In this article, I will share my Top 10 Best SIP Mutual Funds to invest in India in 2018. Yearly I will publish my Top 10 Best SIP Mutual Funds to invest in India. Continuing that trend, I will publish the list for 2018.
Before proceeding further, let us first analyze the funds of Top 10 Best SIP Mutual Funds to invest in India in 2017. Do remember one thing that due to continues market uptrend, the majority of equity funds performed well and given you better returns.
However, my concern is always to go for a fund which is old, went through all market cycle, given you consistence performance and also with downside protection.
Notice that few funds since a year not able to beat the benchmark index. However, they have easily beaten the benchmark if you look at 3 yrs, 5 yrs or 10 yrs returns. Hence, you no need to worry in this front.
Why I have to invest?
Before a BLIND investment, it is always best that you must know the reason for your investment. Hence, before jumping into investment read what I am sharing below.
You must have a proper Financial Goal
I noticed that many of investors simply invest in mutual funds just they have some surplus money. The second reason may be someone guided that mutual funds are best in long run compared to Bank FDs, PPF, RDs, or even LIC endowment product.
If you have clarity like why you are investing, when you need money and how much you need money at that time, then you will get the better clarity in selecting the product. Hence, first identify your financial goals.
You must know the current cost of that particular goal. Along with that, you must also know the inflation rate associated with that particular goal. Remember that each financial goal to have it’s own inflation rate. For example, education or marriage cost of your kid’s is different inflation that the inflation rate of household expenses.
By identifying the current cost, time horizon and inflation rate of that particular goal, you can easily find out the future cost of that goal. This future cost of the goal is your target amount.
I have written a separate post on how to set your financial goals. Read the same at “Financial Goals – How to set before jumping into investing?”
Asset Allocation is MUST
Next step is to identify the asset allocation. Whether it is short-term goal or long-term goal, the proper asset allocation between debt and equity is a must. I personally prefer the below asset allocation. Remember that it may differ from individual to individual. However, the basic idea of asset allocation is to protect your money and smoothly sail to reach the financial goals.
If the goal is below 5 years-Don’t touch equity product. Use the debt products of your choice like FDs, RDs or Debt Funds.
If the goal is 5 years to 10 years-Allocate debt:equity in the ratio of 40:60.
If the goal is more than 10 years-Allocate debt:equity in the ratio of 30:70.
While choosing debt product, make sure that the maturity period of the product must match your financial goals. For example, PPF is best debt product. However, it must match your financial goals. If the PPF maturity period is 13 years and your goal is 10 years, then you will fall short of meeting your financial goals.
Return Expectation
Next and the biggest step is the return expectation from each asset class. For equity, you can expect around 10% to 12% return. For debt, you can expect around 7% return expectation.
When your expectations are defined, then there is less probability of deviating or taking knee-jerk reactions to the volatility.
Portfolio Return Expectation
Once you understand how much is your return expectation from each asset class, then the next step is to identify the return expectation from the portfolio.
Let us say you defined the asset allocation of debt:equity as 30:70. Return expectation from debt is 7% and equity is 10%, then the overall portfolio return expectation is as below.
(70% x 10%) + (30% x 7%)=9.1%.
How much to invest?
Once the goals are defined with target amount, asset allocations is done, return expectation from each asset class is defined, then the final step is to identify the amount to invest each month.
There are two ways to do. One is constant monthly SIP throughout the goal period. Second is increasing some fixed % each year up to the goal period. Decide which suits best to you.
Hope the above information will give you clarity before jumping into equity mutual fund products.
How many mutual funds are enough?
How many mutual funds do we have? Is it 1, 3, 5 or more than 5? The answer is simple…you don’t need more than 3-4 funds for investing in mutual funds. Whether your investment is Rs.1,000 a month or Rs.1 lakh a month. With the maximum of 3-4 funds, you can easily create a diversified equity portfolio.
Having more fund does not give you enough diversification. Instead, in many cases, it may create you portfolio overlapping and leads to underperformance.
Now let us move to the selection of mutual funds.
Taxation of Equity Mutual Funds for 2018-19
Remember that Equity Funds and Debt funds are taxed differently. Hence, you must understand the taxation part as well before jumping into investment. I tried to explain the same in below image.
The rate of taxation is as below for the current FY.
Below is the DDT Rates applicable to Mutual Funds after the Budget 2018.
Hope taxation part is clear to all of you. If you still have doubt, then refer my latest post “Budget 2018 – Mutual Fund Taxation FY 2018-19“.
How I selected Top 10 Best SIP Mutual Funds to invest in India in 2018?
I will first screen 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 select the funds based on Risk-Return Analyzer.
Many simply select the funds based on eye-catching returns. However, at what cost the fund 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 2018”. There may be fewer other 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 the 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.
Below are my selection in each category of funds.
Best SIP Mutual Funds to invest in India in 2018 -Large Cap
In this category, there are other funds also which are in my radar like SBI Bluechip Fund, Birla Sunlife Frontline Equity Fund. However, I found no reason to change my last year recommendations. Hence, I am continuing the same funds.
Best SIP Mutual Funds to invest in India in 2018 -Multi-Cap
In this category, I am bit skeptical with ICICI Pru Value Discovery as the fund underperforming since a year. Those who invested in this fund based on my recommendation must continue and watch this fund for another year or so. Along with this, you can check with the fund like SBI Magnum Multi Cap Fund also.
Best SIP Mutual Funds to invest in India in 2018 -Mid Cap
Last year I recommended HDFC Midcap Opp Fund and Franklin India Prima Fund. I am sticking to the same funds in this year also as I have not found any reason to change these funds. You can also have a fund like Mirae Asset Emerging Bluechip Fund.
Best SIP Mutual Funds to invest in India in 2018 -Small Cap
Last year, I recommended DSPBR Micro Cap Fund and Franklin India Smaller Companies Funds. However, DSPBR now not accepting the fresh investments. Hence, those who already have a SIP in that fund may continue in that fund without any worries. Fresh investors can use Franklin India Smaller Companies Fund.
Best SIP Mutual Funds to invest in India in 2018 -Equity Oriented Balanced Funds
Here also I am managing the same funds of last year. No change here also.
The final list of Top 10 Best SIP Mutual Funds to invest in India in 2018 are as below.
Conclusion:-You might have surprised that I did not change my funds this year also. Yes, because equity investment does not mean changing fund frequently. However, keeping an eye on fund performance is also a must. The fund I selected are old funds and consistently performed in all market cycles.
You may see some other funds which performed well above these funds. But do remember that during a market uptrend, even the worst fund will generate you BEST returns. The real test of the fund will come into picture when the market starts to fall i.e downside protection.
If the benchmark fell to 20% and your fund has fallen 10 15%, then this is the best fund to me. Because it protected from fall. Hence, always look for consistency and other parameters rather than chasing returns.
Also, before jumping into investment try to refer my GYAAN given about investment. Because I found that many of the blog readers have no clue of why they investing and for how long they have to invest.
Refer our latest posts related to Mutual Funds for 2018-
- Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019
- Top and Best Debt Mutual Funds to invest in 2018
- Budget 2018 – Mutual Fund Taxation FY 2018-19
- Budget 2018 LTCG Tax on Stocks and Mutual funds
- Top 5 Best Balanced Funds 2018 to invest in India
SEBI Mutual Fund Categorization and Rationalization – How it helps investors?
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Ganesh
Hi Basu,
I have been following your blog for past few months. Based on your suggestions i have created my goals and asset allocation before investing blindly. I’m planning to invest in mutual funds, so can you please publish top 10 mutual funds for 2019 based on current and past market .
It will be helpful for me to start my investing journey.
Thanks for being an eye opener for new investors like me.
Basavaraj Tonagatti
Dear Ganesh,
It is already there, please refer the post “Top 10 Best SIP Mutual Funds to invest in India in 2019“.
Ganesh
Hi Basu,
Thanks a lot for your quick response Sir 🙂
karthik
Hi Basu,
How are u, contacted you almost 1 year back, Happy a new year 2019.
I have already investing in the below 3 funds from last year and investing 1000/- each.
1) [EARLIER BALANCED FUND]-HDFC Hybrid Equity Fund – Direct plan- growth
(Earlier HDFC Balanced Fund is merged with HDFC Premier Multi-Cap Fund and the same has been renamed as w.e.f. June 01, 2018)
2) [MID CAP]HDFC MID-CAP opportunities fund-Direct plan growth
3) [LARGE CAP]ICICI Prudential Bluechip Fund – Direct Plan – Growth
Below are the questions,can u please clarify
1—> will HDFC Hybrid Equity Fund comes under balanced funds now?
2—> I want to invest 1000/ each in below funds from this new year for long term 11 years.
please suggest me?
multi cap fund:
ICICI pru value discovery fund(G)
small cap fund :
Franklin india smaller companies fund(G)
NOTE: I have already investing FD and RD`s for debit portion
asset allocation as of now is
debit:equity is 70:30.
Basavaraj Tonagatti
Dear Karthik,
1) Yes
2) Rather than choosing both the funds, stick to either balanced fund or large cap.
karthik
Thank you Basu for your reply.
For second question, you mean to say that, I have to continue either HDFC Hybrid Equity Fund or ICICI blue chip, correct?
If your answer is correct, Shall I stop to invest in HDFC Hybrid Equity Fund and then
will increase investment in ICICI blue chip and HDFC mid cap opportunity like below i.e
2) [MID CAP]HDFC MID-CAP opportunities fund-Direct plan growth =====>2000/month
3) [LARGE CAP]ICICI Prudential Bluechip Fund – Direct Plan – Growth ====> 2000/month
Is it good?
Basavaraj Tonagatti
Dear Karthik,
I suggest to increase to Large Cap.
karthik
Thank you Basu, I will do as below
1) HDFC Hybrid Equity Fund —> I will stop to invest
(If you want me to stop, Can i know the reason please)
2) HDFC MID-CAP opportunities fund-Direct plan growth —-> continue with 1000/month, fine?
3) [LARGE CAP]ICICI Prudential Bluechip Fund – Direct Plan – Growth —–> Increase to 2000 from 1000/month fine?
Basavaraj Tonagatti
Dear Karthik,
Yes, go ahead. Regarding the reasons behind stopping HDFC, I want you to have larger exposure towards large cap at first.
karthik
Thanks Basu for ur time.
you want me to expose more on large cap.If this is the reason only behind HDFC hybrid stopping,No problem for me to continue in Hybrid
1) will continue both HDFC hybrid AND HDFC mid cap(1000/month)
2) will increase investment 2000/month in ICICI large cap
Is this good? plz suggest
Basavaraj Tonagatti
Dear Karthik,
Yes.
Abhijit Dutta
Investing in axislongterm, reliance pharma, reliance large cap, Tata digital and Invesco contra fund through monthly sip. Please advice if I need to change any
Basavaraj Tonagatti
Dear Abhijit,
First read above post properly and understand how to set goals and asset allocation. Then we discuss.
Rajat Jaitly
Dear Basavaraj Ji,
A very well written article. I was thoroughly impressed.
Can you please guide me in selecting the best Mutual fund.
Currently I an holding following funds.
1. Aditya Birla SL Tax Relief 96 Direct-G – 50000.00 (One time).
2. Axis Dynamic Equity Fund Direct-G – 20000.00 (One time).
3. DSP Tax Saver Direct-G – 50000.00 (One time)
4. Franklin India Smaller Companies-G – 1500 (SIP).
5. HDFC Top 100-G – 2000 (SIP) (Stopped for now).
6. L&T Infrastructure Direct-G – 4000 (SIP).
which one should I continue and which one to Stop.
Also for Debit – I am doing PPF – 20000.00 (Per year).
Planning to start NPS – 5000 (Per month).
Kindly Suggest.
Thanks
Rajat
Basavaraj Tonagatti
Dear Rajat,
First read above post properly (especially before the fund selection part). Then cross check whether you did all those or not. Then we discuss about funds.
Rajat Jaitly
Dear Basavaraj Ji,
Sure I have read your article and no doubt it is extensively covered and recommended some good performing funds. Maybe, what I wanted to convey was not covered in the above was,
My age is 35 years, and Have a target to save 2 Cr for retirement and 1 Cr for child’s education. I wanted to know with above fund and gradual increase in same fund will I be able to achieve the target. Also I have a amount of 10000.00 in hand to be invested further.
Can you please guide me on the same.
Thanks,
Rajat
Basavaraj Tonagatti
Dear Rajat,
Where is the asset allocation for each goal? What % you are following for each goal? How you selected these funds?
Nitin Shevale
Hello Basavaraj Ji,
Any suggestions or correction regarding trailing MFs
Emergency Fund Allocation
Edelweiss Arbitrage Fund-Direct-Growth +Axis Liquid Fund-Direct-Growth
Short Term (3-5 yrs) Total-3000/-
Franklin India Low Duration Fund -Direct-Growth 3000/-
Medium Term (Son Graduation) (15-17 yrs) 12000/-
Franklin India Smaller Companies fund-Direct-Growth (Small Cap) 4000/-
L&T mid Cap Fund-Direct-Growth (Mid Cap) 4000/-
Axis Blue Chip Fund-Direct-Growth (Large Cap) 4000/-
Long Term (Retirement Allocation (25+yrs) 12000/-
L&T Emerging Business Fund-Direct-Growth (Small Cap) 4000/-
HDFC Midcap Opp. Fund-Direct-Growth (Midcap) 4000/-
Aditya Birla Sun Life Equity Fund-Direct-Growth (Multicap) 4000/-
Checked with common stocks and portfolio overlap (approximately 4-5 % )
Equity & Debt ratio – 70:30
As the time duration is more have included midcap,small cap and multicap in the portfolio
Appreciate your effort and good work, Thanks in advance.
Basavaraj Tonagatti
Dear Nitin,
Reduce your small cap and mid cap exposure. Also, even for your long term goals, you must include debt portion in right proportion.
Nitin
Thank you for your valuable reply, could you please confirm by reducing small cap and mid cap are you referring to reduce it by more 2000/- in each and include debt portion in right proportion like an Aggressive Hybrid Fund like HDFC Hybrid Equity Fund
So if I understand correctly it will be
Medium Term (Son Graduation) (15-17 yrs) 12000/-
Franklin India Smaller Companies fund-Direct-Growth (Small Cap) 2000/-
L&T mid Cap Fund-Direct-Growth (Mid Cap) 2000/-
Axis Blue Chip Fund-Direct-Growth (Large Cap) 4000/-
HDFC Hybrid Equity Fund-Direct-Growth (Aggressive Hybrid Fund ) 4000/-
Long Term (Retirement Allocation (25+yrs) 12000/-
L&T Emerging Business Fund-Direct-Growth (Small Cap) 2000/-
HDFC Midcap Opp. Fund-Direct-Growth (Midcap) 2000/-
Aditya Birla Sun Life Equity Fund-Direct-Growth (Multicap) 4000/-
HDFC Hybrid Equity Fund-Direct-Growth (Aggressive Hybrid Fund ) 4000/-
Please correct me if I am wrong (reducing small & midcap & including debt portion in right proportion)
Basavaraj Tonagatti
Dear Nitin,
First refer above post for asset allocation. Second, do you feel HDFC Hybrid Fund a debt fund?
Nitin
Yes, already referred the above post (70:30 equity:debt asset allocation), however as there was no suggestion in Debt fund in your reply so replied my selection/option, could you please suggest on debt fund seeing the above portfolio and goal
Thanks in advance.
Basavaraj Tonagatti
Dear Nitin,
For debt, you can use EPF (for retirement), PPF (for goals which are beyond 15 years), Liquid Funds or Ultra Short Term Debt Funds.
Nitin
Thank you..as shared above already included them in my portfolio
Liquid Fund -Axis Liquid Fund-Direct-Growth
Ultra Short Term Debt Funds-
Franklin India Low Duration Fund -Direct-Growth
Appreciate your reply. Will continue to follow your articles, Q & A via http://www.basunivesh.com
Basavaraj Tonagatti
Dear Nitin,
Pleasure.
Vignesh
Hi Sir,
What are your views on ICICI Prudential value Discovery? I started investing in it on march 2016 and have my sip running till date. I have started this investment for a long term of 7 years.
Basavaraj Tonagatti
Dear Vignesh,
What prompted you to doubt this?
Vignesh
Dear Sir,
It had been underperforming both during last year’s bull run and this year. Also its top most holding sun pharma fell 8% yesterday.
Basavaraj Tonagatti
Dear Vignesh,
If as per your the fund is consistently underperforming its benchmark, then simply switch to another fund.
suresh
I had invested in sip in ABSL top 100 since 1 year. At that time both top 100 and frontline equity were classified as large cap. Now there are some who are top 100 is changed to focussed equity and categorised seperately(according to some sites). Do you suggest a change over to frontline equity?
Basavaraj Tonagatti
Dear Suresh,
What prompted you to go for ABSL Top 100? Don’t rely on few sites categorization. Rather check with ABSL AMC portal regarding detailed portfolio.
Ashwini
Sir, mutual funds suggestion for SIP in 2019
Basavaraj Tonagatti
Dear Ashwini,
I understand your curiosity 🙂 Please wait and watch 🙂
suresh
why is it that some of the top rated funds are giving “bottom of chart” returns when compared to their peers in same category over last one year? One can expect minor variations but most of the top rated funds across categories are in red with negative returns.
Will your next year fund suggestion take into account the recent sebi reclassification?
Basavaraj Tonagatti
Dear Suresh,
No fund will remain TOP rated forever. It has to undergo certain ups and downs. But it does not mean we neglect the performance and retain. If the fund is underperforming consistently then you can move out. Yes, my next year recommendations also involve the recent changes.
Atanu Roychowdhury
Dear Mr. Tonagatti,
Greeting!! Hope you are doing well.
I am belongs to low income bracket and can only invest 1000 to 1500(Max 2000 if I push) monthly for my retirement money hence I want to invest another 25 years.
Also from my conventional investment(FD,RD) I managed to save Rs. 1,70,266 from my last 9 years income for my retirement.
Looking to the scenario in conventional investment I shall unable to save decent money using conventional way.
I came to know Mutual Fund is good for long term investment and I want to invest my future monthly amount and 9 years income to Mutual fund.
But there are lots of Mutual fund and I do not know which one to pick.
One of my friend advise me about your blog and its very good but still I am not sure which one I need to pick.
Kindly please advise me
1. Mutual fund(s) for my monthly amount of 1000 t0 1500(max 2000) for 25 years
2. Mutual fund(s) for my saved amount Rs. 1,70,266 for 25 years.
Please note, I have PF(500+ monthly ) and did not pay Tax and I am willing take high risk and will not withdraw money before my retirement .
Regards,
Atanu.
Basavaraj Tonagatti
Dear Atanu,
1) Start with Equity Oriented Hybrid Fund (Like HDFC Hybrid Fund or Franklin Hybrid Fund).
2) First do the asset allocation of 40:60 between debt and equity. In Debt, you can use PPF or Ultra Short Term Debt Fund. For equity, one large cap and one mid cap with 50:50 ratio.
Atanu Roychowdhury
Dear Mr. Tonagatti,
Thank you for you kind response, its mean a lot.
To be clear
1) Start with Equity Oriented Hybrid Fund (Like HDFC Hybrid Fund or Franklin Hybrid Fund): This is for the monthly investment say 1500, right?
2) First do the asset allocation of 40:60 between debt and equity. In Debt, you can use PPF or Ultra Short Term Debt Fund. For equity, one large cap and one mid cap with 50:50 ratio.: As advise I will invest money 70,000 in PPF account and remaining 1,00,000; 50,000 I will invest in a large cap and 50,000 in mid cap in one go. Please advise one large cap and one mid cap for the same.
Thank you once again for your kindness.
Regards,
Atanu
Basavaraj Tonagatti
Dear Atanu,
1) Yes.
2) The funds are already listed in above post.
Atanu
Dear Mr. Tonagatti,
Thank you for you kind response.
Shahnawaz Ahmad
Hi Basu
Thanks for your valuable advise always
DSPBR is closed option for new investor so do you have any other suggestion for Small Cap part from Fanklin
Thanks in advance
Basavaraj Tonagatti
Dear Shahnawaz,
What wrong with Franklin?
Shahnawaz Ahmad
Actually I can not invest online on it , as of now I am not in India working outisde till Feb 2019, and they said you must visit their office to start first from them and then you can use online as online website is not for the first time investor
Other website does not have such restrictions like ICICI, HDFC, SBI e.t.c
Waiting for your another recomendation on Small cap
FYI with 10 Years goal, I already have ICICI Prudential Bluechip Fund – Direct Plan – Growth and HDFC MidCap Opport.- Direct (G) in my portfolio as 50:30
Only Small cap 20% is pending , Appreciate your valuable advice, confused between
1. SBI Small CAP
2. Reliance Small CAP
3. HDFC Small CAP
Thanks
SA
Basavaraj Tonagatti
Dear Shahnawaz,
If you are already KYC complied, then why not use MFU?
Shahnawaz Ahmad
yes I am KYC compliant from CAMS, now I will create Common Account Number (CAN) in below website
https://www.mfuindia.com/eCANFormFill
1. Please confirm if the same site you refer
2. Please confirm they do not have any backened changes or adjustment in NAV when doing transactions through them, I mean this site is also Free
Thanks Again for your support, after your confirmation will go ahead with Franklin
Basavaraj Tonagatti
Dear Shahnawaz,
1) Yes.
2) NO charges at all.
harsh
Hello Sir ,
I want to increase my monthly SIP . Do i need to cancel the current SIP and open a new SIP with new value ? Does it make any change to my investment which I make till now in that fund ?
Basavaraj Tonagatti
Dear Harsh,
You can do both ways. One way is to cancel the current SIP and register the fresh SIP with the increased amount. The second way is that to register one more SIP with the increased amount under the same folio. This will not change your investment returns (if you do both ways).
harsh
Thank you Sir .
Shahnawaz Ahmad
Hi Basu
R-squared- This should be high or low , please share as above in post its not mentioned like you mentioned for Aplha, Sharpe Ratio,Sortino Ratio,Treynor Ratio = higher
Thanks in advance
Basavaraj Tonagatti
Dear Shahnawaz,
R-Square indicates the fund performance in line with the index. Higher the R-Squared means higher relativity of movement with Index.
Shahnawaz Ahmad
Hi Basu
How are you
Please can you advise is it write time to top up my HDFC Mid-Cap Opportunities Fund SIP as the NAV is 52 weeks low
Also the fund size is increased tremandously so one should worry or keep invested , offcourse I am talking lont term 5 to 6 years of period
Basavaraj Tonagatti
Dear Shahnawaz,
I am fine and home you are also. Invest to reach your financial goals rather than just because NAV has fallen.
Shahnawaz Ahmad
Also please reply on this
Also the fund size is increased tremandously so one should worry or keep invested , offcourse I am talking lont term 5 to 6 years of period
Apart from it receive email that they increased the Total expense ration please advise
Basavaraj Tonagatti
Dear Shahnawaz,
Fund sizes are not so big in India to scratch our head as equity penetration in India is so low.
Shahnawaz Ahmad
Hi Basu
How is Reliance Small Cap – Direct (G) can we cosider it over Franklin (I) Smaller Co -Direct (G) , Please advise
Thanks
SA
Basavaraj Tonagatti
Dear Shahnawaz,
I prefer Franklin rest is left with you.
Sameer
Sir,
I am a regular reader of your articles.I find them very informative. Please keep up the good work .
i have a general question for you.
Is it a good time to invest in Small And Midcap mutual funds via SIP for a long term (5years above) as they have gone down significantly and may tank further?
I know that it is not right to time the market but it is essential to spend TIME in the market.
Basavaraj Tonagatti
Dear Sameer,
If your goals are more than 5 years and did proper asset allocation between debt and equity, then it is the right time to invest. Such news based ups and downs are part of the equity game.
