basunivesh@gmail.com
The market looks very positive and all equity mutual funds showing huge returns. So which one to choose, those who are consistent or those which given 60% to 70% return in this booming market? Let us short-list the funds for your investment in mutual funds for 2015.
Note-I published the new Mutual Fund list for 2016 !!! Visit my blog’s latest posts for the same at
- Top 10 Best SIP Mutual Funds to invest in India in 2016
- Top 5 Best ELSS or Tax saving Mutual Funds to invest in 2016
Before proceeding, last year I wrote a post “Best 10 Mutual Funds to Invest in India for 2014“. So let us review how those funds are performing. Then we proceed to this year’s choice.
Note-All values are taken from valueresearchonline and values are as of today.
How I am selecting funds?
- I first short listed funds category wise, like large cap or large and mid cap like that.
- Funds must be at least 5 years old.
- AUM of the fund must be around Rs.1,000 Cr, as it creates faith among investors.
- Some other technical terms like expense ratio, standard deviation, alpha, beta, Sharpe or Sortino.
- Finally, my faith in mutual fund company and its business model.
- I picked the funds based on 5 years as well as 10 year return.
- I have not gone through any star ratings to choose these funds.
Why I have chosen 10 funds only?
I know lots of us have wrong belief that having so many funds across fund houses will actually diversify our portfolio. It is totally a wrong concept. You forget to understand the underlying stocks each fund holding or your overall portfolio holding. Therefore, it creates to such huge risk that our investment may be highly exposed to specific sectors or stocks. In addition, it is one more misconception that few go on add funds for each of their goals or fresh investments. This also not a better idea. Instead, stick 3-4 funds maximum and invest in them. This keeps your head cool, simple, and easy to track.
Best 2 Large Cap Funds to Invest in India for 2015
I short listed the funds and found that these two below funds are my best choice. Because of their expense ratio, lower standard deviation to their peers, higher alpha, lower beta and high in Sharpe ratio and Sortino ratio.
I stayed away from few Index funds, which have a less expense ratio, but AUM also not fits into my comfort. However, if AUM does not matter to you then you consider some Index Funds too. I stayed away from HDFC Top 200 Fund only because of higher standard deviation to above funds. Otherwise, I strongly advocate towards that fund.
Best 2 Large and Mid Cap Funds to Invest in India for 2015
When you compare this year choices to previous year’s,you find that both of earlier funds missing. I removed UTI Opp Fund, because it moved to large cap. I removed Quantum only because of ICICI’s superior performance compared to Quantum (even though Quantum claims to be less expensive fund).
Best 2 Mid and Small Cap Funds to Invest in India for 2015
Here you notice that I retained Reliance Equity Opp Fund, but discarded the IDFC Premier Equity Fund. It does not mean that IDFC Fund is bad. However, the results in my review were almost neck-to-neck between HDFC, IDFC, and Reliance. I selected HDFC only because of its superiority in higher alpha and Sharpe ratio. In addition, when you look at return wise, I found HDFC holds better than IDFC.
Best 2 Balanced Funds Equity Oriented to Invest in India for 2015
I retained the same old funds, which I recommended previous year. Therefore, no change in it.
Best 2 Tax Saving Mutual Funds (ELSS) to Invest in India for 2015
Here again, I deleted one fund and retained the previous year recommended fund. I deleted Canara Robeco only because I felt low alpha and Sortino ratios. Also, compare to above two funds Canara Robeco seems to be costly when we consider expense ratio.
Do remember that to construct a portfolio it does not require to have a fund from each category. Construction of portfolio again depends on one’s requirement, risk-taking ability, period of the goal and many more things.
Any suggestion on alteration of selection
Kushal-It is hard for me to guide blindly.
Hi Basu
I just selected considering portfolio would have Large cap 40% and mid cap 30% and small cap 30%
I chooses diversified fund by thinking to have for longer duration around 5-8 years and Franklin and DSP /L&T india (Mid cap and Small cap) for duration upto 3-5 years.
Please suggest your valuable input for any alteration in selecting the fund.
My objective is to invest around 4K -5K p.m for (diversified for longer duration and mid/small for upto 3-5 years).
Kushal-What about debt portfolio?
Hi,
I have planned to invest in equity funds as of now.
Hi Basu
I Have started SIP in mutual funds and below are my selection for future investement and time horizon would be 5-8 Yrs.
Can you please let me know your view and which funds should I select
1. ICICI Value discovery Direct growth – 1K
2. Franklin I smaller company fund direct growth – 1K
3. DSP blackrock Micro cap direct fund – growth – 500
4. Franklin india High growth co fund – 1K
5. L&T India Value fund – 1K
6. SBI Bluechip fund direct
Kushal-On what basis you selected these funds?
I just selected considering portfolio would have Large cap 40% and mid cap 30% and small cap 30%
I chooses diversified fund by thinking to have for longer duration around 5-8 years and Franklin and DSP /L&T india (Mid cap and Small cap) for duration upto 3-5 years.
Please suggest your valuable input for any alteration in selecting the fund.
My objective is to invest around 4K -5K p.m for (diversified for longer duration and mid/small for upto 3-5 years).
Sir plz answer the query asked in the previous post
Basu Sir first of thank you very much for running such high quality financial education portal in India.
Information like this is so difficult as no school, colleage, university provide such practical knowledge which impact our day to day life so much.
I have regular visitor since many last couple of month since and if you remember I pinged you too on facebook too couple of times recently 🙂
After lot of depth knowledge, analysis and conversation with u on fb I invested Rs 5000 in each following 5 mutual fund as long term investment (upto 10 years) with total mindset of getting good return on investment. I will invest similar amount each year in mutual funds and see how it goes. My goal is just to get good return on investment.
Franklin India Smaller Companies Fund
HDFC BALANCED FUND – GROWTH
Mirae Asset Emerging Bluechip Fund Growth
Franklin India PRIMA PLUS GROWTH
HDFC Short Term Opportunities Fund – Growth
As this is my first investment in mutual funds with no much knowledge. Whatever I learned was thru your website or websites like money control etc. However if we feel too scared or think too much of risk then probably will never be able to start and hence I took my first step, hope it goes will and open new pages of knowledge and experience. Look forward to receive your feedback on my choice.
Thanks & Best Regards,
Deepak-We already discussed this in our FB chat.
Sir plz analyse my portfolio.time frame is a10 years
1ELSS :icici long term equity fund tax saving.i am already investing 4000 sip in this fund
2)SMALL AND MIDCAP:franklin india smaller company or franklin india prima.p lz suggest
3)large: franklin india blue chip or sbi bluechip or birla sunlife frontline equity fund.plz suggest
4)plz suggest one midcap fund.
I am already having debt portfolio in term of ppf pli shukanya of about 70000 per year
Dear Sir
I have 1 Cr to invest for 10+years
My goal is to have around 25-30% annual return.
Will u be kind enough to share ur views based on ur vast experience and knowledge, keeping urself in my position, as to how u would achieve these goals.
P.s. Tax saving is uptodate, no immediate requirement of money God willing. Already in 30% bracket.
Regards
VS-First, 25-30% is highly expected return. My expectation from equity for such long-term goals is 12%. Are you ready to expect this much?
Thanks for reply
12% annualised?
I have heard high returns from mf.
I m not an expert like you but My NSC gives me 8.99% annualised returns with no risk involved and capital absolutely secured.
So my query or shall i use the word expectation from mf on account of capital risk involved may be on a higher side.
So my original question again “”””Will u be kind enough to share ur views based on ur vast experience and knowledge, keeping urself in my position, as to how u would achieve these goals.”””
P.s. dont feel offended by my use of words. I have great respect for u and ur kNowlecge having read ur posts extensively.
Regards
Vs-High returns expectation also comes with high risk. Again, HIGHER side means? 9%, 15% or 25%?? Don’t put your goal in my basket. Each individual is different and the risk I will take may be laughing for you or you may feel HIGH RISKY. So don’t try to compare.
HI Basu sir,
Could you please review my below portfolio
Large Cap / Multi Cap ( CORE Fund)
Quantum Long Term Equity fund : SIP- Rs 4000
PPFAS – Long Term Equity – Rs 1000 SIP
Large Cap:
SBI Blue Chip – Growth – Rs 1000 SIP
Mid Cap:
Mirae Emerging Bluechip Fund (G)- Rs 2000 SIP
Small Cap:
DSP BlackRock Micro Cap fund growth – Rs 2000 SIP
Diversified Fund:
Franklin High Growth Companies – Rs 1000 SIP
ICICI Value discovery fund – Rs 1000 SIP
Balanced Fund:
HDFC Balanced fund growth : Rs2000 SIP
Franklin India Balanced Fund -Growth – Rs 2000 SIP
Long term Debt Fund:
HDFC High Interest fund dynamic plan (G) : Rs 1000 SIP
Short Term debt:
Birla SL Dynamic Bond Fund Growth – Rs 1000 SIP
Credit Opportunities fund:
DSP BR Income Opportunities Fund (G): Rs 1000 SIP
I have formatted it in a better way.
Large Cap / Multi Cap ( CORE Fund)
Quantum Long Term Equity fund : SIP- Rs 4000
PPFAS – Long Term Equity – Rs 1000 SIP
Large Cap:
SBI Blue Chip – Growth – Rs 1000 SIP
Mid Cap:
Mirae Emerging Bluechip Fund (G)- Rs 2000 SIP
Small Cap:
DSP BlackRock Micro Cap fund growth – Rs 2000 SIP
Diversified Fund:
Franklin High Growth Companies – Rs 1000 SIP
ICICI Value discovery fund – Rs 1000 SIP
Balanced Fund:
HDFC Balanced fund growth : Rs2000 SIP
Franklin India Balanced Fund -Growth – Rs 2000 SIP
Long term Debt Fund:
HDFC High Interest fund dynamic plan (G) : Rs 1000 SIP
Short Term debt:
Birla SL Dynamic Bond Fund Growth – Rs 1000 SIP
Credit Opportunities fund:
DSP BR Income Opportunities Fund (G): Rs 1000 SIP
John-Do these many funds required?
Hello Basu sir,
I am looking to invest in ICICI bank as they want me to invest minimum 50k/year so that i can get meet my locker requirement.As i have been looking for locker so i decided to invest 50k/year with ICICI.Can you please suggest 1 MF which will give me high returns.I am long term investor min 10 years.Please suggest where to invest in ICICI.
waiting for your valuable suggestion.
Devendra-Where is the rule that to get locker one must invest Rs.50k? They are selling their product to meet their sales target. Rest is left with you to decide.
actually they want me to build relation with them.So they want some investment towards their product so they can give preference on that basis.
So which MF would you suggest from ICICI which will give higher returns.
Devendra-NONE.
Devendra-Ha ha…relation building will be based on what service they provide to you. Not by investing as per their choice. Let them provide the quality service, then relation will automatically build.
yes true 🙂
I saw your blog on best mutual fund to invest in 2016 there i saw you suggested to invset in ICICI Pru Discovery.Should i consider this for SIP investment of monthly 2000
Devendra-It is purely left with you. But what I am pointing is that what they are doing is completely illegal and you are being used as scapegoat. Decide and act.
Hi Basavraj,
I wanted to know more about US Oriented mutual fund like ICICI Prudential US Bluechip Equity Fund & Franklin India Feeder franklin US Opportunties .What is your opinion on investing in such funds and are they rewarding enough in long term of 10 to 15 yrs ? I wanted to invest 10% of these in my portfolio but dont have much idea.Please guide me.
Regards,
Swapnil
Swapnil-I can’t judge the claims of these Mutual Fund companies on such funds. Because I don’t know the companies where they are investing and their financials.
Hello Basavaraj,
I am thinking to invest in mutual Fund in long term (5 years) perspective.This will be my first MF.Can you please suggest which fund to select.Please suggest MF From ICICI as i need to invest some amount in icici to build relation with them for some reason.
Thank you.
Devendra-Personally if my goal is 5 years, I will not enter equity mutual funds.
Thanks for your suggestion.for how long you suggest i should keep investing in equity mutual funds.iF i choose to stay for 10 years then which equity mutual funds would you suggest.
Devendra-It depends on your financial goals. How can I say that?
i am looking for a long term (10 year) investment in equity mutual fund.Can you please suggest which fund i should go for?As i mentioned please suggest from Icici.I have picked ICICI Prudential Value Discovery Fund-G plan should i go with this?please suggest waiting for your valuable suggestion.
Devendra-One equity oriented balanced fund is enough like HDFC Balanced Fund.
I am currently 35 yrs old with around 12 L invested in Mutual fund SIP,
My currently Monthly SIP & PPF (Myself & Wife ) allocation is as below :-
1) HDFC TOP 200 -3000
2)BSL Frontline -3000
3)Franklin India Blue chip-15000
4)Franklin Smaller companies-15000
5)HDFC Balanced-20000
6)PPF-25,000
My Large Cap would be 40 % of my equity portfolio which will manage with my earlier money accumulation of SIP amount via HDFC top 200 & BSF Frontline equity. I have below 2 questions.
Question 1 :-
I wanted to add one MID cap fund (SIP of 15,000 ) which majorly focuses on Mid-cap ,could you advise which one should I go for from below list with 12 to 15 years investment Horizon.
1) Mirae Asset Emerging Bluechip
2) HDFC Mid Cap Opportunities
3) Franklin India Prima Fund.
Question 2:-
Should I go for Multi cap fund to above Portfolio ? need your opinion and If I wanted to add one MULTI cap fund (SIP of 10,000 ) which majorly focuses on Multicap ,could you advise which one should I go for from below list with 12 to 15 years investment Horizon.
1) Franklin India High Growth Companies Fund
2) Franklin India Prima Plus Fund
3) ICICI Prudential Value Discovery Fund
4)Mirae Asset India Opportunities Fund
Kindly share your detailed Opinion.
Regards,
Swapnil
Swapnil-1) HDFC Mid Cap or Franklin India Prima. 2) Franklin India Prima Plus or ICICI Pru Discovery.
Hello Sir,
I am 24 yr old and starting my investment this month . I can invest up to 8000 per month .
I want to have one plan which will give me good returns in 5yrs, and another one for long term (> 10yrs).
For 5yrs – 4000/month , suggest me which is a better plan in the above-mentioned ones to start with ?
For 10yrs – 4000 / month , again I need which plan is better to maximize returns ?
I spoke with an HDFC Banker he suggested me ULIP for 5yr plan . But he is insisting me to invest the entire amount for the year ( 4000×12 = 48000 ) at once . But I am reluctant to start with this , please provide your suggestion for the same .
Thank you
Balaji-Stay away from such Banker. He is a dangerous species nowadays. For 5 years, use Short Term or Ultra Short Term Debt Funds (You can include around 10% to 20% equity exposure). For 10 years goal, one large cap and one small and mid cap fund and rest in debt exposure. Equity to debt should be in ratio of 40% to 60%.
Hello Sir,
Below is my current equity portfolio. I plan to continue my investment for another 10 years. Please let me know if the portfolio looks fine or I need to make any changes
1. HDFC Prudence – 2,000 -Balanced Fund
2. ICICI Focussed Blue chip Fund – 2,000 -Large Cap
3. ICICI Value Discovery Fund- 2,000 -Diversified Category
4. UTI Mid Cap- 2,000 – Small & Mid Cap
I have basically looked at the best possible in each Fund category. I am planning to invest another 2,000. Please suggest which would be the best choice
Sharath-Where is debt portfolio?
What changes do you recommend?
Sharath-In your selected funds, both ICICI funds are enough and manage it in such a way that 60:40 in equity and debt.
Thanks a ton for your valuable feedback. I will consider it right away.
Which Debt fund do you recommend?
Sharath-It will be in short term or ultra short term funds.
Hello Sir,
Below is my current equity portfolio. I plan to continue my investment for another 15 years. Should I include any small cap fund to my portfolio?
Franklin India Taxshield Direct-G – Rs.4500
Axis Long Term Equity Direct-G – Rs.4500
ICICI Pru Focused Bluechip Equity Direct -G – Rs.4000
ICICI Pru Value Discovery Direct-G – Rs.3000
Thanks,
Sanjay
Sanjay-Why two tax savings funds and where is debt portfolio?
Sir , I have started investing in below mutual Fund from last month.
1) SBI Blue Chip Fund (G) – 2K
2) Franklin India Smaller Companies Fund (G) – 2K
I am also thinking to Start investing in below mutual fund please pass your comment on above and below mutual fund
DSP BlackRock Micro Cap Fund – Regular Plan(g) – 2K
Thanks
Anurag
Anurag-Your timeframe?
i am looking for more than 10 Years at least.
Hello Sir,
I closed my EPF and EPS account and got around 4.5 L. I don’t require that amount for next 4 to 5 years. I already have an equity portfolio where I contribute Rs.16000 per month and apart from this I can save additional Rs.15000 per month .Where do you suggest me to invest my PF withdrawal and my additional saving amount? Debt or Balanced fund?
Debt fund :
Franklin India Ultra Short Bond Fund – Super Institutional Plan
Balanced Fund:
HDFC Balanced Fund
Sanjay-Institutional plan is not meant for retail investors. Don’t invest in balanced fund. Because they contain equity part.
Thanks Sir. Can you suggest some debt fund ?
Sir, Is Franklin India Ultra Short Bond Fund – Direct Plan good?
Sanjay-I suggest Birla Sun Life Cash Manager over this plan.
Thank You
hi,
Your analysis is informative. Just a question if you can share your opinion on this too
I would like to start SIP in one of the large cap funds. Below are the funds which i have short listed. Could you share your opinion, which would is better over another and why?
1) SBI Blue chip fund (G)
2) Franklin india blue chip fund (G)
Jiten-Why two funds within a same category?
Hi Sir,
I have invested in following ICICI Prudential Mutual Funds.
1) ICICI Prudential Long Term Equity Fund (Tax Saving) – Dividend
2)ICICI Prudential Value Discovery Fund – Growth
3)ICICI Prudential Focused Bluechip Equity Fund – Growth
Am I eligible to do the Rajiv Gandhi Equity Savings Scheme(RGESS)? Please suggest me.
Jay-YES. If your income is also less than Rs.12 lakh and you never had a Demat account.
Thank You Sir!
So far I don’t have demat A/C and my income not come under Rs.12 Lakh Slab 🙂
Actually what I hear is like if we invest in equity Mutual funds then not eligible for the RGESS.
Jay-There is no such mention of equity mutual fund for exclusion.
Sir
I have invested in SBI-LifeUnit Plus-II Regular Rs 25000 p.a. on 20/03/2007. And in ICICI Pru wealth Builder on 10/08/2013 for Rs 35000. Should I continue the same ? I have Term Insurance for 50 lakhs and SIP in Axis ,Franklin (ELSS),ICICI Bluechip, Mirae bluechip,UTI opprtunities fund Franklin India smaller companies,Mirae Asset India opprtunities,HDFC Mid cap for Rs 2000 each for last 24 months.Please sugeest to resturcture my portfolio.My age is 46 years.
Sanjib-Both SBI and ICICI Products are ULIPs but not investment products. Hence, I suggest you to come out of that.
Hi,
I can invest 5k month. Which investment is better for short term.
How can we choose best investments.
Anil-What do you mean by short term?
Dear Sir,
Last year I have invested in ICICI Prudential Long Term Equity Fund(Tax Saving).
I am planning to do ELSS in this year as well.
Could you please suggest me whether I can invest in the same fund or any other fund?
Jay-You can continue the same.
Hello Sir,
I want to invest 3000 Rs per month for 5 yrs starting April ’16 in SIP.Can you plz suggest me funds for good return in 5 yrs.
Thank in advance
Sminder-No equity for 5 years of time frame.
Hello Sir
I am totally new in this field and I heard about mutual funds is best for longer term.
My objective is to get good returns after 5 or 10 years. Today I just met with HDFC and get to know about HDFC mid cap and blue chief and balance funds.
1. Any other mutual fund where I should invest instead of HDFC?
2. I f you think HDFC is good then should I go ahead with mid cap or blue chief.
Thanks all help in Advance.
Deepak-Whether your investment horizon is 5 years or 10 years? First decide that. Second thing, whether that HDFC executive explained the RISK involved in each fund? I think NO. Because they are sales executives. If your time frame is 5 years or so, then don’t enter into equity. If 10 years, then an equity-oriented balanced fund (like HDFC Balanced Fund or Tata Balanced Fund) is enough. Stay away from bankers for your investments.
Hi Sir,
I want to invest lump sum amount to mutual funds, if we have chance to invest lump sum amount to all mid cab, small cab funds.?…or we have only chance to invest monthly basis…?
-Sathiya
Sathiya-No, you can invest in lump sum in any types of funds.
Hi Sir,
I am Planning to invest some amount in investment options which will include Interest & Insure cover.
So can you suggest which one i can go for it?
Will it be fine on SBI lIfe – Flexi Smart Insurance? Is it ULIP?
Please advise me.
Jay-I am against combining both. But why you want both to be combined in same product?
Hi Sir,
Thanks for reply.
I am planning do investment in SBI life – Flexi Smart Insurance investment(5 Years). So would like to know my decision is good to investment in this?
Is there any best other investment options in the same category?
Jay-It is purely wrong to mix insurance with investment. Second thing, the time horizon. It is just 5 years. I don’t think you can earn more than 4%.
Hello Sir,
Thanks for your suggestion.
As part of my investments for FY15-16, I am planning to opt one ULIP. So could you please suggest me best option?
Jay-Whether you invest based on financial year or on financial goals?
Hello Sir,
It’s for both.
My target is more that 5+ Years
Jay-Then why ULIP?
Suggest me best option sir.
Jay-There is no magic. Stick to basics. Your time frame is just 5 years. So use FDs, Short Term Debt Funds and Arbitrage Funds.
Hello Sir,
Please provide your feedback my MF portfolio. I intend continue with SIP > 10 years.
Axis long term – 5k
Frandklin India Opp. – 5k
Birla SL India GenNextF – 3k
Birla SL Midcap – 3k
SBI Blue Chip – 3k
Thanks
James
James-You can continue the other funds but in my view you have think about funds like both Birla MFs.
Dear Basavaraj, thanks for sharing your expert views. I am presently investing 30000 through monthly SIP for last 3 yrs and would like to continue for at least next 10 years. My SIPs are as under :
1. ICICI Pru Focussed Bluechip – Rs 12000
2. UTI Opportunities Fund – Rs 12000
3. HDFC Midcap Fund – Rs 6000
Should I continue with this fund selection. Through your comments I realise that I do not have a Balanced Fund for Debt Exposure. Which SIP I should cut down to include a Balanced fund and for how much amount……
Thanks a Lot
Rahul
Rahul-You can continue with these funds. I insist debt portfolio for at least around in a ratio debt to equity as 30:70 for your long term goals. If you have separate debt portfolio, then balanced fund is not required. Otherwise, you can create the one using short-term debt fund or balanced funds. If you want to invest in balanced fund, then you have to come out of anyone large cap (ICICI or UTI-which is currently in large cap category).
Thanks Basavaraj for the prompt response. Will do the needful. Is there a need to have a small cap fund also in the portfolio, though I agree with you that for a 10 yrs investment horizon, large cap should be the preferred option…..
regards
Rahul
Rahul-You can opt small and mid cap, but considering the risk and your investment horizon, you may invest in small portion.
Thank you very much sir for this wonderful interactive site. Sir, I want to do SIP of rs. 3000 in IDFC premier equity growh-direct for 8-10 years. I already have 2 SIP of 3000/each: one in HDFC balanced fund and the other is UTI equity both growth direct option. Will you please suggest me? I am 36 yr old.
Thanks in advance.
Pradip-It is a mid cap fund. My choice will be the above two small and mid-cap funds over IDFC.
Hi ,
I am investing un the below mutual fund through SIP . Could you please suggest ,should we continue with these mutual fund or anything need to be changed.
ICICI Pru focussed bluechip – 3000/-
SBI Blue Chip -5000/-
Birla Sun Life Frontline Equity Fund -2000/-
SBI Magnum Global Fund -1000/-
Birla Sun Life India GenNext Fund Growth- 2000/-
ICICI Prudential Value Discovery Fund Regular Plan Growth -3000/-
Tata Equity Opportunities Fund Regular Plan Growth -2000/-
Birla Sun Life MNC Fund Growth -1000/-
Pradip-Why so many funds within same category? Retain one from each category.
Hi Sir,
Could you please suggest me which one should i retain ?
Hi Sir,
Waiting for your response
sir,I have following mutual funds.please advice me about my portfolio.1)HDfC MIDCAP OOPRTUNITY FUND GROWTH SINCE 5 YEARS.2)IDFC PREMIER EQUITY FUND GROWTH SINCE 5 YEARS 3)HDFC GOLD SAVING FUND SINCE 4 YEARS 4)RELIANCE EQUITY OPPURTUNITY FUND SINCE 2 YEARS 5)ICICI PRU DYNAMIC BALANCE DIRECT SINCE 10 MONTHS.
Haramohan-Apart from Gold, I don’t have any issue with existing funds. But where is debt exposure?
Hello Sir,
I have 10k money extra this month, which I am planning to invest in ICICI Prudential Liquid – Regular Plan- Growth for short term so that when ever i need money i can takeout.
So could you please suggest me whether I can go ahead with this fund or invest in Bank FD.
What is safe mode? Whether Liquid fund or FD in Bank?
Please suggest me.
Thank You!
Jay-If your requirement is whenever you need money, then I suggest to create an online FD. This is more liquid than liquid funds.
I am no finance expert or consultant to comment on your site. I am just a doctor who is also interested in personal finance websites. However, I would like to mention that I find your articles superb and must commend you on this particular one. It’s brilliant. The best part is that you have put up your previous years selection!! Most people conveniently forget what they told some time back. Anyway, I am really impressed. Do keep up the wonderful work. All the best.
Incidentally, what is your take on UTI Dividend yield fund ? – I have an SIP running for the past 4 years or so. Will be glad to know your opinion. Morning star, Valueresearch and Moneycontrol give quite varying opinions regarding this fund!!
Regards,
Dr.Paul
Biju-Thanks for your kind words 🙂 In my vies, UTI Dividend Yield is not performing well, when I consider it’s long term performance and other creteria’s I explained above. Instead, I suggest you to switch to above mentioned Large and Mid Cap Fund.
Below are the questions. Please help me to understand them:
1. What is the difference between Large Cap and Multi cap fund.
2. Recently I started investing in Axis Long term Equity direct plan – G. 2500 per month. From balanced fund category, I choose HDFC Balanced Fund to start sip but now want to know the feasibility of below funds.
a) Canara Robeco Balance Direct-G
b) Edelweiss Absolute Return Direct-Gs
c) HDFC Balaned Fund Direct-G
Any other balanced fund you can suggest. I need one fund with a time frame of 15 years..
Mukul-1) Cap means market capital of a stock. Based on that the funds invest. When we say large cap, then fund will only invest large stocks.
2) Stick to Axis and HDFC.
Thank you for nice articles and guidance.
Please Review my investments. Both Started using mutual fund utility:
1. Axis Long Term equity direct growth elss: 2500 per month sip for 15 yrs
2. UTI Mid cap direct growth : 2500 per month sip for 12 yrs
3. I am planning to invert 1 Lac in a lump sum into HDFC balanced fund. Investment time is 5 yrs. Do you suggest it or not or want to recommend some other fund for 5 years of time frame.
4. Also suggest me one more fund to diversify my portfolio considering a time frame of > 10 years. I will be starting another sip of 500 per month.
Mukul-1) Go ahead, 2) Continue, 3) I suggest to stay away from equity if your time horizon is 5 years or less than that. 4) You can include a large cap fund from above list.
Thanks Basu.
On point 3 I need more information:
Should I opt for MIPs as my requirement is 3-5 yrs time frame, safety of principal amount, investment amount 1L.
Hi Sir
I want to invest 2 Lakhs in Mutual Funds as Lumpsum for long term. Kindly suggest the best funds to invest. I don’t have any investment in Mutual Funds till date. Kindly also suggest a good combination of funds for SIP if I want to invest around Rs.6000/- per month in Mutual Funds.
Chetan-They are already listed above and read below comments to arrive at my ideas.
Sir,
I want to invest 2000 per month.
So, please suggest to me.
I select 2 Mutual fund:
1. SBI small and midcap fund
2. Reliance equity opportunity fund
Rajesh-What is your timeframe?
Hi,
Can you pls suggest a good AMC through which I can invest in mutual fund.
I wanted to invest in good portfolio in lumpsum for 1-2 yrs with good returns as the current FD rates have come down. Pls suggest for MF
Thanks in advance
Kumar-Whether your concern is AMC of Fund? AMC does not matter if the fund is performing well since long and beating the benchmark consistently.
Thanks for the reply.
Pls. Suggest me some good performing fund, I have planed to invest 4 to 5 lacks for the 1 to 2 yrs and is it better to invest in different funds as Large cap, mid cap , small cap…. funds.
Kumar-No equity for 1-2 years of investment.
Hi Basu,
I m new to MF, wants to start with SIP for minimum period of 3yrs with minimum risks.
After google, i found out below funds for SIP. Needed ur suggestion on this.
1)Axis long term equity fund -2000
2)Franklin India Taxshield fund – 2000
Both funds are ELSS category.
Thanks in advance.
Abhijeet-If your timeframe is just 3 years, then I strongly suggest you to stay away from EQUITY.
Thanks Basu for your advice,
For how much time period we should invest in Equity as this is Taxfree Options.
Also suggest some other options for Newbiee like me:)
Abhijeet-Ideally one must hold on at least 5+ years.
hi …
thank you for all the help and support you have been extending thru your advise…
my question to you is
1)investing 90 lakhs for a period of 25+years….
2)lump sum or spread it for a period of 6 months(i read a post where you advised someone to invest a lump sum if he was going to be invested for a long term…my personal choice is doing a lump sum
3)advise on the portfolio (kind of aggressive approach to built a corpus of 50 cr in 25 years)…i have not kept any balanced fund /nor do i have a separate debt fund…..selected fund will be in direct growth plans
4)goals…retirement and education and marriage of unborn child..corpus target is 50 cr
personal details
age …33yrs…have emergency fund for 6 months …have adequate medical and term plan …no loans…
port folio ..
hdfc equity……………………………15%
quantum long term equity……….15%
franklin india flexi cap fund……..20%
franklin india blue chip fund…….15%
sundaram select mid cap fund…..20%
dsp black rock micro fund………. 15%
thanks in advance
regards
Asootosh-My choice is lump sum. But it does not mean that you must invest 100% of amount into equity. I suggest around 70:30 in equity:debt. It is a must to have debt portfolio to cushion the equity volatility. Also, wy so many multi cap funds (HDFC, Quantum, Franklin)? My choice is both Franklin Funds, HDFC Midcap Opp rather than Sundaram or DSP.
Hi Basu,
Recently I started investing in Mutual Fund with “ICICI Pru Focussed Bluechip Equity Fund” for Rs2000 per month.
I wanted to add Rs3000 more per month. After going through internet, I filtered below funds. Please advise me which one to select.
1) HDFC Mid Cap Opportunities Fund (or) SBI Magnum Global Fund
2) HDFC Balanced Fund (or) SBI Magnum Balanced Fund
Is it a good strategy to invest multiple funds in same fund house?
Rao-My slection is HDFC for both category. There is no risk or harm of investing within a same fund house.
Thank you Basu,
One more question.
I had kept a time Horizon of min 8 years for above selected fund.
Is there any Income Tax exemption applicable for investments made in normal mutual funds (i.e other than ELSS). And also for the capital gains?
Hi, are you going to come up with a new list for the Best MF’s anytime soon? Do you think right now is a good time to start new Mutual funds ?
Merchant-Wait for my detailed exhaustive post on the same (This time I thought to write with more reasons for my claim of BEST FUNDS). Yes, for long term investors, it is always best time and there is no BAD TIME.
Hello sir,
I am investing ?5000 per month via SIP in
HDFC TOP 200
ICICI BLUECHIP
HDFC MIDCAP
ICICI discovery
For the last ONE YEAR.
Q1. When should I analyse my portfolio i.e to see which funds are doing well and which are not ?
Q2. Shall I continue with HDFC top200 as it is not performing well.?
Your truly
Dr sameer
Sameer-1) Once in year. 2) I don’t think having two large cap is worth. Retain either ICICI Bluechip or HDFC Top 200.
hello sir,
My Current Investment is as below
ICICI PRUDENTIAL FOUCSD BLUECHIP – 5000
HDFC MIDDCAP OPPORTUNITIES – 5000
UTI MNC FUND – 2000
IDFC PREMIER EQUITY – 2000
AXIS LONG TERM EQUITY – 1000
Should i continue with this portfolio?
Akash-Continue with mindset of long term investment.
Hi,
I am 35 years married person working in a private sector. According to the different site and excel based tools I found – I have to invest Rs 30,000 pm for get good values after 15 -20 yrs according to my current expense.
This is not possible for me in this moment. I can Invest Max 15000/ pm
Please validate my plan and suggest necessary changes for continuous 8-12 yrs investment
Balance
1) HDFC Prudence fund – 5000
2) Tata balance fund Plan A (Balance) – 3000
Mid & Small Cap
1) UTI midcap fund – 3000
2) Flanklin India smaller companies – 3000
Large & Mid Cap
1) Franklin India Prima Plus Fund – 3000
Thank you.
bubai
Bubai-There are two ways to achieve goals. If you have either reduce your goal amount or prolong the goal. I don’t know much about the goal you decided. Hence, I will not go in depth on this. My selections are HDFC, Franklin (in both cateogires) and also include a large cap from above list.
Hello Sir..
Your articles are very informative.
I am new to MF. I want to sip of Rs 5000 for a time horizon of 12-15 years.
Recently I have got CAN no from mutual fund utility. Below are my selection:
1. ELSS: Axis long term equity -growth-2500 Rs.
2. HDFC balanced fund – growth – 2500 Rs
Currently I am investing FDs, PPF, LIC. Plz suggest if I need to do any changes.
Mukul-Go ahead and opt for DIRECT.
Hi Sir,
I am new to Mutual Funds. Earlier i used to invest in MFs (SBI Magnum Tax Gain Scheme – D and HDFC TaxSaver- D) for tax saving purpose only which i have stopped for last 2 years because of home loan. I am 35 years old and plan to retire by 55 years. Two months back i have started investing in following funds through SIP (growth):-
1) HDFC Equity Fund : 2000/-
2) HDFC Mid-Cap Opportunities Fund : 1000/-
3) Franklin India Bluechip Fund : 2000/-
4) Franklin India Short Term Income Plan – Retail Plan : 3000/-
5) ICICI Prudential Value Discovery Fund – Regular Plan : 2000/-
Are these funds good enough for wealth creation over 20 years time period.
Thanks..
Wasim-Apart from HDFC Equity, it is a perfect funds selection.
Thank You Sir for the reply. What is the alternative to HDFC equity fund. Which other equity fund can i switch to in this scenario.
Thanks.
Wasim-Invest in the same fund. No replacement required.
Good Morning Sir,
4 years ago when I was working, I invested in Tax Saving Scheme (ELSS) with ICICI and Reliance. Now I am married and unemployed.
I wanted to start a SIP for 2k.
1) Should I redeem the above Tax Saving Schemes and invest in normal Mutual Funds and start SIP on that? (or)
2) Leave the ELSS as is and start a new mutual fund for SIP?
Please advise me. Also advise me with best MF for long term SIP (i.e 10 years)
Sunitha-First review the funds and the eligibility to redeem. If the fund is performing well, then no need to redeem. May I know your time horizon of this fresh investment?
Reviewed and found not eligible to redeem 100% until 2017 since the last Dividend is re-invested on Feb 2014. Also the fund performance is descent with returns 15 – 17%.
1) Is it good to continue. Please advise?
2) Now I am receiving Dividends on these ELSS through bank cheque, received twice after Feb 2014. Can I re-invest the Dividend. Please advise?
3) If re-invested, will that again gets locked for 3 years and cannot redeem 100% of my ELSS fund units?
And my fresh investment time horizon is long term (i.e min 10 years)
Sunitha-Forget about the funds return for a while. During investing, what was your expectation. If that is matching or giving you more than what you expected then why to worry? We tend to act merely looking at ratings or peer comparison. Instead, we must look at what is our expectation. If it is meeting that, then no need to switch.Again, investing the Dividend is based on for what purpose you are investing. My simple advice is “Assign a task to each rupee, then you will get an idea of where to invest”. If your requirement is not tax saving, then why you want to re-invest the dividend in ELSS? First make up your mind.
During investing my expectation was tax saving for that financial year, growth of invested money and tax free dividends/returns/capital gains.
Yes, the performance of the fund is descent and I will continue to keep it for some more years. Thank you for clarifying.
At that time I was employed, so invested in ELSS to save tax. But now I am not employed and my sum of other income sources (FDs etc) is under NIL tax slab. So, I understand it is not necessary to re-invest dividend in ELSS.
I wanted to start savings for future financial needs such as family needs, children education etc. Hence I planned to invest 2k monthly for long term (min 10 years). Please advise me with best fund.
Sunitha-Now you are on right track 🙂 Select one large cap fund and a equity oriented balanced fund from above list and continue investing.
Hello Sir,
Thank you for your valuable advise. Can you also advise for below:
Are you advising me to go with 2 funds? Please see whether below selection is good?
1) ICICI Prudential Balanced Fund – Direct Plan (Rs 1000/-)
2) ICICI Prudential Value Discovery Fund – Direct Plan (Rs 1000/-)
Reason for choosing 2nd fund over Focussed blue chip is because my husband is already investing in Focussed blue chip and I dont want to get overlapped. Please revise if above selection is not good.
I noticed the current NAV for above 2 funds in Growth option are almost double the value than the Dividend option.
So, I request you to also advise which option is good for long term wealth creation.
Dividend Re-Invest (or) Growth?
Sunitha-If the investment goal is for different purpose then there is no harm in investing in the same fund. If the goal is same and you both are just sharing your reponsibilities, then avoid bluechip. Go ahead and invest as the funds chosen. Dividend option is not required for your long term goals. Also, you are again committing a mistake by looking at NAV rather than the fund performance. Please check the performance than NAV. NAV will never matters. If you need long term wealth creation then opt for GROWTH.
Hi Sir,
I am new to MF ,. I want to invest Rs.5000 pm in icici pru focused bluechip growth direct for a 3 years.Is it a good idea or i have to change to some other funds??I will increase my monthly investment by Rs.2500 half-yearly.Please suggest. I need money after 3 years .I am 23 and working in private sector.Have Life Insurance of Rs. 1000000.
And sir i have two questions:
1-Can i redeem my open ended MFs at any time through online/offline??
2-I want to open this SIP in icici bank(as they show me the way against PPF) .So will they take comission against my NAV or any type of comission??
Vikas-No equity investment for a time horizon you shared.
1) Yes. Online if you created the login facility with respective mutual funds.
2) Yes, they act like agents. They compared PPF with this fund for your time horizon of 3 years? Only GOD can save the investors who took the advice from such people.
Dear Basu,
I have selected below funds .Some for 5 years and some for more than 5 years.
1- ICICI Prudential Focused Bluechip Fund-Direct Plan ( G) -Rs.2000
2- ICICI Prudential Value Discovery Fund- Direct Plan (G) -Rs.2000
3- ICICI Prudential Balanced Fund- Direct Plan (G) -Rs.2000
4-HDFC Prudence Fund-Direct Plan (G) – Rs.2000
5-IDFC Premier Equity Fund – Regular Plan (G) -Rs. 2000
And after six months depending on the performance I will increase the SIP amount or think for other funds.
What is your view?
Thanks,
Bikash
Vikas-No equity if your time horizon is 5 years or so. Funds are good buy why two balanced funds? and mid-cap funds? Also, 6 months watching and switching is too short to judge the fund.
Hi Basu,
Thanks for your quick response.
I will retain ICICI Prudential Focused Bluechip Fund-Direct Plan ( G) .But I will redeem all other funds after 5 years.
Then Please Suggest me some funds which can be best for 5 years time horizon.
I want to take moderately high risk.
From next year i will come to tax slab -1.
Is it a good idea to invest in ELSS.If so then suggest some ELSS funds.
Vikas-Please read my comment. No equity for time horizon of 5 years.
Dear Basu,
So shall I only opt for debt funds? or arbitage funds?or liquid funds?
Or if you have any suggestion for investing?
Please suggest how to invest for 5 years expect equity funds?
For how many years I can consider balanced funds as safe investing?
Vikas-Go for short term debt funds and arbitrage funds. Equity oriented balanced funds have exposure of around 65% towards equity. Hence, I still not recommend for tenure of 5 years.
Hi Basu,
I have a education loan of Rs. 2,52,000.I will be in Tax slab -1 from next year.
The main idea is to repay my loan.
So that can I consider some funds for 5 years and some equity oriented funds for more than 5 years(long term).
Shall I be eligible for getting any tax benefit ?
Please suggest type of funds with names by analysing my situation.
I am eagerly waiting for detail article on MF which you are going to publish.
thanks a ton,
vikas
Vikas-There are ELSS funds which will give you tax benefit. But they are purely equity funds. Hence, don’t try to invest in such funds for tax saving as well as short term goal of loan repayment. However, if your goal is more than 5 years or so, then try to enter.
Hello
I am 32years and want to invest 10000 per month in mutual funds via SIP for long term around 10-15 years.
I have one question. Is mutual fund investment is tax free? or taxable?
Lets say I have invested 10000 today and this 10000 become 20000 after 5 years. And then I redeemed it fully. So how much tax I have to pay (if any).
I don’t want to buy them for tax saving 80c. As my limit already used fully. I want this for equity investment because I am already investing full amount in PPF account from last 5 years.
I have short listed below funds to start with.
SBI Blue Chip Fund (G) = 2000
Birla Sun Life Top 100 Fund (G) = 2000
Canara Robeco Emerging Equities (G) = 1000
JPMorgan (I) Mid and Small Cap (G) = 1000
Franklin High Growth Cos (G) = 1000
ICICI Pru Value Discovery Fund (G) = 1000
L&T India Value Fund (G) = 1000
UTI MNC Fund (G) = 1000
Is these funds looks ok. Or could you kindly suggest any others.
Thanks
Rajesh Kumar
Rajesh-There are many versions of mutual funds. Debt funds are taxable based on STCG and LTCG rules. However, equity funds are tax-free after a year. Hence, you no need to worry about taxation during redemption after a year. Have two funds like SBI and ICICI. No need of investing in other funds. At the same time manage the portfolio for around 30% in debt (either through bank FDs, PPF or separate debt funds) and 70% in equity.
Thanks for your suggestion.
I will take SBI blue chip direct g and ICICI pru balanced fund g both 5000 each. After there performance i will add some more money or some other fund later on.
For debt part I am already saving into PPF full limit from last 5 years.
Hello Sir
I want to invest 15000 per month for long period that is over 10 years. Please suggest me in how many funds i should invest & what would be the ideal funds for me.
Abhishek-One large cap and another small and mid cap from above list. If you don’t have separate debt portfolio, then use equity oriented balanced fund.
I am new to the investment market, I plan to start with 4000 per month for a year
What would you suggest is best plan for me?
Not sure if below plans are suitable for me if not please suggest
Franklin indian prima lus fund (g)
HDFC midcap opp fund (g)
HDFC balanced finds (g)
Regards,
Raj
Raj-No equity for a year of time horizon.
Hi Sir,
I am 24 yrs old and am new to Mutual fund investment.
I am planning to invest about 10K per month through SIP tool.
My timeline is for 3-4 years.
I had narrowed down to the below mutual fund–
1.)Tata Balanced Fund or HDFC Balanced Fund(5K/month)
2.)UTI Equity Fund or ICICI Pru Focused Bluechip Equity Fund(5K/month)
Let me know if I need to improve upon the above selections.
Thanks.
Jerald-No equity for timeline of 3-4 years.
Hi Sir,
Thank you for your valuable input.
Please let me know if I should invest the entire 10K per month in above mentioned Balanced Fund, or which funds should I invest given the timeline of 3-4 years.
Looking forward.
Thanks.
Jerald-Even balanced fund also have equity exposure. Hence, no equity investment.
Hello Sir,
Could you please suggest me the best term insurance plan for 25 Lacs?
Thank You!
Jay-You can check with LIC, HDFC, ICICI, SBI, Bajaj or Kotak.
Thank You sir!
Can i go ahead with Max life?
Jay-Yes go ahead.
Dear Mr.Basu,
I have the following SIP’s in my portfolio. All SIP i started during last six months.
SBI Blue Chip Fund Growth – 2000
Franklin high growth companies – 2000
SBI Pharma Fund – 5000
Reliance Pharma Fund – 5000
ICICI Prudential Tech Fund – 3000
Franklin Build india Infrastructure fund – 3000
Can you please suggest any modifications is required.
Thanks
Madhan
Madhan-Why so may sector funds and that too in same sectors? I don’t think it is required. If at all you are fond of sector funds and understand the risk, then retain one sector fund. I am not fond of sector funds, but diversified funds.
Dear basavaraj,
I am new to MF and my age is 29yrs, from last 8 months i am investing in the MF as below and wanting to increase my portfolio about another 5k SIP for month. Please advice some good funds.
– HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth Option – 2000/- SIP
– SBI Blue ChipFund(G)- 2500/- SIP
– Franklin Highgrowth Com(G) – 1000/- SIP
– Franklin Smaller Companies Fund – 1500/- SIP
Currently i have below funds in mind.
1. Birla MNC Fund
2. UTI MID Cap fund
Please let me know if any allocation needs to be change in my fund portfolio.
Chandrahasa-Continue the same funds. No need of adding new funds for each of your fresh funds. Try to avoid sector funds. I know they are eye catching with high returns. But risk is also there.
Dear Basu,
My Current Investment is as below from Sep-2014 for per month basis
——————————————–
UTI Opportunity Fund-Growth – 4k
ICICI Pru Value Discovery-Growth – 4k
HDFC Balanced Fund-Growth-3k
Now I am planning to remove ” UTI Opportunity Fund-Growth” Due to its Negative returns for past one year.
Could you suggest which new Fund , i should opt for ?
Thanks for your support
Ashish-My suggestion is to continue. In what way you arrived at the decision that UTI fund not performing well? If the overall market is in negative mood then how can the fund perform and provide you positive returns? Stay invested and look for long term growth rather than short term.
Hi Basu,
What is SIP Plus in detail? It seems SIP Plus offers free Insurance coverage if we invest for long term. Is there any extra charges apart from monthly SIP?
Which one is best – conventional SIP or SIP Plus?
I am a new investor and planning to invest in “ICICI Pru Focussed Bluechip Equity” for more than 10 years. Please advise whether to go with SIP Plus?
Poorna-If any such SIP provides you insurance, then stay away. Instead buy separate term insurance for life risk.
HI Basu,
I already had an insurance for life risk.
May I know the reason why you are saying to keep away from SIP which provides Insurance?
I had contacted the ICICI’s AMC regarding“ICICI Pru Focussed Bluechip Equity fund with SIP Plus”. They advised me SIP Plus is same as normal SIP but has an additional insurance coverage(which is free).
I.e the investment and returns are same like you do with normal SIP, but additionally you get free Insurance coverage. (provided you invest for long term)
Please clarify if I was wrongly informed or I understood wrong.
Poorna-How much is the coverage? Is it a minimum of 15-20 times of your yearly income? If so then forget about having any such insurance products. Second thing, let us say you started with ICICI and also got life insurance coverage. After few years, if fund is not performing well then will you come out of it or for insurance sake you continue? No bondage, just be free your money from any such gimmicks.
When I say not combine Insurance with Investment, you check the products which offers these two. You found that they lure return and small amount of insurance. Which actually risk the buyers by having lower insurance. Instead when you buy the insurance as a pure product, then you buy it at fullest at affordable price. Also, such products will come with illiquidity.
Dear Sir,
Pls have a look on my portfolio.
I have more 5000 like to invest, pls guide me.
6500 ICICI Prudential Focused Bluechip EquityFund – Regular Plan
4000 HDFC TOP 200
3000 HDFC Mid-Cap Opportunities Fund
3000 HDFC BALANCED FUND
2000 ICICI Prudential Banking and Financial Services Fund – Regular Plan
1500 SBI Pharma Fund
Regards, Arun
Arun-Retain ICICI Bluechip, HDFC Mid Cap and Balanced. Invest in sector funds at your own risk. This recommendation is purely looking at long-term equity investment.
Hi Basavaraj,
Thanks for such an useful article and information.
I am going to start my mutual fund portfolio and here are my selected fund.
My time period is 10+ years and would prefer to have a conservative portfolio and expecting annual 15% of return.
– ICICI Pru Focused Bluechip equity (20% allocation)
– HDFC Balanced (20% allocation)
– HDFC Midcap Opportunities (20% allocation)
– ICICI Prudential Value Discovery Fund (G) (20% allocation)
– DSP BlackRock Micro Fund (20% allocation)
And I would like to see your thoughts on the selection of funds.
Thanks in advance,
Sanjay
Sanjay-Last two funds are not required.
Thanks Basavaraj,
I am trying to make a little aggressive to conservative portfolio, hence trying to put around 30% in small and midcap
Here is the revised list:
================
1) Franklin India Prima Plus (Large Cap to Mid Cap) – Allocation 40%
2) HDFC Balanced Balanced – Allocation 30%
3) HDFC Midcap (Mid Cap) – 15%
4) Canara Robeco Emerging Equity (Small Cap) – Allocation 15%
My thoughts on this list is:
================
– The first 3 first I have taken from your recommendation in the article
– Canara Robeco Emerging, I have seen very good ratings and its return records are very impressive.
