whether other things are at right? Like Term Insurance, EPF or PPF? If so then how much shortfall in Sec 80C?
Karthikeyan
I am having insurance in LIC– 24000 /year and epf 25000 per year which is detecing in my company… Also i am Paying 4500 / year Health Insuarnce in DHFC ERGO.
Basavaraj Tonagatti
Karthikeyan-Whether life insurance is pure term or typical traditional plan? If it is traditional plan then to go for term insurance at the earliest. Now the question is for around Rs.51,000. First create your financial goals then if they are short term in nature then go for FDs (tax saving) otherwise you can go ahead with ELSS.
Ashutosh
Dear Basu sir,
need your valuable guidance as I am 32 Year old and investing 5000 pm in below MF from 2012 onwards..
HDFC MID-CAP OPPORTUNITIES FUND – GROWTH
FRANKLIN INDIA TAXSHIELD – GROWTH
ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – RETAIL – GROWTH
RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH
HDFC TAXSAVER – GROWTH
Do you suggest me any changes in my current portfolio as mentioned above pls.
Further, I want to invest further 7000-10000/- in mutual fund (need atleast 2 ELSS MF). I will prefer more return MF and take risk but dont want to go with Small Cap fund but good MID CAP MF is OK for me.
pl. see below points as..
I need 25Lc after 15 year for my Kid education.
I need 40 Lc. after 25 year for my kid marriage and
1 cr. after 30 yr for retirement.
Could you pl. suggest me good mutual fund considering above points and do i need to increase more investment for above goal..?
Thanx for expert opinion in advance
Best regards,
Ashutosh
Ashutosh
Dear Basu,
could you pl. advise on my query pl.
Basavaraj Tonagatti
Ashutosh-Why two mid cap funds (HDFC and Reliance)? Retain anyone. Also do you feel two tax saving funds necessary? Select Large and Mid Cap (which is missing and continue the investment, even for fresh too).
Is the target amounts are in today’s value or future value?
Ashutosh
Thanx Basu for your reply.
1. I selected 2 MID cap due to more return but Ok to exit from Reliance since it is giving less return as compare to HDFC as suggested.
2. Selected ELSS to take care of Tax part (80C)
3. Kindly suggest good Large & Mid cap fund
4. Target amount is future value.
Regards,
Ashutosh
Abhishek.
Dear Sir,
I have started investing 4000/month in MF through SIP for at least 10 to 15 years’ time frame. Please find my portfolio below:
(1) ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth (1000 per month) – Started from last 2 months
(2) IDFC Sterling Equity Fund – Regular Plan – Growth (1000 per month) : From last 3 years-35 months
(3) HDFC Mid-cap Opportunities Fund- Growth(1000 per month) :From last 16 months
(4) CICI Prudential Balanced Advantage Fund – Regular Plan – Growth : Started from last 2 months
Should I make any changes in the current portfolio of mine?
Also I wanted to invest 3000 rs more in SIP per month. Please suggest me some good funds?
Thanks,
Abhishek.
Basavaraj Tonagatti
Abhishek-Continue ICICI funds, instead of IDFC move and continue HDFC Mid Cap. Why other funds for another Rs.3,000? Diversify the amount into existing funds.
Abhishek.
Sir,Thanks!! for your reply..
IDFC is currently showing good return almost (45K)… I need to move out from this fund or can I continue for 5-10 years. If I need to move then in which fund I need to invest?
Please let me know.
Thanks,
Abhishek.
Basavaraj Tonagatti
Abhishek-But still I suggest you to move out to HDFC Mid Cap.
Abhishek.
Sir, You mean I put all IDFC money into HDFC Mid-cap Opportunities Fund- Growth and close IDFC SIP?
Basavaraj Tonagatti
Abhishek-Yes.
Rahul
Hi, I read your article on PPF. Just want to know that-
-1. Once we are committed to pay say “x” amount, cant we change this amount next year?