Bhaskar
Hi Basu,
Below is my current portfolio-
Time Horizon 15 years-
1. ABSL Frontline equity- 1000 from last 2 years.
2. ABSL ELSS tax relief 96 – 10000 from last 6 months.
3. Mirae Asset Emerging Bluechip fund- 10000 from last 6 month.
4. HDFC mid cap opportunities fund – 4000 from last 2 years.
5. TATA equity PE fund – 5000 form last 6 months.
Time horizon 7 years-
6. Reliance Small Cap- 4500 from last 6 months.
7. SBI small cap 2500 from last 3 months.
8. L&T emerging businesses 3000 from last 6 months.
Query:
1. What are the funds I should keep if I have to reduce the funds to 4 or 5.
2. Please suggest if I have to include/delete any category or specific fund which is missing.
Thanks
Bhaskar
Basavaraj Tonagatti
Dear Bhaskar,
Where is your debt allocation?
Bhaskar
Hi Basu,
I have RD of 2000 Rs a month in addition to the above portfolio.
Please suggest.
Basavaraj Tonagatti
Dear Bhaskar,
In that case, first debt and equity asset allocation should be 40:60 or 30:70. For equity, use one large, one mid and one small. For 7 yrs goal, the asset allocation between debt and equity should be around 70:30. For equity, use one large cap.
harsh
Hello,
What is your view on the new category Large & mid cap fund ,is there any difference between this and multi cap fund ?
I have been investing in Mirae asset blue chip which was a mid cap but now re-classified in Large & mid cap .Should I continue with same fund ?
Basavaraj Tonagatti
Dear Harsh,
Without knowing your actual requirement, how can I suggest which is best for you?
harsh
Hi ,
I have been investing in Mirae asset blue chip with a long time horizon of 12 yrs. But as it is reclassified so I am confused on this .
Other than this I have one Large Cap(SBI Blue chip) , One Balance fund (HDFC) , multi cap (Motilal Oswal-35)and One ELSS (Aditya Birla -96 fund) all with long time horizon of 12-15 yrs.
My portfolio also include debt part in PPF, PF .
My long time goal is buying house at the end of 12 yrs .
Basavaraj Tonagatti
Dear Harsh,
Do you need these many funds? One large cap and one mid cap are enough for you.
harsh
Thank you sir for the reply , do you suggest me to continue with Mirae asset bluechip as my mid cap fund ?
Basavaraj Tonagatti
Dear Harsh,
Is it a pure mid cap fund?
harsh
No its not a pure mid cap now . Please suggest what should be my action point .
Basavaraj Tonagatti
Dear Harsh,
Not PURE mid cap means?
harsh
It has been reclassified into Large & Mid Cap Fund .
Basavaraj Tonagatti
Dear Harsh,
In that case, try to stick to other fund which is pure in nature.
harsh
Thank you sir for the reply …
Mahesh
Hi Basu,
For one of my long-term goals (Retirement plan) I have been investing in the following portfolio (monthly):
Equity:
1. ABSL Frontline Equity Fund- 2.5K
2. HDFC Mid-cap Opportunities Fund- 2.0K
3. DSP Smallcap Fund- 2.0K
4. Axis Long-term Equity Fund- 2.5K
Debt:
1. PPF: 2.5K
I need your suggestions on the followings:
1. Is my allocation fine? Do I need to think of any debt MF as well along with PPF?
2. I want to increase the investment by 10% for the current year. How to do that?
3. For my son’s education (~15 years from now), shall I follow the same allocation (but under different portfolio)? How much do I need to invest monthly to accumulate 30 Lacs?
Thanks a lot in advance.
Basavaraj Tonagatti
Dear Mahesh,
1) Yes and you no need to go for debt funds.
2) Spread this among one or two funds.
3) Yes.
Mahesh
Dear Basu,
Thank you for your inputs that are very helpful. However, I am not clear on:
Point #2: How to spread? Can I increase the SIP amount by giving change directions to the AMC-of-interest or need to create a different folio?
Point #3: How much amount I need to invest to accumulate 30 Lacs after 15 years?
Thanks again!
Basavaraj Tonagatti
Dear Mahesh,
2) Either you can use the same folio or create one more folio to invest. Do which makes you feel easy and there is no such hard rule for this.
3) Use the compounding formula (available online) to calculate.
Rishi
Hi Basu,
How are you and hope you are doing well. ?
Need your review on my Present SIP and have been investing for Last 2 Years
Goal – 15 Years : 1 Crore
I am investing below 20k monthly SIP
1. ICICI Prudential Blue Chip – 8000
2. ICIC Prudential Discovery Fund – 4000
3. HDFC MidCap Opportunities – 8000
Debt Fund
1. PPF – 8k Monthly
Query
1. Can you please check if above Portfolio is fine or need any changes?
2. Please suggest if Ineed to exit in any of the above SIP and take new or its fine ?
3. Is NPS Recommendable. I invested 50 thousand but I feel its not good product w.r.t to Returns and taxation
Regards,
Rishi
Basavaraj Tonagatti
Dear Rishi,
Add small cap rather than Discovery. Also, try to manage the ratio of 30:70 between debt and equity. Stay away from NPS.
Rishi
Dear Basu,
Thanks for your suggestion.
a) Any reason for not continuing Discovery Fund
b) Shall I stop ICICI Discovery Fund and take Lump sump DSPBR
Micro Fund with that amount + SIP of 4000 Every Month.
Proposed One Monthly
1. ICICI Prudential Blue Chip – 8000 [Large Cap]
2. DSPBR Micro Fund (G) – 4000 [Small Cap]
3. HDFC MidCap Opportunities – 8000 [ Mid Cap]
Regards,
Rishi
Basavaraj Tonagatti
Dear Rishi,
It is a multi cap now considered as value fund. Hence, better to stick to specific categorized fund.
Rishi
Thanks Basu.
One more Query. Can you please suggest which is good in below for long run for 10-12 years time frame for monthly SIP of 4000k
Reliance Small Cap
SBI Small Fund
HDFC Small Fund
L&T Emerging Businesses Fund
Regards,
Rishi
Basavaraj Tonagatti
Dear Rishi,
I will not invest in a single fund. I do the investment like 50:30:20 in Large cap, Mid Cap and Small Cap.
Rishi
Dear Basu,
Ya correct.
Was asking actually which is good Small Cap Fund in below List.
Reliance Small Cap
SBI Small Fund
HDFC Small Fund
L&T Emerging Businesses Fund
Basavaraj Tonagatti
Dear Rishi,
HDFC.
Rishi
Hi Basu,
How are you and hope you are doing well. 🙂
Need your review on my Present SIP and have been investing for Last 2 Years
Goal – 15 Years : 1 Crore
I am investing below 20k monthly SIP
1. ICICI Prudential Blue Chip – 8000
2. ICIC Prudential Discovery Fund – 4000
3. HDFC MidCap Opportunities – 8000
Debt Fund
1. PPF – 8k Monthly
Query
1. Can you please check if above Portfolio is fine or need any changes?
2. Please suggest if Ineed to exit in any of the above SIP and take new or its fine 🙂
3. Is NPS Recommendable. I invested 50 thousand but I feel its not good product w.r.t to Returns and taxation
Regards,
Rishi
Rishi
Dear Basu,
Can you please let me know on above Query. Waiting for your Suggestion
Regards,
Rishi
ritz
Hi Basu
ICICI Pru value discovery is a value fund, not a multicap one.
Basavaraj Tonagatti
Dear Ritz,
This post was written before SEBI’s recategorization.
pappu
Hi Basu,
I am 37. I have invested 2 lakhs in SBI gilt short term last year, for my 3 year goal (buying house). Now SBI gilt short term has been changed to constant maturity (10 yrs gilt).
As the average maturity and modified duration are longer, I have decided to switch it to liquid fund.
How do I do this? What are the tax implications if I change to other AMCs liquid fund? Do I need to stagger the switching or do it as a single time?
Basavaraj Tonagatti
Dear Pappu,
It is like your redeeming the money and investing freshly in new fund. Hence, applicable STCG will be payable by you. Better to do the investment in one go.
Pappu
Thanks Basu. Does STCG is applicable for switch from sbi gilt to sbi liquid?
Basavaraj Tonagatti
Dear Pappu,
YES.
pappu
Dear Basu,
Thanks for your opinion.
1. How frequently we have to review our debt funds portfolio for a 3 year goal of house?
2. Please write a blog on,
How to review the portfolio of investments?
Basavaraj Tonagatti
Dear Pappu,
1) Once in a year is fine.
2) Surely and thanks for your suggestion.
pappu
Hi Basu,
Thank you.
I started investing in 2017 after reading your blogs.
I had a Debt SIP portfolio – FOR 3 YR GOAL
ABSL floating rate fund (long term) – 20000/month
SBI gilt short term – 1000/month.
In view of change in Gilt to Constant maturity- I changed it to liquid fund.
Now my query is, should continue Floater fund or shift to Ultrashort term debt fund?
Thanks in advance.
Basavaraj Tonagatti
Dear Pappu,
Better to shift to Ultra Short Term.
Anup
Hello Sir,
My Asset Allocation :
65% – Equity, 35%-Debt (PPF,RD,etc)
Kindly review my folio and suggest modifications,if any.
Equity allocation is spitted as below.
ELSS (Investment Horizon – 5 Years):
ABSL TAX RELIEF96 – 1500/month
AXIS LONG-TERM EQUITY = 1500/month
Multicap (Investment Horizon 5 Years)
AXIS FOCUSED 25 GROWTH – 2000/month
Midcap (Investment Horizon 8-10 Years)
MIRAE ASSET EMERGING BLUECHIP – 1000/month
Smallcap(Investment Horizon 8-10 Years)
L&T EMERGING BUSINESSES – 2000/month
HDFC SMALL CAP – 1000/month
Contra bets (Investment Horizon – 5 years)
L&T INDIA VALUE FUND – 1000/month
Do let me know any better alternative in each category which you think will generate better returns in the given time horizons than the ones which I have mentioned.
Thanks in advance.
Regards,
Anup
Basavaraj Tonagatti
Dear Anup,
You have to do the asset allocation for each financial goals based on the time horizon of the goals. However, you mentioned the overall asset allocation for your total investment. This is completely wrong. As per me, don’t touch equity if your goal is less than 5 years. Also, for more than 5 years goals, first do the asset allocation and then choose the products.
Abhi
Hi Basavraj,
This is Abhi and i am 30 year old. Here is my financial background.
Goal: 2.5Cr by the age of 45 (15 years).
Risk Appetite: Moderatly Aggresive
Investment Horizon: 15 years
Emergency Fund: 2,00,000
FD: 3,00,000
Insurance: 50,00,000
Current Investment (Monthly):
RD: 10K
ELSS – 9 K
DSP BlackRock Tax Saver Fund – Direct Plan – 3K
Axis Long Term Equity Fund – Direct Plan – 3K
BSL Tax Relief 96 – Direct Plan – 3K
Equity – 25 K
– Diversified Equity
Motilal Oswal MOSt Focused Multicap 35 Fund – 10K
– Large Cap
Mirae Asset India Opportunities Fund – 10K
– Small & Mid Cap
Mirae Asset Emerging Bluechip Fund – 5K
Debt Fund – 10 K
– Short Term
ICICI Prudential Savings Fund – Direct Plan – 5K
DHFL Pramerica Short Maturity Fund – Direct Plan – 5K
Questions:
1) Could you kindly guide me if my portfolio is in sync with my goals?
2) How much returns should i expect with this portfolio over the next 15 years?
3) Would you recommend any changes to my portfolio?
It would also be helpful if you could share any other investment avenues.
I highly appreciate your guidance. Thanks
Basavaraj Tonagatti
Dear Abhi,
Sadly the whole financial planning could not be possible with a mere few lines of your sharing.
Mihir
Hi Basuji,
I am the regular reader of your blog and your article are also very transparent to understand.
i have one query as below for small cap fund,
currently i have SIP in Franklin smaller comp which was closed due to some error from Franklin side, now i have to start SIP again, hence should i continue with same or L&T emerging business fund is good, i am in dilemma for the same.
Amount investment should be 3k for small cap SIP.
I have all the asses allocation and everything.
Kindly suggest
Basavaraj Tonagatti
Dear Mihir,
Without knowing your time horizon, goal details and other investments, how can I BLINDLY suggest anything?
Mihir
Hi Basu,
My time horizon is for 10 years and regarding the other investment, i have debt and equity 40:60having PPF/FD and for equity have SIP on large cap/ELSS/midcap.
Basavaraj Tonagatti
Dear Mihir,
Then what is your doubt now? Can you elaborate more?
Mihir
Hi ,
My doubt about to choose the fund, as i mentioned my SIP of Franklin Smaller comp has been closed due to some error, hence now i have to register new SIP, so now i am in dilemma to select same fund or should i go with L&T emerging business fund??
kindly comment
Basavaraj Tonagatti
Dear Mihir,
Select the same.
Mihir
Thank you
anil yadav
HI Sir,
I want to start a SIP in these funds
Franklin India Blue chip fund–4000
ICICI pru value discovery fund—4000
Franklin India Prima fund–2000
As I am beginner I am following u.
I want to invest for 10 years.
Thanks
Basavaraj Tonagatti
Dear Anil,
Why one more and why not in same existing funds? It is hard for me to guide without knowing what asset allocation you did.
anil yadav
Hi Sir,
I want to start 2 SIPs of 10000 each and my horizon is of 10 years or more. Please suggest me which fund I should choose.
Basavaraj Tonagatti
Dear Anil,
Why two SIPs? What asset allocation you are following?
deepak
Hello,
I am currently investing in below funds for last 1.5 year
HDFC balanced fund -2k (Direct)
Franklin India Prima Plus -2k (Regular)
Franklin Smaller Comanies Fund -2k (Direct)
My Expectation is to get good return after 10 years time. Currently I want to invest another 10K in MF- So How to distribute it among the funds? Or should I go for some new Fund ? Please suggest
Basavaraj Tonagatti
Dear Deepak,
Where is debt allocation?
deepak
Sorry missed that to inform you in first place. I am having a Pf+ppf account for 10k total.
Basavaraj Tonagatti
Dear Deepak,
If you are confident of asset allocation did properly based on the time horizon of your goal, then stick to one large cap and one mid cap. You no need to go for balanced funds or small cap funds.
Raj
Hello Basu,
Thank you for your blog. Earlier I received help from you. I started a SIP 6 months ago with eq to debt ratio of 70:30 (long term investment, for 14 yrs). Now thinking of increasing the SIP by Rs 2 k.
The funds I invest (all direct fund):
1. ABSL Frontline Equity G: Rs 5200
2. Franklin India Prima Fund G: Rs 3900
3. IDFC UST Fund G (now changed to IDFC low duration fund): Rs 3900.
So I increase without altering the 70:30 as follows:
1 to Rs 6000, 2 to Rs 4500 and 3 to Rs 4500.
Can you please suggested me ? is that fine?
Thanks and regards, Raja.
Basavaraj Tonagatti
Dear Raj,
Go ahead.
KUMAR
Hi Basu,
I have SIP in Tata hybrid equity and UTI midcap fund since 2016. Should I continue or exit from these funds ?
Basavaraj Tonagatti
Dear Kumar,
How can I say that without knowing much about your financial life?
shrinidhi
Hi Basu,
What is your opinion on Parag Parikh LT Equity -Reg-G fund?
Basavaraj Tonagatti
Dear Shrinidhi,
This is a multi cap fund with a current majority of holding is in large cap. If you have invested already, then continue.
shrinidhi
along with SBI blue chip fund, can we go with parag to balance portfolio
Basavaraj Tonagatti
Dear Shrinidhi,
Hard to say to go or not. But check the portfolio overlap also.
Sumit
Hi ,
I intend investing a lumpsum of Rs 10,00,000 for a horizon of 12-15 years in HDFC balanced fund. The goal is my son’s college education. What do you recommend should I go for a single fund or I should diversify this amount into smaller funds. Thanks
Basavaraj Tonagatti
Dear Sumit,
Treat Balanced funds like pure equity product. Hence, do the asset allocation like 40:60 between debt and equity. For debt, use either PPF or Ultra Short Term Debt Funds. For equity, one large cap fund and one mid cap fund enough.
S K Srikanth
Hi Basavaraj
I invested X amount in one fund and returns are 11% approx and return profit is 4k .Here average age days is 98 days.
However i invested LESS than X amount and returns are same 11% and here profit is 8k. Here average age days is 136 days.
if return % is same 11% for both funds and though in second fund invested less than first fund and same XRR formula applies for all funds of different MF house why difference in profit .is it because of average age days??
IF yes i have a question.if we switch funds every 2 or3 years say for example..then average age days will be less in new fund though we invest lumpsum switch of old fund to new fund. Then do we get less compounding effect like above example of 4k and 8k ??please explain
Basavaraj Tonagatti
Dear Srikanth,
See the difference of “N” in both the cases. Yes, due to days differences the profit amount is different. When you switch the fund, then you have to consider your investment portfolio returns from the original first investment to last withdrawal date (ignore the days where you switch from one fund to another).
kavitha
I have been investing in direct mutual funds through SIP. I am planning to contine this for another 15 years. do i need to change any funds?
1. L&T emerging business growth- 3000.
2. ICICI pru bluechip growth-2000
3. Motilol oswal focused multipcap 35 growth-1000
4. Mirae asset emerging bluechip growth-1500
Basavaraj Tonagatti
Dear Kavitha,
First do the asset allocation between debt and equity and then the rest of the discussion.
Alpesh Patel
Sir,
I am investing since last 3 year as per below SIP portfolio_ Direct ( Growth). I was planned for 7-8 year horizon
1. ICICI focused bluechip fund: 1500 Rs
2. ICICI value discovery fund: 1000 Rs
3. Franklin india smaller co Ltd: 1000 Rs
4. HDFC balance fund: 1500 Rs.
I am reviewing first time above portfolio. Pl. look into it and guide me on below query
1. would I continue this portfolio for long term another 3-4 year horizon?
2. Your opinion about ICICI value discovery fund
3. I want to increase 3000 Rs sip. which fund to select ?
Your opinion shall be highly appriciated
Regards,,
Alpesh Patel
Basavaraj Tonagatti
Dear Alpesh,
If your time horizon is 3-4 years, then stay away from equity.
Alpesh patel
it is another 3-4 year means total can be goes beyond 8-10 year. pl. advice
Basavaraj Tonagatti
Dear Alpesh,
If that is the case, then first do the asset allocation as per above post at first.
Alpesh patel
1. ICICI focused bluechip fund: 1500 Rs+1000 Rs: 2500 Rs
2. ICICI value discovery fund: 1000 Rs+1000 Rs: 2000 rs
3. Franklin india smaller co Ltd: 1000 Rs
4. HDFC balance fund: 1500 Rs.+1000 Rs: 2500 Rs
Pl. look into it and clarify my qurry
Basavaraj Tonagatti
Dear Alpesh,
Where is your debt allocation and what is the ratio you are following?
Alpesh patel
debt investment are 80000 Rs per annum in PPF. ratio is 50:50
Basavaraj Tonagatti
Dear Alpesh,
In that case, continue ICICI Pru Bluechip. Rest of the funds not required. However, if you want, then add one mid cap fund from above list.
Krishna
Hi Basavaraj,
I need some help in calculating retruns. For example till now i invested 67000 in one fund house and earned 10.25 % return .So according to calculation 10.25% of 67000 is 6867.5, But mutual fund house is displaying return /profit as only 3858.63.Why so?? could you please explain me.
Thanks
Prasanna
Is it sip or lumpsum investment?
krishna
its SIP
Prasanna
In sip u calculate through Rd interest calculator, in lumpsum u calculate through FD calculator
Basavaraj Tonagatti
Dear Krishna,
How you calculated returns? Use XIRR of excel sheet to calculate the returns.
Satya
Hi Basavaraj,
Need some advise in MF investment. I am investing in many funds for 15-20 years horizon but many went underperformed. i am investing from more than 2 years.So planning to planning to invest in Sip planning to invest in Sip in below funds.
LargeCap
Franklin India Bluechip
ICICI Pru Focussed Bluechip
Midcap
HDFC Midcap Opportunties
Franklin Inndia Prima Plus
Small Cap
DSPBR Micro cap (now DSPBR Small Cap)
Franklin India Smaller Companies.
Also want to redeem old amount invested these 2 years and invest in lumpsum in above mentioned largecap and midcap and smallcap
Debt already investing 30% and my goal horizon is 20+years.
Basavaraj Tonagatti
Dear Satya,
How can you judge the fund performance within starting investment of 2 years? How you judged?
Satya
Dear Basavaraj,
its more than 2 and half years actually.So is it advisable to redeem amount invested till now and invest lumpsum in above funds?
Basavaraj Tonagatti
Dear Satya,
From when it started to underperform? Whether you tried to identify the reasons?
Satya
Dear Basavaraj,
The reason is i am investing in 22 different funds, over diversification which leaded to not able rto track performance accurately.So now i want to stick to only 6 funds in portfolio of 3 largecap, 2 midcap and 1 small cap for time horizon of 30-35 years.
Also i want to redeem whole funds in 22 different funds and invest lumpsum in these 6 funds below. Please CONFIRM if i can invest LUMPSUM of old amount (invested in 22 funds earlier) into below 6 new funds .
LargeCap
Franklin India Bluechip
ICICI Pru Focussed Bluechip
ABSL Frontline Equity
Midcap
HDFC Midcap Opportunties
Franklin Inndia Prima Plus
Small Cap
Franklin India Smaller Companies.
Basavaraj Tonagatti
Dear Satya,
What allocation you want to provide for these 6 funds and what allocation you want to provide for debt and equity?
Satya
Hi Basavaraj,
Want to allocate Rs 10k per fund . Also please tell if i can switch old funds as lumpsum into new funds.
The debt to equity ratio is 25:75
Basavaraj Tonagatti
Dear Satya,
If the existing funds are good, then go ahead. If no, then yes do the lump sum switch into new funds.
krishna
Hello Basavaraj
DSPBR smallcap (micro cap earlier) is giving negative returns currently.But you stated above funds perform well in market down conditions also.So can you pls explain if i can continue in this fund as my horizon was 30 years and am investing from past 2 years
Basavaraj Tonagatti
Dear Krishna,
CURRENTLY means since how long?
Krishna
From March this year.Also last year i earned 9-10% on DSP BR MicroCap (DSPBR Smallcap now).This year inspite of no return and in turn last year 9-10% was gone and also entered negative returns.So will i can recover last year return 9-10% and this year say max 9-10% return, total 20% atleast by end of this year??
Basically when does the compounding happen is it on December 31st ? or March 31st for getting compounded returns
Basavaraj Tonagatti
Dear Krishna,
This is the beauty of the equity or you may say the sadness of equity. Don’t expect returns like Bank FDs. There is a volatility always in the market. If you can’t digest, then simply stay away. Also, it is wrong to judge the fund based on it’s monthly performance.
Krishna
Ok Basavaraj,
DSPBR Microcap fund is giving negative more than a month nearly 5-6 months.But can i continue still as per your advice?
Also , when does the compounding returns happen on which date??they say yearly Compounded returns right in Mf,Basically want to know the date or month or atleast in period of yearly compounding .
Basavaraj Tonagatti
Dear Krishna,
5-6 months are not enough to judge the fund’s performance. Hence, I suggest you to continue. Regarding compounding, I think you completely misunderstood the concept of how it works. Please read about this completely.
krishna
Dear Basavaraj
Please guide me for understanding compounding at what time .Mention any article or link for same
Basavaraj Tonagatti
Dear Krishna,
There is no specific month or year to ANNOUNCE the compounding. I think you have to understand the basics of COMPOUNDING at first (which you have learnt during your High School level).
Srikanth
Hi Basavaraj,
I could see the above mentioned funds few of them in Rank4 .So confused.
My horizon is 30-35 years.
Planning Portfolio like in below 6funds of Rs 10000 each of total 60 k per month
LargeCap
Franklin India Bluechip
ICICI Pru Focussed Bluechip
Midcap
HDFC Midcap Opportunties
Franklin Inndia Prima Plus
Small Cap
DSPBR Micro cap (now DSPBR Small Cap)
Franklin India Smaller Companies.
Also Please tell me about HDFC Smallcap, Relaincesmallcap and SBI smallcap as they are top ranked currently
Please tell me
Srikanth
Hello Basavaraj,
For Debt i am investing in PPF of Rs 150000 per year (full limit of section 80c and VPF to some extent).