And the good part in my view is, it does not look as risky as DSP Black Rock micro fund.
Because this fund has some amount of exposure in large and midcap too.
http://fundpicker.thefundoo.com/FundCard/684/Canara-Rob-Emerging-Equity-Fund-G
Please let me know if you think some correction is required in exposure.
Thanks in advance,
Sanjay
Sanjay-But overall portfolio is more towards small and mid cap. Think and decide. I no longer go beyond 20% to 30% in small and mid cap for long term goals.
Thanks Basawaraj again for the correction,
Here is the list with allocation change.
==========================
1) Franklin India Prima Plus (Large Cap to Mid Cap) – Allocation 50%
2) HDFC Balanced Balanced – Allocation 30%
3) HDFC Midcap (Mid Cap) – 10%
4) Canara Robeco Emerging Equity (Small Cap) – Allocation 10%
The only thing is I have not included any pure large cap fund like ICICI Bluechip or Franklin Bluechi. And to substitute that I increased the allocation to “Franklin India Prima Plus” to 50%, which is a large/mid cap fund.
Somehow I like “Franklin India Prima Plus” fund.
Do you see a reasonable balance now?
Thanks,
Sanjay
Sanjay-But you are allocating to mid cap in HDFC as well as in Franklin. Have you checked the overlap of these investments? I feel your overall portfolio more inclined to small and mid cap. I am still repeating it. Check the overlap.
Thanks for quick response,
The last help, if I have to remove the first fund “Franklin India Prima Plus”, which one I can add as pure large cap.
1) Large Cap – yet to decide ? – Allocation 40%
2) HDFC Balanced Balanced – Allocation 30%
3) HDFC Midcap (Mid Cap) – 20%
4) Canara Robeco Emerging Equity (Small Cap) – Allocation 10%
Sanjay
Sanjay-You can chose the one from above list. But check the overlap between HDFC Mid Cap and Canara Robeco. Chose one if the overlap % is more than 40% or so.
Basawaraj,
Can you please help me understand to measure overlap?
You mean choose one fund from HDFC Midcap and Canara Robeco Emerging Equity, if their 40% or more portfolio companies are same?
If thats the way to measure, then both these funds has around 10 companies are common out of around 50.
Is it a wise decision to make 30% allocation in total in both these funds thinking to make small/mid cap investment diversified?
Sanjay
Sanjay-Let us say you are investing Rs.100 in HDFC and another Rs.100 in Canara, but underlying result is that your total Rs.100 (50% of total investment) is in same stocks or sectors. What purpose it serve to hold two funds. Hence, retain one fund. This is what I am point to say. In my view retain HDFC.
Dear Basu,
The time frame is about 10 years. How can I invest in SIP .Is there a online facility to start a SIP. What Documents are required for it?
Saurabh-Chose a equity oriented balanced from above list and start ivnesting. If you don’t the basics then go with an adivsers like me. Otherwise opt for DIRECT funds.
Hi Sir
My age is 28 and monthly income is 50k.
I am new to MF investing and planning to buy two plans;
A Short term- return oriented-medium risk plan and a Growth- Decent returns-Less riskier plan
After some research I have finalized on two plans;
1. Axis Long term equity- Direct
2. Tata Balanced Funds
I can invest upto 2-3k in each of the above plans in SIP.
Are the above two good plans or you have anything better in mind?
Since I am a novice, should I go for an advisor or buying directly AMCs would be okay?
Thanks & regards,
Pugulu
Pugulu-You have not mentioned your timeframe. But if you have long-term perspective, then go ahead. If you are new then I suggest to start with advisers like ME. Once you are comfort, then switch to DIRECT.
Sir…
Good Day..!
I’m a new investor, Just started SIP’s from Last month.
1. HDFC TOP 200 FUND (G)
2. SBI BALANCED FUND (G)
these two are the funds of my choice.
Relating to your Top 10 MF’s, HDFC TOP 200 you stayed away because of Higher standard deviation. Was it wrong choice of mine to invest in HDFC Top 200 ? Shall I Switch out from it ?
then would you tell me about SBI Balanced Fund ? it posses good ratings that’s why I opted .
my time frame is 3 to 5 years.
pls advice sir
Abhijit-Currently HDFC may be under performing. But I still believe in this fund. You can continue. SBI is currently doing good. You can continue both. But 3-5 years is too less for equity investment. Invest at your risk.
Thanks for the reply Sir…
Could you suggest
Suitable funds for the time frame 3-5 years
Thanks
Abijith
Abhijit-They listed in my earlier post “10 best short term investment options in India“.
Many thanks..
Sir..
I’m Little confused to choose a Mid-Small Cap Fund to my Mutual Fund, Finally I ended up selecting
1. FRANKLIN INDIA SMALLER COMPANIES FUND(G)
2. ICICI PRUDENTIAL VALUE VALUE DISCOVERY FUND(G)
3.CAN ROB EMERGING EQUITY FUND (G)
Can you Choose the best among these 3 for a time frame of 7+ years
Thanks in adavnce.
Abijith
Abhijit-Go with 1st or 2nd.
Dear Basu,
I am 41 years ols & I am new to Mutual Fund Investments. I want to invest Rs 5000 per month in Diversified Equity Mutual Fund through SIP. Could u pls select any two best SIPs and how to invest it
Regards
Saurabh Bakshi
Saurabh-Your timeframe?
HI,
I am new to Mutual funds. After doing some R&D, I am thinking of starting with a basic investment of 1000rs for atleast 15 years through SIP.
Choosing “ICICI Prudential Focused Bluechip Equity Fund” is a good option. Please Advise.
Also, suggest me with suitable Plan (Regular or Direct) and options (Growth & Dividend) for a beginner like me.
Madhu-Go ahead with your decision. If you feel that you can manage all things on your own then go for Direct, otherwise regular plans. Growth is best for long term wealth creation.
Thank you for your valuable advise.
It seems the Direct plan needs lots of market awareness and knowledge in managing thinks on own. And this might be difficult for a newbie. So, I would choose Regular Plan.
Query 1) In Regular plan, investor just pays his monthly SIP amount and need not worry about the fund managing part. Right?
Apart from above, I am also thinking of Investing Lump Sum of (~2 Lac) and from that do STP to another fund.
Since I am already planning with Rs 1000/- SIP to “ICICI Prudential Focused Bluechip Equity Fund-Regular-Growth”.
Query 2) Could you please suggest me the Best funds(Suggest Name) to invest 2Lac and transfer (STP) to other Fund(Suggest Name). Also advise the STP amount to be chosen if I plan for 10yrs.
Thanking you in advance.
Madhu-1) Even in DIRECT plans you are not managing the fund but there is someone who manage it, called fund manager. Why STP? If your time frame is long term then I insist one-time lump sum investment.
2) Use the same ICICI fund for lump sum.
Thank you once again.
I am confused, in your previous reply you said that for DIRECT plan we need to manage on our own.
I understand there will be a Fund Manager for each MF. In that case, what is the portion of Managing required from our side in Direct Plan? And how it is different from Regular Plan?
Sir, I am new to SIP. I want to invest one SIP for 10+ years and One for 5-7 Years. Both of Rs. 1000/-.
Please Suggest me in which funds to invest.(Name of the fund would be better).
Avdesh-May I know why that separate period?
Sir first one is for long term wealth creation and the reason for second one is that i do not want for long time.
Like i said Sir i am new to this . Please suggest what would be better for me.
Hello sir,
I am currently investing in sip in the below funds
birla sl 100
icici pru focussed blue chip
hdfc midcap oppurtunities
Mirae Asset India Opportunities Fund
franklin India high growth cos fund.
Should i continue investing in these . or should i discontinue any of these.
Thanking you in advance
Regards,
Shankr
Shankar-How you selected these funds and what is the time frame of your investment?
Hello sir,
Thanks for your prompt reply. Timeframe is 8+ years atleast. These funds were recommended in FI website. Still my main savings is through FD’s and RD’s in sbi. But they give only 7.75 % yearly. currently 75 % of savings is invested in rd’s and fd’s and 25 % in mf.
Also I have LIC home loan at fixed rate of 10.75 %. I already paid 4 years and in a dilemma if to pay off the pending 19L by next year end or just let it go as it is. My emi there is like 30k per month , its fetching rent 14k currently. I am hesitant to repay the whole amount as if i need a new loan will be a big process, so I prefer to keep the money to have mental peace to have solid cash at disposal and let the loan run, helps with the income tax too. Is it a wise decission ?
I am hoping that mf will give atleast the interest rate which I am paying for housing loan.
Thanking you in advance,
Regards
Shankar-If your time horizon is around 8 years then stick to one large cap and another equity oriented balanced fund.
Dear Sir,
I have a following SIP (growth option) portfolio:
1) ICICI FOCUSED BLUECHIP FUND : 1000/-
2) ICICI VALUE DISCOVERY FUND – 1000/-
3) HDFC BALANCE FUND: 1000/-
4) HDFC CHILD GIFT : 1000/-
5) BIRLA SUN LIFE FRONTLINE FUND: 1000/-
6) RELIANCE TAX SAVER : 2000/-
7) RELIANCE RETIREMENT WEALTH CREATION : 1000/-
Are the above funds good for wealth creation over 20 year time…
Kamlesh-Good or bad, but these many funds are not required at first place.
Hello Sir,
Really appreciate your work n Thank you.
Iam planning to start SIP from this month. I can go with 2500Rs/Mon. Up to 15yrs. Plz suggest 3 o 4 best performing funds along wit % of investment..
Mohan-Not many funds, one large cap and a small/mid cap funds are enough. If you need debt exposure then select a equity oriented debt fund.
Thank you Sir. Sir I have selected 3 funds for 15years.
1. ICICI BLUE-CHIP-750Rs.
2. HDFC mid cap opp.(G)-750Rs.
3.HDFC Balanced (G)-1000Rs.
K na Sir?? Please tel me the procedure to start sip offline o online
Mohan-Go ahead. Opt for DIRECT funds if you know how to manage all things on your own. Otherwise go with and adviser (online or offline) like me.
Sir,
I have a following SIP portfolio: 1) ICICI FOCUSED BLUECHIP FUND : 1500 RS 2) ICICI VALUE DISCOVERY FUND – 1000 RS. 3) HDFC BALANCE FUND: 1500 RS. I want to invest another SIP of 1000 Rs from any of below fund so there is no overlapping with my existing fund
Pl. advice which fund to select and suggest one fund so no overlapping
1) Franklin india hign growth
2)SBI magnum multiplier
3)UTI MNC Fund
4) Reliance equity opp fund
5) franklin india prima plus
Your advice shall be highly appriciated.
Rgds,
Alpesh
Alpesh-In my view, invest fresh investment in same funds. If your goal is long term like 10+ years then infuse into ICICI Discovery otherwise either in ICICI Bluechip or HDFC Balanced Fund.
Thanks Sir,
As per advise, Pl. correct me if wrong
1) I have not to take fresh SIP ( from above 5 MF) and continue existing
2) What is fresh investment in same fund means top up or else
3) Invest in Value discovery for long term +10 year
Rgs,
Alpesh patel
Alpesh-Right understanding.
I am currently investing in mutual funds as follows:(SIP mode)
HDFC Balanced (G)- Rs 4000 per month
HDFC Midcap Opportunities Fund (G) – Rs 3000 per month
ICICI Pru focussed bluechip fund(G) – Rs 3000 per month
Are the above funds good for wealth creation over 5 year time horizon(esp ICICI Pru focussed bluechip fund)??
Suggest more funds as i have some more income to spare for mutual fund investments!
Raj-You can continue the same funds and no more funds required.
Sir
I will be retiring in year 2022. i want to invest 100000/- in mutual funds as stated by you above. but what should be the ratio of investment between laarge/midcap /small. pl reply
Akhila-Your goal is just 7 years away. Hence, I suggest equity oriented balanced fund rather any large cap or small and mid cap.
Hi Basu
I m planning to invest 4000 rs for 15 years for my Daughters higher education plz guide me to any 2 funds which will give me good returns in futue.
Hope your Suggestions will be usefull.
Thanks Regards
Imran-One large cap and another small and mid cap from above list.
if i go with hdfc top 200 for large cap & hdfc midcap opp fund for mid & small cap fund.
what u think this two fund is will be good .
Imran-Go ahead.
Hi Basu
Whats u think abt Sbi Pharma Fund.
It has given some mouth watering returns in past five years.
Thanks & Regards
Imran-MOUTH WATERING RETURN always comes with MOUTH WATERING RISK also. I am not fond of any sector funds.
Hi Sir,
My current investment in mutual fund is given below:
JP Morgan Small & Mid Cap – Rs. 2500
I am currently 32 and started this investment last month . I hope to continue for more than 15 years .
Wealth creation is my prime objective.
Is this funds fine or do I need to change anything. and what will be the expected return %.Please suggest.
Thanks,
Malay-How you selecting this fund and with what expectation you started this fund?
Sir,
I want to know which mid cap fund is better between ICICI pru value discovery fund or hdfc mid cap opportunities fund. I have already ICICI prudential focused blue-chip equity fund and hdfc balance fund. My time horizon is 17 year’s
Anupam-In my view both are good. Choose any one.
Hi Basu, First time starting investment in Mutual funds. Planning to invest 5000 Rs for long term 15 years. Kindly choose good funds.
Param-Chose one large cap, one small and mid cap and a balanced fund from above list.
Sir i have no idea about investment and know nothing about funds but i want to invest 1.5 lac rupees for 5-10 year please suggest me a good plan for good returns and safe investment
Thanks
Pankaj-Is it for 5 years or 10 years??
Hi Sir,
Thank you for the valuable feedback.
Request you to please help me select funds for period of 5 years.
Neha-Use short term debt funds or arbitrage funds.
Hi Sir,
I want to start my financial planning now as now my home & car loan are paid.I want to invest 2 lacs per annum in MFs using SIP.Please suggest from above listed funds which one I should take.My purpose is to make corpus in 10 to 15 years for my 3 year old kid for his higher education.I have already invested in real state and PPF/FD’s etc and now want to earn/gain higher returns using MF’s.
Thanks.
Randhir-Select one large cap, small/mid-cap and another balanced fund.
Thanks a lot for your reply and help.
Sir please suggest what should be the money distribution in large cap, small/mid-cap and another balanced fund also what should be the duration of investment for each?Do I need to SIP in all these funds for continuous 10 to 15 years?
If I continue for suppose 15 years in these funds with annual 2 lacs investment ,what range of percentage returns I should expect?
Thanks in advance.
Randhir-Keep around 30% in large cap, 30% in small and mid cap and 40% in balanced fund. Yes, keep SIPs for 10-15 years. Ideal expectation from equity investment for long term will be around 10% to 12%. If you get anything more than that then think that it is a bonus 🙂
Thanks for explanation sir.
Any tip for retirement plan sir.
Randhir-Start early…invest as much as possible…be within your limit.
Sir,
I am investing 5000 PM for UTI equity, 5000 for Franklin small companies and 5000 for HDFC mid cap fund. Now I wanted to add 5000 PM each for ICICI export & other services and UTI MNC fund. My time horizon is minimum 12 year (kids’ education).
I have checked many sites e.g. Money control, Value research etc. and different tools for return calculator.
In short and medium term e.g. 1 year, 2 year, 3 year, 5 year and 7 year these two fund(ICICI export & UTI MNC) has given very good return and always in top 10. Also these two funds are classified as diversified fund in Money control and consistent Rank 1.
Can you please suggest if I can invest in these two funds?
Thanks & regards
Vivek
Vivek-Both the funds which you named are sector funds. They are risky than regular diversified funds. Is there any guarantee that the fund performed GOOD will be GOOD in future too? Do remember that high return will come with high risk also. Suppose after 2-3 months the same rating agencies downgrade these two funds, then will you change your funds? Never follow these rating agencies. Stick to basics of diversification and long term investment.
Hi,
I invested 4000 in ICICI midcap and 3000 in hdfc balanced fund through SIP.
I want to invest 4000 more.
Please suggest one/two good fund. So that good portfolio will create.
Time horizon is 7-10 years
Can invest 2000 sip in icici pru export and other services fund.is it good fund in multicap?
Amit-First of all, I am not fond of sector funds. Second, without knowing your timeframe and purpose, it is hard for me to guide.
Hi,
I invested 4000 in ICICI midcap and 3000 in hdfc balanced fund through SIP.
I want to invest 4000 more.
Please suggest one/two good fund. So that good portfolio will create.
Time horizon is 7-10 years
Amit-Include large cap fund from above list.
Should i select diversified fund or large cap fund. It seems diversified fund have more return. Pls suggest.
Amit-Can you justify your point that diversified fund have more return over large cap? Also, let me know what is meaning of diversified fund according to you.
Sir, i don’t have much knowledge about it. I am saying based upon internet knowledge only.i seen in few websites like VRO,moneycontrol they are showing diversified fund return range 25-35%.
As per my understanding diversified fund investment in all multicap,midcap and smallcap.
Pls suggest which fund i need to select.
Amit-Do remember that you have to select funds based on time frame of your investment. If your time horizon is around medium term (5+ to 10 Years) then I don’t think you have to include small or mid cap funds. At the same time, never neglect the large cap funds and the debt portion of your portfolio. Hence, considering a time frame, chose funds which suites to you. When you say diversified, they also be called as Multi Cap Funds.
Sir,
Thanks. My time horizon is 7-10 years. And i have one balanced fund and one midcap fund. Should i take one largecap fund or large + multi both to make good portfolio.
Amit-Add one large cap.
Sir can you tell me which mutual fund gives more revenue if i hold 5 years, pls help me in this
Prasad-If you are pointing towards equity, then my answer is NONE. Because time is short for you and both MORE REVENUE or MORE LOSS can happen.
Hi Sir,
My current investment in mutual fund is given below:
Kotak Select Focus Fund – G Rs.500
HDFC Top 200 Fund – G Rs.1000
UTI Mnc Fund Growth Option- Rs.1000
ELSS AXIS Long Term Equity Fund – G Rs.1000
ELSS Birla Sun Life Tax Relief `96 –G Rs.1000
DSP BlackRock Micro Cap Fund – Regular Plan –Growth– Rs.1000
I am currently 31 and started this investment last week . As I am new , i have filled 5 years online but hope to continue for more than 15 years .
Wealth creation is my prime objective.
Are these funds fine or do I need to change anything. Please suggest.
Thanks,
Abhishek Chaturvedy
Abhishek-How you selected these funds and why two tax saving funds?
Hi, Liked your article. I am 27 years old from Hyderabad. I would like to invest a lumpsum amount of rs:500000 in MF and leave it for a long term for about 15-20 years.. what would you suggest.. I am a beginner in investments..
Please guide me.
Raghavendra-Select large cap, small and mid cap and a balanced fund and invest whole amount in one go (try to allocate around 40% to debt through a balanced fund).
Hello Sir,
I am 41 year old and wanted to invest 50000 PM in mutual fund via SIP. I am already having term, health insurance and no outstanding loans. I am having FD /Debt/PPF and PF of about 15 lakh.
My Goal is RS 20 lakh after 9 year for my son graduation, 50 lakhs after 13 year for higher education and then build corpus for retirement (age of 55).
I have selected below fund with goals.
1. LARGE CAP –ICICI focused blue chip – RS 7000 PM – For Graduation (continue after for higher education and retirement corpus)
2. Balance fund – HDFC Balanced fund – Rs 8000 PM – For Graduation(continue after for higher education and retirement corpus)
3. Franklin High growth companies – Rs 17000 PM – For higher education (continue after for retirement corpus)
4. HDFC mid cap –Rs 18000 PM for retirement.
Please advise me if the distribution of money and fund is correct.
Thanks & regards
Mahesh
Mahesh-Instead of separating each fund for each goal, I suggest to retain all funds (except retaining one fund in small-midcap category), you can invest. However, make sure to create a debt portion also.
Hello Sir,
Thanks for your advice.Do you mean that i should select any one of HDFC or Franklin .As per my understanding HDFC is small & Mid cap and Franklin high growth is multi cap.
So shall i select only HDFC fund ?? so that there will be three fund total , one each from Large, balance and small & Mid cap.
Sir, I am also very much confused about money distribution between these fund. I have check in tool for SIP return and based on that i have selected the amount.
Please suggest me best way to distribute 50000 per month among these fund keeping in mind my financial goal. This will be really very helpful to me.
Thanks & regards
Mahesh
Mahesh-I am not a fan of multi cap funds. Reason is, when you already own different cap funds then what is the need of multi cap? Also, they switch the caps too ofthen which may be hard to track. Hence, I said retain HDFC or Frnaklin (but more towards HDFC). Try to invest in such a way that you must also have debt allocation based on timeframe to equity:debt.
Sir, pls let me know what the below data mean. should i go for regular plan or direct and why ? is the concept same for all other MFs ? Found this in the investment document of SBI MF.
Actual expenses for the previous financial year
Scheme Name Regular Plan Direct Plan
————- ————- ———–
SBI IT Fund 2.64% 1.89%
SBI Pharma Fund 2.41% 1.41%
SBI FMCG Fund 2.50% 1.82%
SBI Contra Fund 2.09% 1.53%
thanks
Gourav-It is the expense ratio of each fund for regular and direct investment respectively. Yes, the concept is same for all MF.
Sir, I would like to invest 15000/- per month in SIP for 3 years. Kindly guide me in which funds i have
to invest.
Thanks.
Satyanarayan.
Satyanarayana-For 3 years tenure, I suggest to use Bank FDs or RDs rather than any equity or debt funds.
Sir
So the Mutual Funds are not suitable for 3 yrs investment ?
Ram-Yes, Debt Funds due to taxation and equity funds for timeframe you have in mind.
Hi Sir ,
I am new to MF’s.
I have selected the below funds for SIP. Need your valuable comments.
Birla sunlife mnc fund – 1k
Franklin high growth companies fund -2k
Canara robeco emerging equities fund -2k
The investment period will be minimum 5 years.
Thanks and regards,
Neha
Neha-Stay away from all funds you selecting. They are sector funds and more riskier than other diversified funds. Because you timeframe is just 5 years.
Hi Mr. Basu
I am planning to invest in mutual fund through SIP for long term wealth generation. I have selected below funds.
1. Reliance Equity opportunities fund (2000 P.M)
2. Hdfc Midcap opportunities fund (2000 P.M)
I can invest 2000 P.M in one more fund . But unable to select. Please suggest your opinion .
Harleen-If your time frame is more than 10 years or so then you can add such small and mid cap funds and also include one large cap from above list. No need to have the Reliance and HDFC fund together.
Hi Basu,looking at current mkt situation I want to buy banking sector fund..could u plz advice me will it be right decesion and funds also…many thanks
Kunal-There is no right or wrong time in equity investment, if your time horizon is LONG TERM.
Dear sir,
I am 37 Year old and willing to invest for long term (More than 10 Year).
I have started SIP(1000.00 Each) with following funds from last 1 year, can you pls suggest me the Good MF to invest more .
Currently I am investing Rs 4000.00 and want to increase my investment to 20000.00.
Should i continue with these fund to increase SIP amount or do i need to chose another fund. Kindly sugesst.
1. Birla Sun Life Infrastructure Fund,
2. ICICI Prudential Value Discovery Fund-RP-G
3. Reliance Small Cap Fund-G
4. DSP BlackRock Micro Cap Fund-Regular-G
Thanks,
Harish
Harish-Avoid sector funds (Birla), retain one small/mid-cap fund (ICICI) and include one large cap and a balanced fund from the above list.
correct me if i understand correctly
1. Need to stop “Birla Sun Life Infrastructure Fund”
2. and Keep continue with below funds as
– ICICI Prudential Value Discovery Fund-RP-G
– Reliance Small Cap Fund-G
– DSP BlackRock Micro Cap Fund-Regular-G
3. need to add two more funds as one large cap and a balanced fund from the above list.
if i am correct pls suggest me how to split money across these funds.
Thanks,
Harish
Harish-1) Correct. 2) Continue only ICICI. 3) Yes. Split equally (more towards balanced fund to get exposure of debt around 30% into debt is a must).
Hi,
I am new in MF, I want invest 5000 per month for 3 years.
Can you suggest me which am best plan for me?
I don’t know how it’s working. Please guide me also.
Thank you
Digu
Digu-No equity funds. But you can use short term debt funds or arbitrage funds.
Hello,
Thanks for your comment
suppose i increase my amount 3000 to 5000 for 5 years, then which company i can buy?
what is SIP and how it’s work?
Thank you
Regards,
Digu
Digu-You can’t change the funds only because you are investing MORE.
Thank you sirji,
i want to invest 5000/month for 10 years.
can you suggest me in which plan i invest?
in small or mid or large cap?
Regards,
Digu
Digu-Large cap.
Hi Basavaraj,
I am planning to invest Rs 1 Lac for minimum of 10 years time frame. Please suggest me with best Mutual Funds which yields descent returns after 10 years.
Also, suggest me the best Mutual Fund to SIP 2k per month for 10 years.
Poorna-For both, you can use one large cap and another equity oriented balanced fund from above list.
Hello Sir,
I want to invest Rs 50,000 in mutual funds and I m new to this kind of investment.I want to invest for 10yrs.I have shortlisted 3 funds kindly suggest n if there are better options for me plz let knw that.
I have also invested in PPF and FD .I m 30 yr old.
ICICI Prudential Balanced Fund (G)
SBI Blue Chip Fund (G)
SBI Magnum Midcap Fund (G)
Also let me knw at which ratio should I invest my money in these mutual funds.
Thank you..
Sminder-In my view switch to HDFC Balanced Fund, a pure large cap like ICICI or Franklin Bluechip and Franklin India Smaller Companies Fund in ratio of 60%, 30% and 30% respectively.
Thanks alot sir..
Dear Sir,
I have a surplus amount of Rs. 1 lakh that i have to return after 1 year.
Will it be advisable to invest this amount for one year in some open ended funds.
In this regard i had selected certain funds based on my knowledge, however your advice is requested.
Kindly let me know which funds should i invest / not invest from the given list. Please suggest some funds that can give good returns over short period of 1 year.
1. Franklin India Smaller Companies-G
2. HDFC Mid-Cap Opportunities- G
3. Birla Sun Life MNC Fund – Direct Plan
4. irae Asset Emerging Bluechip Fund – Regular Plan
5. Canara Robeco Emerging Equities Fund – Regular Plan
6. DSP BlackRock Micro Cap Fund – Regular Plan
7. Franklin Build India Fund(G)
thanks
SWETA PANDITA
Sweta-Strictly in Bank FDs ONLY.
Hello Sir,
Please advise in selection of 3 top equity funds for a duration between 5 to 10 years with a monthly investment of Rs.2000/- in each fund.I have studied an experts advise about the following schemes.
1.BIRLA SUNLIFE MNC FUND
2.FRANKLIN INDIA HIGH GROWTH COMPANIES FUND
3.ICICI PRUDENTIAL FOCUSSED BLUE CHIP FUND
Please advise and suggest the appropriate
Sudhakar-Your time frame is medium term. Hence, I suggest ICICI fund or a equity oriented balanced fund (which is listed above).
Dear Basu ,
I am 27 yrs old and new to new to MF fund .
It am planning to invest for around 25-30 years from now starting with small amounts say 4k-5K monthly or may be more if required .
My target is 3 Cr .
I have been trying to understand the basics of MF . But more people and sites is more confusion . It would not be out place to mention that i like your simple and straight answers which could give a fair idea referring the few above posts .Could you pl suggest the way forward ?
Thanks in advance .
Abhishek
Abhishek-Nothing to worry. Start slowly with one large cap, one small/midcap and another balanced fund. This much is enough. Initially invest through an adviser like me and once you feel the comfort then opt for DIRECT.
Basu – Thank for your response ….I have started with these two and looking to go for one small cap / mid cap as suggested.
1) SBI Blue chip fund – 1 k ( 5 years , hope that could be extended when ever required )
2) Icici Pru balanced fund – 2 k ( No time frame have been put by me ).
And looking forward to go with HDFC Small/Mid cap fund – 2 k ( once the KYC is updated with the above two funds ) . Hope it is in order . Would still require your advise .
Thank you ..
Abhishek Sinha
Abhishek-If your time frame is not set then don’t invest in equity. It must be minimum of more than 5 years or so.
Basu – You are right …. I visited ICICI and changed the term to more than 5 years . One is in my mind is that how much period should one hold while investing in small/ mid cap , large and balanced fund in general . Can i invest in these three funds for 25 years .
1) SBI Blue chip fund – 1 k
2) ICICI Pru balanced fund – 2 k
And looking forward to go with HDFC Small/Mid cap fund – 2 k
And what is the ratio in which one should distribute there investments in these three cap funds .
Awaiting your advise .
Thanks in advance .
Abhishek
Abhishek-Always keep in mind that long term is BEST for equity. Depending upon your time frame, I suggest to split among three funds. Keep debt portion through balanced fund.
Hello Sir,
I am Investing in below funds through SIP every month Rs.2k.
1)ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth
2)ICICI Prudential Value Discovery Fund – Regular Plan – Growth
ELSS:
ICICI Tax Plan(Lum Sum)
Now I have some 20k of surplus amount which i am planning to invest in either MF or FD or PPF.
Please suggest me.
Jay-Funds are good and you can continue. You have not mentioned the timeframe of fresh investment. So it is hard for me to suggest. However, if it is for long term, then continue in the same funds.
Basu Sir,
Thanks a lot for your response.
As per your suggestion I am investing with IDFC premium Rs. 2000/month.
How is SBI Pharma, I want to start SIP of Rs. 1500/month for next 10 years, please suggest.?
Also recently I have invested Rs. 50000 one time in UTI MNC, Rs.30000 in ICICI technology fund and Rs. 15000 in ICICI diversified fund, Should I continue or came out of lump sum investment.?
Looking forward for your best advice.
Thanks in advance.
Regards.
Jeet
I am new in the Mutual Fund market and looking to start investment. I have selected 3 Mutual funds for starting investment. I want to start in SIP mode with 3000 each i.e 9000 monthly overall. I am targeting for next 15 years. I am 32 years old. Needs suggestion on my portfolio selection. Please suggest with options and better plans.
–Large Cap
SBI Blue Chip Fund (G)
http://www.moneycontrol.com/mutual-funds/nav/sbi-blue-chip-fund/sip-calculator-MSB079.html
–Mid/Small Cap
JPMorgan India Mid and Small Cap Fund (G)
http://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-mid-and-small-cap-fund/sip-calculator-MJP007.html
–ELSS
Axis Long Term Equity Fund (G)
http://www.moneycontrol.com/mutual-funds/nav/axis-long-term-equity-fund/MAA011
Ashish-How you selected these funds? Axis Long Term Equity Fund is tax saving fund. Do you know that?
Yes. I know that..
I am new user. just searched best funds and listed to know that. That is the reason why I am asking here. I need your help for planning as mentioned.
Hello Sir,
Planning to invest in 2 or 3 MFs(SIP 5000 pm, period of 7-8 years) from the below list(all are growth).
Please suggest if the list below is good and which one should i chose, not sure about anything in this recently chaotic market conditions.
ICICI Focussed Bluechip
SBI BlueChip
Canara Robeco Emerging Equities
SBI Small and Mid Cap
UTI Midcap
IDFC Premier Equity
ICICI Value Discovery
Thank you for this helpful blog.
Gourav-ICICI Bluechip and include HDFC Balanced Fund.
Thank you Sir. But ICICI Bluechip and HDFC Balanced show an overlap of 36%. Is that fine ?
Also what fund would you suggest for a lump-sum (~50,000) investment for around 5 years.
Gourav-36% is fine. I avoid lump sum into equity if time horizon is 5 years.
should the time frame be more for a lump-sum ?
Gourav-You have to enter equity market only in case your timeframe is more than 5 years or so.
Hi sir,
I am investing in mutual funds from last 6 months. I am 26 years old and time horizon would be around 20+ years
Here are my portfolio details:
1. Franklin india prima plus fund (10000 INR)
2. Franklin india high growth fund (12500 INR)
3. Franklin india smaller fund (15000 INR)
4. HDFC mid cap oppurtunities fund (12500 INR)
5. Birla MNC fund (5000 INR)
Can you please review it and should i continue with these funds?. And i am also considering to remove Franklin prima plus fund and add that amount to Franklin high growth fund. Is it nice move or should i stick with current allocation?
Your response will be highly appreciated.
Thanks
Vishal-Why all this small/mid-cap funds or sector funds? I retain only one small/mid cap fund. Check the overlap of your investment.
Funds 1 and 2 are large caps funds. And i have taken Birla MNC fund just for high return.
Should i coutinue with both funds 1 and 2 or consider only second one?
Vishal-1st Fund is not purely large cap it is large and mid cap. Second fund is multi cap and not a large cap. Please go through the underlying portfolio and check the overlapping of it. What about small/mid-cap funds? Why so many funds? High return of Birla MNC will come with high risk. Hence, understand about the risk return.
Hi Basu,I need to choose one mid & small cap fund.time horizon around 15 yr..very confused between hdfc mid cap,uti mid cap and icici value disc…plz guide.waiting for ur reply….thanks
Kunal-Both are good but slightly inclined towards ICICI.
Thanks ..I will choose icici value disc..
Hi Basu,I bought ICICI value discovery…Now looking at current mkt situation I want to buy banking sector fund..could u plz advice…many thanks
Kunal-I am not fond of sector funds. Hence, invest at your own risk.
Hi Basavaraj,
I have started my SIP 5 months ago, and below are the funds I’m currently investing in (time period of 5 years)
What are your views on below stated funds? Should I continue to invest?
motilal oswal most focused multicap 35 – 3000
motilal oswal most focused midcap 30 – 2000
hdfc midcap opportunities fund – 3000
sbi bluechip – 3000
Please let me know that should I also invest in Balanced fund, if yes, which funds do you suggest?
Thanks,
Roi
Roi-Seems risky for such a time period of 5 years. I avoid any small/midcap funds and also restrict my maximum equity exposure to 40% of overall investable amount. Rest 60% must be in debt. To be frank, if goal is exactly at 5 years from now then avoid equity.
Hi,
I and my wife would like to start SIP. Total planned SIP is 20000 per month. I am 35 years and have a kid. We want to invest for 7-8 years. Please suggest me the mutual funds plus how to buy.
Also i am bit confused on how to buy MF.I am in touch with ICICI PRUDENTIAL MUTUAL FUND. Can you advise on where to buy MF.
Thank you
-Veeresh
Veeresh-Select one large cap and one balanced fund from above list. You can invest directly by visiting respective mutual fund companies or through an adviser like ME.
Hi Basu,I need to choose one mid & small cap fund.time horizon around 15 yr..very confused between hdfc mid cap,uti mid cap and icici value disc…plz guide
Hi Basavaraj,
Hope you are fine 🙂
I am started my SIP investment( RS 6000 per month) from last month with following list of funds.I have planned it for long term(more than 15 years). Shall i follow with these funds or anything suggestions from your end.
TATA BALANCED FUND – REGULAR PLAN – GROWTH Balance Equity -Rs 1,000
Franklin India PRIMA PLUS GROWTH Equity Diversified – Rs 1000
ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND Reg plan- GROWTH Equity Diversified -Rs 1,500
ICICI PRUDENTIAL VALUE DISCOVERY FUND – REGULAR PLAN – GROWTH Equity Diversified – Rs 1000
SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH Equity Diversified -Rs 1,000
AXIS ASSET MANAGEMENT COMPANY LIMITED – Rs 500
And I have to plan to invest of 1Lakh for long term(10 to 15 years) can you suggest me some funds.
Regards.
Rea
Rea-Why you opted for two funds in large cap? You have not named the Axis Fund name. Rest of funds are good to invest and continue.
Hi Basavaraj,
Thanks for your reply.
I can change one Large cap fund to some other, can suggest me the fund to change and instead of that what fund i can choose. The name of the Axis fund is AXIS ASSET MANAGEMENT COMPANY LIMITED.
Could you suggest me some funds on lumpsum invest of 1Lakh for long term(10 to 15 years).
Regards,
Rea
Rea-I said retain only one large cap but not suggested to replace. There is no such fund with name of “AXIS ASSET MANAGEMENT COMPANY LIMITED”.
Sorry Basavaraj,
That is AXIS LONG TERM EQUITY FUND – GROWTH PLAN.
Regards,
Rea
Rea-It is ELSS (Tax Saving) Fund. If you need it for tax saving then continue.
Thanks Basavaraj,
May i know your suggestion about lumpsum(1L) for long term(15yrs).In my list
SBI Magnum Global Fund.
HDFC Balanced fund.
Regards,
Rea
Rea-HDFC Balance Fund.
Dear sir,
I am 25 and Just 8 months before I have started my Rs. 5000 SIP in Axis mutual fund long term growth (Equity), But now I want to stop that and want to invest Rs. 2000 in Axis long term growth. and for rest of the Rs.3000, I need your help to invest that money. I want to purchase mid cap, small cap and large cap fund to full fill my dreams of bunglow, car, children education and marriage.
Another question is whatever return we get after some years, is it a taxable or nontaxable?
I read one article in that mentioned that some of the Mutual fund company take charge of the maturity money.
Vishal-What prompted you to stop this Rs.5,000 investment to Rs.2,000? Equity investment more than a year is fully tax free. May I know the link which states that some MF Companies take charge on maturity? Please remember that there is no such maturity like LIC or FDs in MF.
hello,
I am thinking to invest in mutual fund. i am basically thinking to invest in some of the MF lumsum amount for 10+
Basically i can invest upto 50,000 per MF. (thinking to invest in 3 MF) kindly suggest which one should i go and how much should i invest lumsum amount and duration for the same.
I also need your expert advice on SIP. at the moment my portfolio is totally empty. kindly share some guidence which can be perfect for me. i can invest 2,000 per SIP per month. maximum 5 SIP .
I would be very thankful if you can provide me detail information. thank you.
Ajay-Funds are already listed for LONG-TERM EQUITY INVESTMENTS. How much and for how long depends on you but not to ME.
Hi Basavraj,
thanks for the reply. i cameto conclusion as follows. can you please have a look and provide your valueable thought on it. thank you.
SIP : 2,000 each monthly basis
1. Franklin India High Growth Companies Fund – Growth
2. FRANKLIN INDIA SMALLER COMPANIES FUND – GROWTH
3. Tata Balanced Fund – Growth
4. Reliance Equity Opportunities Fund – Growth
5. SBI Blue Chip Fund – Growth
Lumpsum : 50,000 each for 10 years.
1. HDFC Mid-Cap Opportunities Fund – Growth
2. ICICI Prudential Dynamic Plan – Growth
3. Axis Long Term Equity Fund – Growth
Ajay-Stay away from Reliance. For lump sum, where is debt portion? One large cap and one balanced fund is enough. No need of small/mid cap funds when you have time horizon of around 10 years ONLY.
Hi Basavraj,
thanks. can you please have a look again?
SIP : 2,000 each monthly basis
1. SBI Blue Chip Fund – Growth
2. JPMorgan India Mid and Small Cap Fund – Growth
3. ICICI value discovery Fund – Growth
4. Tata Balanced Fund – Growth
5. Franklin India High Growth Companies Fund – Growth
Lumpsum : 50,000 each for 10 years.
1. Birla Sun Life Top 100 Fund – Growth
2. BNP Paribas Flexi Debt – Regular Paln Growth
3. Axis Long Term Equity Fund – Growth
Ajay-I don’t know why you are adding each fund in your every comment. This time it is JPMorgan, Birla and BNP.
My Current MF Portfolio consist of :SIP of 1000 / month in following MF’S :
DSP BlackRock Equity Fund – Regular – Growth
DSP BlackRock Top 100 Equity Fund – Regular – Growth
HDFC Mid-Cap Opportunities Fund – Growth
HDFC Top 200 – Growth
ICICI Prudential Dynamic Plan – Growth
ICICI Prudential Taxplan – Growth
SBI Bluechip Fund – Growth
Kindly advise on my portfolio.
Sachin-Why so many funds?
Yes.Just had impulsive buying.
Could you suggest , which should i must retain and which i should think of existing.
Thanks in advance.
Sachin-SBI Bluechip, HDFC Midcap Opp, ICICI Tax Saver.
If I stop my SIP in MF before the tenure,is there any penalty they impose
Sachin-NO.
Dear Sir,
I am planning to invest 30000 per month at the following fund
1. Birla Sunlife frontline equity fund-G (Rs 5000)
2. franklin India High growth companies-G (Rs 5000)
3. ICICI value discovery Fund-G (Rs 5000)
4. Franklin India smaller companies Fund-G (Rs 5000)
5. Tata Balance fund-G (Rs 10000)
Kindly have a look and please suggest me how good is my portfolio, my goal is 1.5 crore in 15 years (expecting 12% pa). I know it is not good to keep 2 Mid/small cap fund but as what I have seen ICICI value discovery is more of diversified fund rather than mid/small cap. Is my current selection is good or do I need to keep only 1 large, 1 mid/small and 1 balance fund. If this is the case then which mid/cap fund should I select.
I will be very thankful if you can help me to make good portfolio.
Thanks & Regards,
Ali
Rustam-You are on right track. But as you pointed, chose one small/midcap fund. I am more inclined towards ICICI Pru Discovery.
Thank you so much for prompt reply. But, sir is it ok to include one Franklin India High growth fund along with 1 large, 1 small/mid cap and 1 balance fund.
If I am using 4 fund only (except franklin smaller companies fund). How should i distribute my 30000 as sip for the fund.
Many Thanks.
Rustam-You can use. If you don’t have any debt investment separately then make sure to allocate more funds towards balanced fund. Because for long term goals like 10+ years, ideally keep the portfolio to the maximum of 70:30 of equity:debt. Also, if the goal is 10+ years then incline more towards small/mid cap rather than large cap.
Hi Basu,
Very nice articles in your website. Thanks for providing useful info.
I started investing in MF in 2009 and currently I am investing in the below equity funds in SIP and I have planned to continue my investment for another 15 years. Please let me know if my current portfolio is good to continue or I should make any immediate modification.
HDFC Top 200 – Growth – Rs.2000
Franklin India Bluechip – Growth – Rs2500
HDFC Tax Saver – Growth – Rs.2500
ICICI Prudential Tax Plan – Growth – Rs.3000
Canara Robeco Equity Tax Saver – Growth – Rs.2500
Thanks,
Sanjay
Sanjay-Continue investing. But retaining one tax saving looks simple.
Dear sir,
Recently i have started a sip of Rs 2000 per month & the fund is Franklin India High Growth Companies fund (G) for 10 or more years of investment . Now i want to invest rs 4000 per month for long term. Pls Suggest me from below mentioned funds or any other fund of your choice
1. UTI Mid Cap Fund (G)
2. SBI Magnum Midcap Fund (G)
3. ICICI Prudential Value Discovery Fund (G)
4. UTI MNC Fund (G)
5. SBI Blue Chip Fund (G)
6. HDFC Balanced Fund (G)
Another question is that , is it mandatory to invest Rs 5000 to start a SIP initially, if not then what is the procedure to invest in SIP in direct mode ?
Susovan-Use large cap fund from above table and a HDFC Balanced Fund.
Hi Basu,
I just started my MF investment through SIP on following funds. Plan to invest for more than 10 years. Can I proceed with these funds or advice some other funds to start new SIP, Thanks.
Birla Sun life MNC fund Growth – Rs 3000
Franklin India Smaller companies – Rs 2000
Anand-I am not fan of sector funds. So I have negative view about Birla. You can continue Franklin.
Hi
I have a surplus of 3 Lacs. & I just found few choices based on my requirement
1 Axis Long term Equity fund (ELSS)
2 HDFC top 200 fund
3 SBI magnum/balanced fund.
note: I don’t use these funds for at least next 3 -4 yrs.
Can you please suggest which is best choice ??
& Is it good if put all the money in one of the above.
Narayana-Timeframe?
3 yrs
Narayana-No equity fund if time horizon is just 3 years.
Dear Basu
How are you doing ?? Well My name is Rohit Kaushal and to be honest I dont have much knowledge about the mutual funds at all but i really wanted to to invest very small amount to see how it goes so that i can analyze howz the market behaving and today i bought SIP for SBI I divided into two parts of SIP of SBI once SIP for SBI-Blue chip Regular and second one is SBI-Balance regular so what you think is it a good decision to invest in SBI as a beginner i dont want to invest big amount so i just tried it with luck….kindly advise please i really appreciate..Thanks
Rohit-Both are good and continue. But monitor them yearly once.
Hi Basavaraj,
Thanks for sharing your expertise with us, which is of great use to novices like me. I’ve been investing in the following funds and haven’t set any timeline as such. According to my wealth advisor these funds give good steady returns in the long run.
1. Reliance Mid & Small Cap fund – Growth plan
2. Reliance Equity Opportunities fund – Growth plan and
3. UTI Equity fund – Growth plan
My friends beg to differ and recommend that I invest in the funds that they’ve invested in and received good returns.
1. Canara Robeco
2. ICICI Prudential
3. DSP Blackrock
4. HDFC Top 200
5. Franklin India High Growth
6. Birla Frontline
7. Franklin India Small Cap and
8. Reliance Pharma
Appreciate your thoughts in this regard.
Oliver-Don’t heed both 🙂 Instead try to understand why your adviser or friends recommending these funds. Your adviser or friends risk taking ability is different than what you can take. Hence, first try to understand of for what purpose you want to invest, how long you want to invest and how much return expectation you have. Once you understood these things in better way then your half work completed. BLIND FOLLOWING IS MOST DANGEROUS.
Basavaraj, Fair point 🙂 I never tried that approach and will certainly try to gauge why either party is recommending these funds. Thank you for your advice.
I am risk averse and try not to invest in high risk funds and my plan is to stay invested for minimum 5 years. So as per my risk appetite, are the funds I’ve invested in any good or should I switch based your recommended funds in this article?
Appreciate your thoughts.
Oliver-If your time horizon is just around 5 years then chose a fund like equity oriented balanced fund (HDFC Balanced Fund). This keeps you safe by investing around 35% in Debt and remaining 65% in equity. A single fund is enough. Keep it simple…there are many ways to complicate but keeping simple is most important 🙂
Dear Basavaraj,
I have been reading about your blogs for quite some time now. I am totally new to SIPs and I have been investing in RDs so far. But now I need more returns and wish for very short term like 1 year or 2 year.
I want to invest 3000 for 1 or 2 years in a fund which gives me the highest return.. Shall I choose HDFC Mid cap Opportunity Fund (G) or HDFC Balanced Fund (G) or Reliance Equity Opp Fund or do you recommend any other fund. Since this is the first time for me so I am bit confused on where i can get the maximum return. Also let me know if 1 year is fine or should i go for 2 or 3 years.
Thanks a ton in advance. I look forward for your response.
Nilotple-First basic rule, no equity investment for goals of less than 5 years or so. Do remember that MORE RETURN will come with MORE RISK.
Dear Basavraj,
I am regular follower of your blog.
Presently I am subscribing to the following funds through SIP.
HDFC Top 200 Rs.1000
HDFC Equity Rs.1000
HDFC prudence Rs.1000
I find that all these schemes are not performing well in recent months.I am thinking of stopping SIPs of these funds and instead go for either HDFC balanced fund ( in place of HDFC prudence ) and Franklin high growth co. or SBI blue chip fund for the remaining 2 schemes.Or should I go for any other fund. I also wish to increase SIP amount to Rs. 5000.
Please give me ytour expert advice.
Sharad kumar
Sir,
I am new to mutual fund… I had invested in Canara Robecco emerging equities , Franklin india High Growth Companies and Birla Sun life MNC growth each 2k/ month….All are growth….
Is it a good choice??
Thanks
Sankaran
Nitya-When you already chosen funds and invested also then how can you be NEW?
Sir,
I absolutely have no clue about these funds… I jus invested in them coz of an agent…. Seeing the advise you have given to the others I wanted to get some insight on my investment and understant them….
I have jus invested them on a trial basis…
Nitya
Nitya-All are concentrated at risk funds. Include a Large Cap fund. Come out of sector fund (MNC).
Dear Basu
I am a big fan of your work.I learned a lot from you through your site and also from your replies in comment section. I have a doubt.I will be obliged if you kindly clarify it.
I started sip in 2012 by learning from site like yours. Now every year I see the top funds changing. So what should I do ? should I keep sipping in my old funds or invest in the new funds as suggested here?
Rick-Don’t panic. It is hard for even for me to be always invest in star rated funds. Keep calm, track the fund. If it is continuously underperforming the benchmark or below your expectation then only switch. Never run behind star rating. They tend to change frequently and investing based on that will ruin your finance.
Hi Basavaraj,
Thanks for the wonderful blog which helps us to select mutual funds.
