Recently few readers of the blog started to inquire about Top 10 Best SIP Mutual Funds to invest in India in 2016. I just ignored the suggestion as 2016 was more than 3-4 months away. Now I felt it was necessary to review the old recommendations and suggest the new funds for 2016.
Note-
- Refer our latest post related to Top 10 Best SIP Mutual Funds to invest in India in 2017 at “Top 10 Best SIP Mutual Funds to invest in India in 2017“.
- We disabled commenting feature for this particular post. If you have any doubts based on this post, you can raise the same in our blog forum of BasuNivesh Forum.
Before proceeding further, let us first discuss on the last year’s fund returns and how they performed.
Let us go forward and discuss on Top 10 Best SIP Mutual Funds to invest in India in 2016.
How I am selecting the funds?
This time, I have been using more advanced criteria to arrive at my fund selection. I know, many just follow the return aspect of funds to arrive at the decision to fund. But in my case, I first screened the top 15 funds in each category based on their returns to benchmark since inception. The funds who consistently beaten the benchmark are listed in that 15. Once I have the list in my hand, then I selected the funds based on Risk-Return Analyzer. It is eye catching to select the funds which will give you good returns. However, at what cost it is giving you a better return? To what extent it protects my investment during a downturn is what differentiate from good fund to bad fund.
Again, I am not saying that these 1o funds alone be considered as “Top 10 Best SIP Mutual Funds to invest in India in 2016”. There may be fewer funds, which are good to compete with these funds. However, I may be biased towards few Mutual Fund Companies (purely on their size and how long they are in MF business in India). Below are the metrics I used to arrive at finally selecting the funds.
If the fund cleared all these tests and given me around a minimum of 80% score since inception, will be added to my list.
- Beta-Volatility measure and tell how much the fund changes for a given change in the Index. Lower the beta, lower the volatility. Hence, your fund must have lower beta.
- Standard deviation-It tells us how for a given set of returns, how much do fund returns deviate from the average. Lower the standard deviation, lower the volatility. Hence, your fund must have lower beta.
- Alpha-It is the risk-adjusted measure. By taking risks, how much the fund manager generated the return over the benchmark. Higher the alpha, higher the outperformance of the fund.
- Sharpe Ratio-It is the risk-adjusted measure. Higher the Sharpe ratio, better is the performance.
- Sortino Ratio-It is the risk-adjusted measure. Higher the Sortino ratio, better is the performance.
- Treynor Ratio-It is also be known as reward ratio. Higher the Treynor ratio, better is the performance.
- Information Ratio-This is calculated by average excess return obtained compared to a benchmark and divides it by the standard deviation of excess returns. Higher the information ratio, higher the consistency in beating benchmark.
- Omega Ratio- It is a risk-return performance measure of an investment asset.
- Downside deviation-This is also be called as BAD RISK.
- Upside potential-This is exactly the opposite of Downside deviation.
- R-squared- It is a measure of how correlated the fund’s NAV movement is with its index.
- SIP Returns-For how many times the fund’s returns are above the index when we invest in SIP.
- Lump Sum Returns-For how many times the fund’s returns are above the index when we invest in a lump sum.
Why I selected two funds in each category?
I think one fund from each category is enough to create a best equity portfolio (even a debt portfolio by using equity-oriented balanced funds). Hence, I stick to the fund selection of maximum two in each category.
Owning many funds is not a great diversification strategy and at the same time, few feel to diversify their investment among AMCs. That, I think not at all a good idea.
Best two Large Cap Funds to Invest in India in 2016
In this category, I stuck to my last year’s funds. No change in this. Because both funds are performing well. I found Birla Sunlife Frontline Equity Fund best instead of ICICI Bluechip. However, I still stick to ICICI than Birla.
You notice that Risk-Return score for both funds is above 80%.
Best two Large and Mid Cap Funds to Invest in India in 2016
This year I added ICICI Pru Discovery Fund and removed ICICI Pru Dynamic Fund. The reason is below chart. Here Fund A represents ICICI Value Discovery and Fund B ICICI Pru Dynamic Fund. ICICI Pru Discovery outperformed the ICICI Pru Dynamic Fund many a time. Hence, switching, but within the same fund house.
Best two Mid and Small Cap Funds to Invest in India in 2016
In this category, I retained HDFC Mid-Cap Opportunities Fund and switched from earlier Reliance Equity Opp Fund to Franklin India Prima Fund. You can also have in mind about the funds like UTI or SBI Magnum Mid Cap Funds.
Best two Equity Oriented Balanced Funds to Invest in India in 2016
I retained HDFC Balanced Fund and ICICI Balanced Fund. I suggest to think of Tata Balanced Fund too.
Best two Tax Saving Mutual Funds (ELSS) to Invest in India in 2015
I retained both Franklin India Tax Shield and ICICI Pru Tax Plan.
I noticed that ICICI Fund is a little bit under performing this year. But let us give some time to it. If it continues its low performance, then we can think of switching.
Read my latest post on Top 5 ELSS or Tax Saving Mutual Funds to invest in 2016
Note-We disabled commenting feature for this particular post. If you have any doubts based on this post, you can raise the same in our blog forum of BasuNivesh Forum.
1,007 Responses
Hi Srikanth,
Currently i am investing Rs 12,500 monthly in the below funds since 2013 and i am getting good returns overall 16% .
1. ICICI pru focussed Blue chip fund -direct [ Rs 5000 ]
2.Reliance Equity opportunities fund -direct [ Rs 5000 ]
3. UTI Opportunities -direct [ Rs 2500 ]
Now I want to invest another 2.5K /month after salary increment , I am a long term investor(over 20 yrs) and have decided to add 1 more fund.
4) Birla Sunlife Frontline Equity Fund 2.5k/month
OR
5) ICICI pru value discovery fund 2.5k/month
Please suggest if these picks are fine and also suggest if I need to make any changes in the existing portfolio.
Nishanta-ICICI Bluechip is large cap fund and UTI is also currently in large cap then why one more large cap of Birla? You retain ICICI Bluechip, invest in ICICI Discovery and try to come out of Reliance. Instead, go for HDFC Midcap or Franklin Prima. Where is your debt portfolio?
Hi Basavaraj ,
I am investing sukanya samriddhi [ 5k/month ] & LIC Jeevan Anand [ 5k/month ] into debt portfolios .
I am planning to modify my portfolio , please suggest if its fine .
1. ICICI pru focussed Blue chip fund -direct [ Rs 5000 ]
2. Reliance Equity opportunities fund -direct [ Rs 1500 ]
3. UTI Opportunities -direct [ Rs 2500 ]
4. ICICI pru value discovery fund [ Rs 5000 ]
Nishanta-One large cap is fine like ICICI and along with that Reliance and ICICI Discovery fund.
Sir, As per your advice i have taken icici long term equity fund(tax saving) in 2014 with sip of 4000. Is it wise to continue the sip as the fund is under currently underperforming or do u suggest any other ElSS fund for the the same SIP
Ajit-What prompted you to believe that the fund is underperforming?
Dear basu sir,
hi sir , my name syed i am 30 year old and my son 1 year old
i want to invest money in SIP with 2 fund policy for 20 years long term yearly 12 thousand and monthly 1k .i have 2.5 lack in my hand please suggest how to invest and where which fund / policy to choose …
how to manage 2.5 lack .is STP method good ?
Syed-You can start with the large cap mentioned above.
Hi Basu,
First of all I am sorry for asking you off topic question , I couldnt able to register in forum so couldnt ask question over there, So I am asking you below.
In Below mentioned forum link, you mentioned “not to go for any product which claims to special in retirement”. Any specific reason for the same. Because I am investing SIP 4k/month in UTI retirement Benifit pension plan for past 2 years & as Franklin templeton pension fund is performing well comparitively so I am thinking to divide the investment equally now .
These SIP investments I am planning to continue for more than 25years.
http://www.basunivesh.com/forum/question/where-to-invest-for-retirement/
Any suggestion from your side on this investment. My intention is for retirement corpus purpose.
My Equity:debt investment ratio is 80:20 as of today (I am 30years old) & the above mentioned investment which i am doing is for retirement corpus which is around 18% of my equity investment.
Please provide your valuable suggestion.
Just repeating the queries below again.
1) Why not to go for any product which claims to special in retirement?
2) To invest for a longer period of 25years, how to shortlist or select the MFs.
Kiran-Can you please share your difficulty of nor registering with Forum to my mail tonhokrani@gmail.com. I will reply to your question as below.
1) Illiquid, no control over investment and taxation at withdrawal stage.
2) I already mentioned the procedure above.
Hi Basu,
I have sent you the mail over the issue i am facing while registering the forum.
Regarding the query , can you please elaborate in few sentences.
Below is my understanding , please correct me if needed.
Illiquid ? – a concern of exit load or lack of investors
no control over investment? -> I believe MF AMC should take care of this issue…
Taxation ????
Kiran-Yes, there are certain issues with forum. Please wait for a day or two. Illiquid in the sense, you are not able to come out easily. Yes, MF have mandate to invest. So it is based on that. Hence, control over your portfolio. Taxation is different ball game for ULIPs and equity funds. Frankly speaking, equity mutual funds are tax efficient.
Hi Basu,
Do u suggest me to exit from the UTI Retirement benifit pension fund plan ( or any other retirement benifit MFs) asap??? Because as i mentioned earlier it is around 18% of my investments.
Kiran-Better to do that. Because such retirement products are not so liquid in nature than the typical well diversified funds.
Thanks.
Dear Sir,
Below are my current portfolio:
1.Franklin India Blue chip (g)-1000
2.Franklin India Tax Shield-1000
3.HDFC Prudence-1000
4.Franklin India Prima Plus-1000
5.PPF-4000/Month
Along with above I am planning to start a small-mid cap fund with a monthly SIP of Rs1000. Kindly suggest one.
Also suggest if the above portfolio is ok or need changes.
Regards,
Praveen
Praveen-Without knowing your time horizon, it is hard for me to guide.
Sir,
Except tax shield all are for more than 15 years.
I want to add Small -Mid cap too for 15 years or more.
Praveen-That small and mid cap fund is listed above.
Thanks.
1.Should I choose Franklin Prima Fund for small mid cap as I am already having plan from the same fund house?
2.Should I continue with HDFC Prudence or change to HDFC Balanced or some other fund?
Regards,
Praveen
Praveen-1) What matters you more, a fund or fund house?
2) You can switch to HDFC Balanced or Tata balanced.
Hello Basavaraj,
I am completely new to this mutual fund domain. However i got a vague knowledge about what SIP is.. Now i did a declaration in my company stating 12,000INR p.a. as mutual fund and 12,000p.a. as ELSS.. Don’t really understand the difference yet.
1. Now, I would like to have a SIP done for this financial year for 3 years which gives me a decent return. Could you suggest me one? I guess Balanced MF is good for me, still seek your advice.
2. How do i start with ELSS investment? Any suggestion?
3. Among the above two i.e. ELSS and MF , which one has tax exemption under 80c to the maximum limit of 1.5 Lakhs.
Your clarification for the above queries will be highly appreciated and will enlighten me in this area for future.
Thanks..
Ajit-1) No equity investments if your tenure is just 3 years.
2) It is exactly like any other investments in mutual funds.
3) All ELSS funds ONLY will comes under benefit for Sec.80C.
Hi Basu,
Without Knowledge of Mutual funds, but my goal is to invest long term so i am paying 1000/ each in the below mentioned SIP`s
with your valuable suggestions.
1) HDFC mid Cap -direct growth
2) HDFC Balanced fund -direct
3) ICICI pru focussed Blue chip fund -direct
Here my question is .
I am paying SIP amount in “DIRECT” MODE So Shall i pay money through agent to get some +Ve returns?
Please suggest me.
Thank you in advance.
Karthik-What guarantee that your agent will provide you +ve returns than direct funds?
Thanks Basu,
Shall I continue the same direct funds?
Karthik-Yes.
Hi Basu,
I am paying 1000/ each in the below mentioned SIP`s for long term(more than 10 years)
1) HDFC mid Cap -direct growth
2) HDFC Balanced fund -direct
3) ICICI pru focussed Blue chip fund -direct
Please suggest me good fund(Kindly specify name in HDFC or ICICI) for short term goal <=5 years.
Thank you in advance.
Karthik-For short term, I will not suggest any equity oriented funds.
Thanks Basu for reply.
Where can I invest money for short term goal(around 5 years), Please suggest
Karthik-You can use short term or ultra short term debt funds.
Thank you Basu,
Can you please tell me any specific short term or ultra short term debt funds in HDFC or ICICI
Thank you Basu,
i want to invest 1000/- per month in each HDFC and ICICI for short term goal <5 years.
Can you please tell me any specific short term or ultra short term debt funds names in HDFC and ICICI?
Karthik-Why only HDFC or ICICI?
Thanks Basu,
Actually i am investing 1000/- each in HDFC mid cap and HDFC Balanced fund.
and 1000/- in ICICI pru focussed blue chip…
SO i want to invest in HDFC or ICICI.. or else where can i invest , plz suggest.
Karthik-There three funds are enough for your investment. Even for your fresh investments too, you can consider these three funds ONLY.
Thanks Basu for your suggestion.
What about short term goals?
Karthik-Why only HDFC or ICICI?
Sir, my age is 35 & i have started following investments with time period of 15-20 years+
HDFC Top 200- 3500
Birla MNC fund- 3000
ICICI Pru Focused Blue Chip- 3000
ICICI Pru Value Discovery Fund- 3000
Pls advice on fund selection. I am also planning to invest 3000 in TATA Balance fund.
Nagra-Where is your debt portfolio?
Basu, I have LIC Plan (premium- 72k /per annum & HDFC pension plan (premium- 35k/per annum) & also EPF along with mentioned sip investments. Not sure whether i am on right track.. pls advice.
Shall i add TATA balance fund in my portfolio.
Also advice on HDFC top 200, shall i continue as performance is not good in last couple of years.
Nagra-Whether your LIC plan and HDFC pension plan easy to liquidate? For you, ICICI Bluechip, Discovery Fund and Tata balanced funds are enough.
LIC policy have 10 year lock-in period(currently 7th year) & HDFC pension plan have no liquidate option till completion of 20 year.
Idea of having HDFC top 20 & birla sun life for 15 year for daughter education & value discovery, focused bluechip for retirement. Planning to invest 4000 for 20 years for daughter marriage. Kindly advice.
Basu Ji,
I again seek your advise, this time on SIP.
I want to invest 26,500/- per month with the following future goals:
A) 1 Cr after 15 years
B) 5 Cr for retirement (after 30 years)
I have selected the following investment plan:
– GOAL ‘A’ monthly investment (15 yrs)
ICICI Pru Focused Bluechip Fund (G) : 3,675/-
HDFC Mid Cap Opp Fund (G) : 8,575/-
– GOAL ‘B’ monthly investment (30 yrs)
ICICI Pru Focused Bluechip Fund (G) : 4,725/-
HDFC Mid Cap Opp Fund (G) : 2,025/-
Total = 19,000/-.
Balance (7,500) I want to invest in Debt Fund.
Can you please advice:
1.) Is my Equity fund selection correct?
2.) Which debt Fund should I invest in?
3.) Will my returns on above (equity and debt) be taxable?
Regards,
Praveen
Praveen-Perfect. Go ahead. You can consider PPF, the best debt product. No, returns from equity for long term will be tax free. Hence, they not taxed.
Hello Sir,
My aim is to achieve the following.
1. 10 Lacs after 7 years
2. 10 Lacs after 10 years
3. 20 lacs after 15 years
I have started one SIP of 5K per month for Franklin India Prime plus growth. Please suggest ho many funds I shoud take more and what should be SIP and type of funds.
Khan-Each goal must be treated separate for asset allocation. Funds may be same. But equity to debt must vary as per goal tenure. If you already selected Franklin fund, then include one large cap and one small and mid cap fund from above list.
Sir, thanks for your reply.
Please suggest if the below combination is OK.
Franklin prima plus growth – 5k
SBI Magnum equity direct- 3500
ICICI prudential term plan growth-1500
Mirae emerging blue chip- 3500
Tata dynamic bond -regular plan-1500
Thanks,
Khan-ICICI Pru term plan GROWTH? Also, for debt portfolio, don’t use dynamic bond funds. Instead, restrict yourself to short-term or ultra short term funds.
Hi Basavaraj Tonagatti
I came across your blog and must say its of great help. I am presently 24, earning 86,000 per month. This is my first job. Could you help me how do I go about my investments? I have an educational loan of 15lakhs. I am looking to invest in PPF and few SIPs.
Shrutika-Don’t jump into investment. This is your first job. Try to create fundamentals first. Buy online term insurance for around 15-20 times of your yearly income, buy health insurance (for you and family even if employer provide you), buy an accidental insurance and create an emergency fund of at least 6-12 months of your committed expenses. Once, these are in place, then go for long term sure goals like retirement or your marriage plans. Along with that whatever surplus you have try to pre-pay the educational loan at the earliest.
First of all I would like to take the opportunity to thanks you to educate the investors.
I would like to invest around 30to 40k in SIP further. I hv already invested following
SIP
– AXIS Long Term Equity funds – 20k
– ICICI Prod Value Discovery funds (G) – 2k
– Kotak Select Focus funds (G) – 2k
Lumpsum
– Axis Hybrid Funds – 400k
– Axis Equity Saver funds (G) – 200k
PPF / RD – 20k p.m.
Kindly suggest good SIP. Also suggest whether the above funds are ok or I should discontinue. My time horizon is 12 to 15 years and need to build a corpus of around 5 crores in 15 years.
Kindly also advise Is there any options available to switch over from one MF to another. If yes, what to do for the same.
Regards
Bhatt
Bhatt-You had two multi cap funds (ICICI and Kotak). Retain one. Include one large cap fund and also a small and mid cap fund. Also try to make sure that 30:70 debt:equity ratio. For debt you can use PPF. To switch, you have to redeem from existing fund and invest lump and register new SIP in new fund.
So only tax savings funds are eligible as for 80 C? or I can buy any of the funds in SIP and can claim for tax savings
Lokesh-No, only tax saving funds or ELSS funds are eligible for tax saving but not all funds.
Hi Sir,
My monthly current running SIPs in below equity fund as follows…
Franklin India smaller cos. fund ?1000/- regular growth, goal period >15years, for Kids education
Franklin India prima plus fund ?1000/- regular growth, goal period >22years, for retirement
Tata balance fund ?1000/- regular growth, goal period >20years, for Kids marriage.
I also invested in death fund of Birla SL MIP II wealth 25 ?1000/-regular growth, goal period 15years. Please suggest one good fund..
Abhishek-Your strategy is completely wrong. For each goal you must have debt:equity ratio properly. Again in this equity, you must include all market capital funds like large cap, small and mid cap or multi cap. But you selected one fund for one goal. It is not a right way to do.
For debt portion, what is better, ppf or short term debt fund? How much is the tax one pay for income on debt fund? Is it RD good for debt portion?
I am 30 year old Male working in a MNC in Delhi with monthly salary of 1 Lakh/month
I am married and 1 year daughter with no loans.
I want to invest INR 25 Lakh with moderate risk profile (around 15% return per annum)
I am looking for long term horizon (5-10 years)
I have this lumsum money please advice a investment strategy for me
I am considering two options
I park this money in liquid fund temporally and do SIP in Mutual funds.
I buy real estate and also take some loan as I have surplus of 50 thousand/ month
Please advice
Sameer-Some misconception about you are as below. Please give me your reply to proceed further.
1) 15% return is not moderate, but to me aggressive. I expect 10% return from my aggressive portfolio.
2) If your time horizon is 5 years, then don’t enter into equity. First specify the time limit.
3) If your investment is for long term, then why deposit into liquid fund?
Dear Basuji,
What is the difference between large-small cap fund and multi cap fund? And what is diversified fund? On many websites one fund is mentioned as diversified, on another multicap and on another large-small cap fund. It is very confusing when creating portfolio. Plz. clear.
Pratap-It is the underlying stocks market cap, based on that the fund named. Don’t confuse, visit AMC portals and verify them.
I am starting investment in MF for the first time and I have decided to invest 7000 per month following funds (for 5+ years. Please advise me if it’s good portfolio or not.
ICICI Prudential Focused Blue Chip Equity Fund – Growth – Rs. 2000
Mirae Asset Emerging BlueChip Fund – Regular Growth – Rs. 1500
Axis Long Term Equity Fund – Growth – Rs. 2000
Birla Sun Life Dynamic Bond Fund – Retail Plan – Growth – Rs. 1500
Thank you.
Satish-Define first the 5+ years.
Hi sir,
I have the following SIPs running currently:
Birla SL Frontline Equity – 5000
UTI Opportunities – 2000
ICICI Pru Dynamic – 3000
IDFC Premier Equity – 3000
ICICI Pru Value Discovery – 2000
Birla SL Dynamic Bond – 1500
Total Investment/month: 16500/-
Time Horizon : 20 years
I feel I have too many funds in my portfolio but am not able to decide on which ones to move out of and which to continue. Can you recommend changes please? Also should I just stop further SIPs in the funds I move out of or should I move the current accumulated corpus also?
Thanks
Princy-Three funds enough like large cap fund, small and mid cap and a multi cap fund. Where is your debt portfolio?
Thanks! So for equity, does the following look ok?
Birla SL Frontline Equity – 7000
ICICI Pru Value Discovery – 5000
IDFC Premier Equity – 3000
Debt: Birla SL Dynamic Bond was my debt part of the portfolio – since the time horizon was 20+ years, I thought 10% debt is enough. Please suggest changes if required in this.
Princy-Include 30% debt and rest in equity. I suggest short term debt fund rather than income funds.
Thanks a lot for the recommendation! Will modify equity debt ratio as suggested.
However, I see Birla SL Dynamic Bond listed as a short term debt fund here: http://www.moneycontrol.com/mutual-funds/nav/birla-sun-life-dynamic-bond-fund-retail-plan/MBS071
But I guess you are saying this is an income fund. I really do not understand the difference between all these. Which short term debt fund would you recommend, in place of this?
Also, what do you suggest for existing investments in funds I plan to stop SIPs in now (ICICI dynamic, UTI Opportunities)? Should I redeem those also and re-invest the amount in the selected 3 funds (Birla SL FE, ICICI Value Discovery, IDFC Premier Equity)?
Princy-Don’t refer these portals. Instead go for mutual fund company portal to know about the fund. I suggest funds like Franklin India low duration fund or HDFC Banking and PSU Debt fund. As I suggested, retain the one and redeem and invest in the existing funds.
Thanks a lot Basavaraj for taking the time to answer my queries! Appreciate the advice.
Dear Mr Basu,
I started my sip in januray 2016. I will invest at least 10 years from now.
1) franklin india prima plus fund – Rs1000
2) icici prudential focused bluechip equity retail growth fund- Rs 1000
3) kotak emerging equity scheme – Rs 1000
4) HDFC mid-cap opportunities fund-growth option- Rs 1000
5) BSL frontline equity-a – RS 1000
I want to invest rs 5000 more in sips. Should i invest in above old sips or choose another new 5 no’s funds?
i have lump sum rs 500000. please suggest some debt funds to invest for at least 5 years.
i have bank fd for 5 lakhs for 8.5 yr, KVP for 2.5 lakhs for 8.5 yr and ppf 1.50 lakhs/yr.
please reply soon.
Sujan-How you selected these funds? Why two funds within same category?
Hi Basavaraj,
Kindly help me to find suitable SIP for Rs. 10,000 to 20,000/- per month for Long Term Investment. I don’t have any SIP/mutual fund investment as of now. I have PPF ,PF ,RD account.
Please suggest me the SIP plan where i can get better returns in long term investment(more than 10 years).
I heard alot about Franklin returns. Please tell me which Plan is better in Franklin. Also in other Banks.
Also I want to invest 10,000 in 3/3/4 ratio with different different Banks.
Regards,
Shaleen
Regards
Shaleen-For your 10 years goal, use debt (FD or RD but best is short term debt fund) and equity in ratio of 50:50. Funds are already listed above.
gdmrng sir…m very fond of ur blog n ur valuable pieces of advice…
I have the timeframe of 15 years.and did my investment for 15 yr.my funds are following:-
Franklin India blue chip fund-direct-2500/month
sbi magnum midcap fund-2000/month
ppf-3000/month.
sir please suggest as per my 15 yr timeline,my fund selection is right?(I also tried to maintain equity:debt ratio 60:40)
Rajeev-Go ahead.
Sir I am a regular reader of your articles. I found these very useful. My age is 27. I want to build a corpus of 30 lakhs after 20 years. I have invested in SIP at Franklin india blueship fund & Frankin india prima fund Rs 500 each. I have a ppf ac where i invest Rs 1000 pm. Now how much extra I have to invest in SIP to achieve my goal. Please reply. I have term insurance also.
Bikash-Currently I am out of city. Hence, can’t calculate. But you can use online calculators to arrive at required investment. Consider equity:debt in ratio of 70:30 and return around 10%.
Sir Thanks a lot for your reply.
I am NRI,My portfolio :
1)3 ULIP policy of ICICI Pru(10 years n term going to be complete next year) – 70000 rs year
2)1 Birla Sun life Dream Endowment plan – 60000 rs year
3)Sukanya Samridhi – 1.5 lakh per year
4)Bank FD – 10 lakh @ 8.5 for 5 years
5)Post office – RD – 5000 rs per month
6)NSC – 5 lakhs
7)Post office FD – 6 lakh @ 8.4 for 5 years
8) Jeevan Surbhi – Money Back 16000 rs year
I dnt have any car n house loan.Now i want to invest in mutual fund and i am new to mutual fund.I want to invest 25000 rs per month in mutual fund.How should i invest 25000 rs to mutual fund like Debt fund,Balanced fund.
My invest time frame is 10-15 years. Suppose If i want to invest in Debt fund then how to chose which debt fund and what basis we have to select particular fund like SBI magnum fund or ICICI Pru Long Term Plan.
Rameshwar-You can use either PPF or short term debt funds.
Hi,
Am not having more knowledge in MF / shares / markets, but am looking to plan for my future like retirement (my current age 34) & child education (current age is 31/2). my investment listed below
1) ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth – one time Rs.36000 on March 2016
2) Axis long term Equity (G) – Rs.25000 one time on March 2013 (lock in period completed but not planned to close yet)
3) Axis long term Equity (D) -Rs.30000 one time on March 2014
4) PPF monthly Rs.1500/m started on August 2015 (planning to go for Rs.2000/m from April 2016)
I would like to go for 5K to 7.5K / month in SIP for long term at least 15 – 20 years, which should be eligible for 80c and good returns.