Basavaraj Tonagatti
Dear Srikanth,
Both PPF and VPF are not bad. But the only thing you must take care of is that-DON’T INVEST 100% of your investable surplus in debt products and also the goal time horizon must match the maturity of such products.
Basavaraj Tonagatti
Dear Srikanth,
May I know RANKED means as per you?
Srikanth
H Basavaraj
Like in moneycontrol website HDFC SmallCap,SBI smallcap and Reliance smallcap They are ranked no 1,2 and 3 according
to CRISIL
Basavaraj Tonagatti
Dear Srikanth,
Do you change frequently the funds as and when these portals change rankings?
Srikanth
No, but want to follow your funds
Basavaraj Tonagatti
Dear Srikanth,
Don’t follow my funds also. Just keep in mind that star ratings change frequently and hence it does not mean that we churn our portfolio so often. At the same time, no fund on this earth remained top forever. You have to give enough time to fund. If the fund is consistently (say for around 1-2+ years) underperforming, then take a call.
Srikanth
ok, So want to follow your portfolio as mentioned above.
LargeCap
Franklin India Bluechip -10K per month
ICICI Pru Focussed Bluechip -10K per month
Midcap
HDFC Midcap Opportunties-10K per month
Franklin Inndia Prima Plus-10K per month
Small Cap
DSPBR Micro cap (now DSPBR Small Cap)-3K per month (not accepting new sip)
Franklin India Smaller Companies.-10K per month
and HDFC balanced turned into HDFC Hybrid Equity-7K per month.
Please suggest if i can continue in above funds.
Basavaraj Tonagatti
Dear Srikanth,
Don’t follow me blindly. But learn at first and then accept. Regarding above portfolio, I enter into small cap only if my goal is more than 10+ years and that also not more than 20% of my equity portfolio. Also, if you are managing debt and equity separately, then no need to go for hybrid funds.
Srikanth
Dear Basavaraj
Thank you.But went through the concept and understood for somewhat and planning to invest in earlier mentioned funds.
Also i am maintaining debt seperately in PPF and regarding smallcap horizon is more than 30 years.So please tell me if i can continue in above funds
Basavaraj Tonagatti
Dear Srikanth,
If your time horizon is more than 30 years, then include a small portion of small cap (not more than 20%).
Kumar
Sir, I am starting investment 21500/- per month SIP
Here is my plan. Sir, Please tell me , is this a winning protfolio to creat 1 core in 13 yrs with yearly increasing 5 % of SIP amount.
Multicap-60%
Axis Focused 25 Direct-G 20%
ICICI Pru Bluechip Direct-G 20%
Invesco India Contra Direct-G 20%
MidCap-30%
HDFC Mid-Cap Opportunities Direct-G 30%
larcgeCap-10%
ICICI Pru Value Discovery Direct-G 10%
Please help.
Basavaraj Tonagatti
Dear Kumar,
Whether you read my above post properly (especially about asset allocation)?
Kumar
Thanks Basu for quick response.
Correction:
Pru Bluechip Direct-G 10% (LargeCap)
ICICI Pru Value Discovery Direct-G 20%(MultiCap)
I want to keep My Debt: Equity ratio nearly 50%:50% and increasing Equity portfolio 5% every year to cross 30:70 as progress with time . My age is 34.
For Debt :
PPF=12500/- per month
SSY=10000/- for Daughter Higher Education
MF(ultra Short term +Liquid fund ) 1 time=5 lac for emergency/unexpected expenses
Savings A/C=1 Lac
I am very much new to Equity . Please tell whether my choice of funds were correct for Equity MF investment .
Basavaraj Tonagatti
Dear Kumar,
Asset allocation is fine. But I usually avoid Multipcap. Instead, I go with Large Cap, Mid Cap and Small Cap separately.
Kumar
Thank You , But What is the Risk associated with Multipcap for longer period as you avoiding these plans?
Basavaraj Tonagatti
Dear Kumar,
It is not the risk but their mandate to move to any market cap as per the fund managers view. In a certain point, knowingly or unknowingly we may have higher exposure to the particular market cap. Hence, I avoid.
Pianki
Dear Sir,
I want to invest 10000 as SIP in the funds where highest return can be obtained and ready to take high risk. Please suggest funds in 5-10 years horizon.
Regards,
Pinaki
Basavaraj Tonagatti
Dear Pinaki,
Please define what are the meanings of HIGHEST RETURN, HIGH RISK and time horizon 5-10 years (there is a huge gap of 5 years of what you mentioned).
Pinaki
Sir,
I mean higher returns. High risk is acceptable. for higher return purpose. Duration. 5-7 years. regards
Basavaraj Tonagatti
Dear Pinaki,
I need specific meanings of what do you mean by HIGH RETURNS and HIGH RISK?
Sunil
Hi Basu,
Can you share a list of top 5 small cap mutual funds?
Thanks,
Sunil.
Basavaraj Tonagatti
Dear Sunil,
In above list I have included the small cap funds also. You can just consider them.
sravan
Hi Basu,
Thanks for providing this platform.
I have couple of questions regarding switching to new fund from old fund.
Suppose i am investing in a fund for last couple of years and its not doing well hence i wanted to switch to better performing fund. so,
1.What to do with old fund amount? It should be invested lumpsum in new fund?
2.Also,if i stop old fund and start new one,then whether i loose the benefit of starting early where market was lower than the starting of new fund where market is higher ?
Can you please clarify my doubts.
thank you in advance
regards
Sravan
Basavaraj Tonagatti
Dear Sravan,
1) Switch in one go with a lump sum in a new fund.
2) You never lose the benefit of starting early. Because you are not withdrawing money but transferring to the new fund.
Amit
Hello Basu,
My self Amit, My age is 30 and I want start investment. As per my understanding through your blog I am investing in the below: Please suggest me is it right or not?
My goal is for 10 to 15 years
Fund Scheme: Monthly
PPF: 3000
Long term equity:
1. SBI Blue chip fund-Direct growth :2000
2. HDFC Midcap Opp Fund(G) :2000
3. Mirae Asset Emerging blue chip-Direct Plan :1000 for 5 years
Basavaraj Tonagatti
Dear Amit,
If your goal is 10-15 years, then why Mira fund only for 5 years?
Amar
Hi sir
I’m investing through sip in a large cap,mid cap,equity oriented balanced fund each 1000 per month.i need this after 10 years.is this portfolio allocation correct.pls do suggest me.
Basavaraj Tonagatti
Dear Amar,
What asset allocation you are following between debt and equity?
Somenath Ghosh
What is your take on SBI Small Cap fund? VR has rated this fund as 5 Stars and also other risk parameters look good. Since this fund opened fresh SIP intake again, should I take it? Investment horizon: > 7 years with SIP of 2000 expecting 17-19% return.
Basavaraj Tonagatti
Dear Somenath,
What you do if the same VR rate it to SINGLE star after your investment?? If your time horizon is 7 years, then don’t include small cap fund in your portfolio. Expecting 17-19% returns?? GOD BLESS YOU.
Shahnawaz Ahmad
Hi Basu what does it mean by having CRISIL MF RANK as 1 , What does it means
Thanks
Basavaraj Tonagatti
Dear Shahnawaz,
Never invest based on the rankings.
Shahnawaz Ahmad
Hi Basu the name of Kotak Select Focus Fund is changed to Kotak Standard Multicap Fund , what is category of Fund is it Large Cap or Multicap as name sounds
I have checked in Money control and it says, FUND CLASS : Large Cap Please advise
Thanks
SA
Basavaraj Tonagatti
Dear Shahnawaz,
It is a multi cap fund but as it has the mandate to move any market cap as per the fund manager’s decision, currently it is heavily under large cap.
Shahnawaz Ahmad
Hi Basu please share your thoughts about Kotak Nifty ETF the returns areattarctive , what are your thoughts on this fund
http://www.moneycontrol.com/mutual-funds/nav/kotak-nifty-etf/MKM321
Thanks
Basavaraj Tonagatti
Dear Shahnawaz,
I am not fond of ETF. You will get such index funds easily.
Shahnawaz Ahmad
Hi Basu what is the reason for this , I mean why you dislike them
Basavaraj Tonagatti
Dear Shahnawaz,
Liquidity and broking charges. Also, our index is not so old and matured that we just follow it. You can choose index funds rather than ETFs.
Chandra Bhanu Rastogi
Hi,
Thanks for the guidance.
Below is my and my wife’s portfolio which I’m planning.Our 2 goals are after 8 years and other 3 goals are after 16, 25 & 32 years. Please suggest if you would make any change if you were me.
My Portfolio:
1)Mirae Asset India Equity Fund-Reg(G) (Large Cap)— 40%
2)Motilal Oswal Multicap 35 Fund-Reg(G)(Multicap)– 20%
3)HDFC Mid-Cap Opportunities Fund(G)(Mid-Cap)- 20%
4)Franklin India Smaller Companies Fund(Small Cap)–20%
Wife Portfolio:
1)ICICI Pru Focused Blue-chip Equity Fund (Large Cap)—20%
2)Franklin India Prima plus(Multicap)– 20%
3)Mirae Asset Emerging Bluechip-Reg(G)(Mid-Cap)- 30%
4)Franklin India Smaller Companies Fund(Small Cap)– 30%
Above investment is 80% (equity part)of total Monthly Saving Required. Rest 20% we will invest in debt instruments.
Basavaraj Tonagatti
Dear Chandra,
I think better to increase the debt allocation and reduce to the extent of around 70%. Also, I don’t think you need multi cap funds as you already separated with each market cap fund ralted funds.
Chandra Bhanu
Thank you Mr Basavaraj,
I have rearranged fund allocation in 30:70 ratio. I will also remove Multi cap funds from our portfolios and divide whole equity portion (around 40K in each portfolio) in to 3 funds belong to each market cap. Thanks for your suggestion. Please warn me if you don’t see it a right way of investment.
Basavaraj Tonagatti
Dear Chandra,
I already aired my views.
Prasanna
All of my mutual fund investments are through Franklin Templeton,,, should I require to change some portion to other companies?
Basavaraj Tonagatti
Dear Prasanna,
If funds are suitable to your requirement and they are doing good, then why to worry?
Sanjeev kumar
Hi Basu ,
My name is Sanjeev and I am 42years old my assest allocation is 60:40(Debt:equity)and goal is to create Retirement corpus and for children education after time span of 10 years currently I have started SIP in following instrument
1. 2000 SBI BLue chip(large cap)
2.1000 UTI Retirement benefit pension fund R
3.1000 Franklin smaller companies fund.
Further I want to start new SIP of 1000 PL suggest weather to start in Multicap or in Midcap
Basavaraj Tonagatti
Dear Sanjeev,
Why UTI Fund? Where is your debt portfolio?
Sanjeev kumar
Sir, For Debt I am investing in EPF,PPF
Basavaraj Tonagatti
Dear Sanjeev,
Then one large cap and one mid-cap enough in equity.
Sanjeev kumar
Sir , Thank u for response one more thing Is UTI is good fund for long run or should I exit from that fund?I have just started in that fund.
Basavaraj Tonagatti
Dear Sanjeev,
If you just started then give some time to understand the fund.
P Gopal
I am around 50 years old and have taken early voluntary retirement. Most of my investments are in FD, PO etc. I would like to invest around Rs. 40 lacs in MF with a time horizon of 5 to 7 years. I expect a post tax return of 10 to 12% and am willing to take low to medium risk. Would be grateful if you could guide me in selecting the MFs and whether I should investment in lumpsum or across a horizon of 1 to 2 years. Thank you.
Basavaraj Tonagatti
Dear Gopal,
Your expectation is too high when we consider your time horizon. I suggest you to stick to the same DF or PO etc or try with Liquid or Ultra Short Term Debt Funds BUT NO EQUITY.
pappu
Hi Basu,
I am 37 yrs. I am an avid follower of your post. I thank you immensely for the same.
My goal is buying a house within 5 yrs. Started SIP in following funds for last 1 yr.
Debt funds – 25000/month as,
1. Birla sunlife Floating rate long term (D) (G)- 15000
2. SBI magnum gilt short term (D) (G)- 10000
The annualised returns are 6% and 4% respectively. (I anticipated around 6to 7%)
Please give your opinion on,
1. Is it OK to continue for this year also? (I am reviewing after a year)
2. Should I need to stop my SIP in SBI magnum gilt short term? (return is only 4%)
Thank you in advance
Basavaraj Tonagatti
Dear Pappu,
Switch to Liquid Funds or Ultra Short Term Debt Funds.
pappu
Hi BASU,
Thank you for your response.
I will switch my SBI gilt short term to liquid fund.
Ravi
Hi,
I started investment in following MFs with SIPs of Rs 2000 each group last month. My Goal is Wealth Creation.
1. Reliance Small Cap Fund [Direct]
2. L&T Emerging Businesses Fund [Direct]
3. Motilal Oswal MultiCap 35 Fund [Direct]
4. Tata India Consumer Fund [Direct]
Will they give a good returns, if I continue to invest for a min of 10 years? How to analyze if they are not performing good & what are the actions required at that time?
Kindly suggest it.
Basavaraj Tonagatti
Dear Ravi,
What prompted you to doubt your own decision which you too JUST last month? How you selected these funds? What asset allocation you are following?
pappu
Hi Basu,
Kindly write a post on,
HOW TO REVIEW THE PORTFOLIO OF INVESTMENT?
Thanks in advance.
Basavaraj Tonagatti
Dear Pappu,
Surely I will write.
pappu
Hi Basu,
Good morning. Kudos for your great work.
I am 37, last year started investing for my 10 yr goal of child education. (SIP of 10000/month)
Debt:Equity 40:60
Debt as, Birla short term fund (D) (G)- 4000/MONTH
EQUITY as, Large:mid:small as 60:30:10
Large cap – ABSL Frontline equity (D) (G)- 3600/MONTH
Mid cap- HDFC mid cap oppurtunities (D) (G)- 1800/MONTH
Small cap- Franklin india smaller companies (D) (G)- 500/MONTH
I am reviewing my portfolio at 1 year, I have found that Large cap (Birla) is underperforming as compared to peers and Bench mark.
What should I do now?
Continue same/ Change LARGE CAP FUND/ Change asset allocation within Equity
Kindly guide me. Thanks in advance.
Basavaraj Tonagatti
Dear Pappu,
Never judge a fund within a year. Also, never compare peers but compare the benchmark. If the fund consistently underperformed, then think of switch.
pappu
Thank you for your quick response.
I shall continue the SIP and reassess after 6 to 12 months. Is it OK?
Basavaraj Tonagatti
Dear Pappu,
YES.
Suru
Sir
Sbi small cap fund is opening for fresh subscription. Can you
Guide whether to start sip in it. Iam having running sip in dspbr smallcap and want to discontinue.
Basavaraj Tonagatti
Dear Suru,
You can start in this fund.
Suru
Thanks a lot sir. Registered sip frim 1/8/2018 (until cancelled).
Sir, Iam eagerly waiting for your article on best MFs
post-recategorisation scenario. TIA
Basavaraj Tonagatti
Dear Suru,
I hardly change my stances on the funds.
Jatin
Dear Sir,
I have small questions to know, Kindly help me on this.
I had started investment in HDFC Long term Advantage – growth (1000 monthly) from last 2 years.
Can you please describe about the same.-
1. Good or bad
2. profitable after 6 or 7 years or more
3. Should I stop investing.
4. any charges if stop continuing the same.
5. If switch plan then to which plan.
6. Should i withdraw the same anytime when money needed in emergency.
Basavaraj Tonagatti
Dear Jatin,
I am unaware of your goal and your asset allocation, then how can I BLINDLY guide you?
Jatin
Ok Sir,
1. I am from a middle family so i started the investing.
2. I am not withdrawing right now, but if something went wrong so i need to withdraw the same amount.
I just wanted to know if i withdraw in 2021 or 2022 what amount that time I receive.
Basavaraj Tonagatti
Dear Jatin,
What expectation is there in your mind?
Jatin
Yes sir, atleast the amount which I invested with 10%
Basavaraj Tonagatti
Dear Jatin,
First read above post properly (not about funds but how to do planning), then if you still have doubts, then we discuss.
Nikunj
Dear Sir,
I have started SIP 1 year ago. My portfolio consisted of following funds
Reliance banking fund
Reliance Small Cap Fund
HDFC Capital Builder Fund
Aditya Birla Pure Value Fund
All divided in equal proportion.
Also I have invested in ELSS lumpsum
Aditya Tax relief 96
Reliance tax saver
Should I continue with the above fund or I should reshuffle the funds.
Also please suggest banking fund’s nav are low in comparison to market trends. Should I invest more in banking fund keeping in mind returns in long term.
Basavaraj Tonagatti
Dear Nikunj,
How can I say without knowing your financial goals, what asset allocation you are following and how you selected these funds?
Nikunj
Dear Sir,
1) Basis of selection – Reliance banking fund (sector had positive prospects)
reliance Small cap ( for higher return)
HDFC Capital buildier ( Diversified fund for managing the risk)
ABSL Pure value (small cap for higher return)
Tax Saver scheme ( for tax saving purpose having least lock in period and avg return
higher than debt instruments)
Relaince and ABCL tax relief ( 50:50) (for diversification purpose)
2) Time Horizon – 6-7 years
3) Assets Allocation – 70% Debt instruments 30% Equity funds (Want to increase allocation to equity fund but due to lack of knowledge and experience still slow in investing in equity)
4) Sir also suggest should I invest more in banking fund keeping in mind long term scenerio
Basavaraj Tonagatti
Dear Nikunj,
None can time the market or time the sector and win. If you are doing the same, then you are not an investor. Never do same. Set your expectation from the investment and accordingly do asset allocation and start investing. If your time horizon is around 6-7 years, then you just need a one large cap fund. You are risking your investment with running behind sector funds and small cap funds.
Such theme or sector funds are innovative ideas of mutual fund companies to garner more and more AUM from investors.
Tejinder Singh
Hello Basu Sir,
Thanks for the advice through the years now and I am happy with the way my portfolio has performed based on your inputs.
Unfortunately, at the beginning, I randomly purchased 2 or more funds in the same category and need your advice to consolidate now. Following are the details.
My horizon is long term and 18 Years away. Want to invest 50K monthly in Mutual funds apart from 20K monthly in Debt and PPF
ELSS – 3 funds – 7K
Axis long term equity -3K
Reliance ELSS – 2K
Franklin ELSS -2K
Small Cap – 2 Funds – 7K
Franklin Smaller companies – 4K
Reliance Small Cap – 3K
Bluechip – 1 Fund – 4K
ICICI Focussed bluechip fund
Multicap – 1 Fund – 2K
Franklin India Prima Plus Fund
Basavaraj Tonagatti
Dear Tejinder,
Retain Franklin in ELSS. In case of small cap, again retain Franklin Fund. Rest of the funds are fine to me. But do remember that to do proper asset allocation between debt and equity and also review the portfolio once a year.
Tejinder Singh
Thanks Basu for the guidance, will do as suggested.
ARUN RAVI
Sir,
1.HDFC MIDCAP OPPORTUNITIES
2.MIRAE EMERGING Blue-chip FUND
I have SIPs in both these funds.Overlapping is below 15%.Whether it is good idea to continue both SIPs or stop one. If one is to be avoided, I prefer MIRAE TO EXIT.
Thanks
shrinidhi kulkarni
HI Basu,
In terms of returns and risk which factor which is better option ..
Mutli cap or Mid cap . Or both we can invest equal amount for long term (7-10) years
Satyajeet
Hello Sir,
Thanks for the detailed information its really helpful.
But one quick question, when i checked the returns for the funds you have mentioned in the Large,Mid& Small cap categories in other websites like Money Control, Value Research , etc looks like the return value for 1yr,3yr,5yr & 10 yr doesnt match. from where are you getting these details ? are you using some other tools to get the returns calculation for these tenures ?
Basavaraj Tonagatti
Dear Satyajeet,
Check when I published the article to the date on which you are checking the returns on these portals.
Hari
Hi Basu,
Many thanks for answering my queries in last two years.
I am 32 years old. Moderate risk profile. This is my second year completion of financial accumlation phase considering 78% equity and 32% Debt allocation. I am rebalancing my asset allocation once in a year .
Goal:
1. Retirement – 18 years from now
2. Daughter’s education – 12 years from now.
Debt investment – EPF & VPF – (32%)
Equities ( All are Direct Growth plans)
1. Large cap –> SBI Blue Chip – 40%
2. Mid cap –> Mirae Asset Emerging Blue chip -30%
3. ELSS/Multi cap –> Birla Taxelief 96 – 20%
4. Small Cap –> Franklin India smaller Companies – 10%
I have following queries.
1. Considering the major changes by SEBI, still am I okay to continue my investments in my above plans? Please suggest in case of any changes.
2. How much money will be required to acheive the retirement safely. My current monthly expense will be Rs 40000 including EMIs.
Loan amount remaining is 11 Lac. For that how much I need to invest considering my asset allocation.
Kindly advise
Basavaraj Tonagatti
Dear Hari,
1) SEBI changes made it clear for you and me about the portfolio of the funds. Hence, if funds sticked to the same mandate then continue. If there are any deviation which you feel uncomfortable, then switch accordingly.
2) Use the online calculators and arrive at the values.
Hari
Thanks Basu, when we switch AMCs allowing us with free exit load, How about the units redeemed before 1 year with govt? Will that be considered as a capital gain and to be declared in our IT returns?
Basavaraj Tonagatti
Dear Hari,
Whenever there is a change, AMCs will send and also sending emails to customers by providing you the window to switch without any exit load. However, regarding taxation, there is no such exemption.
Vinayak Telkar
Hi Basu,
I am planning to do SIP on above for 10 to 15 yrs for 10k Month. I saw you referred 10 MFs
1) Can I invest 1k per/MF/Month
Or
2) Can I invest 2K per/Month on selecting best 5 among ur 10MF list.
If you suggest me to go on 2, then please suggest TOP 5
Basavaraj Tonagatti
Dear Vinayak,
Refer my above post properly. The number of funds does not matter. What matters is the proper asset allocation as per your time horizon.
Abhi
Basu ji which will be better multicap sbi magnum or mirae asset…
Basavaraj Tonagatti
Dear Abhi,
Hard to say BLINDLY without knowing for what purpose you are asking this.
Abhi
Sir, i am rearranging my portfolio. I will have 2 large cap sbi blue chip nd icici pru focussed. 1 balanced franklin balanced and i need 1 multicap…investment period up to 10 yrs
Basavaraj Tonagatti
Dear Abhi,
Why you felt that there is a need of Multi Cap Fund?
Shahnawaz Ahmad
Hi basu I hope you are doing well !
Can you please share your expert comment on Kotak Select Focus Fund – Direct (G) , and can one consider it now over Franklin India Bluechip Fund & ICIC prudential focussed bluechip fund
Thanks in advance !
Basavaraj Tonagatti
Dear Shahnawaz,
I think I already replied to it that you can consider.
Shahnawaz Ahmad
Hi Bashu
How are you
Please share your thoughts about Kotak Select Focus Fund – Direct (G) can we consider it above Franklin India Bluechip Fund & ICICI Pru Focused Bluechip Eqty (G)
Please share your comment keeping in ming time horizon of 10 years
Basavaraj Tonagatti
Dear shahnawaz,
Fund is doing good. Hence, you can consider it.
Prasanna
Sir, I m 35yrs old, working in a PSU… Father of 6 months old son.i m having additional rent income of RS.25000/- PM… Which I want to invest for long term (around 20-25yrs) for benefit of my child… Rent income may go up 5% annually.. Please suggest me better investment plan.
Prasanna
And I have zero knowledge in shares , mutual funds.
Prasanna
I m already having sufficient insurance coverage for my family so insurance plan is not required. Investment is required to gift to him when he want to settle.
Basavaraj Tonagatti
Dear Prasanna,
It is your money and you have to learn the basics. Otherwise, someone will come and cheat you.
Basavaraj Tonagatti
Dear Prasanna,
Refer above post properly.
Prasanna
I have referred your post, can you please suggest me is there any tax benefit if I invest in my wife name(house wife). Is benefit to invest in my name. I m tax payer,, salary income of RS.10.00 lakh p a and expected rent income of RS.3.00lakh p.a. hereafter.