2. If someone wants to contribute more than 1 lakh per year, how much more can be invested?
3. If there is a minor kid, can there be three PPF accounts (husband, wife and minor kid)?
Basavaraj Tonagatti
Rahul-1) You have flexibility to change at any point of time, even from next month either you can increase or decrease your contribution.
2) You are not allowed to pay more than Rs.1,00,000 in a financial year. So forget about that.
3) Yes you can have your own account, wife account and kid’s account (for this you or your wife can be guardian).
Anjan
As far as the rules go, everyone in your family can have their own PPF accounts but you still can’t contribute more than 1 Lac into all accounts combined. That means, say you contributed 50k to your account and 25k to your kid’s account, that leaves you with only 25k more to contribute to your wife’s account. You can’t contribute 100k to each account yourself to max out the limits. Be aware that if you have do so and the bank/post office becomes aware of this, you will lose all the interest that you have earned thus far. So in the end it could be disastrous for you.
Abhishek.
Dear Sir,
I have started investing 4000/month in MF through SIP for at least 10 to 15 years’ time frame. Please find my portfolio below:
(1) ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth (1000 per month) – Started from last 2 months
(2) IDFC Sterling Equity Fund – Regular Plan – Growth (1000 per month) : From last 3 years-35 months
(3) HDFC Mid-cap Opportunities Fund- Growth(1000 per month) :From last 16 months
(4) CICI Prudential Balanced Advantage Fund – Regular Plan – Growth : Started from last 2 months
Should I make any changes in the current portfolio of mine?
Also I wanted to invest 3000 rs more in SIP per month. Please suggest me some good funds?
Thanks,
Abhishek.
Ashutosh
Dear Basu,
I am 32 Year old and investing 5000 pm in below MF from 2012 onwards..
HDFC MID-CAP OPPORTUNITIES FUND – GROWTH
FRANKLIN INDIA TAXSHIELD – GROWTH
ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – RETAIL – GROWTH
RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH
HDFC TAXSAVER – GROWTH
Do you suggest me any changes in my current portfolio as mentioned above pls.
Further, I want to invest further 7000-10000/- in mutual fund (need atleast 2 ELSS MF). I will prefer more return MF and take risk but dont want to go with Small Cap fund but good MID CAP MF is OK for me.
pl. see below points as..
I need 25Lc after 15 year for my Kid education.
I need 40 Lc. after 25 year for my kid marriage and
1 cr. after 30 yr for retirement.
Could you pl. suggest me good mutual fund considering above points and do i need to increase more investment for above goal..?
Thanx for expert opinion in advance
Best regards,
Ashutosh
Komal
Hi Basu,
It would be great if you can help me. Need your advice on below
Current Portfolio:
Axis Long term equity
Reliance Pharma fund – SIP 2000
ICICI Pru Discovery fund – SIP 2500
Tata Ethical Fund – SIP 2000
ICICI Gold Saving fund (SIP 5k paid for 18 mths – not redeemed as its in negative returns) – at present what should i do? this fund being down shall i top up now
SBI Gold fund – (SIP of 1k paid for 12 months – not redeemed as its in negative returns) – at present what should i do? this fund being down shall i top up now
RD of different banks – 6500 p.m.
Q 1: Please advice on my current portfolio health,
Q 2: Also I intend to add monthly 3000 more investment. Need your advice on the funds after looking at my current portfolio 🙂
Q 3: At present will it be advisable to invest lumpsum in Sector funds like IT, Infrastructure & Pharma as they are available at affordable rate presently. With new government will these industries and there by funds outperform? If yes which are they??
Thanks in advance.
Regards,
Komal Shah
Basavaraj Tonagatti
Komal-Reliance pharma-Continue.
ICICI Pru Discover Fund-Small and Mid Cap-Continue.
Tata Ethical Fund-Multi Cap-Fund is good but little expensive. But choice is your’s.
Why two Gold Funds? Restrict your investment into Gold at around 10%. Not more than that.
Going by your portfolio it seems that, eventhough you are investing but there is no linkage of goals to any investments. Hence goal based investment is good rather than investing irregularly. I am not aware about reasons of investing in RD. So can’t comment on that.