Kindly advice me to choose a better scheme.
Thank you in advance.
With Regards,
RMR
RMR-Continue same funds but with growth option and debt:equity in the ratio based on goal.
Thanks for your response.
I’ve started SIP in
Axis long term Equity (G) , ICICI Prudential Value Discovery Fund (G) & ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth – 2k /month as SIP.
How about this ICICI Prudential Child Care Plan – Gift Plan? will it be fruitful for my child education / welfare?
Kindly suggest if anything in good returns.
With Regards,
RMR
RMR-Sta away.
Hi sir,
I want to invest 5K in SIP for log term(10yr +) , i am very new for SIP.
Please suggess me 2plan in which i can invest 2 * 2.5K and get good return.
Thanks
Vinay
Vinay-Why you two plans ONLY?
Hi,
Thank you for the information that is being shared here. appreciate it. Hope you get time to address my concern!
I’m 25 years old and would like to start investing in SIP. Firstly I would like to start with investing 5K to 6K monthly and I’ve rounded on these funds after looking at your list and some other sites and came to the below conclusion. Also currently I earn around 25K and have no commitments whatsoever. So will 5k-6K be a safe play or should I invest more
Franklin Tax shield 1K monthly
Franklin Smaller Companies 1K
ICICI Pru value Discovery 1K
ICICI Pru balance advantage 1K
Mirae Assets Emerging Blue chip 1K
I want to know if this is a better idea to have 5 mutual funds. Else what would be the better option,
Thanks in advance.
Siva-How much to invest depends on you. Where is debt portfolio?
Thank you for your time. Right now I’m planning to invest 5-6k.
I do not have any idea on which debt fund to choose. Im investing 1k in iwish RD, instead of that would you be able to suggest one debt fund to proceed with.
Siva-Chose short term debt fund.
Hello sir,
I’m 45 years old , working as a Doctor
Please review and provide your valuable suggestions
My investment horizon would be 10-12 years
Corpus would be around 5-8 cr
I’m very new in investments
I started recently in SIP ie IDFC -20k
5 k for 3 kids in RD s
PPF 1.5 yearly
Sukanya smridhi 30k once
Kindly suggest more SIP for me
Regards!
Sadhana-If we assume 10% return from equity investment, then to achieve Rs.5 Cr in 12 years, you need monthly investment of Rs.1.80,000 approximately. Let me know whether it is possible for you? Also how you selected the IDFC fund and which fund it ise?
80k is enough for me per month
My friend suggested me , it’s a IDFC premier equity and IDFC sterling
Should I discontinue this?
Sadhana-One fund is not enough for goal achievement. You have to create a portfolio also you must include debt asset.
Dear Basu,
I’m 29 yrs.. working in MNC having a daughter also expecting 2 more babies by August or September. Already SSA started for daughter 1.5 lac per year. A part, I save about 5000 month looking for SIP’s. Spoke to my friends and they suggested for HDFC top 200.
I dint find any interest in investing into that fund. I would like to invest into two funds 2500*2=5000/m.
Please suggest me good returns funds for 5 Yrs.
I saw couples of replies below where you talk debt and equity which is totally bouncing for me.
Please provide the names of funds.
Thanks
AB
Akash-If your timeframe is 5 years, then don’t enter into any equity funds.
Please tell then how many years should I invest under which fund. 2500 per month in two funds.
Amit-How can I say of how many years or how much? It purely depends on your financial goals.
Dear Basu,
Thanks for all your efforts in educating people like us who keep struggling to get some genuine unbiased investment advise. Request you to please look at my portfolio and suggest changes as appropriate. I am 40 years old and the below equity portfolio is for my retirement and I intend to accumulate 5 cr over a period of 15 years. I started my SIPs in Oct 2015. All are direct growth monthly SIPs.
i. SBI Blue Chip Fund- Rs 10,000
ii. ICICI Pru Value Discovery – Rs 5000
iii. Franklin Small Cos Fund – Rs 5000
iv. Canara Robecco Emerging Equities Fund – Rs 5000
v. DSP BR Micro Cap Fund – Rs 5000
Please suggest if this is fine to build my retirement corpus.
Moreover, I also have lumpsum investments in debt funds:
i. Birla Dynamic Bond: Rs 1,00,000
ii. ICICI Equity Arbitrage Fund: Rs 2,00,000
iii. SBI Magnum Gilt Long Term Fund: Rs 1,00,000
iv. ICICI Pru Long term Fund: Rs 2,00,000
v. HDFC Liquid Fund: Rs 2,00,000
I have Rs 10 lacs as cash which I want to deploy in long term debt funds to generate wealth. Kindly advise
Many Thanks
Nischal-Where is your debt portfolio?
this is debt portfolio, isnt it?
i. Birla Dynamic Bond: Rs 1,00,000
ii. ICICI Equity Arbitrage Fund: Rs 2,00,000
iii. SBI Magnum Gilt Long Term Fund: Rs 1,00,000
iv. ICICI Pru Long term Fund: Rs 2,00,000
v. HDFC Liquid Fund: Rs 2,00,000
Nischal-Don’t go beyond short-term debt fund. The funds you hold are volatile in nature like Dynamic Bond funds, Gilt Funds or Long Term Funds. Why you invested in liquid funds? I said the overall portfolio ratio of equity and debt. Whether that is currently there?
Thanks Basu.
No equity to debt is not there. Should I maintain it?
Please can you explain why should I only focus on short term fund? I am ok investing in them.
Also, I invested in other debt funds to earn more than bank FD. Is this a wrong approach? is it ok to invest lumpsum in equity funds at this point?
My overall objective is to generate wealth.
Nishchal-To mitigate the risk, you must include debt portfolio. It is a must for all equity investors. Beyond short-term debt funds means volatility. You already have enough volatility in equity, so why more?
Dear Basavaraj,
Let me first appreciate your efforts to run blog for people to make financially literate.
I and my wife are planning to invest in SIP of two SIPs of 5000 per month for long term may be for time period of 10-15 years which will take care of all our future needs like retirement and children’s education etc. Please suggest two best growth oriented SIPs. for this goal.
We have not yet bought house and planning to buy may be in text 1-2 years time but till that time we have more spare cash like 30K per month apart from above SIP plan, so please suggest best way to invest which would give us good return as well as we should be able to liquidate, this spare 30K cash every month for short period of time around 1-2 years time frame.
we are around 35 year olds with one kid and double income.
Narendra-For your long term goals, I suggest to keep 40:60 in debt:equity. For debt you can use PPF. For equity, select one large cap and one small and mid cap fund from above list. For short term, use Bank RD.
Dear Basavaraj,
Kindly review my portfolio and suggest any changes that I need to make. I am 35 years old and have bought an apartment(EMI is running)
My portfolio:
Debt:
1) Pf+VPF = 15K per month
2) PPF = ~5k per month
3) FD/RD = ~10k per month
Equity:
1) Reliance Equity opportunities fund — NO SIP, invested 50K 6months back
2) HDFC mid cap opportunities Fund– 5k/month
3)ICICI Pru Dynamic — 5k/month
Now I want to invest another 5K /month. I am a long term investor(over 15yrs) and have decided to make below changes.
4) ICICI Pru value discovery fund –5 k/month instead of ICICI Pru dynamic fund
5) HDFC Balance Fund — 5K/month New SIP.
Please suggest if these picks are fine and also suggest if I need to make any changes in the portfolio.
Regards
Raghu
Raghu-Include one large cap fund from above list. Continue HDFC Midcap Opp and Balanced Funds. Switch to ICICI Discovery from Dynamic. Don’t invest further in Reliance fund. Keep debt to equity ratio in range of 30:70.
Dear Basavaraj,
Thanks for the quick reply.. Will maintain the folios as suggested.
Regards
Raghu
Hi Basavaraj ,
I am going to invest for the first time .I heard equity funds are best If I plan to invest for the long time.I want to invest monthly 2000-3000 Rs for a period of 3 years.Can you suggest me which plan should I choose.I have no concern for tax saving etc.
Thanks
Anshul-3 years long term? You enter into equity only if you have timeframe of 5+ years.
What kind of fund do you suggest for my kind of investment? will it be better to go for 5+ years in equity ? this sum of 2000 Rs some how gets spend every month anyway so I think I should add it up for future where i can fetch it up in a lump sum.
with the rising inflation I think the money blocked in FD is actually depreciating so I want to choose an option where it can actually grow.
Anshul-Set your financial goals at first. Then it is easy for you to chose the product.
Hello Basu,
I am Gulf based NRI with 14 year daughter. I want to accumulate a corpus of 10 lac in next 8+ years for her marriage. I do not want to take risk, so is it good for me to make SIP in Balanced fund HDFC and ICICI 5-6k in each fund monthly?
Sir, I have 15 lac cash in NRE saving a/c, planning to buy property, if I put in FD it will be locked for one year advise me to park this in short term 7-8 months with good and safe returns(tax??)
Ravinder-If you start to invest around Rs.8,000 in an short term debt fund which fetch you around 7% return, then you can achieve Rs.10,00,000 target after 8 years. It is no risk product. In one way you claim to be non-risk taker and in another way you ask of equity funds. If your intention is accumulate this through equity, then I suggest not to invest more than 40% into equity and rest 60% in safe debt product like short-term debt funds. No need to go for equity oriented balanced funds as they invest around 65% or more into equity, which is not suitable to your timeframe.
Regarding Rs.15,00,000, I suggest you to go for a deposit. When you liquidate then there may be some penalty. That’s OK, but best option.
Dear Basu,
Thanks for the kind advice. Kindly advice Short term funds. Should it be one fund or split and put in two funds?
NRI deposits for one year minimum, premature closure will not fetch any interest at all, so it has to be local FD,sure I do accept your valuable advice.
I am regular reader of your blogs, what I understood from your answers to many queries is, invest in equity 10+ years, my timeframe is 8 years, thought balanced fund would be better for me as mentioned in article both HDFC and ICICI fetching good returns in 5 years. May be I misunderstood.
As interest rates are softening will that affect debt fund returns too ?? kindly clarify
Plz.name two short term debt funds.
Many thanks
Ravinder-Invest in single short term or ultra short term fund. One fund is enough. Considering your time frame, I feel 35% debt and 65% equity is risky. Hence, I suggested to avoid balanced fund. Yes, debt funds will effect to interest rate movement. But in inverse ratio. It is like if interest rate cycle goes down, then the price will go up. When you go for short term or ultra short term funds, then the risk of volatility due to interest rate cycle change is less as they hold short term maturity bonds.
Great sir! Appreciate your kind advice. These short and ultra short funds are ok to invest for 8 years horizon with SIP? When I googled for these funds Pandora’s box opened and more confusing!! Kindly name one fund each from category as you didn’t include this category in your top 10 list.
Many thanks again
RAvinder-You did search, I suggest you go more deep and select the one which have good quality bonds in their portfolio and also the modified duration low.
Thanks Basu,
But my search seems to be a waste, kindly name one fund, for that matter few funds. I can select one among them, b’coz you will never wants to promote or seems to promote any fund as you are always unbiased and give fair advice.
Thanks again
Ravinder-Sorry to say. But your understanding is correct 🙂
Thanks Basu,
Never mind!! :-, I will wait for the opportunity. I follow your advice religiously.
I am new to SIP and I need to invest 10000 monthly in 3 to 4 SIPs. I already have Monthly 15000 in recurring account.
Please advice me which SIP I should invest and how much in each?
Sachin-Your timeframe?
Hi Basavaraj avre Vijay here.
Please provide your contact no. here to talk to you regarding investments in mutual funds.
Or else please mail me at vijay.r@lntpower.com /call me on 8875004286
Regards
Vijay Rajashekarappa
Vijay-You can contact me at tonhokrani@gmail.com.
Hey Sir
I want to invested Sum of Rs.25,000 in Mutual Fund for Long Term ,As one of my friend suggested me One Fund Called SBI magnum Mid cap Equity Regular Fund ,is it good to invest as i cant able to make out whether it good fund or not.Please Suggest & if this fund is not good tell me some Good Long term fund to invest ?And I Also want to Start SIP for Long Term suggest Any Good SIP Mutual Fund.
Regards
Mahesh
Mahesh-My selection is listed above. Also, invest in equity only if your time horizon is 5+ years with proper asset allocation to debt and equity.
kindly suggest me the fund for sip of rs 1000/ month for 5 years, as i am seeking to invest in SIP.
Amit-You mean equity mutual fund? Not suitable for your timeframe. Stay away.
Thanks for valuable information.
I’m new to SIP and finalised few funds, could you please review? My time frame vary with the goals.
Age : 33
Goal:
1: Need 50 lac in next 5-10 years for flat in delhi
2: Need 15 lac in next 15 years for child education.
3: Need 1-2 cr in next 20 years for retirement.
Emergency money available = 2 lac as of now
Medical: 7 lac(no life insurance)
Debt fund= 4 lac available in ppf + epf as of now and (7 k/ monthly premium)
land worth= 24lac in tier 3 city(planing to build home in next 15 years, so most probably will not sell it)
Since, I’m new to SIP, I don’t want to put more money but will increase gradually once i get the knowledge and get comfortable with it.
As of now, i’ve decided below funds.
Franklin india prima plus (G) Large cap 2000/
Franklin india high growth Multi cap 1000/
DSP BR Micro cap fund mid and small 1000/
ICICI pru value discovery fund Diversified 1000/
Kindly review and let me know if these funds are okay in longer terms, I can spend 10 K max.
Thanks in advance
Hem-I can’t plan your life financial planning in commenting.
Ok thanks but could you please tell me if the above funds are good for long terms(5+ yrs)
Thanks in advance!
Hem-Above funds means? My listed?
Franklin india prima plus (G) Large cap 2000/
Franklin india high growth Multi cap 1000/
DSP BR Micro cap fund mid and small 1000/
ICICI pru value discovery fund Diversified 1000/
Hem-For 5+ years one large cap fund is enough and don’t invest more than 60% into equity fund.
Sir,
please suggest short term funds for investing more than a year, being a non tax payer i thought better to invest in them instead of FD’s to avoid 15-G submission hassles every year.
Regards,
NISHIKANT
Nishikant-Avoiding TDS means tax free?
Sir,
Good Morning, Please suggest best ultra short funds and share taxation on them.
Regards,
Nishikant
Nishikant-What is your requirement from this investment? Read my latest post of taxation at “Mutual Fund Taxation – Capital Gain Tax Rates for FY 2016-17“.
Hi Basu,
Currently I have below investment (6000/-). I would like to add 4000/- more in my portfolio
1. HDFC Mid- cap Opportunities fund(G) – 2000
2. ICICI Pru Focussed BlueChip Eq Fund(G) – 2000
3. UTI Opportunities Fund(G) – 2000
Can you suggest me which one I should further add. My target is for more than 10-12 years. I am 34 year old and I have 4 year daughter.
I was thinking for below :
Franklin India Smaller Companies Fund – 2000
Franklin(I) High Growth Cos fund – 2000
Daya-UTI is currently in large cap category. Hence, retain ICICI and come out of UTI. Both new franklin funds are find. However, where is your debt portfolio?
Thanks for your reply. I have not taken Debt portfolio. I have invested 2.5 lacs in NSC and rotating every month for tax deduciton. Also I have house loan so 80 C is getting covered by both including my kids school fee.
Which MF I should take in place of UTI?. Total 3 MF I would like to add worth 6000. Please suggest. Also If I am looking for more than 10-12 years so Shall I also include debt fund in my portfolio and if yes then which one I should take.
ICICI Prudential Value discovery fund
HDFC Balanced
Franklin India Smaller Companies Fund
Franklin(I) High Growth Cos fund
Thank you very much for your time and suggestion.
Daya-Funds are now fine. But you must include debt portfolio.
Hi Basu,
Which Debt portfolio you would like to suggest?
Daya-Short Term or Ultra Short Term Debt Funds or even PPF (if goal matches the maturity).
Thanks. I was investing through Funds India and now I want to switch with direct fund so is it wise to switch from distributor and invest directly or shall I close that fund and invest again directly?
Daya-If you feel FundsIndia service not add value to your investment, then you can opt for DIRECT.
Hi Sir,
I am a Girl of 23 working in a MNC , currently earning 25K/PM.
I have come to know that if you start investing early you will have more benefits.
Now first of all these mid cap large cap small cap n balanced cap plans are something I don’t understand
As per you what should I do If i seek for investing Rs. 5000 for a period of 3 years and 1000 for a period of 5 years.
I am unable to understand the high terminology of commerce and investment.
Kindly keep it simple.
Shalini-If your time period is 3-5 years, then simply use RDs. Equity investment is for those who are ready to invest for long term like 5-7+ years.
Hi Sir,
Just started my investments in Mutual funds. I have picked up the following and done a SIP last week before i got to see your page.
DSP Blackrock Micro Cap,
Franklin India Oppurtunities,
SBI blue chip fund,
L & T prudence fund All Growth options.
Pls advise if i need to change any of the above and also advise what other funds i can add to my portfolio. Thanks.
Sreedhar-What is your timeframe?
Hi
I have selected below 5 funds to be invested for long time [say 15-20 years].
All are Direct Growth with 1k each.
1. SBI Bluechip
2. ICICI Pru Value Discovery
3. Mirae Asset Emerging Bluechip
4. Franklin Ind Smaller Companies
5. DSP BR Microcap
Please express your views……
Rahul-Why two small cap funds (DSPBR and Franklin)? I suggest Franklin to retain. Also, where is your debt portfolio?
I have 5000 pm RD in bank as debt part.
If I have change DSP BR Microcap, what fund to replace with…
Rahul-I already said that. It is Franklin existing fund.
Hi…
I am 30 years old. And I want to invest long term in sip [say 20 yrars]….
Want to invest 5k monthly in 5 different funds 1k each….
Mostly in small/mid cap.
Please suggest 5 finds.
Gautam-Why 5 funds and why small/mid cap?
Small and Mid cap gives higher returns…can take 2 multicap too…
But want 5 funds…. its 1k each….
Gautam-I completely agree that small and mid cap can give you high returns. But may ruin you highly in case of market downfall.
Ya… I know…. So please advice 5 fund that will make balance…
Gautam-It’s your wish and the funds are listed above. Because at the end of day, it is your MONEY right 🙂
Hi Basu Sir,
I keep following you blog and post from last couple of months. i am 32 yrs of age:
Below are my investments and request you to review:
1. Axis Long term equity – ELSS – SIP 2500 Rs from Oct 2015 (20 yrs)
2. UTI Mid cap fund – SIP 2000 Rs from Dec 2015 (15 yrs)
New funds I have selected for my Son (1 year old) future (12-15 yrs):
3. ICICI pru value discovery – want to start SIP 1500 Rs
4. Tata Balanced Fund – want to start SIP 1500 Rs
Queries:
A. Should I continue to UTI mid cap. Do you see any issue with this fund.
B. 1 and 3 are multi cap funds. Fund overlap <12%. Selection of ICICI valure discovery is appropriate or not.
c. Larger cap fund do I need to consider intead of 3.
D. In balanced fund I am little confused between Tata and HDFC. If you suggest both are okey then I will go for Tata.
Request you to review queries.
Mukul-You can continue the UTI Fund. Missing part is large cap fund. Also make sure that for each goal you must have equity:debt ratio in 70:30 (I am recommending this based on your timeframe of goals). You can continue Axis, ICICI and Tata. No issues.
Hi,
I have started investing in MF from 2016 . I invest every month in a new MF based upon the ranking. I am planning to go for purchase of other MF also in subsequent months.
Already invested
DSP BLACKROCK MICRO CAP FUND – REGULAR PLAN – GROWTH – 2K – 3 yrs
SBI PHARMA FUND – REGULAR PLAN – GROWTH – 2K – 3 yrs
Axis Long Term Equity-G – 2K – 3yrs
Planning to invest:
Franklin India Smaller Companies Fund GROWTH – 2K- 3yrs
SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH – 2K – 5 yrs
Mirae Emerging Bluechip Fund (G) – 2K -3yrs
Reliance Small Cap Fund (G) – 2K – 3yrs
I have already a backup of Rs. 10L in FD. and 3L in RD. Can you suggest me, if my planning is good to go ahead or i need to change the time frame or invest in mutual fund.
My obejective is to get every month a sum of Rs. 2-3 L after 3 years.
Rakesh-Invest every month based on ranking? What if the next month the ranking change? Will you switch over to another fund? Three funds are enough to create a best portfolio. Why so many funds to confuse on your own?
Thank you Basu 🙂
Can you guide me which mutual fund to purchase and for how many years.
Rakesh-They are listed above. How many years depends on your goal.
Dear Basavaraj,
Which Mutual Fund cap suits for investor ?
If one would like to built the better mutual fund portfolio across the various market cap funds based on his financial goals with its time-frame then what will be the approach?
Anup-It depends on the timeframe of goal and how he structured his debt and equity portfolio. Hard to say any generic answer.
Hello Sir,
When you say 70:30 or 60: 40 in equity to debt ratio. Can Bank FD also considered as an Debt option . or it has to be in a mutual fund which invests 70 % in equity and balance in debt funds
Regards,
Shankar
Shankar-You can use bank FDs too.
Hi Basavaraj,
I am currently 37 years old and have 7 years old daughter. I want to invest for my daughter’s higher education which is about 10-11 years from now, her marriage which is about 15-16 years from now, my retirement which is about 23 years from now. I have been investing in PPF (putting in Sukanya Samruddhi Yojana this year onwards), somewhat in FDs and RDs. But if I have to invest in SIPs, which category funds (equity, debt, etc. and Large cap / mid-cap / multi-cap etc.) are good for my portfolio. Also, if you can name a few companies (of course you have listed above, but which are best of best?) considering my requirements.
—
Br, Ravi A.
Hi Basavaraj, One more question: which platform is best to invest, whether online sites such as Funds India or Scripbox (if so, which one of these two?) or whether one should invest directly with AMC? thanks.
—
Br, Ravi A.
RAvi-If you are cabpale of reviewing and monitoring on your own, then use direct platforms like MF Utility or Investza.
RAvi-You have to go for combination of debt (PPF and Sukanya Samriddhi Account) and Equity Funds. You can include one large cap , one small and mid cap and one large and mid cap. Funds are listed above.
Thanks a lot, Basu Ji :-)! You have been very helpful. One question still :-)…. What are the pros and cons of investing in each category of funds, i.e. Large Cap, Large and Mid Cap, Small and Mid Cap etc. I mean, what are the advantages or disadvantages of investing in each of these? You may also point me to an article giving details / explanation of each of these category of funds. Thanks.
—
Ravi A.
RAvi-Your money will get diversified among all sectors and all cap stocks. I may say a better diversification leads you a less risky.
Hi Basavaraj, Nice article and good to see you helping others to increase their money.
I too have a query for you… am 44 years of age now – doing job with an MNC. Considering two goals – Corpus for my son’s professional education after 6 years (Target 15 lacs), and similarly daughter’s professional education after 14 years (Target 30 lacs?), please suggest best funds for wealth creation.
Currently I have ~10 lacs to invest now, and then can invest total ~30K / month SIP further. Please suggest best funds to invest. Presently all my current investments are mostly in debt instruments, and the targets/ investments that I have mentioned above are for equity investments only.
Thanks in advance for your valuable inputs.
Rakshak-For a goal of 6 years, I suggest to use debt in ratio of 70% and equity in ratio of 30%. For the 14 years goal the reverse will be fine. I mean 30% in debt and 70% in equity. Regarding debt, you can use short term debt funds or ultra short term debt funds. Regarding equity, I already mentioned my choices.
Hi basavaraj, good to read your article and advice. I have been thinking of investing 20-30k in sips for a 10-15 year duration. We don’t have a stable job or house in Delhi, and also thinking of buying a house.
Keeping that things in mind can you kindly suggest a portfolio for investing in sip.
Thanking u in advance
Karsing-First decide whether it is 10 years or 15 years.
Dear Basuji,
First off all thank you very much for my first question about SIP portfolio. I have some more little queries. I am having SIP in reliance growth and reliance opportunities from 5-6 yrs. Now i want to redeem major chunk from those SIPs. Because after reading in your blog i dont want to remain in this fund any more. But, both are SIP INSURE. They say that if you redeem some portion, you will loose your insurance cover. Is that true? Now I am nearing age of 50. And want to marry my daughter in 5-6 yrs. Also want to invest for retirement. Plz. suggest me right SIP formation. And good funds also. Is HDFC Balanced fund appropriate for debt portion?
Pratap-If your daughter’s marriage is just 5-6 years away, then you have to come out from these equity funds (keep around 30% only in equity and rest in debt). When your concern is investment, then why you are bothering about insurance? Regarding fresh investment, considering your retirement age as 60 years, I suggest equity to debt in ratio of 60% to 40%. Funds are listed above.
since 2014 oct.i have investing in following mf hdfc top 200,hdfc prudence,dsp blackrock microcap SIP rs.1000 each/month.is it good investment or add another fund in place of hdfc top 200.pls. suggest. thnx
Kailas-Why you felt HDFC Top 200 to replace with new fund?
Hello Sir,
My name’s Apoorv and I am 22 y.o . I just got my first job and heard about SIP from many people.I am not such Business/Finance savvy so I really don’t understand what you explained in the above list however i really want to invest 1000 rs per month for as long as 3 years of time period.Can you please suggest me if I should invest in SIP or not,if yes then in which type of fund should I invest from the above list.Please guide me through this.Thank you.
Regards,
Apoorv
Apporv-If your timeframe is 3 years, then don’t enter into equity mutual fund.
Dear Basavraji,
My SIP portfolio is as follows :
Reliance Growth Fund : Rs. 1000
Reliance Opportunites Fund : Rs. 2000
Icici Discovery Fund : Rs. 1000
Axis Long Term : Rs. 4000
Franklin High Growth : Rs. 1000
Hdfc Balanced : Rs. 1000
Is it ok. or some changes shoule be made. Plz. guide
Pratap-One large cap, one multi cap, one small and mid cap enough. Even I am find with single balanced fund.
sir I am 30 yr old. (I HV my debt part covered in ppf and post office FD).
i want to sip of 2500 per month for 15 years,as my equity part..
so please suggest me in which category should I invest(I mean large cap/mid/small cap equity MF)???