I am planning to invest 30000 per month for long term 7+ years (probably 10+ years). Does following list look good. Please suggest :
UTI Equity Mutual Fund = 5000
ICICI PRu Focused Blue Chip Fund = 3000
HDFC Top 200 = 2000
Birla Sun Life MNC Fund = 3000
Franklin High Growth Cos (G) = 3000
Can Robeco Emerg-Equities = 4000
DSP-BR Micro Cap Fund = 4000
Franklin India Smaller Companies Fund = 2000
Tata Balanced Fund = 4000
Thanks,
Kiran
Kiran-Go with ICICI Bluechip (Rs.5,000), Franklin India Smaller Companies (Rs.5,000) and Tata Balanced (Rs.25,000). Reason is, I suggest to manage the balanced portfolio of around 30% to 40% in debt. This can be easily achievable through Tata Fund. Restrict a small portion into small/mid cap as the risk is more and your time frame is less than 10 years. Rest keep in large cap fund like ICICI. These three are enough. Don’t expose yourself to sector funds. If you want to add then go ahead with multi-cap fund like Franklin (which you suggested).
Sir,
Question no 1: I have a following SIP portfolio: 1) ICICI FOCUSED BLUECHIP FUND : 1500 RS 2) ICICI VALUE DISCOVERY FUND – 1000 RS. 3) HDFC BALANCE FUND: 1500 RS. I want to invest another SIP of 2000 Rs Pl. suggest fund.
Question 2: I want to invest one lacs Rs for 1 year period . pl suggest best option
Rgds,
Alpesh Patel
Alpesh-1) Use the same funds. 2) Use Bank FDs.
Thanks a lot for your advice.
I want to know that can I purchase some unit as lumpsum in same mutual fund when market is fall. how it is advisable.
Also let me know which option are good
1) Increse sip
2) Lumpsum investment in same mutual fund when market is down.
Sincerly,
Alpesh-Let me know when the market DOWN. Because as of now, no one on this earth have yardstick which say today market down or up. Don’t try to time the market.
Yes, It is right sir, Your advice is very helpful us. I have some money to invest, thats why I want your advice on lumpsum investment in same mutual fund ( long term ) or to increase sip.
Regards,
Alpesh-If your time horizon is long term then it does not matter. Invest in lump sum.
Thanks a lot, Pl. advice on STP as one my friend suggested. Pl. suggest best debt fund for lumpsume and than after stp to equity fund. what is time horizon for debt fund.
Regards,
Alpesh-There is no such time horizon for debt fund. You can use the liquid fund of the same fund house in which you want to invest in equity.
Hi Basavaraj,
I read your article “Top 10 Best Mutual Funds to invest in India for 2015” its very helpful Thanks!
I am very new to MF investment. I have two queries regarding my investment. Could you please help to clarify.
1)
I am currently not staying in India. I wanted to open my folio but CAMS customer care says I have to pay my first payment through Physical cheque only. Is there any other way where I can buy MF through online payment only ?
2)
I am planning to invest 5k (monthly) in atleast below two equity fund (Large Cap) for 5 years. I listed below few funds after going through reviews and discussions.
• Franklin India High Growth Companies Fund (G)
• Birla Sun Life Top 100 (G) (Large cap)
• SBI Blue Chip Fund (G) (Large cap)
Could you please advice if my above selected Mutual funds for large cap are good to invest or is there any flaws or disadvantages in them. Thanks for your help.
Regards,
Nilesh Thengadi
Nilesh-If you are new to mutual fund investment, then you have to undergo KYC. If you need online then use the FundsIndia platform. Invest in one fund and my favorite is Franklin.
Hi Basavaraj,
Thanks a lot for the help and suggestion. I have checked KYC process, I will fill up the form and will submit to them.
I want to invest in two SIP funds, Can you suggest one more large cap fund from my listed fund or anyone which is good from your side. Thanks a lot!
Regards,
Nilesh
Nilesh-I still stick to the above list.
Hi Mr Basu,
I need some advice from you on my investments. I have no idea what so ever about mutual funds or any kind of investments per say, in line with family relations with Canara banks manager in 2013 i took a gold mutual fund scheme named Canara Robeco Gold Saving Fund scheme(SIP). But as we know that the gold market is doing terrible i happen to land in loss.
Initially when i took the scheme i took it for long years 5 or 10 i remember, but for some reason the bank only kept the maturity period of 2 years, and the fund which was started in april 2013 ended in april 2015. Amount i invested each month for the same was 5000.
Now i have got an opportunity to either continue with the Gold scheme for more number of years or i can switch to any other scheme as per my liking or not go on with any scheme at all and withdraw the money.
Details of how much i wish to invest and for how long
Amount: 5000 per month
Year: 5-10 years
The bank again has suggested me the Canara Robeco Equity Diversified scheme, i have also checked the Canara Robeco Emerging Equities Scheme. But i have no idea what to go for or to go for any of these or just look for options outside canara
Can you suggest me a mutual fund which will be best for me within canara and also if any outside of canara.
Thanks in advance.
Nim
Nim-Please raise this in our Forum at Q&A Forum
Dear sir,I m a new commer in this fiekd.I want 5000rs invest in MF.pls guide me
Amulya-Go through the comment secton of this post. You get an idea. If you are new then chose an adviser like me or the adviser whom you feel comfortable and start ivnesting.
hi,
My investment is 5000 per monthly in SIP for 1. Franklin india prima plus- 2000 rupees, 2. HDFC balanced funds- 2000 rupees, 3. Reliance small cap fund 2000 rupees. all more than 10 years
Please suggest if it is ok or change is required.
Than you
hi,
Also suggest me for 2000 more to invest in which of the fund for 10 years
Thanks
Shrinivas-You can continue the same funds and also your fresh investment in same funds (rather than choosing a new one).
Dear sir,
I am about to join my grad school and have some business plans in my mind for future with a little money in my pocket and i want to invest this money(5 lakhs) in mutual funds for 10-12year so i will get some good amount after these years but i am confused with the plans and also don’t know the avg. interest on this amount.
Kindly,advice me the best plans with high % of interest & lesser risk.
I am just 17 yr old and got this money from my FD & RD.
should i go for agent (for best advice ) since my father don’t want to invest in this kind of scheme and want me to do the FD of that amount but as my brother suggested me i want to know about this plans please clear my doubt sir.
with regards,
Gaurav
Gaurav-I understand your aggressive nature. But I suggest you to follow your father’s advice. Because he knows your family or your own personal finance than me. However, if you are adamant then chose a equity oriented balanced fund above list and invest (strictly for goals of more than 10 Yrs).
Hi Basavaraj,
I want to invest in Mutual funds through SIP with long term 10 + yrs and purpose is wealth creation. Investment amount 15 k per month for next 10 yrs at least.
My question is
1. What will be the expected return i can get as per your calculation? Will total return incur income tax deduction or deductions apply only on profit not on principle.
2. Is the below diversified portfolio Fine for good return or would you recommend any changes with respective to mutual fund or amount?
3. Should I do this investment from agent or should go directly to respective company website online and apply?
1. Large cap–Icici pru focused Blue chip fund –3K
2. Large cap–SBI BLUE CHIP FUND-2K
3. Diversified–Franklin India high growth companies fund-2k
4. Mid and small cap–SBI MID AND SMALL Cap-3K
5. MID AND SMALL CAP–UTI MID CAP FUND-3K
6. BALANCED-HDFC BALANCED FUND-2K
Thanks
Anil
Anil-You can expect around 10% return from equity investment (for a 10 yrs period), which again is tax free. I suggest to have large cap of ICICI, balanced fund of you mentioned and a small portion into small and mid cap. Infuse more in balanced fund, then large cap and slight amount into small and mid cap fund.
Thanks for your advise. what should be our strategy for higher return like 20 % or so and what should be investment period you suggest.what kind of portfolio you will guide,any change in above portfolio you would suggest since mid/small cap can give more return compare to large cap or balanced fund.
Thanks
Anil-Expecting 20% is also be associated with risk. I ideally expect around 10% to 12% tax-free return from equity.
Hello Basavraj,
Need your view for the below case.
I am new to Mutual funds and have started it by investing Rs 2000 PM as SIP in Reliance Small Cap Fund.
I can still invest Rs 3000 more however very confused. My holding capacity is >5 years.
Please suggest how can I diversify and if Reliance Small cap is a good fund to stick with.
Thanks and Regards,
Tejinder Singh
Tejinder-More than 5 years means? Also how you opted this Reliance fund?
Dear Basu
I can hold the money for 6 to 7 years. I would require the amount by then for my kids schooling.
The Reliance small cap was an accident (a relative of mine works for reliance) however i managed to restrict it in 2K per month.
I still have 3K more capacity to invest and review reliance one after one year ( switch if required)
Thus need your expert advice.
Thanks and regards
Tejinder Singb
Tejinder-I already replied.
Dear Basu
I would want to invest for 6 years before my childs education starts and thus this saving
reliance SIP fund was done through one of my relative however as i was new ad unsure i chose to do it for one year and rs 2k pm.
I still have capacity to invest 3k and thus seeking your expert advice. Please help
Thanks and regards
Tejinder Singh
Tejinder-First, come out of this fund. Reason is, you are saying that goal is just 6 years away. Hence, I suggest you to stay away from equity or invest in balanced funds rather than such risky funds.
Thanks Basavraj
I will do as recommended. Thanks
Regards
Tejinder Singh
hi basu,
I have starred SIP of 2000 in below MF 1000 each for longterm of 10 years.
1. kotak 50 fund
2. kotak select foucsed fund
please advise if i should add anything more or any reorientation is needed
Regards/Rajneesh
Rajneesh-Have you checked the overlap of portfolio? Please check the same from my earlier post “How to compare Mutual Fund portfolio overlap?“.
Hi basu,
i have made my portfolio with below funds:
icici focused bluechip fund – 25000
icici valuediscovery fund – 25000
on monthly basis via sip my time frame is for 10-12 years please let me know if any change need to make in my portfolio.
Thanks,
Darsh-Both funds doing good and you can continue. However, review yearly once is a must.
Hi,
I read your post and saw your comments. I think you are doing a great job.
I would like to present my case and hope you get chance to reply:
Info: I am 32yrs old living in Mumbai. Married with no kids yet.
Income: Rs.80,000 per month
Life insurance: Rs.25Lakhs.
Medical insurance: Rs.5 Lakhs
Loans: Not at present.
Goals: Child education and retirement.
History: I invested in Mutual funds in 2008 but burnt my fingers and went out of market. I want to come back in a planned way this time.
Investment Plan:
I want to invest Rs.50,000 per month in mutual funds for 20yrs.
Based on some research over morningstar, valueresearch and youtube videos I have compiled this list of portfolio for me.
1) ICICI Prudential value discovery (Mid and Small Cap)
2) Franklin India Smaller Companies (Mid and Small Cap)
3) UTI Equity Fund (Large Cap)
4) HDFC Balanced Fund (Balanced)
5) Tata Balanced Fund (Balanced)
I will be going for DIRECT plan with DIVIDEND PAYOUT option for all the above funds. If you don`t agree with this option suggestion is welcome.
I would like your second opinion if this portfolio is fine. You may recommend other Mutual funds too if you think they are better.
Regards,
Rahul
Rahul-First shortage is life insurance and accidental insurance. Before proceeding further first fill those gaps. Along with that try to build an emergency corpus of around 6-12 months of household expenses. Why two mid/small cap funds? Retain one and the same applies to balanced fund. When your plan is to accumulate for future goals then why DIVIDENT PAYOUT option? I suggest GROWTH.
Hi Basavraj,
Thanks for quick reply. You are just awesome!
1) I agree your life insurance, accidental insurance and emergency corpus suggestion. I think I also may need to bump up my medical insurance.
2) Why two mid-small cap and balanced funds? I want to invest in these 2 categories and I am trying to diversify by picking 2 MFs each in both these categories. Mid-Small cap for higher returns over long term. Balanced funds as per my research are ideal for 3-5yrs horizon but I think they are ‘smart’ mutual funds and make sure capital is not lost out in downturn. So, they interest me.
3) Why DIVIDENT PAYOUT option? I agree that GROWTH may be a better option. But, my rationale is that since I am a new investor, by dividend option I may get to see some money returns coming in. Then if i become confident i will in future start putting Div returns to another MF or other investment. I think by think way I will have control on my money.
You may still suggest if you think I am thinking on a wrong track on points 2 & 3.
Also, I would like you suggestion on my MF pick. Are they good, OK or bad? I would like to know your analysis or your picks for investor like me.
Regards,
Rahul
I forgot to mention this.
My expected YoY returns over 20yrs:
1) ICICI Prudential value discovery (Mid and Small Cap) – 15%
2) Franklin India Smaller Companies (Mid and Small Cap) – 15%
3) UTI Equity Fund (Large Cap) – 11%
4) HDFC Balanced Fund (Balanced) – 12%
5) Tata Balanced Fund (Balanced) – 12%
So, on an average I am expecting 12-13% returns YoY on this portfolio after 20yrs.
Kindly let me know if my expected returns are justified or they are out of place and I should tone them down.
Rahul-2) In your view it is a smart move to divert in two funds of each category. But finally your money will be dumped in the same stocks. Then what you do? Do you still feel the best diversified method? Check overlap of the funds you selected then only you understand about what I am saying.
3) You accumulate corpus only when you invest smartly. Let us say if you realised the dividend and not re-invested properly then what is the use? What do you mean by coming back? When your goal is long term then why you want to realise it now? Do feel it is a smart way of realising dividend and investing again from your end to new funds? What about the cost involved?
Funds are good and expectation is withing the range. They why this dividend payout option?
Thanks for your reply.
1) I picked 2 MFs in mid cap and balanced using the ‘overlap calculator’ you mentioned in an article. HDFC Balanced and Tata Balanced have as of now overlap of 20%. Franklin Smaller companies and icici value disc have overlap of 16%.
2) I agree on your point. But, I am assuming that i`ll be re-investing dividends. But, NAVs of div payout schemes also increase,rt? its not that all money is distributed in div. I am thinking that if growth plans grows 15% YoY, Div plan may grow 14% (15%-1% of div). It may look more due to compounding over years.
New Questions:
1)I have HDFC Securities account. It provides option to buy MF of any AMC online. I see that they did not charge me any fees. I was also able to buy DIRECT plan from HDFC Sec. (I thought direct plans can be bought only from AMCs). They are not letting me start SIP in MFs though. Is there something I am missing here? How is HDFC Sec making money? Will they charge me later?
2) I am not able to find expense ratio of DIRECT plan for MFs. All sites morningstar, valueresearch, etc show different percentage amount! I also went to AMC site directly and could not find info in some cases. If possible and if not much work can you please share with me current expense ratios of plans i selected? or can you share any document if you may maintain on expense ratios?
Rahul-1) I still suggest to retain only one fund from each category. 2) Never run behind NAV and invest. Instead try to calcualte the return on how much you invested. Whether NAV of dividend schemes increase or decrease, but the compounding of your investment miss if you withdraw from your investment. 3) HDFC Sec acts like broker and check for charges of investment in MF. Even though they may not be charging, but they earn direct commission from AMCs. Yes, DIRECT plans can ONLY be bought from AMCs. Their part of expenses already included in NAV and reflected to you. Hence, you may not notice this cost. 4) Please check respective AMCs or call the toll free numbers. They inform you about this.
Hi,
I am 22 years old and currently working in an IT company. I wanted to invest 15,000 monthy via SIP for a period of minimum 4 years. So can you help me out by providing the best of debt balanced,equity balanced,equity MF in which I can invest from this coming month of August.
I had a really bad experience of investing in equities as there was no proper guidance. So don’t want to commit the same mistake twice.
It would be great if you could divide the 15,000 among the best of all three. Also If you have any other suggestion regarding the type of MFs in which I should invest it would be much appreciated.
Jithya-Bad experience, investing period is just 4 years and still ready to invest in equity? Stay away from equity if your holding period is less than 5 years or so. Instead use the short-term debt funds, arbitrage funds or FDs.
Hi Basu,
I’m 28 yrs old and planning to invest in Mutual Funds, can you please tell the funds to start off… i’m planning to invest around 20k per month.
can you help to suggest some funds.
My target is to create a corpus fund and time frame is 10-15 years.
Thanks in advance.
Regards
Rahul
Rahul-They are already listed above.
Hi sir, I have one query for u.
I have stared Franklin High growth companies Fund (G) from last month and paying SIP monthly 5000.
My age is 25. Time horizon may be more than 15 years. Is it a good fund.
If I wanna start 5000 more from next mont . Which is good pls suggest
Sreeni-You continue the fund. For fresh investment, add a large cap fund from above list.
Dear Sir,
I am very impressed to see you replying every individuals. I hope you will take my questions too. I am 37 years and I am investing through SIPs in following funds:-
1. Axis Long Term Equity Fund – ELSS – 1500/- (just started for tax saving purposes)
2. DPSBR Micro Cap – 500/-
3. Franklin India Smaller Companies – 500/-
4. Franklin India Higher Growth Companies – 500/-
5. ICICI Pru Discovery Fund – 1000/-
6. Reliance Equity Opportunities – 1000/-
7. Reliance Small Cap fund – 500/-
8. SBI Banking and Finance – 500/-
9. SBI Small and Mid Cap – 500/-
10. SBI Pharma Fund – 500/-
I will be very thankful if you please provide your guidance on each fund of my equity SIP portfolio. Time frame is 15 – 20 years.
Thanks & regards
I forgot –
Axis Mid Cap Fund – 1000/- SIP
Ranjit-why so many funds and how you selected these funds?
I have used tools of mutual funds/stock market websites to evaluate performance of individual funds. I have also selected sector funds Banking and pharma as I found they have performed good in long run. Actually I am looking for maximum growth investing in small caps, sector funds while tried to minimise risk by using minimum value of SIP as Rs.500/-.
I have investment in other mutual funds some large cap and others, I am not investing further in those either through SIP or lumpsum.
Actually I am looking for maximum growth through MFs for Education and marriage of my two children and my retirement after 60 years. At present I am 37. I don’t need to withdraw money for atleast 15 years.
I can invest ten thousand more in funds or any other scheme if you would suggest some?
I would be very thankful for your personal assessment to my SIPs portfolios.
Thanks & regards
Ranjit
Ranjit-When the fall starts then the sector funds goes down in the same manner. Everybody expects maximum growth. But it does not mean that we must take the risk which is beyond our control and capacity. In my view, sticking to small portion in small and mid cap and exposing to large cap or balanced fund is a right approach.
Dear Sir,
Thank you for your guidance. Would you like to suggest some funds? or an ideal portfolio?
Thanks & Regards
Ranjit
Ranjit-Funds are already listed above.
Dear Sir,
Thanks. I will modify my portfolio. I would like your suggestions, I am EPF subscriber, can I also go for –
1. NPS for Individuals Tier-1
or
2. Atal Pension Yojna (APY)-New Pension Scheme
or
3. Pension Mutual Funds like Reliance PEnsion fund
Which would be better out of these three? or should I just stick to MFs for retirement?
Thanks & regards
Ranjit
Ranjit-None of the options are best. Instead why can’t you create your own corpus by investing in equity mutual funds (which not come up with PENSION).
Thanks for your valuable answers. regards
ranjit
Hello sir,
Is it better to invest in a comparatively newer fund like 2-5 years old fund or even older funds (10+ years) are good. I am speaking for investment in SIP.
Regards,
Ravi
RAvi-Older Funds. Because we have a data to understand about how the fund performed since long.
Hello,
Any Comments on my current Funds below.
SBI BLUE CHIP FUND- GROWTH
FRANKLIN INDIA HIGH GROWTH COMPANIES FUND- GROWTH
FRANKLIN INDIA SMALLER COMPANIES FUND- GROWTH
ICICI PRUDENTIAL DYNAMIC PLAN- GROWTH
I am also planning to add : ICICI Prudential Exports and Other Services Fund to my Portfolio
I am 36 and am looking at least 10+ years of continued investments. My primary objective for investments would be retirement.
Would appreciate your recommendations.
Thank You
Sujith
Sujith-Funds are good and you can continue. However, I am not a fan of sector funds. Hence, you can add the new ICICI fund at your own risk.
Thank you very much for your reply. I understand your point with respect to sector funds. I want to add one more fund to my portfolio. Any recommendations ?
Thank you
Sujith
Sujith-Continue in the existing funds. Why to add new funds?
Thank You very much for replying to my questions.
I will stick to my current portfolio and do not think it is necessary to add more funds. Easier to Managae that way.
regards
Sujith
Dear Sir,
Can I invest lump sum in Motilal Oswal MOSt Focused Midcap 30 Fund and Motilal Oswal MOSt Focused Multicap 35 Fund with 3 years horizon. what are your reviews about these funds as they are recently launched and not much information is available. I know there are other existing funds available from OLD AMC but these two funds have outperformed popular funds if I check the performance from 01/01/2015 till date.
Thanks and Regards
Mohit
Mohit-I prefer the fund which must be at least 5 years old.
Hi Sir,
My current investment in mutual fund is given below:
Large Cap Fund:
ICICI Pru Focussed Bluechip – G Rs. 2500
HDFC Top 200 – G Rs. 2000
Large and Mid Cap Fund:
ICICI Pru Dynamic Fund – G Rs. 3000
Mid and Small Cap Fund:
HDFC Midcap Opprotunity – G Rs. 2000
Reliance Equity Opportunities – G Rs. 2000
UTI Midcap – G Rs. 2000
Balanced Fund:
HDFC Balanced – G Rs. 2000
ICICI Pru Balanced Advantage – G Rs. 2500
Multi-Cap Fund:
L&T Business Cyclic – G Rs. 3000
I am currently 35 and am doing this investment for last 1.5 years. My plan is to continue with this investment for 8-10 years. Are these looks fine to you or do I need to change anything. Please suggest.
Thanks,
Koushik
Koushik-Why so many funds?
Initially I have started with these many number of funds due to lack of knowledge. Now actually I am reviewing my portfolio and going forward I am planning to stick to one fund in each category. I will stop rest of the funds and distribute the money in funds which I will be continuing. Please suggest whether that will be good and I can select funds in which I am currently investing or you can suggest any other funds to strengthen my portfolio.
Hello Sir,
I am 23 years old and planning to invest in next 1 or 2 months via SIP for at least 5-6 years as below:
Tax Saving Purpose : Allocation – Fixed
ELSS Fund – Axis Long Term Equity Fund
Investment Purpose : Allocation – Balance after investing in Tax-saving Funds
Core Part
Large & Mid cap Funds (25%) – Franklin India Prima Plus Fund
Multi-cap Funds (25%) – Franklin India High Growth Companies Fund
Satellite Part
Rewarding Funds
Mid & Small cap Funds (35%) – Franklin India Smaller Companies Fund & HDFC Mid-Cap Opportunities Fund
Aggresive Funds
Sector Funds (15%) – SBI Pharma Fund
Are these ok or need some improvements? Please guide me.
Thank You.
Sachin-If time horizon is 5-6 years also, stay away from equity. No core, satellite, aggressive or any part required. Take safe part and expect a decent return from secured products.
Hello Sir,
Thanks a lot for the kind response. I am inclined to invest in equity oriented funds as long-term capital gain from these is tax-free while from debt funds is not tax-free and I want to get good return with a little bit more than moderate risk.
I also need to invest in one tax-saving fund i.e. ELSS. So, should I invest just in one ELSS and one equity oriented balanced fund (atleast 65% in equity) or anything different for a period of 5-6 years? Can I include a multi-cap fund also?
If I want to invest in equity or sector funds to get good returns then for what minimum years I should keep money invested?
I request you to please guide me in selecting funds to invest.
Thank You.
Sachin-When your time frame is around 5-6 years then I don’t think equity exposure is worth. Maximum risk in my view is to have an equity oriented balanced fund. Sector funds give good returns at the same time when that particular sector not perform well then they may ruin your investments.
Hi Basavaraj,
I have also selected same funds for investment but my time horizon is 15+ years. should i continue with these funds. I am also considering to remove prima plus fund and increase high growth portion. what do you think?
Looking for your kind response.
Vishal-Can you elaborate which funds you selected?
Hi,
I want invest in large cap fund.pls tell me which fund is better b/w them
Tata Equity Opportunities Fund and ICICI Pru Focused Bluechip Eqty
I have two option 1) invest in both fund in rs 1000 each and
2) invest 2000 in only one fund
pls share your view so that we plan accodingly…
thanx in advance…
Nikhil-I am more inclined towards ICICI. Also, in my view Tata is a large and mid cap fund rather than purely large cap. One fund is enough in large cap category.
Hi,
I want invest in large cap fund.pls tell me which fund is better b/w them
Tata Equity Opportunities Fund and ICICI Pru Focused Bluechip Eqty
I have two option 1) invest in both fund in rs 1000 each and
2) invest 2000 in only one fund
pls share your view so that we plan accodingly…my time period is more than 10 yrs
thanx in advance…
Nikhil-I already replied to your doubt.
hello sir ,
i m 31 yeras old and My Current Investment is as below
ICICI FOUCSD BLUECHIP – 5000
ICICI VALUE DISCOVERY FUND- 3000
HDFC MIDCAP OPPORTUNITIES – 2000
IDFC PREMIER EQUITY -2000
What should I do , Is it ok ?? or need improvement please guide.
Akash-Why 3 small/midcap funds (ICICI, HDFC and IDFC)? I think one is enough.
Hi sir Good Day
I have started SIP in fallowing mutual funds.
UTI Opportunity (G)-10,000
Canara Robeco Emerging Equities (G)-20,000
ICICI Pru Value Discovery Fund (G)-10,000
Is I am on right track, do I need to add any balance fund like HDFC Balance fund or anther Large Cap Equity oriented fund, my time horizon is above 15 year.
hi,
i am investing in franklin templton bluechip fund growth – 2000 rs. , icici value discovery & dynamic fund – 3000 rs.
now i want to invest 8000 rupees in mutual funds. i want to buy all new funds from large – mid cap funds.
i have plannes like;
3500 in large cap – 2 funds
1500 in large & mid cap – 1 fund
1500 in mid cap – 1 fund
1500 in multi cap – 1 fund
please help to design a best portfolio for 25-30 years. thank you.
Devanath-You continue the same funds.
hi,
ok, and i am want to invest 8k more so i want to build my personal portfolio so can you suggest best funds based on large cap, large & multi cap, mutli cap, mid cap
Devansh-They already listed above.
Hello Sir,
I am Investing on below funds through SIP every month Rs.2k.
1)ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth
2)ICICI Prudential Value Discovery Fund – Regular Plan – Growth
Now I am planning to invest another 2k every month through SIP , apart from the above fund.
So Could you please suggest me the best fund I can choose.
Thank You
Jay-You can invest in same funds (if you already managing well of your debt category). Otherwise, I suggest to include HDFC Balanced Fund.
reference to my previous post.
I have repeatedly checked and found that your suggested funds are really good for a stable investor who is willing to invest with discipline and time for long haul.
I have a suggestion. can you suggest liquid fund for each one of equity fund in your list. So that combo/solution we can use for lump investment and transfer to suggested equity fund. It will be a good post. I have seen such post is not available on any forum
Rameshkumar-If your time horizon is long term, then I don’t think it is right strategy to invest in liquid fund and opt for SWP.
I have more then required NRE/NRO FDs. That matures year on year and interest rate for new FD is less. Actually I do not need this money at least for next my next 10 years from now.
How I can enter into mutual fund safely this amount.
Rameshkumar-Invest in equity oriented balanced fund (if your time horizon is 10 years).
I want to invest 40 lacs in following balanced funds withing 4 to 6 months.
After one year i want to SWP for Rs. 40000 P.M. My time horizon is 20 years.
– ICICI PRU BALANCED FUND
– ICICI PRU BALANCED ADV FUND
– HDFC BALANCED FUND
– TATA BALANCED FUND
– BIRLA SUNLIFE 95 FUND
– L & T INDIA PRUDENTIAL BALANCED FUND
IS IT WISE DECISSION ?
Haresh-You mean to say that you invest Rs.40 lakh now in above mentioned funds and from there you need monthly SWP of Rs.40,000 after 5 -6 months for tenure of 20 years? Sorry investing in any equity oriented funds for the withdrawal just 5-6 months away is not a right strategy.
Hi Sir,
Your articles is eye opening for me.
I have bought icici pru life Wealth Builder – Maximiser V on Dec 2014 for which I have paid Rs. 50,000 as first perimium and need to contined for next 4 years.
Lockin period is for 5 years and the policy is for 10 years
But my fund value is keep on reducing and at present my fund value reduced to 44,000.
I’m confused whether to contiune on this plan and stay invested it for 5 years or should i cancel this plan now itself ?
thanks in advance.
Murali-Better you discontinue and come out. Fund values coming down because there will be yearly expenses in ULIPs and fund may not be performing well.
Thanks for your kind respose.
I will cancel this policy as soon as possible.
Hi Sir
Currently I am investing in the following SIP 4000 INR per month
ICICI prue Focused lue Chip Fund -INR 1000
HDFC Midcap Opportunities fund- INR 1000
UTI midcap Fund INR 1000
ICICI Prue Balanced fund
I want to invest for 10 years
Could you please suggest
Vinod-Why two mid cap funds?
Dear Sir,
I have started sip in 4 funds from last six months,ie
hdfc balanced fund – 1000 rs
hdfc mid-cap opportunity – 1000 rs
icici balanced fund -1000 rs
icici value discovery- 1000 rs
now i want to add more 5000 per month,so should i increase in these funds or select new fund.
please suggest and i want invest 50000 lumpsum,so please suggest the funds…
thanks in advance
latish
Latish-What is the logic of having two funds in same category? You can add a large cap fund in your portfolio.
Dear sir,
I am 45 years old and I work in a private company,Now I wish to start SIP in mutual funds, which funds is best for long term(10-15 yrs) for retirement purpose.
Monthly investment is Approx. 5000Rs.
Pls. suggest me best fund.
J P Porwal
Reply
Porwal-They are already listed above.
thanks for your advice.
One thing I am anxious to be clear. I see for most of the funds, the more the number of years, the less the percentage of return, why so? Does it mean 1yr return is more than 5 or 10 or 20yrs return? I do not think, so, but I do not have logic for this as well, that is why wish to hear from you.
Satyabrata-Because this shows the volatility of equity (to certain extent). Also because of absolute return for less than a year period and compounding return for more than a year period.
Sir, I would like to create a corpus of around 10 lakhs in 4-5 years for achieving a financial goal. Currently, I have invested in SBI Magnum Mid Cap fund of 3000 (SIP) and UTI Mid Cap fund of 2000 (SIP). I am planning to start another SIP in Franklin India Smaller Companies Fund of 3000 (SIP). Will these funds be enough to achieve my financial goal or should I increase my SIPs ? Please advise me
Ashish-At first, stay away from equity if your time horizon is 4-5 years !!!
Hi Sir
Need your suggestion to know the better funds for to do SIP for 25 years for my retirement planning.
I want to invest six thousand monthly in SIP for 25 years to generate a good corpus for my retirement. I can take risk here with the equity funds.
For your information I have two ULIP’s with SBI from 2008 ( one with 3k monthly(growth fund) for 25 years & other one 6k quarterly for 35 years (50% growth & 50 % equity) both started in 2008.
Also starting to invest in PPF for 25 years with rupees 3200 per month ( as debt fund).
And planning to take a e-Term insurance for 50 lakhs.
Please help me in which funds shall I invest 6k monthly SIP for 25 years. Presently I am 32 years old now.
Thanks in Advance
regards
Raj
Raj-Rs.4,000 into small/midcap fund and Rs.2,000 into large cap fund mentioned above. Two funds are enough.
Hi Sir
Thanks a lot for the quick response,
Request you please let me know the fund name also.
And investing 4k in mid & small cap is good, please let me know.
Regards
Raj
Raj-The fund names are aloready mentioned in above post.
Hello sir,
i have one doubt, kindly clear it.
if i want to invest some lump sum amount in equity mutual fund over the SIP than it is advisable or not??
if not than what is the reason , pl suggest sir
I want to invest 50000 in HDFC balance fund-G through lump sum
pls advise
Mihir-Can you clarify me “want to invest some lump sum amount in equity mutual fund OVER the SIP”?
yes
Hi Basu, I like you articles on mutual funds.
I am investing some amount per month(SIP) in HDFC Balanced Fund. Now I want to increase the Amount. But, HDFC MF say that I have to cancel the existing SIP and start a new one.
Please share your thoughts on what can I do. Thank you.
Sekhar-Instead of cancelling it, register the new SIP under the same folio.
Hello Sir,
I am new to Funds world,got interested by your blog and want to invest some amount (1000 to 1500)reqularly for a short period(3yrs or 5yrs) in SIP.Already i have RD.so i don’t want to put all eggs in 1 basket.Can you please suggest some good plan with good return.
Thanks & Regards,
Jagadish.M
Jagadish-When your time is too short it is better to put all your egss in only one SAFETTY BUCKET rather than experimenting.
Hi Sir,
I’m 27 years old. I’m new to the mutual fund investment area and i want to do the invest for wealth creation in long term.
currently, I would save 10k in my monthly salary, out of which, I have planned to invest 6k in below funds in SIP and rest of the 4K for savings.
Large Cap:
2K in ICIC Pru foccused Bluechip Fund(G) for 5 years
Mid Cap:
2K in HDFC Mid cap opp fund(G) for 5 years
Balanced fund:
2k in HDFC balanced fund(G) for 5 years.
I have choosen the above plans. Can you please suggest if i selected are good? or any suggestion to get best returns or I want to more invest in above chossen fund.
Murali-Funds are good but if your time horizon is just 5 years then stay away.
Dear sir
I am not know about the mutual fund investment. I want to investment in MF for amt Rs 2 lac for 5 year. Pls confirm how much return, i will get after 5 year and where to investment is benificial for us.
In addition to above i will also investment Rs 10000/- per month in mutual fund for 5-year. pls guide which plan i will purchase for best return.
Hi
I ,want to invest in the following mutual funds via SIP
FRANKLIN INDIA PRIMA PLUS : rs 6000
Franklin HIGH GROWTH COS . : Rs 6000
HDFC balanced fund : rs 7000
SHALL I go ahead with these funds or can u give any suggestions to improve my portfolio…
My objective is wealth creation and time frame is 7 to 10 years
Looking forward to ur reply
Yours truly
Swati
Swati-How you selected these funds?
Sir ,
I selected these funds as they were doing good in there respective categories. I referred to economic times and , a few blogs , value research , moneycontrol . I can take medium risk for my investment so I chose a multi cap and large cap and balanced fund.please advise if need to change them .your suggestions are WELCOME
YOURS TRULY
swati
Swati-A single fund like HDFC Balanced fund is enough (where the equity:debt ratio will be 65:35). Otherwise, you can add a small and mid cap fund like HDFC Midcap Opp or Franklin Smaller Companies fund. Keep 2-3 funds. This much is enough. Also please note that funds doing good currently may not guarantee that they do good in future. Hence, you have to select a fund which is consistently delivering good results.
Sir,
I have few questions for u .
Q1 you always advise one fund each from large cap , MIDCAP/small cap and balanced fund to build a portfolio BUT why you do not advise funds from MULTICAP and LARGE /MIDCAP category.?…?
Q2 when should we review our portfolio ? Once a year or once in three years ? Plz give your viewpoint.
Looking forward to your reply
Swati-Check the portfolio overlap and then you get my answer. What if you start to invest in all sectors and at the end of day the portfolio overlap is more than 60% to 70%? Then do you believe a good diversification by investing in the SO CALLED all sectors of funds? Ideally I prefer to review once in a year.
But why you are commenting in two names (One as Swati and another as Dr.Sameer Kad) but using the IP Address?
Sir ,
We both are a married couple and seek your advise regarding investment matter..we have a different portfolio each….
Thanks
Swati
Swati-Best of luck 🙂
sir
I would like to appreciate the efforts you are taking to create awareness on mutual funds and investments to people
I am planning to investment in mutual funds which is completely new to me and i am nri .
looking for long term and short term
My monthly investment capacity on mutual funds would be around 2000INR
Kindly suggest
thanking you
jp
Jayaprakash-Simply by sharing few words like ready to invest for long term and short term means confusing. First understand yourself what is long term and short term (in terms of investment). Based on that take view of your risk taking ability. Then chose a product.
Hi sir
Im planning to invest in MF, starting this month. an amount of 8k.
Im 25 years and could you pls suggest the best funds for one year investment with 3k and a long term fund with 5k investment. wherein, long term for atleast 20 years.
Thank you
Tessy-If your short term need is just one year then I will suggest Bank RDs. For long-term needs, you can opt the above shared one large cap, one small/mid cap and another balanced fund. If you are new then you can go with an advisers like ME. Once you are comfortable with investment then think of moving to DIRECT (cost effective).
pls share your details, sir. so that i can call you
tessy-It is shared to your mail. Please check the mail.
Hi:
I have 5lakhs money with me to invest for my sons future education who is 6 years old now. How do I invest this money?
Is FD better than MF?
Gita-If time horizon is 7+ years then definitely MF is better than FD.
hello sir ,I dn’t have much of knowledge in shares and equities. Your site is very useful for a beginner like me. i m 32 years old and i want to invest 15000 per month in mutual fund through sip pls suggest me some top funds my investment horizon 15 years
Tina-You can select one large cap, one equity oriented balanced fund and one small/mid cap fund from above list.
I want to invest for more then 7 years and I have high risk appetite. Investment goal is wealth creation only. What type of funds i should select – diversified, large cap, mid& small cap for investment via SIP for long term.
Prasad-A equity oriented balanced fund like HDFC Balanced Fund.
Any specific disadvantage investing in tax saving fund , if we have no objective of tax saving. (Apart from lock in for three years).
Example I am really impressed by Axis long term equity.
If my time horizon is more than three years, does it make sense to invest in this type of fund. I am an NRI.
Ramesh-If you are comfortable with lock-in and expenses (usually ELSS bears the high cost), then you can go ahead. But for me, I strictly against this logic.
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.
I don’t need the money for atleast 15 years. And I will be investing more in mf in future also
I have units in following funds
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.
Savitha-Why so many funds? How you selected these funds?
what is your opinion to invest in FT India PE ration fund of fund. it does asset allocation or ICICI Balanced advantage. My aim is to generate better return than fixed deposit. Are these fund considered equity funds for tax treatment ?
Prakash-Please look at the high expense ratio of these funds and also these funds are considered as debt funds. Because of this, the taxation issue may ruin your gain.
Sir
I would like to invest for next 8 years. Intention is to create wealth with surplus money available. I would like to invest online via direct plan. I am sure about my duration min-8 years or more. I have no specific goal other than wealth creation. I have already planned my all other goals and it is in place.
can you suggest me 5 good diversified funds that can compliment each other over long term and give good return.
Praduman-5 funds? You need a single equity oriented balanced fund like HDFC Balanced Fund.
hello sir ,
i m 30 yeras old and My Current Investment is as below
icici focussd blue chip fund – 5k
hdfc equity fund – 5k
idfc premier equity fund – 5k
What should I do , Is it ok ?? or need improvement please guide.
Mehul-Except HDFC, I don’t have any issue with other two funds.
Please comment on the below funds. my investment period is 8-10 years.
CANARA ROBECO EMERGING EQUITIES – GROWTH- 2000/month sip
Franklin India High Growth Companies Fund- 2000/ month sip
Uti equity fund-2000/month sip
Axix long term equity- for tax planning- 2000/month
Shashi-I don’t think such aggressive portfolio required with a time horizon of 8-10 years.
Sir,
I am investing rs 5000 each in the following funds via SIP for the last 6 months
HDFC TOP 200
HDFC MIDCAP OPP.
ICICI BLUECHIP
ICICI DISCOVERY
my goal is wealth creation and time horizon is 10 to 15 years
Is my portfolio good?
Any advise to further improve it?
HDFC TOP 200 is not doing well …your comments….shall I stop it….
Please advise
Looking forward to your expert reply
Dr.Sameer-Please continue the fund. But I don’t think HDFC Top 200 and ICICI Bluechip both required.
Sir,
When shall I review my portfolio?
On a yearly basis or after 3years????
Please advise .
Looking forward to your expert reply.
I am investing for the last 6 months and my time frame is 7 to 10 years.
My objective is wealth creation only.
Sameer-But why you are commenting in two names (One as Swati and another as Dr.Sameer Kad) but using the IP Address?
Sir,
When shall I review my portfolio?
On a yearly basis or after 3years????
Please advise .
Looking forward to your expert reply.
Sameer-Ideally once in a year.
But why you are commenting in two names (One as Swati and another as Dr.Sameer Kad) but using the IP Address?
Sir , we both are married and use the same tablet to take your advise…..
Hahaha… Nothing fishy….
Thank you sir for your advise….I will review my funds after 1 year…
Sameer-Best of luck 🙂
Sir,
I want to invest in the following mutual funds via SIP
FRANKLIN PRIMA PLUS : rs 7000
FRANKLIN INDIA HIGH GROWTH COS : rs 6000
HDFC BALANCED FUND : rs 7000
My objective is wealth creation and I want to invest for 7 to 10 years.
Plz advise if my portfolio is alright
Shall I go ahead with these funds
Or can u suggest any changes…
LOOKING FORWARD FOR UR REPLY
Thanking you
Swati
Swati-How you selected these funds?
Hi Basu,
I have read various articles written by you in the blog and delighted to see your website.
I was a certified MF advisor. But not now.
I would like to have your views on my portfolio for 10+ years horizon…
1. Reliance Small Cap Fund 1500/- p.m.
2. Rel top 200 – 1000/-
3. Rel pharma – 2500/-
4. UTI MNC – 1000/-
5. Birla MNC – 1000/-
Thanks….
Ravi-We already discussed the same over personal chat.
Hi Basu,
First of all many thanks for educating people on this blog and providing your consistent support in guiding people to take Profitable Path.
As most of the guys here, am also new to the Terminology – Mutual Funds, Equities, Blue Chip, Small/Mid Cap etc… and have been doing analysis in understanding
the market and to pick the right list/ combination of Mutual Funds to Invest and during the process came across this wonderful site.
Sir, I would request you to take a look at my below 2 plans and suggest me to pick the right one and also help me in understanding few questions I have on this.
Am planning to invest 10k per month for very long time (10 – 15 yrs)
List I have chosen Personally based on my analysis:
1) Axis Long Term Equity Fund – Rs. 4000
2) ICICI Pru Value Discovery FUnd – Rs. 2000
3) SBI Blue Chip Fund – Rs. 2000
4) HDFC Mid Cap Oportunities – Rs. 2000
Portfolio, I have prepared from your above list
1) ICICI Pru Tax Plan – Rs. 4000
2) HDFC Balanced Fund – Rs. 2000
3) HDFC Mid Cap Opportunities Fund – Rs. 2000
4) ICICI Pru Focussed BlueChip FUnd – Rs. 2000
Request you to review my portfolios and confirm me if am allocating the right amounts per Funds, please share if any deviation.
As I already have PPF, LIC other Life Insurances to fill up my 80C Quota.
Also I am seeing lot of deviation in the % of Returns in last 1, 3 ,5 yrs for the Funds which you picked for 2015, when compared to other research websites like MoneyControl.com
As I am new to this, am trying to understand the way to judge which is performing good and which is not, by looking at the statistics and in process of that, these differences in values between websites is causing lot of confusion.
Please guide me. Thanks alot once again ina advance for all your cooperation and guidance.
Regards,
Sri Harsha
Sri Harsha-If your 80C limit filled with other assets then why you have chosen ICICI Tax Plan? Rest of funds are comfortable to me.
Hi Basavaraj, thanks for your reply. Since 80C limit was made up to 1,50,000 I had to go for Rs. 75,000 as PPF, hence from this time onwards am looking to invest ELSS and reduce the amount in PPF.
Can you please tell me if my decision is right and the amount specified is Okay to proceed ??
Also you confirmed other funds are fine, can you please specify both the lists I mentioned are Okay to proceed ?? From “List I have chosen Personally based on my analysis” & “Portfolio, I have prepared from your above list”
Regards,
Sri Harsha
Sri Harsha-Please bear in mind that ELSS too is an equity product. Hence, enter only if you are ready to wait for more than 7+ years. I said the second list looks perfect.
Sir , i observed that your writes on varieties of topics.
1) for NRI, which option is good – to invest from NRE account or from NRO/Resident account (consider repatriation is not required.)
2) which option is better from tax point of view for NRI for MF investment – wife (also NRI, not working) as second holder or as nominee for mutual fund investment.
3) if wife is second holder and returns back to india with her better half still in NRI status , How investment is treated which was invested as joint holders ?
4) Any special benefit of investing on the name of minors who are likely to be major within next one year for NRI ?
thanks, it seems this will bring clarity to me and also many others. I suggest your write an article on this.
regards
raj
Raj- 1) It depends on your goal. 2) It depends on your time frame. 3) If you are first holder, then I think it is still treated as NRI status. 4) In my view no benefit.
hello sir , i m 32 years old and i want to invest 15000 per month in mutual fund through sip pls suggest me some top funds my investment horizon 10 years
Anubhav-HDFC Balanced Fund.
hello sir , i m investing under below, please suggest and recommend any correction if you may please. would be really greatful. horizon 10-15 year
icici foucsd blue chip fund -5000
idfc premeir eqity-2000
hdfc midcap opportunities -2000
uti mnc fund -2000
axis long term eqity-1000
ppfas longterm value fund-3000
i m also invest lumpsum in ….. sbi magnum balanced fund dividend payout -80000
Urmila-Why two small/mid cap funds? I am not fan of sector funds. Hence, no comment on UTI. Why you invested in PPFAS? Is it because of Parag Parekh?
I’m investing under below, please suggest and recommend any correction if you may please. would be really greatful. My horizon 10years…
Icici foucsd bluechip fund-5000
Ppfas long term value fund-3000
Uti mnc fund-2000
Idfc premier equity-2000
Hdfc midcap opportunities-2000
Axis long term equity-1000
Urmila-already replied.
Dear sir,
I am 35 years old. Now i wish to start SIP in mutual funds. which funds is best for long term & short term.
Monthly investment is Approx. 5000Rs.
Pls. suggest me best fund.
Alpesh Patel
Alpesh-According to you, what is LONG TERM and SHORT TERM?
Hi Sir,
I’m a 33 years old IT professional who has just started looking into investing in MF. After going through your articles and analyzing MF returns across asset classes, I have decided to start investing on the below.
Investment Time: Min of 15 years through SIP
Monthly Investment; 10000/-
Large Cap – Franklin India Oppurtunities Fund 2000/-
Multi Cap – UTI MNC Fund 2000/-
Mid Cap – DSP BlackRock Micro Cap Fund 2000/-
Balanced – Tata Balanced Fund 2000/-
Debt – HDFC High Interest Dynamic Fund 2000/-
As i’m looking for an long term investment, have chosen 80% Equity and 20% debt to start with. Will be increasing this investment by 15% every year. My aim is not wealth gain but to look for long term financial planning and build a decent corpus by the time I turn 50.
Please advice if this looks good
Pradeep-How you selected these funds?
Multiple reasons.
1. Gathered ideas based on your blogs
2. Searched through moneycontrol/wealth18/crisil for top performing funds
3. Looked into online portals like fundsindia/scripbox/investmentyogi trying to get some idea on the portfolio based on what risk I can take at this stage
3. With my basic understanding, also looked into the below facts
a. how long the fund has been active
b. brand
c. minimum 5 years returns
d. very scarce analysis on expense ratio and trail commission; understand these indirectly gets deducted from NAV
Please advice.
Pradeep-Franklin is not fully large cap fund but large and mid cap. You can replace this with Franklin Bluechip. I am not a fan of sector funds. Hence, invest at your risk in UTI MNC Fund. Instead of DSPBR, I am inclined towards HDFC Midcap Opp. You can continue TATA. HDFC High-Interest Dynamic Fund-Income funds are riskier than short-term funds. You already having risk exposure by investing in equity. Your major motive of investing in debt is to reduce the risk and get a decent return from a bond market. Hence, replace from Income Fund to Short Term Debt Funds.
Thanks for the reply Sir.. Guess I need to do more homework.
Are you a fee only FP?? Can you help me with the planning?
Please provide me your contact info.. or you can email me at marcus.pradeep@gmail.com
Hi Basavaraj,
I am new to mutual fund. I am 31 years old. I am a government employee. Your website is a unique one to pick quality mutual fund especially for beginners. I regularly read your valuable comments. After analyzing your all tips regarding MFs I am planning to start SIP in below mentioned mutual fund more than five years.
1. ICICI Prudential Focussed Blue Chip Equity (G) (Large Cap Fund) Rs.1000.00/month
2. HDFC Midcap opp Fund (G) (Mid and Small Cap Fund) Rs. 1000.00/month
3. HDFC Balanced Fund (G) (Balanced Fund) Rs. 1000.00/month
4. ICICI Pru Tax Plan (G) (Tax Saving Mutual Funds) Rs. 1000.00/month
Please check whether my above funds are overlapping or not.
Can I continue with these funds?
Can I increase amount Rs. 1000/- any time after purchasing these funds?
Are above funds taxable?
Thank you very much.
Best regards
Dr. Anjan Dandapat
Dr.Anjan-Funds are good. You can go ahead. Yes, you can increase your contribution in future.
Dear Sir, I am 33 yrs and i want to start investing towards buidling corpus when i become 55 yrs.
I want to invest 50k every month in almost all sectos of mutual funds i.e. large cap, medium, small cap, balanced etc. When i check ur suggested list of MF’s, i was thinking if i could start inversting 5000/- in all the 10 MF’s name you suggested. Is it fine or u suggest something else? Many thanks, Anil
Anil-A large cap, small and mid cap and a balanced fund, these three are enough. Investing in more funds will not serve any purpose of diversification.
Overlapping of MFs:
……………………….