Basavaraj Tonagatti
Dear Prasanna,
If the source of investment is from your salary, then due to clubbing provisions, the income earned by your wife from such investments will be your income.
Sanjeev kumar
Dear Sir,
i am planning to invest in mutual fund my time period for investment is 10 years and assets
allocation is 60:40(equity:debt) for debt part i am already investing in PPF and EPF and
for eauity part i have chossen three funds
1.SBI Blue chip-G(Large CAP)
2.Franklin Prima Plus Fund(Mid-cap)
3.HDFC Balanced fund(Balanced fund)
pl suggest weather the portfolio is ok or some modification req.
Basavaraj Tonagatti
Dear Sanjeev,
You can go ahead.
Sanjeev kumar
Sir, Thanks for reply, one more question weather ratio of investment in above fund 50:20:30 is correct.
Basavaraj Tonagatti
Dear Sanjeev,
Make sure small cap be at not more than 20% exposure.
Sanjeev kumar
Sir, Kindly give your valuable comments on TATA Retirement savings fund -modrate Thanks
Basavaraj Tonagatti
Dear Sanjeev,
Stay away from a product which is named as RETIREMENT or PENSION plans.
Chintu
Hello Basu,
I am planning to have this Fund as a SIP for at least 6 Years of Period Monthly.
My only concern is, should I wait for new categorisation or I can start with this allocations?
I have already Invested 20k in ICICI Focused Bluechip Equity Fund
Now I am planning to have SIP in this funds.
Invesco India Contra Fund – 1000
Mirae Asset Emerging Bluechip Fund – 1000
HDFC Balanced Fund – 1000
and Lumsum 15000 in SBI Magnum Gilt Fund – Short Term
Please advice your view, or Please suggest Fund to switch out.
Thanks,
Basavaraj Tonagatti
Dear Chintu,
If your time horizon is 6 years, then I suggest the asset allocation of around 70% in debt and only 30% in equity. First set that at right.
Chintu
Thanks Basu for quick reply,
I am in impression that If my investment horizon any where around 7-10 Years then Equity is more beneficiary. Thanks for correcting this.
I am now correcting this. Can you please suggest Is this correct?
I would Allocate more on HDFC Balanced Fund and Regular Investment in SBI Magnum Gilt Fund – Short Term.
So Investment folio would look at like
Monthly SIP In below Funds
HDFC Balanced Fund – 2000
Invesco Contra Fund – 500
Mirae Asset Emerging Bluechip Fund / HDFC MidCap Fund / LnT Mid Cap Fund – 500 (Any one from this)
And
Regular Yearly SIP
SBI Magnum Gilt Fund – Short Term – 12000
Thanks,
Basavaraj Tonagatti
Dear Chintu,
Whether you checked the portfolio overlap for equity? Also, treat the balanced funds as 100% equity.
Chintu
Thanks Basu,
For Quick response again.
Whether you checked the portfolio overlap for equity?
No I have not chacked, I just read some of Mutual Fund related post including yours and selected the folio, actually I am not aware of this.
balanced funds as 100% equity.
Ok,
So what could be your advice for 7-10 Years of time horizon.
Thanks,
Basavaraj Tonagatti
Dear Chintu,
There are many tools available to check portfolio overlap. Please check the same. If the overlap is more, then better to diversify your funds differently. Refer my post “How to compare Mutual Fund portfolio overlap?“.
Chintu
Hello Basu,
I have check your link and downloaded the Sheet, but I am not able to Run the xlsm file.
Does this require any specific Operating System?
How I can identify my fund as HDFC equity or Invesco Multicap?
Again looking for valuable feedback.
Thanks,
Basavaraj Tonagatti
Dear Chintu,
Alternatively you can use The Fundoo tool (if you are unable to understand the basics of excel sheet operation).
Chintu
Hello Basu,
I have check online from few tools and found that there is between 20-40% overlap between those schemes.
I am also seen that the excel is not able to capture invesco funds.
Basavaraj Tonagatti
Dear Chintu,
Check the overall portfolio overlap than Fund A with Fund B. Alternatively you can use The Fundoo feature also online.
Chintu
Hello Basu,
Yes, I have checked Same. I can see that there is less then 10% overlap for funds
Invesco India Contra Fund
L&T Midcap Fund /HDFC MidCap Opr Fund
HDFC Balanced Fund.
Should This Funds are good for 7-8 Years Investment Horizon?
Basavaraj Tonagatti
Dear Chintu,
In equity, I usually suggest one large cap (major chunk), mid cap (bit lesser) and small cap (least). Regarding Invesco, I can’t say anything as the fund is new.
Chintu
Hello Basu,
As I said.
I am having
ICICI Focused Blue Chip (Large Cap)
Invesco or Index Based Fund like ICICI Prudential Nifty Next 50 Index -G or SBI Magnum Multicap Fund
HDFC or L&T Midcap (Midcap – Please suggest which is better)
and HDFC Balanced Fund
SBI Magnum Gilt Fund – Short Term(Debt)
Thanks,
Basavaraj Tonagatti
Dear Chintu,
In your’s ICICI and a Multicap enough. I am not sure why you opted for HDFC (is it because of HYPE created towards Balanced Funds)?
Chintu
Hello Basu,
Yes, You are right. It is hype and New investors like me blown away with this hyped air. That is why true guidance provided by you is necessary.
So, According to you I must opt for One largecap about 50%, One Midcap (About 30%) and one multicap(About 20%)
Is this correct?
Thanks,
Basavaraj Tonagatti
Dear Chintu,
Yes, that much enough.
Chintu
Hello Basu,
Thanks for your reply and valuable feedback.
I need your last opinion. Since Overlap are more between Muticap and Large cap should I go with Index Based Fund? Or Please suggest bettwe fund. I have checked with both above multicap fund overlapping are almost 45%.
I have been starting SIP for
ICICI Pru Focused Bluechip Fund (1500)
HDFC Mid-cap Opp Fund or L&T Midcap Fund (800)
ICICI Nifty Next Fifty (500)
Thanks,
Basavaraj Tonagatti
Chintu-Check overlap once the funds complete the task of recategorization based on SEBI mandate. Then take a call.
Chintu
Hello Basu,
Ok, Once recategorization done. I will check overlap.
Thanks,
Chintu
Hello Basu,
Any Idea when this recategorization finally in effect?
Any last date guidelines by SEBI. I googled it but only able to see within 3 months from last notice issues that is in December.
Thanks
Basavaraj Tonagatti
Dear Chintu,
One by one all AMCs updating. Let us wait and it may be for another one month or so.
Chintu
Hello Basu,
I think, You should have post guiding the Fund as per new portfolio allocation because so many Fund has changed their PortFolios so above list might be Confusing to new comer like me.
Thanks,
Basavaraj Tonagatti
Dear Chintu,
But you check it the list. 90% of the funds are still in same category and there is no such big change in the funds which I recommended. But still, YES I will update and write a new post.
Aman
Hello Sir ,
I have chosen Mirae asset emerging bluechip fund for my Mid cap fund . But recently I came across that there is a reshuffle in its portfolio due to investment guidelines changes and has increased its allocation in large cap .
So is it something I have to worry about as it will behave more like a large cap .
Please advice …
Basavaraj Tonagatti
Dear Aman,
If you don’t want large cap, then simply switch to your desired fund.
Aman
Thank you for the reply .
Actually I already have SBI blue chip as my large cap fund and Mirae asset I have chosen for my mid cap fund. Now since it has increased its allocation in large cap will it provide good diversification on my portfolio considering I already have SBI blue chip ..
Please advise
Basavaraj Tonagatti
Dear Aman,
It creates overlap. Hence, better to retain one large cap.
Aman
Thank you sir .
BABA
DEAR SIR, JAI HIND,
I TRUST YOU ARE FINE. FEW DAYS BACK I REQUESTED YOUR ADVISE ON MY SIPs. KINDLY ADVISE ME PLEASE.
I STARTED SIPs 6 MONTH BACK WITH RS.500/- PM IN THE FOLLOWING FUNDS. NOW I CAME TO KNOW THAT MORE THAN 4-5 SIP ARE NOT GOOD. MY MAIN AIM WAS TO START SIP WAS TO CRATE ONLY WEALTH FOR MY SON. PRESENTLY I AM HAPPY WITH MY FINANCIAL STATUS. I HAVE SELF HOME AND ANCESTRAL PROPERTY TO LOOK AFTER MYSELF, SON AND WIFE. MY TIME HORIZON IS 8-10 YEARS. MY PRESENT SIPs ARE
A) SBI MAGNUM MID CAP FUND (G) – RS.500/-
B) HDFC TO 200 (G) – RS.500/-
C) HDFC MIP LT(G) – – RS.500/-
D) RELIANCE EQUITY OPPORTUNITIES FUND – RS.500/-
E) RELIANCE RSF BALANCE – RS.500/-
F) DSP SMALL AND MID CAP FUND – RS.500/-
G) BARODA PIONEER BALANCED MF – RS.500/-
H) ABSL MIP (G) – RS.1000/-
AND
I) I HAVE ALSO INVESTED RS.25000/- EACH IN FIVE BALANCED FUNDS I.E, ( HDFC, L&T, SBI, ABSL AND ICICI)
KINDLY ADVISE ME ON THE FOLLOWING POINTS PLEASE
(i) AFTER ON YEAR, WHICH SIP MF SHALL I CLOSE OR SWITCH TO ANOTHER MFs?
(ii) IN WHICH SIP SHALL I TOP UP?.
(iii) I ALSO PLANNING TO INVEST 5 LAKHS LUMPSUM AND START STP. IN WHICH MFs SHOULD I INVEST AND START STP?
(IV) YOU ARE ALSO REQUESTED TO ADVISE/GUIDE ME TO CREATE BEST SIP (EQUITY/DEBT/BALANCED MF) IN LARGE CAP, MID CAP, MULTI CAP. HYBRID EQUITY ORIENTED FUNDS) FOR NEXT 10 YEARS .
SORRY FOR ASKING YOU LOT OF QUESTIONS IN ONE GO.
– YOUR KIND ADVISE WILL HELP ME PROPER FINANCIAL PLANNING.
REGARDS,
BABA
Basavaraj Tonagatti
Dear Baba,
You started the SIPs just 6 months back. I don’t think it is worth for you judge the fund now and switch. Wait for another 1-2 years, then start reviewing. But before that what I saw has you missed the asset allocation as per the goal time horizon (refer above post for the same).
BABA
Dear Sir,
– Many many thanks for your swift reply. I am planning to top up in the existing fund. Kindly advise me in which SIP shall I top up.
Regards,
Baba
Basavaraj Tonagatti
Dear Baba,
Again such top need to set based on time horizon setting, asset allocation and then debt and equity fund choosing. Without knowing all these details, how can I guide you? Refer above post properly.
Adari rama bhadra rao
Hi, Can you please let me know what is the difference between ” EQUITY SAVING FUND and Balanced Advantage Fund.
I would like to invest 5L lump sum, for long run (10 years). Please suggest me which is the best fund which can offer less risk and moderate returns.
Basavaraj Tonagatti
Dear Adari,
Instead of referring old funds and their categorization, better to concentrate on new fund categorizations. Equity Savings Funds ideally invest around 1/3 in equity, 1/3 in derivative and another 1/3 in debt. Balanced Advantage Funds combines equity, debt and arbitrage in a single fund. These are the generic definitions. Hence, better you cross check the fund theme and portfolio before taking a call.
Regarding your investment, refer my post in detail to understand and how to move on.
Gaurav
Dear Basu,
Hope this message finds you well. I am interested in lump sum investment in MF.
Time horizon : 10 years and more.
Asset allocation : 70: 30 (For 70 % = Equity 30%- Midcap-30% -Small cap – 10%) (For 30Debt : PPF, FD)
Funds : Top MF in each category performed best in last 10 years.
Is this a good planning. Please advise.
Thank you for your time.
Kind regards
Gaurav
Basavaraj Tonagatti
Gaurav-It is good but in case of equity, spread your investment for around 5-6 months rather than entering in one go. For debt, you can go in one shot.
Gaurav
Thanks Bashu for your prompt reply and advise.
Kind regards,
Gaurav
shrinidhi kulkarni
Hi Basu,
My goal is goal is 5 years to 10 years
total investment per month –6000
I’m planing to start Sip for following
2k –RD
2k– debt-IDFC Ultra Short Term Fund
1—mid cap – HDFC Midcap Opp Fund
1-small cap – Franklin India Smaller Companies Fund.
Can you please suggest is that ok.. or do you want me to switch some other equity funds like balanced funds.
shrinidhi kulkarni
allocation is 60:40 .
Basavaraj Tonagatti
Shrinidhi-I suggest one large cap and one mid cap.
shrinidhi kulkarni
Hi Basu,
please look into my portfolio.
Aditya Birla SL Medium Term Plan — Debt- 2k
SBI Blue Chip Fund – Direct Plan—Large – 1k
Mirae Asset India Equity Fund —- Large – 1k
HDFC Mid Cap Opportunities Fund– Mid – 1k
time horizon -5 to 7 for Equity . 3 years for Debt.
Is that fine or need to change any thing.can you please suggest
Basavaraj Tonagatti
Dear Shrinidhi,
For 3 years use only debt (especially Ultra Short Term Debt Funds). For 5-7 years goal use equity to debt in ratio of 30:70.
shrinidhi kulkarni
Hi Basu,
Im bit confused .
As you said above if goal is from 5 to 10 years then Allocate debt:equity in the ratio of 40:60.
BUt now you have suggesting ratio equity to debt in ratio of 30:70.
please clarify to invest in Equity what time horizon we have to keep in mind .specially for large cap
Basavaraj Tonagatti
Dear Shrinidhi,
If the goal is around 10 years, then no harm in allocating 30:70 also.
shrinidhi kulkarni
so shall i change my profile now or shall i keep debt:equity .40:60 as i mentioned above. for 7 to 10 years.
Basavaraj Tonagatti
Dear Shrinidhi,
If your goal is 7 years, then stick to 40:60.
Basavaraj Tonagatti
Shrinidhi-First try to understand when you need money. There are 5 years gap between 5-10 years. Regarding investment, refer above post of what asset allocation you have to follow.
Prakash
Hi,
I like your articles and your analysis.I had started SIP is SBI Bluechip and Kotak Select focus fund one year back. now after some gaining a little knowledge like downside protection, rolling returns etc and reading articles a couple of reliable sites like yours, I want to continue long term SIP for 15 years with low to moderate risk in terms of equity. I am investing around 50:50 in debt and equity Debt is my PF and PPF for 15 years.
After re-categorization of fund Kotak select and Franklin Prima plus both are multicap. I want to make a core portfolio for equity where I will need to analyse this once in an year.
SBI bluechip 40%
Franklin Prima Plus 40%
HDFC Mid cap opportunity 20%
or
SBI Bluechip 40%
Kotak Select Focus 40%
Franklin Prima (mid cap) 20%
I am confused choosing between Kotak select and Franklin Prima plus and another confusion between Franklin Prima and HDFC Mid cap. also in case I need to choose one fund from Franklin what will be your recommendation.
Basavaraj Tonagatti
Prakash-Regarding multi cap, I am inclined towards Franklin. Regarding mid-cap, you can choose anyone between those two funds.
prakash
Thanks for your suggestion.
Annie
Hello Sir,
Which is a better option – INR 1000 each in Axis Long Term Equity D G and ABSL Tax relief 96 D G or should I invest INR 2000 in any one of the above?
I am 32 year old, and can invest upto INR 5o00/- per month(can be increased with yearly salary increments) with an investment goal of more than 10-15 years. Apart from the tax saver fund, can you suggest me 2-3 other funds? I am new to Mutual Funds & I can handle some risks.
Basavaraj Tonagatti
Annie-First do the asset allocation between debt and equity and then we discuss about funds.
Annie
Since I am looking for long term investments like 10-15 years, I can opt for 70% equity and 30% debt. I was thinking of 3-4 equity focused funds across ELSS, Balanced and Highcap or Multicap and maybe 1 debt fund for a shorter period of 3-5 years. But I am not sure which funds to pick?
I already make a little yearly investments into PPF, Atal pension yojna & Sukanya Smariddhi.
Basavaraj Tonagatti
Annie-Refer my post properly.
Sadiqua Amin
Hi Basu,
Thanks for your blogs, I found your blogs very informative and impressive. This blog solve many doubts about the mutual funds. I also want to invest to achieve some of my goals.
Below is the details my for my portfolio.
About MySelf:
I am 32 years old software professional. I have two kids(1.Girls, Age: 6.8 Years, Studying in 1 std. 2. Boy, Age:4.8 Years, Studying in LKG). My wife is house maker(she is educated up to 5 std and not working). Living in a rented house.
My Goals:
1. Kids Higher Education : I assume for the girl kid education current money needed is 15 lacs. time period 11 Year(in 11 years she will qualify 12 std and will peruse in professional studies).
and for the boy kid 15 lacs for the 13 year.
2. Daughter marriage: Estimate current amount 16 lacs, time duration of 17 years
3. Own House : Estimated Current amount 60 lacs, time duration 12 Years.
4. Retirement: Estimated Per Month 30K per month, Time duration 28 Years.
Please add Inflation Rate from your own site to calculate the future values of the goals.
Please suggest me the mutual funds in which I can invest to achieve my goals with less risk and good performing reasonable growth to achieve the goals.
Regards,
Basavaraj Tonagatti
Sadiqua-My choice of funds are already listed in above post. You have to just apply the asset allocation and start investing.
Sadiqua Amin
Hello Basu,
Thanks for your reply.. I can select from list bus dividing and money in these mutual funds and also how much % should be allocate is the real concern.. and what should be the future value for these goals?. So please devide for me. I can invest 50k-60k every month. Please make a model portfolio
Thanks
Basavaraj Tonagatti
Sadiqua-That also explained in above post and also refer below comments for clear idea.
abhi
i have 1000 rs sip in
1. absl frontline equity
2. sbi blue chip
3. icici focussed bluechip
4. FRANKLIN INDIA BALANCED
5. hdfc balanced
6. absl 96 tax saver
7.dsp blrock tax saver
equity: debt 70:30a
plan to invest in large cap for 7 yrs …in tax saving for 3 yrs…in balanced for 5 yrs ..
is it ok
Basavaraj Tonagatti
Abhi-Why so many funds? Where is your debt part? Please read above post for proper understanding of asset allocation.
abhi
using ppf , NSC nd NPS FOR DEBT PART
Basavaraj Tonagatti
Abhi-Now check the asset allocation of both debt and equity and check whether you need so many funds (by reading above post).
abhi
dont understand much about finance. started these on advice of agent about 8 months ago…..now plz tell me clearly what i should do sir
Basavaraj Tonagatti
Abhi-You said that for debt part you have NSC, PPF or NPS. But do such products mature after 7 years (which you claimed your goal time horizon)? Also, NPS product ivnest in equity also. Hence, in what sense you considered NPS as debt product? Regarding equity, you just need one large cap like SBI Bluechip and one mid cap like (I mentioned in above list). I am not sure why you holding so many funds in equity.
abhi
thanks sir…i got it now..
Abhi
Sir can you explain why hdfc balanced fu d is not performing well for some time..even when market is good…plz elobrate
Anshu
1. Please suggest if i can proceed with a multi cap fund of Motilal oswal most focused multicap 35 fund .
2. Also review my portfolio I have one large cap SBI Blue chip , mirae asset emerging bluechip fund and HDFC balanced fund.All investment are for long term 10 yrs . I am also putting some amount in PPF fund .
Basavaraj Tonagatti
Anshu-What asset allocation you following? How you shortlisted these funds?
Anshu
I am investing 8k and 6k respectively in HDfc balanced and sbi blue chip .
I am investing 3k in mirae asset blue chip .
And planning to buy motilal multi cap fund for 3 k .
Basavaraj Tonagatti
Anshu-Asset allocation and what prompted you to choose these funds?
Anshu
So these are my equity based investment and above that I have my ppf and pf .So I am maintaining 70:30 equity to debt ratio.
I have chose these funds on the basis of what I have read and some advice .
Basavaraj Tonagatti
Anshu-If you already did asset allocation and also choosen the funds properly, then what is the doubt here? (Don’t take it wrong way for my repeating questions, it is for understanding you in better way).
Anshu
Thank you sir for your prompt response . Basically I was asking your suggestion on any multi cap fund which i am planning to invest .
Basavaraj Tonagatti
Anshu-You can choose the one which you already mentioned.
Rajat Kushwaha
Hi, I am 22 year old and want to invest for wealth creation for my future needs, where should i invest (elss,ulip,ppf or somewhere else). Kindly guide me as i have no knowledge regarding investments.
Basavaraj Tonagatti
Rajat-Read the above post properly. If you still have specific questions, then we can discuss.
Siva
Rajat – Nice to see that 22 year old young man willing to start investments in mutual funds ..appreciated !!
I think you can select small/mid/multi cap funds….
Siva
In addition, As Basavaraj said please read and ask specific question about mutual fund investments..
-Siva
Shahnawaz Ahmad
Hi Basu I hope you are doing well , please can you share your feedback on below if this looks OK, I make this conclusion after reading your blog and comments and previous discussions !
Time invsted = 10 years (Keep invested in the funds), SIP to continue = 5 years (will only deposit money for 5 years only as per plan might be continue but not sure I can save this much later), I am following Debt to Equity = 30:70, and as example Investing 30000 Amount, so 21000 for Equity and 9000 for Debt
Equity :-
Large CAP = 10500 PM, ICICI Pru Focused Bluechip Eqty (G)
Mid Cap = 6300 HDFC Mid cap opp fund G
Small = 4200 Franklin India Smaller Companies Direct-G
Debt :-
5000 PM in IDFC ultra short term debt fund
4000 PM in Franklin India Savings Plus Fund
Please confirm if I can go ahead or required any changes !
Basavaraj Tonagatti
Shahnawaz-Looks good but I am bit inclined towards Franklin India Bluechip or Birla Sunlife Frontline Equity (In large cap) and retain one debt fund is enough.
Shahnawaz Ahmad
Ok then I will make below
1. Franklin India Bluechip Fund
2. HDFC Mid cap opp fund G
3. Franklin India Smaller Companies Direct-G or SBI Small & Midcap Direct-G — just thought changing not to have two funds with Franklin , if this is Ok, share your thoughts
4. IDFC ultra short term debt fund
Please advise
Thanks
Basavaraj Tonagatti
Shahnawaz-Go ahead.
Shahnawaz Ahmad
Thansk a lot for your fast response !
Shahnawaz Ahmad
Hi Basu
Please just share your view on below point only
3. Franklin India Smaller Companies Direct-G or SBI Small & Midcap Direct-G — just thought changing not to have two funds with Franklin , if this is Ok, share your thoughts
can I go with SBI Small & Midcap Direct-G
Basavaraj Tonagatti
Shahnawaz-You can go ahead.
Siva
Dear Sir,
Greetings !!
I already started to invest 24k in 4 mutual funds..now i m planning to start small investment for GOLD ..I will have to buy gold in 4-5 yrs. (approx 8 sovereigns). To achieve this what is the best option to invest?
1. Purchase 1g coin every month.
2. Invest in Gold ETF
3. Invest in Balanced or Diversified MF Funds (SIP-3000/-)
4. Gold Bonds (nothing to know this).
Please kindly provide your suggestion to take a good decision.
Thanks,
Siva.
Basavaraj Tonagatti
Siva-Whether this gold is for personal usage or as an investment?
Siva
Hi Sir,
Its for Personal. I will have to give around 6-8s of Gold as gift to one my relative daughter !
Thanks,
Siva
Basavaraj Tonagatti
Siva-Then better to use Gold ETF.
Siva
Thanks Sir !
Any suggestion to get the best ETF funds?
thanks,
Siva.
Basavaraj Tonagatti
Siva-Nothing called best in Gold ETF as the underlying asset is GOLD ONLY. Hence, you can choose anyone of your choice and start investing.
Balaji Ganesan
Hi Sir, My name is Balaji & I’m 28 years old now. I’m planning to invest in the Mutual fund over 10 to 15 year horizon and I’m willing to take Moderate to High risk. I planned my portfolio as follows.