Rajesh-One large cap and another small and mid cap fund from above list.
sir,
Kindly help me to find suitable mutual fund for Rs. 3,000/- per month for long term horizon 10 to 15 years . I don’t have any mutual fund investment as of now. .
Regards
Rohit-They are already listed above.
Hi ,
My age is 30 yrs and I am new to SIP. I can invest 5000/month for 10 / 15 yrs. Please if you can suggest be some best options please. I am looking to have good amount by the time I retire at the age of 60 yrs.
Regards
Munmun-First understand when you need money EXACTLY. There is a gap of long 5 years between 10/15 years. The funds are listed above. Please go through the above post.
Sir,
I am planning to invest in HDFC Equity Fund-G , keeping in mind portfolio overlap.
I have SIP’s running of 2K each in three funds currently in Franklin India Prima fund and Franklin India high growth cos fund and HDFC Balanced Fund all growth options with time frame of 7 to 9 years. Are the existing funds okay .
thanks and regards,
NISHIKANT
Nishikant-What about your debt portfolio? You must manage around 40% in debt and rest 60% ONLY in equity.
Hello Sir,
I am 34 year old and having been investing in the below funds.
Birla Sunlife Top 100 fund
Franklin Opportunities Fund
HDFC Top 200
L&T Equity Fund
Reliance Equity Opportunities Fund
DSP MicroCAp FUnd- Regular Plan
IDFC Dynamic Bond Fund
I am looking at Systematic Investment for a period of 20 Years. Is the above portfolio a good one to continue investing. Or should i look at making some changes.
Novy-Why so many funds? Also, where is your debt portfolio?
I do have my Debt portfolio covered by EPF, PPF & the IDFC Debt fund. The no. of funds in my portfolio increased over a period of time. Is it advisable to consolidate all the investment into fewer funds, or should i stay invested in these funds and just ensure that future investments are consolidated.
Novy-Consolidate and make sure to have maximum 3-4 funds.
i m new in SIP mutul fund system.i want to invest 2000rs per mnth for 5 yr..which mutual fund is best,,pl suggest me ..
thnks
Vimal-Use 50% in Bank RDs and 50% in short term debt funds.
Hello Sir,
I am investing in Reliance Top 200 Growth (Retail) mutual fund. My sip is Rs. 1000/- PM.
Should i continue with this Mutual fund?
Ajay-It is a multi cap fund and I am not sure about it’s performance than the above said two large and mid cap funds. Also, I am not sure about your tenure. So hard to guide you.
Dear Sir
i want to invest rs 15000/- per month what is best sip or mutual fund for 15 year.please suggest some best fund name.my age is 30 years.
Regards
Ashok
Ashok-They are already listed above.
Hello Sir,
I am currently investing in following funds.
1.UTI Retirement Benefit Pension Fund -2k/permonth
2.HDFC Balanced Fund – Direct Plan (G)-2k/permonth
3.PPF-2k/permonth
4. Reliance My Gold Plan – 2k/Per Month
Please review and provide your valuable suggestions. If I want to increase my sip amount another 2k,should I have to go for other funds or in which of the above funds I can increase SIP.
Also, i had invested around 48 K on KOTAK World GOLD FUND Direct Growth 4 Months back and sold them recently and got around 60K in return.
Could you please advice or show direction on where i can invest that 60K.
Thanks in advance.
Regards,
Praveen
Praveen-How you selected these funds? Any specific reasons?
Hello Sir,
1.UTI Retirement Benefit Pension Fund -2k/permonth
Was advised one of my relatives and have been insvesting 2k/Permonth since 6 Years. If it can be invested in others funds i would take your advise.
2.HDFC Balanced Fund – Direct Plan (G)-2k/permonth
Started investing in this fund since Feb’2016 after reading your post on TOP SIP to invest in 2016.
3.PPF-2k/permonth
Again was an advise of a friend. Investing 2k/per month since 1 year.
4. Reliance My Gold Plan – 2k/Per Month
I have a daughter of 4years, so thought of investing in GOLD from now on rather than buying large amounts later.
Also, i have doing an RD of 5K/per month for covering school fees every year.
I was monitoring Gold funds since 1 year and 6 months back the NAV became very low so took a risk and invested 48K in them. Now i recently sold them and got around 60K.
Your advise in this regard will be greatly appreciated.
Thanks & regards
Praveen
Praveen-First of all remove gold investments completely (Maximum I suggest around 10% of your overall investment). Define goals for each investment. Your friend will not be there when you actually need a cash for funding your goals. Whether your each investments attached with specific goals? I smell they are not.
Hi Basu,
I am investing money as follows ..Can you please suggest me some other investment plans also for saving money and get good returns
1000/- in HDFCmid cap.
1000/- in HDFC Balanced fund.
1000/- in ICICI bluechip.
2000/ in Sukanya sumrudhi.
(60000/- per annum) in HDFC/LIC insurance.
1000 in SBH RD.
1) Will U suggest me to invest 1000/- monthly in PPF Or Instead of PPF, Can i invest in some other mutual fund for 15 years?
2) Can i take any other insurance plan?
Karthik-I don’t know your financial goals. Then how can I guide you?
Please suggest some better schemes for the SIP for 5 – 10 years.
Abhishek-First be clear with your investment. There is a huge gap of 5 years between 5-10 yrs.
5 years.
Abhishek-No equity for your goal. Stay away.
Dear sir
I have recently invested in two SIPs. Rs 5000/- PM in SBI blue chip fund reg plan(G) and Rs 5000/- Pm in SBI Magnum Global fund -regular(G). My present inv plan is for more than 5 years. Pl enlighten on the followings:-
Whether both these funds are purely equity linked or otherwise.
Whether these are large cap, mid cap / short cap equity funds or balanced or debt fund
Have I selected good funds
Should I extend the periodicity of my inv plan for better returns.
What is a liquidity fund.
Further If my son aged 28 yrs intends to invest Rs 40000/- pm for a long term of min 10 yrs, what can be the four good funds for him including one for Tax savings.
Regards
NK Mittal
Narendra-How you blindly invested without knowing much about these funds? Also, be specific about your time frame to guide me in better way.
Hi,
I am a beginner in the MF world and planning to start SIP in the following funds for 15 years.
Birla Sunlife Frontline Equity Fund – 2K
HDFC Midcap Opportunity Fund- 1K
Please suggest.
Thanks
Bhaskar
Bhaskar-Where is your debt portion? Don’t invest all money in equity.
Hi Basavaraj,
Could you please suggest me a debt fund and also suggest if I it is good go with one chunk of the below amount in Birla Sunlife Frontline Equity Fund.
1. My age is 31.
2. Planning to invest 4000 per month.
3. Time Horizon is 15 years.
Thanks
Bhaskar
Bhaskar-You can opt for PPF or short term debt fund for your debt category of investment. Birla fund is good but along with that add one small and mid cap fund from above list.
Hi,
I am 24 now and thinking to invest 1000 each in below mentioned schemes as SIP for (5 years). Please suggest some better schemes apart from the below mentioned ones for (5 years duration).
1. Axis Long term Equity Fund
2. Franklin India Smaller Cos Fund
3. HDFC Balanced fund
4. HDFC Medium Term Opportunities Fund (G)
5. JPMorgan India Banking And PSU Debt Fund – Regular Plan (G)
6. L&T Short Term Opportunities Fund (G)
Abhishek-I not recommend any product if your timeframe is 5 years.
Hey,
I want to invest a sum of Rs 5000/-per month for a period of 25-30 years. Please suggest me in which SIP plans I will go for (Small Cap/Mid Cap or Large Cap).
Please provide the MF names.
Many Thanks
Dear Basu,
currently I am investing in below MF (SIP Rs. 2000 per month), please suggest if it is advisable to switch to other schemes. My time horizon is 5-7 years.
DSP BlackRock Small and Mid Cap Fund-Growth
DSP BlackRock Top 100 Equity-Growth
Franklin India High Growth Companies Fund GROWTH
HDFC TOP 200 FUND – DIVIDEND REINVESTMENT
ICICI Pru Focused Bluechip Equity Fund Reg Plan Growth
ICICI Prudential Value Discovery Fund Reg Plan – Growth
RELIANCE REGULAR SAVINGS EQUITY FUND – GROWTH OPTION
Devendra-One large cap like ICICI Bluechip Fund for around 40% and rest 60% in debt fund is enough. Your time horizon is short. So don’t over expose towards equity.
I wish to deposit 2000/- per month for one year in SIP and I need maximum earnings from it .
Can you please suggest the best one. I have very less knowledge in this.
Ranjini-SIP in Bank RD of one year. The BEST.
Thank you sir
Hi Basavaraj,
I have been investing monthly 2000/- in HDFC mid cap opportunity from past 1 year. Till now I have invested 23,000/- but the value now is 20,190.
It is showing some loss, So I want to stop this SIP.
Can u suggest me to stop this SIP?
Karthik-Whether you invested in this fund only for a one year time frame in mind? If YES, then please come out of equity at the earliest. This where we commit mistake.
Hi Basavaraj,
I want to invest money with the time frame of 7-8 years, Then it will be ok to continue in this HDFC mid cap fund?
Karthik-No small and mid cap for your timeframe.
Sir I have started Flexi SIP in the Mutual fund with least amount i.e. 1000 SIP / Month in few selected funds.
1. The reason I started with such low amount is to ensure I keep on paying the SIP monthly even if I do have financial crisis or other commitments in that particular month.
2. Flexi SIP, so that even If I fail to buy MF in any particular month no issues and my Fund continues.
3. When ever I want I can inject more amount in particular MF and Buy in the same portfolio number
Kindly advice weather such approach is good and am I loosing any extra amount or charges because of such approach.
Sachin-When it comes to investment, I love the forced systematic approach of investment than FLEXI.
Agreed ,Thanks
Hi,
I have few general questions?
Suppose, I’m investing 10k every month thro SIP equally divided in all categories
1) Is it prudent to change funds within the category every year because i found another better performing fund?
2) If i don’t want to sell the discontinued funds, then is it OK to have such large number of mutual funds in my portfolio. Are i have to sell those?
3) For eg. i am having HDFC Top 200 sip and i want to stop that and start Franklin Bluechip or ICICI Pru focussed. By changing funds frequently am i diminishing the wealth accumulation through compounding?
Gayathri-1) Not required and not possible too. The fund you invest now may not be badly ranked by rating portals. Also, no one can be in a position that the fund he/she invested MUST always remain 5 star rated. However, if the fund not performing consistently and under performing to it’s benchmark, then you have to take a call. But strictly not within a year or two.
2) It is purely your call to sell or hold. There are many ways to complicate life. But simple solution always leads to success.
3) Not at all. Because you are redeeming from one fund and investing in another. However, I still fan of HDFC Top 200.
Hi BasavaraJ,
I want to invest 10K per month in SIP. My investment plan is 15 years. Could you please suggest me a best Fund?
Regards,
Amar
Amar-They are already listed above.
Hi Basavaraj,
Yes, thanks for filtering out the top funds and for your quick response. The doubt that I have is, under non tax savers, which Fund category we have to choose? For example, if I wish to invest in Franklin, should I go for Large cap Fund or Large and Mid cap fund?
Appreciate your help and suggestion
Regards,
Amar
Amar-Your investment not all matters your taxation. You have to include one large cap and one small and mid cap. If possible add one large and mid cap. But make sure that equity:debt portion based on your timeframe.
Thank you Basavaraj. One more last question 🙂 – What is your view on Franklin India High Growth Companies Fund?
Amar-It is good multi cap fund as of now. But I suggest only when the fund go through all cycles of a market.
Hi Basu,
I started investing last year in SIP with below funds when NAV was @ this price. Each fund SIP of 2000 is investing monthly.
My Asset Allocation with NAVs purchasing time value:
Franklin India PRIMA PLUS GROWTH 450.719800
Franklin India Smaller Companies Fund – Growth 39.881900
HDFC BALANCED FUND – GROWTH 110.447000
UTI EQUITY FUND GROWTH 104.165600
UTI – MID CAP FUND -GROWTH 82.577500
My time horizon is minimum 8-10 years now all my funds are giving -ve returns should i switch/stop Or change the Asset/funds completely?
I want to reach 1 Crore how many i should wait with these funds to reach?
Your suggestion is very valuable to take my LIFE financial decision.
Best Regards
Manju-You just started investing and you claim to be investor of 8+ years, then why you are concentrating a year negative return?
Hello Basavraj,
I am sorry if it sounds stupid out of me to ask this kind of question.
Can one consider having Tax Savings Fund in the portfolio like any other pure MFs? Or should consider it as a separate entity? If separate, then for what goals it can be attributed to (say long-term goals), apart from just being a tax saving option, and what % returns one can expect vs. pure MFs?
Mahesh-You can consider tax saving funds for consideration while investing into equity. But keep in mind that such funds comes with lock-in of 3 years and also if your goal is long-term, then you can consider it. Many fail to understand that tax saving products are for long term. Also, they not align this investment with their long term goals.
Thank You Basavaraj.
As you have rightly pointed out, I wanted to be clear about its utility in my long-term goals, apart from just being a tax-saving component.
So, essentially it means that one can bet on this component while creating a portfolio for any of the long-term goals (say 10+ years), right? How much returns can be expected?
Mahesh-Yes, your understanding is correct. I assume around 10% to 12% return from equity investment if your time horizon is more than 10+ years.
Thanks a lot Basavaraj for the clarification.
Hi,
Iam 27 year old, currently Iam doing below mentioned investments:
1. Birla Sun Life Tax Relief 96 (G) – SIP – 2k
2. IDFC Tax Advantage (ELSS) Fund – Regular Plan (G) – SIP – 1k
3.Reliance Tax Saver (ELSS) Fund (D) – SIP- 2k
4. SBI Magnum Midcap Fund (G) – SIP – 1k
5. Franklin India High Growth Companies Fund (G) – SIP- 1K
6. LIC Rs. 52,500 pa
I have started investing since year only and my goal is to get good returns in 5-7 years. Please suggest me whether my current plan is correct and also suggest where else i can invest Rs. 2 K per month. I have to fulfill my 80 c criteria also.
regards
Bhardwaj
Bhardwaj-Why so many tax saving funds? Retain one. Also, if your investment period is 5-7 yeas, then don’t go beyond 50% of your total investable surplus towards equity. I am not sure about LIC. For me insurance means pure term plan.
Which fund should I buy
Axis Long Term Equity Fund or ICICI Pru Tax Plan
Wants to start an SIP
Please suggest best one
Vishal-Go through my earlier post “Top 5 Best ELSS or Tax Saving Mutual Funds to invest in 2016“.
I have SIP’s running of 2K each in three funds currently in Franklin India Prima fund and Franklin India high growth cos fund and HDFC Balanced Fund all growth options with time frame of 7 to 9 years. Are the existing funds okay and is it okay if I add a debt fund to these again with the same investment and time frame?
I have selected diversified Franklin funds keeping in mind portfolio overlap, that is around 28%.
Regards,
Manoj Tiwari
Manoj-Considering your timeframe, I suggest more to consider about large cap fund. Also restrict your equity to the maximum of 60%.
Hi,
I am 32 years old and planning to invest 10K per month in following funds for 15 years around.
Large Cap SBI Blue Chip 2k
Large And Mid Franklin INdia Prima Plus 2k
Small And Mid SBI Magnum Mid Cap Fund 2k
Balance Fund SBI Magnum Balance Fund 4k
I have sum LIC policy for family member where I am investing 100K per year. Please suggest me whether above funds combination is ok or not. And what would be the average returns for long term (15-20 years) if someone select the funds from each category as you mentioned. I know it’s hard to say but just a rough idea will be good.
Sarvesh-Funds are fine. But try to manage around 70:30 in equity:debt. Come out of those LIC products. They are low yielding products. You can expect around 10% to 12% return.
What do you think about sukanya samriddhi yojana? Is it worth to open my daughter’s (6 years old)account in this scheme. Gov is giving around 9.2% (current financial) ROI. Should I invest 50% of my debt here and rest in other debt.?
Sarvesh-It is politically motivated product. We don’t know the faith once the current Govt changes. Hence, I prefer PPF over this scheme.
thanks for answering..
does long term(10-15 years) investment in mutual funds comes under taxation or not?
Sarvesh-For debt fund long capital gain will be 20% with indexation (long term means 3 years or more). For equity mutual funds long-term capital gain is NIL (long term means more than a year).
above you mentioned to keep 70 -30 equity:debt ratio. Could you please suggest some debt funds?
Sarvesh-There is no specific fund. You can use PPF (if goal matches to it’s tenure), short term debt funds for managing it.
Hi Basu:
I have SIP 2500 Rs in UTI Mid cap fund Direct Growth from Nov 15. Should I continue this fund or not as fund manager has changed. I checked it on Value Research. If you advice to exit then please suggest other plan
Axis long Term Equity Fund Dirct Growth – Sip 2500 Rs.
Suggest one balanced fund for long term for wealth creation.
Mukul-Continue UTI and Axis. Balanced funds are listed above. Check it.
Sir,
Please share your views about current noise.
Regards,
NISHIKANT
Nishikant-You accepted it is NOISE right? 🙂 I say stay away from NOISE. Look at long term view.
Sir I want to invest in sip of sbi mutual funds from my pocket money .I invest 1000 per month plz suggest better scheme of sbi mutual funds
Pradeep-Without knowing your exact goal and timeframe, how can I guide you?
Time frame 25 to 30 years high risk means can digest capital loss in medium term to get 14 CAGR over the given time frame
Dear sir
I have SIP in following funds for past 6 months
Franklin high growth companies -2000
Franklin smaller companies -1500
Mirae emerging bluechip fluid-1500
All are regular plans with growth option.I also Have a one time investment of 140000(L&t Business cycle fund made in August 2014 at NFO and Mirae Tax saver fund 104000 made in December 2015 at NFO)
I want to know If any changes are to be made to my portfolio.Also weather shall i continue the lump sum investments in the above said plans.I am 30 years old and can take high risk for returns.
Regrads
Arun
Arun-Define HIGH RISK and your timeframe.
Time frame 25 to 30 years high risk means can digest capital loss in medium term to get 14 CAGR over the given time frame
Arun-If that is the case, then use one large cap, one small and mid cap fund (or one large and mid cap fund also). Start investing. Investing in a same asset category is HIGH RISK than what your RISK IS.
sir What about one time investments in the above said nfo’s?
Arun-If you are long term investor, then you can.
Thank you
suggest me one large cap fund in place of franklin high growth companies fund?
Arun-They are already listed.
Dear Mr. Basavaraj,
Can you please suggest a good performing mutual fund of UTI. Lump sum investment of Rs.10000. duration of investment- 10 years.
Nemish-My choices are explained above.
Mr. Basavaraj,
Can you please pin point the paragraph? Where “above”?
Nemish-I indirectly said that in my favorite lists sadly UTI funds are not there.
Dear Basavaraj,
Thank you for your ‘indirect’ reply. Please try to be ‘direct’ in your answer. It helps a lot.
Nemish-If I start to give DIRECT answers, then people feel I am BIASED. Hence, I avoid it to readers decision.
Hi Basu
I am 32 years old private employee earning around 35,000 per month. My EPF is around 1,500 per month, currently at 2.5Lakhs. I am saving 1,50,000 in PPF from last 3 years & continue to do it for full term maybe also for extended term. I have a RD of 3,000 @ 8.5% in bank from last 2 years. I have opened a Sukanya Samrudhi Account from Jan-2016 with 1,000 per month. I have NSC of around 3 lakhs to be matured in next 2 years which I intend to keep as emergency fund. I have 3 policies in LIC with total sum assured of 10 lakhs @ 42,000 per annum premium. I know these are some mistakes done during my earlier days in job but cannot give up now after 10 years of paying premium. I have health insurance of 2lakhs per person from my employer. I have been doing SIP of 6000 per month in MFs for last one year & my target is 50lakhs in 10years. Kindly analyse the portfolio & give suggestions that it is possible or not.
ICICI prudential focussed bluechip equity – 1000
HDFC balanced – 1000
UTI equity – 1000
UTI midcap – 1000
Franklin India high growth companies – 1000
Franklin India smaller companies – 1000
Thanks
Deepak-It is hard to accumulate Rs.50 lakh within 10 years with just around Rs.6,000 of monthly investment (if we consider 12% return). In my view, ICICI HDFC and Franklin India High Growth Companies Fund are enough. Also, try to manage 60:40 in equity and debt. If we consider 12% as return on investment, then you have to invest around Rs.21,000 monthly to achieve Rs.50 lakh in 10 years.
Hi Basu,
Thanks for the reply. Sorry, I forgot to mention. I am planning to increase the SIP amount by 1,000 per fund per year upto 10 years & mostly in large cap & balanced fund. Then the target is achievable or not? Should I discontinue the other 3 funds or continue for the full term? I have 12,000 in each fund. What should I do? Please advice. I am personally not inclined towards pure debt funds, because I am not clear about the taxation structure & post tax return. Also I have enough debt exposure already in EPF,PPF,RD,NSC etc. Are debt MFs necessary? If yes, then which one fund I should choose?
Thanks
Deepak-Three funds are enough. Regarding target, I already pointed my view. Debt exposure is very much required to create a balanced portfolio. Otherwise it is more risky.
Kindly advise a good debt fund to hold for 10 years. Also give some illustration about its taxation rules & post tax return as I am not very clear about that. You have not answered “Should I discontinue the other 3 funds or continue”. If No, then what to do with the invested amount.
Thanks
Sir i am investing 4000 p.m SIP in icici long term equity tax plan since 2014.But now it is giving negetive return .Should i continue or switch t any other fund of same category.
Aji-Continue.
After 3yrs SIP again renewed SIP in Mutual fund in May 15 ,now if I discontinue them in Feb 16
Will there be any fine or tax implications.
I am operating through a demat account online.
Regards
Sachin
Sachin-No there will not be any issue or tax implications. Tax implications arise only when you withdraw the invested amount.
My Portfolio
HDFC Blanced fund started in Jan 16
ICICI Pru Long term started in Nov 15
ICICI Pru Dynamic started in Jan 16
HDFC Mid cap oppo started in Jan 16
SBI Blue chip started in May 15
Reliance Vision since 4 yrs now
DSP Black rock top 100 since 4 yrs
DSP Blackrock Equity since 4 yrs
HDFC Top 200 since 4 yrs
Kindly review and give your advice on which I should continue and which is should discontinue.
Have kept 9 MF for future planning of my 2 kids hence have selected 9 MF ,which I can liquidate as required for their future planning.
Regards
Sachin
Sachin-Two funds are enough, one large cap and another small and mid cap in equity. Why 9 funds?
Idea to have 9 MF is incase I need to liquidate some MF during requirement I can keep the other still active.For eg I have 2 childrens ,so as per the requirement I can liquidate MF when they have requirement.
Kindly advise ,is this approach good or do we have any other solutions
regards
Sachin
Could you please analyze above fund portfolio and advice which should be good to retain and which should I get out.
Regards
Sachin
Sachin-What if all those 9 mutual funds investing in same sector or stocks??
Got it thanks
Regards
Sachin
Dear Sir,
I am Vignesh. My Native is in Rajapalayam,Tamil Nadu. Before 2 Yrs 4 Months I invested 5 Lakhs in CROWN AGRO INDIA LIMITED,Rajapalayam,( CIN No-U01403TN2013PLC089945 ). when i was invested there, they told me 36% interest/Annum will come. Last October 2015 My 2 Yrs Agreement completed. From October month he told me”Our Bank will Getting Govt Approved,That’s why we are waitng”. whenever i asking him, he is giving me new date. For Extending time Also My invest money getting 3% interest/Month. What should i do for getting my Invest money? Can i Believe his word?
Bank Details:
CROWN AGRO INDIA LIMITED,
DOOR.NO.135,
KAMARAJAR NAGAR,
RAJAPALAYAM – 626117
Tamil Nadu
INDIA
Vignesh-I think it is not a bank. Raise the complaint with policy immediately without wait.
Vignesh,
I suggest that along with a police complaint, also complain before the RBI and get them in the loop. This is a serious crime.
Nemish-Well said.
Mr.Nemish Zaveri/Mr.Basavaraj,
How can i complain to tha RBI and get them loop. can u send me website details? In my Rajapalayam also many peoples are given money for investing to Crown Agro India Limited. I’m also more than 6 months waiting for my final clearance. My dad is always believing him. but my suggestion “he is fraud”. Police Complaint also happened,but he is managing them. Through RBI i have to give complaint him.
Vignesh-USE RBI PORTAL.
HI Vignesh, one of my friend also facing same problem with Crown, could you please let me know your contact details. So that both you can raise complaint together.
Mr.Kumar,
Currently I’m in Qatar. My Native is in Rajapalayam. Please note my Number +974 74034017(Whatsapp also same). You can message me and I am ready to raise the complaint against him.
Vignesh-Why you are sharing this number to me?
Hi,
Can you please give some suggestion on good debt funds. My investment time horizon is 2-3 years.
Rohit-For you Bank FDs.
Respected Sir,
I am a 29 years old newly married working in a Govt PSU since 2010. My wife is working in IT MNC. We have been Married since Dec’15.
My Salary = 45000/month. (Post Tax).
My Wife’s Salary= 30000/Month.
Expense including house rent(7K) = 24000 per month.
My wife has education loan and paying 5000/month as EMI & will end on mid- 2017.
My wife’s extra expense viz transport/lunch/tiffin/etc = 4000/month.
Hence total expense of my wife= 9000/-.
Savings/Investment Valuation as on 31.12.15:- (My)
1. EPF Account = 3 Lakh + 3 Lakh employers contribution = 6 Lakh Total.
2. PPF = 1.2 Lakh(Started 2012)
3. ELSS = 1.2 Lakh ( 95000/- in Axis LTE Fund & 25000/- in ICICI Pru Tax Plan) invested through FY 2013-15 for saving tax.
4. Savings Account(Sweep Transfer) (@8%)= 2 Lakh.(Contigency fund)
5. MF:- (Present Value)
Invested in 3 other MF in FY 2013-14 through SIP.
i. ICICI focused bluechip- 75000/-
ii. Quantum LTE- 125000/-
iii. Franklin Smaller Companies- 75000/-
My wife’s investment(which was 2L approx) was used for the marraige & therefore present valuation is Zero.
Health Insurance= Company’s health benefit (outdoor 50000/yearly and increasing as basic pay & DA increases + indoor treatment(no limit) but at CGHS rate ).
Wife’s Company provide 2 L mediclaim.