ICICI Prudential Focused BlueChip Equity-G Overlapping 49%
ICICI Prudential Tax Plan-G
HDFC Balanced Fund-G Overlapping 31%
HDFC Mid-Cap Opportunities Fund-G
HDFC Balanced Fund-G Overlapping 29%
ICICI Prudential Focused BlueChip Equity-G
HDFC Balanced Fund-G Overlapping 22%
ICICI Prudential Tax Plan-G
HDFC Mid-Cap Opportunities Fund-G Overlapping 7%
ICICI Prudential Focused BlueChip Equity-G
HDFC Mid-Cap Opportunities Fund-G Overlapping 7%
ICICI Prudential Tax Plan-G
If I replace ICICI Prudential Tax Plan-G with Axis Long Term Equity Fund-G (ELSS), following overlappings are found.
HDFC Mid-Cap Opportunities Fund-G Overlapping 11%
Axis Long Term Equity Fund-G
ICICI Prudential Focused BlueChip Equity-G Overlapping 24%
Axis Long Term Equity Fund-G
HDFC Balanced Fund-G Overlapping 15%
Axis Long Term Equity Fund-G
If I replace ICICI Prudential Tax Plan-G with HDFC TaxSaver-G, following overlappings are found.
HDFC Mid-Cap Opportunities Fund-G Overlapping 17%
HDFC TaxSaver-G
ICICI Prudential Focused BlueChip Equity-G Overlapping 38%
HDFC TaxSaver-G
HDFC Balanced Fund-G Overlapping 30%
HDFC TaxSaver-G
In case of Axis Long Term Equity Fund-G possess beta 0.82, sharpe ratio 2.67, Jensen Alpha 62.3% etc.
From the above overlapping, Can I consider Axis Long Term Equity Fund-G (ELSS) in place of ICICI Prudential Tax Plan-G? How much overlapping can we consider for investment?
Dr.Anjan-You can consider Axis over ICICI. Ideally if the overlapping is less than 40% then it will be better. At the same time, there is no such hard rule to say. But the motive is to minimize the overlapping.
Thanks for your reply. According to you, I can increase contribution in same scheme and same plan. Now I wish to clear my confusion regarding Increasing SIP Model. Every year my salary is increasing. Suppose, I am investing Rs. 1000/month through ECS in HDFC Midcap opp Fund (G) – Direct Growth for first year 2015. In 2016, if I want to increase Rs. 2000/month (through ECS) in same plan under same folio no. What is the way to increase the SIP amount when investing in a particular fund? Can I do so without disturbing my existing investment? I contacted AXIS Mutual fund. According to them, I can not increase Rs. 2000/month through ECS mode in same plan under same folio no. from 2016. Application SIP amount will be deducted every year. They suggested that on online I have to make fresh SIP application under same folio no. and I can deposit any amount in any date through NET BANKING, not through ECS. I also contacted ICICI Mutual fund, they have SIP Top up facility half yearly/annually. But I am not interested in SIP TOP UP. I want to deduct Rs. 2000/month through ECS mode every month from next year. Is it possible for AXIS/HDFC/ICICI?
Dr.Ranjan-If you want to increase your contribution only for a month then you can do it as a lump sum. However, if you want to contribute to the same fund by increasing your monthly contribution then do it by registering a fresh SIP in same fund under same folio. You can do so with all mutual funds. Don’t confuse yourself. Next year when you want to increase Rs.2,000 more, then register a fresh SIP.
Hi Basavaraj,
I want to start sip. My age is 32 years. I am investing 1.5L in PPF. On a monthly basis, I want to invest 40,000 thru’ SIP.
I have selected only one Large cap “Franklin India Bluechip” fund to start this sip. Do you think this is right strategy?
The reason is, if I take a look at Large/Medium/Small cap/Balanced funds performance over a period of time i.e. for long term, the returns of most of these mutual funds are close to 16%-17% expect 1-2 funds which has shown higher returns. My reasoning is why to risk in taking small cap if large cap funds are giving me almost same returns and are less volatile? Am I missing anything.
Please advise if i need to add any other Mutual Fund and is yes, what would be the reasoning behind this?
Hello sir l had invested Rs 10000 each in Franklin templeton bluechip, reliance growth fund, Icici prudential discovery fund and icici export and services fund all in dividend option in 2005. All amounts have grown to around Rs 50000. Now I came to know that growth option is better. I intend to keep invested for another five years. Should I switch over to growth option now? Also should I continue with same schemes. Your advice would be greatly appreciated.
Ganesh-I am bit skeptical about Reliance and ICICI Export Fund. What option you currently opted?
Hello Sir,
Just i was reading your comment about ICICI export and other services. I am also planning to include ICICI export and other services fund in SIP portfolio. According to Money control it is Rank 1 in diversified fund(Multicap) category and when i was checking the CRISIL consistent diversified mutual fund ranking, this fund is always Rank1 or Rank 2 since last 5 year.
Also when i was checking from Value research tool for highest return in all category(Large, Mid &small, large and Mid, balanced) of equity mutual fund for 1 year/2 year/3 year/5 year, this fund is always in top 10-15. One more point i have noted that this fund has maximum investment 42%in Pharma & 29% in Technology .
So please suggest why we should not include this fund in portfolio.
Thanks & regards
Rohit
Rohit-Invest at your own risk. I am bit uncomfortable to expose myself to any one or two specific sectors. I need diversification.
Sir presently I am holding these funds in dividend option
Ganesh-Whatever it may be.
Gaurav-I respect your logic. But to diversify your money, you need a small/mid cap fund (even though in a small portion).
hi please comment on below funds how r they.
CANARA ROBECO EMERGING EQUITIES – GROWTH- 3000/month sip
Franklin India High Growth Companies Fund- 3000/ month sip.
can i continue with thesefunds.
Shashi-Both are good but I am assuming that you selected these two funds because of STAR ratings. But without knowing your time frame and goals, it is hard for me to say GOOD or BAD.
my term of investment is more than 5 years.
Shashi-More than 5 years, but when? I need the tentative year of withdrawal.
I am new to this. I want to invest in SIP of Rs. 5000 for 3 years. I am planning to invest in the following MFs,
Franklin India Bluechip Fund(G) – 1000
ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 1000
SBI BlueChip Fund-Reg(G) -1000
Reliance MIP(G) – 2000
I am really new, your help will be appreciated. I am a moderate risk taker. So, suggest me some good SIP investment option.
Thanks in advance.
Onkurananda-But to be frank, no EQUITY for 3 years time horizon.
Hi Sir,
I am new to mutual fund, want to invest 50,000 each in 2 mutual fund for long term planning. somebody suggested me Axis log term plan.
Please suggest 2 or 3 fund where i can invest as one time.
Regards
Mohit-Why two mutual funds? What do you mean by LONG TERM? On what basis they selected Axis fund to you?
Hi Sir,
I am planning to start SIP in below mutual fund (ten thousand each-total 40000 INR per month) for 10 year plus time line.
1. ICICI focused blue chip – 10000 INR – 5th of every month
2. UTI mid. cap -10000 INR-10th of every month
3. Franklin High growth fund -10000 INR -15th of every month
4. HDFC balance fund -10000 INR -20th of every month
Is it ok or shall I split 10000 INR in four installment e.g. 2500 rupee for all mutual funds on 5th, 10th, 15th and 20th day of every month. So it will be 10000 INR distributed for each mutual fund in four days in a month.
Please advise me which option will be best for maximum return considering the market volatility every month.
Thanks & regards
Manjunath
Manjunath-Why the different dates of SIPs? It will not serve any purpose in long run.
Hi Sir,
So you are suggesting to invest all 4 SIP in a single day of month. For e.g on 5th of every month invest all 4 SIP .
Thanks & regards
Manjunath
Manjunath-Yes.
Hello Sir,
I am planning to invest Rs. 2000 each through SIP in the following funds for 5 Years. Please give your valuable feedback.
1.Tata Mid Cap Growth Fund (G)
2.ICICI Pru. exp.& other service Rp (G)
3.UTI MNC Fund (G)
Saju-No equity if your time horizon is less than 5 yrs.
hello sir, this is my portfolio
1.kotak select focus fund-2000
2.Sbi blue chip fund-2000
3.Hdfc midcap opportunities fund-2000
4.Idfc premier equity fund-2000
5.Sbi pharma fund-1000
6.Uti mnc fund-2000
7.Axis long term equity fund-1000
sir , i would like invest PPFAS LONG TERM VALUE FUND 3000 sip can i add this fund in my portfolio
Akash-Whether these many funds required?
Dear Basava Raj,
Thanks in advance for your valuable advise…
I am investing in below given MFs SIP for last 7 months
1-Reliance Equity Opportunities -5000 per month(2500+2500)
2-Reliance Growth Fund Growth -2500 per month
3-Reliance Small Cap –2500 per month
Could you please advise should i continue to stay invested or switch?
My target time frame is more than 5 years.
Yunu-Why only RELIANCE? I personally not satisfied with Reliance Growth and Reliance Small Cap.
Dear BasavaRaj,
i am also in a plan for switch..Could you please suggest 2 other SIPs to replace with these two..
I will keep investing in equity Opportunities .
Yunu-Select one from large cap and another from small/mid cap from the above list.
Thanks for your advice, but I’m still confused.
I want to invest 1000 /- for 5yrs &
1000 /-in 10 yrs.
One Through SIP and other through ELSS for tax saving.
Tell me which fund good for me????
Chetana-You can invest Axis for 5 years and HDFC for 10 Yrs term. But keep in mind that, I still suggest you to enter into Axis only in case your waiting period is more than 5 years or so. SIP is a mode of investment but not a product. You can invest in ELSS through SIP mode.
Hi Basav,
This is Abhijeet here. I have planned to start investing in MFs from next month onwards via SIP. My age is 32 and I am ready to invest long term for a period of 15 years or so. Current goal – to build up a corpus for early retirement 🙂 (may change later).
Thanks to your website, I have learnt a lot in the past few weeks about investing via MFs (I knew very little about MF investing before that). Based on the learning, I have created a 5 scheme portfolio as starting point. Following are the funds selected:
1. UTI Equity Fund (large cap)
2. HDFC Mid-cap Oppurtunities Fund (G) (small & mid cap)
3. Reliance Regular Savings Plan (G) (diversified/multi cap)
4. HDFC Balanced Fund (G) (hybrid/balanced)
5. ICICI Pru Long Term Fund – Regular Plan (debt income)
I am open to taking risks and have planned to start with an initial SIP of 5000 per month. Will increase it steadily thereafter.
How I arrived at this list: Well I have “sort of” averaged the various parameters associated with MFs like the std. deviation, alpha, trailing returns, top sector weights, etc. for the above mentioned funds. The averaged values seemed good to me and hence the combination of these funds. And yes of course this particular article of yours helped a lot. Also as suggested in one of your articles “mutual-funds-are-you-really-diversifying-your-investments”, I have tried to make the portfolio balanced. But still some important sectors like energy and FMCG have less weights.
Please suggest whether the above mentioned schemes are suitable or not.
Thank you very much.
Best regards
Abhijeet
Abhijeet-I am bit skeptical about your Income Fund selection of ICICI. They are more volatile in nature in an asset class of debt. You already have equity which is volatile in nature. Then why to have more headache of investing in one more volatile fund? If you really try to diversify then HDFC Balanced fund is good enough. Becuase this fund allocate around 35% in Debt and provides you the tax efficiency of an equity fund. However, if you still want to diversify your investment in debt funds then my selection is short-term debt funds.
Thank you for your suggestion and point taken.
Will have a re-look at the portfolio and try to make it little less risky and post it again. Will also have a look in to short term debt funds as pointed out by you.
If you have any other suggestion please do let me know.
Best regards
Abhijeet
Ok, I did more research and came to know about the pitfalls of debt income funds. They are not good especially the long term ones when the interest rate fluctuates. Your article about the “Credit opportunities fund” also helped a lot. Also got to know how to prepare a proper portfolio. So, now I have created a “core” part and the “satellite” part of the portfolio.
1. UTI Equity Fund (large cap)
2. ICICI Prudential Top 100 Fund (G) (large cap)
3. HDFC Balanced Fund (G) (hybrid/balanced)
4. HDFC Mid-cap Oppurtunities Fund (G) (small & mid cap)
5. Reliance Regular Savings Plan (G) (diversified/multi cap)
The first three funds make the “core” and the last two “satellite”. The expense ratio of ICICI Pru Top 100 Fund (G) is little bit on the higher side but still it seems ok.
I did consider the ICICI Pru Focussed Bluechip Equity Fund, but that makes the portfolio little bit heavy on banking/financial sector. Otherwise it is a good fund to go for.
Please advise about the above combination.
Thank you.
Best regards,
Abhijeet
Abhijit-Why two large cap funds? Also, whether you checked fund overlapping?
Ok, I think I am getting your point. I may be making a mistake by sticking to a 5 fund strategy in the portfolio. I will trim it down to 3 or 4 funds to make more sense.
In one of your articles there was a spreadsheet to calculate fund overlapping. I will check it today and let you know.
Thank you very much.
Best regards,
Abhijeet
Abhijeet-Sure and do it before investing.
Ok, I did the fund overlapping exercise. A very big thanks to Mr. Pattu for that wonderful spreadsheet. This exercise revealed some interesting results.
First with the five fund portfolio that I had posted earlier. These are the results:
———————————————————-
UTI Equity Fund 28%
ICICI Prudential Top 100 Fund – Regular Plan
UTI Equity Fund 44%
HDFC Balanced Fund
ICICI Prudential Top 100 Fund – Regular Plan 36%
HDFC Balanced Fund
—————————————————————-
HDFC Balanced Fund 48%
HDFC Mid-Cap Opportunities Fund
HDFC Balanced Fund 28%
Reliance Regular Savings Fund – Equity Option
HDFC Mid-Cap Opportunities Fund 12%
Reliance Regular Savings Fund – Equity Option
————————————————————–
As evident from the above results, the % overlap was quite high in 3 fund combinations.
Hence, 5 fund portfolio scrapped. Removed ICICI Prudential Top 100 Fund – Regular Plan from the portfolio.
Now with the new 4 fund portfolio, I again ran the overlap calculator. Results are as follows:
————————————————————–
HDFC Balanced Fund 8%
UTI Mid Cap Fund
HDFC Balanced Fund 28%
Reliance Regular Savings Fund – Equity Option
UTI Mid Cap Fund 12%
Reliance Regular Savings Fund – Equity Option
—————————————————————-
UTI Equity Fund 44%
HDFC Balanced Fund
UTI Equity Fund 20%
UTI Mid Cap Fund
HDFC Balanced Fund 8%
UTI Mid Cap Fund
————————————————————–
This time the % overlap reduced a lot. The overlap was high only in one combination. But is it possible to reduce this overlap also? Hence, I tried with the following 4 fund combination (replaced HDFC balanced fund with ICICI balance fund):
1 UTI Equity Fund (Large Cap)
2 ICICI Prudential Balanced Fund (G) (Hybrid/Balanced)
3 UTI Mid-cap Fund (Small & Mid Cap)
4 Reliance Regular Savings Plan (G) (Diversified/Multi Cap)
% overlapping results for the above selected funds are as follows:
——————————————————-
UTI Equity Fund 8%
ICICI Prudential Balanced Fund – Regular Plan
UTI Equity Fund 20%
UTI Mid Cap Fund
ICICI Prudential Balanced Fund – Regular Plan 16%
UTI Mid Cap Fund
—————————————————————–
ICICI Prudential Balanced Fund – Regular Plan 16%
UTI Mid Cap Fund
ICICI Prudential Balanced Fund – Regular Plan 16%
Reliance Regular Savings Fund – Equity Option
UTI Mid Cap Fund 12%
Reliance Regular Savings Fund – Equity Option
—————————————————————-
UTI Equity Fund 8%
ICICI Prudential Balanced Fund – Regular Plan
UTI Equity Fund 24%
Reliance Regular Savings Fund – Equity Option
ICICI Prudential Balanced Fund – Regular Plan 16%
Reliance Regular Savings Fund – Equity Option
——————————————————————–
So this time the % overlaps for all combinations are well within the limit of 30-40%.
Well, for the above fund combination the “averaged” std. deviation is little bit on the higher side, but again alpha is good. However, sector wise distribution has become little skewed. Banking and automobile takes up approximately 33% of the portfolio. The trailing returns over a 5, 7 and 10 yr period are good.
Sorry for the very long post, but I just wanted to share my findings.
Kindly provide your comments/suggestions.
Thank you.
Best regards
Abhijeet
Abhijeet-Now you are on right track 🙂 See, you can’t totally mitigate the overlap issue. But try to minimize is the solution. Hence, as you said above, maintaining around 30% to 40% is fine. But ICICI may be reducing your overlap issue, it’s expense ratio is almost 0.50% than HDFC Balanced Fund. Hence, I insist to replace ICICI with HDFC. But you have done best homework. This is the way to learn and there is no rocket science in this 🙂
Thank you very much for the reply. And yes you said very correctly about the lower expense ratio for the HDFC balanced fund. So, the finalized MFs in the portfolio are as follows:
1. UTI Equity Fund
2. HDFC Balanced Fund (G)
3. UTI Mid-cap Fund
4. Reliance Regular Savings Plan (G)
I have decided to review the portfolio performance on a yearly basis and make necessary changes only after a period of 3-5 years. I hope that I get some good returns.
Now I have to figure out the best way to invest i.e. via direct plans or via online portals or via karvy/cams. I am tending towards direct plans from the associated MF house. But I have to figure out how to properly fill-up those lengthy forms 🙂
I will do more research this weekend about this MF form filling and keep everything ready 🙂
Markets are in a turbulent phase currently and little bit on the down side. Hence, I feel its the best time to start this SIP.
If I come across any hurdle, I will post again for your valuable opinion.
Thanks again Basav.
Best regards,
Abhijeet
Abhijeet-You can go ahead with these funds. Regarding direct investment, you have to take some initial pain to be beneficial in cost. No short cut in this. Because you have to do KYC only once and need to visit three mutual fund companies (UTI, HDFC and Reliance). Also, if you found any doubt then mutual fund companies help you in this regard.
Hi Abhijeet/Basavaraj,
I have decided to start MF investment for long term purpose and more inclined to the ones selected by you. Probably all of them or at least 3 of them.
Now the question that I have in mind is whether to do it Direct or Online. I would like to do it direct, but I have couple of question there.
1. Can we make the installment payment via Online mode? or do we need to visit the fund house for every installment?
2. Where can we do the KYC in Bangalore?
3. Do we have all the three fund houses in Bangalore?
4. Is there a common platform where we can monitor our portfolio?
Also, can you please share some reference for me to understand the taxation on Mutual fund.
Kindly share your thoughts.
Thank you for this wonderful article.
Regards,
Charls
Charls-1) Once the folio created then you no need to visit to mutual fund office. You can do it all transactions online. 2) Along with your first investment, you can proceed for KYC. Either you can visit the respective fund houses or CAMS.3) Yes and check the address by visiting respective funds portals. 4) You can use the platforms like valueresearch, moneycontrol or prefios. What doubts do you have regarding taxation?
Hi Basavaraj,
Thanks for your quick response.
Here is the questions that I have about the taxation,
1. I know there is no taxation on Equity mutual fund if it is held for more than 1 year. I would like to confirm that.
2. Out of the above mentioned 4 funds, since HDFC Balanced Fund has debt fund involved, will it be considered as non-equity Mutual Fund. If yes, how does the taxation work for this?
3. How does the short or long term capital loss on Equity Mutual fund considered for tax exemption?
4. Will there be a taxation on the dividend paid on the equity mutual fund? How does it work for HDFC Balanced Fund if it is not considered as an equity mutual fund?
Regards,
Charls
Charls-1) Yes your knowledge is correct. 2) This is the advantage of having equity balanced funds. Your debt portion will be tax-free. These debt funds are equally treated like any other equity mutual funds. Because they invest around 65% of portfolio into equity. There are specific rules to carry forward the losses (which I can’t explain in commenting. However, I will soon a post on that). Dividend income is tax free in the hands of investors.
Thanks a ton Basavaraj. This information really helps me.
Hello Sir,
I have surplus of 1 lakh rupee. I wanted to invest this for minimum 7 year (may be extend for even long duration if I don’t require at that time). I am having SIP running for UTI equity, UTI mid cap, HDFC mid cap and HDFC balance fund.
I need your suggestion for how to invest this 1 lakh. Shall I do lump sum of 25000 each in these four fund (As market is going down these days) or 50000 each in one Mid cap and one Balance fund.
Also shall I invest this equally in one mid cap and balance fund splitting the money in 6 month.
Please suggest
Thanks & regards
Pratap
Pratap-Use the existing balanced fund for this investment.
Hello sir,
Thanks . As per your suggestion i should invest 1 lakh in HDFC balance fund.
But my other query is shall i invest in one shot or split the money in 3 or 6 month(considering minimum investment period is 7 year).
Thanks & regards
Pratap
Pratap-No login in doing that.
First of all thanks for your valued guidence,
I am planing to do SIP each Rs 3000 for the below funds, what is your view please?
Icici pru value discovery
Franklin india high growth fund
Sundaram Mid cap fund
DSP BR Micro cap fund
take care
g.rajesh
Rajesh-What is your timeframe?
3 years
Rajesh-A strict NO to any EQUITY INVESTMENT. Rest is left with you 🙂
Ok thanks for your view, we’ll follow.
Since it was planned 3 years, are you saying NO to equity fund or other reasons for NO?
What could be a good fund for minimum growth around 12% p.a?
thanks
g.rajesh
Hello
Bsu can you tell me your view about
ICICI prudential money market fund growth
And it is worthful to be in this liquid fund
Kumar-Please read my earlier post “What are Credit Opportunities Funds?” to understand about debt funds. I usually not think too much when to invest in liquid funds. Reason is, primarily they invest in low duration papers which are high in credit rating. This fund primarily invest in the P1+ credit rated instruments. P1+ rating indicates ‘very strong’ safety regarding a timely payment of interest and principal. Also, you invest in liquid funds only for short duration with aim of protecting principle and earn a bit. Hence, go ahead.
so it is the best liquid fund or any other recommendation from you
and any other precautions from you
and pz tell me
i am going to invest in
ICICI pru money market fund direct growth
and how many days it require to redeem
and exit load of it
and can we say it is like
FD ( if we use it as a lump sum purchase) +RD (a monthly SIP) and + SAVING account
?????
Kumar-It is a liquid fund with NO EXIT load. You can compare such liquid funds to your savings account or any short term FDs. Ideally such funds are used to park your immediate required cash. Regarding the redemption procedure, contact the respective mutual fund company.
Kumar-As I said earlier, usually liquid funds invest in short-term plan which are high in credit rating. Hence, no extra caution and you can go ahead.
basu is theer any TDS or any other tax or penalty on liquid funds
Kumar-There is no TDS. However for tax treatment, they treated as debt funds. Hence, if you withdraw the money within 3 years then the return is taxable according to your tax slab. If it is more than 3 years then it is taxed at 20% with indexation benefit. To know more about taxation of Debt funds, read my earlier post “Budget 2014-Debt Mutual Funds Taxation“.
Basu let us suppose if i am investing 3000 /month and on time to time i add lump sum amount in it and my tax bracket is 10% and i kept money in liquid funds for more than year and time to time i am withdrawing money as well then what is the scenario if u can tell me it would be beneficial for me.
AND
if i compare fd or rd with liquid fund then there is any option which is superior in terms of tax saving or all they are equal
Kumar-In case of frequent investment and withdrawal, the rules applies same. The first invested will be considered as first out. Ideally one must keep their immediate required money into liquid funds. Hence, without understanding your requirement, it is hard for me to guide.
Hi
I have started with 3 SIP/month for 1000 each . I want to keep on investing for the next 10 years and above
Franklin India Smaller Companies -Rs1000/month
HDFC Balanced Direct-growth option – Rs1000/month
UTI Equity Growth – Rs1000/month
please confirm, wheterh I have selected right plans for investement , or do i need to make any chnages.
I am also planning for 2 new SIP’s. should I go ahead with the below new plans for my portfolio ?
ICICI Prudential Focused Bluechip Equity Fund – Rs1000/month
Axis Long Term Equity fund (GROWTH) ELSS – Rs1000/month
Awaiitng positive revcert from your side.
Thanks in advance
Padmanappa-The existing funds are good and you continue with them and no need of any additional funds for your fresh investment (apart from ELSS).
I am new to MF and would like start investing 10k per month. I am looking for long term investment (approx 10 years).
Could you please suggest me the funds.
Pardharadhi-You can start with one large cap and one small/mid cap fund.
Hi Sir,
I am planning to invest in below mutual funds.Are the funds fine and if not Please suggest which funds are fine.
ICICI Prudential Focused Bluechip Equity Fund – Regular – Growth ———– LargeCap ———– 5000/-
Franklin India High Growth Companies Fund-Direct Plan (G)————- Diversified Equity—— 2000/-
HDFC Balanced Fund – Direct Plan – Growth Option————— Balanced———— 2000/-
Franklin Build India Fund – Direct Plan (G)———— Thematic – Infrastructure———- 2000/-
RELIANCE SMALL CAP FUND – DIRECT GROWTH———— Small & Mid Cap——— 2000/-
UTI Transportation and Logistics Fund – Direct Plan (G)———– Sector – Others————- 2000/-
Thanks,
Ravi
Ravi-Instead of Reliance, I personally feel HDFC Midcap Opp fund is good. I am not a big fan of thematic funds. It is left with you.
Thank you very much sir.
Thanks,
Ravi
Hi Basu,
Am planning SIP (5K PM) in below MF’s with horizon of 10 years.
1) Large Cap >> ICICI Pru Focused Bluechip >> 1000 PM
2) Mid Cap >> Franklin India Smaller Cos >> 3000 PM
3) Balanced >> HDFC Balance >> 1000 PM
Please advise your opinion. Any other fund should I opt instead of those listed above?
Regards,
Abhishek
Abhishek-Funds are fine, but I feel bit risk of investing more in small/mid cap fund for a goal of 10 years. Hence, be inclined more towards large cap. Otherwise, distribute Rs.4,000 among these two funds.
Thanks Basu!!!
Hello Basu
Currently i am investing in
ICICI PRUDENTIAL VALUE DISCOVERY FUND
BNP PARIBAS LONG TERM EQUITY FUND
AND
SBI FMCG FUND
AND THINKING OF STOPING SBI FMCG FUND AND PLANNING TO GO WITH
ICICI PRU FOCUSSED BLUECHIP FUND DIRECT PLAN
IS IT RIGHT IDEA AND HOW I DIVIDE MY MONEY IN THESE FUNDS BY PERCENTAGE
LIKE IF TOTAL IS 100 %
PLEASE TELL ME
Regards
Nitish kumar
And also tell is these are right funds for future point of view in long term investment and what i do with invested SBI FMCG Investment
Nitish-Split equally among both ICICI funds. However, if your goal is more than 15 years or so then allocate more towards value discovery fund.
Okk
is my portfolio is perfect with these three funds for next 10-15-20 years
ICICI BLUECHIP FUND AS DIRECT PLAN
ICICI VALUE DISCOVERY FUND
AND
BNP PARIBAS LONG TERM EQUITY FUND
AND ALSO GIVE SOME VIEWS ABOUT THIS PORTFOLIO IF U CAN?
Kumar-Go ahead.
Basu one more thing currently i am investing in icici value discovery regular fund
i want to increase my SIP and i also thinking of investing this through direct plan
can i am able to do this and if it is then how it will be treated
As a new fund
or
further addition but in direct plan
?
Kumar-Using the same folio number of what you are having for ICICI Value Discovery Regular, you can invest in DIRECT plans too. The only thing you need to take care is, in ARN number field mention as DIRECT and along with fund name also DIRECT (like ICICI Value Discovery Fund-Direct-Growth).
And Basu if i want to convert existing Regular units of ICICI value discovery fund
then the existing units average remain same like 1 or 2 NAV difference
or
When i convert them to direct then all the money i invested suppose 50000 upto till date then new units of 50000 rs of particular that day NAV again purchases and my avg is changed to Current NAV of direct plan .
As said by you i can purchase under same folio no ok
but the question is
is it treated as a new MF under my folio or it add new units to my regular plan
and
Pz suggest me i start New Direct plan or in same regular plan because i think in new Direct plan i have to start it from 1st day.
kindly give your suggestion
and the other ques is
in Online purchase it asks for SIP from and To date
can i enter max to date and close SIP when i want or if if i give 2 years time
and from 3rd year i again renew it then new purchase under same MF and same avg which i maintain or it starts a new avg after renew.
plz guide me .
Kumar-It is treated as fresh investment but under the same folio. When you receive a statement, then you see a regular investment as separate and direct investment in another part. Both investments are treated as separate. You can close your SIP at any point of time (30 days prior notice is to be given). In the same way, you can again start a SIP at any point of time.
Kumar-Try to transfer only after completion of 1 year to avoid any tax. Because such transfer is considered as withdrawal from regular fund. NAV of respective funds for redemption and investment will be applicable for redemption and investment.
Hi Basu,
Please share your views on Ready to go Portfolio of Fundsindia as given below:
1. Mirae Asset India Opportunities Fund – Regular Plan – Growth
2. Religare Invesco Mid N Small Cap Fund
3. Franklin Build India Fund
4. Birla Sun Life Dynamic Bond Fund – Retail Plan
Should I proceed with investment in the same ?
Regards,
Ashish
This one is named as The New India Portfolio & allocation will be as given below:
1. Mirae Asset India Opportunities Fund – Regular Plan – Growth 40%
2. Religare Invesco Mid N Small Cap Fund– Growth 20%
3. Franklin Build India Fund– Growth 20%
4. Birla Sun Life Dynamic Bond Fund – Retail Plan 20%
I am planning to invest 25000.00 lumsum in the same.
Ashish-The new India portfolio may be constructed well by investing in best companies with two funds like one large cap and one small/mid cap fund. Rest is left with you to follow.
I’m investing under below, please suggest and recommend any correction if you may please. would be really greatful. horizon 15 years..
ICICI focussed bluechip equity growth – 3000/month
franklink india blue chip – 3000/month
DSP black rock top100 – 3000/month
HDFC prudence – 2000/month
HDFC top 200 – 3000/month
HDFC balanced – 2000/month
idfc premier quity g- 3000/month
birla sunlife mid cap fund plan – G – 3000/month
please suggest if i may discontinue some and consolidate?
Vineet-Three funds are enough one Bluechip, one balanced and IDFC.
Mr. Basu,
Thanks a lot for your kind information.
With the help of that I have just invested in following three MF via monthly SIP(ICICIdirect.com) for the first time as totally new for MF investment.
Franklin India Prima Plus Fund(G) – 4K
HDFC Midcap Opp Fund(G) – 2K
HDFC Balanced Fund(G) – 4K
My question is whether my selection is correct if go for 5+ years at least with same MF.
Second, as you use to advise like 2014 best 10 MF or 2015 best 10 MF then how can we continue for 5+ years with the same funds as I hope you will guide with 2016 best 10 MF.
With thanks and regards,
Singh-You can go ahead with the funds only you have a time horizon of more than 5+ yrs. You notice from my 2014 recommendations to 2015. Many funds are same. If the recommended funds continuously under perform, then I update the same in my next year review. So it does not mean that, if I am writing a post on yearly base means I churn my fund selections. Please note that, the option you opted to invest is costliest one.
Thanks a lot for your reply.
Sir,
I have started SIP in the following funds 6months back.
1) Franklin India blue chip (2k/month)
2) HDFC balanced fund(1.5k/month)
3) Reliance equity opportunities (2.5k/month)
Now I would like to add ELSS fund(2k/month) for tax saving. I have compared ICICI Pru Tax Plan (overlap 28% to 36%) with all the existing funds. Can I go ahead with ICICI OR Suggest me any other fund??
Thanks,
Brahmananda Reddy.
Brahmananda-Yes, you can go ahead.
Hi Sir,
I started SIPs for 3000/month in below MFs for long term Goals (>10years).
1. Axis Long Term Equity Fund growth — Rs. 1000/Month
2. ICICI Value Discovery Fund growth — Rs. 1000/Month
3. ICICI Focused Bluchip fund growth – Rs. 2000/Month
I am planning to invest 3000 more in SIPs in HDFC balanced fund and 1 more midcap/largecap fund.
Guide me on which one to choose a good fund which will give consistent returns over long term.
Please provide your inputs on above MFs, Are they good or do i need to change or buy any other fund.
Regards
Nishant
Nishant-You can add a HDFC Balanced but not required to add any other funds. You can invest in same set of funds.
Hello Sir,
I’am 32 year old and new to Mutual Fund.
I would like to invest in SIP total 4500 rs per months in 3 fund(1500 reach) for 8-10 years.
Could you please suggest me.
Thanks
Manish
Manish-How you arrived at judgement of only 3 funds?
sir you can suggest me what can be best. friends told me that split ur monthly amount in 2-3 fund
Manish-If you split and the funds invest in same underlying stocks then is it a real SPLIT?
I ‘m not much aware about MF terminology just suggest me fund wherein i can invest my amount 4500 rs monthly basis for 8-10 years.
Manish-Use a equity oriented balanced fund like HDFC Balanced Fund.
This is the first time i am planning on investing in Mutual Funds. I have already invested 1.5 lakh in 80C(PF, PPF and Insurance).
I am planning to invest 10000 pm for another 10-12 years in mutual funds. Below is the portfolio.
Kindly let me know the funds which i can take from these. Planning to take 2 funds from each cap.
Also suggest if i need to change any funds in the portfolio. Do i need to replace a Balanced Fund with a sector Fund.
Debt: (2000 p.m)
Reliance Money Manager Fund (G)- 2015 – 1500
HDFC High Interest Fund – Dynamic Plan – 1500
Large Cap:(2000 p.m)
HDFC Top 200 Fund
UTI Equity Fund
ICICI Prudential Focused Bluechip Equity Fund
Small/Mid:(2000 p.m)
ICICI Prudential Value Discovery Fund Regular-Growth
SBI Small & Midcap Fund
Franklin India Smaller Companies Fund – Direct Plan
Diversified:(3000 p.m)
Franklin High Growth Cos
Reliance Equity Opportunities Fund
UTI MNC Fund
Sector:(1000)
Reliance Pharma Fund
Binesh-I feel one short-term debt fund (like Franklin India Short Term Income Plan), ICICI Pru Bluechip and Franklin India Smaller Companies funds are enough. No need to go for two funds within a category.
Hi Basu,
I am very new to MF and having zero knowledge on this. I am planning to invest some money on MF via SIP. Here below are my requirements. Please guide me.
A. 3k per month for child’s education & future (15 + years)
B. 4k per month for retirement plan (15+ years)
Please guide me, whether I will do 1 SIP or 2 for both the requirements, and where should I invest ?
Thanks,
Jiten.
Jiten-You can chose one large cap, one small/mid cap and another balanced fund from the above list. Regarding how to invest, you have two options. One is to chose an adviser like and invest. Second one is to go for DIRECT (if you feel that you can manage everything on your own). Choice is left with you.
Hi Basu,
Thanks a lot for your advise. Below are the funds I have selected. Please let me know, if any changes required.
A. 3k per month for child’s education & future (15 + years)
1. ICICI Pru Focussed Bluechip Fund (G)-> 1 K
2. HDFC Midcap Opp Fund(G)–> 1 K
3. HDFC Balanced Fund (G) –> 1 K
B. 4k per month for retirement plan (15+ years)
1. Franklin India Bluechip Fund (G)-> 1.5 K
2. HDFC Midcap Opp Fund(G)–> 1 K
3. HDFC Balanced Fund (G) –> 1.5 K
Thanks,
Jiten
Hi Basu,
Adding to above, please advice to include any Tax Saving Mutual Funds (ELSS) to Invest instead of the above funds ?
It would be great, if you can provide me some more insight to these funds (like- equity or debt, % of allocation, risk factor, etc..) . As I said earlier, I have zero knowledge to MF.
Thanks,
Jiten
Jiten-You can use above ELSS funds for your investment. Ideally when you select ELSS then it is purely into equity. However, for a goal of around 10 Years or so, the equity to debt should be around 70:30.
Jiten-Go ahead, but why you not maintained the same ICICI or Franklin in large cap category?
Hi Basu,
I will do 2 SIP for both of my requirements, hence selected alternate large caps.
As you suggested earlier, ELSS is purely equity, hence not going for that. Also you have mentioned, equity:debt=70:30 ratio is good for 10+ years. Here my query is, whether all the above MF I have mentioned are on 70:30 ratio ?
A. 3k per month for child’s education & future (15 + years)
1. ICICI Pru Focussed Bluechip Fund (G)-> 1 K–> (Equity:Debt= 70:30) ?
2. HDFC Midcap Opp Fund(G)–> 1 K–>(Equity:Debt= 70:30) ?
3. HDFC Balanced Fund (G) –> 1 K–>(Equity:Debt= 70:30) ?
B. 4k per month for retirement plan (15+ years)
1. Franklin India Bluechip Fund (G)-> 1.5 K–>(Equity:Debt= 70:30) ?
2. HDFC Midcap Opp Fund(G)–> 1 K–>(Equity:Debt= 70:30) ?
3. HDFC Balanced Fund (G) –> 1.5 K–>(Equity:Debt= 70:30) ?
Thanks,
Jiten.
Jiten-Apart from balanced fund, no other funds constitute the said ratio. You have to create it on your own.
Hi Basu Sir,
Hope you are doing well!
Thanks for making all of us financially literate about mutual funds.
I have invested 3500 Rs in two MFs for a tenure of 10-15 years.
1. Large cap – ICICI Prudential Focused Bluechip Equity Fund ->2000 Rs
2. Small & Mid Cap ICICI Prudential Value Discovery Fund ->1500 Rs
And also thinking to invest another 2000 Rs in a Balanced Fund. So shortlisted the below MFs.
HDFC Balanced Fund
Can you please suggest me if the above MFs are worth investing in.
Shoumya-Yes, you can go ahead.
well written article sir. I need your advice. I am 33 yr old and having moderate risk appetite. I want to invest rs, 10000/- through SIP for long horizon 10+ yr. Note that I have recently started two SIP of 3000 each in UTI equity and HDFC balanced Direct-growth option. I have adequate debt funds like GPF PPF etc. Please advice me 2/3 compatible MF for the same horizon. thanks in advance.
Pradip-You can add a small/mid cap fund like HDFC Midcap Opp Fund. These three funds are enough.
After looking overall I decided to invest in
Axis long term equity fund 1000/-
HDFC balance fund 1000/-
For 10yrs.
Can you tell me is it good for high return amount..??
As I’m new to mf., to start investment should I go to the nearest axis bank or HDFC bank. I’m living at vasai West Mumbai. Tell me how to start.
Please give me the name of the best adviser for mf. And contact number.
Chetana-How you selected these funds? If you are new to MF then what do you mean by HIGH RETURN? HDFC and AXIS Banks are totally different entities than mutual fund companies. If you are new to mutual fund then chose an adviser like me.
Hi Mr Basu,
I have some doubt regarding how NAV is calculated. Some funds NAV is very less (ICIC pru focused..) while some funds NAV is more like (Franklin India Blue..), but both are considered good funds. So how does the NAV is decided for each fund .
Yatin-Even though name matches for both the funds, but the underlying stocks, their cash holding, expense ratio and the date when they started. In case of these two, Franklin is the oldest fund and ICICI started later on. Hence, based on these factors the NAV is fixed. For an investor, the NAV does not matter. What matters to him is how the fund performed from the NAV he bought to a time of selling. Hence, NAV of Rs.10 or Rs.100 is not important but the performance is very much important.
Hello sir,
I am 40 year old. I wanted to invest 50000 per month in MF via SIP.
Currently I don’t have any type loan, having health and term insurance. I have fixed deposit of 3 lakhs,2 lakhs of PPF,2 lakhs in Debt MF and 10 lakhs PF amount. I am doing yearly tax saving limit of 1.5 lakhs via PPF, PF and Insurance premium.
My financial goal is
1. My son graduation-8 year
2. My son post-graduation -12 year
3. Retirement corpus -15 year(at 55 age)
After my analysis I have decided below fund
A. Large cap
UTI Equity fund
B. Mid & small cap
Franklin small companies
C. Balance fund
HDFC Balance fund
D. Multicap/Diversified
Franklin High growth companies
E. Debt fund
ICICI Pru long term
I need your advice on money allocation to different type of fund. Different tools/friends/company financial advisor has given different input. Some says Invest 30%in Multicap,20%large,20%in Mid & small cap, 15% in balance and 15% in Debt fund. Some other says at this age u don’t have any loan so u should take more risk and invest 40% in Mid and small,15% each in large ,balance , Multicap and Debt fund.
Can you please advise me what should be ideal and best allocation of money in 5 type of fund(Large, Mid&small, Balance, Multicap and Debt fund).
Thanks & regards
Harish
Harish-It is hard for me to guide everything through these comments. However, what I can say is, for goals more than 10 years old, you can allocate around 25% to 30% in debt and rest in equity. Again in equity, the fund diversification must be equally spread.
Hi Sir,
Please sugest me a long term dept fund for constant monthly income Rs:3000 per month, for investment of Rs :3L(holding period is 15 years)
Thank you
Sgkrish-The problem is, none of the debt funds will guarantee the said constant stream of income for you. Also, I don’t know whether this requirement is your need or want. Hence, my only suggestion is to first check your requirement properly.
Hello Basavaraj,
First of all i would like to thank you for doing a wonderful job.
It is always a pleasure reading your articles.
Secondly,
I have started a SIP of Rs. 10000/month in the following funds for a period of 10 years.
Please guide me whether the fund selection and the amount allocation is good or not.
1. Axis Long Term Equity fund (GROWTH) ELSS- 5000
2. HDFC Mid Cap OPP Fund (Growth) – 5000
Thanks
Anuj Ajmani
Anuj-You can continue the fund.
Hi,
Pl. guide me how to invest . I am planning to invest 50000 pm.
Presently i have following investment & insurance plan –
50000 per year in PPF
23000 per year in jeevan Anurag LIC
10000 per year in family health insurance
7000 per year – term assurance -sbi smart shield
Umesh
Hi Sir,
I started SIPs for 3000/month in below MFs for long term Goals for 15-20 years.
1. Axis Long Term Equity Fund (G) — Rs. 1000/Month
2. HDFC Mid-Cap Opportunities Fund (G) — Rs. 1000/Month
3. ICICI Prudential Focused Bluechip Equity Fund – Rs. 4000/Month
I am planning to invest 5000 more in SIPs.
Please provide your inputs on above MFs, Are they good or do i need to change or buy any other fund.
Regards
Vivek Singh
Vivek-They are good and continue.
Hello Sir,
I am planning to invest Rs. 20000/month in the following funds for a period of 7-10 years. Please guide me whether the fund selection and the amount allocation is good or not. I am planning for a moderate risk portfolio.
1. UTI Equity Fund (Large Cap) – 7000
2. Franklin India High Growth Companies Fund (G) (Diverified) – 5000
3. Franklin India Smaller Companies Fund (G)(Small & Midcap) – 4000
4. HDFC Balanced(Balanced) – 4000
Thanks
Srirup-If you are moderate risk taker then I think increase your allocation towards large cap and towards balanced fund.
Thank you.
Hello,
I have some amount of funds which I have parked in Bank FD right now. I want to deploy them into MIP plans with higher degree of exposure to equity markets so as to maximise the monthly returns.
In view of the present market conditions which MIP plans would you recommend to get steady monthly income. I am aware of the risks involved in aggressive schemes, but am ready for it.
thanks
Shivakumar-Please define about HIGH DEGREE OF EXPOSURE and MAXIMISE MONTHLY RETURNS. Why only MIPs and how you yourself felt MIPs are best suitable for you?
Hi,
Sir I have started 2 sip per month 1000rs. In ICICI prudential mid cap, hdfc mid cap and also additional amount invest following.
1. ICICI prudential mid cap 25000
2. Hdfc mid cap 25000
3. Motilal oswal most focused 35 fund 22000
4. Religare mid cap fund 25000
5. Mirae asset blue chip fund 25000
6. Franklin India higher growth companies 25000
Please tell about my investment good or bad my waiting period is 15 years.
Also I am investing 30000 per year in P. P. F.
Ajay-Why so many mid cap funds?
Hello Sir,
I am investing in mutual fund with amount 6000/- the way is portfolio through SIP per month.
My portfolio:
ICICI Pru Focussed Bluechip Equity [G] 1000/–
UTI Opportunties[G]- 2000/-
Reliance Equity Opportunities Fund[G]- 2000/-
HDFC Balanced Fund [G] – 1000/-
These fund are not ELSS. Now I want to invest in ELSS fund with amount 6000/- for 7 year.
Should I choose one fund or again go with ELSS portfolio . Please suggest the fund and distribution of money.
Thanks,
Anshu-One fund is enough. Fund name already mentioned above.
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.
Sanchit-Retail investors directly not buy money market. Also what is reason behind for you to invest in money market and treasury bills? What to you mean by decent returns?
Suppos in between 10yrs we want to stop investment & withdraw the money.. We can do this??
Chetana-Yes, you can do this. You can stop further investment and then you have three options-withdraw all money, withdraw partially or let your money go further without any fresh investment.
Should I invest for long period means till retirement… Now I am & my husband both r 30 years…
Want to in invest 1000/- & 1000/- for 10yrs in SIP. Tell me in which sip should I invest with return amount…
Chetana-You can chose a balanced fund HDFC Balanced Fund. Yes, you can invest for a long term of 30 years also. If you are new then go with an adviser like me or someone. Otherwise chose direct options.
hello sir.. i m investing 12000 per month in m.f through s.i.p
sbi blue chip 2000
kotak select foucs 2000
sbi pharma fund 1000
uti mnc 2000
idfc premier equity 2000
hdfc midcap opportunities 2000
axis longterm equity 1000
What is possibility of these funds in long term future…………
Akash-Possibility of future not known to even fund managers too. But we can predict the future by looking at past. So your fund selection is perfect based on past and doing your research then future probability is higher.
Hello sir,
I am 41 year old and investing per month 45000 rupees via SIP in below fund for 10 year+ time line.
1. UTI equity fund-15000
2. Franklin india small com -20000
3. HDFC balance fund –10000
For tax saving I am already saving 1.5 lakhs(PPF and PF).I am already having health, term insurance, emergency fund for 1 year.
I wanted to invest 5000 extra every month for 8-10 year. Here I wanted to take very high risk.
When I have done some analysis via Value research and money control below fund was among highest given return in 1 year,2 year , 3 year ,4 year and 5 year. Please suggest if I can invest in below(sector) fund.
1. SBI pharma -2500
2. UTI transport and logistics fund -2500
Or please suggest some fund to invest where I can take very risk for best return.
Thanks & regards
Rajiv Ranjan
RAjiv-I still suggest you to go with your existing funds. I am not fond of any sector investment. We can’t invest in a sector only because few portals providing them high ratings. We have to understand the business growth and what are possibilities that may affect the sector. If you are not able to do this on your own then better to stick to your old diversified funds.
Hi,
I have started SIP of 5000 per month and wish to continue until 20 years.
This 5000 is being divided into:
1. Reliance Mid and Small Cap (2)
2. HDFC Mid and Small Cap
3. UTI
4. ICICI Prudential
Though we cannot say anything with guarantee; how much money I can approximately accumulate thru this SIP after 20 years?
I have another question, What if any of these companies shut down in between these 20 years, will they return my money before shutting down 🙂 I hope they will because all of them are registered with SEBI; to the best of my knowledge.
My third and last question, if I think any of these funds are not performing well in mid course, can I stop the SIP or not?
Please reply and thanks. And if any of my question is absurd; please forgive because I am new in MF arena.
Piku-Ideal equity return expectation if your time horizon is 10 years or more is 12%. If fund gives you more than that then think it as a bonus 🙂 They settle your money then close the door. So no need to worry. Yes, you have to review these at least once in a year and if not performing well then you have to stop and move to well-performing funds.
I have surplus to invest. How much comfortable we should feel, if time horizon is for 5 years as minimum. what are other options for lump sum on hand.
do you advise to invest in debt fund and transfer from there via STP even if we have time horizon for sure.
Prasad-Please read my recent post “10 best short term investment options in India“.
Dear Mr Baswaraj
I want to invest 6500 monthly for the sort duration 3 to 5 year. pl suggest me the best fund. I am a moderate risk taker
Thanks
Alpesh-Either you can use RDs or Arbitrage Funds or Debt Funds (In case holding period is more than 3 years).
iam 31 years old, iwant to start investing amount in SIP..Please look into my portfolio and kinldy let me know wther they are ok..iwant to invest for a period of 10 years.
And also ihave 1 question- is it possible for me to change my portfolio every plan based upon ratings and performance of these funds?
1. Franklin india blue chip fund or HDFC Equity Fund(G)- 3000 per month
2. Franklin india prima plus or HDFC Mid cap – 3000 per month
3. HDFC Balance fund- 2000 per month
4. Axis LT Equity fund- 3000 per month
5. BANK RD- 2000 per month for liquidity
Ram-I don’t have any issues about your fund selection. However, how much you invest in each fund is totally your call.
I started SIP online for an AMC. Now at the time of stopping this SIP, they are asking me to send formal paper request to them. What will happen if I cancel auto pay option with my bank ? the will recover any penalty for stopping bank auto debit ?