Currently large cap and large and mid cap funds are missing in your portfolio. So select a fund from each category from above list and start investing for your fresh investment. You are already exposed toward pharma through Reliance pharma. So what is the reason to over expose to any specific sector? Let your investments be diversified instead of stagnant in any one particular sector. Hope I resolved your doubts.
Komal
Thanks for your valuable feedback Basu.
Reason for RD is nothing but safe investment so if you have any suggestion on changing the route then please let me know.
SIP in Both Gold funds i have stopped but not redeemed being in negative. So Q is should i top up at current market to get the average or just wait for it to coverup.
Agreed on Pharma fund as i am doing SIP anyways but what about Tech & Infrastructure fund Basu. Is it advisable to enter it now??
Basavaraj Tonagatti
Komal-Link your financial goals to each investments, whether it is RD or Mutual Fund. Then you are in a position to analyse the product and decide whether to go or not. As I said earlier, restrict your gold investment to less than 10% of overall portfolio. If you want to invest more then use the route of SIP. Regarding tech and pharma I am bit skeptical as in near future all are predicting strengthening of rupee. So instead of exposing to one stock select a fund then invest.
Komal
Thanks a ton Basu.
Let me know your contact number where i can connect to you for your services. (i checked ‘contact us’ page and no number has been provided). Fyi i am from Mumbai. Hope your services are PAN India level 🙂
Basavaraj Tonagatti
Komal-You can reach me at 9019580450.
AJ
Hello Basu,
I would need your advice on addition of Mutual funds to my portfolio.
Requirement is of 25 lacs for my kid’s education. This is needed after 18 years.
Requirement is of 1 crore for retirement. This is needed after 25 years.
From January 2014, I have started investing in the following funds:
ICICI Focused Bluechip Direct: 2000
ICICI Dynamic Fund Direct: 2000
To reach to such huge corpus, I need to invest more. At this point, I can invest another 4500 rs. and hence would need your advice on the following MFs:
HDFC Child Care- Investment: 1000
UTI CCP Balanced: 1000
IDFC Premier Equity: 1000
PPF: 18000 per year
Please suggest any alternatives as you deem fit, in case these are not the funds as per requirement. Also, if possible, can you please let me know how much extra I need to invest to reach my targets.
Thank you so much for your articles. Infact, following your advice, I have taken term insurance from MaxLife.
Many thanks in advance,
AJ
Basavaraj Tonagatti
AJ-Considering the value you mentioned are future target amount, you need to invest Rs.4,162 (Tenure-18 yrs, return on investment-10% and target amount Rs.25 Lakh) for first goal and Rs.7,536 (Tenure-25 Yrs, return on investment-10% and target amount Rs.1 Cr). But do understand that the value you mentioned as target amount may feel you great. But when you approach towards goal then you may require more due to inflation. So think and decide. Coming back to fund selection, below are my suggestions.
1) PPF-20% of investable amount.
2) ICICI Focused Bluechip
3) ICICI Dynamic Fund
4) IDFC Premier Equity
5) Reliance Equity Opp Fund.
Why you need balanced fund when part of the investable amount is already going towards debt product (PPF)?
NILESH D SALUNKHE
Hi Basu ;
I need your help to choose right mutual fund (SIP) to invest .
My target is after 25 years i need aleast 1 Cr.
Right now I am having
1) HDFC Top 200 fund – 1000 rs
2) DSP BlackRock Top 100 Equity Fund-1000 rs
3)Franklin India Bluechip Fund-1000 rs
Is the Mutual fund selection is right ?
Now i want to invest 2000 rs more so let me know which fund will
give good returns . I have 3 funds in my mind . U can suggest other mutal funds also.
1) IDFC Premier Equity Fund-Regular Plan-Growth
2)HDFC MID-CAP OPPORTUNITIES FUND – Growth Option
3) SBI magnum
Regards
Nilesh Salunkhe
Basavaraj Tonagatti
Nilesh-Why all large cap funds? Retain one large cap like Franklin Bluechip. Rest or for future investment select a fund from above list.