I have bought extra Health Insurance-Family Floater(Max Bupa Companion) of 15Lakh SA for a premium of 12000/yearly.
Life Insurance= NIL at present and planning to buy Term Plan of 1 Crore each for both of us.
My Goals are
1. House- within 4-5 years (Present Cost= 40-45 Lakh). I want to accumulate for the Down Payment, Interior furnishing & Registration cost and want to take loan for the rest amount.
2. Car(After 5 years)- Present Cost- 5 Lakh. (DP & rest Loan).
3. Dream Vacation(After 10 years i.e on our 10th Anniversary )- Present cost = 3 Lakh
4. Child Graduation (after 18 years)- Present cost = 5 Lakh
5.
Child Post Graduation (after 22 years)- Present cost = 10 Lakh.
6. Child Marraige (after 25 years)- Present Cost = 10 Lakh
7. Retirement (at 60, ie 31 years from now)- Assuming Present monthly need for a better lyf is 40000/- and life expectancy is 75 yrs.
Present Savings /Investment Planned & Executing (SIP/Monthly) starting from 1st Jan 2016:-
1. Employees Provident Fund (EPF)- 5900/- per month (my contribution) + 4700/- (employers contribution, the rest 1200 is going to pension fund) = 10600/- per month.) [This may help building some % of our retirement corpus].
2. AXIS LTE Fund- 5000/month (for Tax Saving & buiding some % of our Retirement corpus)
3. (A) Franklin India Prima Plus-
5000/month for goal of child education)
(B) HDFC Equity Fund- 5000/month for goal of Child Marriage.
4. Franklin India Smaller Companies- 3000/month
(for goals viz Dream Vacation/10th Anniverary Gift).
# 5. My wife will also invest in ELSS (Franklin Tax Shield)- 5000/month for Tax Saving, Which buiding some % of our Retirement corpus.
Since these goals are long term (ie >10 years) hence invested in equity for better return.
# Income= 45k + 30k = 75,000.
# Expense= 24k + 9k + 1k (health insurance) + 1k (term plan) = 35000 (approx).
# At present no liabilities.
# Investment= 24k in MF
# hence surplus= 75k – 35k – 24k = 16,000/-.
This surplus 16,000/- i am planning to put either in sweep tranfer account or will invest in debt MF to accumulate for House DP.
Also we will increase our MF SIP every year @5- 10%.
I want to know wheather we will be able to meet our goals??. Is our planning and investment in right track. One more thing is if, we purchase a flat with Loan, can we manage to have surplus amount to carry on our other investment to meet our other goals like child education & marriage (Assuming Vacation is not our priority goal)??
How should we plan & invest accordingly to achieve all our goals without any financial constraints?? Also kindly review the selection of Funds.
Looking for your valuable suggestions. Thank you.
Indrajit G & Rhea N
Kolkata, WB.
Indrajit-Please don’t share all your personal information on such public platform. Also, I can’t do individual planning in comment section of blog without knowing much about your history and all.
Ok. I request you to please delete my post. Thank you.
Dear sir,
good morning , i have following SIPs
1. HDFC midcap opp. fund : 2k
2. HDFC balanced fund : 1k
3. HDFC retirement saving plan :1k
for time horizon of at least 5 yrs. , also dipositing in a PPF 1.5 lacs per annumn , i want to contribute 3k more in another SIP .
Pls suggest where should i invest , should i increse my contribution to existing SIP or invest in another new SIP, also pls suggest my investment choices are correct or not .
Thanks in advance
Harishankar-Try to come out fast from equity as it is not good to invest in equity if your time horizon is less than 5 years.
hello sir,
thanks for your kind reply , kindly suggest the fund selection if my time horizon is 8-10 yrs ,also help me out for my extra contribution ( appx. 3k) in any SIP.
Thanks
Harishankar-One large cap fund and ond small and mid cap fund. Equity to debt in ratio of 60:40.
Dear Basu sir,
Thanks for your guidance
now i have decided to invest 25k per month with 60:40 ratio in equity and debt.
So i am ready to invest in
1. ICICI pru focussed bluechip fund(Large cap)
2. HDFC midcap opp. (Small & mid cap)
3. HDFC balanced fund
4. PPF (10k per month) as debt portfolio
My goal is 1Cr in next 14 years ,
please suggest my selection of funds are ok or not , also please suggest to invest rest 15k among these equity fund (amount ratio in these funds ) ,
Thanks sir.
Harishankar-Perfect, go ahead. No need to select fresh funds for your new investments. You can invest in same funds.
Fine sir,
pls suggest , i want to invest 15k (total) in below equity funds
1. ICICI pru focussed bluechip fund(Large cap)
2. HDFC midcap opp. (Small & mid cap)
3. HDFC balanced fund
should i invest 5k each or any ratio between them.
thanks
Harishankar-What is your timeframe?
sir,
my timeframe in 14 years for and i need 1cr appx.
Harishankar-Then go ahead.
Sir,
i want to invest 15k (total) in below equity funds, my time frame is 14 yrs. kindly suggest in what ratio should i invest in these funds .
1. ICICI pru focussed bluechip fund(Large cap)
2. HDFC midcap opp. (Small & mid cap)
3. HDFC balanced fund
should i invest 5k each or any ratio between them.
thanks
Harishankar-You can go ahead with funds. But make sure to have more exposure towards balanced fund so that your equity:debt must in ratio of 70:30.
Hello Sir,
Thanks for such a nice and informative article. I am 29 year old and want to invest around 25k per month by SIP.
I was thinking that I will do this SIP for next 2 years as after 2 years based on market condition I will decide to continue or opt out.
I have following shortlisting –
1) In Large Cap-
Franklin India Bluechip Fund direct growth: 5K
2) Large and Mid Cap-
ICICI Pru Value Discovery (G) : 5k
3) In Small/Mid Cap-
HDFC Midcap Opportunities Fund : 5k
4) Equity Oriented Balanced Fund-
HDFC Balanced Fund : 5k
5) SBI Magnum Multicap Fund (G) : 2k
Now for rest 3k , I have following options –
1. Equity Multi-Cap: UTI Opportunities Fund, Franklin India High-Growth Companies Fund.
2. DSP Black Rock Micro Cap OR HDFC Capital Builder – (G)
Which of the above I have to choose .
Also the way I am dividing my fund, is it fine ?
I also want to invest lump sump of 2 lacs. Kindly suggest should I continue to have FD for that 2 lac or its good idea to invest lump sump also in any of the fund ( in which I am not investing through SIP)
kindly suggest.
Richa-I think we discussed on this in our Facebook personal chat.
Hi, I am currently having equal SIP in HDFC Balanced Fund (G) and Sundaram SMILE Fund (G). Am considering inclusion of another SIP fund in the existing portfolio. timeframe is 7 years. Please suggest an alternative SIP fund or do you suggest that I continue with the existing funds and increase contributions. Thanks
Amit-Come out of Sundaram fund and continue with HDFC Balanced Fund. One fund is enough.
Sir,
i am planning to invest in Short term funds such as HDFC DHORT TERM UPPORTUNITIES FUND-G, need to know Does non-equity funds qualify as debt funds for the purpose of taxation and what would be taxation if redempt with 1 year.
Thanks and Regards,
ARVIND
Aravind-Non-equity mutual funds are taxed as per your tax slab if redemption is within 3 years (exactly like your Bank FDs).
Dear Sir,
I am 25 years old and started working 6 months back. I want to start investing in SIPs , I can spare upto 10k (amount will depend on your recommendation) every month and am looking for a 5 year investment term. How and where should I start?
Vani-If your time horizon is just 5 years, then stay away from equity investment.
Mr. Basuvishesh,
At the outset, thanks a ton for being out there and helping novice investors in developing their investment portfolio.
I am 23 years old. I can invest Rs.5000 via the SIP route in Mutual Funds. I’ll be redeeming the corpus in 12-15 months. Would you suggest investing in Birla Sunlife Medium Term plan? I felt the fund appropriate after reading the fact sheet and I believe that looking at my investment duration, this fund is appropriate (returns and exposure to Debt markets). Please share your two cents on this portfolio.
Thank you.
Nemish Zaveri
Apologies. I got the name wrong. Terrible mistake.
Nemish-Use Bank FD than any debt funds.
But I do not have the lump sum for a bank F.D.
Nemish-You can create FDs as low as the amount which is in normal SIP. If you need regular investment, then why not RD?
Hi Basavaraj,
I am 35yrs of age and currently. I need aroound 1Cr when i retire by 45yrs . Given that i have 10yrs for my retirement can you please advise how much i have to invest in mutual funds?
Currently I have started investment last month in SIP
i) SBI Blue Chip Fund – Rs 5000
2) Tata Balanced Fund -Rs 500
Santosh-You selected the fund and amount also. Then what doubt do you have? do you know how much you have to invest per month to achieve Rs.1 Cr within 10 years with expected return of 10%? It is around Rs.48,000 per month. Be realistic, there is no magic wand on this earth..
Hi Basavaraj
Thank you , i wanted to know the amount and as you said i should invest 48000 per month. one last question are the funds which i have selected are good or do you want me to continue with them or stop them and look into the funds which you have listed.Please let me know? Basically i want to know how to create a portoflio if i have to invest Rs 48000 per month to acheive my goal . I am already investing in 60K per anum PPF.
Santosh-These two are enough. But try to manage around 50% in equity and debt category to achieve that target.
Thank you For your Valuable Time and suggestion.
sir,
i have invested through since last 6 month through sip in following fund-
1. Sbi magnum midcap fund- RS 2000/-
2. Sbi pharma fund- RS1000/-
3. Sbi blue chip fund -Rs 500/-
4. Franklin india smaller companies fund- Rs 1000/-
5. Uti mid cap fund- Rs 1000/-
6. Tata balance fund- Rs 1000/-
sir plz suggest me is these are good for long term goal or need to change any of them later, i am also little bit risk taking holder my current age is 30 years , plz give your valuable suggestion……………
Koushik-Why two mid cap funds (SBI and UTI)? Retain one. I am not fan of any sector funds. So no comment on SBI Pharma. What about debt portfolio? I suggest to manage around 40% in debt and rest 60% ONLY in equity.
sir,
thanks for your valuable comment………….sir i already have a PPF account , i used to invest it periodically…is there any need of taking any debt fund in my folio at this moment………..if needed plz suggest which debt fund will be better for me to invest right now……….sir you don’t give any suggestion regarding existing sectoral fund in my folio……..besides these plz suggest rest of the fund selection is ok or not….
thanking you
Koushik-If PPF is matching your timeframe then consider it as debt portfolio. I already mentioned my view about sector fund and existing funds. I am not fan sector funds.
Hello Basavaraj,
This is Ninan John, and just enrolled into your blog. I’m 47 and want to start some SIPs of 4 k each for 4 funds. Lumpsum investment of 1 lak each for another 5 MF s also can be done. Timeframe of investment c an be for 7 to 8 years.
Requesting your advise.
Ninan John
Nitin-Why you need 4-5 mutual funds? You can invest in one fund like equity oriented mutual fund like HDFC Balanced Fund.
Ok, got it.Basavaraj.
1)You mean, I do the lump-sum investment in one fund like HDFC Balanced fund. I thought, I can take some risks in 1 or 2 Mid-cap funds.
2)What about SIPs….Please suggest.
Ninan-For both my answer is same. Keep it mind to manage equity:debt in the ratio of at least in 60:40.
Hi Basavaraj,
For Debt fund : Please suggest. I will need 2 good funds for SIP and 2 for Lump-sum.
Ninan-One short term debt fund is enough.
Dear Sir, I want to invest funds without much risk with decent returns annually, i.e. better than FDs.. I heard ICICI mutual fund balance advantage gives fixed 9% returns.. it is mentioned in your balanced funds list… So does this fund bear no risk even if stocks markets crash ? will I make 9% fixed returns come what may ? Also is this tax free returns ?
Thanks & Regards
Vivek
PS: Very nice site, very helpful
Vivek-First let me know the definition of RISK and DECENT RETURN. No mutual funds gives you GUARANTEED RETURNS. I think someone is misguiding you. Equity fund invested more than a year will be treated as tax free.
Sir,
what SHOULD BE THE minimum investment horizon for equity investments in India, i have checked growth of number of funds value almost doubled in 5 YEARS, why u desist others not to enter equity for time period of
5 years, please clarify.
Nishikant-Equity is meant for long term. Funds might given you HIGH return in 5 years term. But do remember that VOLATILITY is also HIGH. Hence, I suggest always a minimum period of 5 years.
Dear sir
I am 40 yrs and want to invest in mutual fund by SIP for an amount of 3 thousand now pls tell me which is the best mutual fund and I am ready to take risk and who to get mutual fund directly without any third party commission by applying online , pls guide me
Praveen-Can you define the meaning of RISK and also your timeframe?
Sir,
Whats yr take on HDFC Short Term Opportunities Fund(G)
Regard,
ARViND
Aravind-I already recommended for few.
Hi Basu, You posts are very helpful and I have recommended them to my office colleagues as well. I am 34 years old, and save upto Rs. 25000 post expenses (incl Home loan EMI). I am willing to invest this amount for retirement. Would you suggest me go for Mutual funds (Large cap, Balanced & Debt) or go for HDFC Click 2 Retire Plan. I am not sure what would be the return in HDFC Pension plan after 25 years. Please suggest.
Sarvesh-Stay away from readymade pension products. Buy term insurance at first to the tune of 15-20 times of your yearly income. Start investing in equity mutual funds for your long term goal. Select one large cap, one small and mid-cap fund. If your goal is more than 15 years, then use PPF as debt. Invest in equity and debt in the ratio of 60:40 (if your goal is more than 10 years or so).
Thanks Basu. I should have mentioned. I already have Max Life Term Insurance (1 crore), and I invest in PPF (1 lakh a year). So per your suggestion, I will NOT go with HDFC pension plan and start investing in MFs. However, I am now concerned with various charges that MF companies put on us like management charges, broker charges etc.
Is my concern valid or is it still worth go with MFs? Please suggest
Sarvesh-Even if they charge, it still within the maximum limit of 2.5%. They can’t charge more than that. You can save some expenses by investing in DIRECT plans. But do remember that these direct plans are exactly like online term insurance products. You have to take care of everything on your own. If you feel capable of doing that, then go ahead for DIRECT. Otherwise, through an adviser or agent of your choice.
Thank you. One last question on this thread. I don’t think I want invest time in doing DIRECT and instead have MF companies do that for me. My last question is – Can I expect return around 12-15% over 20 years of investment in Large,Mid and Small Cap as suggested by you. Thank you once again.
Sarvesh-If you dont want to do on your own, then I don’t think mutual fund companies are right for you. Choose the adviser of your area with whom you are comfortable. Yes, for long term equity investment, you can expect around 12% return.
Hi ,
I am doing SIP for the mentioned funds with a time horizon of 15 years
Franklin India Bluechip Fund – Direct – Growth – 4000
Franklin India Prima Plus Fund (G) – 4000
Reliance Equity OPP FUN (G) – 4000
ICICI Pru Balanced Fund (G) – 4000
Can you suggest any other fund to include .
Sumit Ghosh
Good Morning..
Whats yr take on HDFC Short Term Plan-G and also provide your valuable suggestions on if someone is running SIP’s is 7-8 funds keeping in mind Portoflio overlapping and also avoiding sector specific funds with investment horizon of 10-12 years.
Regards
ARVIND
Arvind-It is good fund with average maturity of around 2 years and credit quality risk of low. You can consider for your debt portfolio of over 3+ years goals.
Hi SIR,
I have started investment in below 4 funds through SIP(3000 each month till 15 years) from this month only.
MIRE EMERGING BLUE CHIP FUND
BIRLA SUN LIFE MNC FUND
FRANKLIN INDIA PRIMA PLUS
ICICI VALUE DISCOVERY
Need to invest 3000 in one more fund, Please provide your suggestion on above 4 funds also.
Thanks,
Balaji
Balaji-Why sector funds and why no debt portfolio?
Hi SIR,
Could you please suggest DEBT funds to invest.
Balaji-It is hard to say blindly (especially without knowing the time horizon).
SIR – I can wait for 15 years.
Balaji-Use PPF.
Hello sir,
What is your opinion about MIRE EMERGING BLUE CHIP FUND mid cap fund.
This fund is giving very high return compare to all other Mid cap fund in 1 ,2,3,4 and 5 year. CRISIL and Value research has given top rating for this fund. When i was comparing this with HDFC mid cap and UTI mid cap, it has beat both of them in last 5 year (every year).
Please suggest if we can invest in this fund.
Thanks & regards
Ramesh
Ramesh-It’s new fund (just around 5 years). We have to test the fund not in bull run but bearish. I don’t believe in star ratings or the short-term returns. Let it go through all cycles of market.
Hi Basavaraj, Thank you for the enlightening summary on investment options. I’m 25 yr old corporate employee earning around 25k per month, I would like to segregate 3.5 L lump some amount in to different funds, please guide me on this and also I can dedicate about 10-15k per month through SIP, please suggest on this.
Shreya-Without knowing your timeframe, how can I guide you?
Hi Basavaraj, my time frame would be 10-12 years. Please suggest I would go by your suggestion. Thank you
Shreya-If your goal is long term, then start investing in equity mutual funds. At the same time, try to build an emergency fund, buy term insurance (at least 15-20 times of your yearly income), buy health and accidental insurance. If these basics are fulfilled, then go for investment. Start investing in one large cap and one small and mid cap fund from above list. This must be around 60% to 70% of your total investable surplus. Rest 30% to 40% in debt products (I suggest to your PPF if your time horizon is 15+ years).
Dear Mr Basavaraj,
I want to invest 3o Lacs Rupees in equity and debt, and got clear idea about funds from your blogs. Many thanks for great efforts.
Pls suggest me should I opt for SIP breaking this amount of Rs 50,000 per month up to 6 years and from 7th year on wards paying same amount from my salary. Or the lum sum investment will be profitable considering present volatile market. My time period of investment is 25 years and I am 30 years old with 1o Lacs of salary per Annum . I have separate emergency funds of 6 Lacs with term insurance of 1.2 Cr and health insurance of 5 Lacs for my wife and 3 months old son.
Also pls guide me about top up amount deposit in SIP ??
Shishir-I suggest a lump sum. Your timeframe is long term. Don’t worry about current noise.
Thanks Mr Basu, kindly suggest the bifurcation for large cap, mid cap & Small cap with funds selection if possible..
Again many thanks for your support.
Shishir-First diversify your whole lump sum into debt and equity. It must be in range of 40:60. For debt, you can use short term debt funds. For equity, one large cap fund and one small and mid cap fund as I listed above are suffice. If possible you can add one more large and mid cap fund from above list.
Thank you Sir from your opinion..
Good Morning
I have SIPs running in three funds currently..Franklin india prima plus -Rs.2000, Franklin india high growth Cos fund-Rs.1000, and HDFC balanced fund-Rs.1000 all growth options with time frame of 8 to 10 years. Are the existing funds okay and is it okay if I add a HDFC midcap fund with the same investment and time frame?
Regards
Arvind
Aravind-Why two funds in same multi-cap category? Instead retain anyone Franklin Fund. Considering your timeframe, I suggest to infuse more towards HDFC Balanced rather than going for small and mid cap.
Hello Sir,
The Initial post on “top 10 best SIP mutual fund” in posted in Oct 2015. Whether the same still holds good or need any change since its 3 months ago. If still holds good, then i am planning to go with SIP. Please advise
Shanky-It still holds good.
Good Evening,
Thank you for providing such clear information and advice. This would be of a great help to many new investors who are very confused where to invest.
Anyway, my name is Abishek, 30 years, and I am a first time investor in Mutual funds.
Till now, my investments were primarily in LIC Insurance and PPF and regular Bank FD’s and RD’s.
I want to invest in mutual funds through SIP’s, and I can invest Rs.6000 every month (can increase investment amount in future)
My goal is to create long term wealth and time frame is 8 to 10 years.
Please advice :
————————-
Do I simply divide my investment amount across all 5 Fund Categories, or do you have any specific advice ?
—
Abishek
Abhishek-Start with a fund like equity-oriented balanced fund for Rs.4,000. Invest rest Rs.2,000 into short-term debt fund.
Sir,
i have invested in Franklin india prima plus -Rs.2000
Franklin india high growth Cos fund-Rs.1000
HDFC balanced fund-Rs.1000, please suggest what changes are required in my portfolio
Nishikant-I already replied to your latest comment. Please check it.
Dear Sir
I am 41 years old. I have the following MF’s at present
1) SBI FMCG – 2k/month
2) Reliance equity opportunities fund – 3k/month
3) Birla Sunlife frontline equity fund – 3k/month
4) Tata balanced fund regular plan growth – 3k/month
5) ICICI focussed bluechip – 3k/month
Kindly give your views regarding this. My waiting period is minimum 10 years.
I want to invest another 10-12k/month in various MF’s for a period of NOT less than 10 years. Kindly suggest me 5-6 other funds where I can invest.
Thanks and regards
Sid
Sid-First clear your dust bin which involves some sector fund (a risky in nature) and two funds in same category (large cap like ICICI and Birla). Then continue the funds for fresh investments too. No need to add more funds.
hello sir,
my monthly income is low (18000) ihave a lic premimum yearly rs–17000. i want to invest sip or other beneficial plan pls suggest me what is best for me sip or other age 32
thanks.
Sanju-I updated the list above. You can select them based on your goals and risk appetite.
Hi,
I have SIPs running of 1K each in three funds currently..ICICI prudential focussed bluechip equity fund, Tata Balanced Fund, and UTI Mid cap all growth options with time frame of 10 to 15 years. Are the existing funds okay and is it okay if I add a debt fund to these again with the same investment and time frame?
Anuradha
Anuradha-Funds are good and you can continue. But don’t invest all 100% into equity. Try to create around 30% of your portfolio into debt. Rest 70% in equity.
hello .
I would like to know your view for my existing investment .I have invested in MF for last 1 0 months in direct.pls check my portfolio and share your view whether it is good or not.
icici pru foucsd blue chip – 5000
idfc premier equity – 2000
hdfc midcap opportunites – 2000
axis longterm equity – 1000
Akash-Why two mid caps (IDFC and HDFC)?
Hi, I am currently having equal SIP in HDFC Balanced Fund (G) and Sundaram SMILE Fund (G). Am considering inclusion of another SIP fund in the existing portfolio. timeframe is 5-6 years. Please suggest an alternative SIP fund or do you suggest that I continue with the existing funds and increase contributions. Thanks
Amit-My suggestion is to come out SIP as equity not suites to your timeframe.
Dear Basu,
First of all I’m very glad and thankful for your expert analysis and helpful guidance being provided to all investors. I have gone through various analysis, comparisons and arrived at below portfolio to be created as monthly SIP for span of 10 years. Expecting 15-20% yield. Kindly let me know if below amounts per each category suits well or needs any modifications? Based on your heads-up I would like to proceed ahead or amend accordingly. Please help on this regards
Large Cap Fund ICICI PRU FOCUSED BLUECHIP EQUITY FUND 2,000.00
Large & Mid Cap FRANKLIN INDIA PRIMA PLUS FUND 1,500.00
Large & Mid Cap ICICI Prudential Value Discovery Fund 1,500.00
Mid & Small Cap FRANKLIN INDIA SMALLER COMPANIES FUND 1,500.00
Balanced Fund HDFC BALANCE FUND 1,500.00
Rajesh-Why two large and mid cap funds? One is enough.
Dear Basu,
Thanks for your reply. In such case, I will short list only one fund per category and contribute double the amount? How about below portfolio? Does it seem good for 10yrs of investment. Pls advise
Large Cap Fund ICICI PRU FOCUSED BLUECHIP EQUITY FUND 2,500.00
Multi Cap ICICI Prudential Value Discovery Fund 2,500.00
Mid & Small Cap FRANKLIN INDIA SMALLER COMPANIES FUND 1,500.00
Balanced Fund HDFC BALANCE FUND 1,500.00
Also I’m confused as to segregate 8,000 amount per month to be allocated under each category !! Do we need to apply more amount in Large cap and less amount in Small cap under SIP? Awaiting your valuable feedback bro.
Rajesh-My take Rs.2,000 in large cap, Rs.1,000 in multi cap, Rs.1,000 in small and mid cap. Rs.4,000 into Balanced Fund. More in balanced fund means 35% in debt category. It automatically creates 35% of Rs.4,000 as debt category. That is around Rs.1,500 into debt and rest Rs.6,500 into equity funds. You can go ahead with the short listed funds.
Thanks a lot for your precious advise and great help indeed. Kudos to your efforts Basu
Hi I’m looking at an SIP investment for over 20 years as a fixed investment. Which would be the best fund to invest on a long term basis which would yeild around 20% 30% returns (apologies if my Rate% are extremely high, but the objective is to invest on something which would yeild a max return on a long term basis.
Triya-Select one large cap, one small and mid-cap and along with that if possible one large and mid cap funds. Invest around 70% of your investable amount into these three funds. Rest 30% you can invest in PPF.
Ideal expectation for me from equity for long term is 12% (which is tax-free). Anything more than that is considered as gift or bonus).
i m having sbi blue chip fund (2000 sip), pl suggest me two more fund. thank u.
Vinod-Without knowing your timeframe, it is hard for me to guide. However, you can see my choices of funds from above list.
Hi sir,
please suggest that below funds are good for wealth creation for long time frame (10 years). Planning to start SIP in belwo funds..
UTI MNC Fund (G) – 1500 — DIVERSIFIED EQUITY
DSP-BR Micro Cap Fund – RP (G) – 1000 — MID CAP
My total funds are given below:-
Birla Sun Life Frontline Equity Fund (G) / SBI Blue Chip Fund (G) – 2000 — Long Term
ICICI Prudential Value Discovery Fund (G) – 1500 — DIVERSIFIED EQUITY
UTI MNC Fund (G) – 1500 — DIVERSIFIED EQUITY
DSP-BR Micro Cap Fund – RP (G) – 1000 — MID CAP
I need two suggestion from your end:-
1) Between Birla Sun Life Frontline Equity Fund (G) and SBI Blue Chip Fund (G) whicn one is good for investment???
2) How is the below funds??
UTI MNC Fund (G) – 1500 — DIVERSIFIED EQUITY
DSP-BR Micro Cap Fund – RP (G) – 1000 — MID CAP
Bittu-The UTI and DSPBR may be your choice based on star rating by few portal. I suggest you to stick Birla and ICICI. Don’t go for any sector specific or small cap funds (considering your holding period of investment). That too, I suggest to manage 60:40 into equity and debt.
