I have two questions,
1. I am investing in mutual funds for close to 3 years. I want to continue with my investment for the next 5 years.
I have recently increased my SIP amount. I would like to confirm with you whether my existing MF plans are good to continue with.
HDFC Mid-Cap opportunities Direct Growth – Rs.6000
HDFC Top 200 Fund Direct Growth – Rs.5000
HDFC Balance Fund – Rs.3500 ( Starting from this month)
Axis Long Term Equity – Direct Growth – Rs.3500 ( For 80C)
I am planning to reduce HDFC Top 200 Fund. Can you please advice me on this.
Is the above mutual funds are better for long term ?
I am 30 years old. I am interested to increase the mutual fund SIP amount by around 10% every year.
2. I am keeping my surplus amount in liquid funds for short term or contingency fund.
I am planning to switch some of the amount to arbitrage fund for tax benefits. Is it s better idea to do that ?
Or is there is any better short term investment ( < 2 months) than the above ?
Thanks and Regards,
Gopi-Along with reducing your exposure to HDFC Top 200, I also suggest to reduce your exposure of HDFC MidCap Opp. Because you are saying that you invest only for another 5 years (I presume you need money after 5 years only). Instead allocate more towards HDFC Balanced fund and if possible include a different large cap fund (not HDFC Top 200). You can continue Axis Fund.
In my view keep the emergency fund in products like Bank FDs (create the FDs through net banking and this makes liquidating easy) and some part in liquid funds. But arbitrage funds are not suitable for an emergency. Reason is, if you need the cash within a year then they are not tax-free.
Dear Sir,Thanks for your reply. Do you I need to reduce HDFC Mid-cap too ?. Because I am planning to invest a minimum for next 5 years. I can continue if it is suggested for mid-cap funds ?Can you please suggest some better large cap funds instead of HDFC Top 200 ?
Gopi-Yes, that is what I am saying. You can add large cpa fund like ICICI or Franklin Bluechip Funds
And also arbitrage funds can never give returns like an equity/hybrid fund.
drpupai-We can’t expect equity returns from Arbitrage funds. Because they be active only when there is an arbitrage opportunity. However, considering the taxation issue, if holding period is more than a year, then we can consider arbitrage fund with an expectation of around 8% (tax free) return.
Can u comment mutual fund portfolio of uti opportunities large cap g, can. robecco large cap plus g, axis mid cap fund g all sips of 2500/- each for long term at least 15 yrs. These were taken by my wife without much knowledge. We want to increase amount to 5k each but need your comments on need to change since I plan to follow your charts now. Do suggest any changes so I can maintain long term as per your charts. Thanks.
Sunny-Canara is a new fund with high expense ratio of as much as 2.89%. I simply come out of this fund. Instead let her retain UTI fund. Axis is also a new fund and I don’t want to invest in this. Instead go with a fund which had history. My choice in small and mid cap segment is HDFC Midcap Opp or Franklin India Prima Fund.
Hi Sir, I am 30 year Old and i am now to SIP. I have various other investments like PPF, Insurance and others. However just recently i was planning to start Rs. 5000 investment in SIP everymonth for long term (More than 15 years). However, i am having trouble in finalizing on the funds which i want to invest and somehow i finalized on below. Kindly advice me if i am in right direction. Birla Sun Life Frontline Equity Fund – Growth : Amount (Rs): 1,000.00L&T Gilt Fund – Growth :Amount (Rs): 1,000.00Franklin India Prima Plus Fund – Growth: Amount (Rs): 1,000.00HDFC Balanced Fund – Growth: Amount (Rs): 1,000.00ICICI Prudential Value Discovery Fund – Growth: Amount (Rs): 1,000.00. do let me know in case if i have to make any changes in my portfolio i have selected. Thanks and Regards, Ashwin R
First make sure that equity:debt be 70:30. This 30% of debt may be in PPF or any short term debt fund. Avoid Gilt fund. Rest of the funds are fine.
I do have 30% of my investment in PPF already. Thank you very much sir for your TIPS!!
I invested in below mentioned funds and it is running for past 8 months, however the fund value is in negative hence wanted your advice to know if i still need to hold on to these funds or shall i move to other funds based on current market condition
Birla Sun Life Frontline Equity Fund – Growth : Amount (Rs): 1,000.00
L&T Gilt Fund – Growth :Amount (Rs): 1,000.00
Franklin India Prima Plus Fund – Growth: Amount (Rs): 1,000.00
HDFC Balanced Fund – Growth: Amount (Rs): 1,000.00
ICICI Prudential Value Discovery Fund – Growth: Amount (Rs): 1,000.00
Please feel free to let me know if i need to align any of the funds
Do you think 8 months enough to judge a fund? If you are not comfortable with just 8 months volatile, then better you come out of equity funds. On what basis you selected these funds and what is the asset allocation you are following?