I have been investing in 5 SIPs of 10k each, most of them being small cap and mid cap funds. I am in constant stress of market crash or severe volatility resulting in total upset of my plan which is genuine long term, at least of 10-15 years. Albeit I am getting decent returns should I continue or try some balanced or blue chip funds? I have already been investing in ppf to the fullest capacity.
Thanks a lot sir, but those two funds you have asked to opt out have given the best returns since start. Is there any particular reason to stay out of those two funds? Also NPS came into picture only after the additional 80CCD deduction benefit from this FY.
Is it useful to have an index fund in portfolio? I had one but stopped SIP due to lower return from passive AMC. Also I would like to have your valued opinion of whether i will be useful to have an international/ balanced or pharma/tech or any sectoral fund as a lumpsum investment.
Index funds not suitable in Indian context. I am not fond of any sector funds.
Please let me know the funds you are investing and also your return expectation from this investment. Volatility is inherent in all type of investments. But we must understand to what extent we are capable of bearing it. Including Balanced Fund or not is entirely depends on the % of your allocation towards equity:debt. Hence, let me know the funds names.
The five funds are, 1. ICICI Pru Dynamic, 2. HDFC Top200, 3. SBI Emerging Business, 4. Franklin Smaller Companies, 5. Reliance Small Cap. I also have 5k monthly contribution to NPS (50% Equity allocation).
My return expectation is 14-15% CAGR, 10-15 yrs down the line. I am also investing 1.5 Lakhs in PPF acc. of myself as well as wife's. Hope that takes care of my debt allocation. I am also looking forward to invest directly in some blue chip stocks directly or via the MF route. Please advise…
In your equity portfolio, the problem is with investment mainly attracted towards small/mid cap funds. You are owning one large cap (HDFC Top 200-This currently under performing comparing to it’s peers), you can continue ICICI large/midcap fund. But retain only one small/mid cap fund and that is Franklin. Come out of Reliance and SBI Funds. Having 3-4 funds are enough. I am not a big fan of direct equity. Mainly because it needs huge cash to construct an equity portfolio. Hence, I suggest you can switch from HDFC Top 200 to Franklin Bluechip or ICICI Bluechip. When you expect around 14%-15% investment tenure of 15 years or so, then I feel you can easily achieve this. PPF is good only if it matches your goal tenure. Stay away from NPS as much as possible.
Recenty u advised me to continue in hdfc top 200. In this you are asking to switch. I have invested since last 5 hrs with only 7.5% . so what to do with hdfc top 200
Satyan-Check the heading of post. Person in question is dissatisfied with the existing funds. Hence, I suggested alternatives. But I am still hopeful of fund manager PJ and the fund.
Thanks a lot sir for your prompt answer. I just want to know if there is any particular reason behind stopping SIPs in Reliance small cap and SBI emerging business. Those were top funds when I started and has given best returns amongst all. NPS came into picture only after finance minister’s extra deduction under 80CCD. I would also want to know your opinion regarding sip/lumpsum investment in balanced/international/sectoral fund. I earlier had an index fund but stopped it after few months considering less role of passive AMC. I would love to have your opinion regarding passive index fund vs large cap fund for SIP.
If you invest 2-3 funds of same category (small and mid cap) then it not serves any purpose. You must diversify your investment. But it must among all sectors, not in funds which represent the same sector. it creates an overlap and it may harm if that particular sector underperform. Hence, retain one fund from each category. NPS lacks the return (8% to 9%) for such long-term goal. Also, it locks your investment. It is taxable income when you start to withdraw, which is not the case of equity investment. If your goal is long term then there is no harm in investing as lump sum. I love active funds than Index Fund. Because Index construction is not that much matured in India.
Well, is it then better to increase the amount of SIPs rather than the no. of SIPs? Again star performers of yesterday becomes lacklusture today. If one has to stick to great funds all the time, he has no other way but to churn his portfolio repeatedly. This is the real problem with MFs.
There is no logic in increasing the number of SIPs. Hence, I suggest increase in amount. It is impossible for all to be invest all in STAR performing funds. Churning in MF required only when the fund is consistently underperformed your expected return and the benchmark.