Hi Sir,
I really happy with your suggestion as well as very thankful to you. Finally after understanding the MF, I decided to invest my 6000 rp in below three funds for time frame (10-15 yrs). Please have a look and give your valuable feedback. My plan is for better wealth creation and ready to take high risk.
Tata Balanced Fund – Regular Plan (G) — 3000 — Balance Fund
ICICI Prudential Value Discovery Fund(G) — 1500 — DIVERSIFIED EQUITY
HDFC Midcap Opportunities Fund (G) — 1500 — Small & MID CAP
Bittu-Go ahead. But try to add large cap fund.
I am currently investing in the following mutual funds through sip for long term > 15 years for mu son education. Pl give your valuable suggestions on the same.
UTI EQUITY FUND -1000
UTI MIDCAP FUND-1000
PPFAS LONGTERM VALUE FUND – 2000
Urmila-You can continue the funds. But try to have debt portfolio of around 30:70 in debt:equity.
Hi Sir,
I am 26 year old and its my time investment in mutual funds and I want to invest 6,000 INR every month I am looking for a long term investment horizon (15yrs), is my fund selection is proper
Birla Sun Life Frontline Equity Fund (G) – 1500 — Long Term
ICICI Pru Exp&Other Services-RP (G) – 2000 — DIVERSIFIED EQUITY
ICICI Prudential Value Discovery Fund (G) – 1500 — DIVERSIFIED EQUITY
SBI Magnum Multicap Fund (G) – 1000 — MID CAP
Plz guide me if anything need to modify in my funds.
Bittu-Go with Birla and ICICI Discovery fund. Along with that you can add equity-oriented balanced fund from above list. Manage around 60:40 portfolio between equity:debt.
Thanks for your kind reply. Actually I am looking for more return as well as ready to take more risk. As I seen the MID CAP funds and diversified funds are giving better returns. So I added SBI Magnum Multicap Fund (G) and ICICI Pru Exp&Other Services-RP (G) in my portfolio .
Hieee .i am a new investor .i planned to invest in
Large cap – birla sl frontline equity fund
Elss – axis long term equity fund
Balanced fund – tata balanced fund
Income fund -birla sunlife monthly income plan 2 wealth 25
All direct plans .
Are they good ? Should i start with them .want to invest 15000 as sip .
Thank u
My timeframe is 15 yrs .
Andwant to invest
5000
5000
2500
2500
As per above sequence
Mahesh-I already replied to your comment.
Hey sry. But i n not able to see ur msg .pls kindly advice again
Hello Basu
i am investing in
ICICI Bluechip fund 1500
ICICI pru Discovery fund 1000
BNP paribas long term for tax saving 1000
and also i am investing in
ICICI Prudential Money Market Fund – Direct Plan – Growth 2000
and also i invest LUMP SUM Time to time when i have excess money in ICICI Prudential Money Market Fund
I am also Thinking of investing in AXIS Long term ( 1000 ) for tax rebate with BNP Paribas.
Please tell me about my portfolio is there anything you want to change or add please tell me.
is Balanced fund is necessary for me if yes then which one?
and i want to increase my investment then in which fund i have to invest
Please guide me because i want to invest atleast for 15 years.
Shivani-Why can’t you continue in same BNP Paribas fund for tax saving? The missing part is debt portfolio, which you can invest either through balanced fund or creating a separate debt portfolio through debt funds or debt products like PPF. How much to have allocation to each asset class and fund is purely depends on your financial goals. Without knowing much on that part, it is hard for me to guide.
because personally i like AXIS long term fund and want to divide money in both of them for tax perspective.
and Is ICICI Prudential Money Market Fund – Direct Plan is not my debt class this is short term debt fund ?
if not then which fund i have to choose .
and i told you my allocations .
and in tax saving i want to increase upto 5000 rs
and in icici bluechip upto 2500 rs
and in icici value discovery upto 2000 rs
kindly guide me
right now my total investment per month in 5500 rs including short term debt fund
and want to increase upto 10000-12000 rs for long term
if my current short term debt fund is not sufficient then which one.
actually i invest in icici money market
please guide me.
Shivani-If I assume your goal is more than 10+ years, then split 70:30 into equity:debt.
Shivani-If you have personal inclination towards Axis, then go and invest in that fund. ICICI fund is liquid fund. Use this fund to park your liquid cash. For your debt portfolio, I suggest you to chose short term debt fund.
Hello basu
Thank you so much for your valuable feedback.
Please suggest me name of best short term debt fund I dnt know much about it.
And basu please clear me one thing you always said to kept one fund
Is choosing two funds instead of one tax fund is there any kind of disadvantage
Or
Because both the funds are of same category so one fund give me the same benefits as given by two.
And is axis long term fund has a capability of performing good in long term.
I want to go according to your suggestion because your knowledge and experience is more than novice like me.
Please tell me the proper reason behind choosing one
If there is not any disadvantage in choosing two then I will choose two otherwise one.
Shivani-You can go with funds like HDFC Short Term Fund or Franklin India Low Duration Fund. One fund in each category is enough. That is why I insist to hold one fund. If you invest in two funds but underlying portfolio is same, then whether it serves any purpose?
You mean portfolio. Overlap
Hi basu
Hope you are doing well.
can you suggest me one name among
franklin india low duration
and
HDFC short term fund
i am confuse among these two because i dnt know muchabout franklin company.
and in these two franklin fund ins oldest.
Kindly guide me
And BASU also i am investing in PPF . PPF is also Debt Investment
Is it necessory to add one Short term debt fund with PPF or PPf is sufficient.
Shivani-If your goal is matching the maturity period of PPF, then you can consider PPF alone. No need of short term debt fund.
Shivani-Whether your concern is fund or fund company?
both
Shivani-According to me fund matters more than fund company.
Hi sir,
Happy new year.I talked with u November 2014. And stared investing.I am investing in 4 funds.1000 In each fund through sip.after 14 months I come to know that all funds are not performing well .I need your help.my 4 funds are 1.UTI OPPORTUNITIES FUND 2.UTI MID CAP FUND 3.ICICI VALUE DISCOVERY FUND 4.ICICI FOCUSED BLUECHIP EQUITY FUND.
Q1.Will i continue all funds?.
Q2 .Stop investing and buy new funds?
Q3 .I want invest 2000 more.in which fund will I invest?
Plz suggest me.
Thanking you.
Dibyendu chakrabarty
Dibyendu-Equity is volatile in nature. Hence, I always suggest you to invest only if your goal is 5 years or more and that too with proper equity:debt ratio. If your investment goal is long term, then why you are worrying due to this short term negative trend? Funds may be showing negative due to current sluggish market. But it does not mean that you must come out. Stay invested and continue.
Thnx sir.I invest in all 4 funds for more than 15 years.
Q1.sir now I want to increase my investment 4000 to 6000.can you suggest me where I can invest these 2000 .I am interested on balance fund also
Dibyendu-You can use the same funds for fresh investments. For debt category, I suggest PPF (if your time horizon is around 15 years).
hello
I invest in SBI FMCG fund three years ago but at the moment there is no return except dividend ,i want to know should i stop SIP in this fund and withdraw money or i stop SIP and wait for budget because it is sector fund
please tell me is any good future of this fund or not
Nitish-What prompted you to invest in this fund? Budget or your financial goals? I suggest you to avoid such sector funds without knowing the basics of how the particular sector perform in future.
Ok thanks
Then I am withdrawing my money.
Actually when I start mf then I invested in I but later on I come to know avoid sector funds
I have
Icici bluechip
Value discovery
And BNP LONG term
What else fund I require in my portfolio either its debt fund or balanced fund please tell me the name as well
Nitish-Without knowing your goal time period, simply I can’t guide. Sorry no readymade solution. How you selected these funds?
Hi Sir,
I am very new in this area and planning to invest some amount in SIP . So I have selected few funds . Plz guide me whether my selection is correct or I need to modify it or need to reduce number of funds.
Goal :- To generate good wealth amount for future..
Time frame – 3 yr +
Current Investment – 6k (After 3 months it will be 10k)
Funds Name:-
ICICI Prudential Value Discovery Fund (G) – 1500
SBI Magnum Multicap Fund (G) – 1000
Birla Sun Life Frontline Equity Fund -Growth – 1500
Franklin India BLUECHIP FUND-GROWTH – 2000
Kumar-Equity is not suitable to your goal. Stay away.
Hi Sir,
Thanks for your good response. According to you I should not invest in equity funds then Can u please suggest me the name of good mutual sip funds with a better portfolio to achieve my goal by investing 6k p/m.
Kumar-Use short term debt funds if your time horizon is more than 3 years. Otherwise Bank FDs.
Thanks you so much for your reply. Actually I have plan to invest more that 3 year and definitely I will keep longer as long possible around (10-15 yrs). I am a beginner so initially I fixed time frame for 3 years. Once I will have some good idea about Mutual fund market, I will change time frame to 10-15 yrs. So I have a request you to please now review and portfolio and suggest me . If any modification is required provide me the name for that funds.
Kumar-There is a huge difference between setting your goal for 3 years to 10 years and then to 15 years. First set your mind NOW, and then jump into the well of EQUITY.
Sir
my name is rahul sharma i am thinking to start a sip or rs 1000 per months time horizon app rox 10 years
in which fund i start invest. or what is the procedure to start sip..
please guide me
Rahul-You can start with equity-oriented balanced fund from above list. You can chose an adviser of yoru choice or directly contact mutual fund company to invest in Mutual Funds.
Hi,
I am in confusion between ICICI Prudential Exports and Other Services Fund and Birla Sun Life MNC Fund for approx. 7 years time frame.
Which fund should I select between these two and why? Please guide me!
Many Thanks.
Sachin-I am against both as they are sector funds.
Thanks for your reply. As I want to allocate approx 10% to one of these fund then which one of these should I select.
And also please suggest me a good diversified fund to invest.
Instead of selecting 4 to 5 funds can I invest in one diversified fund? Please guide me!
Many Thanks.
Sachin-I am not following both the sectors. So I can’t recommend. For diversification, one large cap and one small and mid cap funds are enough.
I am Ankit Kumar working with Infrastructure company in Noida. I want to invest in Upto 4000/- which is best option for me. please give me all details. my no. is 9958966226. if possible plz call me.
Ankit-Without knowing your time period, it is hard to guide. Also, it is your need but not my need. Hence, why should I CALL?
Dear basu,
Great to read your blogs! Thanks for everything,
I am Kerala based Gulf NRI,46 age, back in year 2010 I invested in first mutual fund for my Retirement from UTI, then on never invested. I am not that tech savvy to buy online from other fund houses, Is it ok to invest in UTI’s other funds? I have not seen any time UTI funds getting priority in your list, since I am NRI and already hold a folio, Pls advise me to go with same fund house or consider other fund houses with best performing funds?
If ok with UTI suggest me two more funds, my time horizon is 7+ years to 15 years wants to invest 10k per month.
After reading your blog I have opened PPF in my state bank a/c. About my Insurance you already advised me in other article.
Thanks again
Ben-I am not fan of any particular fund house, but a well performing fund.
Yes sir!, Got your point ! Fund is important not fund house !!
As per your advice hold for 5+ years minimum in MF, if the best performing fund after 3 years not that good then change the fund or hold for long duration to reap benefits? I mean through SIP.
Thanks
Ben-If the fund is continuously (2-3 yrs) under performing, then you can switch to other funds.
Hi ,
I have started SIP with below mentioned funds as suggested by a advisor:
Axis Midcap fund – Rs 2000
ICICI Pru value discovery fund – Rs 2000
Franklin India High Growth Companies Fund – Rs 2000
Time frame of investment is 3 Years to 10 Years.
Please suggest if my portfolio is OK ?
Thank You.
Santosh
Santosh-There is a 7 years gap between your assumption. Be specific.
Hi Myself Pratik, Age – 28, Unmarried, earning around 40K/Monthly.
I have been investing from last 2 years and want to increase my investment so i have some question regarding the same.
Current Investment:
1) HDFC – Click to Invest policy – 60000 Yearly (Started in Dec 2014)
2) SIP – (Started in Dec 2014)
i) L&T Midcap – Growth – (2000/Month)
ii) HDFC Midcap opp fund – (2000/Month)
3) PPF – 30000 (Started in Dec 2014)
4) FD – 2 LAC
Question:
1) SIP
i) Shall i continue to invest in above 2 SIPs ?
ii) Should i switch to other funds ?
iii) Should i increase my amount in SIPs?
2) Shall i take any retirement plan ?
3) Shall i start investing in Mutual Funds?
Apart from my queries above please suggest other platform for investment based on my criteria.
Pratik-1) Why two funds of same category?
2) Don’t know your timeframe, hence hard to react.
3) It depends on your financial goals to select a product.
Thanks for your reply, please answer my following questions. I have not decided time frame but i am targeting 20-25 years.
1) Should i withdraw my amount in above 2 funds and switch to other funds then ? if yes then which one ?
2) Should i increase my amount in SIPs?
3) Which retirement plan or policy is good to take ?
4) Shall i start investing in Mutual Funds?
Pratik-1) Yes, and use HDFC Midcap Opp. 2) It depends on your ability to save and invest. 3) Sadly NONE. 4) It again depends on your goal. Blindly I can’t say or suggest.
Hi Sir ,
I have 20000 rupee per month to invest through SIP in the below category and my time frame is more than 15 Years(15+)
Large cap-20%(Equity)
Mid Cap-30%(Equity)
Diversified-20%(Equity)
Balanced-30% (Debt)
Equity: Debt =70:30
Is my portfolio balanced for 15 + years timeframe???
Thks
Tushar-YES.
Hi Sir ,
Just now I was going through all the blogs and found that somewhere you say that Equity :Debt should be in 60:40 and somewhere you say that Equity :Debt should be in 70:30.
Does it depend on individual time frame of investment???
whatever I understood after reading your suggestions, the individuals should follow the below approach
If time frame is 15+ then Equity :Debt= 70:30
If time frame is 10+ then Equity :Debt= 60:40
If time frame is 7+ then Equity :Debt= 50:50
Please correct if I am wrong somewhere
Thanks
Tushar-It is both based on an individual and timeframe. Yes, I agree with your ratios.
Hello Mr Basu,
I have just started investing in mutual funds through SIP,my time horizon is 5 to 7 years or more depending upon the situation at that time,kindly review my portfolio and give ur expert advice.
My present portfolio is:
Franklin india bluechip fund- 2k
ICICI pru value discovery – 5K
HDFC balanced Funds – 5K
HDFC Mid Cap opportunities funds – 5K
Tata Balanced fund-5k
Apart from above my investments are:
LIC – 24k per anum(for tax saving purpose)
PPF-1.5L
Insurance-30k p.a
Thanx
I will be getting Rs 50 lac on retirement in july 2016. I will be getting Rs 60,000 as monthly pension and I dont have any liability. I have a flat and no EMI will be pending. I want to invest 50% in LICs pension scheme for 15 lac and MIS for 9 lac (in myself and wife’s name). Rest I want to invest in mutual funds. More over I will be having surplus of 20,000 monthly after retirement for investing. Kindly suggest best SIP in 2016. I have a fair idea about market and I want to invest little amount in share market directly.
Kindly advise.
Natarajan-They are already listed above.
Hello Mr Basavraj,
I have just started investing in mutual funds through SIP.
I want to continue till 5 to 7 years or more,i just want to create wealth.
My portfolio is:
Franklin India blue chip fund-2K
ICICI pru value discovery – 5K
HDFC balanced Funds – 5K
HDFC Mid Cap opportunities funds – 5K
Tata Balanced fund-5k
other than this i m continuously investing in PPF to its maximum capacity and i have one LIC jeevan saral for tax saving purpose in which m giving 24k per anum.please review my portfolio and give ur expert suggetion.
Thanx
Abhilasha-One large cap and one equity-oriented balanced fund are enough.
sir i have just started in january 2016,so shall i opt out from hdfc mid cap,icici pru value discovery and tata fund?all of them having a lock in for 1 year or shall i continue for 3 years atleast and then can switch..m confused now 🙂 kindly guide.Thanx
Abhilasha-Better to discontinue. Who said there is a lock-in? It is due to taxation, people use to park for more than a year in equity funds. You keep the invested amount as it is in those funds. Once, you complete a year, then switch to existing retained funds.
Thank you sir ,will continue with existing funds for a year n then will again ask for ur advice..take care
Hello sir iam benhur from hyderabad. First time I want to do sip 5000 per month for 20 years which is th best one …….Thank you. …
Benhur-Select one large cap, one small and mid cap and start investing. Create debt:equity in ratio of 70:30.
Sir please suggest which funds…
Behnur-They are already listed above.
Hi Sir,
I am very new in mutual fund investment. I can invest 3000 per month for next 5-7 years.
Could you please suggest some fund!!!!
Hi Basavaraj,
I’m 36 year old and my salary is 100000 p.m. I’m new to mutual funds. Just started the SIP of Rs.15000 p.m. with the following portfolio
Birla SL Equity-G Rs. 3000
|
ICICI Pru Balanced Advantage Reg-G Rs. 2500
ICICI Pru Focused Bluechip Equity Reg-G Rs. 2000
|
ICICI Pru Value Discovery Reg-G Rs. 3000
SBI Magnum Global-G Rs. 2500
|
UTI Equity-G Rs. 2000
Please review and provide your valuable suggestions. If I want to increase my sip amount another 5k,should I have to go for other funds or in which of the above funds I can increase SIP.
Vicky-What is your timeframe and where is debt allocation?
My time frame is 15 years. Please suggest for debt allocation.
Vicky-Use PPF.
Hello Basu,
Please suggest the best liquid fund to invest.
My other investments are:
1) LIC Policies @10000 p.m.
2) PPF @1000 p.m.
3) insurance policy @10000 p.m. for 11 years.
Dear Mr. Basavraj,
I am 40 year old beginner in MF , working in Qatar and want start investments in SIP MFs starting from Jan 2016 for a period of 10 – years.
My long term goals are retirement and purchase a house. I can invest 20000 / month. Following are the funds that I have short listed.
1. Kotak Select Focus Fund – Regular Plan (G) – 1000
2. SBI Blue Chip Fund Direct (G) -5000
3. UTI Mid Cap Fund Direct (G) – 2000
4. UTI MNC Direct Fund (G) -5000
5. Axis Long Term Equity Fund-2000
6. SBI Short Term debt Direct Fund-3000
7. SBI Pharma Direct Fund (G) – 2000.
Awaiting your response.
Thanks & best regards
Pranav
Pranav-SBI Bluechip and UTI Mid Cap are suffice. Why you want to go for Axis? It is tax saving product. Stay away from any sector funds. Also try to invest Rs.12,000 into equity funds and rest Rs.8,000 into short-term debt fund.
Mr. Tonagatti,
I am 23 years old, with a monthly investment appetite of Rs. 5000 and Rs. 2000 (totalling to Rs.7000). I plan to invest Rs. 5000 as follows:
Rs.2500/– SBI Magnum Mid Cap and Rs.2500/– Franklin High Growth Companies as both these funds primarily and heavily invest in Equity markets, which is fine by me as I do not plan to redeem my units/funds till 2022. Coming to Rs.2000, I plan to look at investing this sum in a fund, which you could recommend, with an objective of short term redemption, lets say 2 years. Please suggest a fund for this short term commitment. And please share your two cents on my long term investment choice(s).
Thank you.
Nemish-Where is your debt portfolio for your Rs.5,000 investment? 100% in equity is a RISKY. Again, considering your timeframe, I don’t think small and mid cap suites to you. Think and decide. Regarding your Rs.2,000 investment, don’t enter into equity. Instead use Bank or Postal RDs.
Mr. Tonagatti,
Thank you for your reply. I’ll restructure my portfolio and include a debt instrument/ component. I’ll even increase my investment time frame from 2022 till 2027 (I can flex this).
Thank you.
Hi Sir,
I am very new in investing money in Mutual Funds/SIP , So Need some suggestion based on my goal which is mentioned below:-
After
2 yrs == 5 lkh (Marriage)
8 yr == 8 lkh (Buy Car)
20 yr == 50 lkh (Children Education)
30 yr == 5 cr (Retirement/buy home)
So basically I want to meet the above goal by investing money in SIP. So could you plz suggest me that how much minimum amount I should invest in SIP as well as which funds will be better for me..
My current age is 26 yr and currently I am in the position to save 6 k per month for next 5 month afterthat I can invest upto 25k because of some financial problem.
Kumar-It is hard to plan for your goals without knowing much about you.
which type of information is required..
Currently I am single and my monthly salary income is 50 k and I do not have any investment as well as insurance.
Kumar-Then first build your base of financial planning, like term insurance, health insurance, accidental insurance and emergency fund.
G’day Basavaraj
I am looking to invest for 3 years approx 40K pm. Could you recommend a split i.e large cap/medium etc and also the name of funds I should invest and why? Your response will be highly appreciated.
Jay-No equity for such short term. If your tenure is less than 3 years, then simply use FDs otherwise use short term FDs.
So what term should be good 5 or 7 years? for FD can you recommend please?
Jay-It must be beyond 5+ years. There is no such great difference when it comes to FD. Go with the bank where you already have savings account.
Thanks I will invest in Sip.
Returns in FD are less than 9%.
Can you recommend please for 5 yrs per month 40k investment . Your direction would be highly appreciated.
Jay-If your holding period is more than 5 years, then go for short term debt funds also.
Hi Basavraj,
I am totally new to Mutual Funds/SIP but I am planning to invent Rs.10000 every month through SIP. Based on your post, I am planning to invest as below:
Let me know if I should go ahead. Time horizon for investment is more than 10 years
MY SIP Portfolio:
Franklin India Blue Chip Fund (G) – 2000
ICICI Pru Value Discovey Fund (G) – 2000
HDFC Mid Cap Opp Fund (G) – 2000
HDFC Balanced Fund – 4000
Awaiting your response
Thanks!
Kapil Mohan
Kapil-Go ahead.
Hi Sir,
I am planning to invest 10000 per month
2000- Franklin India blue chip fund
2000- uti mid cap
2000- Icici pru value discovery
4000- Icici Pru balanced fund
Equity: debit is 60:40
i am considering balanced fund as a debit .
Time frame is more than 12 years
Could you please review my portfolio once and share your thought on the same.
Thanks in advance
Manoj-Go ahead.
Dear Sir
Good day
I have seven mutual fund schemes in my portfolio and now I realizing that holding too many fund is not a wise decision I made a mistake by investing in many funds. I want to restrict myself to maximum four mutual funds. Which fund should I continue from below list, time horizon is 15 year.
1. Birla Sunlife Frontline Equity
2. UTI Opportunities
3. Mirae Asset India Opportunities
4. Franklin India Prima Plus
5. ICICI Value Discovery
6. HDFC Mid Cap Opportunities
7. Mirae Asset Emerging Bluechip
Abhay-Birla, Franklin or ICICI, HDFC.
Do I need separate large cap fund (BSL Frontline Equity ) as there is Prima Plus Fund which is having 78% allocation towards large cap companies. Or Can I replace large cap fund with HDFC Balanced Fund.
Thanks
Abhay-If overlapping is too much, then you have to come out of anyone fund.
BSL Frontline Equity and Prima Plus having 46 % overlap. Shall I continue with both fund.
I one of article Mr. Anoop Bhaskar of UIT mentioned that you have to invest more in equities when P/E ratio is less, could you elaborate what he want to say, how we will know PE ratio low or high.
Thanks
Abhay-Better to stick with BSL Frontline. Anoop pointing PE based investment. But the drawback is PE is a lagging indicator. He may be pointing this when about to launch PE based funds. In my view, instead of concentrating on PE based investment, stick to debt:equity portfolio (for simplification) based on your time horizon.
Guys
Are there any one in this group who have experienced positive returns in staying invested in large cap and balanced mutual funds for at least 5 -10 years. Please share your experience.
Ajith-There are many, including me. Let me know why you felt so?
Dear sir,
It was good to read your article and very informative too. I am a new investor, and would like to begin investing in mutual funds. I am looking at having two investments, one for a duration of 5 years and one for a duration of 10 years. What sort of mutual funds should I go for? Which ones should I go for in case of a 5 year investment plan and for a 10 year investment plan? Your advice will be appreciated.
Nkl-Stay away from equity if your time horizon is 5 years. Regarding, 10 years of investment, you can start with equity oriented balanced fund.
Hi Basavaraj,
Have you written any blogs on debt mutual funds (on the similar line of this blog on equity mutual funds)? If yes, then please let me know the link of the same.
I guess its little hard to understand debt MFs, unlike equity MFs.
It would be great if you can throw some light on this, just to make us understand debt MFs in simple terms.
Thanks.
Mahesh-It is not possible to write and list as above. Because debt mutual funds are complex products. However, I will try to do that.
Sir,
I am investing Rs.2000 every month through SIP in Reliance Equity opportunities fund Growth Optionfrom last 13 months but always the fund value is less than the invested amount so please suggest whether to come out of the fund or still continue in this fund.Time horizon for investment is more than 10 years.If u suggest to come out of it than which fund will be the better option.
MY SIP Portfolio:
ICICI Focused Blue chip-Rs.2K
HDFC Top 200-RS.2K
Reliance Equity Opportunities-Rs.2K
Awaiting your response
Thanks. Suraj
Suraj-What prompted you to invest in this fund?
Sir,
As per your predicted Top 10 Best SIP Mutual Funds to invest in India in 2015 list I have picked one fund (Reliance Equity Opportunities Fund Growth).Should I continue with this fund??
Thank u.
Regards.
Suraj
Suraj-Yes.
Hi Basu,
First of all a very Happy New Year, your blogs are precise and easy to understand.
Can I request you to write something on Sector Funds ? Is it wise to invest in Sector Funds for time horizon of 10+ years ?
Regards,
Shishir
Shishir-Sector funds are riskier than diversified funds. We invest in mutual funds to diversify risk. Also, we don’t know which sector will perform next. Hence, I am not a fan of sector fund. Avoid sector funds.
Thanks Basu !!!
Hello
After reading your blogs Started PPF, planning for term insurance and health plan soon, started surrendering LIC policies. Better late than never???!!! 🙂
Thanks for everything.
Ravindra-Great to know your achievements 🙂
Hello Basu,
From past 6-7 months following your blog, Thanks for giving me Gnyan (enlighten).I am now upgraded from only LIC and FD to mutual funds too. This year I will start to invest but few queries and suggestions need from you.