NILESH D SALUNKHE
thanks for advise
AJ
Many thanks Basu for your reply!
The reason I was considering the Balanced Funds and CCP, is because:to be on the safer side on the investments. Also, some one suggested me to put some money into these funds. Though I was a bit skeptical on the investment, hence thought of getting your advice on these funds. Also, one more reason was that these funds might give me ~10% return in the long term, which is anyways better than PPF (8.7%). Please comment!
Thanks,
AJ
Basavaraj Tonagatti
Aj-Exactly…you can expect around 10% return in long run. But don’t forget the value of diversification also. Hence put some % into PPF too.
AJ
Tons of thanks Basu for your advice!!!
!!! Great work !!!
-Thanks,
AJ
Ankit
Hello Basu,
Hope you are doing great.
I have some holdings in below funds
1. BSF 95 Series Regular Plan
2. Birla Sunlife Frontline Equity.
I have a couple of questions –
1. Why should an investor park money in all the categories i.e. Small, Mid and Large Cap?
2. I plan to start an SIP with 10K amount, can you please advise some suitable funds? ( Just an information that the above folio has given me good returns of around 11% p.a.)
Thanks & Regards,
Ankit.
Basavaraj Tonagatti
Ankit- My answers
1) What is the purpose of diversification if you stick to any one category??
2) Currently market is at all time high. So obviously all funds will good return. But select the fund which has given you the consistent return over long run.
Ganesh
Hi Basu
First i would like to thank you for the detailed explanation on the different funds and appreciate your efforts on the same. I am planning to invest Rs 5000 as SIP every month in the following MFs for a period of 15 years. I would like to know your feedback on the same:
Large cap: ICICI prudential focused blue chip – Rs 2000
Large & Mid cap: Quantum long term equity – Rs 2000
Small & Mid cap: Mirae asset emerging blue chip fund – Rs 1000
Thanks in advance!
Basavaraj Tonagatti
Ganesh-Looks good but change your Small and Mid Cap fund to above said fund.
Ganesh
Thanks for your quick response. Any reason why you are against Mirae asset emerging blue chip fund? It ranks 1st in Crisil as well among others.
Basavaraj Tonagatti
Ganesh-Oh is it !!! Check the expense ratio of Mirae with my suggested fund also how old is the fund.
Ganesh
The expense ratio is 2.7, a bit higher than IDFC. Also its a new fund, been there for 3-4 years i believe. Having said that, as per CRISIL and other forums, Mirae is better placed than IDFC. That is why i wondered.
Rohit
Hi Basvaraj,
What is the investment stratgey Post-elections? With markest up and high, which all MFs shall we buy? As explained by you in the post above, shall I start SIP on these only?
Thanks,
Rohit
Basavaraj Tonagatti
Rohit-Invest…invest…invest. Because current market is news driven. If you are looking for long term growth then never look for such jerks in market.
ic005322
Hi Basu,
Great article. Thanks a lot for this. I had started investing in MFs in 2005 and since then I have not looked at my portfolio. I am now looking to re-analyse my portfolio. Can you please suggest changes to it?
DSP BR India TIGER Fund – Thematic invested since 2008
DSP BR Opportunities – Diversified Equity invested since 2005
Franklin India Flexicap Growth -Diversified Equity invested since 2006
HDFC Capital Builder – Diversified Equity invested since 2005
HDFC Top 200 – Large Cap invested since 2011
ICICI Pru Discovery Fund – Small & Midcap Equity invested since 2006
Reliance Vision – Diversified Equity since 2008
I need your suggestion on –
a) selling any MFs
b) topping up existing MFs
c) buying a new balanced MF
Thanks a lot!
Basavaraj Tonagatti
ic005322-My suggestions are as below.
1) DSPBR India TIGER Fund-Infra fund-Come out of it.
2) DSPBR Opportunities Fund-Large and Mid Cap-Move to UTI Opportunities Fund.