A) Large Cap – Kotak Select Focus(2K)
B) Multi Cap – SBI Magnum Multicap(1K)
– Motilal Oswal MultiCap(2K)
C) Mid Cap – Mirae Asset Emerging Bluechip(3K)
D) Small Cap – Reliance Small Cap(1K)
– L&T Emerging Business(1K)
Please advice, if you think to change any fund?
Siva
My Opinion is 3 or 4 funds are enough.You can chose best funds in the respective category Large/Diversified/Mid & Small cap.
thanks,
Siva.
Basavaraj Tonagatti
Balaji-What asset allocation you are following? Where is your debt portfolio?
Nirmal
Sir,
Could you enlighten us for the mutual fund expense ratio???
I am under impression that even after SEBI’s guidelines, none of AMC is bothering about expense ratio….
PL have a write up for the same.
Basavaraj Tonagatti
Nirmal-They started publishing TER. But tracking that on their portal is not easy 🙂
Alfin
Hi one doubt. Kindly clarify. Is asset size of hdfc midcap an issue?
Basavaraj Tonagatti
Alfin-Not at all.
vandhi
How about investing in quantum fund of equity funds?
Investing in such a fund saves the investor the trouble of monitoring and reviewing the his portfolio as and when required.
Just one fund is enough for Equity portion of portfolio.
But why very less interest on this fund ,just because tax treatment like debt fund, but in longer run, Indexation benefit will be plus.
Basavaraj Tonagatti
Vandhi-Which Quantum Equity Fund you are pointing?
vandhi
Sorry Basu. Its Quantum Equity Fund of funds.
Basavaraj Tonagatti
Vandhi-It is FOF. Hence, taxation is also an issue.
vandhi
Taxation – How about indexation adjusted for long term . Now Equity funds also not tax free.
Apart from Taxation perspective, do you feel its good to consider for long term goals.( Equity portion).
Basavaraj Tonagatti
Vandhi-You can consider.
Priyajit
Sir
Pls check & kindly let me know if any modification is required in my current SIPs
1. ICICI PRU FOCUSSED BLUECHIP-D(G)-5000/
2. ABSL FRONTLINE EQUITY- D(G)-5000/
3. SBI LARGECAP FUND-D(G)-2000/
4. Franklin India High Growth companies-D(G)- 2000/
5. ICICI Balanced fund-D(G)- 2000/
6. Franklin India Smaller Companies fund_D(G)-2000/
7. ICICI Value discovery fund-D(G)- 1000/
8. Reliance Small Cap fund- D(G)-2000/
9. SBI PHARMA FUND-D(G)-1000/
10. L& T INFRASTRUCTURE FUND-D(G)- 3000/
11. UTI TRANSPORT & LOGISTICS-D(G)-2000/
Basavaraj Tonagatti
Priyajit-Hard to check and suggest anything without knowing your financial goal details and the reasons for this investment.
Priyajit
Sir
The only objective is wealth creation having 3-5 yrs time line.
Basavaraj Tonagatti
Priyajit-Then simply use Ultra Short Term Debt Funds.
AJIT
DEAR SIR,
I AM 19 YEAR STUDENT. I AM NEW FOR MF INVESTMENT. AFTER READING YOUR NICE ARTICLES ON MF, I AM PLANNING TO START SIP RS,1000/- PM FROM MY POCKET MONEY. MY TIME HORIZON WILL BE FOR 7-10 YEARS. WHICH SIP (MF) WILL SUITE ME AS PER MY AGE. KINDLY ADVISE ME SOME SIP NAMES PLEASE.
Basavaraj Tonagatti
Ajit-Start with Equity Oriented Balanced Funds like HDFC Balanced Fund.
AJIT
Sir, Many Many thanks for your swift reply.
Regards,
Ajit
AJIT
DEAR SIR,
I AM 19 YEAR STUDENT. I AM NEW FOR MF INVESTMENT. AFTER READING YOUR NICE ARTICLES ON MF, I AM PLANNING TO START SIP RS,1000/- PM FROM MY POCKET MONEY. MY TIME HORIZON WILL BE FOR 7-10 YEARS. WHICH SIP (MF) WILL SUITE ME AS PER MY AGE. KINDLY ADVISE ME SOME SIP NAMES PLEASE.
vandhi
Basu,
Recent SEBI Categorization effect, Mirae Emerging bluechip changed from Mid cap to Large & Mid cap fund. Do we still consider this fund as Mid cap for allocation. Or Shall we look for pure mid cap fund based on Portfolio.
Basavaraj Tonagatti
Vandhi-I am just waiting for complete recategorization of all funds. Then only we can take the call.
vandhi
Thats good. But do they any concrete Deadline to complete by all AMCs.
Basavaraj Tonagatti
Vandhi-YES.
Shahnawaz Ahmad
Hi basu if time horizon is 10 years is it compulsary to split investment in large, mid and small cap , can we go only on large cap , like you advise can we invest only on two large cap as per your suggestion abave
Franklin India Bluechip Fund (G)
ICICI Pru Focused Bluechip Eqty (G)
Shahnawaz Ahmad
Hi Basu please can you explain what is difference between Direct and regular mutual funds
Basavaraj Tonagatti
Shahnawaz – Refer my blog post on the same.
Shahnawaz Ahmad
I did not find it , can you give me that link please or highlight
Basavaraj Tonagatti
Shahnawaz-Refer THIS.
Amit
Hi Basu,
As per my understanding after reading your various post and some online help i have come up with below
portfolio for my goal(> 10 years)
Time period:- more than 10 + years:
Allocation:- equity : dept(70/30)
dept – ppf(6000)
Large/mid/small: 40/30/30
Franklin India Smaller Companies Fund – Direct Plan (G) //smallcap- 4k
Mirae Asset Emerging Bluechip Fund – Direct Plan (G) //midcap -4k
Kotak Select Focus Fund Direct Plan //largecap -6k
My question is keeping in mind long term investment , should i decrease sip in large cap and increase in mid/small/ or in a new balanced direct plan.
Please suggest should i decrease amount in ppf also?
Basavaraj Tonagatti
Amit- Never get lured by high returns from small or mid cap funds. Large Cap Funds will give you stability. Hence the concentration should be more towards large Cap.
Amit
Thanks sir for the prompt response.
1.Please advise is the amcs selection good.
2. It is good to spilt 4k into two mid caps instead of single mid cap.
Basavaraj Tonagatti
Amit- 1)Concentrate on funds rather than AMC.
2) No purpose in splitting.
Shahnawaz Ahmad
Hi Basu based on current Market condition do you reconsider your Top list or any change
Basavaraj Tonagatti
Shahnawaz-NO. I stick to them.
Manjunath
Hi Basavaraj,
as per current market conditions, which are 2-3 Mutual Funds i should invest .
My criteria is i need to get Dividends atleast once in a year and atleast 10% -15% returns in total.
Basavaraj Tonagatti
Manjunath-My recommendations will not change based on CURRENT MARKET CONDITIONS. But they definitely change based on your goal. However, it is hard for me to guide anything blindly with mere two lines of sharing.
Manjunath
Hi Basu,
Sorry if i am question was not clear. I wanted to invest in SIP in 2-3 performing Funds and to get dividends atleast annually. The reason i am asking is i invested since 2.5 years in DSP Blackrock Smallcap -Dividend payout fund and it did well till Jan end and now its market value fell down. They have not declared any dividends till now. So, please suggest me .
Basavaraj Tonagatti
Manjunath – Never rely on Dividend income.
Ragesh
Small cap is the most volatile and exuberant of the fund category. Always go for growth category in that and hold it for 10 years
Basavaraj Tonagatti
Ragesh- I recommend small cap if holding period is more than 10 years.
Ragesh
Yes thanks Basu, I mean hold it for atleast 10 years
Basavaraj Tonagatti
Ragesh- Then first do the asset allocation and then chose funds as explained above.
Sandip Patel
Below are my funds selection in SIP, please check and let me know if any modification required.
Investment Period is 10 years.
Canara Rob Emerg Equities Fund-Reg(G) – 5000 Rs
L&T Emerging Businesses Fund-Reg(G) – 5000 Rs
Motilal Oswal Multicap 35 Fund-Reg(G) – 5000 Rs
Tata Equity P/E Fund(G) – 5000 Rs
Basavaraj Tonagatti
Sandip-What asset allocation you are following?
Sandip Patel
Asset Allocation
Equity 93.87 Others6.13
Market Cap Allocation of Equity Exposure
Large Cap 84.21 Mid Cap 12.31 Small Cap 3.48
Basavaraj Tonagatti
Sandip-Do you think this asset allocation suitable to reach your goal?
Sandip Patel
I don’t know. but my goal is to get atleast 60 Lacs after 10 years. Is it achievable or not?
Basavaraj Tonagatti
Sandip-If you don’t know, then first read above post and learn the basics and then jump to invest.
Shahnawaz Ahmad
Hi Basu
If any one invested as SIP mode in Mutual Fund and he has completed the SIP for 3-4 Years but after that he has some financial issues and not able to deposit the money in SIP , but he dont want to break it and dont need the money , I mean he can let the money keep invested
What will happned to invested amount
Did the MF company making any penalty
Did he will receive the appreciation on invested amount if the fund perform well, if he let the corpus invested for another 4-5 years
Thanks
Ragesh
Yes there is no penalty. You are free to stop , reduce, increase your SIP. And yes whatever money is left will appreciate over time. The main use of SIP is reducing risk by cost averaging , and encourage disciplined and methodical investing.
Shahnawaz Ahmad
Thanks a lot Basu 🙂
Ragesh
I am not Basu I am just a reader of his blog but ya chipped in with my 2 cents 😉
Shahnawaz Ahmad
Thanks Ragesh , Appreciated your response
Basavaraj Tonagatti
Shahnawaz-It will grow as usual. You can cancel the SIP at any point of time in the middle. AMCs will not penalize you for that.
Shahnawaz Ahmad
Hi Basu please also mention how one should allocate the investment between Large,Multi,Mid, Small & balance like you mention as If the goal is more than 10 years-Allocate debt:equity in the ratio of 30:70.
Please calrify
Thanks in advance !
Basavaraj Tonagatti
Shahnawaz-Let me add that but it mainly depends on individual’s views rather than generic. Hence, I skipped that.
Shahnawaz Ahmad
Hi basu please also mention how one should allocate the investment between Large,Multi,Mid, Small & balance like you mention as If the goal is more than 10 years-Allocate debt:equity in the ratio of 30:70.
Please calrify
Thanks in advance !
Basavaraj Tonagatti
Shahnawaz-Refer my comment replies. You will find the answer.
Shahnawaz Ahmad
Hi Basu I saw below is some of comments
“Equity to Debt 70:30. In Debt, use either PPF or Ultra Short Term Debt Fund. For Equity, one large cap, one mid cap and one small cap in the ratio of 50:30:20.
Please advise
Basavaraj Tonagatti
Shahnawaz-What doubt you have here?
Shahnawaz Ahmad
I just want to ask you below, if the time horizon is 10 years can we follow below allocation, please share your expert opinion
1. Equity to Debt 70:30. In Debt, use either PPF or Ultra Short Term Debt Fund.
2. For Equity, one large cap, one mid cap and one small cap in the ratio of 50:30:20.
Please confirm if this allocation is OK
Basavaraj Tonagatti
Shahnawaz-YES.
Sanjay Raval
Basu, can we consider Balanced fund mentioned in your selected for Debt allocation?
Basavaraj Tonagatti
Sanjay-Equity oriented balanced funds? No.
Shahnawaz Ahmad
Hi Basu, I hope you are doing well !
1. Do you have any article that says about investing lumsum in Mutual Funds or we can invest in same fund where we are doing SIP’s
2. When you talk about investing in Debt and Equity, do you consider Debt Funds also in Debt class , or one should always consider PPF, FD’s for Debt class, I mean that comes with assured % of returns
3. can you write any artcile that can categorize investment in SIP based on risk apetite and amount to invest like we have one in ET , check below link
https://economictimes.indiatimes.com/mf/analysis/best-mutual-funds-to-invest-in-2018/articleshow/62380757.cms
Thanks a lot in advnace , you are doing great work !
Basavaraj Tonagatti
Shahnawaz-1) If you are investing in debt as a lump sum, then you can go with one time. If you are investing in equity then spread that lump sum investment to 6-12 months.
2) Debt product may be your EPF, PPF, RDs, Bank FDs or Debt Mutual Funds.
3) Risk is same in both lump and monthly SIP. You have to manage it with proper asset allocation.
Shahnawaz Ahmad
3) Risk is same in both lump and monthly SIP. You have to manage it with proper asset allocation.
SA:- I mean after asset allocation 10K is available to invest in SIP with horizon of 10 years, in that case how I will choose from above funds , Shall I distribute this money in your suggested large cap and multi cap and start , so that I will be having 4 funds to distribute this 10000
Basavaraj Tonagatti
Shahnawaz-If your investable surplus is identified and time horizon is also known, then first you have to do asset allocation and then within those assets, select the funds.
Anshu
Hello Sir ,
I am planning to invest a lump sum amount of 1.5 lac approx in a mutual fund for long term basis (10 + yrs) .
What I have understood is i should invest in a mixed fund having debt:equity ratio of 30:70 .
So should I proceed with such fund or you have some other suggestion .
Basavaraj Tonagatti
Anshu-Refer my post properly.
Anshu
Sir ,
Please suggest the type of fund as per my requirement .
Basavaraj Tonagatti
Anshu-My funds are already listed above.
Vinod
Hi Basu,
I am investing in MF (Regular Plan) from last 5 years through SIP mode. But most of my funds are not performing well now and some are sectoral funds. After reviewing my portfolio, I made a decision to restructure my portfolio by switching over to direct funds for long term (15-20 yrs) for my retirement and my son (age 4 yrs) education. My age is currently 35 yrs and my risk appetite is moderate. I have selected few funds (where few are from existing portfolio and few included new). I have sufficient amount of 4 lacs as emergency fund in bank FDs. Currently I don’t have any term plan but planning to buy the same by this month only (please suggest if any).
Below are my funds selection, please check and let me know if any modification required or if not well diversified (in term of amount diversification, extra MF, suggestion of new mf or drop any).
Kotak Select Focus Fund Direct – Growth Plan – Rs 2000
Reliance Small Cap Fund Direct – Growth Plan – Rs 2000
Motilal Oswal MOSt Focused Multicap 35 Direct – Growth Plan – Rs 2000
Mirae Asset Emerging Bluechip Direct – Growth Plan – Rs 2000
Principal Emerging Bluechip Direct – Growth Plan – Rs 2000
HDFC Balance Direct – Growth Plan – Rs 2000
Birla Tax 96- Relief Direct – Growth Plan – Rs 2000
To maintain debt ratio I am investing 5k/monthly in PPF and few in Bank RD.
Thanks & Regards,
Vinod
Basavaraj Tonagatti
Vinod-What asset allocation you are following? How you selected these funds?
Vinod
I trying to match ratio of equity : debt as 65:35 and I have selected one fund from each category.
Please advise if any changes required.
Thanks,
Vinod
Basavaraj Tonagatti
Vinod-If you did asset allocation and did the fund selection also, then go ahead.
Raj
Hi Basu,
According to robo advisory + your advisory I starting learning and investing in MFs (started investing last month). SIP transfer date on 7th of every month. I wish to invest for 14 years (so 70% for equity and 30% debt, refer below), specifically for my child’s education. I want to ask you two questions.
1. Aditya Birla Sun Life Frontline Equity Fund-Direct-Growth: Rs 5200/pm
2. Franklin India Prima Fund-Direct-Growth: Rs 3900/pm
3. IDFC Ultra Short Term Fund-Direct-Growth 3900/pm.
Q1: Suppose in future I also need to invest for my child marriage. So I need to increase in the above 3 MFs (maintaining same 70%:30% ratio!) or should I start new portfolio with different MFs or same MFs? (note: above portfolio for 14 yrs, and possibly marriage portfolio for 23, i.e. 9 yrs after the above portfolio completes). I just want to know in future.
Q2: I am using invezta and I have to set my investment profile. In that there are 3 question as follows:
What would you do if your portfolio LOST 10% in volatile markets? (Sell full or partial / do nothing / Buy more)
What would you do if it GAINED 10% in a few weeks? (Sell & book profilt / do nothing / Buy more)
Where do you invest currently ? (Stocks / bank deposits / MFs / Propert/gold).
I am just curious to know your opinion on Q2. Currently I opted for ‘do nothing’ for the 1st two question and bank deposit for the 3rd (as I also save in suganya account for my child, PPF for myself). I think I will stop my PPF because I become NRI.
Thanks for reading the above and replying, regards, Raj.
Basavaraj Tonagatti
Raj-1) You can use the same funds.
2) These are the questions meant to understand your behavior. So no need to worry.
Raj
Thanks! That means I should increase the money in each MFs maintaining the same ratio. Or same MF with another portfolio?
Vandhi
Raj,
Even i too having the same doubt and requested Basu to write an post on how to manage all goals with single portfolio. Hope he will sooner comes up with post 🙂
Basavaraj Tonagatti
Vandhi-Surely I will write 🙂
Raj
Yes, let us hope he will write some insights!
Vandhi
Basu,
You are recommending of Large cap , Mid and Small cap with 50:30:20 ratio for long term goals(10+ years).
My query is why not Multi cap funds not recommended in the above ratio. Most of the multi cap funds are investing like 60-70% in Large cap funds and rest with Mid and Small cap funds. Why not we choose Multi cap funds instead of Large cap funds.
Basavaraj Tonagatti
Vandhi-Do this 60-70% is fixed? Multi-cap has the mandate to move any market cap as and when they find the opportunity.
Vandhi
Basu ,
There are some multicap funds keep 60-70 % always in large cap stocks. ( This is my understanding, No data available to know the fact)
Franklin prima plus
Quantum Long term Eq
Mirae Asset india Oppor
Basavaraj Tonagatti
Vandhi-Instead let us wait for fund re-categorisation to get the clarity. As they have the mandate to move any market cap, it is hard for an individual to track frequently.
Vandhi
Thanks Basu.
What is your view on Small amc funds when compare to large amc funds.
For instance, Quantum, Motilal oswal,PPFAS funds are performing well compare to ICICI,Franklin and HDFC funds.
Is there fund performance is only criteria or Size of AMC also matters in selection of funds for long term goals. If you filter for 10+ years performance, i am sure these small amc funds wont be listed because of their age of amc.
Basavaraj Tonagatti
Vandhi-I trusts the funds which are in the market since long. I am not biased towards AMCs and size. But I need historical data of how the fund performed.
Vandhi
Hi Basu
I have short listed following funds for Large cap category :
Quantum Long term Equity
ICICI pru Focussed blue chip
My query is whether Quantum Long term Equity is Pure Large cap fund or Diversified fund. It invests 80% of large cap stocks. Can you please clarify
Basavaraj Tonagatti
Vandhi-As of now, it is diversified fund. But wait for their application of latest SEBI categorization rule, then you will get the clarity.
Vandhi
Value Fund* – This is one of the category defined by SEBI.
Can i assume that Qunatum long term EQ will be classified under this scheme after SEBI Cat rule.
Basavaraj Tonagatti
Vandhi-Wait and watch.
Vandhi
Quantum announces SEBI CAT implementation as follows :
Quantum Long Term Equity Fund is an Value Fund.
Value fund definition ” An Open Ended Equity Scheme following a Value Investment Strategy ”
I do not understand , what is Value fund category . Any idea
Basavaraj Tonagatti
Vandhi-Refer the SEBI notification in this regard.
Vandhi
Nothing much in detail : –
” An Open Ended Equity Scheme following a Value Investment Strategy ”
Scheme should follow a value investment strategy.Minimum investment in equity & equity related instruments -65% of total assets
Basavaraj Tonagatti
Vandhi-I know and VALUE INVESTMENT strategy is wide open and depends on Fund Manager’s view. Hence, you have to check the fund fact sheet for better understanding.
Vandhi
Thanks basu,
My understanding is, Its like an multi cap fund and looking for an Value investment strategy in all market caps. Once again, I complain SEBI should clear this confusion 🙂
Vandhi
Parag parikh long term also stating that , following Value investment , but they have mentioned clearly that it will be Multi cap fund in SEBI CAT implementation addendum.
Basavaraj Tonagatti
Vandhi-SEBI can’t define it specifically. Because values can be found from all market cap stocks right? 🙂
Vandhi
In Simple terms, Its multi cap fund with Value investment tag in it 🙂
Basavaraj Tonagatti
Vandhi-Exactly and now you are on track 🙂
Vandhi
Basu,
If we avoid Multi cap fund completely and construct portfolio with large cap, Mid and small cap fund , Should we manage the investment ratio to small and mid cap based on Market conditions like Fund manager. Hope this kind of tracking and managing not possible to retail investor. This is the one point, most of them suggest outsource this work to Fund manager and buy Multi cap funds.
Basavaraj Tonagatti
Vandhi-I will never try to time the market nor I trust such activity who claim to be do on behalf of me by investing in Multi Cap (in equity) or Dynamic Bond Funds (in debt).
Vandhi
Ok Got your point.
Shall we keep the same allocation 50:30:20 (Large:Mid:small) till the end of the tenure of the goal.
Rebalancing will be done only on EQ:Debt part of the goal.
Kindly clarify.
Basavaraj Tonagatti
Vandhi-You have to stay away from equity when your goal is about to the near of reach (well before 2-3 years).
Vandhi
Yes, I got that.
But till that period ( Say 15 years goal, till 12th year of the goal)
Can I manage the same 50:30:20 (L:M:S) equity cap ratio.
Vandhi
Hi Basu
Do you have time to response the above query.
Would like to clarify ,whether how long to keep the same ratio of Mid and small cap funds in overall portfolio till reach the goal tenure.
Basavaraj Tonagatti
Vandhi-I already replied. As the goal about to reach, then you have to allocate more towards debt and move away from equity.
Vandhi
Thanks Basu,
My query is , till that time of moving from Equity to Debt, Can we manage the same market cap allocation of 50:30:20 ( L:M:S).
My assumption is when we near the goal, More large cap to be allocated and reduce/ no Mid & Small allocation in overall Equity Part.
Basavaraj Tonagatti
Vandhi-No. You have to slowly reduce that equity exposure. Slowly come out from mid and small cap.
Vandhi
Thanks Basu. In general most of the planner/blog sites recommending having very little exposure( 10%) in small cap . Thatswhy i was asking whether to keep till end of the goals
Thanks again for your patience 🙂
Basavaraj Tonagatti
Vandhi-Touch small cap only if your goal is 10 years away. If it reaches less than 10 years, then better to avoid.
Vandhi
Ok Basu,
Is this reason you avoid Multi cap funds, where there is always Small and Mid cap fund exposure irrespective of our goal tenure(either begin or end of goal).
Basavaraj Tonagatti
Vandhi-Exactly and we don’t know in due course of investment that how much we have exposure to small and mid cap.
Vandhi
Basu,
I am planning to de clutter my existing portfolio and finalize
following funds for Equity Porttion :
Quantum Long term Eq – Large cap
Sundaram Select mid cap – Mid cap
Parag Parikh Long term Value – Multi cap with International stocks.
I have checked Morningstar for the Portfolio overlap , its very minimal is this portfolio.
I think, no need to add small cap funds, already small portion of small cap stocks are getting invested in this portfolio funds.
Kindly share your views, I am so grateful to your post and responses for all my stupid queries so far 🙂
Basavaraj Tonagatti
Vandhi-Go ahead.
Sumit Malakar
Hi Basu, I m bit of confused about asset allocation. I can invest 5k pm. Time frame 5 to 10 years also want to allocate some money for quick liquidity as emergency. Can you please guide on this?
Basavaraj Tonagatti
Sumit-Separate your investment for EMERGENCY GOAL, 5 years goal and 10 years goal.
Sumit Malakar
Hi Basu, thanks for your advice. Can you please help for asset allocation?? 10 years goal for child education and 3-5 year goal for personal.
What are the funds will be suitable also the liquid or ultra short term debt funds.
Basavaraj Tonagatti
Sumit-I already explained that in above post. Please refer.