Me from small town and have UTI agent and Axis bank who are always behind me for investment. For direct investment what is the way Karvy or Fund house?
To start with I have decided to Put in UTI (Haha… like LIC) as SIP in UTI Equty and Mid cap for more than 5-10 years 3k each, Pls advice.
My other query is what if I stopped SIP after 5 years but without withdrawing accumulated money for another 5 years, then still the investment grows?
Thanks again Basu
Ravindra-No need to worry about service issues. Recently MF Utility started offering DIRECT plans online. You can use that platform and start investment. Nowadays distance does not matters. Regarding your investments, I suggest you to include one large cap fund for Rs.2,000 and one equity-oriented balanced fund for Rs.4,000 (this serves the debt:equity allocation). Otherwise, use one large cap and one small and mid-cap from above fund and different short-term debt fund for your debt allocation. Make sure that your allocation between equity:debt must in ratio of 60:40. Regarding your SIP doubt, yes, after stopping your SIP, the investment will grow as usual. You no need to worry.
Mr. Basu
What about UTI Equity fund and Mid cap funds? shall I go ahead and invest as these are star rated in many web portals, moreover accessibility of locally available agent, if any service needed and its my first MF entry. Plz. advice.
Is it ok to invest in same fund house or has to be diversified too…
Thanks again
Ravinder-You can go ahead with these two funds. But do remember that, don’t rely on these star ratings. What if they change? Will you change funds as frequent as they change star ratings? There is no logic in diversifying among fund houses.
Hi
I have started investing in the below mutual funds monthly and have a time frame of 10 years. I want to invest 10000 more monthly. Can you advice where i can put that amount
SBI Magnum Mid Cap : 7500
DSP BR Micro cap fund: 17500
UTI MNC Fund: 10000
Franklin Templeton High Growth Co : 7500
ICICI Pru Value Discovery Fund: 7500
Thanks
AKS
AKS-Where is your debt portfolio? Use SBI and ICICI funds for your fresh investments. I am not a fan of sector funds. So no comment on UTI MNC Fund. Continue DSPBR and Franklin.
Hi Mr.Basu,
Thanks for your response. Actually I have invested lumpsum amount of 10 Lakh between SBI Magnum Gilt Long term and Short term fund with a time horizon of 5 – 7 years. Do you think that would take care of the debt portion and I could invest the fresh investment in equities or do you still suggest to have the fresh investment in debt portion.
Regards.
AKS-When it comes to debt, try to stick to short-term funds than any gilt or income. Because they are equally volatile in nature like equity.
Thanks a lot Mr. Basu . I did not realize that Gilt funds were that volatile.
Could you please suggest a few good debt funds where I could slowly start moving the investments.
Regards
AKS-Chose short term or ultra short term debt funds where duration is low and credit quality is high.
Hi Mr. Basu,
As suggested by you I am planning to move the 10 Lakhs from Gilt fund to other debt funds. Among the below two funds which one do you suggest i should choose or do you think i could put 50% each in both the below funds.
SBI Short Term Debt Fund
SBI Ultra Short Term Debt Fund
Thanks
AKS
AKS-How you selected these two funds?
Hi Mr. Basu,
I do not have much idea on the Debt funds. My Gilt funds are in SBI so was looking for some good debt funds in the same fund house so that i could do the switch.
Could you please advice few debt funds and how much i could put in those funds for the 10 Lakh in the SBI fund house. I am looking for a 3-5 yr time frame.
Thanks
AKS-Why so much attachment to SBI AMC?
Dear Sir,
I wish to invest a sum of Rs.3000/- per month for a period of 10 years. Pls suggest a portfolio for investing via SIP route pls.
Regards,
Satish Kumar
Satesh-Use equity oriented balanced fund.
Hi Basu,
Firstly, I think its great fowllowing you and it really helps first time investors like me to invest and hopefully have a great future retired life . My questions please – currently my SIP for 8 k is the following :
Franklin India High Growth Compaines Fund – 2k, Franklin India Smaller Compaines Fund – 2k, HDFC Top 200 -2k and ICICI Prudential Focused Bluechip Equity Fund – 2k ,
1) I would like to invest another 12k in SIP hopefully for another 5-7 years – which funds would you recommend 2k each .
2) I would also want to buy some on time Mutual funds worth total 2lac which ones do you recommend 60:40 Euity to Debt ,
Thank you in advance
Vilas-Continue in existing funds but you missed the debt part. So use short term debt funds. This recommendation is for investment of more than 5+ years. I don’t know how long you hold the lump sum. So I can’t recommend any product.
Thank you , I will invest about 6 k in Debt funds that you have recommened, my horizon for lump sum is 5 – 7 years and have decided to put about 2 lacs every year
Hello Mr.Basu,
I am 30 yr old and have just started investing in SIPs. I have taken following MF for the period of 3 years. Please suggest one more MF to invest and your feedback on the funds taken.
ICICI pru value discovery – 5K
HDFC balanced Funds – 5K
HDFC Mid Cap opportunities funds – 5K
Thank you,
Tushar
Tushar-Funds are good and you can continue. But where is large cap fund and also debt portfolio?
Thanx for ur prompt reply sir,
Kindly suggest me one large cap fund.
for increasing my debt folio shall i take tata balanced fund for 5k per month.
Thanx
Tushar-You can select from above list. Yes, you can use Tata Balanced Fund.
Sir tata balance fund regular(G) or tata balance fund direct plan (G)
Tushar-Regular or Direct is depends on you. If you are able to handle portfolio and service issues of your funds, then go ahead for direct. Otherwise, go with regular funds.
Hello sir as per ur recomendation i have take tata balanced fund today.Now my current portfolio is:
ICICI pru value discovery – 5K
HDFC balanced Funds – 5K
HDFC Mid Cap opportunities funds – 5K
Tata Balanced fund-5k
Kindly suggest do i need to add any other fund..i can take one franklin fund if u suggest.I can continue these investments for 3-5 yrs or more.I have just started in 2016
Thanx
Tushar-Two Balanced Funds???? Also, equity investment for just 3-5 years timeframe? I never advice this.
Hello Sir,
I have just started investing in these funds so I’ll continue in equities for 7 yrs. For the starting I said 3-5 yrs. Also what should i do with two balanced funds now??
Tushar-Retain one.
Hi,
Currently i am 25 year old and I am planning to invest in SIP mutual funds. The amount to which i want to start with is Rs. 5000 per month. I am planning to invest the money for around 10 years. Can you please suggest me how to start with and which are the best mutual funds to invest for long duration?
Thanks
Ashish-Go with above selected one equity oriented balanced fund.
Hi Basavaraj,
I have a doubt regarding your categorization of funds.
As I saw elsewhere that both Frankline India Prima Fund and HDFC Mid-cap Opportunities Fund have been categorized as “Mid Cap”, whereas you have divided them into “Large and Mid Cap” and “Small and Mid Cap”, respectively in the list.
I presume that it could be because of their portfolio allocation. Am I right?
I also would like to understand that suppose I were to create a portfolio, shall I consider both the funds or either one should do?
Thanks.
Mahesh-The above said large and mid cap funds are also be considered as multi-cap fund. So they have mandate to switch and they do it according to their research. You can consider both or single. But check the overlapping. If it more, then sticking to one is best.
Hi Sir,
Here is SIP portfolio i am planning to invest 16000 for time horizon of 7 to 10 years. Please advice me if my portfolio is balanced and in case you suggest to add/remove
any fund or modify amount which I am investing,
Large Cap:
1) SBI Blue Chip Fund (G) Growth – Rs 4000 SIP
2) Birla Sun Life Frontline Equity Fund (G) – Rs2000 Sip
Balance Fund:
3) Tata Balanced Fund – Growth – Rs 8000 SIP
midcap fund
4) DSP-BR Micro Cap Fund – RP (G) 2000
Thanks in advance.
param
Param-One large cap and a balanced fund is enough. Manage equity to debt in ratio of 50:50.
Hi Basavaraj,
I have 1L(One lakh) rupees, i want to invest in mutual funds, it’s only for better returns compare to bank FD.
So please give me better mutual fund option to invest this amount and my locking period would be 3 years.
Regards,
K.Sathiya
Sathiya-If your tenure is just 3 years, then DON”T ENTER INTO EQUITY.
Hi Basavaraj,
Here is my current SIP portfolio. I have to investment horizon of 5 years +.
Diversified fund:
1) ICICI Prudential Exports and Other Services Fund – Growth – Rs 4000 SIP
2) Diversified fund(Icici pru value discovery fund) – Growth – Rs 4000 SiP
Small and Midcap Fund:
3) CANARA ROBECO EMERGING EQUITIES – GROWTH – Rs 2000 SIP
Large Cap:
5) SBI Blue Chip Fund (G) Growth – Rs 4000 SIP
6) Birla Sun Life Frontline Equity Fund (G) – Rs2000 Sip
Balance Fund:
6) Tata Balanced Fund – Growth – Rs 8000 SIP
Please advice me if my portfolio is balanced and in case you suggest to add/remove any fund or modify amount which I am investing,
Thanks in advance.
Dilip
Dilip-I don’t think sector or small cap funds (ICICI Pru Exports and Other Services and Canara Funds) are suitable to your time horizon. Stick to one large cap and a balanced fund. That’s enough.
Hello Basu
I am new to mutual funds, can you clarify how this return percentage is calculated?
1. Is it based on simple calculations or compound calculations
2. What does this percentage mentioned for 3yrs / 5yrs means, does it means year on year return or it means simple returns of x% after 5yrs
regards
Dheeraj-1) It is compounding if the tenure is more than a year. Otherwise an absolute return.
2) It is yearly compounding growth.
Hi Basu,
Which is good Franklin India Blue chip fund(G) or Icici Pru Foccussed Bluechip Fund(G)
See many people investing in Icici rather than Franklin and see Franklin as the oldest fund established in ’93 compared to Icici,
Please clarify
Ajith-I am personally fan of Franklin.
Hi Basu,
I want to invest in MF 5K per month my reason to invest is to get the rebate in tax
pls suggest
my planning to invest for 3-5nyear
Rohit-Don’t enter into equity.
Dear Sir
Thanks for providing nice article. I am 49 years old. From Last couple of yearsI started investing in MF through SIP route. I am planing to invest up rginto 2025) to generate corpus. My details are
Fund amount starting date
1. BSL top 100 2000/ April, 2015
2. ICICI pru top 100 1500/ July 2014
3.HDFC top 200 2000/ March 2011
4. SBI Blue chip 2000 July 2015
5. ICICI pru focussed blue chip 2500/ Feb 2015
6. L&T emerging business fund 2000/ May 2014
7. HDFC mid cap oppor 3000/ April 2015
8. Reliance small cap 2000/ Oct 2010
9. Sundaram select mid cap 1500/ April 2011
10. DSP micro cap 2000/ April 2011
11. ICICI export & other services 3500/ Nov 2015
12. ICICI value discovery fund 3000/ April 2013
13. Reliance equity opportunity 4200/ July 2010
14. SBI contra 2000/ July 2011
15. FRANKLIN high growth company 2000/ Oct 2015
Please comment about the selection of funds. Are the no of funds more so that performance may be poor. What will be expected amount in 2025 so that I can plain for children (2) education and marriage.
Hoping your early response.
Kumar D
Kumar-Just churn your portfolio to maximum of 2-3 funds.
Hi Sir,
I am planning to invest 10000 per month through sip.
2000- Franklin India blue chip fund
3000- Hdfc mid cap
2000- Franklin India prima plus fund( diversified)
3000- Icici Pru balanced fund
As per your suggestion in some other blog, I am also maintaing equity: debit as 70:30
Could you please review it once and give your valuable feedback
Do I need to increase debit portion or 30% debit is ok??
Thanks in advance
Neha-Funds are good and continue. If your time horizon is more than 10 years, then 70:30 is aggressive. If you don’t want that, then stick to 60:40.
Thanks for a quick response sir.
Yes my timeframe is 12-14 years. should I continue the funds in equity: debit as 70:30???
Neha-Yes, you can.
Hi Sir ,
As you suggested some days back that 70:30 is an aggressive approach. Just now I was thinking that balanced fund is not a pure debut fund .
So if invest in 70:30 (large, small or diversified : Balanced) , then it means that my actual portion between equity : debit is around 85:15 as balanced is not a pure debit fund.
Am I right sir???
To make a Moderate Portfolio , shall I invest more amount in balanced fund??
Would be fine if I invest the funds in the below portion
20% large
20% Mid cap
20% Diversified
40% balanced
Awaiting for your valuable response
Thanks
Neha-Yes, you have to either infuse more into balanced fund or separate debt portfolio that makes to around 30% to 40% in debt.
Hi Sir,
Thanks for such a prompt response.
If I invest 40% of my total investment in balanced fund then would it make my portfolio moderate??
I only want to invest in mutual funds, do not have any other debt portfolio except PF
Thanks
Neha-Yes, you can do so. In fact the beauty of equity-oriented balanced funds are that they provide tax free debt exposure.
Thanks a lot sir!!!!
hi,
i am investing 5000 in the following funds since 8 months
SBI BLUE CHIP FUND – REGULAR PLAN – GROWTH
ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – REGULAR PLAN – GROWTH
HDFC MID CAP OPPORTUNITIES FUND – GROWTH
Franklin India TAXSHIELD GROWTH
Franklin India High Growth Companies Fund GROWTH
AXIS LONG TERM EQUITY FUND – GROWTH PLAN
Franklin India Smaller Companies Fund GROWTH
ICICI PRUDENTIAL BALANCED ADVANTAGE FUND- REGULAR PLAN – GROWTH
ICICI PRUDENTIAL VALUE DISCOVERY FUND – REGULAR PLAN – GROWTH
i also have 50000 in these 3 funds
ICICI PRUDENTIAL CAPITAL PROTECTION FUND SERIES VI -1100 DAYS PLAN B CUMULATIVE
HDFC CAPITAL PROTECTION ORIENTED FUND 36M JUNE 2014 – SERIES II – REGULAR – GROWTH
are these funds ok or i need to switch to any other funds
Nishita-Read my comments and above post. Retain only 3-4 funds.
Dear Sir
Thanks for your prompt reply. Please elaborate.
Kumar
Hi Sir, First of all , Wish you a very new year.
My concern is related to make a balanced portfolio.
I am investing 10000 in the below porportion.
1- 20 % Large cap fund( Icici pru focused bluechip fund)
2- 30% Mid cap fund(Uti mid cap fund)
3- 30% Diversified fund(Icici pru value discovery fund)
4- 20% Balanced fund( Hdfc balanced fund)
Should i continue invest in the same ratio???
If any change is required , please share your thought and suggestions
Jitendra-Funds are good. But when you say balanced portfolio, then try to infuse more towards debt (either by having more investment in balanced fund or investing in separate debt product).
Thanks a lot Sir.Really nice suggestion
Hi Basu,
I came across your website recently. It is very nice and explains the things in a simplified manner. Great initiative!!!!!!
Please have a look into my portfolio
I have started 3 MFs monthly with a horizon of 15 years.
ICICI Pru Focused Bluechip Equity Reg-G-Rs.7000
SBI Magnum Midcap-G-Rs.7000
DSPBR Micro Cap Reg-G-Rs-6000
And I have a PPF account as well.
Kindly give your valuable suggestions regarding my portfolio, and any adddition/deletion as well
Many thanks
Rahul-Funds are good and you can continue. But try to balance between equity:PPF in the ratio of 70:30 or 60:40.
Thanks a lot. 🙂
My time frame is 13-15 years.
Please find the fund details.
1- 20 % Large cap fund
(Icici prudential focused bluechip)
2- 30% Mid cap fund
(Uti mid cap fund)
3- 30% Diversified fund
(Icici prudential value discovery fund)
4- 20% Balanced fund
(Hdfc balanced fund)
Should i continue invest in the same ratio???
If any change is required , please share your thought and suggestions
Thanks in advance
itendra-Funds are good. But when you say balanced portfolio, then try to infuse more towards debt (either by having more investment in balanced fund or investing in separate debt product).
Hello Sir,
Should i invest 500 Rs per month on all above listed MF?
Thanks,
Mahesh
Mahesh-Yes.
Hi Mahesh,
Just an advise, For small amount of 500 Rs , you don’t need all of those MF, just pick one Balanced or LargeCap fund.
Kamal-Good point 🙂
Hi Basu,
I am investing 1000 rupees each in HDFC mid cap,HDFC Balanced fund,ICICI pru focussed blue chip ..
All are direct growth plans
I knew the differnce between Direct plan and Regular plan
Direct plan: Investing money in Mutual funds with out distributor intervention
Regular Plan: Investing money through Distributor
Here my question is here
Will Direct,regular plans give same returns or any deviation?
Raj-Returns will be same, but you can expect around 0.5% to 1% higher return in direct as cost of direct is less.
Hi Basavaraj,
I plan to invest in 4 MFs as per your advice (1 Large, 1 L & M, 1 M and 1 Balanced). I am a new bee to MF, when do I need to pay tax on these investments ? Do I need to pay when I buy or sell ? There are different type of taxes Long term, short term so what should I know prior to buying this MFs so I can plan better.
I am thinking about an investment horizon of 10 to 15 years.
Thanks for your help
M.G. Annad
Anand-You no need to pay the tax while investing. However, if you withdraw your investment within a year, then equity mutual funds will be taxed according to your tax slab. If your holding period is more than a year, then it is tax-free. Remember that, these rules are only for equity and equity-oriented balanced funds, but not for debt funds.
Dear sir, I am 37 yr old I want to start invest in mutual fund for 10 yrs
Sir, will you please tell me how can I invest in these mutual fund & are the following funds right choice to me
1 ICICI focus bluechip g rowth direct
2 hdfc midcap fund
Thanks in advance.
Harmohan-Yes, go ahead.
Hello Sir,
Thanks for sharing your views/suggestions on Top 10 MFs for 2016. I have been investing for last two to three years on both ICICI Focussed bluechip – growth -direct – 5K per month and IDFC Premier equity – growth -direct – 5k per month, would like to start another 10 K investment on two more funds for the time frame of 15 years.
Here are my queries:
1. should i continue my existing investments with IDFC and ICICI? if not pl suggest the alternatives
2. your views on choosing two other funds from multicap or mid cap to start new investments, with fund names
3. i have dis continued HDFC Top 200 some time back, should i continue it now or transfer the money to some other fund
4. what is the suggestion to rebalance the portfolio, particularly things to be considered while moving from one fund to other (should we withdraw at once and invest into the same time or should follow STP or SWP?
thanks,
Ganesan
Ganesan-Continue with existing funds and add one small and mid cap fund from above list. While switching, it must be one go than STP or SWP.
Hi Basu,
Currently I am investing in 8000/- rupees monthly in equity mutual fund..
1) HDFC Mid cap oppotunity fund -Direct plan (G) growth (3000/- monthly)
2) ICICI prudential value discovery fund Direct plan (G) (3000/- monthly)
3) AXIS bank long term equity fund – growth (2000/- monthly)
Please suggest me any 2-3 good equity funds to invest 3000/- rupees. So that my investment portfolio should be good. And now my planning to in these sip fund
1) Birla sunlife frontline equity fund – Rs 20000/month – LARGE cap
2) L&T prudence fund OR HDFC balancd fund – Rs 1000/month- BALANCED fund
Bikash-You can include Birla and HDFC fund for your fresh investments.
Hi Basu,
I want to invest 5000/- ruppes monthly in equity mutual fund..
currenly i am investing 3000/- in below mentioned equity funds with your suggestions.
1) HDFC Mid cap oppotunity fund -Direct growth (1000/- monthly)
2) HDFC Balanced fund – Direct growth (1000/- monthly)
3) ICICI Pru Focussed Blue chip – Direct growth (1000/- monthly)
Please suggest me any two good equity funds to invest 2000/- ruppes.
(1000/- in one fund and another 1000/- in another fund)?
Raj-No more funds required. You can disburse the fresh investment in same old funds and continue.
I have a few general / technical questions related to mutual funds:
1) Is there a way to find out PE ratio of a MF? MF is similar to index (agg of stocks) and index has a PE ratio. I want to know how one comes to know if this MF is expensive?
2) Where can I check standard deviation in MF? Preferably year or year std dev.
3) What is a high beta and a low beta fund?
4) When a MF has international stocks how is it done (Eg: PPFAS mf invests in Google)? I mean how do they handle currency exchange,Tax in other country, etc?
5) Dividends of MF – Do they have to pay Dividend distribution tax to govt? How do they take it from unit holders?
6) MFs invest in stocks. Some stocks give dividends. What happens to those dividends?
Rahul-1) You can use the fact sheet of MF to find out the PE.
2) Same as above or some online portals like valueresearchonline or morningstar.
3) High beta stands for higher risk than the index they follow. They may generate the good return during upward trend. But during market fall, they fall with same degree. So actually beta is a measure of risk with respect to index they follow.
4) It is purely their headache of managing. Why I have to worry? We have to worry only when it is not performing well compare to stocks it is holding.
5) Yes, they have to pay. They distribute the amount post such dividend tax payout. Hence, it is tax free in investors hand.
6) It will be considered in NAV calculation.
Thanks for the answers. Appreciate it.
Hi,
I am new to MF and thinking about investing 10K/month (3-years) through SIP.
My goal is to get good returns on approx 3-3.5 years from now.
Very nice article to explain about MF investments.
I am thinking about investing 60% of my money into equity funds and 40% into some small cap funds to get good return in short term.
I am ready to take a risk on 20-30% of my monthly invested amount (2.5k/month approx) to give me a good return in short term period(say about an year)
with my above expectations Can you please suggest few good funds to build my Portfolio and amount that needs to be going into each fund.
Avi-No equity if your time horizon is less than 5 years.
Thanks Basu,
so can you please suggest few fund names other than equity which will give best result in next 3 years .
Will try to invest 5k/month for 3 years in non equity funds and remaining 5k in equity or hybrid funds for more than 5 years.
Avi-I am against equity investment if your time horizon is less than 5 years.
Hi Basavaraj,
Here is my current SIP portfolio. I have to investment horizon of 20 years +.
Diversified fund:
1) Franklin India High Growth Companies Fund – Growth – Rs 2000 SIP
2) ICICI Prudential Exports and Other Services Fund – Growth – Rs 200 SIP
Small and Midcap Fund:
3) CANARA ROBECO EMERGING EQUITIES – GROWTH – Rs 2000 SIP
Debt fund:
4) Birla Sun Life Short Term Opportunities Fund – Retail – Growth – Rs 2000 SIP
Large Cap:
5) Franklin India Opportunity Fund – Growth – Rs 2000 SIP
Balance Fund:
6) Tata Balanced Fund – Growth – Rs 2000 SIP
Please advice me if my portfolio is balanced and in case you suggest to add/remove any fund or modify amount I am investing,I am planning to add another 10k in SIP. Thanks in advance.
Hi Basavaraj,
Could you please help me find good mutual funds to invest in…
Annie-They are already listed above.
Hi,
I would need money for my child’s education and marriage which is around 10 years from now. My current investments are following
1)HDFC Top 200 fund (will complete 5 years in 2016). Should I renew this fund or move to any other large cap as this fund performance not good for last 2 years ? If so, what would be my replacement fund?
2) ICICI prudential long term equity and AXIS long term equity (both ELSS) – 2000 rupees each.
I want to invest 2 more funds along with above. Should I invest in Multi-cap funds or mid cap funds or balanced funds to balance my portfolio?
Please advise.
Thanks and Regards
Ranga
Rangarao-Continue HDFC Top 200 fund and also retain any one tax saving fund. Regarding fresh investment, I suggest HDFC balanced fund rather than small or mid cap fund (because your time frame is short)
Hi Basavaraj ,
Very helpful information.
Here is how my current portfolio looks like:
1. Large Cap – Franklin India Opportunity Fund – Growth
2. Small and Midcap – CANARA ROBECO EMERGING EQUITIES
3. Diversified – Franklin India High Growth Companies Fund
ICICI Prudential Exports and Other Services Fund
4. Balance Fund – Tata Balanced Fund – Growth
5. Debt Fund – Birla Sun Life Short Term Opportunities Fund – Growth
I was investing 2000 in each (12000 INR) in SIP and now i want to increase SIP amount. Could you please let me know if my portfolio is balanced one or you suggest me to remove/add funds. Please advice.
Deepak-Franklin India Opportunity Fund is a multi cap fund rather than a large cap. Better to stick to above selected large cap funds. CANARA ROBECO EMERGING EQUITIES-You can continue it. Again Franklin India High Growth Companies Fund is a multi cap fund. So it is not required. ICICI Fund is a sector fund and try avoid it. Balanced fund and debt funds are fine and you can continue.
Thanks Basavaraj. I also have filled up contact us form for personal finance planning but I did not get any confirmation. Is there any other contact information available?
Deepak-I just returned from a long year-end vacation. I still not gone through the contact us page. I will reply to your mail. Please give me time of till today night.
Dear Basavaraj,
First of all, wishing you and your family a very happy new year 2016. Secondly, we (every body reading this site) are grateful and thankful to you for providing excellent insights and inputs all these years. I learnt a lot by reading your analysis.
I want to invest around Rs 20K via SIP and Direct, and I am thinking of 10 years + time frame for these investments. These are my picks, please feel free to advise a different selection or fund allocation for better growth.
1. ICICI Pru Focussed Bluechip Fund (5K)
2. ICICI Pru Value Discovery Fund (5K)
3. HDFC Balanced Fund (5K)
4. Birla Sun Life MNC Fund (5k)
Thanks Again
Anand-Thanks and same to you too. Funds are fine but avoid Birla fund. Instead invest more towards HDFC Fund.
Dear sir,I want to invest Re 50000 per month through sip.My time horizon is ten years.Kindly suggest me the right portfolio.
Sir, I will also continue to invest Re 5 lacks per year in GPF & SSY schemes of GOVT.
Dalip-Use one large cap and one equity oriented balanced fund from above list.
Sir, Thanks for your kind reply.Sir why not one fund from mid-cap?
Dlip-Check your tenure and risk of investing in mid cap funds.
Sir thanks for your prompt reply.Does tenure of 10 years short for mid cap fund investment?
Dalip-I feel due to the risk in small and mid cap, I go only when my time horizon is more than 10 years. Otherwise, I will restrict a small portion but not aggressive strategy.
Sir,thanks a lot for your for your very helpful & straight forward advice.It will go a long way in building wise & balanced portfolio.