3) Franklin India Flexicap Fund-Large and Mid Cap-Follow what I said in point number 2.
4) HDFC Capital Builder Fund-Large and Mid Cap-Come out of this. Because one large and mid cap is enough.
5) HDFC Top 200-Large Cap-Continue.
6) ICICI Pru Discovery Fund-Large Cap-Continue.
7) Reliance Vision Fund-Multi Cap-Switch to Reliance Regular Savings.
ic005322
Thanks Basu. Should I top up any of these like ICICI Pru Discovery Fund which is doing well?
Also, please suggest 1 balanced fund and 1 -small/midcap fund?
Regards,
Basavaraj Tonagatti
ic005322-You can go for HDFC Balanced Fund. Go ahead for ICICI and select any one of the above listed small and mid cap fund.
Amit TiwarThis is the
Great Artcile Basu! Thanks for sharing the information.
I am new in SIP and don’t know much about it but want to invest some small amount in every month.
I can invest 7000 per month for now. I can invest for 15-18 years.
It’ll be grate if you suggest some funds (Large, Mid and Small cap).
Thanks in advance.
Basavaraj Tonagatti
Amit-Select a fund from each category of above list and start investing.
fazal
dear basavraj
Hay my name is fazal, working in gulf.
Impressed with ur ideas here. Kindly help me as well.
I wish to invest in mutual funds in SIP. I do have some investment in equity. But it will be first time with mutual funds. My intention is to accumulate funds for my daughter’s education. I have 7 yrs time. I can manage around 25k every month. I use IIFL for my shares. I wish to use ICICI direct now.
Kindly advice on both issues pls.
Basavaraj Tonagatti
Fazal-ICICI Direct for mutual fund buying? If so then not required. Why can’t you opt for mutual funds than direct equity? Let me know your views.
Nagaraju
Hi basu,
I have 1 lakh rupees in savings account, want to invest in mf systematically over a period of 12 to 18 months thru SIPs.
I came to know that it is a option of putting lump sum amount in one of the debt schemes and use STP mechanism to shift to equity. can you please guide me two/three debt schemes and as well as equity MFs to participate in above said STP.
The below are my existing SIP MFs investments
HDFC TOP 200 (1000)
ICICI Prudential Focussed Blue Chip (1000)
UTI Opportunities (1500)
Thanks
Basavaraj Tonagatti
Nagaraju-Use the existing funds for your Rs.1 lakh further investment by STP mode. You need to park your fund in respective mutual fund company’s liquid fund. From there you can give instruction for STP. I don’t think are many liquid funds in each fund company. So choose the available liquid funds and start investing.
Nagaraju
Thanks Basu..
In Mid and Small Cap Equity Funds category, when I verify the returns over 6months/1year/3year/5years
ICICI prudential value discovery fund and HDFC mid cap opportunities delivered good returns when compared to that of IDFC Premier Equity Fund -Regular. Please help me to know the reason and criteria of choosing IDFC premier Equity Regular Fund in your mid and small cap list. Is it because of less expense ratio??
I am in learning phase..please advise
Thanks….
Basavaraj Tonagatti
Nagaraju-Yes expense ratio and when you are planning for long term then such differences matters more.
Vikas Vyas
Hi Basu
Thank you for your informative blog. It makes life of layman like us much easier.
I am investing SIP in following funds, all Growth options. I am 41 and investing with an aim to create retirement corpus.
DSP BlackRock TOP 100
HDFC Prudence
Reliance Regular Savings
ICICI Pru Discovery
I saw that DSP Top 100 ratings in Value research to 2 star ratings. Should I continue with this fund on long term perspectie or change to Either Franklin Blue Chip OR ICICI Pru Focused please?
Thanks & Regards
Vikas
Basavaraj Tonagatti
Vikas-Move from DSPBR Top 100 to ICICI Focussed Bluechip Fund. Continue HDFC Prudence, Reliance Regular Savings and ICICI Pru Discovery.