Shahnawaz Ahmad
Hi Basu as you said maximum 3-4 funds are enough so based on your article one should choose a fund from each category and invest like one from Large, one from multy, one from mid and so on
Please ca you clarify this
Basavaraj Tonagatti
Shahnawaz-Yes but with proper asset allocation between equity and debt also.
sany
Hi Sir,
Thank you so much for your all articles. I want to start sum new sip for 10 years and more. I have selected sum fund for my future investment. I can take moderate risk.
1 – hdfc prudence fund regular growth
2 – dsp blackrock opportunities fund
3 – dsp blackrock small and midcap fund
4 – sundaram select midcap regular
5 – canara robeco emerging equities.
Can you please suggest which fund is good for me,
Basavaraj Tonagatti
Sany-Where is your asset allocation and why so many small and mid caps?
Kavisha
hello Basu,
I’m new to Mutual Funds, at age of 29 years i have not invested anything yet.
I’m planning to invest in MFs:
One with 10000 per month for next 20 years
And another is for 5 years with 10000 per month.
Please suggest Best way to invest.
Basavaraj Tonagatti
Kavisha-First read above post and let me know if you have any doubts then.
Rabi
Thanks, Basu ??
Rabi
Hi Basu,
I just want to know, if I am electing funds from categories like : elss, large cap, mid cap and small cap, does it advisable to include a multi cap fund in my portfolio? Please confirm.
Not having my much knowledge of MF (correct time to invest into right kind of fund), should I only go for a multi cap fund or it’s better to invest in different funds? Please suggest.
Thanks,
Rabi
Basavaraj Tonagatti
Rabi-Better to invest separately rather than multi cap.
Ankita Panigrahi
Hello sir,
I want to invest in reliance small cap fund for long term and reliance tax saver fund for tax saving.are these funds good or I should invest in other fund?as these are not in your list of top 10 fund
Basavaraj Tonagatti
Ankita-Refer my another post for tax saving funds at “Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019“.
suru
Dear Pattu
I am considering two large cap funds SBI Bluechip and Mirae Asset India Opportunities fund for monthly SIP of Rs 10000 for 10 years investment horizon, I have to zero down on one fund. My mind goes with SBI Bluechip, heart is going for Mirae.
Mirae,I feel, has key person risk but returns are good.
In your opinion which would be better for longer horizon, with above average risk taking capacity.
other funds Iam investing presently are:
Mirae Emerging bluechip 4000
I Pru Value discovery 4000
Franklin High growth companies 5000
DSPBR Microcap 4000
(Since one year I have been investing 5000 in SBI Bluechip ,my SIP is finishing in next month)
Regards
Basavaraj Tonagatti
Suru-Where is your asset allocation?
suru
Basu sir
I invest full amount of Rs 150000 per annum in PPF and around Rs 15500 per month (including employer contribution) in NPS. So, Iam not investing in any amount in MF.
For emergency fund Iam saving in I Pru Arbitrage 2000 pm for 2 years; I pru liquid fund 3000 pm for five years. I have 2 lakh rupees FD.
Basavaraj Tonagatti
Suru-For 10 years time horizon, the asset allocation should be 30:70 in debt and equity. Use one large cap and one mid cap in equity. I am inclined towards SBI.
kalai
Basu
There are changes coming out from AMCs , post SEBI categorization mandate.
Mirae
DSPBR
Motilal.
Will there be any update/changes in your Top 10 Equity/Debt list.
Basavaraj Tonagatti
Kalai-I will update once I found it complete. Let us wait.
Amit
Hello Sir,
I have read this article from start to end then after I have decide to invest in following way.
Right now I am 30 years old, I have not done any investment like EPF/PPF/FD etc.
I want to invest 10000 per month from this month, then I have chosen the following option.
My goal is for 10 to 15 years
Fund Scheme: Monthly
PPF: 3000
Long term Debt: I have 3 options but I want to go with 2 options
1. SBI Magnum gilt fund -Direct plan-Growth :1500
2. ICICI Pru Long term fund -Direct plan :1000
or
HDFC Medium term opportunities fund- Direct Growth : 1000
on option 2 which one is better ??
Long term equity:
1. SBI Blue chip fund-Direct growth :2000
2. HDFC Balance fund – Direct growth :1500
Short term:
1. Mirae Asset Emerging blue chip-Direct Plan :1000 for 5 years
Please suggest me this good option for or I will go with another option as per your suggestion.
Basavaraj Tonagatti
Amit-For debt use PPF itself. No harm in that. For your equity, use one large cap and one mid cap.
Amit
Thanks for your response!
Please also suggest me for the option 2 in long term debt fund
My goal is for 10 to 15 years
Fund Scheme: Monthly
PPF: 3000
Long term Debt: I have 3 options but I want to go with 2 options
1. SBI Magnum gilt fund -Direct plan-Growth :1500
2. ICICI Pru Long term fund -Direct plan :1000
or
HDFC Medium term opportunities fund- Direct Growth : 1000
on option 2 which one is better ??
Long term equity:
1. SBI Blue chip fund-Direct growth :1500
2. HDFC Midcap Opp Fund(G) :2000
3. Mirae Asset Emerging blue chip-Direct Plan :1000 for 5 years
Basavaraj Tonagatti
Amit-For debt use either PPF or Ultra Short Term Debt Fund. For equity, SBI and HDFC enough.
Kumar
Hi Basu,
I have question regarding Emergency fund, currently I have parked some funds in FD as a emergency amount but interest rates are very low. Do you think any other better alternative like Liquid fund?
If liquid fund then which liquid fund do you think to go ahead?
BR, Kumar!
Basavaraj Tonagatti
Kumar-Expecting RETURN from the emergency fund? The priority should be how fastly you can have the access rather than the income from such fund.
Kumar
Hi Basu,
As I mentioned, I already build a emergency fund in FDs, now I want to increase it bit more but thinking instead of adding in FDs again, I should select some other better option where I can park it and get better return also.
Hope you got my point.
Thanks, Kumar!
Basavaraj Tonagatti
Kumar-I am again saying that your main intention from emergency fund is to how fastly you can liquidate it rather how much return I get it from it. If you are looking for alternatives, then use Liquid Funds.
Amit
I am new in mutual funds, I am trying to invest through online different kinds of mutual funds in ration of amount 3000,2000,2000. I have created my account online account on HDFC/SBI. But there is no scope to invest less than 5000 through their portal. Any other online platform where I can start investment in mutual funds in my ratio amount with out brokers. Please suggest me.
Thanks
Amit
Basavaraj Tonagatti
Amit-Whether you do the SIP or manual investment monthly?
Amit
Sir, I will go with manual investment. you can also suggests me which one is better ?
Basavaraj Tonagatti
Amit-In case of manual investment, your such each investment is considered a lump sum and that the reason the minimum limit is showing as Rs.5,000. I suggest you to set up a SIP. If you are uncomfortable with SIP setting, then once you accumulate Rs.5,000, then go ahead and invest.
Amit
sir,
I have selected the below products, Please suggest me this is right for me on initial level with good amount value or value of amount increase or decrease little bit.
Fund Scheme: Monthly
Scheme Type: EQUITY
Large Cap:
SBI Blue Chip Fund Regular Growth – 2000
HDFC Balanced Fund-Direct Plan-Growth Option-2000
Midcap:
Mirae Asset Emerging blue chip fund-Regular Plan-G :1000
Thanks
Amit
Basavaraj Tonagatti
Amit-Without knowing your goal details, it is hard for me to guide anything.
Amit
My goal is for the 10 years.
Basavaraj Tonagatti
Amit-Then where is your debt portfolio? What asset allocation you are following?
Ragesh
MidCap fund for short term – 2 years is not advisable. In fact it should be used only for the longest goals. 5+ years. Increasing order of risk is liquid->short term debt->long term debt->MIP->Balanced->Large->Multi->Mid->Small
As risk increases, the term also should increase.
Amti
Hello Sir,
My self Amit, I am soft eng. From past few days, I am planing to invest in mutual funds. But i have no idea about this. How to start investment in mutual fund. I have created online account on HDFC mutual funds and SBI Mutual funds, there is option to invest minimum 5000. I have no idea, which plan is better for me in HDFC or SBI. I want to inverst for 3-5 years. Please suggest me hdfc/SBI best mutual funds plan or sip plan for this duration. You can also suggest me better plan expect to HDFC and SBI.
Thanks & Regards
Amit
Basavaraj Tonagatti
Amti-First refer the above post properly, then we discuss about the PRODUCTS.
Amit
sir,
I have selected the below products, Please suggest me this is right for me on initial level with good amount value or value of amount increase or decrease little bit.
Fund Scheme: Monthly
Scheme Type: EQUITY
Large Cap:
SBI Blue Chip Fund Regular Growth – 2000
HDFC Balanced Fund-Direct Plan-Growth Option-2000
Midcap:
Mirae Asset Emerging blue chip fund-Regular Plan-G :1000
Thanks
Amit
Ragesh
Which website are you using for these plans? Why not go for the direct plans which will have 0 comission.
Amit
I am going with direct plans on their site. Like HDFC for HDFC site and SBI for SBI site. I have created account on all the above product site.
Basavaraj Tonagatti
Amit-Please specify SBI Mutual Fund and HDFC Mutual Fund or SBI and HDFC Bank?
kalai
Mirae Asset Emerging blue chip fund-Regular Plan-G – Mid cap fund will be changed to Large & Mid Cap Fund effective from March 14, 2018. Please make note and construct your portfolio.
Basavaraj Tonagatti
Kalai-Thanks for updates 🙂
Basavaraj Tonagatti
Amit-Without knowing your goal details, it is hard for me to guide anything.
Ryan
I’m new to mutual funds and I’ve been spending time reading blogs and doing my own reasearch. What are the pros/cons of starting a SIP in 2 blue chip funds say of 5000 each Vs Starting a SIP in just one bluechip MF for 10000/-. The only downside I see is overlapping of companies?
Basavaraj Tonagatti
Ryan-Do you think overlapping is BEST?
Ryan
Firstly, thanks a lot in replying to each and every post. Really appreciate your patience!
No, overlapping isn’t a good idea. The reason I asked this question is because I was wondering if I should invest 10k in Hdfc small cap direct OR Reliance Small cap direct MF VS Investmenting 5k each in the above 2 MFs, considering there’s hardly any overlapping in Top holding / portfolios in either Of the MFs. What do you think in that case?
Basavaraj Tonagatti
Ryan-For simplicity sake, I always prefer fewer funds in my portfolio. Above that, if you invest today then it does not mean YOU HAVE TO STICK to that fund forever. Review the funds once in a year, if the fund is not performing well, then just come out of it.
vinay
Hello
This is Vinay, I am 37 and planning to invest in MF starting March 2018. I am new to MF and need some guidance to pick and invest. All my savings since 10 years are in FDs and just started PPF in 2017. My plan is to invest (SIP) 25000 per month up to 10 years to use it for my son’s education. Can you please suggest 4 funds to invest. One of my friends suggested below two funds, {(1) HDFC tax saver growth option (2) ICICI Prudential tax plan growth option} but would like to understand if these are performing good as per your short list criteria, if these are okay please suggest two more MF to invest so that investments are distributed properly.
Basavaraj Tonagatti
Vinay-Forget about funds at first. Before that read of what I explained above, then think about funds. If you still have confusion, then we discuss on this.
Siva
Hello Basu,
I have one more query..My Wife having 2L and she would like to go for Bank Bonds..But i am looking MF for better than that with Low risk..Please suggest me.
thanks,
Siva.
Basavaraj Tonagatti
Siva-Without knowing the goal details, it is hard for me to guide anything.
Siva
Sir ,
I would like to have emergency fund at least 1L..So i want to park that 2L into any Debt or Ultra short term and transfer to Balanced funds to get some decent interest on my investmenets using STP. Is this looks good ?
thanks,
Sivaraj D
Basavaraj Tonagatti
Siva-Expecting RETURN from the emergency fund? The priority should be how fastly you can have the access rather than the income from such fund.
Siva
Dear Basav,
So we have to keep it in Bank only? I was thinking to park in Liquid funds and get some interest .
thanks,
Siva.
Basavaraj Tonagatti
Siva-Use either Bank FD of a year or Liquid Funds.
Siva
Dear Sir,
I am 36 now , i believe that i can take 65% risk for Asset allocation. Please guide me sir..Is there any changes required for my Fund selection ?
thanks,
Siva.
Basavaraj Tonagatti
Siva-Do asset allocation based on your time horizon of the goal.
Madhu Siddappa
Dear Sir,
I have started SIP from Jan 2018. I am 35 years old and my time horizon is for 15 years. Below is my portfolio.
Birla Top 1oo – 10K
Motilal Oswal MOSt Focused Multicap 35 Fund – 10k
Franklin India Smaller Companies – 5K
Mirae Asset Emerging Bluechip Fund – 10k
Please suggest If I required to do any changes here. Also I would like to put 5K more from next month. Please suggest should I go for any new fund or choose among these
Thank you
Madhu
Basavaraj Tonagatti
Madhu-First do the asset allocation, then we discuss (if you don’t know what it is, then refer above post).
Madhu Siddappa
Dear Sir,
This is only my equity allocation (70% of my total allocation) For debt I have remaining 30% which is in FD and others which is 15k.
Thank you
Madhu
Basavaraj Tonagatti
Madhu-Whether you can do asset allocation freely from your debt?
Madhu Siddappa
Yes Sir – I have FD and EPF for debt.
Basavaraj Tonagatti
Madhu-I just noticed that you raised the same issue few days back. Please refer our earlier discussion and act accordingly.
Siva
Hi,
Very Nice Blog ! Keep going …!
I have been investing in below funds for the past 1 year and my aim is to make good returns in long term (more than 7 yrs). Please kindly suggest your valuable input on this…And also please suggest that should i start in Balanced fund to reduce my risk?
Franklin India Prima Plus – 5k
DSPBR Micro cap -5k
Mirae Asset Emerging Bluechip – 5k
Reliance small cap – 8k
thanks,
Siva
Basavaraj Tonagatti
Siva-Asset allocation?
Sujin
Hi, Thanks for your good article.
I have a question regarding my portfolio plan.
I already have SIP in below schemes
HDFC small cap fund – 3000 – small cap
Mirae asset emerging bluechip – 3000 – mid cap
HDFC Balanced fund – 4000 – balanced
Birla sun Life short term – 5000 – debt – short term
My time horizon is 10 years.
I like to invest another 3000 in equity fund, which category fund to chose either large cap or multi cap or yet another mid cap?
Kindly help me.
Basavaraj Tonagatti
Sujin-Considering your time horizon, I suggest you to stick to large and mid cap only in equity category. In case of debt, choose Ultra Short Term.
Sujin
Thanks for your reply,
I have filtered SBI bluechip and ABSL frontline equity in large cap category, kindly suggest which one I can invest?
sat
Hi Basu
I read many of ur blogs which educated me very well.
I did lot of home work and below is the data and need few suggestions from you please.
Based on my calculation debt:equity ratio for my goals would be 40:60
1. My age currently 32
2. I have not done any SIPs/MFs as of now.
3. Based on my current other debt holdings and considering your suggestions
i have short listed the below for my SIP
Franklin India short term growth (min 3 years) – 2000
Based on my risk apetitie long term for more than 10 years goal equity
HDFC Balanced fund – 2000
L and T emerging fund (mid cap) – 2000
SBI Blue chip (Large caP) – 2000
Need your susggestions on,
1. To start with SIP does the above plan look good?
2. Adding one MF in small cap/diverisified caps does it help ?
3. Do you suggest any other fund over the above?
You blog on wbesites which allow direct investments was really helpfull to me.
I have selected Kuvera and they have everything except FTT.
Basavaraj Tonagatti
Sat-Regarding your short term goal, stick to ultra short term debt fund. Regarding your long term goal, where is your debt category?
sat
For Debts i have PPF (usually its not long term but no plan of removing it), bank FDs, and still shortlisting few short term and long term debt funds.
Kindly suggest me on my above points
Basavaraj Tonagatti
Sat-Choose PPF if your goal tenure matching with a maturity of PPF. Then what is the use of such debt product?
sat
Hi Basu, My apologies i missed giving few points
For short term debts i have planned few ultra short term bonds, PPF for one of the goal. Bank FDs as remaining Debts. Need your suggestion on the with respect to my equity selection which i am about to start as detailed in my initial post.
Basavaraj Tonagatti
Sat-Consider HDFC Balanced as 100% equity. Also, HDFC Balanced Fund holding around 75% in large cap. Hence, in total SBI and HDFC created overexposure to large cap. Instead, use one small cap (not more than 20% of your equity portfolio).
sat
Basu sir thanks for the reply really appreciated i did not think about this. Good that i contacted u during my planning stage of SIP.
I have not yet started with them have waiting for bank’s approval with kuvera once done will place order. I got Kuvera suggestion from you blog which helped me lot and i have suggested to many friends also.
So as per u r suggestion
1. Large cap – Will consider HDFC balanced and will not start with SBI blue chip. hope this is fine?
2. Mid cap – Land T emerging – hope this is fine.?
3. Small cap – which one would u suggest among DSP BlackRock Micro Cap Fund – Direct Plan, Franklin India Smaller Companies Fund or Reliance Small Cap Fund. Will make sure not to cross more than 20% of equity/
Kindly guide me as i am at last stage of my planning and will be starting SIP
Basavaraj Tonagatti
Sat-1) Stick to SBI.
2) Yes, go ahead.
3) Franklin as DSPBR as of now not available.
sat
Hi Basu sir,
Thanks a lot for quick response, this really helped me not to do wrong planning.
For equity I have gone with formula of 60% 30% and 20%. I have planned all in kuvera and FTT in FTT website as kuvera still doesn’t support.
Thanks a lot for good blogs. Keep writing such blogs which helps us a lot.
sat
sorry for typo its 50% 30% and 20%
Basavaraj Tonagatti
Sat-If Kuvera not support, then better to use MFU.
kalai
FT will be on board Kuvera in couple of weeks, – This is update from CEO of kuvera,
sat
Thanks for letting me know. MF utility is best and it has everything under it, but they are taking lot of time to complete my ekyc and not responding to me from more than a week. Hence, I have registered all from Kuvera and for Franklin i have directly invested from Franklin website it was online and easy also. So everything is set now.
Basavaraj Tonagatti
Sat-It is your personal comfort that matters the most. So if you are comfortable with the current set up then no need to worry.
sat
Hi Basu sir, I have one more small question heard form kuvera that few of MFs allow SIPs on particular dates only based on something called BSE and AMC. Hence as per that my SIP start date is 25th not before than that so does this mean we have no other option to buy invest before that or is this dates only from Kuvera
Basavaraj Tonagatti
Sat-All compnies specify few specific SIP dates (nowadays few companies offers any date of your choice). Hence, better to first check with mutual fund companies portal. I think it is not related to Kuvera.
sat
Thanks a lot for the inputs highly appreciated. Will check regarding the same
Ajay
Hello Basu,
I want to invest around 5000 rs per month I am 25 years old and i have just started earning so can you recommend me where should I invest.
Basavaraj Tonagatti
Ajay-First read above post about from where to start and then think of where to invest. Please read above post and if you still have doubts, then we discuss the same again.
Alfin
Hi, What should be the ratio of large cap, mid cap and small cap. Kindly reply
Basavaraj Tonagatti
Alfin-It depends on your goal.
Alfin
Whats the recommended ratio for a goal of 15 years
Basavaraj Tonagatti
Alfin-Equity to Debt 70:30. In Debt, use either PPF or Ultra Short Term Debt Fund. For Equity, one large cap, one mid cap and one small cap in the ratio of 50:30:20.
Alfin
One more doubt. Please suggest a small cap fund apart from franklin indian smaller company. I started in franklin india smaller companies. This is for my wife(as part of diversification ) .
Basavaraj Tonagatti
Alfin-Why not use the same?
Alfin
For better diversification. Is it a good idea. Husband snd wife using different funds. Please suggest your opinion.
Basavaraj Tonagatti
Alfin-You may do so no harm in that.
Alfin
Kindly suggest a small cap fund.
Basavaraj Tonagatti
Alfin-SBI Small and Midcap Fund.
Alfin
Hi, SBI Small & Midcap Fund is not open for new investments. Kindly suggest a small cap fund
Basavaraj Tonagatti
Alfin-Check it’s benchmark and current portfolio, around 65% in small cap.
Alfin
That was not i am asking. They have suspended investing temporarily. So kindly suggest a small cap fund other than franklin smaller companies.
Basavaraj Tonagatti
Alfin-In my radar only 2-3 funds.
Alfin
Thanks ji
Raj
Hello Basu,
I am 39 yrs old nri. I just started my SIP (robo advisory from a website) from this month as follows:
Aditya Birla Sun Life Frontline Equity Fund-Growth-Direct Plan: Rs 5200/pm
Franklin India Prima Fund-Direct-Growth: Rs 3900/pm
Icici Prudential Income Opportunities Fund-Direct Plan – Growth: Rs 3900/pm.
Equity if 70% as you suggested somewhere in your website!
My intention is to invest for about 14 years for my child’s education. Risk: moderate to high!
I would be very happy to receive your suggestion. Any changes, adding one more mutual fund, ??? Since I am nri, do I need to also consider for tax decuction? if yes how? just adding some tax saver mutual fund?
Thanks
Raj.
Basavaraj Tonagatti
Raj-I suggest you to move from Income Fund (Income Opp Fund) to Ultra Short Term Debt Fund. You no need to add any new fund.
Devan
Basu,
I am planning to move my investment to that same Robo portal which Raj mentioned in this post.
What should i do with my existing funds. Can i stop investing in the existing funds and continue with Robo recommended funds.
Basavaraj Tonagatti
Devan-Whether they are direct funds or regular funds?
Devan
They are Direct funds only.
Basavaraj Tonagatti
Devan-If the new platform offers that, then you no need to do anything. Simply unsubscribe from existing platform and create login into there. Based on your PAN, your existing investments will show in that new platform.
Devan
Ok fine, I will do the importing of portfolio to new platform.
Should i stop further investments on the existing funds and start Fresh investment from next month on wards with Robo recommended funds ( 2 Equity fund & 1 UST fund) .
Basavaraj Tonagatti
Devan-Why to stop and why not continue? You are just changing the platform but not funds.
Devan
Sorry, I have not mentioned it properly to you . Actually i am changing the funds.
I am trying to declutter my portfolio. I am interested to continue only with Robo recommended funds for all the goals.
Basavaraj Tonagatti
Devan-In that case start freshly using the new platform.
Raj
Hello Basu,
Thanks for looking in to my case. I am very new to MF. Just getting help from all. Since I just started SIP (yesterday!), if I change that income fund to ultra short term term debt fund will need to pay fees? I selected IDFC Ultra Short Term Fund !
Thanks again.
Raj.
Basavaraj Tonagatti
Raj-As of now you request for SIP cancellation. Once that is stopped, then start fresh SIP in new fund. Let the one more SIP amount be there. After considering exit load and taxation, you can later switch to new fund.
Raj
Thanks! I understand what your are saying. I think I have to check the exit load, I will either switch to the new fund (you recommended ultra shortr debt fund). I am currently invest via invezta and there is a option for switching funds within the goal, which I set. I appreciate your service. Especially reading other replies are also helpful.
Regards, Raj.
pappu
Do we need to include Index funds in our portfolio?
Basavaraj Tonagatti
Pappu-I usually stays away. Mainly because of expenses and taxation.
pappu
Index funds are supposed to have low expenses.
Is taxation of Index funds different from other equity funds?
Basavaraj Tonagatti
Pappu-Index Funds also treated like equity funds for taxation. There is no special treatment for Index Funds when it comes to taxation.
Sayeeganesh S
Hi Basu,
After the annual budget 2018, the government is going to bring back the LTCG on equities. How this is going to affect the existing investors and the new investors. Is it advisable to invest money in equities?
Thanks!
Basavaraj Tonagatti
Sayeeganesh-Refer my post “Budget 2018 LTCG Tax on Stocks and Mutual funds“.
Praveen
Dear Basu,
I had general doubt in ULIP. It is basically market based, If market goes up it will grow and vice versa. It will give non granted return. Can you tell me avg return value of ULIP product with an period of 15 yrs.
Basavaraj Tonagatti
Praveen-Hard to generalize.