Rampal-Dishonouring of continues 2 SIPs will leads to cancellation of SIP. AMC will not charge any penalty. But your bank will treat as the default of honouring payment and they charge penalty.
Hello sir,
Can you please explain me unit allocation (NAV value) process while purchasing MF via
Direct mode through AMC website. Take example Market (Sensex) is down on Tuesday
by 300 point and if i am buying MF via net banking unit is allocated to me as on
Monday value(Not on down NAV). Market is up by 200 point on Wednesday and if i am buying
MF, unit (NAV)is getting allocated as on Wednesday value.
So my question is when (Time) to buy MF to get benefit of sensex down(Low NAV) while paying
through net banking direct mode.
Some of my friend has suggest that if Market is down on Tuesday, buy MF
on Wednesday morning between 9 to 9.30 AM.
Please suggest me.
Thanks & regards
Rajesh
Rajesh-The cut off time for equity funds is 3.00 PM. If fund is available (whether net banking transaction or after cheque realisation) before this cut off time of a day, then the same day NAV will be applicable. Otherwise the next day NAV will be applicable. For liquid funds, the cut off time is 2.00 PM. So, in case you transfer the fund within 9 or 9.30 AM then Wednesday NAV will be applicable but not Tuesday NAV.
Dear Sir,
I am new to MF. I would like to invest Rs.150000 for long term of 10 to 15 years. Which fund i can choose, Single fund or multifund. Plz suggest the name of the fund.I am expecting 15 to 20% avg return.
Ramesh-One large cap, one small/mid cap and another a balanced fund.
Hi Sir,
I am Investing 2000-00 every month in ICICI Value Discovery Fund through SIP.
Now I would like to invest anothe 2k every month through SIP.
Could you please suggest me the best fund i can choose to invest for 5-7 years period for marriage, money growth.
Thanks.
Hemanth-HDFC Balanced Fund.
Sir,
I want to invest 8000 in SIP. my question are below.
1) I want to invest more than 5 year and need around 1000000 Rs. for children marriage. what will be the portfolio on moderate risk
2)Any debt fund advisable in sip
3)Your view of short term or income fund
4)I am a new in sip.
5) How to bifergate equity and debt fund.
6) I have checked some portfolio there is no any balanced fund.
7) I heared Zip sip sip. it is advisable or not
Requesting pl clarify the same and provide me good portfolio
Patel-Do you know how much you are expecting by investing Rs.8,000 a month for 5 years and expecting Rs.10,00,000? Above that the portfolio you say to be moderate risk. It is staggering 27% return. Sorry, I don’t have any solution to generate such high return within such short span.
Sir,
I can invest 8000 to 10000 Rs per month for 5 year . Requesting pl suggest sip portfolio. also request to clarify some related querry as above. Thanks for guidance
Patel-It is hard to guide according to your expectation. Market or product will not run according to your expectation. 27% return for 5 years of investment?? My ideal expectation for 25 years of expectation is 10% to 12%. Hard to digest your expectation. Only some fraudulent schemes may only generate such high income where your invested principal is also at risk.
Thanks for the guidance. i am new in the subject. But idealy i want to invest 8000 Rs. I want a portfolio size ( % distribution) and how much amount will be generated after 5 year. pl guide me.
Requesting pl. guide me as I selected portfolio for 8000 Rs investment for 5 year. i am expecting your view on how much corpus generated.
ICICI focused bluechip or UTI Equity fund – 25%
Franklin small companies – 35%
Franklin high growth or Reliance equity opp – 25%
HDFC Balance – 15%
or
ICICI Prudential Focused Bluechip Equity Fund (G) 40%
HDFC Mid-Cap Opportunities Fund (G) 20%
Reliance Small Cap Fund (G) 20%
Birla Sun Life Short Term Opportunities (G) 20%
Patel-Five year term means, no equity investment. Rest is entirely left with you.
Sir,
I have saving 20000 Rs per month after all deduting emi, insurance , expences. pl. suggest me the investment. I can hold for the long term.
Patel-Can you define what is long term?
sir, 7 to 10 year
I have chosen 2 funds for monthly investments — Birla Sun Life MNC Fund (having proven track record since 1999) and DSP BR Micro Fund. I wish to start investing every month. But considering how volatile the stock market is these days, will it be any benefit even if I start investing on a monthly basis in these 2 funds ? If such volatile market continues for a long period, then I may find that my wealth has not GROWN much even after sustained monthly investing.. So, what is the way out to GROW my money in this volatile market where the Sensex is falling 500 points one day and gaining 350 points the next day ? I am really confused. What do you suggest ?
Debajyoti-Do you feel the current volatility not there when the chosen fund launched in 1999? Volatility is the nature of the market. Hence, to be a winner you have to invest continuously and stay for long term. Day to day or month to month volatility will vanish when your goal is long term like 10 years or so.
OK, I understand.. Planning should be for a long term like 10 years or more. Fine. But what do you say about the 2 funds that I have chosen ? Those are Birla Sun Life MNC Fund and DSP BR Micro Cap Fund.. Is my choice good enough ? Kindly suggest..
Debajyoti-I am fond of a diversified fund rather than risk my money by investing in any sector. Hence, I rule out Birla Fund. DSPBR is good fund, but slightly I am negative due to expense ratio and standard deviation compare to funds like HDFC Midcap Opp. Because risk will lesser than small cap concentration in HDFC Midcap. Also when we compare historical Risk-Return then it is between 60% to 70% category, whereas HDFC Fund passes the test easily with score of around 80% times. Hence considering the risk, I am expecting decent and comfort return with HDFC rather than high risk and high downsize funds like DSPBR.
Last question : Apart from HDFC Mid-Cap Opportunities (in which I already have a lumpsum investment), I have chosen 2 diversified equity funds for regular investment on a MONTHLY basis. They are BNP Paribas Equity Fund & IDBI Diversified Equity Fund. Are these 2 funds good enough for monthly investing ?
Debajyoti-Why so many funds and do create headache when you already have best funds in your kitty? It will not be wise to think that every time the fund you are investing must be 5-4 star rated fund. Each fund has it’s own ups and down. The person who sticks to his basic philosophy or expected return will only survive. I don’t think it is wise to add on funds whether the said funds are BEST or STAR RATEd.
i am looking for some monthly dividend paying mutual funds for investment.. can u guide me??
Krishy-Why you need monthly dividend?
Hi Sir,
I have the below SIP ..tell me will it give high return after 20 years around.
1) Reliance tax Saver (ELSS) Fund – Growth Plan – 1000 pm , started in July 2011
2) Birla Sun life – Pure Value fund – Growth Plan – 2000 pm and 500 rs Top up every year started from April 2015.
3) HDFC tax Saver Growth – 1000 Rs pm , started in July 2011
4) ICICI produential tax Plan – Regular growth – 1000 pm and 500 topup every year started in years 2011 July
5) ICICI tax Plan Regular growth – 1000 pm started in Year 2011 Dec.
will continue the able all SIP MF for next comig 20 years, it is ok.
Or anything more i need to invest , any other SIP good return , please tell me that i can go for long term 20 years of investement.
Ranjan-If you define yourself about what do you mean by HIGH RETURN and share the same with me then I be in a position to say so.
OK. The sips I have invested will give me good return after 25 years.
Is this sufficient or do I need to have more investment in sip?
I m not an export you know better.pls suggest.
I am an NRI
I already have investment in equity mutual fund. Also ongoing SIP. However, apart from that i have accumulated lumpsum amount. Advise me how to invest that.
If i go to debt fund and then transfer via STP then it is taxable and also not effective if we compare with NIR Fixed deposit.
However , I am also not willing to keep in NRI fix deposit because I have already invested into that. Please advise.
Rashik-Advise depends on your goals. Without knowing how can I guide you?
Hi Basavaraj ,
First time i am planning to invest in Medium risk MF for 10 years and 15 years. Could you please suggest in which MF have to invest?
Regards,
Ravindra
Ravindra-Invest in equity oriented Balanced Funds.
Hello Sir,
Could you please suggest which Mutual Fund I should go for? I want to invest 10000 per month for next 10-15 year?
I have not taken any mutual funds earlier..Only having LIC jeevan saral policy.
Kindly please suggest.
Vishal
Vishal-One large cap, one small/mid cap and one balanced fund from above list.
Hello Basu Sir,
Thanks a lot for your informative blog for investing in Mutual Funds through SIP. I am investing in following SIP’s for 10 years.
ICICI Pru Focussed BlueChip Fund (G) – 3000
Axis Long Term Equity Fund Tax saving (G) – 2500
Please suggest should I continue with these funds or need any changes?
Also I want invest Rs. 2000 more through SIP, please suggest the 3rd best fund.
Please suggest one 50 lakhs term plan.
Thanks in advance.
Regards
Jeet-One is large cap and another is tax saving and both are good. You can continue. Select a small/midcap fund from the above list for your fresh investment.
Basu Sir,
Thanks a lot for your response.
As per your suggestion I am investing with IDFC premium Rs. 2000/month.
How is SBI Pharma, I want to start SIP of Rs. 1500/month for next 10 years, please suggest.?
Also recently I have invested Rs. 50000 one time in UTI MNC, Rs.30000 in ICICI technology fund and Rs. 15000 in ICICI diversified fund, Should I continue or came out of lump sum investment.?
Looking forward for your best advice.
Thanks in advance.
Regards.
Jeet
Hi Basu,
Have shortlisted below MFs for investments – 2000 each pm. Please suggest your views.
1. ICICI Prudential Focused Bluechip Equity Fund
2. Birla Sun Life Top 100 Fund
3. HDFC Mid-Cap Opportunities Fund
4. HDFC Childrens Gift fund
5. Axis Long Term Equity Fund.
I am aware that most of the times you have suggested not to have a long list and select 2 or 3 . Not sure why but i feel risk will be balanced out with more options. Am i wrong?
Planning to go for DIRECT option. Do i have to submit KYC with each and every AMC seperately or can it be done for one and used for other AMCs?
Sanjay-What risk you are mitigating? Having too many funds create overlap and not a diversified portfolio. Also, it is hard to manage your investment. According to you if you try to invest Rs.1 Lakh a month then you select 50 funds so that risk will be BALANCED. However, when you check the underlying sector or stocks what these 50 funds invest is almost SAME. So, how can you say that the risk is balanced? KYC is one time process and you have to do it initially with first AMC.
Thanks Basu. I thought even if 1 fund does not do well, the other funds may balance that and thought that would be mitigating risks. However, you have informed that most funds invest in same set of stocks. So, as you said, it will create an overlap and difficulty in managing funds or portfolio. Can you suggest 3 from the above list? Or do you suggest a different list?
Sanjay-ICICI, HDFC and Axis (for tax saving) are enough.
Hi
I have shortlisted different funds from each category. I have to choose 1 fund from each. The funds I might choose come first in each category. What is your say about it. Kindly help building a decent portfolio. My goal is long term of 10 years & may be beyond that if everything goes well. All are of Growth option. Should I distribute equal amount of SIP in every fund or like Large Cap-30%, Balanced-30%, Diversified-20%, Small & Mid Cap-20%. Kindly advice.
Large cap
1.ICICI Prudential Focused BlueChip Equity
2.BNP Paribas Equity Fund
3.SBI BlueChip Fund
4.HDFC Top 200 Fund
Small & Mid cap
1.UTI Mid Cap Fund
2.Franklin India Smaller Cos Fund
3.Canara Rob Emerging Equity Fund
4.SBI Small & Midcap Fund
Diversified
1.Franklin India High Growth Cos Fund
2.Franklin India Prima Plus Fund
3.UTI Equity Fund
4.Mirae Asset India Opportunities Fund
Balanced
1.HDFC Balanced Fund
2.ICICI Prudential Balanced Fund
3.Tata Balanced Fund
4.HDFC Prudence Fund
Thanks
I have not included any debt funds because I already contribute to PPF, NSC & RD. So I think debt part is taken care of. Do you think it is necessary to include at least one debt fund ?
Ranjan-The problem with your debt part of an investment is, lock in periods in all products. How can you re-balance the equity to debt? Especially PPF or RDs are less illiquid products.
Ranjan- Large Cap-ICICI Pru, Small and Mid Cap-Franklin India and a Balanced Fund-HDFC Balanced are enough. When you selected a fund from each category then I don’t think it is required to go for Large & Mid Cap or Multi Cap.
How is ICICI Prudential Balanced Fund?
Rinku-I am more comfortable with HDFC Balanced Fund than this.
Hi,
Please let me know best midcap funds for 3 year horizon..
Edelwiess Edge fund is good one?.
Gobinath-No Equity investment for time horizon of 3 Years.
Hi Basu,
Thanks for your informative blog for investing in Mutual Funds through SIP. I have opened the following SIP’s for 10 years in fundsindia four months back.
HDFC Balanced Fund (G) – 2000
ICICI Pru Focussed BlueChip Fund (G) – 1500
HDFC midcap opp fund(G) – 1500
Till date there is no gain reported for the above 3 funds and day by day returns are in descending mode. So I am little worried/confused if I should hold these funds or switch to any other fund. Please suggest.
Kunal-No need to worry about day to day movement. Your funds are good and continue.
Hi Basu,
Thanks for this informative blog. I have short listed following 5 funds and planning to invest in them using SIP of 1000 rs monthly in each one of them for 2-3 years and then remain invested for 8-10 years.
SBI Blue Chip Fund (G)
Tata Mid Cap Growth Fund (G)
Franklin High Growth Cos (G)
ICICI Pru Value Discovery Fund (G)
Principal Emerging Bluechip(G)
Please have a look and let me know if these fund looks good or should is need to re-consider any of them.
Koushal-You can go ahead with SBI (Large and Mid cap Fund-Valueresearchonline), but why so many small and mid-cap funds? Retain only one fund from this category.
Thanks Basu for the reply.
Earlier I tried to select 1 from Large Cap, 2 from Mid & Small Cap and 2 from Diversified category. As you suggested I have re-distributes the MFs selected. Now I am considering following four funds from 4 different categories mentioned by you above.
SBI Blue Chip Fund (G)
ICICI Pru Dynamic Fund
HDFC Midcap Opp Fund
Please let me know if these looks fine. Also please let me know how I can by Direct plan for above mutual funds.
Koushal-I don’t know why you are considering two small/midcap funds.
Thanks Basu for the relpy. I have selected these funds to Diversify the investment as there is very less overlap between these 3 funds.
Will you suggest me to drop any one of them and go with only 2 funds? If yes, then out of these 3 funds which 2 I should invest in, please let me know your views.
SBI Blue Chip Fund (G)
ICICI Pru Dynamic Fund
HDFC Midcap Opp Fund
Waiting for your reply,
Koushal-ICICI.
Hello Basu,
I want to start investing in SIP in MF. I want to diversify my portfolio. So, going to opt for a Large cap, a hybrid equity oriented, a mid cap, and a debt fund. I will be investing in one for a short term,around 3 years, hence selected a debt fund. I dont have much knowledge on debt funds. Can you please suggest if I should go with the debt fund investment or go with other investment options like RD,FD,etc? All of the funds will be SIP based.
Raj-RD.
Hi Sir,
I have invested in following funds:
ELSS(LUMSUM):
1)ICICI Prudential Tax Plan – Regular Plan – Dividend
2)Franklin India TAXSHIELD-GROWTH.
SIP:
1)ICICI Focused Bluechip Equity -Reg Growth
2)ICICI value discover fund.
Now I would like to invest in ELSS another 3k every month through SIP. So could you please suggest me whether I can do it in ICICI Prudential Tax Plan itself or choose another fund.
Thank you
Jay-Continue in same funds.
Thanks for your suggestion sir.
But from above two ELSS funds which fund I can choose and performing good for 5 years term?
Jay-Fund of your choice. If you still feel you invest in these schemes only for 5 year term then my suggestion is NOT INVEST. Equity is meant for long term.
Sir,
In your case what is long term means
Jay-More than 5 to 7+ Years.
Hi Sir,
I’m investing 2k every month through SIP in below funds.
1)ICICI Focused Bluechip Equity -Reg Growth
2)ICICI value discover fund.
Now I would like to invest another 2k every month through SIP. So could you please suggest me which is the best fund I can choose for 7+ years.
Jay-Continue in the same existing funds.
Hi,
I would like to start investing in mutual funds as well as for tax savings.
Till now i am was in 10% tax bucket and I invested only in PPF.
Now my salary got increased and i am in 20% tax bucket.
Please suggest best mutual funds for me and for tax savings.
Thanks
Deepika
Deepika-Before investing into ELSS, first try to do the basics of investment. Buy online term insurance, health insurance, accidental insurance and create an emergency fund of at least 6-12 months expenses. Once they are at the right place then think of investing. ELSS funds are already listed above.
Hi,
Just started SIP for 50K against below scripts:
Axis Long Tearm Equity Fund (Tax) 5000
Reliance Tax Saver Fund (Tax) 5000
ICICI PRU FOCUS BLUECHIP FUND (G) 5000
Reliance Equity opportunity fund (Large) 5000
RELIANCE SMALL CAP (G) 10000
icici value discover 5000
Franklin India Oppor (G) 5000
IDFC PRIMIER EQUITY FUND (SMALL + MIDCAP)5000
UTI MNC FUND (G) 5000
and also planning to invest 1million (one time) under below fund (for 5 to 6 years period)
ICICI BALANCE advantageFund – 200000
ICICI BALANCE Fund – 200000
HDFC BALANCE FUND 200000
Tata Balance Fund 200000
Reliance Dynamic Bond Fund 200000
top of that..have 60 lakhs FD + worth 15 lakhs invested in property
Currently i am 39 years old. Do you think above fund will ok ??
Thanks
Sanjay B.
Sanjay-Maximum you can retain 3-4 funds. One largecap, one small and mid cap, one tax saving (if you need that) and one balanced fund (to put some % into debt and is tax-free). I don’t think you need so many funds in your kitty.
Hi Sir,
Great thanks for sharing your knowledge. 🙂
• Currently I am investing in:
1) ICICI Prudential Tax Plan – Regular Gr – 2500
2) Reliance Tax Saver Fund – Gr – 1000
3) LIC Nomura ULIS – Uniform Cover 15 Years Monthly – 5000
• Per month investment : 8,500.
• My Wife’s current investment:
1) HDFC Small and Mid Cap Fund – Gr – 3000
2) ICICI Prudential Dynamic Plan-Cum – 1500
3) ICICI Prudential Value Discovery Fund Gr – 1500
4) HDFC Mid Cap Opportunities Fund – Gr – 1000
• Per month investment : 7,000.
• I want to increase it to 10,000 in both portfolio in this week.
• Should I increase in existing funds or should I add new funds in my portfolio ?
• Please suggest funds to increase/add.
Your help would be greatly appreciated. 🙂
Thanks,
Bipin
Bipin-Retain one tax saving fund (that’s enough) and come out LIC mutual fund at the earliest. You can continue the same funds of what your wife is investing. But one small/midcap and one larga and mid cap and add another large cap. Three funds are enough.
Hi sir,
Greate thanks for your quick response. Will comeout of LIC mutual fund.
I am under 20% tax bracket. So should I increase amount in tax saving fund or invest in equity funds (as my wife’s portfolio)?
I selected Franklin India Bluechip Fund and UTI Equity Fund to invest remaining 3000 for my wife’s portfolio. Which one is good for her ?
Thanks,
Bipin
My Current MF holding is :
SIP Monthly 1000 k
1.DSP BlackRock Equity Fund – G
2.DSP BlackRock Top 100 Equity Fund – G
3.Reliance Vision Fund
4.HDFC Top 200 Fund
Want to start more SIP investment about 10 k per month.
Kindly suggest my existing portfolio is good or should i consider other funds.
Just for sake of investing in equity i started above MF and was not aware of different kind of funds.
Regards
Sachin
Sachin-How you selected these existing funds? Why you felt these funds are not enough and need few more to invest?
I selected the fund based on the rating or probably the trading account call for buy on the day i started the SIP.
4 k per month in SIP is less as compared to what i can invest on monthly basis.
Looking at you best suggested SIP for 2015 i though i would start some more SIP.
But i am confused weather my current portfolio is good or bad so i can continue or exit these fund or think of investing in more SIP
Kindly advise do i need to change my Portfolio or continue the same.
regards
Sachin-Apart from HDFC Top 200 Fund, I don’t have any positive view of your existing funds. Retain HDFC and start one small and mid cap fund like HDFC Midcap Opp or ICICI Pru Discovery. Two funds are enough.
I want to start systemic goal oriented investments.
Can you advise on financial planning and help me in developing an financial plan for long run.
Regards
Sachin
Sachin-Please mail me your requirement at tonhokrani@gmail.com.
Hi Basu
I have an account with Fundsindia but have not started investing yet. I plan to go for the direct plans. Do I have to go to the AMC office to submit any documents or it can be done online as I have done my KYC through Fundsindia? From where I will get the KYC acknowledgement slip as it was done by Fundsindia ? Is this KYC slip important to invest online in a direct plan ?
Deepak-Once you created folio number from fundsindia, then simply create a login on that particular mutual fund company portal. After that while investing next time, you select a fund and option as direct. That’s it. Once KYC also done, then no further process of KYC.
Hi
I have to invest through Fundsindia to get a folio number. If I do that then it will not be the direct plan. Also if I do the initial investment through Fundsindia to get a folio number then I cannot come out of it to direct plan within 1 year due to exit load. As I have not started investing through Fundsindia, can I directly buy from AMC website ? Do I have to submit any document physically or by post to AMC after I buy a fund from AMC website ? And also tell me how to get the KYC acknowledgement slip.
Thanks
Deepak-There is cost involved for each service. If you think you lock your regular first investment for one year then I can’t say much. If your KYC not done earlier then you have to visit physically to AMCs only in beginning.
I have 10lacs lump sum money to invest in mutual fund for 1yr time frame . please guide … And also suggest which one to go for direct or regular plan.
Dip-No mutual funds, use Bank FDs.
Hello Sir, i already hv FDs . So out of 10 lacs i can hold 5-6 lacs money for 3-4 yr time then what would be best option for me.
Thanks.
Dip-Still I suggest FDs (purely considering the time frame you mentioned).
Thanks sir..i also think FDs will be more tension free…
Hi Basu,
Your website is very much helpful for beginners like me. I started investing on SIP as stated below.
Please advise what I invested is correct or not. Also advise if any changes I have to make in investment.
ICICI DISCOVERY FUND REG GROWTH – Rs. 1,000
ICICI PRU FOCUSD BLUECHP EQU REG GRO – Rs. 2,000
ICICI TAX PLAN REGULAR GRO – Rs.2000
Thank you.
-Abhiram
Hello sir,
Can u Pl guide me if I am having around 60000 rs in lumpsum.. How should I invest it….my time horizon is 10 to 15 yrs….in debt fund then sto to equity or equity…. Pl suggest funds…thanks in adv
Supriya-Equity oriented one balanced fund is enough. It takes your equity and debt exposure automatically and provide the tax effeciency of equity investment. You can go with fund like HDFC Balanced Fund.
Abhiram-Go ahead.
Hi Basu,
My name is Sanjay and from Bangalore. 37 Years old and into software industry. Have a 9 year old son.
Current investments – 1000 pm – Birla Tax Relief 96 and 1000 pm on HDFC Tax Saver.
Yes, the investments were done keeping tax savings as the major plan.
However, I am in a position to save around 10K per month now and would like to know if this is the right time to start SIPs (not sure if Market is already at peak).
I would like to invest for atleast 10 years.
Major goals – Education for kid, Kid’s Marriage, Retirement plan.
Can you please suggest me the best MFs to invest now and split the amount for me?
I am not sure what is the difference between Growth Plan and Direct Plan – can you please explain? Also how will i know if my current investments are Growth or Direct? I had initially paid a commission to my financial agent while investing. Not sure if he is getting brokerage commission on regular basis as well.
Would be great if you could respond at the earliest as i intend to make all investments from this weekend.
Regards
Sanjay
Sanjay-Chose one tax saving fund (instead of two). Right time is to start immediately. You can have Franklin India Bluechip, ICIC Pru Discovery, HDFC Balanced (distribute Rs.10,000 among all these three). Growth is an option of investment where the grown amount be reinvested for further growth and another option in that is dividend. In dividend option, the grown up money of your fund is distributed among investors. Hence, for long term wealth creation, it is better to opt for Growth. Please keep in mind that Direct means avoiding agent and ivnesting directly (no middlemen). In direct otpions of funds also you find Growth Option. Hence growth option is meant for your growth of wealth. However, direct option meant for avoiding middlemen and going direct to save adviser commission. If you have opted adviser already then he still continue to earn from your existing funds.
If you are comfortable to manage your money and fund on your own then you can go direct, otherwise chose an adviser like your existing adviser or me.
Hi,
I start investing Rs 4000 in mutual fund through SIP. Funds are
1. Sbi magnum midcap equity fund (G)
2.ICICI pru focussed bluechip(G)
3.UTI midcap (G)
4. HDFC BALANCED FUND(G)
Rs 1000 each.
What is possibility of these funds in long term future and suggest me another two funds to invest(excluding ELSS)?
Tribedi-Apart from SBI, rest of all funds looks great. ELSS are already listed above (select one fund from ELSS category).
So what should i do with sbi magnum midcap now??apart elss plz suggest me two good funds to suit my portfolio..
Tribedi-Switch to UTI. Why two more new funds? Existing funds are enough.
Thanks for reply. You mean UTI midcap?Plz tell me what is the procedure to switch. Can i increase the SIP amount in hdfc and icici?
Tribedi-Redeem all units which completed more than a year and re-invest in UTI. Increasing SIP is purely your call.
Hello Basu Sir,
I am 26 year old working professional.. I’m new to ELSS/MF investment schemes and have invested a part of my income in SIP’s. Requesting your valuable advice in the following matter.
Here’s my plans (only MF’S Related Plans) :
– Quantum Tax Saving Fund-Growth – 2,000 Per month (Since Sept 2014)
– Axis Long Term Equity Fund – 3,000 Per month (Since March 2015)
Is this apt for long term investement of say 20 years or so… my basic goal From MF/ELSS is education of my kids and my retirement
I am Planning to invest into:
– HDFC Balanced Fund (G) – 3,000 Per month
IS THIS PORTFOLIO SUFFICIENT FOR MY 2 BASIC GOALS OR DO I NEED TO ADD MORE?
Hope you’ll help me out here.
Regards
Shetty
Shetty-I am getting such doubts regularly nowadays. When you say as new to mutual funds, then how you started mutual fund investments already? You selected the funds and already investing also. In my view Axis fund is enough. HDFC Balanced is also good, you can select.
Hi
I have selected 4 funds for SIP
1. ICICI Prudential Focused Bluechip Equity Fund – Rs.1000
2. Franklin India High Growth Companies Fund – Rs.1000
3. Tata Balanced Fund – Rs.1000
4. UTI Mid Cap Fund – Rs.1000
Is this selection OK or I have to change any one ?
My goal is for long term of 20 years.
Deepak-Go ahead.
Hi
If I invest in a mutual fund with Rs.5000 initial & Rs.1000 SIP for 12 months (i.e. total Rs.17000) with expense charges of 2.5% then what amount will get deducted for expense at the end of the year ?
Deepak-That will be adjusted to NAV of fund.
Hi
Just one doubt. It will be adjusted to NAV or mutual fund units will be deducted ? What will be the money equivalent to be deducted ? Is it 2.5% of the total amount invested in a year ?
Deepak-It will be adjusted to NAV. This expenses will be adjusted on daily basis and later they publish the NAV. However, they publish the expense ratio once in a 6 month. You may say so. For example, if you invested Rs.100 and it grown to Rs.112 (12% return) then the adjusted value (post expenses ) will be the actual value fo your fund. If expense is 2% then instead of Rs.112, it shows Rs.109 value. Hope you got a clarity.
Then there will be no deduction from the amount which shows as unrealised gain in the portfolio. The NAV shown there is the final value for redemption.
Deepak-The you always see the expense adjusted NAV. So it is always realised gain. Yes, the days’s NAV will be final value for redemption (which is expense adjusted).
Thanks for your replies
Hello Sir,
Thanks for the very informative blog. I am buying MF first time. I have HDFC Sec Demat as well as ISA account. I see Direct plans are available on these accounts. I have been told there are no charges for buying MF. Is it still advisable to buy directly from Fund house?
Suhas-Read my earlier posts “MF Utilities-Online Investment Platform for Regular and Direct Mutual Funds“, “Online Mutual Fund Investment is really a DIRECT Investment?“, “How to switch to direct plans of Mutual Fund?” and “Mutual Fund Direct Plans-Who can move?“
I am investing in these funds for an year , at no point of time returns were more than 10%; present they have fallen to 2% i am wondering how these returns are calculated..
Raghu-Returns you said depends on what point of time you entered market. Also, judging your fund for just few months performance is wrong. Look at track record then you come to know the power of compounding and importance of long term investment.
I agree, however my comments are based on year of investing I still see in websites as more than 20% returns; I do not see in my account I saw growth up to 10% then fluctuations
Raghu-It is purely a timing of when you entered into market. Never follow the star ratings and the newbies who outperformed you. But stick to your basics.
Hi, I am 38 and want to invest 5k per month in mutual funds for a period of 15 years to build a corpus of 1 crore for retirement. Currently, am invested in icici prudential focussed bluechip equity SIP of 1k per month. Please suggest two to three other good funds to invest.
anuradha
ICICI focused bluechip equity is a Largecap fund you may select these to compliment it-
1. Quantum Long term equity (Large&MidCap)
2. ICICI Pru value discovery (Mid & Small Cap)
3. Franklin India Smaller Cos Fund (Mid & Small Cap )
all these have low expense ratio, good history & ratings. You should opt for Direct Plan with growth option in all these funds to increase the returns over the whole tenure (10-15 yrs).
Anuradha-You can choose one more small/midcap funds from above list. Two funds are enough.
Sir,
Its an informative post thank you for that, but I have a doubt regarding investing in Mutual Funds as I am a central government employee whether I am allowed to buy these funds. If yes then how much should I invest as SIPs in a fund as I have planned to invest about 27,000 per month (ELSS and others).
This is my selection
1. Axis Long Term Equity – 7000 pm
2. Tata Balanced Fund – 3000 pm
3. Quantum Long Term Equity – 4,000 p.m.
4. ICICI Pru Value Discovery – 4,000 p.m.
5. IDFC Premier Equity – 4,000 p.m.
6. Franklin Ind Smaller Cos – 3,000 p.m
7. DSPBR Microcap – 2,000 p.m.
Please review my selection and suggest the changes.
Himanshu-Your job not at all matters for mutual fund investment. So go ahead, but why so many funds??
Dear Sir,
Thank you for replying, I am 27 years working as an officer in union govt. and plan to generate wealth for my financial goals in next 10 years. In order to diversify (don’t know the exact basics) and reduce risk, I thought of taking more funds but I think it will be difficult to manage. I wanted to go for aggressive options and would lie to continue investing for next 30 years or so. My gross salary is about 62,ooo p.m. Recently came to know about mutual funds so thought abt investing from this year earlier I was saving in PPF and the mandatory NPS , planning to buy online 50 lac term insurance by LIC.
I am not able to decide how much is enough as monthly SIP, due to this also I planned for more funds.
Kindly suggest necessary changes for a horizon of 10-15 years
regards,
Himanshu
Himanshu-I understand your concerns. But to make sure perfectly, it involves a planning and data sharing from your end. Without that I can’t guide you properly. At the same time, this discussion will be generic on this public platform. But if you want to share your personal details then you have to use my mail id tonhokrani@gmail.com for further disucsion.
Thank you, please check your email.
regards
Himanshu
Hello sir,
I am 42 year old working in Pvt. Company. I wanted to invest 40000 per month in MF via SIP .My Goal is wealth creation for my 9 year old kid’s education (Graduation-8 year), Higher education (12 year) and my retirement (16-18 year).I have no loans (cleared all loan).I have term plan of 1 cr., emergency fund for 6 month , PF balance 10 lakhs, PPF 3 lakhs, FD 1 lakhs.I am saving annually 1.5 lacks(tax purpose) using PF contribution, PPF and insurance premium and 50000 annually in Debt fund (reliance money manager fund).
As per my analysis and research I have decide to split the amount 25% in large cap,35%in Mid cap & small cap , 25% in diversified and 15% in Balance fund.
I have selected below 2 large cap, 3 small & Mid cap(As it is very high risk), 2 diversified and 1 balanced fund from above list and below is my planning(Total 8 Fund and I think I can track them every six month for performance)
1.Large cap fund: 10000 INR
a. ICICI focused bluechip- 4500 Rs- For my son Graduation and afterward wealth creation for retirement.
b. UTI Equity – 5500 Rs- wealth creation for retirement.
2.Mid & small cap fund-14000 INR
a. Franklin small companies-6000 Rs- wealth creation for retirement.
b. UTI mid cap- 5000 Rs-For my son Higher education and afterward wealth creation for retirement.
c. HDFC Mid cap-3000 Rs- For my son Higher education and afterward wealth creation for retirement.
3. Diversified- 10000 INR
a.Franklin high growth-7000 Rs- For my son Higher education and afterward wealth creation for retirement.
b.Reliance equity oppr.-3000 Rs- wealth creation for retirement.
4. Balanced
HDFC Balanced-6000 Rs- For my son Graduation and afterward wealth creation for retirement
Please advise me if the above planning will help me to meet my goals.
Also please suggest my money distribution (25% large,35% Mid ,25% diversify and 15% balance) is correct as per my goals or what will be best option .
Thanks & regards
Sanjay Singh
Sanjay-What do you mean by diversified? Also, by investing in two funds of same category, do you feel your money get diversified? To me, one large cap, one small and mid cap and one balanced fund are enough.
Hello Sir,
I mean to say Multi cap as diversified category. Actually One fund is in mine name and other fund in wife name so i have selected two fund from each category. I have checked overlapping also for these funds.Also can you please suggest best way for money allocation % to large, Mid and small ,Multi cap & Balance fund? Is 25%,35%25% and 15% is correct or shall i do 30% to large,50% to Mid& Small and 20% to balance considering my another investment 1.5laks (PPF,PF and Insurance) and 50 thousand in Debt fund.
Please suggest .
Thanks & Regards
Sanjay
Sanjay-I still suggest you to reduce the funds. Even though you are investing in your name and wife name, I suggest you to retain same funds. Fund allocation is purely based on the goal time frame and how much you allocated to debt category (Including PPF, EPF). Also, if I said the allocation, then you must review it on yearly base and bring it back. Hence hard for me to say that.
Hi Basu,
First let me tell you that I am very new to mutual funds. I have around 15 L of lumpsum amount and I want to take only calculated risk, me being new to the MF market.
Please find below my investment plan:
1) 7.5L – Fixed Deposit for 6 months
2) From my monthly income, thinking of investing 12 k (2k in each of the below ones)per month in SIP to continue for next 15-20 years. Below are the funds I chose:
Balanced: Tata Balanced fund
Large Cap: SBI Blu Chip
Midcap: UTI Midcap
short term debt: HDFC Short Term Opportunities
Diversified: Franklin India High Growth Companies Fund
ELSS: Axis Long Term Equity Fund
3) I was thinking of investing some lumpsum money in either of below debt funds:
Franklin India Short Term Income Plan
ICICI Prudential Flexible Income Plan
a) Please review my plan and provide your expert advise. Being a newbie, I could be wrong in my selections or might have included more equity funds then required.
b) I am really confused on how to use my 7.5 L of remaining lump sum amount, as I can invest only for short term. As, I will need to invest in buying a flat in another 6 months – 1 year.
Please suggest. Really appreciate your advise and help.
Nitin-You claim to be newbie, but you done all fund selection, how?? You claim you have Rs.15 lakh but when you need that, what is your target and for what purpose you want that money?
Hi Basu,
Based on my requirements I’ve shortlisted the following funds :
[1] ELSS : Franklin India Taxshield Fund
[2] Large & Mid Cap : ICICI Prudential Dynamic Fund
[3] Multicap : Franklin India High Growth Companies Fund
[4] Mid & Small Cap : HDFC Mid-Cap Opportunities Fund
[5] Balanced : ICICI Prudential Balanced Fund
Left out the Large Cap ones as they had significant overlap with the ELSS. Planning to go for a 5 x 3k = 15k/month scheme. Suggestions?
Regards
Kiran
Kiran-Go ahead.
Hello Basu Sir,
Need some suggestion about Axis Midcap Fund Growth. My Axis bank advisor suggest me to add this one in your portfolio.
Regards
Anirban
Hello Basu, Today’s 1.5 Crore is 5.5 crore after 20 years. I am also planning for 10 crore for education, retirement and other after 30 years. In order to obtain or achieve that,
20 K SIP per month i m trying to feed in on 5 different funds for these specific purposes. Apart from this, i am also investing in ppf for 80K annually. Just wanted to check if i m going on in correct path or needed any altercation in order to achieve in ? Need you expertise suggestion to bring us in track…
hello Basu, Thanks for your blogs.. used a lot.. I have actually requested for ICICI focussed bluechip fund, reliance tax saver and HDFC midcap fund as you recommended here for 2000 SIP monthly for 25+ years, Just wanted to confirm if both the above selected fund are good enough for long term. Also can you advice on the timeline which we can t ell they are not doing good ? And if so terminating after 1 yr, any charges will be levied upon ? If needed to switch over, it is just like stop this sip and get a another fund ? Just wanted to confirm these as this for long term and wanted to make sure on right track. Thanks …
Raje-You can go ahead with selected funds. Yes, I will update on yearly base about the funds I selected.
Thanks Basu
If a fund is not doing good and If needed to switch over, just wanted to confirm that it is just like stop this sip and buy another fund ? Guess for most of the fund, we have 1% exit load and hence if not doing within a year, we need to come out Raje use the sunk cost fallacy ?
Raje-Yes, if fund is consistantly under performing and not able to generate your expected return then it is better to shrug it off. Stop SIP, move to accumulated money to other fund. But yes, any units which held for less than a year are liable for exit loads and short term capital gain or loss.
ok.. i got it slightly.. QQ just to confirm if i am on same page.. say suppose, after 5 yrs, if the fund is not doing good, then stop sip, withdraw the total amount for that fund until 5 yrs and then invest all in another good doing fund continuing the sip.. ?
Hi Basu,
I’m totally new to investment schemes and am planning to invest a part of my income in SIP’s. Requesting your valuable advice in the following matter.
I’m 24 and earn somewhere around INR 35-40k per month and planning to invest up to INR 15k per month in SIP’s. Have INR 2 lakhs saved already and have then as FD’s in SBT. Here’s my plan :
– Release the FD of INR 1 lakh, pitch in another 20k along with it and deposit as lumpsum in an ELSS so that the lock in period of 3 years starts from now on and I’ll be exempted from paying IT in the upcoming financial year. Looking to go for AXIS Long Term Equity Fund or Franklin India Taxshield.
– I’m planning to invest 15k/month in SIP’s, is it too much considering my income?
– Currently have my eyes on Franklin India High Growth Companies Fund, ICICI Prudential Value Discovery Fund and ICICI Prudential Focused Bluechip Equity Fund. But I’m in a dilemma on how to split up between these MF’s judiciously.
– As I’m expecting returns in 3-5 years, kindly suggest me the MF’s I must go for and the SIP amount/month for each.
Hope you’ll help me out here.
Regards
Kiran
Kiran-Simple answer “NO EQUITY INVESTMENT, IF YOUR TIME HORIZON IS 5 YRS OR LESS”.
Apologies for not being more specific in the time horizon part. 3-5 years was something I thought will be good enough of decent returns but seems like I’m wrong. Actually, I just want to invest a part of my income wisely on MF’s so that I may achieve decent figures in the long run (say 10+ years). In that case, could you provide your valuable suggestions for my previous queries?
Kiran-In that case, don’t over concentrate on saving tax. First understand your goals, then chose products and finally look for tax effeciency. I don’t think you specified your goals. Simply saving tax and investing in mutual funds is in your mind. Don’t do such wide activity, instead narrow it to your goals. Whether Rs.15,000 is too much or less, depends on your financial goals and surplus you afford for investing. But investing as much as possible is a mantra of success.
What you said is correct, investing my income properly and saving on income tax are the two things that I have on mind right now. I do not have any clear cut financial goals simply because I do not have any commitments as of now. Like everyone who earns, my goal also is to save a part of my income and invest it properly so that it may compound to a decent sum in a span of 10+ years or so, so that whatever maybe my requirement, I’ll have some extra money in hand.
Lets keep this simple. I’m new to investment schemes, willing to invest 15k/month, want maximum growth in long term (10+ years) and want to save on income tax. Suggestions? Please take into consideration the planning I’ve mentioned in my first comment (excluding the time horizon). Hope you understand my situation and help me out here.
Kiran-You don’t have any specific financial goals? Let me bring to your notice, how you planned for RETIREMENT??
Not really. So you’re saying that I need to cover some bases (like insurance, retirement plans etc.) before thinking about investments and SIP’s? If yes, kindly share some useful link where I can read about the proper technique for a financially secure future.
Kiran-I am not suggesting you to buy any endowment life insurance products or retirement plans. But my point to say is, have a specific goal. Currently you may not, but there are some certain goals like retirmeent. How you planned for that?
Well yes. Here’s a brief outline :
Current stats
– Earning a fixed pay of 30k and variable of 8-10k per month (which is an additional income and depends on the extra time I put into work)
– Not planning to invest on a house or car for the next 10 years as I’m satisfied with the current possessions.
– Have set aside INR 2 lakhs as emergency fund (as FD) for the time being.
Future Plans
– In ten years time, will need a sum of INR 20-25 lakhs for maintaining the house, a new car etc.
– Although I don’t have a family yet, assuming that in another 20 years I’ll have to set aside 50-75 lakhs for education and other purposes.
– Complete financial freedom by the age of 50 i.e I should have a sum of at least INR 5 crores in a time span of 25 years (maximum 30 years). The sum will be judiciously used for retired life.
These are the long term goals I wish to achieve by properly investing my saved money. Out of the monthly income, currently I’m saving INR 20k and whatever I’ve saved till date is now kept aside as emergency fund as mentioned above. So inorder to achieve my goals how should I divide my 20k in debt and equity? Will ELSS be an added advantage as I don;t have any other tax saving scheme right now?
Hi
I planned 4 funds for SIP of Rs.1000 each for long term of 20-25 years. My age is 32 years. My goal is Rs.30 lakhs for daughter’s marriage. Is this goal achievable or I have to increase sip amount ?
1. Axis Long Term Equity
2. HDFC Balanced
3. ICICI Pru Focused Bluechip Equity Reg
4. UTI Mid Cap
My choices for portfolio are ok or I have to change anything to have a balanced portfolio ? Also guide me what are the steps to switch to a new fund if i find some funds underperforming consistently. Do i have to redeem all the units of a mf & then buy another mf in lumpsum with that money ?
Deepak-Rs.30 lakh in today’s term of at the time of daughter’s marriage? Funds look good, go ahead. Yes, if fund consistently under performing to your expected return then you have to switch to another fund of your switch fully.
Hi
Thanks for reply
Actually I have the goal of Rs.30lakh after 20 years. Do I need any other diversified funds to justify my portfolio ?
So if one fund is underperforming, it should be redeemed wheather it is loss or gain & simply buy another with the lumpsum money.
Kindly inform me about the tax implications in future. How much tax will I pay after 20 years ? And do I have to pay this tax as advance tax in a financial year ?
Deepak-when I said in today’s term then this said Rs.30 lakh may look great. But have you calculated the value of this after 20 yrs? Think and decide. Equity investment will be tax free after one year of investment. So no need to worry.
Please be kind enough to review our portfolio. Me and my wife intend to contribute regularly via monthly sips for 21 years.
My portfolio: Franklin india taxshield
Quantum tax saver
HDFC mid-cap Opportunities
My wife’s portfolio: Axis long term equity
PPFAS long term value fund
Equal contribution to all funds. Please tell what u think of above portfolio?
Thanking you in advance-
Kuntal.
Kuntal-Why you opted different tax saver funds like Franklin, Quantum and Axis? Is there any logic? HDFC and PPFAS have no problems.
Actually me and my wife both need ELSS. So I have to retain at least 2 out of 3. Which 1 should I omit out of 3?
Thanking u in advance,
Kuntal.
Kuntal-How about investing in same tax saving fund? Along with that HDFC Midcap Opp fund. That’s enough.
Dear Sir
My age 48 yrs i want to start Mutual fund investment Rs.6000/- per month through SIP for 5 yrs. and lumpsum amount Rs.1,00,000/- .
My goal is after 5 yrs 10,00,000/- for my daughter education.
I have planned my invest as under:
1.Franklin India Smaller Companies Fund – Lumpsum amount Rs.25,000/- and Rs.1,500/- per month through SIP
2.UTI Mid Cap Fund (G) – Lumpsum amount Rs.25,000/- and Rs.1,500/- per month through SIP
3.HDFC Balance Fund (G) – Lumpsum amount Rs.25,000/- and Rs.1,500/- per month through SIP
4. SBI Bluechip Fund -Lumpsum amount Rs.25,000/- and Rs.1,500/- per month through SIP
Please advise me
Prasenjit Roy
Prasenjit-Goal is short term and defenitive in kind. Hence no equity investment.
Dear Sir
Kindly suggest me fund name and i start my investment.
Thanks
Prasenjit Roy
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
Venkat-First secure your life then think about investment. What if something happens to you today? Will your family have enough surplus to live on their own for the rest of life???
Didnt get you?? you mean i have to take some term insurance?? if needed that i can take…along with that what investments i can do?? Also any other insurance i can take….as i told currently those are my financial goals other than that nothing else
Venkat-Yes, that is what I am pointing. Along with that investment is later part. First buy term insurance, health insurance, accidental insurance and create an emergency fund. Then think about investment.
OKay ty….. Is there any term insurance with accidental bnefit insurance can you pls guide.
Venkat-Please go through my earlier posts “Best online Term Insurance Plans in India for 2015-A comparative list” and “Best Accidental Insurance Policy in India-How to choose them?“.
Thank you How about for Health insurance ICICI Lambard or Oriental or Appollo which is best in them…. for my family….for long term..
Venkat-All are best, but first understand the product and premium then choose.
Thank you i have gone thru and almost finalized between these 2… apollo or religare….but in religare wehave health checkup is there but no dental no maternity or no new baby born covered but the same is covered in apollo after 3 yrs… Please guide i am confused which is best
Venkat-If you are planning for baby then chose Apollo. I don’t think dental cover is a major game changer to tilt towards Apollo.
Dear Sir,
What is your opinion about SIP in HDFC Index Sensex Plan? Since the expense ration for the direct plan is just 0.15 and an Index plan’s performance is independent of an individual fund manager’s decision, can a SIP be considered? I’m already having SIP investments of 5k each in Kotak Select Focus, ICICI Pru Focused Blue Chip, HDFC Midcap Opp and Franklin India Smaller Companies funds.
Best Regards
Anirban-If you have index fund then why so many other funds? I think one index and another midcap fund enough.
Sir I am investing mutual funds sip last 10 months since may 2014.
1- hdfc top 200 -2000
2- hdfc mid cap 0pp -2000
3- icici fouced bluechip-2000
4- icici value discovery-2000
5- idfc primer equty- 2000
6- bsl top 100 – 1000
7- bsl forntline -1000
8- franklin high growth -1000
9- franklin smaller co.- 1000
10- reliance small cap – 1000
11- quantum long term -1000
Sir 11 funds in my portfolio it is good or bad .I want only 5 funds to continue for long term. Please suggest me best option.
All funds are purchased in direct mode.
Santosh-2 or 3 funds are enough. Rest will not server any purpose. ICICI Bluechip, HDFC Midcap and if possible a multicap fund.
Sir,
Kindly let me advice is it better to invest in balanced fund of 2 different funds ( Tata balanced fund & Hdfc balanced fund )
Thanks
Suthir-Why two funds?
I want to start sip in franklin templeton high growth of rs 4000 i selected it past five years return it is good fund to start or you can suggest any other fund in that category
Suresh-You can go ahead. But if you are first time investor then choose Large cap or Balanced fund.
I need diversified fund only can u suggest me any good in that category
Franklin india high growth companies fund is very good in diversified category.I am investing in Icici pru exports and other services fund in sip mode which is also good in diversified category by Crisil ranking.I opted this because this fund has maximum holding in defensive sectors i.e.pharmaceutical and technology.Also it has very good CAGR return from inception.
Suresh-I pointed the category and the funds are available above. Just go ahead.
I am 34 year old and currently investing in
HDFC TOP 200- 2000
SBI MAGNUM- 2000
Earlier I was investing in Post office NSC. Now I would like to invest 10 k all together in Mutual fund. Please advice. I have below requirement:
1. Education and marriage planning for my 3 years old daughter.
2. Retirement Plan.
I have Aviva life term insurance plan of 1 cr and company health insurance for family.
My question is :
1. Whether I should continue in HDFC TOP 200 as it is going to complete in next moth.
2. For my daughter whether I should invest in sukanya samridhi yojna or in some mutual fund for another 15 years.
3. Once lock in period for investment is complete then I should withdraw the amount or keep waiting for long term for growth.
Thanks in Advance for your suggestion.
Daya-I am not fond of SBI Magnum. But you take your own call on that. Yes, HDFC You can continue. Sukany Samriddhi scheme looks like a political gimmick which also locks your investment. Hence, stay away from this. Why to look for product lock in? What if goals arrive at earliest? Never invest in product which locks your money fully.