Vikas Vyas
Thank you so much.
Though I will start new SIP with ICICI Pru Focussed, I have to redeem DSP Top 100 gradually and shift to ICICI pru focus accordingly right ? Do not think there is another choice as they are different fund houses and cannot switch i guess.
Regards
Vikas
Basavaraj Tonagatti
Vikas-You can’t switch. Market is at it’s peak. So instead of investing whole redeemed amount at once ICICI, I suggest you to put the amount in ICICI liquid fund and from there give instruction to switch to ICICI Focussed Bluechip. Also start a fresh SIP for further investment. If you do in this way then the risk of investing lump sum will be averted.
Vikas Vyas
Dear Basu
Sorry to be pain.
But I am trying to do something more simpler. With my limited knowledge, I think any mutual funds other than equity will invite tax if redeem or switch within one year. So for example if my investments in DSP Top 100 has completed 1 year, then redemption or switch will invite only LTCG which is Nil at present. More than paying the small tax amount, keeping track of it and showing it correctly in returns is highly complicated for me.
So what I have been generally doing so far is to invest in X Fund and wait for at least one year before reviewing it and then deciding if i need to change to another fund. If it is within the same fund house even better then only i need to switch it gradually and one fine day the entire fund will be in the new scheme of the same fund house.
But in this case, it is a different fund house. So I have about 45K in DSP top 100. So what I am planning to do is to withdraw say 5000 at a time on specific date of a month regardless of market situation and immediately transfer that to the new scheme ie ICICI focussed. By the time i reach the last 5000, it would have completed 1 year in older scheme and hence no complications. Then of course, on parallel grounds, i will start new SIP in ICICI focussed. So my new investment and old investment in old scheme will meet in one basket one day.
Hope this makes sense. Sorry if I am messing around, do not know how to explain better.:-)
Regards
Vikas
Basavaraj Tonagatti
Vikas-If you are ready to take care of this on monthly base then no issue. Go ahead 🙂
ARUN RAVI
Dear sir,
KINDLY ANALYSE MY PORTFOLIO
ICICI PRU FOCUSSED BLUECHIP EQUITY-2000
HDFC PRUDENCE-1000
HDFC TOP 200-1000
RELIANCE EQUITY OPPORTUNITY FUND-1000
SBI EMERGING BUSINESS FUND-1000
SBI MAGNUM GLOBAL FUND-1000
MY INVESTMENT HORIZON IS 15-20 YEARS AND WANT TO ACCUMULATE 50 LACS.
KINDLY GIVE YOUR VALUABLE ADVICE ON MY PORTFOLIO
Basavaraj Tonagatti
Arun-Why two mid and small cap funds (both SBI)? Retain anyone and rest looks good for me. But if we consider time frame of 15 years, return on investment around 10% and monthly SIP Rs.7,000 then accumulation will be Rs.29,01,292. So shortfall of around Rs.21 Lakh. Either increase your investment in future or postpone your target to 20 years (After 20 years for SIP of Rs.7,000 and return 10% means accumulation will be Rs.53,15,581).
Arun ravi
Thankyou sir….
If i drop one small and midcap fund ,which one you prefer….
Please advice sir
Basavaraj Tonagatti
Arun-Go with SBI Magnum Global.
ARUN RAVI
sir, now I plan to invest Rs.3000 more from next month.Would I invest in the above funds or I start new Sips..if new funds,kindly suggest the funds..
Jerry
Dear Sir,
Thank you for this valuable information ,I am a NRI and with agents and bank pushing me with various SIP’s I have a mix sabji of investments .
I now want to discipline my self and re arrange my investments to give best results.
I invest 25K per month spread across the below SIP’s, planning to increase to 30K from next month
I am investing for long term needs and this funds are for my retirement with a target of 1.5 Crores
I want to avoid capital gain tax .