Praveen
Basu: Actually I had offer from SBI Life Ins agent telling that smart scholar child plan(ULIP) will give return more than 12% compared with smart champ traditional child plan of 4%. So that only I asked whether ULIP will give avg return of 12% +/-2% ?
Basavaraj Tonagatti
Praveen-Definitely ULIPs may have higher edge than traditional plans (irrespective of insurance company). But the return generation of 12% mainly depends on the expenses involved in such plans, fund manager’s past performance and what theme they follow for equity and debt. Hence, it is hard to say and generalize that all ULIPs generate 12% returns. In my view, better to stay away from products which combine insurance with investment.
Praveen
Thanks guys.
Rag
First of all, not all your money is invested. Some part goes into charges. The rest of the money is invested in a blend of products. The user can tweak the blend according to his risk/needs. Etc. So return could be very varied
Prakash Y
I want to have SIP for Rs 15000 per month. Kindly advise me better SIP plan with moderate risk & aggressive risk for long term.
Thanks in advance.
Basavaraj Tonagatti
Prakash-My funds are already listed in above post.
Rishab
Sir,
I want to ask few common questions cause I am confused with Google information.
1) Suppose, today is Saturday (market holiday) and I redeem my Mutual funds. So, will I get Friday NAV or Monday NAV Price?
2) Suppose, bear market trends starts and I want to invest in lump sum. Today its Monday and example Sensex below 500 points. At what time should I invest to get Monday NAV before 3PM or after 3PM?
3) Does NAV of mutual funds changes every second like stocks? If yes, Lump Sum amount exact time also matters? Example – 1PM market in positive 100+ (NAV 10) and 2 PM market is 100 – (NAV 9) so it means, if I invest in LUMP sum at 2PM, I will get Nav 9?
4) I understand, no one can time the market but as you have good financial and market knowledge. Dont you think, market is in over valued situation (P/E ratio very high) and this bubble can burst anytime?
Please clear my doubts. Thanks!
Basavaraj Tonagatti
Rishab-1) Monday NAV.
2) Based on the fund category (debt and equity), there is a cut off time. If you purchase within that time on that day (funds must be realized to AMC), then the same day NAV will be applicable).
3) NO.
4) I never ran behind NOISE whether it is BULL or BEAR.
Sayeeganesh
Hi Basavaraj,
Which category should I treat multi cap? Does it come under Large or Mid or Small cap? And is it safer to go for balanced fund as it does not have LTCG tax?
Thanks!
Ragesh
Multicap means it has allocation in large, mid and small. It is diversified. Any equity fund whether large, multi, mid, small of balanced (equity oriented) , arbitrage, all these do not have any LTCG tax if held for 1 year+
Basavaraj Tonagatti
Sayeeganesh-Multi Cap funds have mandate to move any type of market cap as per the opportunity the fund manager find. Hence, you can’t say specifically which type of market cap they follow. Balanced Funds also bears the same risk like any other equity funds. Hence, you must understand where your equity portfolio and debt portfolio is. Blind following of Balanced Funds as lesser risky may be dangerous to you. Yes, Balanced Funds also considered as equity funds and hence they are tax-free if you held for more than a year.
Rathesh
I am a newbie to investing, Planning to invest long, mid and short term in the ratio 50:25:25 depending upon my goals.
Does the cap refers to investment term period ?
Ragesh
Cap refers to market capitalisation . Cap = total number of outstanding shares * current market price per share. Large cap companies are typically large companies with many decades of existence. They are stable and are less affected by the turmoils compared to mid and small caps . But on the flip side, large caps grow in a sedate manner compared to mid and small caps. So in the very long run, large caps grow slower than mid and small but are more stable
Basavaraj Tonagatti
Rathesh-Identify the goals first. Based on time horizon you must treat each goal separately and do asset allocation.
Bharath
Hi Basu,
Thanks for nice article, which give a lot of insight on MF. Am a working professional earning 40k.
My asset allocation as you mentioned its around 60:40.
In equity am investing in the below funds
1. Reliance ELSS(5k)
2. ICICI prud ELSS(5k)
3. HDFC Balance Fund(5k)
4. L&T Emerging fund(3k)
Debt portfolio, am not investing on any mutual funds
1. PPF 50,000/annum
2. Recurring Deposit 8000/month
Am planning for NPS.
Above mentioned mutual funds for 10 years time line, for children. Please suggest whether mentioned portfolio is good to go or any suggestion ??
Thanks,
Bharath
Basavaraj Tonagatti
Bharath-Debt portfolio also for 10 years?
Bharath
Ya debt folio also for 5-8 years range.
Basavaraj Tonagatti
Bharath-So you mean PPF, RD and NPS will close at 5-8 years?
Bharath
Hi Basu,
PPF started before 2 years as per my knowledge it’s for 15 years. Coming to RD it’s for 5-8years and NPS Yet to start (is it suggest able ?)
Basavaraj Tonagatti
Bharath-So for asset allocation, you must not consider PPF and NPS (stay away). Only RD is considerable for this. Instead of RD, why not use debt funds?
Bharath
Hi Basu,
Thanks for your suggestion I won’t go for NPS and I will reduce my contribution to PPF and RD, the reduction amount I will obese in debt funds based on your blog(top debt funds ). That’s fine right ?? Or anyother suggestion ??
Thanks, Bharath
Basavaraj Tonagatti
Bharath-Yes, but stick to ultra short term debt funds.
Raj
Hi Basu, I would like to make investment of 10 years and 5 years period each separately for my 2 kids education and marriage. Please can you advise the portfolio I should stick to.
Basavaraj Tonagatti
Raj-Refer the asset allocation I referred in above post.
hanichitta
Dear Sir,
I am 39 year old working in a public sector enterprise. My family includes-
wife-37 yr ( house wife)
Son -10 yr
Father -75 yr.
Mother-70 yr.
1. My gross salary is 1.20 lac Per month. Take home is about 80,000.
2. My goals are –
Retirement corpus- 8 crore (2038)
child education- 1.5 crore (2025)
Child marriage- 1 crore. (2033)
Foreign tour – 5 lakh (2020)
3. I have contingency fund of about 2 lacs kept in liquid fund.(franklin treasury management fund).
4. Though wife , son and myself are covered in health insurance by employer, for my parents, i have none.
5. I have term insurance plan for 1 crore.
6. I am investing about 74,000 per annum in Postal life insurance (10 lac SA) and SBI unit-plus-II (3.6 lac SA)
7. Recently i have opened national pension scheme account. I plan to invest 50,000 annually.
8.My mutual fund exposure is as follows.All are direct-Growth
1. ICICI prudential value discovery fund- SIP- Rs-2500
2. HDFC mid cap opertunities-3000 SIP
3. SBI bluechip-3000 SIP
4. Franklin templeton smaller companies fund-3500 SIP.
9. I have home loan of 18600 EMI (till 2029).
Pl advise
1. How to meet goals
2. Fund selection is ok
Basavaraj Tonagatti
Hanchitta-Sadly whole financial planning can’t be done with mere few lines of sharing. Please refer the above post. If you can do then go ahead. Otherwise, consult a fee-only planner.
Ashok Kumar Mishra
Sir Good Morning.
I have the following SIP-Having Horizon 7 years
Large Cap-ICICI PRE FOCUSED BLUE CHIP FUND DIRECT- 5000/-PM.
Large Cap-SBI Blue Chip Fund-3000/PM.
Mid CaP-SBI MAGNUM MULTICAP FUND-3000/PM
Small Cap- DSP BLACK ROCK MICRO CAP FUND-5000/PM.
Debt Fund-Looked after by PPF.
Your Sincere advice please.
Basavaraj Tonagatti
Ashok-Whether your PPF maturity is 7 years away? What asset allocation you are performing between debt and equity? Why two large cap funds?
Ashok Kumar Mishra
Sir Good Morning.
I have the following SIP-
Large Cap-ICICI PRE FOCUSED BLUE CHIP FUND DIRECT- 5000/-PM.
Large Cap-SBI Blue Chip Fund-3000/PM.
Mid CaP-SBI MAGNUM MULTICAP FUND-3000/PM
Small Cap- DSP BLACK ROCK MICRO CAP FUND-5000/PM.
Debt Fund-Looked after by PPF.
Your Sincere advice please.
Basavaraj Tonagatti
Ashok-Asset allocation ratio? time horizon? Why two large cap funds?
Devan
Basu,
How to find the Market cap of the fund. Portals are giving different definition. For instance what is the market cap of Quantum long term equity fund.
Different definitions from portals as Large cap / Diversified / Flexicap – Too confusing.
I want to construct portfolio with a pure large cap fund . As an investor how do i find the correct market cap of the fund.
Is it Bench mark of the fund ( like BSE 100, Nifty 50) will give clear picture.
Devan
Quantum long term equity investing in the S&P BSE 200 companies, but its bench mark is BSE 30 TRI.
What does it mean. If it chooses BSE 200, then benchmark should be the same. Confusion 🙂
Basavaraj Tonagatti
Devan-All other funds as of now used to follow simple index (excluding dividend income). Whereas Quantum is the only fund house which considered TRI (Total Return Index), which also considered as dividend declared by stocks are considered as re-invested. This is the best practice, which now slowly all started to follow and SEBI also warned all AMCs now follow TRI rather than normal index.
All AMCs simply avoided TRI. Because it is hard to beat the TRI index and show the investors that they have generated alpha 🙂
Basavaraj Tonagatti
Devan-Visit the Quantum AMC portal. Check the latest fact sheet.
Devan
Thanks Basu , Quantum i just quoted as an example.
Generally as an investor where to find the correct market cap of the fund.
For instance if its Large cap fund, – It should have bench mark / selection of stocks from BSE 30 / Nifty 50.
Because some of the funds using BSE 500 / BSE 100 – Totally i am clueless , is there any mandate that Funds to be looked upon . I know SEBI new rule will clear this confusion.
As an investor, how do you look into the information before you select the fund
Basavaraj Tonagatti
Devan-I can understand your frustration and hence is the SEBIs new categorization. As of now, you can follow the funds based on their major chunk of the portfolio. Benchmark can be found in factsheet of the fund.
Mukul
Basu ji,
I am following your blg from last 2 years…
Kindly review my MF portfolio: I have following fund in which SIP is going on. All investments are using MFU platform Direct growth: I do not follow any adviser.
SIPs are going on form Oct 2015. recently I have added Principal as mentioned below. Investments are for long term 18 years.
Axis Long term elss 4000/pm
ABSL Top 100 3500/pm
ICICI pru val discovery 1000/pm
Mirae asset emerging bluechip 3000/pm
Principal emerging bluechip 3000/pm
HDFC balanced 2500/pm —– (shot term goals)
I am handling my debt part by investments in PPF and FDs. (Equity:debt is 70:30)
Regards
Mukul
Basavaraj Tonagatti
Mukul-Why two mid caps? Also, why you are holding HDFC fund for short term? Invest in HDFC fund also if your holding period is more than 5 years and again with proper asset allocation.
Mukul
Basu Sir, Thanks you. I was out of station.
1. Keeping two mid caps will be an issue. Please clarify this sir. Since my time horizon is 18 years, I have splitted my investments in two mid caps instead of one. Just thinking that it will maximize the return. Otherwise Principal emerging blue-chip has higher risk as compared to Mirae asset emerging bluechip. I am fine with that.
2. HDFC balanced my time horizon is 9 years.
Basavaraj Tonagatti
Mukul-1) But whether you checked overlap %?
2) Treat HDFC Balanced fund as 100% equity.
Mukul
Thanks Sir. Yes I checked that.
Overlap is around 20%. This should be fine.
Basavaraj Tonagatti
Mukul-Should be fine but do think it is right strategy to have higher exposure to any particular market cap?
jai
Sir i have sip 2000/ sbi magnum midcap my question is should i need to switch in any other fund and stop sip in this fund or can i continue my sip in this fund i am planning to switch sip in Sundaram Select Midcap Fund please suggest me time horizon is 7-9 year
Basavaraj Tonagatti
Jai-7-9 years goal and mid cap selection? What prompted you to select this fund ALONE?
jai vyas
I NOT SELECT THIS FUND ALONE I HAVE ALSO SOME FUND MI MY PORTFOLIO I JUST WANT KNOW ABOUT THIS FUND ITS UNDER PERFORM
Basavaraj Tonagatti
Jai-It is underperforming to it’s benchmark since 1-2 years. Hence, it is now you can take a call.
jai vyas
thanks sir
Devan
Hi basu,
If we maintain a common single portfolio(equity and debt funds) for all the goals, How to track each goal progress.
Should we track each goals or we will treat it as single basket of money and withdraw whenever the particular goal comes to end of tenure.
Bit confused ,when reading about re-balancing of portfolio. How to implement re-balancing it in Single portfolio.
Basavaraj Tonagatti
Devan-Many confused on this. Let me write a separate post on this aspect.
Devan
Thanks Basu, Yes you are correct, I am unable to find any clear post on this topic.
Too much confusion on which would be the easy approach ( Single / Multi portfolio) for an DIY investor..
Ashwin
Helo sir,
I m new to MFs and i have set up below portfolio for SIP
Mirae Asset India Opportunities Fund-Reg(G) – 3500/-
DSPBR Opportunities Fund-Reg(G – 2000/-
SBI BlueChip Fund-Reg(G)- 2000/-
I m looking for a long term wealth plan close to 10 years. Is this funds fine? Also i m planning to add 1 more fund for Rs 2000 SIP do u have any suggestion on any fund?
Basavaraj Tonagatti
Ashwin-Whether you read above post properly? Where is your asset allocation?
Ashwin
You means i have to allocate as mentioned below?
If the goal is 5 years to 10 years-Allocate debt:equity in the ratio of 40:60.
Basavaraj Tonagatti
Ashwin-YES.
Ganesh
Hi Basu
My 80-C limits are already exhausted by way of PPF, Sukanya Samridhi, Principal repayment of housing loan, NPS and LIC.
So is there any benefit in starting SIP in ELSS ?
Can you please suggest some other alternative funds/category to generate income without attracting STCG or LTCG taxes? My investment horizon is 1-2 years; maximum of 10,000 per month (SIP).
Thanks
Ganesh
Basavaraj Tonagatti
Ganesh-Stay away from equity if your time horizon is less than 5 years. Also, never invest in a product with the mindset of TAX SAVING ONLY. If your Sec.80C limit fulfilled, then you no need to invest in ELSS.
Ganesh
Thanks for the reply. So can you pls suggest some other fund categories (debt, hybrid, arbitrage, etc??) to park my money?
Basavaraj Tonagatti
Ganesh-Refer my posts “Top 5 Best Balanced Funds 2018 to invest in India” and “Top and Best Debt Mutual Funds to invest in 2018“.
Ragesh
Dear Basu,
Nice Blog. The below is my SIP portfolio. Hope this is fine? This comprises of my 10 year interim goals as well as my 25 year retirement goal
Large:
1. Motilal Oswal Focused 25
2. Mirae Asset India Opportunities
Multi
3. Motilal Oswal Most Focused 35
Mid:
4. Aditya Birla Sun Life Pure Value
Small:
5. L&T Emerging Business
6. Reliance Small Cap
Balanced
7. Tata Retirement Savings Moderate Growth
Basavaraj Tonagatti
Ragesh-Where is your debt portfolio?
Ragesh
Hi Basu ,
Sorry I might have missed it. Debt is handled by a small lumpsum in Franklin Ultra Short Term, a SIP from next month in BNP Paribas Govt Sec, PF, VPF, PPF Monthly
Basavaraj Tonagatti
Ragesh-Funds are new and hence are performing good due to market conditions. But keep an eye when market start to fall. I am not sure what prompted you to select Tata Retirement Fund, which has exit load if you retire before 60 years of age.
Ragesh
Thanks Sir,
Sure I will watch them. I had selected it because it had good performance but also to discourage myself from impulse selling/redeeming 🙂
Basavaraj Tonagatti
Ragesh-Great.
Ragesh
Thank you
Dr. subramaniam
Sir, I am investing in these three funds. I want to know your opinion on them. Can you please help me with your review. Thank you for writing the blogs.
1. Birla SL Equity
2. DSP blackrockt Top 100
3. Reliance regular savings – growth equity
Basavaraj Tonagatti
Dr.Subramaniam-It is hard for me to guide without knowing time horizon and what asset allocation you are following.
Dr. subramaniam
Sir, I am putting rupees 25000 in the three funds. another rupees 25000 in recurring deposit (every month) and 4,00,00 in fixed deposit. I can tolerate medium risk Sir.
I am saving this 25000 rupees in MF for 15-20 years, keeping for retirement. I am 45 now.
Please help me with it. Thank you for your help.
VIJAY L SHINDE
sir i have invest in mutual fund . I am expecting to gain return within next 3 years.Hence please suggest me good
mutual fund today
Basavaraj Tonagatti
Vijay-Don’t touch equity funds but invest in debt funds.
Chandra
Hi,
My calculation shows I need to invest 75K permonth to achieve my all 3 terms goals[further study, house, car]. I am afraid if I should put all 75K in mutual funds. Is it safe enough to put all my investment part in SIPs or I should do 30% or 75K in the form of bank RD as it’s most safes?
Basavaraj Tonagatti
Chandra-You did the calculation and if you did the asset allocation also but fearing of equity, then you have no option but to stay away from equity and invest more in debt products to achieve your financial goals. At the end, it is your RISK taking ability that matters to YOU.
Deepak
Dear Sir,
I have 40:60 goal and already have monthly SIP of 5000 Rs. each in five of the top 10 best funds you mentioned for 2018. i.e. total monthly investment of 25000 Rs.
I am looking to invest gradually a sum of 10 lakhs in next 6 months to this portfolio, please could you suggest me the right frequency and the right time to start given the current uptrend in the market.
Regards,
Deepak
Basavaraj Tonagatti
Deepak-Do the asset allocation at first. For debt, invest lump sum in one shot. For equity, you can spread the investment for over 5-6 months (if you are feeling apprehension about the current market trend).
Devan
Hi Basu
I have a listed out long term goals ( totally 6 goals ) and decided asset allocation as 70:30(Eq:Debt). Now for equity funds selection, i am going to pick one Large cap , Once Mid cap and one Small cap fund = 3 Funds per goal.
Now my query for 6 goals, can choose different funds / same funds . My doubt is if the same funds selected for all the goals, then the fate of all the goals lies on the fund performance .
Suppose if i have selected different funds for goals, there may be chances that some of the goals may good perform and other may lag.
So bit confused , how to finalize , whether different funds or same funds for all 6 goals. Kindly advice
Basavaraj Tonagatti
Devan-Even if you chosen different 3 funds for all 6 goals separately, then the underlying assets are same or different?
Devan
” underlying assets are same or different? ” – Do you mean the stocks holdings of the funds chosen.
I am not getting you . Sorry.
My understanding is, If i select only 3 funds for all the goals( same of different folios) then if the fund is not performing well, then all the goals will be affected.
Suppose if i have different funds for all the goals ( 3 Funds per Goal). Not all the goals will depend on the same fund performance.
What could be the problem, if we have more funds,rather than strict to 3-4 funds. Because each goal with 3 funds will be treated separately as each portfolio. Hope there will no overlap also. and even one fund is not performing will only affect that particular goal and not all .
Basavaraj Tonagatti
Devan-There are no problems in holding 3 funds or 300 funds as long as you are capable of managing those funds and also understanding the overlapping conditions.
Devan
Thanks for reply.
If i am comfortable in managing each portfolio with the selected funds (1 Large, 1 Mid, 1 small, 1 UST debt ) , then this will be treated as individual unit of investments.
There is no need to worry on overlap, my point is when you select each fund from Market cap category , then easily overlap will be avoided.
This is my understanding.
Basavaraj Tonagatti
Devan-Overlap in each portfolio matters. Hence, be an eye on that also.
Devan
Each portfolio with the selected funds (1 Large, 1 Mid, 1 small, 1 UST debt ) , Do you think still overlap comes in picture.
Because if we select the fund which is following pure mandate of following market cap , then there will be less/little overlap between funds.
Kindly share your thoughts .
Basavaraj Tonagatti
Devan-If we consider separately then NO. However, what I am trying to say is have an EYE. Because many miss this to test.
Devan
Still if i feel there is overlap between mid and small cap funds, Because most of the mid cap funds are having some considerable exposure in Small caps.
Finding pure mid or pure small cap is challenging , What do you say.
Basavaraj Tonagatti
Devan-This issue will soon be resolved once AMCs start implementing new SEBI’s categorization rules. Till that period, you have to wait.
Nida Hussain
Hi Basu,
Thanks for your detailed analysis and the wonderful blog you run.
I am a beginner in the MF investments.
I have a financial goal tenure of 10 years for my retirement from IT. I am 30 and currently a software architect based out of Delhi looking for an early retirement to pursue my other interests in about 10 years.
I can allocate a total of Rs 50000 per month from my salary for overall investments . I will be increasing this overall allocation by 10-15% every year .
Currently I have allocated Rs 20000 monthly to flexible RD products as per your planning guide.
I am now planning to invest remaining Rs 30000 in equity based MFs on SIP basis for long term wealth gain –
Here is the SIP folio I have finalized:
ICICI Pru Focused Bluechip Equity-G : Rs 10,000
HDFC Balanced Fund : Rs 10000
HDFC MID-CAP OPPORTUNITIES FUND – G : Rs 5000
Mirae Asset India Opportunities Fund – Regular G: Rs 5000 (Other options in this category – SBI Magnum Multi Cap Fund OR Franklin India Prime Plus)
Can you please provide your valuable inputs on the above? Is the SIP folio good to go with?
Do you recommend any specific MF in multi cap category?
Thanks for your time.
Thanks,
Nida
Basavaraj Tonagatti
Nida-Why RD for long term goal debt? Also, regarding equity, You can stick to the funds you have opted, but with proper asset allocation based on your time horizon.
Nida Hussain
Thanks for replying. So, are you suggesting to go for debt funds instead of RD?
I thought of going 40% total safe on overall allocation which may be utilized as emergency fund .
debt funds that I shortlisted based on your blog : SBI MAGNUM GILT FUND, IDFC ULTRA SHORT TERM FUND
Also, is the amount percentage allocation fine between the equity funds to start with?
My risk profile : Moderately high
Thanks,
Nida
Basavaraj Tonagatti
Nida-You are going 40% for emergency fund?
Nida Hussain
Based on your inputs , I have updated my asset allocation for a total of 30k per month allocation. I will keep emergency fund of 20k per month as liquid.
Here is the updated SIP book:
Rs 25,000 portfolio
Equity (Rs 15000)
ICICI Pru Focused Bluechip Equity-G : Rs 4500
HDFC Balanced Fund : Rs 4000
HDFC MID-CAP OPPORTUNITIES FUND : 3500
Mirae Asset India Opportunities Fund – Regular G: 3000
Debt
SBI MAGNUM GILT FUND Short Term : 10,000
Tax saving folio :
Tata India Tax savings fund – Rs 5000 per month
rest amount comes from PF and VPF)
Is it good to go now?
Thanks,
Nida
Basavaraj Tonagatti
Nida-HDFC Balanced Fund also holds major chunk in large cap. Then you will be overweighted towards large cap also Mira is currently large cap. Hence, select one pure large cap and one mid cap.
Nida Hussain
Thanks a lot for pointing this out. I will just pick one large cap.
Which large cap ones of the below do you recommend for moderately -high risk profile? :
ICICI PRU focussed bluechip G
Mirae Asset india opp
SBI bluechip
Kotak select focus
Basavaraj Tonagatti
Nida-SBI.
Amit Gupta
Hi Basu,
I am Dr. Amit. 1st I should admit, that i am a big fan of your blogs specially related to Insurance sector, since I work with one of standalone health insurance company.
Recently, while searching on MF’s, i came around with your blogs on same topic which interested me. Let me tell you my demography, Age -40, Investment plan – 10 yrs at least, appetite – lets says 60:30:10 (equity:debt:balanced), goal – wealth creation for my son who is 8 yrs old now. I am in 20% tax bracket for now.