SIP is better investment option than lump sum as it is difficult to time the investment.
But if we receive some lump sum amount and want to invest in equity funds, how should we go about that ?
I have read in some articles to invest it in debt funds and then do STP to equity.
What would you suggest ?
Avinash-There is no proof that SIP is better than lump sum. The only advantage of SIP is your convenience. If your goal is long term then lump sum also be fine. Articles may be biased considering the time of investment and suggest you SIP is better than lump sum. Hence no need to worry. Go ahed and invest in lump sum if your goal is long term. So, debt funds and STP not required.
Thanks for prompt reply.
sir my age is 42 yrs i would like to start investing in SIP monthly 5000/rs for me and 5000/rs for my wife for duration more than 5 yrs .
pl suggest me the diff. fund to invest.and suggest one fund for tax saving
Dr.Rajguru-Tax Saving fund is enough for both investment. No need to have two funds for individual investment and another fund for tax saving.
Hi Basunivesh,
I have a query regarding ELSS Vs Tax FD, which would be the best option to choose for a lump sum amount and why ?
Shalabh-ELSS lock in 3 years and FDs 5 years. But ELSS meant for long term investment (even though lock in just 3 years, because it is equity investment). Hence if you are looking for more than 5+ years then go ahead with ELSS otherwise FDs.
Hi Basu,
My fater,65, is currently working post retirement. He needs to invest somewhere to save his taxes .Would you advise going for tax saving MFs (he could stay invested for upto 5 years or more) or would you suggest any better options please?
He might give up his job this year, hence no tax saving required thereafter.
Ankit-If he can wait for more than 5+ yrs then let him go for ELSS.
Hello Sir,
I want to invest 5000/-per month through SIP for long term.
could you please suggest which/how many MF I should choose?
Could you please name them? I understand you have mentioned all the names above but It would be great if you suggest some specific ?
Thanks,
Krish
Krish-What do you mean by long term?
Long Term : probably 10 years
Krish-Above said Balanced Fund is enough.
Hi Basu
I have another query after checking overlapping .Most of the funds which I have selected from Large and Mid Cap have overlapping of approximately 40 % atleast .
My query follows
I am laready investing in
ICICI Prudential Value Discovery Fund
Birla Sun Life Top 100 Fund
And wants to starts another two SIPs…have selected few fund : what would you please suggest on extending portfolio from two to four
One of the SIP I wanted to start from :
ICICI Prudential Focused Bluechip Equity Fund – Regular Plan
HDFC Mid-Cap Opportunities Fund
UTI Equity Mutual Fund
Franklin India Smaller Companies Fund
Franklin India High Growth Companies Fund (G)
HDFC Top 200
Another SIP I Wanted to start from
Tata Balanced Fund
ICICI Balanced Fund
Kuldeep-No need to ask me 🙂 Check yourself with that tool about overlap then decide. Simply to say, no logic in having so many funds.
Thanks Basu , But I do not want to invest in all these …just one from first groups and another (balanced ) from second group from my list . What would be your take .
Hi Sir,
I have invested in ELSS of ICICI Prudential Tax Plan – Regular Plan – Dividend and Franklin India TAXSHIELD-GROWTH with each one 20k as part of tax saving.
Along with that I have started investing through SIP in ICICI Focused Bluechip Equity -Reg Growth.
Now I would like to invest another 1k every month through SIP. So could you please suggest me which fund I can choose for future plans like marriage,child education etc.,
Thank you
Jay-Chose one small/mid cap fund from above list.
Thank you Sir.
Which is the best mid cap fund I can choose to invest money from below?
HDFC Midcap Opp Fun(G)
ICICI Pru Value Discovery Fund(G)
ICICI Pru MidCapFund(G)
Please suggest me.
Thanks.
Jay-ICICI Discovery.
Hi Basu,
Sorry, I have a very basic question. I’m 34 currently and planning to start investing in MFs. I see that you have been advising people to invest based on specific goals and time frames in mind. Also you suggest to stick to a max of 2-3 funds only.
Considering that I’m sticking to my MF SIPs as my primary source of savings for future goals (Child education,marriage,retirement planning, misc ,etc) ,do I need to open multiple investments(SIPs) for each of these? Or do you mean that I could plan the returns on the whole and keep withdrawing (of course not in short term) for these goals from the corpus at these junctures?
Ankit-No need of separate investments. Instead, keep in same funds and while withdrawing, do it based on accumualted amount to each goal.
Thanks Basu. this is very helpful.
I have selected the below funds for myself and wife (3 each for myself and wife)
Large cap-
ICICI Prudential Focused Bluechip Equity
Franklin India Bluechip Fund(G)
Large & Mid cap–
Franklin India Prima Plus
ICICI Pru Dynamic Fund(G)
Small & Mid cap-
Icici Pru Value discovery fund
Canara Robeco Emerging Equities/Franklin India smaller cos fund
Can you please advise if its safe to put all my eggs with ICIC Pru and Franklin? Say all 3 categories ICICI for wife and Franklin for me so that its easier to track?
Also does the above funds look goo of if yu have any better sugesstion?
Hi Basavaraj,
I have started SIP for five years couple of months back on every month in the following five mutual funds with Rs. 6000 in each fund.
L/Cap :
a) Birla Sun Life Frontline Equity Fund
M/Cap :
b) ICICI Pru Value Discovery Fund
c) HDFC Mid-Cap Opportunities Fund
S/Cap :
d) Franklin India Smaller Companies Fund
Thematic :
e) HDFC Infrastructure Fund
I am 50+ and an NRI. I look for an opportunity to invest in mutual funds through SIP for at least 10 years horizon from now to have reasonably good ROI. I need your expert opinion and guidance on my selection of funds mentioned above. Besides this, please share your views if you have any suggestion/advice for other funds as well.
Kind regards,
Bikash GHOSH
Bikash-Why two (infact three funds) in small/midcap category? Retain one among ICICI, HDFC or Franklin (currently it is considered as small/midcap fund). I am against any thematic fund. So I suggest you not to with that fund and that too infra fund.
I had invested Rs 40,000 in Reliance Small Cap Fund in mid-2014. Thereafter, it had made a quick growth and it now stands at around Rs 53,000. After the quick growth in the initial few months, this fund has stagnated. So much so, it has hardly made any forward movement in the last few months. Shall I fully redeem my investment in this fund ? Does this fund have any good future ? What do you suggest ?
Debajyoti-It made a quick move because of sudden increase in market. It is now stagnant, because market now stablized to certain extent. If you feel your target acheived then come out. But to me it’s still good performing fund. You can stay with this fund for your long term investment.
Hello Basu,
Firstly, thanks for your review and writing the above article. Really appreciate it. May you plz advise a very secured MF investment ? I mean even if the market strides down, it won’t effect the investment much. May you please suggest something strong in this type? Many thanks in advance
Sachin-There is nothing called VERY SECURED product on this earth 🙂 The best SECURED product to invest is your savings account. That too not secured considering the current trends of spamming.
Hello Sir,
We are 40 year old and started SIP(from last month) with 50000 rupees (25000 husbands+25000 wife) per month in below mutual fund for our son(he is 10 year) education/marriage and our retirement planning. For tax saving purpose we both spending 2.5 lakh in PPF/LIC etc and we are planning to save 1 lakh for debt fund annually. I am in 30% tax bracket and my wife is in 10%. From this year I am planning to save another 50000 in NPS. So our total annual saving distribution is 6 lakh mutual fund+ 3 lakh LIC/PPF/NPS and + 1 lakh in Debt fund. As per my understanding it is 60%in equity and 40% in Debt category.
We have cleared ( in Feb month this year)our home and car loans and have emergency fund for 6 month.
Below we have distributed our Mutual fund.
1. Large cap fund- 14500 INR
a. ICICI focus blue chip-7500 – Wife
b. UTI equity fund- 7000- Husband
2. Small and Mid cap fund -16500 INR
a. Franklin India small company-7500 –Wife
b. UTI mid cap- 4500-Husband
c. HDFC Mid cap-4500-Husband
3. Diversified fund – 10000
a. Franklin high growth cos.-5000 -Wife
b. Reliance equity opps fund -5000- Husband
4. Balance fund –
a. ICICI balance fund -5000 -Wife
b. HDFC balance fund -4000 -Husband
Please can you suggest if the above fund and money allocation in different fund is right? Is spending more money in Small and Mid cap will give benefit to us in long run or shall we reduce the amount in small cap and increase in large cap?
Please suggest best way to invest money (10 lakh per annum)to meet our goals and create wealth for retirement.
Thanks & regards
Arun Mishra
Arun-Before proceeding agressively for investment without knowing where you stand is dangerous. You claimed you have LIC. But will the insurance coverage suffice? Whether the coverage is at least around 15-20 times of yearly income? Don’t run behind products. Instead chose product based on your goal. Also separate each goal and do invest based on time horizon. It is wrong to sum up all your surplus and invest with standard portfolio diversification of 60% equity and 40% debt.
Hi Shreekanth
I am 30yr old already earning around Rs. 80000 per month, Also I have below investments
Home Loan with EMI of Rs. 25000/- with principal amount remain as 5.25 lac.
LIC Ltd Wild life plan = Premium of Rs. 23556 (taken in 2012). Life cover of Rs. 5 lac
Mediclaim policy Prulife health saver plan for risk cover of Rs. 5 lakhs for myself, wife and Baby.
SIP myself UTI divident yield plan = Rs. 1000/- (from last 5yr)
UTI Midcap fund = Rs. 1000/- (from last 5 yr)
SIP on wife name HDFC equity fund = Rs. 1000/- (last 4 yr)
ICICI Pru Value discovery reg = Rs. 1000/- (last 4 yr)
Last month I am blessed with baby girl, I want to invest Rs. 2000-3000 per month with SIP on her name for long term (to be covered in 80C). My consultant suggesting me ICICI tax saver or DSP tax saver. Kindly suggest the best policy.
Also are selected SIP OK? or switch is needed ?
I want to complete my portfolio in financial yr 2015-16. Kindly suggest what needs to be included?
Devendra-I never heard a LIC plan called Wild Life. Whether you are purely insured for yourself? First check that. Buy proper life insurance by buying online term insurance. Why UTI Dividend? Why your adviser suggesting you only ELSS? Mere two lines sharing and constructing portfolio may harm you. First understand yourself why you are doing the current investment. Whether they actually meet your expectations or your advisers?
Thanks for your prompt response.
I am not expert in MF.
I am opting for ELSS for next yr 80C coverage, as I will early pay out my HL in this financial yr.
My plan is to invest for long term 15-20 yrs.
Below plans were suggested by advisor. Out of below which you feel to be switched/modified ? & in which plan ?
UTI divident yield plan = Rs. 1000/- (from last 5yr) – Invested Rs. 60K in 5yr and current is Rs. ~93K
UTI Midcap fund = Rs. 1000/- (from last 5 yr)
HDFC equity fund = Rs. 1000/- (last 4 yr)
ICICI Pru Value discovery reg = Rs. 1000/- (last 4 yr)
Also kindly revert good plan as I wish to invest Rs. 2000/- additional in MF.
LIC Ltd Pay Wild Life Plan – is the investment plan and not available anymore. It is not the term insurance.
Which plan you suggest a good Term insurance plan for Rs. 50 Lac coverage ?
Devendra-Except ICICI rest funds can be switch over to one large cap fund from the above list. Two funds one from existing ICICI and another large cap from the above list are enough for existing as well as new investments. I am into LIC business since 15 years. I have never came across any such plan which is called Wild Life Plan. In fact in the history of LIC also. So check your documents properly. Term Insurance are listed in my earlier post “Best online Term Insurance Plans in India for 2015-A comparative list“, please go through it.
Thanks for the response.
Could you please share your email ID / contacts details for better clarity ?
Kindly check mail.
Hello Basavaraj,
Thank You for the funds mentioned. I am keen to invest in 3-4 tax saving MF’s (ELSS) and a couple of open ended MF’s. Can you advice please.
Regards,
Ashish
Ashish-Why 3-4 ELSS and couple of open ended MFs?
Respected sir,
(1) pl guide abt arbitrage fund? Their taxation ,safety?
(2) also read abt “idfc dynamic eq” & “icici dynamic” which invest in derivatives , debt & eq…pl guide abt their taxation &safety.
With regards
Hema-1) I am planning to write a post on Arbitrage Funds. 2) Before running the names and their style of investing, first yourself understand what you need.
Hello sir,
New reader to your informative blog.
I m creating portfolio for 3 family members..
One of it will be 3 goals with total sip 2.4 lacs…. Nearly 16 funds…goals r 5 yr ,8 yr,10yr…preferably no AIR to be filled (so each fund don’t exceed 2 lac/ year ) another portfolio too is with similar goals….
My question is
(1) how to check ovetlaping.? Between all portfolio s OR only within each..
(2)can u pl guide abt portfolio or suggest portfolio
Pl guide
With regards
Hema- First let me know how you created portfolio with those 16 funds? Overlapping can be checked using a tool which is available at “How to compare Mutual Fund portfolio overlap?“. I look for a simple solution by having 2-3 mutual funds of an equity and one or two of debt funds. That’s it. Complicating your finance is not a WISE portfolio creation.
Hello Sir,
I understood that all the mutual funds are classified based on the Market Capitalization like large cap, small cap etc.
My queries are
1) In which category these ELSS funds are classified (large cap, small & mid cap)?, specifically AXIS long term equity fund.
2) 2) Is that only “tax benefits and Lock-in period” that makes difference between normal equity MFs and ELSS Mfs ?
Thanks in Advance,
Abhinay.
Abhinay- 1) They do not classify these funds based on market cap. Instead, you need to undergo the portfolio check yourself. 2) Lock in period matters more to fund manager. Because he knows when the outgo may start and how much fund he can use it freely without worry of redemption. Tax Saving not at all matters.
Hi Sir
Good day
I am new to this mutual fund before going ahead I have some quarries about mutual fund as fallows.
During the entire investment period I will be require assistance on my investment hence I will prefer regular plan, which will be better and convenient AMC or CAMS, either I should approach AMC or CAMS for investing in mutual fund.
Mutual funds from HDFC/ SBI/ ICCI, some one can get from their AMC but if I need mutual fund of DSP, Franklin Templeton to whom I should be approach.
Abhay-How can AMC or CAMS help you even if you go ahead with regular plans? I suggest you to go with an adviser of your choice.
Planning to invest 10000 per month for 15 to 18 Years in MFs as follows
High risk – high return – 25 to 30 %
Moderate risk – 30%
Debt – 20%
Other – 20%
pls. suggest with recommended funds
Mohan-How you arrived at this %?
sir.. i am working in a psu..my age is 31 yrs ..my annual salary is around 6.5lakh ..i have an lic endowment policy of 10lakhs .. and a ppf account.. please suggest me a term plan of 1Cr.. also want to invest in mutual funds 15k monthly thru SIP.. selectd some of them thru my online research
1)Mirea asset india oppurtunity
2)Icici pru focused blue chip
3)Franklin india smaller companies
4)Icici pru balanced adv
5)icici pru tax plan
plz suggest me regarding above plans.. and should i discontiue my lic policy already paid 3premiums (premium-52300 annually ).. and thank you very much sir..u r doing a fabulous job over here
Nishant-Better you come out of LIC. Regarding term plan, you can read my earlier post “Best online Term Insurance Plans in India for 2015-A comparative list“. Mutual Funds list is already discussed in above post as well as in comments.
i have surplus to invest that I do not need for next 10 years. I have selected few large and mid cap funds. I am trying to monitor bench mark they follow- example sensex, nifty, bse-100, cnx-500 etc. I am checking at the end of every month and if particular index is less then last three month average (add pick and bottom value and divide by 2), then I invest fixed amount online in that particular fund. I have already monthly SIP in this funds. This is extra investment based on index monitoring. Please let me know merit and demerit of this investment.
Ram-Before getting a readymade answer, I have a question for you. From this exercise to the typical lazy sip, how much more returns showing for you?
Hi sir,
I am new to MF, I want to invest 6000pm in MF in three funds for 15 years.
I select one fund from large cap
ICICI pru focused bluechip eq fund
please suggest another two funds from Mid & small cap for SIP.
Regards
Mahesh
Mahesh-Select on small and mid cap fund from above list.
hi i am 39 now.
i am planning to invest 2o k per month in MF for atleast next 5 yrs.
below fund i shortlisted.
1. Biral top 200 g- 5000
2. HDF C prudence g-5000
3. UTI MNC-3000
4.reliance equity opprtunity-5000
pls advise are these right mfs to invest. are there better opprtunities.
tx
Sanjeev-5 Years? No Equity.
I have gone through your replies and comments.
If you are saying a clear “NO” for an equity investment fro 5 years period what will be your suggestion for a person like me who is 57 years old and would like to invest in equities for the said period (5 Years) just for the purpose of saving.
Your valuable comment will be eagerly awaited.
Regards.
Ali-Still NO 🙂 Please understand that by going against my suggestion you may invest and profit also. But my only suggestion is, equity investment is for long term. In a short term, it may either profit you or loss. Hence no need to take a chance.
Thanks Basavraj,
Thanks indeed for the straight forward answer.
My next query will be what are the other investment avenue you will suggest for a person of this age group. I have surplus amount and would like to invest.
Please advice.
Regards.
Ali-You can use Bank FDs if time horizon is less than 3 years or Debt Funds (again they are not safe and are volatile in nature).
Thanks a lot. I got the directives.
I will request to post a detailed articles on investment preferences/advise for this age group in near future.
Thanks and regards.
Ali-Sure 🙂
Hello Basavraj,
Last year, based on your blog recommendation, i had started to invest 2000 p.m. in the below Funds through Funds India:
1. ICICI Bluechip Fund.
2. HDFC Balanced Fund.
3. UTI Mid-cap Opportunities Fund.
4. ICICI Pru Tax Plan.
Later, i felt the need to do my Financial Planning by consulting a Financial Planner who is known to one of my relatives since i felt that i am not saving enough.
After a long session with the Financial Planner, i have started investing 4000 p.m. through this Financial Planner in the below Funds under Growth Option:
1. ICICI Pru Tax Plan for 80C Consideration.
2. Franklin Templeton High Growth Fund.
3. Birla Sunlife Frontline Equity Find.
4. HDFC Mid-cap Opportunities Fund.
I have also stopped the SIP’s that i had started through Funds India, although i have not withdrawn the Amount.
Kindly review and advice on the selection of the above Funds. Would like to know your opinion.
Thank you.
Abhishek-Please concentrate on one recommendation. Last year you acted on me. Now on your planner. Again if I recommend to change then few new funds? It is not worth. First understand why I or your planner recommended those products. Ask questions if you have doubts. Stick to plan. Frequent change or investing in many funds not worth.
Hi, ICICI Pru is doing great and i will surely recommend it for the services they offer for long term investments.
Amit-Whether your query is related to fund or fund house?
pleas e let me know planning for 50000 to 100000 a month into sip kindly let me know as how i can go about it for investment of 5 years also let me know what would be the amount after 5 years so that if need would be investing more to reach goal of 2 cr thanks
Urmil-For terms like 5 yrs or less no equity.
hello,
I want to invest another Rs 10000 into more funds,right now what I have is as below from friends advice
HDFC top 200 – 2000
HDFC equity growth – 2000
IDFC premier equity growth – 2000
Please suggest more funds which I can invest around 2500 permonth. I am new and getting confused
Danny-Continue in same funds.
hello sir,
am 32 and completely new to MF.i want to invest 5000 to 8000 per month in MF for 15 years of time-horizon.
could you please guide me with good funds?
Srinivas-It is already revealed above and go through below comments to understand my recommendations.
thank you for your quick reply. My question would be how i need to divide my amount if i want to invest in more than one fund? I mean when i need to invest max and where i need to invest min.
Srinivas-It is not like that. Instead I suggest you to distribute equally among equity funds of all category. But if you feel you can take more risk then slightly higher side towards small and mid cap funds.
I am a 34ur serving soldier now I want to save 5000/- pm for my children education now dey r in 4&7 yes old pls give me correct path to save
Janardhan-Select one large cap and another small and midcap fund. But do remember to buy online term plan for yourself.
Hello Basavaraj,
I’m an engineer by profession, and recently interested in investing in the markets.
I would like to have some expert advices on the same by providing my details of risk appetite, income and corresponding liabilities.
Before start I would like to mention a few key points to consider, before your analysis , and please suggest accordingly.
1. My age is 30. Below are my monthly expenditure liabilities.
i) Home Loan – 21K
ii) LIC – 8K
iii) FD + PPF – 14K
2. My 80C ceiling is fulfilled and I fall into the 20% tax bracket.
3. As of now, I’m not interested in tax saving schemes as my understanding is that I don’t have much options to save tax in the current scenario, if not other than infrastructure bonds. But, that also its bare minimal.
Now, I have some disposable funds of 8K (monthly ) and this I would like to invest in MF’s through SIP.
And , this are my below queries and requesting for your expert suggestions.
1. I have a risk appetite of above average and looking for aggressive growth with a time frame of say 3-5 Years.
Please suggest me some good funds and also in different sectors to have a diversified portfolio.
2. I have primarily selected 2 funds SBI Pharma Fund (G) and for 2nd one I’m a bit confused – Can Robeco Emerg-Equities (G) OR UTI Mid Cap Fund (G). Please advise about this funds. Also I would like to have another 2-3 funds.
3. I have an ISA Account with HDFC bank but therein only regular plans are shown. How to buy direct fund, can they be bought online ?
4. I might have some liquid cash which I would like to invest in share markets for a tenure of 1-2 and 3-5years range.
Please suggest some good shares to hold in this time frames.
5. And finally, since Gold prices are falling would you like to suggest in investing gold ( Physical / online )??
Thanks,
Jaideep
9831787898
Jaideep- 1) Risk Appetite Above Average, Aggressive, but time frame 3-5 Years. So no EQUITY 🙂 Take your own risk, because I don’t know whether your earned money is hard of easily earned. I always take calculated risk. So no equity funds. Along with that if time frame is 3-5 years then I always play safe than looking for above average or aggressive style of investment.
2) May I know by having 4-5 funds, what purpose it severs? Do you know what type of risk you are taking?
3) Yes you can buy direct plans through HDFC too.
4) NO Equity if tenure is less than 5 Years. Rest is left with you.
5) What if Gold falls further? Do you feel it is a great investment? No suggestion to invest.
It seems that you are eager to earn more within short period. Sorry…there is no magic in investing. If someone luring you with such short term high return then they are cheating you. From my side..NO.
Dear Sir,
You are doing a great job and really hats off to you effort!
I’m a newbie to this Mutual Fund world. I’ve started investing in MFs from last 2 years through SIP with time horizon >10 yrs. Followings are the funds in which I’m investing from last 2 years:
1. Franklin India Bluechip fund – Rs 2000/-pm
2. SBI Emerging Businesses – Rs 2000/-
3. HDFC Mid cap opportunities fund – Rs 2000/-
4. HDFC Balanced fund – Rs 1000/-
But recently from last 3 months I’ve added few more following funds and started investing in continuation with above:
5. Franklin India Smaller companies fund – Rs 1000/-pm
6. SBI Magnum Midcap – Rs 1000/-
7. SBI Pharma fund – Rs 1000/-
8. ICICI Pru banking & financial services – Rs 1000/-
9. ICICI Pru dynamic fund – Rs 1000/-
10. ICICI Pru focused bluechip – Rs 1000/-
11. ICICI Pru tech fund – Rs 1000/-
12. ICICI Pru Top 100 – Rs 1000/-
Total investing to Rs 15000pm at present.
Sir, now I’m looking forward to invest Rs 5000pm more in MFs for >10 yrs. Kindly advise me in which of the performing funds I should diversify the investment to be made. Should I try monthly SIPs to new funds such as UTI Equity fund/ UTI Mid cap fund/ Franklin India Prima Plus funds or should choose from my existing portfolio. kindly advise and also let me know whether my existing portfolio is right?
Thanking you in advance.
ayush
Ayush-Two funds are enough !!!! Not required to have as many as 15-20 funds.
sir, kindly advise these 2 funds to invest in..
ayush
Hi Sir,
I need to invest in ELSS fund. Should I go in one shot 60000-1 Lac? or use SIP?
I am already investing 6000 per month on these fund:
ICICI Pru Focussed Bluechip Equity [G] 1000/–
UTI Opportunties[G]- 2000/-
Reliance Equity Opportunities Fund[G]- 2000/-
HDFC Balanced Fund [G] – 1000/-
Which one is your choice or more favourite 🙂 -> ICICI Prudential Tax or Franklin Templeton tax
Thanks,
Anshu-Both are good. So go ahead with anyone. But whether one time or SIP is more of your comfort. Also do remember that equity is for long term investment.
Hi Basavaraj,
First of all thanks for your valuable post.
Please help to recommend one MF out of 3 mid caps listed below:
1)Canara Robeco Emerging Equities
2) Franklin India Small
3) ICICI Pru Value Discovery
Regards,
Abhishek
Abhishek-Last two funds are my favorite. Choose anyone.
Respected sir,
I m 46 yrs.old and i m already invest 1000Rs. sip monthly in baroda pioneer income fund G,baroda pioneer gilt fund & ballance fund from dec 12. So this investment is continue or re-investe any other fund.And 2000Rs.sip in Axis Equity fund Growth start on march 15. And i want more 5000Rs invest in your suggest fund. so kindly suggest me
Naresh-Why debt funds of Baroda? Any specific reasons?
no sir , no any specific reasons. but that time i m new 2 mutual fund and advice me bob branch manager.So i want to u suggest sip 10000Rs.monthly invest for 10 yrs horrizon.
Naresh-For your long term goal, debt category must not be that much important. You have to restrict your investment into such debt funds to certain extent. It depends on how far your goal is. Hence I can’t comment. But definitely if you have long term goals then both funds not required.
Sir ,
I want to invest in mutual fund for 12-15 years,I have decided below mentioned funds.plz advice if fund selection is right.
Also,plz advice Is it wise to invest in ELSS funds if Tax benifits are not required(investment horison 12-15 years).
Axis long term equity fund
Franklin India Tax Shield (G)
UTI mid cap
ICICI pru focussed B/C
Kunal-Why two tax saving funds? Any specific reason?
no specific reason Sir, just wanted to have good funds.Plz advice alternate approach.I want to invest total 10K per month(2.5 K in each fuud).
Kunal-Then chose Axis Fund.
Thanks Sir,Plz advice difference between Direct & Reglar plan and which one is advisable.
Kunal-It is explained in my earlier posts “Mutual Fund Direct Plans-Who can move?“, “How to switch to direct plans of Mutual Fund?“, “Online Mutual Fund Investment is really a DIRECT Investment?” and “MF Utilities-Online Investment Platform for Regular and Direct Mutual Funds“.
Hi Sir,
Please help me choosing one ELSS fund for tax saving SIP of Rs.5000 per month from below list for 10 – 15 year timeline.
1 axis long term equity
2 reliance tax saver
sir should I select one fund or go for both equally
Dharmendra-Axis.
thank u sir..
Hi , Basu sir ,
I am government employee (24 yr old) , want to invest 3000 rs per month in elss for 20 yr time horizon . is it good to select elss plan or go for other mutual fund ? If elss is good , then how many elss fund should I select ? Plz guide me sir ..thank u sir .
Jaydip-If you have tax saving option in mind then choose ELSS. Otherwise I don’t think it is required.
Sir ..
Actually my prime goal is good return with 20 yr long term goal .but I am confusing between elss and other non tax saving mutual funds . but by ur blog follow up I understand that I should go for non tax saver mutual fund ..but sir still in my mind one question , mostly people are able to spend more than 5000 but sir I am able to invest only 3000 rs for long term (20yr)..so plz suggest me , in which fund should I invest this 3000 rupees per month …and should I select one fund or go for more than one .
I humble request to u sir , plz suggest me good fund where I can invest . thank u sir .
Jaydip-From above list chose one large cap and another small and mid cap.
Hi Basu,
Thanks to you for the awesome platform for financial awareness!
I am 34, new to MF world and planning to start SIPs for long term (>10 years) goals soon. Shall I choose one large cap and one small and mid cap fund or combine one of these with an ELSS fund?
As of now I have traditional LICs and ULIP plans (from BirlaSunlife/SBI Life) for tax saving, which I think I need to come out of , hence thinking to include ELSS for tax saving along with investment.
How does ELSS funds compare to MFs in other sector in terms of their underlying (Large/mid/small cap) and returns over long term? Do you suggest regular MFs over ELSS if we look at the returns or can ELSS provide similar returns along with additional tax benefit?
Ankit-You can go ahead with three funds as you named. But the problem with ELSS is lock-in period. You can’t switch to other funds even though fund not performing well. Which is best among regular funds or ELSS, is hard for me to say. Because returns mainly depends on the underlying stocks or sectors they own.
Dear sir, I invest 20,000 per month in SIP and the funds are as follows:
Tata Ethical Rs.2000
Tata Balanced Rs.3500
Tata Pure Equities Rs.5000
UTI MNC Fund – Rs.2000
Birla Sunlife Frontline Equity Rs.2500
L and T mid cap Rs.5000
I have a 15 year horizon. Should I rejig or stay invested
Regards
R.K.Kumar
Krishna-How you selected these funds?
Did little bit of research on money control and zeroed in on Tata Ethical and Birla Sunlife Frontline Equity but relied heavily on a financial advisor. Regards
Krishna-I am against sector funds. Because they carry the risk of sector. Instead why can’t you diversify?
Hi Basavaraj; first thing first; I am of 34 years of age; very bad in finance planning, always afraid of even doing a research. However I am in need right now.
I have a daughter who is of 5 months, and I want to secure her future. I want to know how and where should I invest so to be very well prepared for her education (Abroad – PG courses) and marriage. I realize I should have 2 Cr for both of these considering inflation in place ( I found one calculator online to do this).
I have an LIC in which I am paying approx 50k which is a combination of Sum assured 17L, and Acidental claim – 50 L.
Rest I last year invested 28K in PPF. This is it. So my 1.5 L is covered via my EPF, PPF, and LIC.
But now I need to invest for my daughter’s future.Your advice will help a lot for people like me who are ‘New’ to being father. Thanks!
Amit-First buy online term insurance for yourself to the tune of around 15-20 times of yearly income, second buy health insurance for family, third buy critical illness cover and finally create emergency fund of at least around 6-12 months of household expenses. Then start investing in one large cap and another small and mid cap fund from the above list. Try to come out of the dummy product called LIC. Continue PPF but not full investable amount.
hello looking to invest 10-20k monthly in SIP for 20 years. My goal is to achieve 2cr or more .Kindly advise me the best SIP to acheive this goal and how much should i invest in each plan, thanks
Rahul-Funds are already listed above. Also go through below comments then you get idea.
Hi,
I am planning to invest 10000 per month through SIP route in below mentioned portfolios.Please advise me whether the below bifurcation is suitable for my profile on a long term prospective.My age is 26,unmarried and as of now i do not have any liability.
Type Fund Name SIP Amount
Large CAP SBI Blue Chip Fund(G) 3000
Small and Mid CAP Franklin India Smaller Comapnies(G) 2000
ELSS Axis Long Term Equity Fund(G) 3000
Diversified Franklin High Growth Cos(G) 2000
Hi Sir,
Awaiting your valuable suggestion
Hi Sir,
Please help me choosing one best fund for SIP of Rs.2000 per month from below list for 10 – 15 year timeline.
* ICICI Pru Exports and Other Services Reg-G
* ICICI Prudential Value Discovery Fund -G
* ICICI Pru Top 100 Reg-G
* ICICI Pru Top 200 Reg-G
Lakshminath-ICICI Pru Value Discovery Fund.
Hi
I am a beginner looking start with SIP route. I have plans to invest Rs 3000 for DSP black rock microcap (for aggressive growth)
and Rs 2000 for HDFC top 200 (for stability) funds. Can you suggest if these are good selections? I plan to start small and increase the investments every year and will be targetting a broad timeframe of say 7 years when I plan to build/buy my own house.
Another question is that, can I buy these online through HDFC?
Cheers
Jeev
Jeev-How you opted these two funds?
Hi,
I am new to MF investment currently doing RD for a 2 year Rs 4000/M
I have another 3000/M to invest. I am looking for a nice fund. My investment horizon is 10Yr. Already have a health insurance.
Do i go for one fund? or select 3 different funds and invest 1000 in each? Please let me know your suggestions.
I am 26 and not married yet.
Thank You
Banna-Select two funds one from large cap and another from small and midcap funds.
Banna-Two funds are enough.
Hi Sir,
your inputs are very good and now I am just focusing on Four best funds from each category. including Tax saver funds.
Which one is best from HDFC Tax saver or Reliance Tax saver ?
Reliance small cap or Franklin India small Co?
Best date for SIP ?
Is overload applicable when investing in mutual funds scheme within same category ?
Please advise sir.
Rajat-HDFC Tax saver and Franklin India Funds are best. There is nothing called best SIP date. You choose according to your comfort. I am unable to understand what do you mean by “OVERLOAD”. Can you please explain in detail?
Hey Basu
What you say about ICICI Pru Balanced Advanced fund at the place of ICICI Pru Balanced fund , as ICICI Pru Balanced Advanced fund has better capability to perform if market goes down .
If I see data of both fund then came to know that when market is down then the performance of ICICI Pru Balanced Advanced fund is more positive than ICICI Pru Balanced fund.
Will love to hear your point of view on this .
Thanks !!!
Sujeet-which tool you used to check the downgrade performance? Ulcer Index is a tool that is best to do such performance.
Hello Sir,
ICICI Prudential Focused Bluechip Equity Fund – Regular Plan – Growth Is this fund is good for 5 years term?
Jay-It is good only if your investment horizon is 5+ Yrs.
Hi sir
I’m new to these investments,after researching I found these funds.pls suggest are they OK or shall I change something.
Icici Pru foccussed blue chip-1000p.m
Hdfc mid cap opp fund/icici Pru value discovery fund-1000p.m
Hdfc balanced fund-1000p.m
Axis long term equity fund-1000p.m
Pls help me in this regard.my time horizon is 10 yrs and above.
Amar-Retain either ICICI or Axis. Rest of the funds are good to start.
Hi sir,
Icici Pru value discovery fund is a small and midcap fund,whereas axis long term equity fund is a tax saving fund.should I go for anyone of this.would that be sufficient.
I need a tax saving fund compulsorily as I come in 30 % tax slab.
Pls suggest sir,it would be of great help to me.
Amar-I said one ICIC which is large cap or Axis another large cap. With that ICICI Pru Discovery or HDFC Midcap Opp (small and mid cap). You can chose a tax saving fund from above list.
Hi,
Which one would u select from there small and midcap funds
Icici Pru discovery fund
Hdfc midcap opp fund
Franklin India smaller cos fund
Pls suggest sir
Amar-All are best funds.
sir,what are monthly income plan in mutual fund?as the name are they generate monthly return for the investor?
Shivam-Monthly Income Plans are nothing but debt oriented mutual funds. But generation of monthly income depends on the returns they fetch. So returns are not guaranteed.
Sir,are they suitable for the senior citizen who are depend on return of bank FD’s per month for their livelihood if they invest in monthly income plan at least 30% of the amount invested in FD’s?as you know interest rates of bank deposits are falling,so are monthly income plan a good option for them in this age of inflation?
Shivam-Typically these are debt funds. So monthly return is not guaranteed. Even in some cases they may not provide you any return on a particular month. They are volatile in nature. I agree that falling interest rate may lure you towards MIPs. But a person who is totally dependent on this income will find it difficult to it’s erratic nature of payout and the volatility.
Sir, I want to make SIP of 5000 pm each in two mutual fund schemes for 10+ years. Kindly suggest me 2 best sip funds. Also want to invest rs. 1 lac as one time investment for 5 years. Kindly suggest the mutual funds for it. Regards,
Rajesh-For 10 yrs goal choose one large cap and one small and mid cap fund. For 5 Yrs goal, no equity investment.
Hello Basu,
I am planning to investment in mutual funds which is completely new to me and i am looking for long term of more than 12-15 years kind .
My monthly investment capacity on mutual funds would be around 12-15k and dont mind taking risk.
Please provide your inputs like Are above MFs are good fund for long term investment and any changes require in SIPs.
ICICI Pru Focused Bluechip Fund :- 1500/- Per Month.
HDFC Midcap Opp Fund :- 1500/- Per Month.
Reliance Equity Opp Fund (G) :- 1500/- Per Month.
HDFC Balanced Fund (G) :- 1500/- Per Month.
ICICI Pru Dynamic Fund :- 1500/- Per Month.
Reliance Tax Saver :- 1500/- Per Month.
Reliance Growth :- 1500/- Per Month.
Kindly suggest…
Regards,
Dinesh
Dinesh-Two funds are suffice. One large cap and another small and mid cap.
Hi Basu,
Thanks for your reply.
I have finalized below funds for my investment , kindly review it.
ICICI Pru Focused Bluechip Fund :- 1500/- Per Month.
HDFC Midcap Opp Fund :- 1500/- Per Month.
Reliance Equity Opp Fund (G) :- 1500/- Per Month.
Reliance Tax Saver :- 1500/- Per Month.
Regards,
Dinesh.
Dinesh-I don’t think two smal/midcap funds required.
Hello Sir,
I want to start SIP of 5000/- rs per month up to 3 -5 years. Kindly suggest some aggressive mutual funds. I am considering some risk and some risk as well.
Regards,
Manoj
Manoj-Aggressive funds for less than 5 years horizon? NO..
Dear Sir
I want to invest mutual fund invest Rs50 thousand for 5 years suggest best fund
Debabrata-NONE…because if your time horizon is just 5 years then better to stay away from any equity investments.
Hi Sir,
I have ICICI Prudential Tax Plan Regular -Dividend for lumsum amout of 20k.
Now I’m planning to invest every month 2k through SIP. So I’m planning to invest in any one of ICICI Pru Focused Bluechip Fund(G) or ICICI Pru Dynamic Fund(G).
Could you please suggest me which one is good to choose invest money in 2k every month.
Thank you.
Jay-Choose ICICI Focussed Bluechip Fund. Why you opted dividend option in tax saving fund?
Hi Sir,
As part of the ELSS tax saving scheme, in ICICI I have opted the ICICI Prudential Tax Plan Regular -Dividend Scheme for 3 years.
Could you suggest me how this fund was performing and Is it return good income after maturity?
Jay-It is good fund but switch to growth option.
Ok Sir.
Apart from the ICICI Prudential Tax Plan Regular -Dividend, Is there any best ELSS scheme which I can opt to get tax benefit.
Which is best payment method in ELSS(either SIP or lumsum)?
Thank you
Jay-It is already available in above list.
sir,can you explain why you gave suggestion for growth option?i know how the power of compounding works in FD’s.but how the theory of compounding works in mutual fund?
Shivam-It works same way when you get dividend and invest in same fund on same day. So if you don’t need cash in between then why to opt dividend option? Let it multiply.
Hi sir, I am new to investment. I dont know about the market. I am getting 60k pm. So, i want to invest somewhere for my
daughter’s future, for tax savings and to get profits etc.
Its better for one time investment or monthly also no problem.
monthly 2k to 3k i can invest.
present i can invest 50k as one time investment.
So, please guide me where can i invest my money?
Thank u sir.
Chandrasekhar-Before that buy term insurance to the tune of 15-20 times of your yearly income, buy health insurance for your family, buy accidental insurance for you and create an emergency fund of at least 6-12 months of household expenses. Once all these at place then select on large cap fund and another small and mid cap fund from above list and start investing.
Hi,
Thanks for ur suggestion. Can u suggest me which is the best term plan and health insurance?
please………
thanks.
Chandrasekhar-Please go through my earlier posts “Best online Term Insurance Plans in India for 2015-A comparative list” and “IRDA Incurred Claim Ratio-How to choose the best health Insurance?“.
Dear sir
1.ICICI FOCUSSED BLUE CHIP EQUITY FUND
2.ICICI DISCOVERY VALUE FUND
3.HDFC MIDCAP OPPURTUNITIES GROWTH
4.FRANKLIN INDIA PRIMAPLUS
5.BIRLA SUNLIFE FRONTLINE EQUITY
HDFC PRUDENCE GROWTH.
ABOVE MENTIONED FUNDS SUGGESTED BY MY RELATIVE TO JOIN IN SYSTEMATIC INVESTMENT SCME 10000 RUPEES EACH FUND MONTHLY FOR FIVE YEARS FOR ME AND MY BROTHER. PLEASE NEED YOUR ADVICE.AWAITING FOR YOUR REPLY.
BEST REGARDS
VAKKIL SATHEESH KUMAR.
Vakkil-I don’t think these many funds required. My choice is ICICI Focussed Bluechip Equiyt, ICICI Discovery or HDFC Midcap Opp and HDFC Prudence Fund.
Sir i am investig 4000 pm in following funds please suggest me that should i continue with them or change and I also want to invest 2000 rs more so please suggest me in which fund should i raise.
1. Fraklin india smaller companies
2. Icici pru value discovery fund
3. UTI mid cap
4. Reliance equity opportunity fund
Neeraj-Why so many funds of same category? One fund is enough.
Hello Sir,
I am Narendra. Just now come across your valuable article here. I am 28 years old, working in MNC IT company here in bangalore.
I am interested to invest in MF through SIP to create corpus for my retirement say 22 years from now (i.e at the age of 50). I have understood that equity funds are good one to choose at this early age. I can invest a maximum of 5000 in various fund schemes.
Can you suggest me good long term plans, how I can plan it for my retirement??
Waiting for your reply.
Thanks in advance.
/Narendra
Please Note, The Corpus in the above comment meant to create a good large wealth. Thanks.
Narendra-You can choose one large cap and another small and mid cap fund from above list. Planning for retirement is not so simple. Many data required from your end. So I can’t comment on that.
Hello Sir,
Thanks for your reply.
Regarding Retirement planning, I m trying to get info from you from Mutual funds perspective only(not some other investment plans), I will start with 5000 and can able to invest max of 10000 per month going forward in MF. So, in that regard, is that 10000 per month is enough to create a wealth of 70 lakhs to 1 crore in 22 years from now. or do i need to increase the amount per month? Also, is one Large Cap and one Mid & Small Cap enough for this?
Thanks.
Narendra-In that case, stick to the funds I already said. If you contribute Rs.5,455 monthly for next 22 years and we consider the fair consideration of return on investment as 12% then you can easily achieve Rs.70,00,000. Yes…two funds are enough.
Sir, Thanks a lot for the custom advice. Much appreciated.
pl send reply
Dear Mr. Basu
I will be retiring by the end of this year. My total savings including retirement proceeds will be Rs.80 lacs. In order to have a regular flow as well as capital appreciation I have planned to invest my savings as under:
1. Fixed Deposit – Rs. 20 lacs
2. Debt Fund – HDFC MIP – Rs. 10 lacs
– Reliance MIP – Rs.10 Lacs
3. Large Cap Fund – ICICI Focussed Blue chip fund – Rs. 10 lacs
– HDFC Top 200 fund – Rs. 10 lacs
4. Balance Fund – HDFC Balanced Fund – Rs. 10 lacs
ICICI Balanced Fund – Rs. 10 lacs
Your comment is solicited in my above after retirement investment plan.
Regards
S Das
Das-How you arrived at these values and asset classes?
Mr Basu
This asset class & values I have worked out after doing some research myself. I also follow your blogs.
Pl give yr comments
S Das
Das-I understood but on what base you arrived?
Mr Basu
There is exactly no base. I check valueresearch online & your blog for my plan. I had selected FD as a secured investment & Debt fund for some assured return and capital appreciation. Large cap fund & Balanced fund for taking advantage of capital market.
Das
Das-But from your selection none of asset classes will give you monthly fixed income. Also how you planned for your survival post retirement? Whether this accumulated amount is a lone source for rest of your life? Have you considered these asset classes or products after considering the tax? Debt funds are equally volatile to equity and will not provide you assured return. Are you aware of this? Please answer to proceed further.
MrBasu
Thisaount ismylnesourceforthert of mylfe. I hadsectedf forrularauredreturn
What wollbyrsvgestionf investingtisamount.
Das
Mr Basu
This amount is my lone source for the rest of my life. I had selected FD for regular and assured return.
What will be your suggestion for investing this amount ?
Pl suggest what will be investment strategies for this amount to get regular returns & capital appreciation.
Das
Das-In that case your asset must be more towards secured and guaranteed rather than expecting higher return. I suggest you to restrict your investment into equity (even in balanced funds too) to the tune of 10% to 20%. Rest 20% to 30% in short term debt funds. I am saying short term debt funds, because long maturity debt funds are more riskier. Rest in fixed instruments like monthly income scheme of post office, bank fds. Let me know your views.
Mr Basu
In line with your suggestion let me recast my investment plan as follows:
1. Post office Monthly Income Scheme – Rs.20 lacs
2. Bank Fixed Deposit – Rs. 20 lacs
3. HDFC Balanced Fund – Rs.10 lacs
4. ICICI Balanced Fund – Rs. 5 lacs
5. Short Term Debt Fund – Rs. 25 lacs
TOTAL – Rs. 80 lacs
Is this plan ok ?
Also pl suggest some top short term debt funds.
Das
Das-In Post Office MIS maximum limit is only Rs.4,50,000. You can opt Senior Citizen Savings Scheme of post office (maximum limit is Rs.15,00,000). One Balanced Fund is enough. So opt HDFC Fund. You checked the LIC’s immediate annuity plan? If it suites you then you can opt that too. But do remember to consider the risk involved in each product, tax and liquidity then decide. I respect your belief on me. But it is hard for me to guide without knowing all details about you.
DAS-Please comment properly. I am unable to get what you want to say.
Mr Basu
Thanks for your comments.
Pl suggest some short term Debt Funds.
Das
Das-Short term debt funds means you also need to understand the tax issue. Because whatever your capital gain from debt funds and within 3 years will be taxed according to your tax slab. Hence let me know whether you can wait for more than 3 years or less than 3 years?
I can wait for more than 3 years.
Das-Then use Income Funds.
Hi sir,
I want to invest in a else fund for a period of 10 yrs.can you please suggest me whether I should go for a one time investment or sip.
Suggest a fund from below list
1.franklin India
2.reliance taxsaver
3.icici prudential tax plan
4.axis long term
Thank you in advance.please help me in this regard.
I mean elss fund
Amar-Below fund list or mutual fund companies? You provided company names but not funds.
hi sir
i mean franklin india tax shield(G)
icici pru tax shield(G)
axis long term equity fund
reliance tax saver fund
Amar-ICICI Tax Saving fund and Axis Long Term Equity are enough.
I’m a bachelor of 39+ yrs doing a small job in a pvt firm. I want to invest in Canara Robeco Emerging Equities (Growth) a lumpsum amount of Rs 10K to 15K for a horizon of approx 7+ years. Firstly, pls tell me : is this decision of mine good ? If so, then secondly, pls tell me : shall I invest the lumpsum amount right away (now), or shall I wait for the markets to correct a bit ? Kindly answer these 2 queries.. Thanks !
Debajyoti-Even though fund is performing nicely, I am little bit not comfort with the expense ratio. Instead, my selection will be either above listed small or mid cap funds or ICICI Value Discovery (even you can consider Franklin Smaller Companies Fund too). You can go ahead with one time investment. Reason is, we don’t know when the market will correct and there is no specific definition of CORRECTION to say that now the market is corrected 🙂
Dear sir,
I want to invest Rs.1000 per month through SIP for 5 years. Pl. inform me which is the best plan. Investing in Mutual Fund is new to me. Also i am a salaried person so i would also like to have one tax saver plan. Waiting for your reply. Thanks & regards, Kanchan
Kanchan-If 5 years is your investment horizon then no equity mutual funds.
Hello Basavaraj,
I am going through your posts regularly. Thanks for your valuable posts and feedback.
I am 49 years old and new to this investment and would like to take your advice on SIP or Mutual Funds directly. I am planning to invest Rs.5000/- every month. Basically, I wanted to have corpus fund towards my retirement. Please advice the good options to start – whether SIP or directly in MF. Also, for how many years, should I have to invest?
Thanks in advance.
Narendiran-I think you are not understanding the concept of SIP. It is nothing but a monthly investment. When you don’t have prior experience then how can you opt DIRECT MFs and manage them? How many years you need to invest depends on your retirement age. So I can’t comment on that.
Dear Sir,
I want to start SIP in mutual funds. Following are my goals and I can invest Rs.6000 to Rs.7000 per month.
1. Daughter’s higher education (after 16 years)
2. Daughter’s marriage (after 25 years)
3. My retirement (after 28 years)
4. buy a car of 10 lacs (After 5 years)
Kindly suggest mutual funds.
Laxmikant-Your planning is god. But to plan goal it requires lot of work and without that it is hard for me to suggest. But plainly you can select one largecap and another small and mid cap fund. Two funds are enough.
Dear Sir,
Thanks you for reply.
I have shortlisted following funds for SIP:
1. ICICI Prudential Focused Bluechip Equity Fund – Reg (G)
2. Franklin India Smaller Cos Fund(G)
3. HDFC Balanced Fund (G)
Also, I am planning to invest in ELSS. For this, following funds are selected.
1. Axis Long Term Equity Fund (G)
2. Franklin India Taxshield Fund (G)
Kindly advice.