Following is my investments in SIP’s
Birla Sun Life Frontline Equity Fund – Growth — Since 2009, Amt Invested so far 67K, gain 12.21%
Tata Infrastructure Fund Plan A – Growth — since 2008, Amt invested so far 98K, gain 4.86%
Birla Life Midcap Growth Regular Plan – since 2009, Amount invested so far 87K, gain 12.53%
Birla Sun Life Monthly Income – Growth-Regular Plan — since 2013, Amount Invested so far 21K, gain 9%
HDFC Top 200 Fund – Growth – since 2009, Amounted invested so far 116K, Gain 14.55%
HDFC Equity Fund – Growth –since 2013, Amounted invested so far 46K, Gain 35.38%
Reliance Diversified Power Sector Fund – Growth Plan – Growth Option –since 2008, Amounted invested so far 136K, Gain 1%
Reliance Regular Savings Fund – Equity Plan – Growth Plan – Growth Option — since 2008, Amount invested so far 42K, Gain 16%
Reliance Gold Savings Fund – Growth Plan Growth Option — since 2013, Amount invested so far 26K, gain 3.68%
UTI-OPPORTUNITIES FUND – GROWTH — since 2013, Amount invested so far 44K, gain 20.37%
please suggest how to re arrange to get better returns
Jerry
Basavaraj Tonagatti
Jerry-1) Birla Sun Life Frontline Equity Fund-Large and Mid Cap-Continue
2) Tata Infra Fund-Discontinue immediately.
3) Birla Sunlife Mid Cap Fund-Move to any one fund of above said mid cap fund.
4) Birla Sunlife Money Income Plan-What is the reason for investing in this fund?
5) HDFC Top 200 Fund-Continue
6) Reliance Diversified Power Sector-Come out immediately.
7) Reliance Regular Savings-Continue
8) Reliance Gold-No need if you need then restrict to around less than 10% or possible try to invest in ETF.
9) UTI Opportunities Fund-Large and Mid Cap-Continue.
Large Cap is missing. Hence select a fund from above large cap fund of my choice and start ivnesting.
Jerry
Thanks for your advice,
I dont have good knowledge of investments, when I go to India, Banks, Agents who are friends etc. convinced me, today I have all such funds. Birla Sunlife Money Income Plan, Reliance Diversified Power Sector is a reason of such.
One final question I have.
after following your advice and switching to the funds suggested by you.
I will stay in it for say 8 to10 years. after that period when I exit will I be taxed (Capital Gain tax)
Basavaraj Tonagatti
Jerry-Let me know your status after 8 to 10 years. For resident Indians long term gain (more than one year) from equity is tax free.
Jerry
I am investing in all the funds from my NRE account .. upon exiting these SIP funds can I transfer these returns back in my NRE account … or will it go to normal savings accounts and I will be liable for income tax or TDS if I invest in FD’s
Basavaraj Tonagatti
Jerry-First let me know your status while withdrawal time.
Jerry
Case 1 : NRE at time of withdrawal : My plan is to be NRE for 8 – 10 Years and will exit the SIPS transfer the returns to my NRE and come to India for good
Case 2 : Resident at time of Withdrawal : if I loose my job before this period say 3 years and have to come over to India and start work I will continue in SIP in order to achieve my goal and exit the funds in 10 Years and divert the funds in Fd’s,
My current age is 35
Basavaraj Tonagatti
Jerry-In both the cases equity investment of long term gain will be exempted. But if any short term then there will be 15% TDS on short term capital gain (less than one year).
Jerry
Thank you Very Much.. appreciate your advice, time and patience.
Keep up the good work
Anshu
Hi Sir,
Thanks for your valuable information.
I didn’t get the market risk means what money I invested. Its goes to zero. Please write something on risk with some example.
Thanks
Basavaraj Tonagatti
Anshu-Risk in the sense lower return to negative return. It will not make your values zero. But if it is negative growth then automatically impact you.
Anshu
Hi Sir,
I am 25 year, I need your help in setting my financial goal. I have two goal
1) For 25 year- I want to invest 2000/-
2) 15-20 year- I want to invest 5000/-
Can you help me to make my portfolio. Please also suggest amount if it is not proper, because someone say that in MF we also investment proper amount as something compound.