Sir, happy new your to you,your family & your staff members.
Happy new year 2016.
Dalip-Same to you and to your family 🙂
Dalip-Best of luck 🙂
Sir good evening, I want to invest re 5 lacks .Time period 3-5 years.Tax slab 30 percent.Should I do it through FDs or short term debt fund? If through the latter route then suggest name of one or two funds.Also advise on whether investment should be one time or as sip.
Dalip-First let me know whether it is 3 years or 5 years. There is a much gap of 2 years.
Happy Lohri sir.Thanks for your prompt reply.Frankly speaking ,I may need half the money after 3 years & the rest after 5 years for higher education of my son.So , please advice accordingly.
Dalip-Use FDs for 3 years and Arbitrage Funds and Short Term Debt Funds for 5 years goal.
Hi, I am a begginer in investments. I want to invest 2000 per month for 5 years. Please guide me.
Monalisa-Use short term debt funds, Arbitrage Funds and Bnk FDs or RDs.
Dear Mr. Basavaraj,
Good day to you.
First of all,I truly appreciate your well written article re mutual funds investments.
I am an NRI who has decided to return back to India permanently.
Presently ,I have the following mutual funds invesments:
1 HDFC MONTHLY INCOME PLAN – LONG TERM PLAN – GROWTH 300,000
2 ICICI PRUDENTIAL BALANCED ADVANTAGE FUND – REGULAR – GROWTH 200,000
3 SBI SAVINGS FUND – GROWTH 405,172
4 SBI INFRASTRUCTURE FUND – GROWTH 200,000
5 SBI CAPITAL PROTECTION ORIENTED FUND – SERIES II – GROWTH 500,000
6 SUNDARAM CPO FUND – SERIES 2 – 5 YRS – GROWTH 500,000
7 BIRLA SUN LIFE EQUITY SAVINGS FUND – REGULAR – GROWTH 200,000
8 RELIANCE EQUITY SAVINGS FUND – REGULAR – GROWTH 200,000
9 SBI EQUITY SAVINGS FUND – REGULAR – GROWTH 200,000
Apart from these, I also have taken a SIP of Rs 5000 on Reliance Equity Oppurtunity Fund as well as invested Rs 20000 each on Franklin Templeton MIP Growth and DSPBR Dual Advantage Regular plan growth (NFO).
I will have about Rs 25 Lakhs on hand which is an FD maturity. I am not interested in renewing it as an FD which will give me a mere 7.5% (pre tax).
Will be grateful if you can suggest some good funds to invest in.The aforementioned CPO funds of Rs 5 lakh each will mature in March (the current values being Rs 7.5lakhs for SBI CPO and Rs.6.8lakhs for Sundaram) which will give me an additional Rs 14 lakh to invest.
I have sufficient amounts invested in FDs, Post Office etc. so I suppose I can afford to take some calculated risks.
Thanks for your valuable advise.
Shobha Ganesh
Shobha-What I see in your portfolio is not a proper goal based product selection. Whether all these products are chosen based on your financial goals? For mutual fund investors, around 3-4 funds are enough. Like one large cap, one small and mid cap or one multi cap. Try to do it systematically.
Hi Basavaraj,
I need your suggestion on my investment planning this year. I would like to change my traditional saving habits and start MF from this year.
I would like to start SIP on following funds with 2500/month (10-20years):
Franklin India Bluechip Fund (G), ICICI Pru Value Discovery Fund (G), HDFC Balanced Fund (G)
Could you please suggest me 1 debt fund for 1-3 years for a short term goal. I would like to contribute 2500-3000/month .
I’m saving approximately 30K/year in PPF (started 2 years back). I do not need any Tax saving funds.
Also, I would like to go with direct rather than Scripbox/fundsindia. Please Suggest me on that part too.
Annie-There is a lot of difference between 15 year of investment to 20 years. First make up your mind of when you need. Funds are good and you can continue. Instead of debt funds, I suggest you to use FDs as your time horizon is less than 3 years.
Thanks Basavaraj for your response. I’m looking 1 for 10, 1 for 15 and 1 for 20 years. Could you please let me know which one should go for these time frames. if these doesn’t fall under my criteria, please suggest other mutual funds.
Franklin India Bluechip Fund (G) – number of years?
ICICI Pru Value Discovery Fund (G) – number of years?
HDFC Balanced Fund (G) – number of years?
Regards,
Annie
Annie-Don’t select your funds based on time frame. I mean, one fund for 15 years and another fund for 20 years.
Basavaraj, thank you for simplifying Mutual Fund mystery for novice investors like me. I’ve been following your articles from some time and I’ve built my portfolio largely based on your suggestions. I’m 37 years(married & have 2 kids) and my investment horizon is 5-12+(possibly more, but not sure) years. Unfortunately, haven’t managed to come up with investment goals so far. FYI, other than MF, I’ve investments in Real Estate(Home+others), EPF, LIC Policies, gold, one good term insurance and a running home loan(EMI – 12% of my monthly Salary) .
I’ve been investing in( since last few months – monthly SIP’s),
1. HDFC Balanced 12.5 K
2. ICICI Prudential Equity Arbitrage Fund – 7.5 K
3. Franklin India Prima Plus – 5 K
4. HDFC Mad-Cap Opportunities Fund – 12.5 K
5. Franklin India Smaller Companies Fund – 12.5 K
Overall, ~87% Equity (L-33%, M-36%, S-18%) and 17% Debt. Could you please help me with your opinion on whether the above portfolio sounds too aggressive for my background. Should I increase Debt:Equity ratio further ?
MB-Try to avoid small and mid cap funds (considering your time frame).
Hi Basavaraj,
Greetings!!
I am 29 year old IT professional. My current investments are as below. All funds selected are Direct -Growth plan with corresponding SIP amount. I have been investing in following funds for last 1 year.
Could you plz share your views on my fund selection , SIP amount considering the time horizon. My main goals are retirement planning and downpayment for house( 5 yrs).
1) ICICI Prudential Focused Bluechip Fund – Direct Plan (G)– Rs 3000 – SIP – horizon 15 to 20 yrs
2) Axis Long Term Equity Fund – Direct Plan (G)- (ELSS) – Rs 2000 – SIP – horizon 8 to 10 yrs
3) UTI Equity Fund – Direct Plan (G) – Rs 3000 – SIP – horizon 15 to 20 yrs
4) Franklin India High Growth Companies Fund – Direct Plan (G) – Rs 2000 – SIP- horizon 12 to 15 yrs
5) Tata Balance Fund – Direct Plan (G)– Rs 3000 – SIP – horizon 5 to 10 yrs
6) Mirae Asset Emerging Bluechip Fund – Direct Plan (G) – Rs 3000 – SIP – horizon 5 to 7 yrs.
Your help is much appreciated.
Regards,
Ritesh
Ritesh-Why two multi cap funds (UTI and Franklin)? Try to retain one.
Hi Basavaraj,
Sorry for late reply.
When I started with UTI Equity fund it was marked as a large cap fund. Hence I selected Franklin India High Growth Companies Fund as multi cap fund for my portfolio.
So If I have to retain one then which one of them to be retained? And what about rest of the funds?
Thanks.
Ritesh-Before deciding to more, check the overlap. If it is more than retain one. Otherwise continue as usual.
I have investing through sip in below funds.
Rs 1000:ICICI pru focused blue chip direct growth.
Rs 1000:HDFC balanced fund direct growth
I like to invest rs 2000 more through sip. I have chosen sbi small and midcap fund direct growth and Franklin India smaller companies fund direct growth. Which fund should I go for. My investment horizon is 20 years. Pls reply
Sabir-Go with Franklin.
pls review my portfolio: SIP / Month : Time till today – 6 months .
Franklin India Prima Plus -1000-
Franklin India Flexi CAp Fund – 1000/-
Franklin India smaller Companies Fund-1000/-
Franklin India High Growth Companies fund – 1000/-
Franklin India India Prima Fund – 1000/-
should I continue or look back into other funds .
Time Frame : I want to invest for three years.
Dheeraj-No equity if your time horizon is less than 5 years.
Dheeraj-Wait for sometime (at least a year to review). Why all Franklin Funds? Any specific reason?
Hi,
My current investments are as below. I prefer lump-sum investment as i do not have a fixed monthly income. I wish to invest a lump sum amount of around 3 Lacs in 3 different mutual funds , with a investment horizon of 10 years +. Could you pls suggest which funds should i choose. Thanks in advance.
1) Reliance Tax Saver – Rs 50000
2) Axis Mid Cap Fund – Rs 25000
3)Franklin India Smaller Companies Fund – Growth – Rs 50000
4)Franklin India High Growth Companies Fund GROWTH – Rs 200,000
5) DSP BlackRock Micro Cap Fund Regular Growth Plan – Rs 100,000
6) UTI-PHARMA & HEALTHCARE FUND -GROWTH – Rs 50000
Mrs.Lakhani-One large cap fund and an equity-oriented balanced fund from above list are suffice. I don’t think you need so many funds. Try to manage the equity:debt in ratio of around 60:40 through these two funds.
dear sir,
i am working in private sector , i want to invest 3000 Rs/month for around 15 year in mutual fund , can you tell me which is best mf fund for longer time .
Dattu-They are listed above.
Hi Basu,
Intially i have invested 2000 monthly for 2 months in “HDFC MID CAP OPPORTUNITIES FUND – GROWTH ” and 25 ruppes went to distributor monthly ..so i have changed to “HDFC MID CAP OPPORTUNITIES FUND –Direct plan-GROWTH ”
intially (1 year back)i have invested 3975(25 ruppes went to distributor) in “HDFC MID CAP OPPORTUNITIES FUND – GROWTH ” ,It has been showing always amount 4000+ (Green colour).
Till now i have invested 20,000 in “HDFC MID CAP OPPORTUNITIES FUND –Direct plan-GROWTH ” ,It has been showing always
20000- i.e 19500(red colour).
Could you please clarify my doubts.
1) I did mistaken to convert “FUND – GROWTH” to “FUND –Direct plan-GROWTH “?
2) which one is suitable to continue.Please advice me 🙁
Dear Raj,
DIRECT plans are always better, stick to it.
You can see that there is no distribution changes (as opposed to regular plans where you mentioned that 25 Rs went to distributor, you save this amount with DIRECT plans).
Reg your doubt on Invested Amount GREEN colors show position returns and RED shows Negative returns.
The return on invested sum depend on what time you invested and how long you are invested (and off course on volatile markets).
Hope this answers your query.
Hi Kamal/Basu,
Comes to Regular plans, Even deducting 25/- ruppes also,,,Showing some positive returns
But comes to Direct plan..Showing some negative returns..even though there was no deduction
Please clarify this.
Raj,
As I mentioned above, Due to volatile nature of Equity markets, The returns depend on what time you invested and since how long you are invested in a plan.
DIRECT plans cost 0.25-0.75% less than their regular counterparts. So the change in returns will be marginal higher on Yearly basis. and it won’t (and possibly never will bring down your positive returns to negative zone). Though the marginal returns with DIRECT plan makes BIG difference if you stay invested for let say next 30 yrs.
If you are still confused, here is an eg –
For Franklin India Prima Plus Growth plan – last one yr returns [as of 23 DEC, VRO] are –
Regular – 5.6%
DIRECT – 6.75%
You can see DIRECT plan returns are higher by 1%. for 1 yr. If you stay invested for next 30 yrs, this 1% will make huge difference in future value of your investment.
I took this fund just to illustrate the theory and it applies to each and every fund.
Raj-May I know the particular fund and period you chosen to arrive at this conclusion? In my view both must show the same rate of return (difference may be in terms of 100 BPS).
Raj-1) You did correct. 2) DIRECT-if you know how to manage your funds.
Hi Basu,
I am not sure about “how to manage funds.”..i Can say blindly i am investing 2000 monthly in HDFC mid cap opp direct plan to get some positive returns in long term.
i am looking returns for this equity >5 years.
Raj-Mutual Fund is not an investment that you invest today and forget for 5 years or so. You have to review the fund at least once in a year. If you don’t know all these facts, then either learn on your own or chose an adviser who can do it for you.
Hi Basu,
I will review the funds ,,But my question is here
Can i switch the funds inbetween if its performance not Well?
Like HDFC midcap to Balanced
or
Balanced to Large cap?
Hi Basu,
You mean to say ..i need to invest through distributor if i do not have any idea about funds.?
You are advicing good funds to invest. We are following the same.:-)
Raj-Yes, you are right.
Raj-Yes, you have to review all your equity investments at least once in a year.
Dear Mr. Basavaraj Tonagatti,
I am totally new comer in Mutual fun investment and according few information i am just started investment in Mutual fund. could you please advice me below funds are really good for 3 or 5 year investment.
1- DSP Blackrock Micro CAP GR – RS. 3000
2- Mirae Asset Emerging Blue chip fund GR – RS 3000
3-L & T India Prudence -RS 4000
4.Motilal Oswal MOST Focus MidCAP 35 Fund Gr – RS 5000
5.SBI Small & MidCAP Fund Gr – RS 5000
And next plan will be
6. Religare Invesco Growth Fund – RS3000
7. BNP PARIBAS equity Fund – RS 3000
8 Franklin India Smaller Companies Fund RS 4000
Is it good investment or no, could you please advice.
Papatil-None of them are suitable for your time frame. Equity is for long term and your period is just around 3-5 years. So my suggestion is to stay away from all these funds.
Dear Basu,
Below is my mutual fund portfolio:
i. AXIS LONG TERM EQUITY FUND – GROWTH PLAN — Rs 3000
ii. HDFC MID CAP OPPORTUNITIES FUND – GROWTH — Rs 5000
iii. UTI OPPORTUNITIES FUND GROWTH — Rs 5000
iv. RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH PLAN — Rs 5000
v. ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – REGULAR PLAN – GROWTH — Rs 10000
All above funds are due for renewal in January 2016. My investment time horizon is 20+ years. It would be great if you can give your expert opinion in:
1. Should I continue investing in “UTI OPPORTUNITIES FUND”?
I think I made a mistake of selecting two overlapping funds(i.e. “UTI Opportunities” and “ICICI Focused Bluechip”) and planing to switch to a balanced fund(HDFC balanced fund / ICICI Pru balanced fund). So, please suggest.
2. Wanted to add Rs. 10000 to my equity portfolio from January 2016. How to distribute this amount or add new funds or any other changes in the fund selection?
Thanks and Regards
Anil
Anil-1) yes, retain one among UTI and ICICI. Preferably ICICI. Also why two small and mid-cap funds (HDFC and Reliance)?
2) Use the same funds in the ratio of large cap Rs.3,000 into large cap, Rs.4,000 into small and mid cap and rest Rs.3,000 into debt funds or PPF.
Dear Basu,
Thank you very much for the quick reply.
Selecting two small and mid-cap funds (HDFC and Reliance), is nothing but my evaluation of long term investment and diversification, as I hope these funds will move to large cap category by that time. But I can move out of HDFC or Reliance, so please suggest which fund I should continue with.
After your recommendations, my future portfolio will look like:
i. AXIS LONG TERM EQUITY FUND – GROWTH PLAN — Rs 3000
ii. HDFC MID CAP / RELIANCE EQUITY OPPORTUNITIES FUND – GROWTH — Rs 14000
iii. ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY FUND – REGULAR PLAN – GROWTH — Rs 13000
iv. HDFC balanced fund / ICICI Pru balanced fund — Rs 5000
Need your inputs for final fund selection in small and mid-cap and balanced fund category.
Thanks and Regards
Anil
Anil-I am more inclined towards HDFC Midcap and HDFC Balanced.
Dear Basu,
You realy amazed me with your prompt response.
Thank you very much again for answering my queries and appreciate the work you are doing here.
Wishing you a great future in the coming year…
Anil
Hi
i want to invest 5K as below please suggest if its fine or do i need to remove anything from below list.
1)ICICI Prudential Focused Bluechip Equity Fund (G):2000
2)HDFC Mid-Cap Opportunities Fund (G):1000
3)Reliance Small Cap Fund (G):1000
4)Birla Sun Life Short Term Opportunities (G):1000
Regards
Kishan
Kishan-What is your timeframe?
Hi Basu sir, Its 10 years
Regards
Kishan
Kishan-You can go ahead. But keep the equity:debt at least in ratio of around 60:40
Hi Basu,
I am investing Rs 5000/- per month in HDFC Balanced Fund Growth(Direct). The above table shows a return of 13.99 % for one year. But the actual returns are in negative for last one year. Can you please explain this? Thank You.
Sekhar-Please check the date of this post. You might be comparing the return based on TODAY’s value.
Dear Basu ji..
I gone through your website today and found some very very useful information. Thanks a lot for sharing these things with fellow investors. And now my query is.. i want to invest in Reliance small cap fund and SBI small and MID cap fund. Can you please have a quick review and suggest me.
Thanks
Ganesh
Ganesh-How you selected these funds?
Hi Basu,
Thanks to really good info. I want to start SIP investments in mutual funds and had been researching through various resources for creation of right portfolio. Actually i was very glad when i found some of my selected funds in your suggested list. I do not have any short term objective and just want to invest money (20k per month) in right instruments for long term wealth creation. Just needed advice on the portfolio whether i should go ahead with this or add/delete any fund in it.
1) SBI Bluechip – 4k
2) Frankline India Prima -3k
3) UTI Midcap -3k
4)HDFC Balanced -3k
5) ICICI prudential focused bluechip – 4k
6) ICICI value discovery -3k
PF-Why two funds in same categories (SBI and ICICI or Franklin or ICICI)?
For long term investment plan – say 15 years – financial adviser claim that investment in SIP returns minimum 12 % ??? Is it true ????
Krupa-It is not from SIP but a SIP in equity funds. Please understand that SIP is the way of investment but not a product. He might have told the expected return from equity for long term.
What is the Meaning of Arbitage funds and Why are they considered to be safe ?
What time frame is required of investment in them ie Short term or Long term.
What are the best available in market and how does one invest in them.
Thank you in advance
Sachin-I explained about Arbitrage Funds in my earlier post “10 best short term investment options in India“. They are less volatile but more tax advantage than the typical debt funds (if your investment horizon is more than a year). You can consider this fund as debt fund (even though for taxation purpose such funds are considered as equity funds).
Hi Basavaraj,
I am planning to invest money 1000 monthly in each below.
Large – ICICI Prudential Bluechip
Mid – HDFC Mid cap Opportunities
Balance – HDFC Balanced Fund
and could you please tell me any 2 debt funds for short term HDFC or ICICI or BIRLA?
Birla SL Short Term Fund(G)
Birla SL Treasury Optimizer Plan(G)
HDFC Short Term Opportunities Fund(G)
ICICI Pru Long Term Plan-Reg(G)
Raj-If your debt product selection is to park your debt portion of portfolio, then my choice is HDFC Short Term Opp Fund.
Hi Basavaraj,
1) I would like to invest 2000 per month for short term investment <=5 years. I want to invest 500 per month into 4 mutual funds(i.e 2000 per month).Please advice me which four i can choose from below (Or) Will you tell any other good debt funds for short term
Birla SL Short Term Fund(G)
Birla SL Treasury Optimizer Plan(G)
HDFC Short Term Opportunities Fund(G)
ICICI Pru Long Term Plan-Reg(G)
Axis Short Term Fund(G)
UTI ST Income Fund(G)
(OR)
Is it good way to split into like this i.e 500 per month into 4 mutual funds(i.e 2000 per month)?
(OR)
Can i invest 2000 in any one of the above?
2) Please tell me one large to invest monthly 1000 in either HDFC,ICICI,BIRLA SUN LIFE,AXIS for long term.
Note: I have already investing 2000 in HDFC mid cap direct growth option
Raj-HDFC Fund because of it’s low modified duration, high credit quality of papers and risk sensitivity at medium range. Large cap funds are already listed above.
Hi Basavaraj,
1) I would like to invest 2000 per month for short term investment 7 years
Note: I have already investing 2000 in HDFC mid cap direct growth option
Raj-Invest in equity oriented balanced funds and those are listed above.
Dear Basu Nivesh ,
I am a beginner in the world of investing in Mutual funds. I want to save for long term(Example: My child’s education in 10 years, My Child’s marriage in 15 years and my retirement in 25 years). I can invest upto Rs.30,000 per month. My first question is should i select 1 Large cap, 1 Large and Mid Cap, 1 Small and mid cap and 1 balanced fund? If so i am thinking of going with Franklin India Blue Chip, Franklin India Prima Plus Fund, Reliance Equity opp Fund and HDFC Balanced Fund. Does that sound okay? Please guide me i am a newbie in Mutual funds.
Thanks,
Deepti.
Deepti-Go ahead, but I am not that much inclined towards Reliance. Manage equity:debt in the ratio of at least around 70:30.
Thank you for the suggestion. I may be wrong but my question is: if we have fds do we still need to go for debt mutual funds?
Deepti-If your time horizon is more than 3 years, then I prefer debt funds over FDs (due to their tax efficiency). Also, in case of FDs, the maximum time period to book is 10 years, which is not the case with debt funds.
Good day,
Thanks for the wonderful articles on investments.
I am 40 year old beginner and started Feb -2015 MF investments in SIP
I have been investing in the following MF’s,
1. Kotak Select Focus Fund – Regular Plan (G) (SIP from Feb 2015)
2. SBI Blue Chip Fund (G)
3. UTI Mid Cap Fund (G)
4. Kotak Capital Protection Oriented Scheme – Series 2
All are for long term (goals such as purchase of house and retirement.),
Could you please provide your advice about these funds , Whether I can continue or switch to other good funds to me to achieve my goal
Thanks& best regards
Rathish
Rathish-Equity funds are fine. But debt fund (Kotak) is a balanced fund. Why you opted this?
Thanks for the reply, did you mean Kotak Capital Protection Oriented Scheme – Series 2. This was invested as per my Customer relation manager advise. Could you please suggest two good debt fund.
regards
rathish
Rathish-Forget about what the so called “Customer Relation Manager” advice, but what prompted you to invest? When it comes to debt funds, I park in short term debt funds ONLY.
Thanks for an excellent blog. I have been following your blog and your discussions recently only.
I am working in gulf ….. anyway will not repeat .
Could you please suggest couple of good debt funds i can invest for long term and short term.
Thanks & best regards
Rathish
Rathish-For both my suggestion is to go for short-term debt funds ONLY.
Hi, I understand the difference between a direct Fund and a normal fund is presence of intermediary in the latter and hence effects Expense ratio. Apart from it there is no difference in working of the fund. Please correct if I am wrong. So I want to know why is the ranking/recommendations different for a same fund in direct category and a normal one. The NAV’s quoted for them are also different to the tune of 2% in case of my fund (Franklin India Prima Plus- Direct(Growth)). Please clarify. Thanks in Advance.
Khush-Yes, your understanding is correct. As far as ranking is concerned, ranking portals treat all funds in same category (regular and direct) and give more weightage to those who performing since long than new one. Direct funds started recently. Hence, this might be the reason of downgrade in rating than their regular counterparts. NAV is post expenses. Hence, the direct one automatically must have different NAV and difference is the net effect of expenses.
Dear Basu,
Thanks for all wonderful articles on investments.
I am a 25 yr old beginner and want to start the investments in SIP MFs starting in Jan for periods of 10 years.
I can invest 5000/month.
Following are the Funds that i have shortlisted.
1) Large Cap Fund : Franklin India Bluechip Fund(G): 2000
2)Large and Mid Cap: Reliance Equity Opp Fund(G) : 2000
3) Small and Mid Cap: HDFC balanced fund–> 1000
Please suggest if i can go ahead ?
Thanks & Regards,
Sushant
Sushant-Go with large cap and HDFC Balanced Fund (which you said wrongly as small and mid cap).
Thanks Basu..will go with one large cap and HDFC balanced fund(Balanced Fund)..sorry for the mistake my bad..
hi sir….l am 30 years old… my investment in
1) axis elss-1000
2) icici focused bluechip- 1000
3) hdfc mid cap opportunity- 1000
4) ppf- 1000
5) icici value discovery -1000
6) tata balanced fund- 5000
these fund are good plz…. suggest me..
i start my investment reading your suggestion
other one query is i have also save 2lacs rupees plz say me which fund best for low risk high interest basis return…..
Javed-Continue the same funds. Let me know the duration of Rs.2 lakh investment.
duration 2 lacs 3 year for emergency fund anytime withdrawn this fund……
sir…let me know after 20/30 years this funds corpus are tax free……return are not payable tax….plz suggests me…..
Javed-If it for emergency, then stick to eFDs or Liquid Funds. Equity mutual funds holding for more than a year are tax free.
Good Day Sir !
I want to invest 20000/month in SIPs for 1 yr. HDFC Midcap Opp and Franklin india prima will b the best option for year 2016??
If i enchase it, lets say after 7 months only. Is there any penalty charges for enchasment ??
Yatin-No equity for a time frame of 1 year or so.
Dear Sir,
I am of 31 years of age, and new to investing {having conventional LICs (40000 per annum) and post office RDs (10000 per month) only}.
Can invest upto Rs. 10000 per month in SIPs ,please suggest me the best SIPs.
I will start from Jan 2016 for upto 5/7 years.
krishna-They are listed above.
Hi Basu,
Thanks for your article.
With 15 yrs. of investment horizon and high risk appetite, I intend to invest in below 3 selected funds
1) ICICI Pro Focused Blue Chip (Ratio 1:5)
2) Franklin India Prima Plus (Ratio 1:5)
3) Franklin India Small Cos (Ratio 3:5)
Let me know your opinion on above funds selected and given ratio
Abhishek-Whether you have debt portfolio separately? If not then try to create the one with debt:equity in the ratio of at least 30:70. Funds are good and go ahead.
Hello Basu
I got RS. 2,00,000 currently. Where should I invest And Why, Please ?
It will for max of 3-5 years
I am planing for :
SBI PHARAMA FUND – 50000
RELIANCE SMALL CAP – 50000
Axis Long Term Equity Fund – 50000
reliance money manager fund – 50000
Any changes in this or it is correct.
Tulu-Stay away from equity if your time horizon is around 3-5 years. Maximum you can expose around 25% to 30% of your investable surplus in equity. Rest must be in short term debt funds, FDs or Arbitrage Funds.
Hello Basu
For invest in equity what is the suitable time horizon ?
Tulu-Minimum of 5 years or more (it is my personal view, but some may feel even 1 year is also the best strategy to invest in equity).
Tulu-Before proceeding for “where” and “why”, first think of how long you want to invest and what is your expected return.