Laxmikant-Go ahead.
SIR I want to invest 10-12k permonth in mutual funds for a period of 5-10 years. For this i have chosen following funds.
1. two from tax savers- axis equity long term and canera robeco equity tax saver
2.two from balanced- hdfc balanced fund and tata balanced fund
3.two from equity funds- birla sunlife top 100 and uti oppurtunities.
please advice whether funds i have chosen are good. and also advice me should i reduce or increase the number of funds
Suman-May I know the logic in selecting two funds from same category?
Sir, main logic behind it was like to distribute funds rather putting much into one. If it is not correct you may pls suggest me wit correct option like at least one best from each.
Suman-It will not distribute (only fund name changes but underlying stocks remain same). Hence retain one fund from each category of you selected.
I started reading your blog 4 month back and even had very precious advice from you,thank,,I opened fundsindia account for online investment,now my question is should I invest in hdfc children gift fund which has given more than 15% returns inch last 5 year or I should for icici focused bluecheap+mirae India opportunities+hdfc midcap opportunities,for my child education which is 2 year old and investment is 6000 per month.
Neeraj-HDFC Children Gift Fund is equity oriented hybrid fund. So if you want then continue. But I think your current funds are suffice.
Hi Sir,
Recently I came across this site and find it very good and informative.
you will find my question bit silly , but it would be really great help for me.
I am new to this mutual fund (basically I am new to this investing )
Please suggest which SIP or where should I invest.
and as market is progressing towards 30k mark , so investing in SIP or any other equity will be beneficial than normal bank FD
I have bought SIP
(Franklin India Smaller Cos Fund(G) 1000 per month for 3years ,
Sundaram S.M.I.L.E 1000 per month for 3years (Do I need to switch it to other)
I am interested in buying MF in which has max share of manufacturing , IT , Health Sector and pharma may be after this budget as said by Prime Minister , Make in India will be in focus.
Kindly please let me know where should I invest .
thanks
and waiting for your reply
Nitesh-In one way you are saying new to mutual fund or investing and in another way you stating that you already started investing in few funds. Let me know how you selected these funds. May I know why you are more fond of manufacturing, IT, health or pharma? what is your time frame of investment?
Hi Sir,
I’m planning to investment some 2000 rs through SIP for 3 Years. So could you please help me to choose best MF with good returns.
Thanks
Jay-No equity mutual funds for 3 years time. Instead you can chose FDs, RDs or Debt funds based on your tax liability.
Sir,
Thanks for your valuable response.
Is there any plans in ELSS or mutual funds for 3 to 5 years paying either lumsum or SIP?
Jay-It is listed in above post.
Hi Sir,
I want to buy some good shares only for once(as an investment for 5000), i want to buy as i just want to experience the shares market.
Can you please advise if there are any good IPOs in coming days.
Also advise if we it is good to have an investment in MF for a short span like 6 months with a small monthly amount of 2000.
Many thanks,
Pooja.
Pooja-Experiencing without knowing is worst. Hence from my side no such recommendations. Above that IPO investing depends on lot of analysis. Short term of 6 months is not advisable for equity investment. Sorry to say.
Hi Basu,
I went though your blog , its quite impressive and educative. Thanks a lot for putting in energy and time in doing that.
I have few questions for you ?
1. Whats your view on having inclination to one fund house. Because for a retail investor his choice would be to go with fund house he can trust – based on brand value and past experience in some other business. For eg. HDFC and ICICI in banking and then continue with diff scheme from same fund house for diff purpose. Specially if one is transacting DIRECT, it reduce overhead of going to 5 different AMCs, related paper work etc and so on.
2. Whats your take on HDFC Top 200, this fund has very impressive track record (with Prashant Jain at the helm and from a repudiated fund house) , recent performance is also been very good. Do you think one should look for alternatives.
3. I have recently started MF investments, currently I have a ELSS and Large&MidCap fund (both are part of you list 😉 though ). I am in process of getting a good large cap. Should I add a Multicap/ Mid-Small cap in future to give an edge over returns (I deferred this for the time being as mid&small are high priced at this time).
4. It would be good if you could put up a summarize blog page for Debt fund selection as well. Should we be equally concerned while selecting a Debt fund as well?
Thanks,
Kamal
Kamal- 1) If chosen funds are good enough then I don’t feel it is good logical decision to stick to same fund house. So you can have it. Because you are concentrating on fund rather than fund house.
2) Not required. You can continue and in fact I am fond of this fund 🙂
3) You can add a multicap fund. But check for overlap of portfolio then decide.
4) I will work on that soon and thanks for your tip.
Hi Basu,
I have one query around NPS. The finance minister has created a separate window of Rs 50,000 under Section 80CCD (1B) over and above 1.5L 80C investment limit (EPF/VPF/PPF/ELSS/Life Insurance etc).
Which schemes does this apply to ? Does it cover Pension fund from Mutual fund houses ? Which product / scheme would you recommend (including Govt / Post Office schemes etc) to save tax under this ans at the same time retirement investment.
Thanks,
Kamal
Kamal-It is only applicable to NPS.
Want to invest 50k PM in mutual fund, can u help with following
1. Shd I go for 2 funds large and other one madcap
2 in large hdfc top 200, burlap top 100, Sbi blue chip, Franklin india blue chip
In mid cap – Franklin India smaller co fund , hdfc mid cap opp, can robeco emerge
3 time line is 3 years, and my appetite for risk is above average!
Please guide. Appreciate your style of writing articles ????????
Shekar-Why two large cap? Stick to single. No purpose to add more funds. Time is 3 years?? No Equity Investment. Rest is left with you.
which option is better for NRI- invest in NRI FD with 8.5% or invest in income fund in current situation. my duration is long. I have enough investment in equity. So thinking options on debt side.
please advise keeping in mind return and taxation.
Hello Sir,
Thanks for creating this webPage. Extremely Helpful. Looking for your advice on my following situation :
I had been investing in LIC market Plus-1 andChild Fortune Plus since year 2010. But after 5 years , I realise the plan is not returning what i expected. I want to move out of it And looking for Something that can create a reasonable corpus for my child education. So Overall around 10 Years of time Frame from now. Is there any Good Plan for my need which will return good ? I can have around 5-6 lac cash ( from LIC cancellation ) And rest i can invest around 1 Lac ( one Lac) per annum. Please suggest something.
Also , I would need good Plan for my retirement , Currently i am 38 years.
Thanks
Kartik-Select one large cap and one small and mid cap from above list.
Hello Sir,
I am having surplus of rupees 150000, which I wanted to invest in MF for minimum 6-7
Year of time period. I can take moderate to high risk. Last year I invested lumsump rs 100000 in
ICICI balance fund which also I need at the same time.
Please suggest best way to invest this amount. Shall I invest in Balance fund e.g. HDFC fund or
Multi cap e.g. Franklin high growth company. Also shall I do via STP for 6-7 year or equally invest (Rs 12500 per month) in one year directly or one time lump sum considering positively that market will grow.
Please advice.
Thanks & regards
Ravi
Ravi-Invest in a same Balanced Fund.
Hello Sir,
Thanks for your reply.
Please advice shall i do 1.5 laks as Lump sum in ICICI balance fund or equally distribute in 12 month or STP (Debt to balance) for 6-7 year. Which one will be best.
Thanks & regards
Ritesh
Ravi-Go for one shot if your horizon is long term like 7+ years.
Dear Mr. Basavaraj
Your are doing excellent job by educating we people in investing money. Sir, I have a SIP of HDFC top 200 for last 3 years which is a Large Cap fund. Now I want to start another SIP of Rs. 10000. Please advice me. I am thinking about “Hdfc Balanced Fund” and “Icici Prudential focused blue chip”
Please advice.
Thanks in advance.
Anil-Choose HDFC Midcap Opp Fund or HDFC Balanced Fund.
Hello Sir,
As we all do SIP for investing in mutual funds. It’s like a new investment per month. So when we have to sell the fund and avoid the exit load. Then every sip have to complete 1 year? I’m right?
Thanks,
Anshu-Yes you are right.
Good Morning Sir,
I am currently doing a SIP of Rs.1000 in Reliance Equity Opportunity Fund and ICICI focused blue chip fund. Now I am willing to invest another Rs.1000 via SIP, kindly suggest me a good mutual fund or Shall I invest in Gold Mutual fund.
Kindly guide me
Thanking you,
Vinay
Vinay-Why one more fund? Simply investing the same two funds. Gold will not give you the return of equity over long run. So I don’t think gold is a better investment.
Hello sir,
What is your opinion about reliance equity opportunity fund?
I am planning to invest 5000 pm each in this fund and Franklin high growth fund via SIP for 10 year.
Value research has put this fund in Small & Mid cap category (Not in Multi cap) and given 3 star
Rating but Money control has put this in Diversified fund with 4 star rating. Where it actually belong?
But when I checked CRISIL most consistence equity fund reports for last three year, reliance equity opportunity fund was always present in 1 or 2nd rank.
Please advise if I can invest in reliance equity opp fund or is any other best (apart from Franklin) in diversify equity fund category .
Regards
Manoj
Manoj-Both are good in their category. Reliance I consider as small and mid cap.
Hello Basu,
Thanks for useful information!
I am of 27 yrs old and planning to opt for following online term plan(50 lacs each,30-35 yrs term)-
1 lic e term
2 hdfc clck 2 prtct
Pls advise and correct if any change required in above
Rahul-Only one change-Why to split sum assured? Why not only one company?
Hi Sir,
First of all thanks for such great info!!
I am 30 yr old salaried person.I want to build education corpus for my 3 year old son(so time horizon is 12-14 years).
I wish to plan with around 10,000 Rs per month and later will increase the amount if required.
Please advise how many and which funds I should go for.And how the taxation will be applicable on returns(PS:I don’t need to get 80c benefit for this investment).
Thanks
Kunal-Choose one large cap, one small and mid cap and one balanced fund. Start investing but don’t forget to buy online term plan.
Hi Basavaraj,
First congrats for the good work that you are doing .
I am sachin and want to invest around 15000 Rs / month for a time horizon of more than 15 years to build my retirement corpus in MF and i have choosed the below funds from the list mentioned by you.
1. ICICI Prudential Focused Bluechip Equity Fund – Regular Plan
2.Franklin India Prima Plus Fund
3.HDFC Mid-Cap Opportunities Fund
Please suggest as to how should i split my 15000 b/w these funds and also suggest if the fund choice has to be changed to include a balanced fund as well.
Regards,
Sachin
Sachin-Better to avoid Franklin if there is too much overlapping of investment. But all three are good funds. Balanced fund not required.
Basavaraj,
I have checked the overlap using the excel tool you had mentioned in one of your blog and the percentage of over lap is less than 40% b/w the ICICI and Franklin funds. So can i go ahead with these three funds and
In that case how should i split my 15000 b/w these funds.
– Regards
Sachin-Do it 50% in each fund.
Dear Sir –
Thank you for sharing the info. It is very helpful for a lot of us
I have started investing from Jan ’15 in the following. I plan to continue this for 3 years. Is this an ideal period?
Axis Equity fund (G) – 5000/- pm
Birla Sun life pure value fund (G) – 5000/- pm
HDFC Prudence fund (G) – 5000/ pm
Reliance Tax Saer (ELSS) fund (G) – 5000/- pm
Pls do guide suitably as I am not sure if I will be able to sustain the monthly investments after a period of 3 years.
BRS-If your investment horizon is just 3 years then I suggest you to stop investing in equity with immediate effect.
Dear Sir – What tenure is the bare minimum according to you?
BRS-According to me more than 5-7 Yrs.
Dear Sir – Thank you for your advice.
Can you let me know your opinion on the schemes I have opted for?
BRS-Apart from Birla, rest of funds are good. Instead of Birla choose the HDFC Midcap Opp.
Which fund do you suggest for large cap and mid cap among the below
1. UTI Equity or UTI Opportunities
2. UTI mid cap or ICICI Discovery
Suhas-UTI Opp and ICICI Discovery.
Hi Basu,
Trust u are doing well !
Want to know ur views on Reliance Retirement Fund – Wealth Creation Scheme.
Regards,
Ashish
Time horizon 30 years…
Ashish-Please give me sometime to review.
Hi,
My time horizon is 30 years as I want to plan for golden years. I can invest 5000 per month. Kindly suggest which plan should I go ahead with. As of now only option I can see is “UTI Retirement benefit pension plan”.
Also I am planning to invest 5000 per month for next 1.5 years. This money I will invest for my sister’s marriage. Kindly suggest if I should go for “UTI tansportation & Logistic Fund”. I know you are not a big fan of sector funds but this fund has yielded 142% in NAV during 2013-14.
Hi Basavaraj , Thanks for your input
I have listed on Monthly plan of 40K , Planning for Long period , close to 15 Years .Kindly have a look and revert back if it is correct , I want to keep LIC and PPF Amount constant , Mutual fund details , i can modify on your input .
PLAN
1 LIC ( JEEVAN SARAL) 3000
2 FRANKLIN INDIA BLUECHIP 4000
3 ICICI PRU FOCUSSED BLUE CHIP 4000
4 FRANKLIN INDIA PRIMA PLUS FUND 4000
5 ICICI PRU DYNAMIC FUND 4000
6 HDFC MIDCAP OPP FUND 4000
7 RELIANCE EQUITY OPP FUND 4000
8 HDFC BALANCED FUND 4000
9 ICICI PRU BALANCED FUND 4000
10 PPF 5000
All these funds i have taken from your list only , Kindly guide me should i reduce , the list and increase the amount of the left fund .
Sumit Ghosh
9168116444
Sumit-One largecap and one small and mid cap, if possible one balanced fund are enough than Jeevan Saral or PPF. I don’t think it is wise to have so many funds.
Kulbhushan-Instead of UTI fund, better choose one large cap and another small and mid cap from above list. UTI Transport fund might have generated 142% of return but at what risk? Whether the same return will it be able to generate? Also if your time horizon is less than 5 years then why for equity?
I have zeroed in on Axis Equity Fund,Franklin high growth companies,hdfc midcap opportunities fund.your view please.
Hello Basavaraj,
First of all would like to thank you for such a blog. This really helps to understand all about investment mantras.
I would like to ask you about one specific fund which I am holding SIP , i,e Reliance Gold Fund. As gold is not doing good in recent past, obviously i am not getting good return. This SIP is running since May 2011.Please advice if I need to stop this SIP immediately or continue?
Regards
Hi Sir,
Am new to SIP. Am planning to invest Rs.2000 monthly on each of the below funds for 10+ years [ 12000/month].
* Axis Long Term Equity-G
* DSPBR Tax Saver- G
* ICICI Pru Tax Plan Reg-G
* Birla SL MNC-G
* HDFC Prudence-G
* ICICI Pru Value Discovery Reg-G
Also, Please suggest to have investment at begining ( 5th , 10th) or at the end ( 20th , 25th) of the month. People say that investing at the end of month is benificial , whats your thought on this ?
Waiting for your reply Please suggest.
Hi Basu,
I want to invest approx. Rs. 120000 per annum from 2015 to 2030, the year I intend to retire. Main objectives: decent (reasonable) retirement corpus + child’s higher education. Which MFs would most suit my purpose the best?
Thanks in advance.
Ranjit Kumar
Ranjit-Choose one large cap and one small and mid cap fund from above list.
Thanks for the answer. Sorry doob question, but will investing in the funds you have recommended also have tax savings benefits?
Regards
Ranjit Kumar
Ranjit-Tax savings funds are also called ELSS funds. So check before that. In above list I separated them specifically. All mutual funds will not be tax saving funds.
Hi Basu,
I am planning to start investing in ICICI Tax Plan Direct growth. But now NAV is high. Shall i wait for NAV to get down and start SIP or Shall I start investing ASAP. Even same applies for HDFC balanced fund. I am planning for HDFC balanced fund as the Expense ratio is less. Currently i am investing in HDFC tax saver, But the return in ICICI tax plan is higher than HDFC tax saver.
Am I going in the right direction.
Rajiv-NAV not at all matters. So start now and keep in mind that equity is for long term.
Thanks Basu for your suggestion.
Dear Sir,
I am NRI and i would like to invest 1.2 lacs per months in the SIP for the period of 7 years.
The outcome of the money for the purpose of children education, so can i invest all the 1.2 Lacs in SIP or shall invest 50% in R&D (tax free i guess) in my NRE account?
I am worry about risk in SIP thats the reason asking.
I have 10 Lacs in my hand where to invest this money also i am applied and got home loan so i need to start the EMI from March 2015 onwards (50 Lacs Loan availed- around Rs. 60K EMI is required to pay every month).
Still after all the expenditure i have 1.2 lacs for my children education purpose i need to invest and totally confused about whether 100% SIP or 50:50 – SIP & RD.
I am moderate risk not high risk taker.
Kindly help me to come out this confusion.
Thanks
Dear Sir,
Kindly give me the SIP allocations if SIP is good for the 1.2 lacs per month.
thank you in advance for your kind help
Ranjan-You choose the funds from above list. Go through below comments.
Hi Basu,
I can invest for longer time duration. My age is 40 and this money can be invested for 5-8 yrs
RS-Chose balanced fund like HDFC Balanced fund and start investing by dividing the lump sum into 6 or 12.
Hello sir
I have invested in these fund around 6 lacs in last 2 months as part of my 2015 investment
is it a right move. How long should i plan to keep this considering a up market
Invested Amount Scheme Name
100000.00 SBI Magnum MidCap Fund-Reg(D)
100000.00 HDFC Mid-Cap Opportunities Fund(G)
100000.00 Canara Rob Emerg Eq Fund-Reg(G)
100000.00 Birla SL Frontline Equity Fund(G)
100000,00 Reliance Equity Opportunities Fund(G)
10000.00 PineBridge Infra & Eco Reform Fund(G)
25000 .00 HSBC India Opportunities Fund(G)
30000.00 Sundaram S.M.I.L.E Fund(G)
25000.00 UTI Transportation & Logistics Fund(G)
15000.00 Reliance Banking Fund(G)
Dious-Why so many sector and small and mid cap funds?
Sir i m new to mutual fund i want to invest 3000 in 3 sip plans for 10 years please can u suggests best sip plans for good return
WHICH IS BETTER DIVERSIFIED FUND
UTI MNC OR TATA ETHICAL OR RELIANCE EQUITY OPPORTUNITY
choose one of three for long time investement
Akash-Reliance.
Hi,
Let me start here with many thanks and appreciation toward your website and free online guidance to newbies like me.
With the help of your website i have concluded my 2015 top MF search as following with 30k/pm SIP investment target:
LARGE CAP – ICICI Prudential Focused Bluechip Equity Fund – 2000/-pm
MID & SMALL CAP-
HDFC Mid-Cap Opportunities Fund – 5000/-pm
SBI Magnum Global Fund – 5000/-pm
ICICI Prudential Value Discovery Fund – 5000/-pm
Reliance Small Cap Fund – 4000/-pm
Canara Robeco Emerging Equities Fund – 3000/-pm
UTI Mid Cap Fund – 3000/-pm
Birla Sun Life Pure Value Fund – 3000/-pm
I chose more SIP amt due to Low risk.
I would highly appreciate if you could correct me or comment on this plan.
Thanks & Regards
Imran Siddique
Imran-One large cap and one small and mid cap is suffice.
Hello Sir,
Thanks for your info about ELSS! I would like to invest 50,000 rupees in ELSS for tax saving purpose and can have it for a lock in period of 5 years. As this is already January, is SIP possible for this year? Also do i need to go for SIP or Lump sum next year onwards to be safer and get good returns?
Also please suggest me which ELSS i can opt for this year with the investment plan of 50K and lock in for 5 yeas.
Thanks in advance!
Edwin-This year or next year, ELSS offers SIP. This year you have less time. So you can plan monthly yourself until 31st March. Lock in for ELSS is 3 years. But do remember that equity investment is meant for more than 5 years of investment. Funds about investments are already mentioned above.
Hi Basu,
Thanks for spreading the financial literacy. Unless our kids are not financial savvy, we will be hard pressed to read the benefits of demographic dividend.
To give you context, I am financially literate and directly invest in equity. I have decent exposure in debt instruments too. From insurance perspective, I have term plans too in place.
Due to some positive surprises, I have about 4-5 l of cash surplus. Given the sudden rise in equity prices, I am not comfortable in directly investing in equity. I am looking for safe investment with minimal risk of principal and about 8-10% of post tax return.
Can you please suggest if I invest in debt fund or equity fund. Also, how should I spread out my investment over multiple months.
RS-Time frame?
Hi Basu,
I went through your blog and found it quite interesting . Let me share my MF investments.
1.HDFC Equity Fund – Regular Growth- Cancelled- Holding Units
2.HDFC Mid-Cap Opportunities Fund – Regular Growth- Cancelled- Holding Units
3.HDFC Top 200 Fund – Regular Growth- Cancelled- Holding Units
4.HDFC Mid-Cap Opportunities Fund – Direct Plan – Growth Option-Active- 1k(SIP)
5.HDFC TaxSaver – Direct Plan – Growth Option-1k (SIP)
6.HDFC Top 200 Fund – Direct Plan – Growth Option-1k(SIP)
7.ICICI Prudential Focused Bluechip -Regular Growth -1k (SIP)
I am planning to invest in ICICI Balanced Fund – Reg-Growth (1k-SIP) and ICICI Tax planner -Reg-Growth(1k-SIP)
Please let me know if any modification in investment is required.
Rajiv-why so many funds? To me HDFC Top 200 or ICICI Pru Focussed Bluechip and along with that HDFC Midcap Opp are suffice.
Thanks Basu,
So Shall i redeem the units hold for which SIP has been stopped. No make a note here.. it has not completed 1 year. So there will be question of 1% exit load.
Rajiv-If funds are performing well then let it complete 1 year. Then you can switch so that you can’t bear the exist load as well as taxation.
Hello sir,
I am new to MF investment . I have decided to invest forty thousand rupees(40000) per month in SIP for 10 year.I am already having insurance coverage, no home loan ,emergency fund for 1 year and investing 1 Lakh per annum in PPF apart from my regular PF contribution.
I will select one MF from each category.
Now my concern is suppose i started investing 40000 per month in SIP and down the line if i will not have regular income(i am in private job) to invest every month. In that case if i hold my already invested money in SIP for 10 year, it will be beneficial ?? what is the best option?
Please advise me .
Thanks & regards
Ramesh
Ramesh-Yes you can discontinue in future and hold the invested amount for the 10 years. No need to worry…go ahead.
Hi,
I have 10 Lacs of FD today and I take out monthly payout to buy equity every month from it. But with 30% tax bracket, I feel switching into debt fund would be more beneficial. I don’t intent to withdraw from this corpus in short term and would like it to grow further. Please suggest if I should switch now and if yes which one should I invest in given the market scenario with this stable government. Secondly, I have some incremental lumpsum worth 5 Lacs ready for investment into equity. I am thinking of following funds for investments keeping in the current market read with equal distribution. Please share your valuable feedback.
Reliance Banking Fund
Franklin India High Growth Companies
Birla MNC
UTI Transport and Logistics
SBI Small and Mid Cap
Tee-Switching to debt fund is correct. But debt fund income also taxable based on your holding. If less than 3 years then it will be at your individual tax slab. If more than 3 years then with indexation it will be 20%. So work out yourself how much you want to outgo and what will be taxation on that. I feel your fund selection is too much sector oriented. Also you not specified the time limit of your holding into equity. So I am unable to comment.
Thanks for the revert. Could you please suggest approx. how much taxation should I expect after 3 years? My horizon for this lump sum is long term i.e. 10 -15 years and plan to keep reviewing the Debt fund after 3 years. Please suggest a good debt fund as well.
The fund selection done is primarily keeping in mind the anticipated market growth. Do you see any issue with this approach or funds? My horizon for these funds are 1 – 3 years. I took a snapshot of the past performances for these MFs and then came with these and the rationale being following areas to cover –
Large Cap – L&T Equity
Banking – Reliance Banking (with more rate cuts expected)
Small Cap – SBI Small/MidCap
MultiCap – Franklin High Growth
Others – Birla MNC and UTI Transportation.
Please share your views on this approach and guide accordingly.
Tee-Why sector funds? Also on what base you mentioned as your fund selection was based on the anticipated market growth? Can you elaborate more?
Here is my rationale –
Large Cap – L&T Equity ~ Past performances; Future growth prospects in LargeCaps
Banking: Expected more repo cutes producing better banking platform for India in coming years
MNC- Past performances
Transport – India looking ahead to improves on the infra and logistics
Please share your views and comment.
Good eye opener for the ppl like me who is planning to start furst time in Mutal fund. I am 39 yrs and work in an IT company and planning to start my first mutal fund. I am moderate risk taker planning to invest for 2 to 3 yrs pl suggest me the funds. Here are the ones i have short listed based on your ratings.. I might be wrong too.
HFDC Balanced Fun (G) 20%
HDFC Midcap Opp Fund (G) 20%
Franklin India Blue chip Fund (G) 40%
Thanks,
Lakshmi-NONE…because your time horizon is too short. Stay away from any equity oriented investment.
So should i consider short term funds or Arbitrage funds which are short team. In FD i get only 8.75% and that too taxable. Any other suggestion from your side?
Thanks Again for your prompt response.
Lakshmi-FDs are taxable. But do you feel short term funds are tax free? So check your taxation and along with that do remember that debt funds are also not purely risk free.
Hello sir ,
I am Planning to invest 40K monthly , which i was saving and putting completely in RD , for last two year . I am very new to Mutual Fund , Can you please help me to describe ratio where to put , I am Planning to do for at least 10-15 years . Portfolio how to diversify . What is the best approach one should follow .
Thanks
Sumit Ghosh
Sumit-Choose one large cap and another small and mid cap. Start investing.
Dear Basavaraj,
Thank you for maintaining such a valuable and informative website. I feel a bit guilty to ask for free advice, but since I value your knowledge I hope its better to consult you.
I currently have no SIP, and am thinking of of staring 1lakh/m in SIP.
Big ticket expenses coming up are: Daughter’s studies (Rs. 1 Crore, in 11 year) , her marriage (in 15 years ) , retirement.
I already have couple of houses and have no other home or other loans. Total monthly household income is 3 l.
I am not much of risk taker, so can you suggest a SIP plan to reach my goals?
Thanks a lot mate…
Vinu-Select one largecap, one small and mid cap and another balanced fund. Three funds are enough for all your equity investment.
Hi Basu,
Gr8 Job by you..!!
Spreading Happiness & Making them Aware in a straight and fair way is one of your strongest traits..!!
Your advise is desired for below.
A)
SIP : For both fund, Planned as 2K/Month , Horizon – 10 Years (Total Investment – 480,000, Expected Return – 15-20% in year 2026 an amount of principle + desired retrun)
1. ICICI Pru Value Discovery Fund -Direct (Growth)
2. ICICI Pru Dynamic Fund -Direct (Growth)
M i on a right track ?
B)
What is your advise on Fund Performance and Delivery of Returns with a rate of 15-20%
1. BSL Focused Equity Fund – Series 4 (U/S 80CCG of IT ACT)-DIV-REGULAR.
2. SUNDARAM WORLD BRAND FUND SR 2-1800 DAYS REGULAR DIVIDEND.
3. ICICI Prudential Growth Fund Series 5 Direct Plan Dividend Payout
I have invested in above three NFOs with a vision of fulfilling the desired return %. What you would advise on Fund (NFO) ?
Regards,
Vishal
Vishal- A) Both funds are good. You continue. B) Why you opted dividend option? Also when you have good track record funds to invest then why you take risk of choosing NFOs? Stay away from NFOs. Also world or international funds are good only when you understand the economy of where they are investing. So if you don’t know what they follow then simply stay away.
Thanks Basu.
Again one word for you “Gr8 Job”.
You are spreading happiness and awareness.
One more question. I have got 30k cash which i am thinking to invest in HDFC Mid Cap as single time investment. – M i right ? (Investment Horizon – 7 Years)
Please suggest a suitable fund, if it is not a suitable fund.
Regards,
Vishal
Vishal-Go ahead.
Hi Basavaraj
I am not good with understanding of funds and invest only based on friends recommendation when i need to do for the purpose of tax saving. I invested in these mutual funds back in 2008.
1. BSL Tax Relief’96 Fund- (ELSS U/S 80C of IT ACT) – Growth-Regular Plan (Rs 20000)
2. DSP BlackRock Tax Saver Fund – Regular Plan – Growth (Rs 25000)
3. HDFC TaxSaver – Growth (Rs 10000)
4. HDFC Long Term Advantage Fund – Growth (Rs 10000)
Investment was done via the banks. And it was a single payment for each of these. Total value as of March 2013 (CAS Report) was Rs 127,208.
Recently i opened a FundIndia account and i am planning to invest in MF SIP in multiple funds for Rs 10000 per month. I am following your recommendation to invest in these funds.
1. ICICI Pru Focussed Bluechip – Rs 4000/month
2. HDFC Mid-Cap Opportunities – Rs 3000/month
3. HDFC Balanced Fund – Rs 3000/fund
Questions:
1. What do i do with my old 4 funds? Should i let them grow or refund money and invest them somewhere else?
2. These 3 new funds i am selecting are not tax saving funds. How are these funds different from tax saving funds? What is better to invest in – the above 3 funds or tax saving funds? I mean if instead of these, i invest in tax saving funds, it will help me with yearly tax savings also. Please suggest.
I am an IT engineer by profession.
Ankurpeet-If the existing funds are performing well then let it be continue. Three new funds and existing funds may have exposure in same stocks or asset class. Check that one by visiting the earlier post “How to compare Mutual Fund portfolio overlap?“. Also if you want to invest in tax saving funds then I think one fund is suffice than 4-5 funds.
Dear Basavaraj,
I want to generate 35 Lakhs in three years time frame to repay my home loan. I am working in IT company.
Can you please suggest me following?
How much SIP per Month I should make to achieve my target in 3 years?
which are the FUND you recommend to invest ?
Thanks,
Suresh
Suresh-None…neither equity nor debt funds. Simply use Bank RD to achieve this goal. Period is too short. So no mutual funds (even debt funds too considering the tax implications).
Thanks for the advice. Can you please let me know how much RD I should make per month and in which Bank to achieve this?
What will be tax implication?
Regards,
Suresh
Hi, Can i do SIP of direct plans through NJ trading and demat account ? If yes then are there any differences in NAV if instead i buy directly throgh AMC ?
Sandeep-NJ Trading or any Demat Account is not DIRECT investment. It is online investment. So it is as good as investing through broker.
Suresh-Please calculate yourself based on the goal. You will find many online tools to do this. Choosing bank depends on where you have already savings account and easily you can transfer money to RD account or request for auto debit. Interest part of RD is taxable according to one’s tax slab.
Dear Mr Basavaraj,
Greetings! First of all, heartiest congratulations to you and your team who are doing a world of good to all the (To-be) Investors out there.
I am an IT Professional. I have FDs worth 2 Lacs, Cash of abt 1.5 Lacs, EPF and PPF investments and have just forayed into Equity Investments via MFs-SIP. My risk appetite is MODERATE as in I am not very Aggressive and neither will I be shaken by Market Slumps. I have already calculated my Goals and the Sums I will need at different point of time. I am entering MFs with a Long Term View 15-25 Years as per various goals, I have.
For now, I have started Monthly SIPs of Rs 2000/- each for below mentioned Funds. I will increase my SIPs/Investments as I get more confident into MFs. 🙂
1. ICICI Pru Focused Bluechip Fund – Growth – Direct
2. ICICI Pru Balanced Fund – Growth – Direct
3. Birla SL Top 100 – Growth – Direct
4. Reliance Small Cap – Growth – Direct
In addition, I have made a lump sum investment of just Rs 5000/- into ‘Franklin Templeton Build India Fund – Growth – Direct’ considering it’s Thematic – Infrastructure Fund. But, later on, after comparing it’s Portfolio with other Funds (that I have invested in), I realized that this Fund is not fitting in as it is not lending diversification to my portfolio as well as it is a Sector Fund which are not advisable (by many Financial Advisors) to invest in.
As of now My 4 SIPs cover around 160+ Stocks.
My queries are:
I am getting this feeling that I should add 1 more Good Fund to my portfolio. Is my Portfolio correct or would you advise any Changes/Addition?
Also, I am planning to get a Life Insurance Term Plan, but got confused after reading an Article (http://www.basunivesh.com/2015/01/08/irda-claim-settlement-ratio-2013-2014-which-is-best-life-insurance-company/) from your website wherein it is mentioned that a company’s Current Claim Settlement ratio can’t be a set criteria for selecting a Term Plan as during initial years, Claim rejections are naturally higher. But then, on what basis should I choose my Term Plan?
Ravi-Let me know how you chosen these funds. Also in my view you can avoid Birla fund. Have you checked the portfolio overlap of your investment? Because one large cap, one small and mid cap and finally one balanced funds are enough to one’s portfolio. Term Insurance buying must be based on your budget, plan feature, comfortable with company and to the certain extent how old are they into this business (claim settlement ratio). But do remember that disclosing all facts properly is the key than any other factors.
Dear Mr Basavaraj,
Thanks a lot for your reply.
I selected these funds on the basis of Rankings, their respective returns in last 5 years, how credible the AMC’s are (that’s my personal opinion). Also, I made sure (as best as I could :)) to have 1 Large Cap, 1 Large & Mid Cap, 1 Balanced and 1 Small cap fund.
As you also pointed out, I couldn’t really figure out in which Category (Large Cap, Large & Mid Cap or Diversified) exactly does the Birla SL Top 100 fund belong. Can you please advise why should I not go for Birla SL Top 100 and which other Fund should I replace it with?
Thanks a lot for your advice regarding Term Life Insurance as well. 🙂 I have decided to go for ICICI iProtect.
Ravi-Please check the overlap % of your portfolio by going through my earlier post “How to compare Mutual Fund portfolio overlap?“. Let me know what results you get. Then we discuss further. What you say?
Thanks Mr Basavaraj.
I had done portfolio comparison few days back but this time I did using Mr Pattu’s excel tool as directed by you and I see your point more clearly. Thanks to Mr Pattu for such a wonderful tool. 🙂
1 quick question about that tool though: Does it update itself and analyze against the LATEST portfolio information from MF Companies?
There is 64% overlap between ‘ICICI Focused BlueChip’ and ‘Birla Sun Life Top 100’. Also, there is just 36% Overlap between ‘ICICI Prudential Focused’ and ‘Franklin India Prima Plus’. According to that, I should cancel the Birla SIP and start Franklin India Prima Plus SIP. Any other/additional funds you may suggest?
P.S.: Also, I would like to mention a very Interesting and Informative and Simple website for Mutual Fund Analysis/Comparison and other related information. http://www.fundoo.com. It might be good if you may check it out and share your reviews on it for other users.
Ravi-Thanks that you are now in right track now 🙂 Yes the excel sheet will update the latest data itself. No need to worry. Why to choose another funds? Choose from the existing funds and restrict your number of funds to maximum of 3-4. Yes I know about this site and I already showcased this where guest post by Mr.Sharad Singh, CEO, Valuefy Solutions, a man behind “The Fundoo” written a post “How to choose best performing Mutual Funds in India?“.
Many thanks Mr. Basavaraj.
Thanks for providing nice information. I have a very basic question, How can people able to invest in three four different type of SIPs like, franklin,hdfc, icici, kotak. For this do we need to open an AMC account in all the banks.
Is there any good platform where we can invest in direct plan easily ?
Also I want to invest 10k in different SIP growth for 10-20 years, but I am new to it so can you please suggest which should I prefer?
ICICI Blue Focused is one which I have decided ? how is hdfc top 200 ?
Balram-My earlier post “How to invest in Mutual Funds in India online?” will help you.
Hi Basavaraj,
I am addicted to your blogs 🙂 great work.. I want to cut short my MF profile by combining the funds and having a max 4… Please let me know which one to retain and which one to discontinue
My investments –
1. ICICI Pru focused bluechip – Direct G – 3k
2. UTI Opportunities – Direct G – 4k
3. Quntum long term equity – Direct – 2k
4. HDFC Equity – Regular G – 2k
5. IDFC Premier equity – Direct G – 2k
6. ICICI Pru value discovery – Direct G – 2k
7. HDFC Mid cap opportunities – Direct G – 3k
8. ICICI Pru tax plan – Direct G – 2k
Priya-If I am in your situation then I might retained one large cap and another small and mid cap. But your list of funds are good. So in my view retain one large cap, one small and mid cap and one tax plan. Three funds are enough. I don’t think by having Large and Mid Cap will actually diversify your investment.
Dear Basavaraj,
I am doing long term planning for my parent ( Mother ) as part of their retirement and hence would want to put their money in safe fund with limited exposer to equity,My Mother is currently age 59 would be retiring in few month
I am looking at investing part of their retirement fund of Rs 10 Lacs in MF , Right now I have an amount of Rs 3 Lacs and in near future would be getting 6 Lacs.The remaining 10 Lacs would be invested in Postal Saving MIP or FD.
I am planning to invest the 3 Lacs plus 6 Lacs total 10 Lacs in
ICICI Prudential Flexible Income Plan-Direct with Dividend Re-Investment option.With that 10 Lac I am planning to invest in 2 SIP opting for Growth Option for both
ICICI Balanced Mutual Fund – 7000 pm
ICICI Prudential Child Care Plan(Study)- 7000pm
This SIP would run for a period of 6 Years.Can you suggest if this is a right course of Action and if not so can you suggest changes appropriate as per your advise.
Thank You.
Austin
Austin-Do you feel balanced funds 65% exposure to equity is safe bet for you? When you say that planning for parents retirement and that too so near then why to take risk? Please avoid any equity investment for short term goals.
HI
I WANT TO invest for retirement of my child i mean to say was 40 years 30 to 40 years then what is the risk in investing in higher proportion in mid cap fund please suggest me which phone should i invest and i am ready to take risk so please suggest
suggest me the ratio fund wise. I don’t want to invest in safety because my horizon is long. And just want to know only about to risk
Sachin-It is great to know that you are planning to invest for your kid’s retirement plan. Wonderful 🙂 But whether your retirement is planned? Please let me know the meaning of RISK according to you.
Basavaraj , Thank You for your reply.
Your concerns are valid but without some form of equity expose there is no chance of growth.
Alternatively I was looking at dividing the fund 70:30
70 % HDFC MF Monthly Income Plan – Long Term Plan ( which is 73 % Dept Exposure )
30 % into Instrument with 80-90 % debt exposure.
Can you suggest a good MF where I can invest the 30 % of income via SIP/STP ?
Thank You
Austin-I think it is not wise to go for equity for short term. Rest is left with you. Have you considered the taxation issue of HDFC MIP? STP for what purpose?
Dear Basavaraj ,
Thank You for your response. I am not aware of the taxation issue for MIP.
But I tend to agree with you equity investement on short term would be risky and considering my parents would prefer a safe investment , Investing the lumsump in Debt Fund and Postal MIP is a safer choice.
Do you think for me planning for retirement ( I am 38 ) and looking at an investment period of 8 -10 years in SIP would be a good idea. I am a semi-conservative investor and I have about 6L amount that I plan to invest in SIP via STP.
The goal is to keep the 6 L in HDFC Liquid Fund and then use STP for a 5000 pm SIP into HDFC MIP for a period of 8 years. I already have an SIP of Rs 5000 in HDFC Balanced Fund which I plan to continue for similar period.
Can you please advise this would be the right approach for an investment horizon of 8-10 years.
Thank You
Austin-I think now you are on right track 🙂 Yes equity for a period of 8-10 years is always best. You can go ahead. But why HDFC MIP for that goal too? If you already have one balanced fund then either chose one large cap or small and mid cap fund.
Thank You Basavaraj,
As to why HDFC MIP the money I am investing is for long term retirement goals and I want to invest about 40 % in Funds which are 60 % Equity and 40 % Debt like HDFC Balanced Fund , and the remaining 60 % into MF which has minimum Equity Exposure like HDFC MIP LT Plan which has 25 % exposure to Equity.
Total Fund Value I am looking at during 10 years period to invest in MF is 12 Lacs
The idea is to keep investment safe as possible while exposing to equity market , Although having limited knowledge I am not sure if this is the right approach and hence willing to change if you would suggest a better one.
I have already started 5K MIP in HDFC Balanced Fund but was thinking to reduce to 2.5/2.5 to HDFC Balanced and ICICI Balanced Fund ( to diversify but both are good balanced fund )
The remaining 60 % is for HDFC LT MIP or ICICI Pru MIP or equally in both to reduce my equity exposure although any other fund that has 10-15 % exposure to equity is also something I am willing to invest but haven’t found any.
Thank You.
Austin-I understand your concern. But one thing many not know that debt funds are equally risky when it comes to long term. So in my view balanced fund is correct option and along with that having either one large cap or small or mid cap will create a best portfolio rather than investing in MIP. I don’t know how you understood that MIPs are best for risk averse investment. Please think over it and decide. Two balanced funds (among HDFC and ICICI)? What diversification it serve?
Hi sir. M new to this field n not aware about the terms like large cap, mid cap etc. Would u please enlighten me over these terms. N please tell me other requirements to start investing in mutual funds.. I would be very tgankful to u
Sandeep-Then search these words you will find the answers. Because you must understand the basics before jumping into well.
Hello sir,
i wanted to invest 40000 per month via SIP for 10 year for my kid education.
Can you please suggested my how to allocation % of money in large cap, Mid & small, Multi cap, Balance fund and Debt fund. I am already investing 150000 in PPF for tax saving per annum.
I have decided to allocate money in 25%-large cap,25 % mid & small cap,15% Multi cap, 15% balanace fund and 20% debt fund. (5 MF , 1 fund from each category)
Please suggest .
Regards
Deepak
Deepak-One large cap and one small and mid cap fund is suffice.
Hello sir,
So do you mean that i should invest twenty thousand (20000) each in ICICI focused blue chip (large cap) and HDFC mid cap opportunity(Small & mid cap) fund?
Investing Forty thousand(400000) in only two fund will not be risk??
Please advise
Regards
deepak
Deepak-Counter question-Investing Rs.40,000 into five or six funds will diversify your risk and investment?
Sir,
Thank You first of all for your great efforts in helping people.
Since 2010 i have been investing in 3 MF’s, HDFC top 200, ICICI prudential focussed blue chip & IDFC premier equity plan-a(G) about 2,500/- each. I earned good profits & i had to redeem all fund units for my new flat down payment.
Now i want to start again freshly,
Should i continue in all the three above mentioned MF’s or should i make any changes?
Recently i came across BSL top 100 fund., is it good? can i add this to top 3 funds or any changes to be done?
Kindly advice ,
regards,
pavan
Pavan-You can continue with the existing three funds. No need of fresh funds.
Hi Sir,
I have invested around 80400 pa in LIC Jeevan saral for 20 years term, 25000 pa in Exide Insurance new fulfilling Life term is 15 years and with DCB Bank opened a RD monthly 10000. I would also like to diversify and start to invest further in a balanced growth sip pls suggest me some good options and high returns where I can invest. Also please share your suggestions and comments about my investment portfolio ?
Thanks
NG
Sir,
Further to add to my previous query I am 35 years old now and am married having one son.
LIC I have paid 5 years premium till date and Exide Life I have paid 2 years premium till date. Pls can you also comment if I need to continue these insurances or surrender them now ? your valuable suggestions would be much appreciated.
Thanks
NG
Neil-Are these plans are term insurance or endowment plans?
Hello sir,
Thanks for your quick reply, Yes, both these insurances are endowment plans.
Pls can you kindly suggest further if I need to continue these insurance policies for long term period benefits or if investing in PPF is a better option ? I want to plan to create a corpus for my retirement.
Neil-In my view PPF is better than these two plans.
Neil-First check your current investment of dummy products called LIC and Exide. Then think about investing freshly. Because on one way you claim to be balanced fund and another way you claim to be expecting high returns. Conflict of ideas. Please make sure what you need and how to manage your money from now.
Hello Sir,
I wanted to invest 30000 rs per month in SIP. I am already investing 150000 in PPF ,50000 in insurance and 100000 in Bank FD annually.
I have selected below fund.
SN Fund Amount/month
1 ICICI Prudential Focused Bluechip Equity Fund (G) 4000
2 UTI Equity Fund (G) 4000
3 Birla Sun Life Top 100 Fund (G) 4000
4 Franklin India Smaller Companies Fund (G) 2500
5 HDFC Mid-Cap Opportunities Fund (G) 2500
6 Reliance Small Cap Fund (G) 2500
7 UTI Mid Cap Fund (G) 2500
8 Franklin India High Growth Companies Fund (G) 3000
9 Reliance Equity Opportunities Fund – Retail Plan (G) 3000
10 ICICI Balance Fund 2000
Please suggest if the above selecting is correct for 10 year.
Also I need one below suggestion
a. Which one is better Birla Sun Life Top 100 Fund or Birla Sun Life frontline equity. As when I compared 1 ,3 and 5 year returns Birla Sun Life Top 100 Fund has always given little more than Birla Sun Life frontline equity. Also is any other equity fund in large cap which is better than Birla fund e.g. Axis equity or Mirae Asset India Opportunities Fund or HDFC top 200 or BNP Paribas or SBI blue chip .I am little confused as money control as has given different rating for funds
b. Is it right decision to invest in 4 small & mid cap fund? or shall I distribute them amount(10000) in 2-3 fund only.
c. Is my money distribution in different mentioned fund is right? Considering my other investment of 3 lakhs per annum in PPF, Insurance and FD/debt fund.
Please advise.
Thanks & regards
Rohit
Rohit-Why so many funds? Please go through my earlier comments and above post. You will find my answer.
Sir,
Thanks a lot for sharing the valuable information.
I wanted to know the best pension plan available in the market. I am working in IT sector.
I have taken LIC’s retire and enjoy. But seems like its not a good plan.
Please advice us any retirement plan for payment term 15 years .
JJ
JJ-Sadly as of now there is no such BEST retirement plan available in Inida. Retire and Enjoy is the such another WORST plan to name.
Sir,
My current SIP split up of 4500/month is as follows:
HDFC Top 200 – 1000/month
HDFC Mid Cap – 1000/month
UTI Opportunities – 1500/month
UTI MNC – 1000/month
I would like to increase my SIP investment to 10000/month. Please suggest if I can continue in the above funds.
If so what should be my SIP split up. Also, please suggest if I should exit from any of the above funds and invest in another fund. I’m 30 years old and my investment period is for the next 20 years.
Rahul-Retain HDFC Top 200 or UTI Opp and I am not big fan of sector funds. So I might have avoided UTI MNC.
Sir,
My SIP ends next month. So if I retain only UTI Opportunities, what should I do with my existing investment in HDFC Top 200? Should I redeem it or switch to UTI Opportunities? The same with UTI MNC – should I switch? Is there any other fund that you think I should add to my portfolio?
Rahul-You can continue you with both the funds.
Hi Basavaraj,
Greetings for the day!
Appreciate your suggestions/advice.
1. I have currently 6 lac Rs in hand and same i need it within time frame of 6-8 months. Can you please suggest me better option to invest the same?
2. I am looking forward to invest Rs 10,00o per month in SIP. Ready to take higher risk. Kindly suggest best one suited for me.
Age – 26 Years
Married – Yes
Income – 5 lac +
Regards,
Vipin
Vipin-For your first query, suggest you either use Bank FDs or short term debt funds. Regarding second query, may I know you understanding of “ready to take higher risk”?
sir, i want to start SIP in Axis Midcap-G , DSPBR Micro Cap Reg-G , HDFC Equity-G , Sundaram Select Midcap Reg-G, what is your opinion ? I am planning to inest for minimum 10 years, sir what are your suggestions ?
Dr.S.Raut-How you selected these funds?
sir, these funds are suggested by agent , as i want to invest only in equity with risk .
Dr.S.Raut-One more question 🙂 What do you mean by risk (I mean according to you)?
In my terms , risk is fluctuations in stock prices .
Raut-Apart from HDFC Equity I am uncomfortable with rest. Instead you can choose one large cap and another small and mid cap from above list. Two funds are enough.
Thanks , giving me your valuable time and suggestion …
Hi Basu,
Gr8 Job by you..!!
Spreading Happiness & Making them Aware in a straight and fair way is one of your strongest traits..!!
Your advise is desired for below.
A)
SIP : For both fund, Planned as 2K/Month , Horizon – 10 Years (Total Investment – 480,000, Expected Return – 15-20% in year 2026 an amount of principle + desired retrun)
1. ICICI Pru Value Discovery Fund -Direct (Growth)
2. ICICI Pru Dynamic Fund -Direct (Growth)
M i on a right track ?
B)
What is your advise on Fund Performance and Delivery of Returns with a rate of 15-20%
1. BSL Focused Equity Fund – Series 4 (U/S 80CCG of IT ACT)-DIV-REGULAR.
2. SUNDARAM WORLD BRAND FUND SR 2-1800 DAYS REGULAR DIVIDEND.
3. ICICI Prudential Growth Fund Series 5 Direct Plan Dividend Payout
I have invested in above three NFOs with a vision of fulfilling the desired return %. What you would advise on Fund (NFO) ?
Regards,
Vishal
Hi Basu,
I have been investing in following funds Rs.2,000 each since Feb-2013 in SIP i.e. total investment of Rs.10,000 per month.All the funds are in growth option.
-HDFC Top 200
-HDFC Mid cap Opportunities
-IDFC Premier Equity
-Reliance Equity Opportunities
-SBI Emerging Business
Can I know your view whether to continue investing in above funds or any changes required.