Thanks
Basavaraj Tonagatti
Anshu-When you said time frame then may I know what goals are they (I think it will not be problem for you in sharing the name of goal)? Also what is your target amount? I am unable to understand what you are pointing to say by the line “Please also suggest amount if it is not proper, because someone say that in MF we also investment proper amount as something compound.” in a elaboration manner?
Anshu
Hi Sir,
The goal are
1) Retirement – 25 year – 2000 per month – Target amount – 30 lac.
2) Children Education – 15-20 year – 5000 per month – Target amount – 40 -50 lac.
I am right now 25 year, I am going to invest for long term.
Thanks
Basavaraj Tonagatti
Anshu-
1) Going by your target and monthly investable amount, if the product generates around 10.71% return then you can easily achieve this. Select a large cap fund from above list for this. But do you think Rs.30 lakhs after 25 years is suffice for your retirement? If we bring it to current value with inflation of around 6% then that Rs.30 lakh in today’s term will be just Rs.6,98,000. For how many years you survive from this Rs. 6 lakh if you get it now and thinking that you are into retirement life?
2) Coming back to second goal, if we consider time frame of 15 years, investable amount Rs.5,000 and target amount Rs.40 lakh then return on investment must be around 17%. But when we consider equity return then the ideal consideration will be around 10% to 12%. So to achieve this goal either you need to increase your investment or reduce the target amount. Because you can reduce the time frame of this goal. Hence think and decide. For this, you can select a Large and Mid Cap fund and along with Mid and Small Cap fund from above list.
Anshu
Thanks for valuable information.
To achieve goal two, 5000/- for 20 year. I selected these MF
UTI Opportunties- 1000/- – L&M Cap Fund
IDFC Premier Equity- 1000/- M&S Cap Fund
Canara Robeco Equity Tax saver (G) – 1000/-
Should I increase the amount on each mutual fund or I add some more MF to my portfolio.
Thanks & Regards,
Basavaraj Tonagatti
Anshu-Go ahead with these funds only with adding more amount than funds.
Anshu
Thanks for helping me.
I am using FundIndia to invest in mutual fund. Will they provide the document of these mutual fund. For such a long time people are investing, so I am worry about.
Thanks & Regards,
Basavaraj Tonagatti
Anshu-They are trustworthy. No need to worry and I personally know about their business module 🙂
Rohit K
Hi Sir,
Thanks for the previous Info given!
As per your blog, I have started SIPs and few already running SIPs as below:
1. UTI Opportunties- 1000/-
2. HDFC Balanced- 1000/-
3. IDFC Premier Equity- 2000/-
4. ICICI Pru Focused Bluechip- 1000/-
5. SBI Emerging Business- 1000/-
I was thinking to invest in Franklin Smaller Companies Fund of say 500 to 1000/-. Please advise.
Kindly, correct my portfolio if you feel it is not ok. Please advise.
Basavaraj Tonagatti
Rohit-What is the reason behind choosing one more fund called Franklin Smaller Companies fund?
Rohit K
What I was thinking is it is performing well currently, I do agree the similar category (Small and MidCap) I already have the fund and I do have 1000/- spare to invest per month.
Kindly advise on my portfolio as well, do you think it is correct?
Basavaraj Tonagatti
Rohit-Fund may be performing well currently. But it will not add value to your diversification. Hence suggestion is to select a fund from each category and start investing. Instead don’t be in a drive to adding funds for each new investment.
Rohit K
Hmm.. Right…. Thanks Sir, I got it.
Kindly, atleast tell on my portfolio. I am waiting for your words on it??
Raghav
Hi BasuNivesh
I have few queries where I need your suggestion. I have liquid of Rs500000 which I would like to invest in combination of equity, debt funds for period of 5 years. I am currently 44 years. would like to have your suggestion on composition of the funds choice of 50%-50% in the equity, debt combinations. please suggest any better combination, by not restricting to 50/50.
thanks & regards
raghav