Hi Basu,
Firstly thanks for sharing great information about investment & insurance, its very helpful.
I am 33 yrs old and plan to invest in mutual funds through sips with long term view 10+ yrs. Have narrowed on below funds, please provide ur suggestion/comments.
Tata balanced fund 3k
Franklin India prima plus 2k
Franklin India small companies 2k
Icici pru focussed bluechip 2k
Mirae emerging bluechip 2k
Premal-Instead of Mirae, I prefer Franklin India Prima or HDFC Midcap. Rest is fine. But I suggest to increase the investment in Tata fund to have more exposure towards tax free debt.
Appreciate your quick feedback, will alter suitably. Thanks a lot.
Sir
I just started sip in ICICI balanced fund-direct – 10000/month.I want to invest another 16000 sip for 10 years and more.pls suggest me 2 good funds with out much overlap with above fund and also suggest allocation.thanking you sir.i am investing 10000/month in ppf&rd.
Chandra-Use one large cap fund from above list.
Any agency that is declaring AMC rating that follows good system and procedures. Where reliance on specific fund manager is less. if so please share the info. With so many AMCs, it is difficult to decide. Do you suggest some specific fund houses which are good with most of the assets under management performing better compare to others.
Ramesh-Our concern and performance rating is not about AMC, but the fund where we invest. However, reliability of AMC is also factor for investors. But to me it is least one.
Thanks Basu for detail analysis.
I am planning to start SIP starting 2016 and shortlisted below funds . Would you be able to suggest how it look ? This is for long term investment ( mostly retirement); I am 32 year old.
Fund House Fund Name Category Amount(INR)
ICICI Prudential Value Discovery Fund Diversified Equity 15000
SBI Blue Chip Fund Large Cap 5000
BNP Paribas Midcap Fund Mid Cap 5000
Reliance Small Cap Fund Small Cap 2500
DSP BlackRock Micro Cap Fund Small Cap 2500
Any help in this regard is greatly appreciated.
Rahul-Why so many small-cap funds? In my view one fund is enough. I stick to above mentioned small and mid cap funds.
Thanks Basu for pointing out ..I am still naive ..Are you recommending to pick one among below 3 to 10 K monthly SIP ?
And remaining 2 funds look good ?
BNP Paribas Midcap Fund Mid Cap 5000
Reliance Small Cap Fund Small Cap 2500
DSP BlackRock Micro Cap Fund Small Cap 2500
Rahul-Yes, preferably BNP.
Thanks Basu.. appreciate your help.
Hi Basu,
First I must thank you for your valuable time providing free education for new investors . I recently started reading your articles and its very simple to follow Up
and your answers to readers are very clear and easy to understand .My Age 37 years and I am in 10% tax slab
I am interested to invest 3 to 4 lac lump sum amount for long-term view
I am thinking of starting SIP in following funds with a long term view(20+ years) and interested to invest 3 to 4 lac lump sum amount for long-term view (10 to 15
years)
Large cap—>
ICICI Pru Focussed bluechip Fund(G)—> Dirtect Plan(10 to 15 years)—>3k per month
Large and midcap–>
Franklin india prima plus fund(G)—> Dirtect Plan (10 to 15 years)—>3k per month
Small and Midcap
HDFC Midcap Opp Fund(G)—>Dirtect Plan (10 to 15 years)—->3k Per Month
Balanced Fund
1.HDFC Balanced Fund(G) Dirtect Plan—>(20 years) —>3k per month
or
2.TATA Balanced Fund(G)Dirtect Plan —>(20 years) —> 3k per month
Tax saving Funds
3.Axis long term equity fund (G)–3k Per month(20 years)
Please suggest above funds are good or not and alos Please suggest MIP Funds also
1.Short term(3 to 4 years)–5k per month
2.Midterm (5 to 8 years)—->5k Per month(Buy a house)
3.Long term(20 years)—-> my retirement and corpus fund
Thanks and Regards,
Harish-New investor
Harish-You can go ahead with above-shortlisted funds. Why MIPs?
Hi Sir,
first of all, thank you for the above blog..
I am a 26yr old, plqnning to invest 8k pm mutual funds through SIPs for a tenure of 8-10 yrs or may be more.. As I a beginner.. Kindly suggest me on what all fund/funds to invest in and for what period?
thanks in advance..
Sayantan-Use equity oriented balanced fund like HDFC Balanced Fund.
Hai Basava raj,
Recently i came through your blogs. They were very useful and good stuff. Both the insurance and mutual fund part.
Now I am 36, married and have 2 kids of 6yrs & 7mnths working in a private sector( technical). Cleared 1 home loan of 6laks recently. and 2nd home loan of 30lkh took this yr for a tenure of 20yr. Having some traditional insurance policies-10lk . Cancelled all the 4 ulip’s. Also saving in PPF bank a/c. Prepared to take a required pure term plan.
Can invest 10-20k monthly in MF.
So, just now started investing in MF flexi SIP for 5 years.
ICICI PRU FOCUS BLUE CHIP-3000
ICICI PRU VALUE DISCOVERY FUND-2000
FRANKLIN INDIA BLUE CHIP-3000
RELIANCE TOP 200 FUND-2000
I want to make corpus for my children education and retirement. Any corrections or any suggestions please.
Sekhar.
Sekhar-Stay away from Reliance fund and retain either ICICI or Franklin Bluechip Funds. What about the life risk? You have to take term insurance at first before proceeding for investment.
Thanks Basava.
Going with the icici i protect.
Just to know investment options in MF for the long term.
Hi Basu,
First of all, let me thank you for this amazing site. I got introduced to this site recently.
I currently have 5 Monthly SIPs:
RELIANCE SMALL CAP FUND – Rs 2000/-
RELIANCE EQUITY OPPORTUNITIES FUND – Rs 2000/-
ICICI Pru Value Discovery Fund – Rs 2000/-
ICICI Pru Focused Bluechip Equity – Rs 2000/-
HDFC Midcap Opps – Rs 3000/-
I cancelled my SIP in HDFC Top 200 Fund (Rs 2000/- p.m) which ran for 10 months.
I don’t invest through SIP for ELSS, but I have investments in Reliance ELSS and Axis Long Term Equity Fund.
I currently am 27 years old and I want to invest more through SIP for long-term. Can you suggest me some funds?
Thanks,
Joseph
Joseph-I am fine with ICICI Funds and HDFC. But why two Reliance funds? I don’t think they need. Don’t act too often on fund investments. I am not sure of what prompted to you to cancel the SIP in HDFC Top 200. Think of long term.
Hi Basu,
The investments are primarily different right.
Reliance Small Cap predominantly invests in small-cap funds and HDFC Midcap Opps invests in mid-cap funds. If you look at 2, 3 and 5-yr returns, Reliance Small Cap fund is there in the Top 3.
Reliance Equity Opps fund and ICICI Value Discovery funds are diversified equity funds with different investment strategies.
ICICI Pru Focused Bluechip also focuses on the top Bluechip funds and has better returns for a 5-year period than HDFC Top 200. That is the reason why I cancelled the SIP.
Is my thought-process wrong in choosing these funds?
Thanks,
Joseph
Joseph-Whether you arrived at small and mid cap based on valueresearchonline? Instead, go for morningstar and check. Also, when I suggested HDFC, I considered downward protection also. Hence, I am specific about HDFC. Reliance Equity Opp is a mid cap fund. So why one more fund? I don’t have any issue with ICICI Discovery. ICICI good because they entered the market at right time (2008), but HDFC is one of the best fund in a industry managed fund manager PJ. It is left with you now.
Hi Basavaraj,
I am 34 years old with a son of 4 years. I have a home loan of 40lakhs that I am trying to close..
I can afford 3-5k every month for SIP. I am looking good mutual funds through SIP in tenure of 3 – 5 years.
Also, I want to invest 25k for my son’s education with a tenure period of 15 years.
Could you please assist in selecting my portfolio?
Murali-For your 3-5 years of goal, simply stay away from any equity mutual funds. However, for your kid’s education, select one large cap, one small and mid cap and another balanced fund from above list.
Any recommendations?
Balanced fund – ICICI or HDFC is better?
Large, small and midcap – pls recommend few options..
Hi Basavaraj,
Your financial inputs are much appreciated and useful for MF starters like myself..
Below is my portfolio and want to buy some few mid-cap opp. funds with 5 years outlook.. Please suggest some good options as I still have 4000rs that I can allocate for monthly SIPs.
HDFC Balanced Fund 1000 p/m
Tata Balanced Fund 1000 p/m
SBI Bluechip 2000 p/m
Franklin India Prima Plus Fund(G) – 1000 p/m
Mirae Asset India Opportunities Fund-Reg(G) 2000 p/m
Murali-NO equity if time horizon is just 5 years. Regarding existing funds, why two balanced funds?
hello sir
i hv a query,i want to invest 6k in elss as tax saving.i should invest in one elss fund or three diffrent funds.i am planning to invest 15k /pm as sips.i hv already started rs3000/pm in hdfc top 200. should i continue this sip or stop investing in this fund.
i am planning to invest in…………
1. icici pru value discovery fund rs 2000/pm.
2. hdfc balanced fund rs 2000/pm
3.elss rs 6000/pm
4.franklin smaller co. rs 1500/pm
5.sbi magnum midcap rs 1500/pm
thanks……
plz give me favour. is it a good portfolio.
Gourav-Continue HDFC Top 200. Shortlisted funds are good. But why two small cap funds (SBI and Franklin). Instead, retain one. Invest in single ELSS.
thanks sir
which small cap to retain franklin or sbi.
hdfc top 200 …..is it a fund which can be continued for 20 yrs?
Gaurav-Go with Franklin. Yes, I still insist to continue HDFC Top 200.
Hi Basava..
Very informative blog!
I am gonna start my SIPs from Jan 2016. Right now I have 5-6 goals and planned to achieve them through various MFs – depending on the no. of years. These are goal based.
There are other category of investors who invest in MFs like 1 large cap, 1 mid/small, 1 debt etc., – are these non-goal based ?
In other words, how do I fit mine into this or vice versa ?
Prasad-You have to check your over all equity portfolio. In that diversify the investable amount among these categories.
Hi Basu,
I am 31 years old and having 2 goals. First is for my RETIREMENT & the second is for my baby’s future. Planning to invest total 10k/month (5k for retirement & 5k for my baby) for 15+ years(both). Below are the funds I have selected as per your above blog. Kindly suggest for any changes.
RETIREMENT Folio:
1. Franklin India Bluechip Fund (G)- Largecap- 2k/month
2. Tata Balance Fund -2k/month
3. HDFC Mid-Cap Opportunities Fund(G) – 1k/Month
CHILD PLAN Folio:
1. Birla Sun Life Frontline Equity Fund- Largecap – 2k/month
2.Franklin India Prima Plus -2k /month
3. Franklin India Tax Shield (ELSS) 1k /month
I already invested 2k/month in (HDFC Balance fund + HDFC Top 200 fund) via SIP in a separate folio.
Adding to above, just for your evaluation, I have already taken couple of insurance and a HDFC term-plan. Hence not going for any specific market offered child plan. Also I have invested few amount in PPF & Pradhan Mantri Kanya surakshya yojana.
Thanks in adv.
Jitu.
Jitu-Fund selection is perfect. However, create a debt:equity portfolio in ratio of at least 30:70.
Thanks Basu,
I think all the fund selected are equity funds. Do you want me to add some debt fund into the portfolio ?
Thanks,
Jitu.
Hi Basu,
Do you suggest me to add a debt fund into the above portfolio’s ?
Thanks,
Jitu.
Jitu-Yes, that is very much necessary.
My MF Portfolio ,SIP monthly in following funds
1.DSP BlackRock Equity Fund – Regular – Growth (Equity)
2.DSP BlackRock Top 100 Equity Fund – Regular – Growth (Equity)
3.HDFC Mid-Cap Opportunities Fund – Growth (Equity)
4.HDFC Top 200 – Growth (Equity)
5.ICICI Prudential Dynamic Plan – Growth (Equity)
6.ICICI Prudential Long Term Equity Fund (Tax Saving) – Regular – Growth (Equity)
7.SBI Bluechip Fund – Growth
Kindly review and comment on my portfoli0
Thank you Sir
Sachin-One large cap, one small and mid cap and if possible a tax saving fund, these are enough.
Could you suggest which one are good to retain and which i should think about exist.
Also what is your say on the Trading account like sharekhan etc…is it good to invest for SIP through them or directly from bank ?
Sachin-Both Sharekhan and BANK are act like advisers. So there is no difference between them when it comes to cost. If you can manage transaction issues on your own then go for DIRECT by visiting mutual fund companies directly.
Sachin-Retain SBI Bluechip, HDFC Mid Cap and ICICI Prudential Long Term Equity Fund.
Hello Sir,
Please review and provide your feedback on my MF portfolio. I intent to keep investing in them for > 10 years through SIP.
Axis Long term – 5k
Franklin India Opp (G) – 5k
Birla Sun Life India GenNext Fund (G) – 3k
Birla Sun Life Midcap Fund (G) – 3k
SBI Blue Chip Fund (G) – 3k
Thanks
James
James-You can continue the other funds but in my view you have think about funds like both Birla MFs.
sir
now I am a student and I have not sufficient knowledge about mutual fund….so please suggest me one best sip plan for 10 years….my monthly sip would be 1000….so sir please suggest me
Khokan-Go ahead with equity oriented balanced fund like HDFC Balanced Fund.
I going to start SIP’s from January 1st, as a smalltime Businessman i want to invest around 5000 every month in SIP, Direct.
As per your blog can I’m going to invest 1000 in one from each category.
My question looking at the market scenario which category i avoid, to get a grip of SIPs and Where i can change according to market situation a year later.
Zulfikar-Please go ahead. You are long term investor. Hence, don’t bother about such day to day or monthly movements. You can’t change the funds based on market conditions. But you have to change funds if they are not performing well.
Hello Sir,
I have SIP in SBI midcap & small cap monthly 2k and planning for 10-15 years.
Is it good to go ahead with that? also, can you provide any guidelines how to switch in funds and when in any fund house and how to know they are not performing well & right time to switch, if you have better link please share.
Ganesh-SBI fund is new one. I personally will not invest considering it’s age. Instead of that, chose the one from above list. Switching within fund house is related to procedure, which you can ask the fund company. They guide you. Regarding review, I will write a post on that. Please wait.
Thanks Sir, for your quick respond, but this SBI Small & midcap fund – Regular – Growth is 5 years old. Is that not sufficient one, as you said its new one. just want to make clarification. its average is 23.96% returns in last 5 years.
Ganesh-I look for more than 5 years old funds. Especially those who passed the turbulence period of 2008.
Fine, Thank u So Much…
sir i want to start sip of rs 2000 for 20 yrs in hdfc mf pl suggest the product name in which i invest my money for best return. Thanks in advance
Gaurav-Why HDFC?
Hello Basavaraj,
Greetings! I am Richard from Chennai would like to get your advice on mutual funds. I want to invest 20 lakh and want to get better returns in next 3 years. Kindly share your advice and i am very new to this mutual funds. and i want to know the average returns after 3 years.
Richard-If your time horizon is just 3 years, then strictly stay away from equity. Use debt products like RDs or short term debt funds.
dear Basu, Thanks for the reply. my actual time horizon is 10 years. to be exact i want 1 crore rupee in 2026 April. i need this money for my daughter’s higher education & future security. i have a land in outskirt of Chennai and i am planning to sell it and invest in mutual funds to get better returns. your advice is much anticipated.
Richard.
Richard-In that case use equity oriented balanced funds like HDFC Balanced Fund or else chose one large cap fund for around 60% of your inestable surplus and rest 40% into short term debt fund.
Hello Basu,
I am invested in Mirae Asset Emerging Bluechip and SBI Magnum Midcap for past 3.5 years(10k each), got fine returns but now I am looking to reduce my exposure to midcap(reduced risk appetite over the past one year) and thinking to discontinue atleast one of them in 2016 start. I have seen that a lot of advisors dont even name Mirae Asset funds in their advise however I dont think that would be best criterion to cut that off. Or do you think that I should cut both of them and go for the funds you suggested (Franklin India Prima/HDFC Mid cap)
Your advise is highly appreciated.
Also, I just really want to say that we really appreciate your patience in answering so many queries of people like me on your blogs. Hats off for that !!
Thanks.
When i say 10K, I mean a SIP of 10k pm ..
Jatinder-Mirae Asset Emerging Bluechip is a new fund and that may be the reason including me other advisers also not referring. However, currently it is doing good but we have to check how it perform well during market fall. I personally not invest in this until the fund matures. SBI Midcap is old but not a great performer compare to the funds I listed. However, you can continue this fund.
My suggestion is to retain SBI and chose a large cap from above list.
Hi Basu Ji,
I am already invested in ICICI pro focussed Bluechip for past 6 years would continue to stay invested. Just wanted to reduce my midcap exposure. Thanks for the tip !!
following sips for last 4 and half years
hdfc top 200 12k per month till 2013 dec and discontinued but not withdrawn accumulation
icici export and services 12 k per month from dec 13 and continuing
uti opp fund 5000 per mnth last 5 years
reliance banking fund 5000 per month last 5 yrs
icici pru discovery, birla frontline equity 2500 per month last 2 years
franklin smaller co fund 2000 pm last one year
idfc premier eq 3000 pm last3 years
sbi fmcg fund 1ooo pm last 2 years
pls advise continuation or otherwise…
except hdfc top 200 no sip stopped … inthat place icici export services fund sip 12 k per month
all sips continuing… total around 40 k per month
i m retd (vrs) banker getting monthly pension around 40 k
savings are for future needs
no liabilty
yesterday gave the details but you took it that sips stopped…thats why repeating
Ravishankar-First, chose maximum of two to three funds. One large cap, one small and mid cap and a balanced fund. These much are enough. Second, when you say as retired person, I suggest you to restrict your equity investment based on your financial goals. If no such financial goals, then don’t over invest in equity. Because considering your age, you must need a cash for emergencies. Fancy returns may make you to invest in equity. But keep in mind that fancy returns always comes with huge risk too. I feel at your age, it is not worth to invest all your savings into equity. At the same time, by investing in these fancy named funds and adding more number of funds, you are creating confusion yourself.
Hi Basavaraj,
Thanks a lot for your articles, really informative. I recently sold some old gold and wanted to invest Rs. 1,30,000 lumpsum in some MF for around 5 years. I have already invested Rs. 1.50,000 in Axis Growth fund ELSS. Any help is appreciated. Thanks in advance.
Arun-Stay away from equity funds. Invest part in FD, Short Term Debt Funds and Arbitrage Funds. However, if you are fond of equity, I suggest to invest around 20% to 30% of your money into equity as your goal is just 5 years.
following sips for last 4 and half years
hdfc top 200 12k per month till 2013 dec and discontinued but not withdrawn accumulation
icici export and services 12 k per month from dec 13 and continuing
uti opp fund 5000 per mnth last 5 years
reliance banking fund 5000 per month last 5 yrs
icici pru discovery, birla frontline equity 2500 per month last 2 years
franklin smaller co fund 2000 pm last one year
idfc premier eq 3000 pm last3 years
sbi fmcg fund 1ooo pm last 2 years
pls advise continuation or otherwise…
Ravishankar-Why so many funds? Also why you stopped the SIPs? I felt that your investments are not aligned to your financial goals.
except hdfc top 200 no sip stopped … inthat place icici export services fund sip 12 k per month
all sips continuing… total around 40 k per month
Hi Basu,
First of all, the above post is very informative. Thank you so much. This post has made me to think whether my MF portfolio is good enough. I do Rs 5K SIP/month (total 30K/month) in these 6 mutual funds given below. Let me know if I should continue or make changes. I am 34 year old IT professional and looking for long term growth opportunities and can take medium/medium-high level risk.
My MF portfolio:
Axis Long Term Equity-G
Franklin India High Grth Companies-G
Franklin India Smaller Companies-G
SBI Magnum Midcap-G
Tata Ethical Reg-G
UTI Equity-G
Thanks,
Abhishek
Abhishek-I found too much overlap (two mid caps, three multi caps). Also, no large cap funds. Select one large cap and small mid cap funds. That’s it.
i want to start invert in mf Rs.2000/- pm for my baby for long run. which fund from i start.
Ankur-Equity oriented balanced fund.
thanks. I want to know with mutual fund house i choose between hdfc, icici,sbi or please suggest me a fund in which i invest. thank you.
My father invest HDFC Top 200 Fund (G) past one year thought sip 3000/-pm .this is good fund or move to anothor one. thank you.
Ankur-Use HDFC Balanced Fund. Let your father continue his fund.
thanks for your advice Sir.
Sir, i want to invest rs. 2000/-PM in SIP mutual fund for long term for tax saving purpose aswell as for good returns. Pls suggest me a good one.
Raj-They are already explained in my recent post “Top 5 Best ELSS or Tax Saving Mutual Funds to invest in 2016“.
Hi Basu !
I am looking for investing in long term of 15 years Rs. 12000 / month. I’ve shortlisted following options
Large – ICICI Prudential Bluechip
Mid – HDFC Mid cap Opportunities
Balance – HDFC Balanced Fund
Is this okay ?
Planning to invest 4k equally among the three funds.
Rutvij-Yes, go ahead.
Hello,
thank you for your blog. it is really helpful for begineers like me. I have two questions :
1. I have got 8 lakhs rupees and thinking to invest in mutual funds for long term. almost 10 years. can you please tell which are the funds should invest on? i would like to invest lumpsum amount.
2. I have SBI smart wealth assure policy purchased in 2011 with one time payment of 5 lakh rupees. current value is 6,83,000. i am not really getting any value addition in to it. should i continue with the same or stop the policy and invest money some where else? can you please suggest where should i invest the extracted money?
thank you.
Rajesh Patil.
Rajesh-1) HDFC or Tata Balanced Fund.
2) It is a ULIP with higher expenses. Hence, suggest you to surrender it once the policy completes 5 years.
Dear Basu,
First of all i would like to thank you and really appreciate your work very much for giving various tips of investments for investors like us. I am a newbie in MF scence and only recently started investing in MF as SIP. Currently, i am investing Rs. 5000/- each in following funds
1) Frankling India Prima Plus (G)
2) Tata Balanced Fund
3) Axis Long Term Equity Fund (G)
Now i am in a position to increase my SIP with an additional total amount of Rs. 5000/-. So should I increase SIP in current MF or should I opt for any other MF? if so, can you suggest good funds?
Appreciate your comments.
regards,
Muneer
Muneer-Continue in same funds and add one small and mid cap fund from above list.
Dear Basavaraj,
thank you very much and really greatful for your comments.
regards,
muneer
Hi Basavaraj,
A great write-up as always..!!! I am a huge fan of your blog.
I want to start a SIP in a large cap MF for long-term. Got little confused while short-listing the one (Though you have nicely explained..!!).
Would request you to suggest between ICICI Pru vs. SBI Bluechip vs. Birla Frontline.
Please help.
Mahesh-Between ICICI and Birla.
Thanks for the reply.
You meant I can opt either of these two?
Mahesh-YES.
dear sir ,
i want to start a SIP as soon as possible . willing to invest about 3500 rs everymonth .pleased help me set up a portfolio.i am willing to put in for 3 years
Richard-No such great portfolio. Use Bank RDs. Because your time frame is too short for equity investment.
Dear Mr. Basavaraj,
Thanks a ton for your time and advice.
Is it right to junk all MF s from ICICI DIRECT portfolio and invest in Direct Plans thru MF Utilities India Pvt Ltd?
Kindly advise.
Rgds
Loknath
Loknath-It is purely depends on you. If you feel that you can manage portfolio on your own then definitely YES. Also, you feel that ICICI Direct not at all adding any value to your money, then also go ahead with DIRECT.
Dear Basavaraj,
Thanks for your reply.
Do you manage personalized MF / stock portfolio?
If yes, pls. send me a mail at loknath.sarangi@gmail.com
Loknath-If it is one time and few minutes of my work then you can send details. More than that is not free.
Hi,
No, not looking for free stuff, need to know your charge and services offered
Rgds
Loknath-Please send the mail at tonhokrani@gmail.com by mentioning your specific doubts.
you have positive bias towards hdfc mutual find. they r not performing. many others r far better then this.
Bhadreshkumar-My bias is based on past consistent performance but not on recent star ratings.
Hi,
I have got around 10 lakhs with me and i was thinking to do a bank FD for tenure around 5 years or more. then i thought to invest the same in balanced or debt funds in lumsum. can you please tell whether it is good idea to invest in balanced or debt funds for period 5 years or more?
i want to have secure returns that why i was thinking about the mutual funds rather than equity market.
kindly suggest.
Ajay-Your tenure is 5 years. So use only short term debt funds, arbitrage funds or Bank FDs.
Dear Basavaraj,
You are doing a great job by cretaing financial awareness among us and its truly a noble job done without having any commercial interest.
Thanks Again
Can I seek your personalized advice now?
Loknath-Yes, you can.
Dear Mr. Basavaraj
Want to put 50k p.m for 7 years in SIP for daughter’s education and marriage
Current portfolio is as below : Request your advice on right portfolio with Aggressive Growth, willing to take risk
BIRLA SUN LIFE MNC FUND – G Continuing 3000 Continue SIP?
BSL PURE VALUE FUND- G Continuing 3000 Continue SIP?
BNP PARIBAS EQUITY – G discontinued 3000 Re Start SIP?
ICICI PRU EXPORTS AND OTHER SERVICES – REG- G Continuing 5000 Continue SIP?
ICICI PRU TECHNOLOGY FUND – REG- G discontinued 0 Re Start SIP?
IDFC PREMIER EQ – REG- G Continuing 3000 Continue SIP?
RELIANCE PHARMA -G discontinued 3000 Re Start SIP?
SBI FMCG FUND – REGULAR PLAN – DIVIDEND Discontinued 0 Re Start SIP?
UTI-TRANSP & LOGISTIC – G discontinued 0 Re Start SIP?
SBI BLUE CHIP – G Continuing 3000 Continue SIP?
TATA Indo Global Infra Fund – Now converted to TATA EQUITY OPPORTUNITY FUND — HOLDING SINCE NFO 2007 Lumpsum invst INR 40000 – To redeem / switch / Hold!!!
Any New MF Recommended?
??? Any New MF
??? Any New MF
??? Any New MF
Loknath-Remove all junks and start investing in a single fund of equity-oriented balanced fund of my choice from above.