Thank you.
Anand-Why so many small and mid cap funds?
Last one year I felt small and mid cap funds performed well compared to large cap funds. Plz suggest me if any addition or deletion for a balanced portfolio.My primary objective to invest 10 to 15 years to meet the expense later.
Anand-But don’t over invest in small and mid cap.
Hi,
I was investing in below listed funds from last 4 years (INR 1000 each), should I continue to invest in the same.
Franklin India Blue chip Fund
Reliance RSF Equity option
HDFC Prudence Fund
HDFC Mid Cap Opp.
Franklin Smaller companies Fund
All funds are Growth Option Funds.
Thanks & Regards
Subodh
Subodh-Why can’t retain one mid cap among Franklin or HDFC? Rest are acceptable.
Hi Basavaraj,
Noted with Thanks.
I want to continue this investment for 7+ years at least.
I want to invest some lump sump amount in MF in next 2 years for holding period of 10+ years. Can it is possible to suggest MF for the same.
I was listed below funds. Kindly let me know your opinion for the same.All are Growth Option
Franklin Templeton Prima fund.
Franklin Templeton Prima Plus
ICICI Dynamic fund
ICICI discovery Fund
HDFC Equity Fund
UTI Opprtunities
Subodh-In my view one large cap and another small and mid cap fund is enough.
Sir,
New year greetings to you! One question in the context of mutual funds, though not related to the “best funds” topic that your article talks about. How do G-Sec/gilt funds work and manage to give some profit to the investor (agree that the rate is much less than other equity categories)? I recall seeing somewhere a summary of performance of various funds and was surprised to see return rate for 3-year period for some long-term gilt funds being close to 12%, which is around 3 percentage points higher than most bank fixed deposits. Given that gilt funds are for government securities/bills (as opposed to being equities/debt-bonds of profit-oriented private sector), how does the government give back (on an average) to investors a profit that is higher than that what banks give? Banks get a lot of income from interest paid on loans they lent out, but how does government make profit from security bills I thought are primarily meant to meet government’s needs, which obviously are not expected to be profit-oriented but rather administration-related expenditures, expenditure on government projects which again are people-oriented rather than being profit-motivated? Just curious to know this. I understand that the question is more related to economics rather than to individual finance planning 🙂
Amandeep-You misunderstood that Govt will give more than 3% to what is obliged on that particular bond. To simplify it. Let us say you hold a bond face value of Rs.100 and offering 8% yearly interest. Assume that currently banks offer 8.5% return on their FDs. So which one new investor look for? Obiviously the Bank FDs. Because it offers more than your bond. After few days let us say Bank reduced it’s interest to 7.5% on their FDs. Then where new investors look around for? They search for the bond sellers who are holding the bonds which are offering more than Bank FDs, I mean you. In that case you may offer them the selling price at Rs.105 (you bought it at Rs.100). By doing so you book the profit of Rs.5+any interest that bond already paid you. This is what exactly happens with bond funds. To be precise when interest rate falls in outer market then bond prices raise and it is reverse when banks raises interest rates. Do remember that bond funds are not risk free. Higher the tenure of bond higher the risk. So don’t be in wrong belief that Bond Funds are risk free or Govt actually pay the 12% return.
Thanks – that was very educative for me! Though I was aware that government and public sector bonds of certain types could be traded (i.e. one investor selling it to another) in the market, I did not know that the same market forces form the basis of possible (but non-guaranteed) higher yields from gilt funds. It is now clear why gilt funds are predominantly managed by mutual fund agencies. It also means one less investment option for people whose socio-religious norms do not permit knowingly earning money from speculative markets.
If you get time, please take a look at the question I asked about inflation-indexed bonds in your article on that topic – http://www.basunivesh.com/2013/05/20/rbis-inflation-indexed-bonds-will-they-work-for-you/#comment-73469.
Sincere thanks for your detailed response. As always, your response reveals an earnest attempt to ensure that people make well-informed decisions!
Hi,
I want to invest around 10000 rs /month for a time horizon of more than 10 years in mutual funds , can you suggest me how should i split my investment. My goal is to create a healty corpus and i am open to high risk funds.
Pavan.L
Please do suggest my with the best funds that i can go with. I will not need any ELSS funds in my folio.
Pavan-It is already listed above.
Pavan-One large cap, one small and mid cap and if possible one balanced funds are enough.
I have started investment in SIP of RS 18000 with time horizon of 10 yrs plus with
moderate to aggressive risk appetite. I have already invested in PPF ( 5000/MONTH) AND PLI ( 5000/mth).Kindly suggest which fund to continue and or replace as i can invest upto 20 – 25000/mth .
1.ICICI Prudential Focused Bluechip Equity Retail Growth: 3000/mth
2.UTI Dynamic Bond Growth: 3000/mth
3.HDFC Mid-Cap Opportunities Fund Growth: 2000/mth
4.Canara Robeco Emerging Equities Growth: 2000/mth
5.UTI MNC Fund Growth:2000/mth
6.HDFC Balanced Fund Growth:3000/mth
7.UTI Opportunities Fund Growth: 3000/mth
Sachin-Who selected these funds for you? Whether you did research before investing?
hi
these funds were suggested by a relative of mine but i am not sure i should invest in all of them or replace some of them with better prospects
Sachin-My choice from your listed funds-ICICI Pru Focussed Bluechip Fund, HDFC Mid Cap Opp Fund, HDFC Balanced Fund. Rest of the funds are not required.
Sir,
Is it wise to invest in L&T Business Cycle Fund for long term?
Which is the best website where i can invest in all these MFs at one place?
Ankurpreet-website in the same online and direct? Wait for mutual fund utility platform. Soon your dream will be reality 🙂
Hi sir,
I would like to know the lock period for canara robeco equity tax saver (G).
Krishna-Including Canara Robeco Equity Tax Saver, all ELSS have lock-in period of 3 years. In case of SIP, each investment is considered as fresh investment. So in case of monthly SIP the first month SIP must complete 3 years then only it is eligible for withdrawal and same continue with subsequent monthly SIPs.
Dear Basavraj,
Which option is better SIP or Lumpusump for longer period??
Maunang-It depends on your comfort. If you have huge cash now then go for long term one time investment. If don’t have then SIP. But do remember that both options are for long term.
I am sahil sir I would like to invest 25,000 every year for 5 years will you suggest be which will be the best mutual fund for investing and what good returns will i get after 5 years . Is HDFC short term mutual fund ok or ICICI prudential tax benefit is ok for 5 years pls suggest me good idea for my child investment
Sahil-If your time horizon is less than 5 years then don’t enter. Keep it in mind that equity investment should be minimum of 5-7 years or more.
If I want to invest upto 10,000 a month for 5 years, what will be best option…
Hi Basavaraj
A. Invest all amount in HDFC Mid Cap Fund
B. Equally invest in 2 like two HDFC Mid Cap Fund and HDFC Balanced plan.
C. Invest in upto 5 different plans for safety.
This is going to be my first Investment and I am covered for Tax benefits with PPF, so basically need something with fast returns over 5 years to achieve finacial goals.
Thanks
Pardeep
Pradeep-FAST RETURN within 5 Years…sorry no EQUITY INVESTMENT.
So what kind of periods are suggested up to 10 years or more?
Pradeep-It must be always more than 5+ years. Longer the better.
Hi Basvaraj,
I need to do investment for 20,000 as a one time payment not annual premium for tax exemption this year only.
Would like to cash out the return after 4 or 5 years. Could you please suggest the best MF for the highest return.
I need to do it today only so please help asa.
Thanks,
Pratibha.
Pratibha-NONE…because equity investment (ELSS in your case) not meant for such short term investment horizon of 4-5 years. If you have time frame of more than 5 year then invest. Otherwise my suggestion is to stay away.
Sir,
1. What is the cap for investing in Tax Saving ELSS for the current year.
2. Most of the articles are recommending ELSS.
3. If my wife can invest Rs 1.5 Lakhs in ELSS, please advise where to put money.
Thanks in advance.
Rama-It is maximum of Rs.1,50,000 (that includes Life Insurance, NSC, PPF, EPF of your contribution and many more). Yes she can invest but source must be from your end. But do you know ELSS have lock in of only 3 years and equity investment is meant for long term?
Sir
I am SOMASHEKHAR aged 32 working in a govt service. sir I want to invest rs 6000 every month under sip of mutual funds. Pl suggest me the 6 funds of rs 1000 each for long term investment of 15-18 years for my children education and marriage.
Somashekhar-Sir why 6 funds? Do you feel you will be at safer by adding more funds?
Hi basavraj,
i am planning to do some investment for time horizon for 3 years, this is basically for clearing of loan
what would you suggest investing in debt or equity funds or RD etc..?
Nithin-If it less than 3 years then go for RD.
I wanted to invest 1 lakh. Kindly tell me the best shares to invest in
Sachin-Stock investment is not game of kid. Also the best method is to learn yourself to invest. Today I may recommend you one or few stocks. After few years the incurred loss then whose money will it be? So stay away from any such HOT TIPS of stock investment.
Hi Basavaraj Tonagatti,
Your article & replies seems impressive.
I am a investor & invested in market through various modes (ULIP,money back plans(guranteed income),PPF,NSC,MF (SIP & lump sum both),RD & FD).
Seeing the currently scenario of market from last 6 months I am investing only in MF. Currently I have 15000.00 with me, generally I use to FD of the same but if I opt investment in MF lump sum can u please suggest me
Thanks & Regards,
Ashish
Ashish-What is your time horizon of investment and whether basic things like Life Insurance, Health Insurance, Accidental Insurance and emergency funds are at place?
Hi,
Thanks for revert.
Please find my mf investment below:
Axis Long term equity Fund Lumpsum
Axis Hybrid Fund NFO Lumpsum
Reliance Small Cap Lumpsum
SBI emerging Bussiness fund SIP-1000.00
Sundaram Tax saver SIP-1000.00
HDFC Tax Saver SIP-1000.00
HDFC Mid Cap oppurtunities Fund SIP-1000.00
DSP BR micro cap SIP-1000.00
SBI magnum Insta cash Lumpsum
SBI magnum Tax gain Scheme Lumpsum
IDFC Dynamic Equity fund NFO Lumpsum
IDBI Diversified Fund Lumpsum
Health insurance:
Apollo Munich of me & my wife.Optimal plan
life Insurance.
IDBI fedral-Guranteed Income plan
Aegon-1 tradional & 1 ULIP
Each premium of 20000.00
PPF 20000-25000 annualy
try for FD every month till july 2014.seeing the current scenario started investing in MF on consultation of my advisers.
Thats it.
Time 3-5 years.If profit is good then ready for long term also.
Regards,
Ashish
Ashish-Why so many funds? Also apart from health insurance and PPF, I found rest dummy. What do you mean by “if profit is good then for long term also”? What if your portfolio is 50% slashed due to market downturn? First understand what you need. Then go ahead.
Frankly saying no one has suggested me this advice. I having 4-5 financial advisors and all are suggesting to invest in MF in this market scenario.The reason is that 3 of them are MF advisors & 2 of them belongs to bank but they are saying that it will be better to invest in MF in place of FD as this is a market of equity.
Since your views are so different thus I will try to get more of your views and will try to open all my financial investment pages in front of you.And trust me there are very few who are carrying out such awareness program,these type of suggestions are generally find within the family by a family member only (I believe)
I have that much in FD which will helpful to me in case of emergencies thus liquid cash available.
The reason for writing long term.
Then also if you will suggest for RD / FD I am ready for the same.
Your blogs are too good & you are doing a good work.This one I say is a “service without the aim of profit & thus helpful to everyone”.Best of Luck….
Now suggest me the way forward,if switching in SIP required will go for the same.
Thanks,
Ashish
Ashish-Retain one large cap, one small and mid cap and if possible one balanced fund. That’s it for all your investment in equity mutual fund. Try to come out of existing insurance as early as possible. Because they combine insurance with investment and which is worst type of strategy. Buy online term insurance of your choice to the tune of at least around 15-20 times of yearly income+any existing debt amount. If your time horizon is more than 7+ years then at this stage too you can enter into market. No harm in this. But restrict your funds to as I said above. Thanks for your kind words 🙂
Hi,
Thanks for revert.
Can u please specific to the funds as per the performance.If I am having then which,if not then which I should buy.I believe I do not have Balanced fund.
Enter into market means.I am already a investor & investing in MF.
Apart from term insurance I should not do any type of insurance.This is too different.I am of 30 yrs. In general I have invested 2 moneback plans & 1 ULIP.Is there any harm.
I have done Investment in ELSS/PPF/insurance from the motive of saving tax.Should I come out of ELSS & PPF ?
What about FD/RD/KVP,etc investment ?
Wrongly written
I have done Investment in ELSS/PPF/insurance from the motive of saving tax.Should I come out of ELSS & Insurance ?
Ashish-It require to work on each fund. So I am saying in generic. Do it yourself. It is not a rocket science. Already having investment is different but fresh investment must be fresh look at time frame. You already trapped with ULIPs and Traditional plans of insurance, still feel you have not done anything wrong? As I said many times, your investment must be tax efficient but at the same time, don’t forget to have proper goal attached to investments. Have you done that?
Ok… Got it.But currently it would be difficult for me discontinue all the insurance & ULIP.Will not invest further.Max will go for a term plan by end of this year.
Will be investing in ICICI Focused blue Chip & HDFC balanced growth..SIP of 1000.The money I have 15000.00 will be for a FD in this month.
I am continuing with above SIPs & MFs.& will try to continue by keeping 3-4 funds. As u suggested 1 large CAP,1 small CAP ,1 mid cap & 1 ballanaced fund.
I would continue with the ELSS SIP because I am dependent on them for tax saving.Axis LT Equity has given me a good return .I will keep the same & rest 1 SIP of ELSS.
All this aim for this year.
In case i am still wrong somewhere please correct me.
Thanks,
Ashish
Ashish-Go ahead.
Hi,
Your views on :
Birla Sun life Manufacturing Equity Fund
Regards,
Ashish
Ashish-I prefer diversified than sector specific.
Dear Basavaraj,
First thanks for this awesome write and being so active in helping people with their investments by replying to their questions 🙂
I need your valuable suggestion on an investment plan for planning annual vacations.
I am thinking upon investing Rs. 12000 (5000 + 5000 + 2000) in Sip per month for about one and utilizing it for an annual vacation.
I need your valuable suggestion in choosing best sip plan.
Thanks in advance
Regards
Gaurav
Gaurav-Annul vacation means you need the invested amount after one year of start right? Stay away from any equity investments if your time horizon is less than 5-7 Yrs.
Thanks Basavaraj,
Yes you are right, I would need the invested amount after an year.
So, what would you suggest as a best investment plan/mode/method for annual an
vacation?
Best regards
Gaurav
Gaurav-Best is to go for Bank RDs. Because in case of debt funds also, taxation will be same as that of Bank RDs and the return is not guaranteed. Instead in RDs it is guaranteed.
dear sir,
I need 5-6 lakh after 5 years.please suggest me how much I have to invest on mutual fund and which fund perfect for my gold.
Thank you
Dibyendu-Sorry no equity investments for a period of 5 years or less.
sir I want to invest through sip.is there have no any or bunch of fund
Dibyendu-May I know what do you mean by “bunch of fund”?
I mean to say one or more dan one fund. actually I want to buy a car after 5 or six year so I need DAT money.
Dibyendu-Stay away.
Sir, I’m a student who want to save his savings in sip to get maximum out of investments. my initial budget is 1000..I had tried to invest in icici focussed blue chip and franklin large cap as mentioned above,but the minimum investment is 5000 .. Can you suggest me a way to invest 1000… also note they are my long term savings 10+years ..I decided not to move them for any cause.Thanks for the article..
Sainath-Whether your investment is one time or monthly Rs.1,000?
Its monthly investment.
Sainath-Then you can invest easily in that fund. They said Rs.5,000 minimum for one time investment but not monthly. So can start with Rs.1,000 monthly SIP.
Thanks for the reply…kindly Please choose a plan to invest for me..
Sainath-It is already listed above.
Hi Basu,
Currently, I am holding the below funds since June – 2014.
1. HDFC Mid-Cap Opportunities Fund(G) – 1000k (SIP)
2. ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 2000k (SIP)
3. UTI Opportunities Fund(G) – 1000k (SIP)
4. Reliance Reg Savings Fund-Equity Plan(G) – 1000k (SIP)
My question is, Can I show them to Tax Savings under 80C for current financial year (2014-2015).
Because I have invested recently (June-2014) and these funds are not completed 1 year (investing period).
Please let me know. Thanks.
Ram-None of them are eligible for tax deduction under Sec.80C. So you can’t show them.
Hi Basu,
1. I have started my Mutual fund investment on Sep 2014 in ICICI Prudential Tax Plan – Direct Plan (G) for next 15 years, monthly 2000 and this for my child education, reason why i have chosen above plan, currently i am paying yearly 15000 thousand tax , so that i have chosen this Plan…
2. Also i am willing to invest in another fund (ICICI Prudential Focused Bluechip Equity Fund – Direct Plan (G)) for next 20 years, this is for my retirement.. Monthly – 2000… Is this good option?
3. Is this (ICICI Prudential Tax Plan – Direct Plan (G))the one which you have mentioned in large cap fund? Or am i selecting wrong fund? why i am asking this question.. you have given 5 years return in your list but when search about this fund… It’s started only on 2013 that’s why i am asking this question..
Karthikeyan-I said about ICICI Pru Bluechip Fund. Also there is no such diversification among tax funds like large cap or so. But you can go with these two funds for your future goals.
Thanks for the reply Basu,
One last question ..
Below mentioned two are same fund ?
I am trying to invest in first one (ICICI Prudential Focused Bluechip Equity Fund – Direct Plan (G)), but in your list it is given fund name as second one (ICICI Prudential Focused Bluechip Fund (G)) . I Just want to clarify whether both are same fund, If yes, shall i continue with first one?.
1. ICICI Prudential Focused Bluechip Equity Fund – Direct Plan (G)
2. ICICI Prudential Focused Bluechip Fund (G)
Karthikeyan-Very much same. Go ahead and best of luck 🙂
sir should i continuue with 2 funds of 2014
1. uti oppertunity(g) 1000 Rs.
2. icici tax pru fund 2000 Rs.
Raj-Yes continue.
Hello sir,
I have a general question.
Suppose after one year, I find a particular MF is not doing well, what should I do ?
Should I redeem the amount and put into another similar Fund category or wait for another year, as I have 1 yr exit load ?
Regards,
D Pal
Pal-Better to wait and watch. If it consistently start to under perform then switch.
Thank you sir.
Wishing you a Happy and Prosperous New Year.
Regards,
D Pal
Pal-Same to you too 🙂
Hi,
My current MF list is:
SBI Multicap Fund –
DSP Micro Cap fund
HDFC Equity Fund –
ICICI Pru Balanced
SBI Blue Chip Fund
Franklin Build India
Principal Emer-Bluechip
Can you suggest should I continue or switch to some other MF?
Gavin-Retain one large cap, mid and small cap and if possible one multi cap. Rest of them are not required.
Sir, I planned to start an SIP in mutual funds for Long duration i,e between 20-30 years .Please suggest for how long investment in mutual fund should be done.
Mangoboi-If your investment horizon is more than 5+ years then you can easily start investing in equity mutual funds. So in your case, you can go ahead.
Dear Basunivesh, Thanks for your excellent articles. I am little bit confused about mutual fund selection and ranking. For eg. HDFC Top 200 was recommended by you and SureshKP. But this fund is de ranked in valueresearch and moneycontrol.com and has been recommended to sell. I understand that there are so many parameters involved in ranking and selection. If possible can you please explain the basis of your selection. I am sure this will help many readers to select their funds of choice. Thank you.
neoanderson-HDFC Top 200 is consistent performer since 1990 periods. Even though it may be lower ranked by few ranking sites, but still check it’s benchmark return to fund return. You notice that it always beaten the benchmark. Along with that this fund have major exposure towards Finance and especially towards Banking. So sometime due to lethargic Govt initiatives this fund may under perform. But overall this fund is best choice among the category. Forget about SELL call or rankings. But look at it’s performance and indicators. It is best fund.
hello basu,
i have 5 funds, ICICI pru focused bluechip, quantum long term, IDFC pr equity, BSL frontline equity, ICICI value discovery. I park equal amount in all 5 funds.
Please suggest me shall i continue in same or should i change them.
thanx
Vinod-Better to retain any two to three funds (large cap and small and mid cap) and rest of them will not serve any purpose to you.
Hello Sir,
I saw your nice suggestion on different sectorial MFs.
I invested in two international equities as below :
F T India Feeder – Franklin U S Opportunities Fund
ICICI Prudential US Bluechip Equity Fund
Please let me know your suggestion on above funds on long term SIP.
Regards,
-D Pal
Pal-Why these US funds?
Sir,
I didn’t trust Indian MFs as I didn’t get good return in last 3 yrs, so I closed those one yr back and started those funds.
I am stopping these and starting according to your suggestion.
Thank you very much for your reply.
Let me know, if you want to suggest me anything else.
Regards,
D Pal
Pal-Please follow the first and utmost important thumb rule of equity investment-Always invest in equity only if your time frame is more than 5+ years. Second thumb rule is-Review the portfolio at least once in a year. If you need funds to name-The list is already published above.
Thank you sir.
I will follow your guidance.
Many thanks for giving valuable suggestions to me and others.
Regards,
D Pal
Hi Basu,
Could you please tel me the best liquid fund for 2015. Because i want park my money into liquid fund instead of saving bank.
Please let me know. Thanks.
Regards
Ram
Ram-There is nothing called BEST liquid fund. Because all liquid funds invest in short debt papers. Such debt products are safest and usually interest fluctuations will not vary that much. So choose a fund from mutual fund company which you feel comfortable.
Thanks Basu..
Hi Basu,
First of all, congratulations to you on the great work you are doing. This is very helpful for someone like me who is new to mutual funds investing.
I am 38yrs old. I started sips for 10k/month early this month with long term investment horizon of ~10yrs. I selected the following six funds – all growth options:
Large Cap : ICICI Pru Focussed Bluechip (2k) ; BSL Top 100 (2k) ; UTI Equity (2k)
Mid Cap : HDFC Mid-Cap Opportunities (1.5k) ; Franklin I Smaller Companies (1.5k)
Small Cap : DSPBR Micro Cap (1k)
Now I wish to increase my sips by another 10k/month.
Should I just 2x the investments in the above funds or choose newer funds. I did increase the sips in ICICI Pru Focusssed Bluechip and HDFC Mid-Cap opportunities as these got listed in your 2015 list as well.
Regards,
Amit
Amit-Continue your new investments in same funds.
Hi Basu,
Thanks for the list.
I am newbie, need some inputs from you.
I Have read it in many blogs that it is good to keep MF investment for long term to expect good returns.
So, we select one good large/mid/small cap fund and invest in the same.
Any reason on why it is required to shift the focus on others funds every year?
If this is the case, then we are deviating our sip every year and trying to time the mutual fund..right! 🙂
Also, any reason for you to not consider SBI Magnum Equity Fund? It’s in top 10 rank for 3yrs,5yrs,10yrs as per valuereasearchonline.
Thanks
Sandeep
Sandeep-I never said to switch it on yearly base. If the fund consistently under perform it’s peer or benchmark then you need to think. It may be either every year or once in a few years. But monitoring equity investments once in a year is must. That is what I am pointing. SBI may be star rated fund, few issues like expense ratio to other recommended large cap made me to stick to above two funds of this category.
Hi Basu,
This is good stuff. I too share Sandeep’s question, and find your answer convincing.
Just one doubt though..For long term growth, we selected the funds on the basis of say 5yr/10yr performance. (we did not look too much into the short term 1yr/2yr returns while making this decision).
Now when we review the performance after 1 year of investing and comparing with peers/index, are we not trying to conclude the performance of the fund based on 1yr/2yr returns while we selected the fund based on 5yr+ performance to begin with? It might be so that the fund already predicted poor returns in 1/2 yr term compared to its peers when we selected the fund?
I am confused a bit on this. Pls. share your thoughts.
Regards, Amit
Amit-Valid point 🙂 But at the same time we must also look into benchmark it is following. Reviewing yearly means not churning your investment yearly once. But give more time to funds. So if it is continuously under performing then churn it.
Thanks for the clarification.
Now, I look further into the list of Large cap funds to pick one good fund… Ofcouse, Franklin Bluechip and ICICI focussed bluechip is in the top, but I just have one more fund ahead of fran.. or ICICI – UTI Equity Fund..
Reasons for UTI EF to takeover Fran..or ICICI.. –
Better 1Y/3Y/5Y/10Y returns…
Better Sharpe Ratio, Alpha and almost similar SD, ER.
2008 and 2011 when market saw the crash, this fund has taken the lowest risk and the returns during this period is better than its peers (although negative 🙂 .. But that is the case with all funds)
Experienced Fund manager who has stayed for a long time..
As I mentioned, I am a newbie and it is only based on some theory I am looking at UTI EF..But you have more pratical experience and have seen things around…so definitely need your views please. Thanks
Sandeep-I never said that the fund I have chosen are ONLY best to invest and rest are bad. You can go with UTI fund also.
I have following portfolio : ICICI Prudential dynamic growth -Rs 2k , ICICI foucssed blue chip – Rs 1k, IDFC premier equity – Rs 2k per month as SIP started last year based on your article. What is your call on IDFC premier – Do i need to stop and start other fund as recommended as one year term is ending for this fund. Please advise.
Suresh-Continue investing. No need to worry.
Thanks. Will continue same portfolio.
Your comment is awaiting moderation.
Dear Basavaraj,
I am 33 yrs of age and investing in MFs for last 8 yrs. Recently I closed all my holdings and the amount was diverted for the purchase of a flat. Now I want to start new investment for a time zone of 10-15yrs. I would like to invest upto 10,000 per month in 2 or 3 funds. Having seen the ups and downs in the market, I am aware of the benefit of long term systematic investment. Please suggest me 2 or 3 funds wherein I can investment an amount of 10K/month.
Regards
Raghu
Raghu-Choose one large cap and small and mid cap from above list.
i have some investment in reliance diversified power sector, Birla infrastructure fund, Reliance gold fund etc ( Sector funds). This is apart from my ongoing SIP In diversified funds. I have already stopped SIP in sector funds but my investment is still there.
I am planning to switch my sector fund investment to diversified equity fund of the same AMC over 12 months. (same AMC to avoid expenses)
pl advise , is it a good decision or we should retain this investment.
Pratik-Better to switch as early as possible.
Hello,
I am new to Equity market & want to start investing.
Please can you guide me with the better option for both short term & long term returns.
Also, the amount I should start with.
Thank you,
Pinky
Pinky-How can with mere two lines of sharing guiding is possible? Need more info like how your financial planning set up as of now.
Hello,
Well, I have only fixed deposit and Gold as a medium of investment. My budget to invest in equity funds is Rs.10000/- monthly. I am looking for both short term & long term gains & new to such investments.
Kindly guide the plan or equity fund which can help me to earn profit both on short term & long term.
Also, Is there any plan which can help me to earn monthly income? And, if yes, than what is the amount I should invest in it?
Please let me know, if you require any more details.
Thank you,
Pinky Sarkar
Pinky-Please let me according to you how much years is short term and long term.
Basu nivesh ji! grateful for your valuable suggestions i timely quit smart platinum -now i have asked the agent to put that 99000 each fr pnb tax plan -ELSS.
Secondly i have planned to invest 10000 monthly on ICICICI-PRUDENTIAL TAX PLAN
and RELIANCE TAX SAVER MUTUAL FUND.I am aged 46 years i have ppf and lic purchsed long back.
Now i plan for my both kids FMCG.
RELIANCE REGULAR SAVING PLAN
hdfc BALANCED FUND
icicici pru focussed bluechip fund each 10,000 thats 40,ooo each kid every month. Is it wise.
Iam new to this mutual fund .
Yuv-How you selected these funds?
seeing your advices and as well as that of agent …i can hold back i have time ..PLEASE ADVICE I AM CONFUSED
Yuv-What advice you need?
Am i right in choosing these funds for tax benifits and for my kids future.Please guide.
Yuv-Retain ICICI Tax Saver and that one fund is enough.
Hi Sir,
I am new in Mutual Fund market. I want to invest 2000 per month for 5 years in SIP. So which fund I should select for very good return. Please suggest me.
Viral-Stay away from equity if your time horizon is just 5 years.
Dear Sir,
wish you a very Happy New Year
Sir, as per your suggestion of last year
I am doing SIP as follows
1- ICICI Prudential Focus Blue chip – 2000/Month ## Large Cap
2- Quantum Long Term Equity – 1000/Month ## Multi Cap
3- IDFC Premier Equity- 2000/Month ## Mid & Small Cap
4-HDFC Top 200- 1500/Month ## Large & Mid Cap
but in your suggestion for 2015
you have not mentioned about IDFC Premier Equity, Quantum Long Term and HDFC Top 200.
What shall I do now ??
I am a new invster and after reading your suggestion only I had started these SIP last year only.
please suggest and guide me.
Manas-Please continue with existing funds. I have not mentioned because they may be not under my criteria. But you may continue your investments. No harm and all are good funds.
Hello Sir
First of all its a nice platform you have created which helps in understanding various financial products. Best of Luck.
I have been Investing over a year in MF now, so far the funds I am investing are mentioned below::
Axis LT Equity Fund(G) —> 5000 p/m
ICICI Pru Focused BlueChip Eq Fund-Reg(G) —> 5000 p/m
ICICI Pru Top 100 Fund-Reg(G) —> 2000 p/m
Mirae Asset India Opportunities Fund-Reg(G)—> 3000 P/m
Please let me know should i continue with this portfolio or there is a scope to better it and what do you suggest.
Amit-Before that check the portfolio overlapping. I know you might have selected these funds based on ratings 🙂 But have you checked it’s long term performance?
Sir,
I need your suggetion to investing mutual funds as aim new to this.
I want to invest 5000 pm in MF through sip. For 10years. I already investing 150000 in ppf.can you please suggest where to invest it for good returns after 10 years.
Thanks in advance,
SAI.
Sai-Choose one large cap and another small and mid cap from above list.
Sir
I am working executive. My current saving total about 5 Crore. About 1.7 crore in Mutual fund invested visa SIP. Actually invested total 85 lac and it has become 1.7 by this time. I am willing increase my SIP in different AMC to a level of 3.3 lac per month. So that I can invest total 2 Crore by next 5 years. Then I will stop SIP and wait for next 5 years for my invested money to grow. For that I will be selecting two funds with Large and mid cap, Two funds with Mid and Small cap and two funds – balanced funds. My preference for AMC is HDFC, ICICI, Birala and Frankling. please advise me for the following.
1) Any major wrong thing in this approach ?
2) Is it appropriate to invest within next 5 years. Because if this 5 years is a pick period ,then we have to loose heavily
3) balanced funds are required for this duration ?
regards
lal
Lal-You already have investments in equity mutual funds. So if they are on right track then why new funds for this investment? Also two funds from each category is not necessary. To me maximum 2-3 funds are enough. Balanced funds may cushion you when market dropping. So let it be. But select a fund from large cap, small and mid cap and balanced fund is enough.
hi Basavaraj,
Very much thank you for this valuable post.Learnt a lot from this.
I am 45 years old and new to MF/I am planning to put some money in MF for next 9-10 yrs.
I have sufficient FD and reality investment so I can take risk on equity MF.
I am targeting to go for the following MF through SIP.Please suggest should I need any alteration.
Tata Balanced fund -5000/month
ICICI Prudential Focused Bluechip Equity Fund – Regular Plan-5000/month
Quantum Long Term Equity Fund- 5000/month
HDFC Mid-Cap Opportunities Fund-2500/month
Franklin India Smaller Companies Fund-2500/month
Thanks in advance.
Koushik Das
What about investing directly in stock based on selected mutual fund stock and tracking the same as per fund folio ? Do you think , it will work , Example we take HDFC top 200 and invest directly in the stocks they have invested.
sir
i wanna thank & appreciate for ur efforts & sharing your knowledge. it really helps lay men like us to read indepth review & take a call. am 39 years old & have invested in icici pru focussed bluechip & reliance tax saver fund. i have seen you have not recommended or mentioned reliance tax saver. so wanted to know your opinion/review on it. did i make a right choice by investing in it. its been 7 months in these two funds with a sip of 2500 each. also would please tell me should i go for another tax saver fund . if yes then what is the difference between icici right & icici pru tax. please suggest. looking foward.
Thanks
Mahender
sir would you please advice..waiting
Dear Sir,
I have started investing in Mutual Funds from this month. As you suggested, I have invested in the below 2 funds.
Franklin India Bluechip Fund (G) – 2000Rs
ICICI Pru Focussed Bluechip Fund (G) – 2000Rs.
Im planning to continue this as SIP with 1000Rs each in the following months upto 5 years. Can you please let me know how long shoud I wait for these funds to grow and what parameters I need to check if at all I need to shift to other funds? I’m new to Mutual Fund and request you to kindly help.
Thanks,
Guru Prasad Pandurengan.
Guru-Why two funds? Invest in one fund and that is enough. Equity investment should be minimum for around 5+ years. How to check the performance is a lengthy topic. Hopefully I may come up with a post on the same.
Thank you, Sir. I have invested through FundsIndia website. Let me check with them for the options of going with one fund. Kindly advice.
Thanks,
Guru Prasad Pandurengan.
Sir, I am 43 yrs old with income of Rs.5lacs per annum. Only last year i have started investing in sip of Rs.3000 in Idfc premier equity fund. I wish to invest Rs.5000 more in sip from 2015. Which plans would u suggest for me? Thanks for your advice in advance.
Wish u a very happy new year 2015.
Gopal-Select one large cap from above list.
baveshji! i am very new invester in mutual fund . I need ur guidance i recently invested on pnb met life smart platinum for five years for my two kids each 99000 a year .How do i proceed for myself i am aged 47 years earn couple of lakhs monthly.Should i go for sbi dynamic fund. or some large cap u suggest please .
Yuv-First let me know how you chosen MetLife plan? Do you thought it as mutual fund?
yes! agent told me this. I badly need your guidance for investment.Some tax saver and make white money!
1. Reliance Equity opportunities and Premier equity are not in the category of ” small & midcap scheme” as they are muliticap and do not have mandate to invest in any cap.
2. One can argue against recommending of Franklin Blue chip as there are better schemes like BSL frontline.
Paranjape-Regarding category I refereed the VR. My suggestions are listed above. You may come out with so many permutation and combination and select a fund. So I am not against your choice. I have chosen these funds based on the criteria I shared above.
Already invested sufficient money in bank fixed deposits. Also invested in mutual funds for 4 to 5 years. Now mutual fund return is very good. my questions are as follow.
What strategy we should keep to book profit from mutual fund ? specifically I don’t need this money in near future for next 10 years.
What about investing in debt funds ? (i have sufficient investment in fixed deposits). Any specific reason why we should invest in debt funds over and above fixed deposits.
Ram-You need to come out of equity only when your goal is around 2-3 years away, but not like when market is high. Because we don’t know today’s high may again be low after few days. Debt Funds good only in case your time horizon is more than 3 years as due to indexation benefit they may give you better return over FDs. But do remember that Debt Funds also bears risk.
Dear Sir,
I am new to the mutual fund investment & plan to start investing from January 2015. My overall budge is around 2000 Rs. per month & planning to invest in SIP basis. I want to invest for 10 years & expected returns will around 15%. So please suggest me good SIP funds.
Thanks & Regards,
Rajesh
Rajesh-You can select one large cap fund from above list and invest.
Thank You very much for your guidance.
Sir,
I have started invsetng in mutual funds from Dec 2014 in FranqlinIndiaBluechip( G) 1K/month(minmum 10 years).
Can I add below to my portfolio?
Reliance Equity Opp Fund (G) 1K/month ((minimum 10 years))
HDFC Balance Fund(G) 1K/Month (minimum 5 years)
ICICI Pru Tax Plan(G) 25K/year (for tax saving minimum 5 years)
Thanks,
Brahmananda reddy
Brahamanda-You can add HDFC and ICICI.
Respected Basavaraj Sir,
Many Thanks for your efforts to empower us with Investment Ideas.
Sir, I would like to get your opinion on my portfolio:
HDFC Top 200: 15000/-PM
HDFC Equity : 15000/PM
My time horizone is 12+ years. These funds i salected for my kids education. I also would like to invest another 10000/- PM, after seeing your list i zeroed to ICICI Balanced fund, but its asset value and return are less than HDFC Balanced fund. If I salect HDFC Balanced fund my all invetment goes to single AMC which probably not good idea.
shall i go for ICICI Balanced fund alone for all amount or I split equally it with HDFC Balanced fund. My time horizone for this fund will be in between 5-7 years.
Your valuable suggession is appreaciated.
With Regards
Ashish
Ashish-In your current investment there is an overlap of around 72%. It means even though you are investing in two different funds and category, but underlying investment overlap 72%. So no diversification. Instead I suggest you to retain HDFC Top 200 and select one small and mid cap from above list. Balanced fund for more than 12+ years in need? Think and decide.
can i put some of my emergency funding in elss.can i redeem this whenever i require.i think if want to invest in elss one time investment would be better.
Amar-Emergency fund in Equity and that too a lock in product called ELSS? Whether it is one time or SIP, emergency fund always must be in safest instrument.
Is it a good option to invest in elss.my tax limit for 80 c is completed from other investments.i have heard that the returns from elss is 17 % from past 5 yrs.is it true.is it a best investment option for short term.
Amar-I already replied to your query. No equity for short term.
sir ,
if i can go for long term investment is it a good option to invest in elss.
Amar-Drawback of ELSS is, even though fund not performing well you have to continue up to lock in over. So choose a best ELSS and invest. Once lock in over either continue in same fund or switch to other funds. But must be long term view.
Hi Sir
Currently I am investing in the following SIPs 5000INR per month
UTI Opportunities Fund (G) – INR 1000
Birla Sun Life Frontline Equity Fund (G) – INR 1000
Reliance equity opportunityes fund (G) – INR 1000
ICICI Prudential Focused Bluechip Equity Fund (G) – INR 1000
Kotak 50 (G) – INR 1000
I want to increase this amount INR 10000 per month. I want to keep that for a long term for my kids education.
Could you please suggest whether to increase the investment in the above same funds or to invest in other funds.
Thanks
Nagesh
Nagesh-Why so many large cap funds??
I must Appreciate your effort,
I am in need of someone like you to help me to plan my financial, hence can i have your number or personal mail id show that i can contact you.
Hoping the best from your side
Regards
Akash-You can drop the mail at basavaraj@basunivesh.com
Hi Basu,
First of all, would like to appreciate the efforts you are taking to create awareness on mutual funds and investments to public.
I am planning to investment in mutual funds which is completely new to me and i am looking for long term of more than 10-12 years kind . My monthly investment capacity on mutual funds would be around 12-15k and dont mind taking risk.
After going through the articles and performance i zeroed on following funds, can u please suggest whether it is worth to go with or if some thing better is there can u please suggest.
ICICI Pro focussed blue chip fund — 5000
HDFC Mid cap opportunities Fund — 5000
ICICI Pru balanced fund — 2500
Birla sunlife dynamic bond fund — 2500.
Kindly suggest…
Kumar
Kumar-Choose one large cap, one small and mid cap and one balanced fund (if possible) from your list. Three funds are enough.
Hi Basu Sir,
My current SIP Portfolio is as under –
1. SBI magnum Global Fund – 1k
2. SBI emerging business fund – 1k
3. SBI Blue chip fund – 1k
4. SBI pharma fund – 1k
5. SBI FMCG Fund – 500rs
6. SBI Infrastructure Fund – 500rs
7. ICICI Dynamic plan – 1k
8. HDFC midcap opportunities fund – 1k
I am new to this, Should i continue with this portfolio? r i change my portfolio?
From last 6 months i am opting the above mutual funds.
Thanks
Subba-I am not fan of SBI and they are not at good as you selected sector funds. Second funds are more risky to diversified. So better to come out of those funds. But I am comfortable with rest two ICICI and HDFC.
I started SIPs for 13k/month in below MFs for long term Goals for 7-10 years.
1. ICICI Pru focussed bluechip (Large Cap) — Rs. 5000/Month
2. ICICI Pru value discovery (Mid Cap) — Rs. 4000/Month
3. Reliance equity Opp (Flexi Cap Diversified) – Rs. 4000/Month
I am planning to increase 10% every year in SIPs.
Please provide your inputs like Are above MFs are good fund for long term investment and any changes require in existing SIPs.
Bhavin-You can continue the same.
Hi Basu,
I’ve invested in “UTI Equity Direct – Growth”. However, I didn’t find the expense ratio for direct plan on VR.
Any idea where would I get this and your valuable opinion on the Fund house and this fund in particular please?
Thanks,
-Vaibhav
Vaibhav-If it is not available with VR then you can directly ask the mutual fund company. They will provide that information.
Thanks Basu. I’ll have to speak to their CS team as I couldn’t find it on UTIMF website too.
Can you please provide your valuable views on UTI Equity Direct – Growth fund?
Vaibhav-It is good fund. You can continue.
Hi,
I am planning to invest in the following funds:
UTI mid-cap – INR 2,500 /- (3 years)
HDFC balanced fund – INR 1,500/- (3 years)
Is this ideal or are there better options? I had ICICI balanced fund in mind, but not very sure. Also, can you please let me know good retirement plan option in mutual funds?
Thank you,
Sabitha
Sab-How you opted these two funds? As of now there no such BEST retirement plan. You need to create your own corpus.
Hi Basu,
Currently, I am holding the below funds since March – 2014.
1. HDFC Mid-Cap Opportunities Fund(G) – 1000k (SIP)
2. ICICI Pru Focused BlueChip Eq Fund-Reg(G) – 2000k (SIP)
3. UTI Opportunities Fund(G) – 1000k (SIP)
4. Reliance Reg Savings Fund-Equity Plan(G) – 1000k (SIP)
Please let me know, whether it’s fine or switch to any other funds which mentioned (2015) by you.
Thanks.
Regards
Ram
Ram-Currently UTI is under large cap. So you have two large cap funds now. If possible retain one (either ICICI or UTI).
Thanks Basu.
Could I change ICICI Prudential Dynamic Plan(G) instead of UTI Opportunities Fund (G)? Is it possible in Funds India portal?
Ram-If you intend to change then do so. Yes you can do it in FundsIndia.
Hi Basu,
My current SIP Portfolio is as under –
Birla SL Top 1oo Fund (G) – 2k
Reliance Equity Tax Saver (G) -2k
Canara Robeco Emerging Equity (G) – 1k
1. Should i continue with this portfolio?
2. I’m working in pvt sector so i don’t have pf option. Can u suggest best retirement plan?
Thanks
Shreyas-You can continue. But don’t forget to review once in a year.
Thanks Basu.
I hope u forgot to answer my second question.
Shreyas-Can you repeat once again. May be I missed due to long pending comment replies due to my holidays 🙂
Hi,
My second question was as I’m working in pvt sector so i don’t have pf option. Can u suggest best retirement plan?
Shreyas-Sadly none…better to create your own retirement corpus by investing in equity mutual funds (if time horizon is more).
51 year old and working in middle east. New to MF and having around 1 Cr in FD . Planning to invest in MF instead of FD for a period of 5 years.
Please advise some worthy funds for MF.
Sreenath-You can invest in short-term debt funds and arbitrage funds, but no EQUITY.
Hi Basavaraj
Need Help in calculating the SD of mutul Funds can you please help with the values Input and Formula , It will be Realy Great Help .
Nitesh-What is your doubt? I don’t think it is required to do calculation at your end as all information either available at AMC end or with few sites.
Basu,
Thanks for the list. I would like to know why ICICI pru value Discovery did not make it to the list? Ideally, which category of funds does it get compared with? Thanks!
Sri-You can add, I don’t have any issue. But I slightly stayed away due to it’s SD.
Hello Basu,
Good to see list for 2015 🙂
Is that Typo error in the above everywhere you mentioned 2014. Anyways no issues.
My question is actaully i am planning to invest on Franklin Templetion Tax shield(G)-ELSS category.
But what difference it makes if i opt in person and through advisor. What do you suggest?
Chandra-So Sorry !!! I corrected the mistake 🙂
Hi Sir,
I am investing Rs.1000/- per month in HDFC Top 200 fund as SIP for the last 2 years, is it wise to invest in the same fund for a horizon of 20 years as the NAV is very high.Should I come out of it? Also I want to invest in another 2 SIP’s Rs.2000 per month time period of 15 to 20 years so please suggest some good funds.
Regards
Suraj
Suraj-Continue in HDFC Fund and select one more fund from mid and small fund category. These two are enough.
Good, Sir what about debt – short term as well as medium to long term – how about your recommendations for such mutual funds to invest now?
Parikh-Let me come out of Debt category separately.
sir please help me to select the fund i want to invest 2k per month and i have long term perspective. And my current age is 22 so on that basis which fund i should select.
Alpesh-Choose one large cap and another small and mid cap fund from above list.
HI,
im investing from past one year in below funds.
i want to know are there any overlapping in between these funds icici value discovery fund and and icici focused bluechip fund .
do i need to change my portolio and my investment during is 7 – 10 years.
Ramu-Let me give you work instead of ready made answer. Go to valueresearchonline, search above funds, then go for portfolio tab, there you will find the underlying sector or stocks. You will get fair idea and if possible share with me of what you learnt.
Hi Basu,
I want to invest 2000 per month on mutual funds. I am new into this kind of investment. Could you please suggest me the options for investment in mutual fund.
Thanks
Swanjan kumar
Swanjan-One large cap and another small and mid cap from above list is suffice.
hi sir,
im new to these investments.i want to invest 2k per month for 15-20 yrs.which type of funds should i select,large or mid or small,or else shall i go for balanced funds.pls help me in this regard.these funds should help me after my retirement or my childrens education.
i will be able to take medium risk as im 30 yrs now.
Amar-One large cap and another small and midcap.
Hello
My Current Investment is as below
——————————————–
UTI Opportunity – 2k
ICICI Pru Value Discovery – 2k
ICICI Balanced -2k
Now I am planning to add few new investment as below
ICICI Pru Focused Bluechip -2k
ICICI Pru Dynamic -2k
HDFC Mid-Cap opportunity -2k
What should I do , Is it ok ?? or need improvement please guide.
Sujeect-Do you feel you need another three funds for your fresh investment? Also have you checked about the portfolio overlap in existing funds?
Hi,
You have mentioned that you did not select HDFC Top 200 because of standard deviation. Even though I did a quick search on that concept, I’d appreciate if you can elaborate this point.
Also, if my investment horizon is 20+ years (I’m 23 years old), which would be better: Franklin Bluechip or Franklin Prima Plus? Thanks.
Avin-Please check the SD of all three funds (Franklin, ICICI and HDFC), then decide yourself. Both are good.
Sir,
Among mid cap funds, Franklin India Smaller Cos. seems to have better alpha, low beta and std. deviation and good returns . What’s your take on it for long term like 20 years?
Naveen-If you are comfortable with that fund then you can go ahead. I selected these funds based on my comfort and research.
Sir, I am currently SIPing in UTI Opportuntieis for the past 2 years. Considering UTI Equity’s performance, i have a feeling to move it to UTI Equity from UTI Opp Fund. Is it advisable or not? I am alreadying SIPPING in all the funds mentioned by you for 2015 except Franklin India Bluechip. Over and above these funds, i also SIPing in ICICI Pru Discovery Fund. Please advice
thanks
JAN
Ayyappan-Do you feel it is mandatory to have all listed funds? No…as I said above, maximum 3-4 funds are enough.
Hi …Thanks for your advice…Kindly check my preference and pls guide me in selecting one out of 2 for SIP in below mentioned funds
1. ICICI pru Blue Chip Equity or UTI EQuity – 2K
2. HDFC MidCap or UTI midcap-1K
3. HDFC balanced or ICICI balanced-2k
4. ICICI child care-Study or HDFC multple yield -(Hybrid Conservative)-1K
one time investment —-Pharma Sector —Reliance or SBI Pharma —–10K, debt long term-10k
pls help in selecting the above funds and tell me my planning is ok or not
Umashankar-ICICI Pru Bluechip and HDFC Balanced. I am not a big fan of any sector specific investments.
Thanks for the help…..but what your’s take on Midcap ?
Umashankar-Two funds are enough and automatically take care of your debt portion too.
Hello Sir,
Thanks for the list. I am waiting for the list. 🙂
As UTI Opportunties[G] move to Large cap. In my portfolio I had already a large cap fund ICICI Pru Focussed Bluechip Equity [G]
What can we do in this situation?
Thanks & Regards,
-Anshu
Anshu-I expected this question from someone 🙂 No need to worry. Wait for another year or so. Because that fund is also doing good.
HI
regarding overlapping ,
what is the criteria % to avoid overlapping ?
What should be Approximately investment value in excel tool ? Shall it be monthly SIP Amount which I am investing.
Currerntly I Am investing in Birla Sun life Top 100 and Icici pru Value Discovery and was comparing overlapping with ICICI Focussed Blue chip Fund.
What do you Suggest please .
Thanks in advance
Kuldeep-Please go through my earlier post “How to compare Mutual Fund portfolio overlap?“.
thanks , Basu ..it was useful