Here is my portfolio mentioned below:
SBI Magnum Gilt Fund Long Term Direct Plan Growth 4000/month
SBI FMCG Fund Direct Plan Growth 2000/month
Reliance Tax Saver ELSS Fund Direct Plan Growth Plan Growth 1000/month
ICICI Prudential Top 100 Fund Direct Plan Growth 1000/month
ICICI Prudential Long Term Direct Plan Growth 3000/month
Want to add:
ABSL tax saver 96 2000/month
HDFC balanced 2000/month
DSP Micro cap 1000/month
ICICI Prudential Banking and Financial Services Fund Direct Plan Growth 1000/month
Kindly suggest, if any modification required in sector allocation keeping 7-10 yrs in mind. Also. request to suggest any better fund.
Thanks in advance.
Basavaraj Tonagatti
Amit-Kindly stay away from sector funds and long term gilt funds. Also, in balanced fund allocation, there is again equity exposure. If we consider that, then your overall equity exposure go at higher end.
Amit Gupta
Hi Basu.
Thanks for prompt reply.
You mean to say that my ideal exposure should be 50:40:10?
Can you please suggest correct allocation and right funds for 7-10 yrs investment.
Basavaraj Tonagatti
Amit-Do asset allocation as I said in above post.
babu battacharya
dear Sir
IF I make a CAN in MF Utilities India Pvt Ltd. and invest through it then is this service fully free service to the direct investor? or there is some fees to be paid?
thank you
Abhi
Is it right time to start sip when mutul fund nav is at high or wait for some time
Basavaraj Tonagatti
Abhi-NAV matters or fund performance?
babu battacharya
Dear Vasu
I came to know from your blog that direct investor can invest thru MF Utilities India Pvt Ltd.
Now my question is
1) Is this service fully free service to the direct investor? or there is some fees to be paid?
2) Does MF Utilities act as a distributor to the MF houses and earn commission?
3) If Suppose , I open eCAN a/c with MF Utility then , Will my NAV value of the scheme will be lower than the normal direct investor’s NAV value ? (which got invested thru MF website ) ?
warm regards
Basavaraj Tonagatti
Babu-1) It is fully FREE.
2) MFU does not act as a distributor but a facilitator for investors backed by all AMCs.
3) My NAV means direct funds NAV or regular funds?
babu battacharya
“My NAV” means NAV’s of the units purchased thru the MF utility CAN registration number. in other words, is there 3rd type of NAV’s , i.e. Regular NAV, Direct NAV and MF Utility NAV with difference price point?
warm regards
Basavaraj Tonagatti
Babu-No such difference if you purchase with MFU. The NAV will be same as that of applicable to regular and direct.
Mayank
Hello Sir,
Thanks for sharing this detailed information on SIP.
Can you please share any MF which are new in market where NAV would be less and looks promising . As this MF would give a very high returns on long term investment.
Even let me know what factors needs to be considered for investing in such new schemes.
Based on history users who had invested 10-15 years ago are well settled now because they took risks and invested in Start ups scheme . All such schemes are still outperforming but return yield is not that high for new investors against the one who invested in the same schemes when they were launched.
Even do we have any references for Schemes for lump sum investment.Please share you view and comments on such schemes which looks promising for 2018.
Thanks
Mayank
Basavaraj Tonagatti
Mayank-How you assumed that for NEW INVESTORS one must in low NAV Funds ONLY? For you NAV matters or Fund Performance? If the fund is performing consistently, then why not invest in the same OLD fund? The success in equity based on PATIENCE than chasing funds or returns.
Mayank
Sri,
Thank you for your response.
So I think it I did not communicate my message correctly.
I have invested in 5 Years in SIP in 60:40 Equity : Debt ratio which includes all the top funds which you have listed .
I wanted to invest in Newly Scheme which are not old then 1-2 years but based on the portfolio & other details you can predict can be good for long term. Advantage for me would be that I would have good no.s of MF Units after 5-10 years and the appreciation would high .
Again this is just my view on Investing. I know that my view might be wrong .
I am just worried as I started investing too late & i have so many upcoming plans where i would be ending up compromising my goals.Thus wanted to take small risks which can be helpful in long run.
So Please suggest me some MF where you see the portfolio looks good .
Apart from this Please share your views on Lump Sum MF Schemes . I am looking for 5 Years of investment .
Mayank
Sir,
I awaiting for your comments and on my previous response.
Thanks
Mayank
Mayank
Gm Sir,
I hope you got chance to read my comments .
Please respond and share your analysis.
Kalai
If my goal is More Than 10 plus years., Can I choose gilt medium fund. Some people suggest ultra short term funds for debt portion of portfolio. Intested to know why not Gilt.
Basavaraj Tonagatti
Kalai-Understand the basics of debt funds, modified duration, average maturity and credit rating. Then you will come to know why all NOWADAYS suggesting Ultra Short Term Debt Funds.
kalai
Thanks basu.
Reason for choosing Gilt funds – Credit quality. But not diversified like Ultra short , its an concentrated portfolio of govt loan,bonds.
How about return perspective compare to UST. Because some of RIAs recommending Gilt for purely Longer goals. Any other reasons for choosing UST, please list out for my learning purpose. If you have any post, kindly paste the link here.
Basavaraj Tonagatti
Kalai-Longer the maturity period of bond higher will be the volatility. You look for debt funds just to mitigate the volatility which is already there in equity. Not sure about RIAs. But as per me, Ultra Short Term Debt Funds or Short Term Gilt Funds are best to choose in debt category.
kalai
Thanks basu. Ok , then which type of the goal ,the investors can choose to Gilt funds.( Medium-Long term Gilt).
Can we diversify debt funds like equity. Reason is Gilt is only investing in Govt Securities .
Is there any category debt fund which is diversified and invest in all kind of debt instruments.
Basavaraj Tonagatti
Kalai-I already listed in my another blog (link provided in above post). In Gilt fund, there is only safe point is that NO DEFAULT RISK. But they are also part and parcel of volatility.
Vaskar Basak
Hi Basavaraj,
my current age : 35 yrs
Looking to create wealth of 7 Lacs in next 10 years
currently i invested in
Franklin India High Growth Companies Fund GROWTH -500 rs from last 3 years. ( looking for long term for 10 years
Franklin India PRIMA PLUS – GROWTH-500 rs from last 3 year (looking for long term for 10 years)
Franklin India PRIMA PLUS – GROWTH-500 rs from last 3 year (looking for long term for 10 years)
HDFC Balanced Fund – Regular Plan – Growth-500 rs from last 3 year (looking for long term for 10 years)
HDFC Prudence Fund – Regular Plan – Growth-500 rs from last 3 year (looking for long term for 10 years)
Pl suggest whether I should hold or redeem the funds and switch to another funds.
Thanks,
Vaskar
Basavaraj Tonagatti
Vaskar-Why multiple funds and same category of funds? Where is your asset allocation?
Vaskar Basak
Hello,
I would like to switch from HDFC Prudence Fund to HDFC Balanced Fund and from Franklin India PRIMA PLUS to Franklin India High Growth Companies Fund.Can you plz suggest me.
Basavaraj Tonagatti
Vaskar-May I know the reason for such switch?
Vaskar Basak
Now HDFC Prudence Fund is #3 in CRISIL ranking and it doesn’t good option to invest and all funds in the same category.Hence i want to optimized it.
Basavaraj Tonagatti
Vaskar-NEVER CHANGE FUND BASED ON RANKINGS. However, I agree that same category fund not required and you have to shortlist.
Kaushik
Hello Sir,
I want to invest a lumped sum of 2 lac as an investment for another 7years. What best fund would you suggest to have a good and safe return of the same.
Thank you
Basavaraj Tonagatti
Kaushik-Funds are listed above.
Rajesh
Hi Basavaraj,
Thanks for sharing the information, Find my portfolio below
ICICI-ICICI Prudential Long Term Equity Fund (Tax Saving) – Growth(4k)
RELIANCE TAX SAVER (ELSS) FUND – GROWTH PLAN – GROWTH OPTION – GROWTH (2k)
BirlaSoft – ABSL Top 100 Fund – Growth-DIRECT – (Large cap)(1.5k)
LNT – L&T Emerging Businesses Fund Direct Growth – (small & Mid cap)(1.5)
HDFC Balanced Fund (G)(2k)
Am looking this portfolio for 10 years, please let me know do I need to add any other funds/suggestions or continue with the existing funds. Am 26 years old and this is for future like children education
Basavaraj Tonagatti
Rajesh-Do asset allocation at first.
Rajesh
Hi Basavaraj,
In the above comment i didn’t mention about debt investment, am investing on RD which is 5k/per month, where as in equity 11k/per month.
Could you please let me know whether the portfolio is good? or any changes required? Pl sugggest
Thanks,
Rajesh
Basavaraj Tonagatti
Rajesh-I am not sure what asset allocation you are following (refer above post). However, for your goal time horizon, in equity one large cap and one mid cap is sufficient.
Niranjan
Dear people, I’m new to sip n want to start some investment for future saving.. I can invest around 2k monthly. Please provide me some short term and long term plans. I need some right guidance from experts.
Basavaraj Tonagatti
Niranjan-Read above post properly at first.
Ramani
Thanks for ur reply Basavaraj.
Long term means planning for my retirement. Wanted to stay invested for 10 yrs.
I have started invested in the below mentioned funds only from this month and if I have to change please advice. I have chosen these by reading blogs and online research.
DSP black rock small and mid cap Direct 3k
Motilal most focused 35 multi cap direct 3k
Adithya birla sunlife quity direct 2k
HDFC balanced fund growth direct 3k
SBI blue Chip fund growth Regular 3k
Relaince vision fund growth Regular 3k
Mirae asset India opportunity fund (g) regular 3k
L&T India value fund growth
Basavaraj Tonagatti
Ramani-SBI Bluechip, DSPBR and L&T India value fund enough for equity. For debt, use Ultra Short Term Debt Funds.
Vishnu
Hi Basavaraj, my goal is my retirement and a long term plan of 10 yrs and I started investing in mutual funds from this month. I am 40 yrs old. Kindly advice on the funds that I have chosen.i have done been reading blogs and googling in selecting these funds. I want to be sure of my selection. Please help.
DSP black rock small and mid cap
Motilal most focused 35
Hdfc balanced
Aditya birla frontline
Thanks in advance..
Govind kumar
Good day Mr.Basu
I want to start SIPs for the higher studies for my new born baby.
My time horizon is 15 yrs + and amount would be 20k. I am 31 yrs old and ready to take risk for more return. Where should I start my SIPs?
Basavaraj Tonagatti
Govind-Refer above post. Your all doubts were already answered.
Ramani
Hi Basavaraj,
I have started started in Mf from this month. I have choosen the below funds plz comment on the same. It’s for long term and I have diversified funds.. 25k per month. Since I have started this month, I have the option to change in case it’s required. Plz suggest.
DSP black rock
Aditya birla
Hdfc growth
Motilal
L and t
Mirae asset opportunity
Relaince vision
SBI blue Chip.
Basavaraj Tonagatti
Ramani-What do you mean by LONG TERM, DIVERSIFIED and also you have not mentioned the fund name properly.
Arjun
Hi basu sir,
I need your advice I have 4lakhs in my bank account as FD I am afraid about my money with Frdi bill , can I invest in debts Mf fund is it safe
Basavaraj Tonagatti
Arjun-It is the FALSE fear created through social media regarding FRDI BILL. Now, regarding investment, it is hard to suggest anything with your limited sharing.
Arjun
Could you please explain about FRDI
Basavaraj Tonagatti
Arjun-Let it be reality.
Neha Rathod
I am working as IT professional and also doing freelancing in the US. Can I use Presumptive Income Tax Scheme? Please help me Mr Basavaraj . Thank you in advance.
Basavaraj Tonagatti
Neha-Refer this FAQs. Because it is hard for me to suggest anything with mere few lines of sharing.
Neha Rathod
Ok, I have an IT job and plus doing/getting free lancing work from America. I am in 30% salary bracket. My employer is doing TDS at 30% for my job. How should I pay Taxes for my Freelance work. I heard something about – “Presumptive Income Tax Scheme”. can I use it? Do I need to pay taxes in India or in the US for the freelancing work. Thank you.
Basavaraj Tonagatti
Neha-You have to show your freelancing income as the income of Business and Profession. Regarding Presumptive Income Tax Scheme, refer the link I shared with you. You have to pay the taxes in India.
narayana singh
Good blog sir. I have a similar situation like this question. I am working in software industry and have the 30% taxable salary bracket. Now I am also in parallel working as a freelancer for American companies and taking work. My company is already deducting my 30% tax as per my salary.
The question is how should I pay my taxes for the freelance work? Will that be 1- presumptive tax scheme 2- 30% on my freelance income or 3. GST (export of services)?
Please help. Thank you.
Basavaraj Tonagatti
Narayana-Refer the link, which I shared.
Shivakumar
Hello, I am investing in Birla sunlife frontlife, SBI bluechip fund growth direct, DSP black rock top 100, and Reliance Regular Savings Growth Equity from last 7 years. How do you think these funds are? I am investing Rupees 20,000 now in all these. I want to invest another 5,000 rupees. Please advice. My one time horizon is 2 years and another is 10 years. Thank you for the help.
Basavaraj Tonagatti
Shivakumar-Funds may be GOOD, but stay away from equity for your 2 years goal. For 10 years goal, try to invest with proper asset allocation.
Shivakumar
Thank you for the reply. Ok, I will go with your advice. I am looking for 10 years with these funds. Also, want to invest 5,000 for 10 years through SIP. Do you think RD is a good investment for 2 years time horizon.
Basavaraj Tonagatti
Shivakumar-You can use RD or even Liquid Funds also.
Dominic
Hi Basu,
I have invested in the following funds:
Axis Long Term Equity Fund SIP Rs.2,000/- p.m
Franklin India Taxshield Fund SIP Rs. 2,000/- p.m
ICICI Prudential Long Term Equity Fund SIP Rs. 3,000/-
Reliance Tax Saver Fund SIP Rs. 3,000/-
I want to invest 50k lumpsum in the name of my wife for a period of 5years
I want to gift my god child (cousin’s new born baby girl) with some financial product i have a budget of 20k which will be for a period of 15years.
i thought of Sukanya Samriddhi Yojana (later the parents can keep depositing once a year), but i dont trust the govt, they keep reducing the interest rate.
Please suggest
Dominic
beside the above i have investment in PPF.
Should i invest 50k lumpsum in HDFC Midcap Opp fund (G).
just a thought that even for my god child if i could invest in a MF (lumpsum 20k).
please advice
Basavaraj Tonagatti
Dominic-For your 5 years goal, stay away from equity and use debt funds. Regarding another 15 years goal, first do asset allocation and then start investing. I am not sure why so many ELSS. One or two funds are enough. Stay away from Sukanya Samriddhi. Instead, use PPF as debt portion of your 15 year goal.
Pawan
Hi Basu,
Excellent blog I must say ! I have gone through your informative portal and I must say that it is one among the best I have seen in recent days.
Please cast your expert eye on my SIP portfolio as well and advise. I have been investing in below finds thru SIP since last 3-4 years now and was trying to find if any reallocation or changes required. I am looking it as a long-term investment (an alternative of the pension plan) (Not a big fan of pension plans).
1. HDFC TOP 200 FUND – GROWTH (4k per month)
2.HDFC BALANCED FUND – GROWTH (3.5k per month)
3. ICICI Pru Focused Bluechip Equity Fund Reg Plan Growth 3k per month)
4. IDFC Premier Equity Fund-Regular Plan – Growth (2.5K per month)
Thanks in advance !
Basavaraj Tonagatti
Pawan-Except ICICI, you can continue the rest. Where is your debt portfolio?
Pawan
Thanks Basu for the prompt response.
But ICICI Pru focused bluechip fund is also in your list of funds for 2018. Please help me understand, is it because my HDFC top 200 is of same category large cap?
Debt portfolio includes – PPF and FDs. Since my investment horizon is long I invested 70% in mutual fund and 30% in FDs and PPF
Basavaraj Tonagatti
Pawan-Yes, you already have HDFC and then why the same fund category? Now regarding asset allocation, you did right.
Suthir Kumar
Dear Basu,
I have started Franklin High Growth Companies MF – Direct G (SIP- Rs.1500) from April 2015. This fund is not performing as expected for 2 years. Would like to know your thoughts on it. Should I switch now to other performing funds. Please suggest a good fund.
Thanks,
Basavaraj Tonagatti
Suthir-As per me, you can continue the fund. I am not sure what prompted you to believe that fund is not performing well. May I know?
Manav
Hi sir,
Manav this side I want to invest 30k per month for minimum 5 years and I can increase my budget 30k to 50k per month. Which mutual fund will be better for me.
Thanks
Basavaraj Tonagatti
Manav-Debt Funds.
naveen kumar
HI basavraj,
I am Zero knowledge in Health, PA and Term insurance, based on your blog learnt many important basic things and even purchsed the products. Thank you for that Genious.
Now, What is Mutual Fund? where can i learn about it to gain atleast knowledge of that product.
And , coming to pension plan , which one is best Atal Pension Yojana or LIC /NPS / mutual funds etc
Basavaraj Tonagatti
Naveen-You just Google it about “What is Mutual Fund”. You will find a bundle of information. I stay away from products which claim to PENSION or Retirement.
arjun
hi basu,
i want to invest in HDFC mid cap opp (G) sip of 10,000 INR , my doubt is , as markets are on peak point now ,should i start investing now or should i wait for market to go down slightly and then invest , please adivce
regards ,
Arjun Vanam
Basavaraj Tonagatti
Arjun-If your goal is long term (5+ years) and did proper asset allocation, then the RIGHT TIME to invest is NOW.
Upasana
Hi,
I am very new to SIP and invested Rs9500/Monthly in different 4 SIP’s for minimum 8-10 years. Kindly check and suggest if my SIP’s selections are correct or overlapped. Also I want to invest another Rs2500/monthly in HDFC Midcap opportunity fund or HDFC equity fund. Kindly suggest me which one should I take.
1. Birla Sunlife Frontline Equity Fund – 1500
2. Birla Sunlife small and mid cap fund – 3000
4. Kotak select focus fund – 3000
5. Mirrae asset emerging blue chip fund – 2000
Basavaraj Tonagatti
Upasana-Why two funds within categories? Where is debt allocation? Also, why new fund for fresh investment? Why not the same existing funds?
Anurag Gupta
Will not prefer for Mirrae Asset Emerging BlueChip Fund , Kotak select focus fund is Superb in choice you should have invested more in this.
Basavaraj Tonagatti
Anurag-May I know on what basis it is SUPERB?
Basavaraj Tonagatti
Anurag-In what way it is SUPERB, can you explain?
Ravi
Hi,
I am new in MF investment.
For this FY in 80C , I have only LIC which is around 23K. I want to save tax for this FY and need to invest in ELSS as lum sum.
Could you please suggest me some funds for lum sum in ELSS. and also From Next FY 2018-19 I want to start SIP.
Please suggest me some good funds.
My goal is to create wealth in next 10 year. Current age 27.
Basavaraj Tonagatti
Ravi-Refer my post “Top 5 Best ELSS Tax Saving Mutual Funds 2018-2019“.
Krishna
Hi Basavaraj,
My goal is 35 years from now .So can i invest all in equity like 60K per month in SIP mode?Please clarify.
Is it advisable to invest for such a long period of 35 years??
Basavaraj Tonagatti
Krishna-I still suggest you asset allocation.
krishna
ok i will follow 70(equity):30(debt) , but can i go ahead and invest for 35 years ??
Basavaraj Tonagatti
Krishna-Why NOT?
Anirban Deb
You need to consider the PE ratios of the stock these funds have bought. Value discovery for example is overpriced at the moment. Funds with high amount of cash find it hard to place these funds with a good PE, thus the high PE. This is going to impact future return at some point. I too have most of the funds you mention, but am doubtful of some of them going forward due to their high PE’s.
you do not mention Birla Sun life pure value fund which has a much lower PE ( around 20) .
Basavaraj Tonagatti
Anirban-So do you consider trailing PE or Forward PE?
SAI
Dear Basava, Jai Hind,
Now kindly advise me on the following points please:-
(a) Now, in which funds (4-5 funds), I should invest lump sum 1 lakhs in any four balance fund.
(b) My time horizon is 6-7 years.
(c) Shall I start SIP ? If yes, Kindly suggest some MFs name please.
Warm Regards,
Sai
Basavaraj Tonagatti
Sai-Balanced funds have higher exposure to equity, which not suitable to your time horizon. Hence, do the asset allocation as I said above, and start separately in debt and equity.
Sumit Malakar
Hi Sir,
Can you please help how to do the asset allocation??
My time frame is 5-10 years. For 5k monthly SIP.
Basavaraj Tonagatti
Sumit-Sir be specific there is a huge gap of 5 years in your assumption of 5-10 YRS!!
Kumar
Hi Basu ,
Thanks for this nice article. I also need your advice/suggestions in following:
I have invested in Mutual Funds in three different portfolio started in couple of year back:
Portfolio#1: Child Education (24000 monthly)
——————————————-
1. UTI Equity fund (G) – 10000 (monthly)
2. HDFC Mid-Cap Opportunities fund (G) – 10000 (monthly)
3. Birla SL Dynamic Bond fund-Reg(G) – 4000 (monthly)
Portfolio#2: Child Marriage
——————————————-
1. ICICI Pru Value Discovery (G) – 10000 (monthly)
2. PPF (1,50,000 yearly)
Portfolio#3: Retirement (34000 monthly)
——————————————-
1. Franklin India Bluechip (G) – 15000 (monthly)
2. Franklin India Prima Plus (G) – 15000 (monthly)
3. DSPBR Income Opportunities Fund -Reg(G) – 4000 (monthly)
Other on-going ACTIVE-SIP (to accumulate yearly PPF amount)
——————————————————
1. Birla Sunlife Floating Rate Fund-Long Term Plan (G) – 6000 (monthly)
2. ICICI Pru Flexible Income Plan(G) – 6000 (monthly)
Other NON-ACTIVE SIP (to accumulate yearly PPF amount)
——————————————————
1. HDFC Equity (stopped since 2013 but amount is still there)
2. SBI Emerging Business fund (stopped since 2013 but amount is still there)
Note:
—–
All there investments are for long term (more than 10 years)
Questions:
———–
1. I noticed that UTI Equity fund is not performing well from long time so is it time to replace this fund with other performing fund like:
– ICICI Pru Focused Bluechip, or
– SBI Bluechip (Large-cap)
Any recommendation here?
2. I am NRI and due to recent changes in PPF rules, its now not a suitable option for a NRI. What is the other alternative options for me on a debt side?
Is Balanced fund like HDFC Balanced fund can be a replacement for this?
Any recommendation here?
3. I want to do addition 20000 investment monthly, where can I add this in my existing portfolio?
4. Is there any other changes required in my portfolio?
I really grateful for your prompt suggestions.
Thanks in advance,
Kumar
Basavaraj Tonagatti
Kumar-Portfolio 1-Stay away from dynamic fund and stick to ultra short term debt fund. Child marriage, heavy in debt least in equity. Retirement, no asset allocation between debt and equity. To accumulate yearly PPF, why not invest in PPF monthly directly than this circus and that too with equity?
The biggest mistake you are doing is no proper asset allocation. Please refer my above post properly.
Kumar
Hi Basu,
Thanks for your reply.
I agree with you regarding asset allocation ratio, I will work on it.
Can you please give your suggestions on UTI Equity fund replacement/switching?
Also on replacement of PPF option since it is no longer valid for NRI?
Thanks,
Kumar
Basavaraj Tonagatti
Kumar-Why can’t use the same Franklin Bluechip rather than UTI? Regarding alternative to PPF, I suggest Ultra Short Term Debt Funds.
Kumar
Thanks again, but UTI equity and Franklin bluechip are part of different portfolio.
And PPF was choosen for long term investment but ultra short funds are meant for short investment right?
Basavaraj Tonagatti
Kumar-In what way UTI and Franklin are different? Who said Ultra Short Term Funds can be invested only for short term?
Kumar
Hi Basu,
I meant UTI Equity is part of “Child education” porfolio and Franklin bluechip is a part of “Retirement” portfolio of my porfolio. So you meant I should discontinue “UTI equity” and make investment in Franklin bluechip and made it part of my two different portfolio?
Regarding PPF replacement, which utlra short fund you would recomment for long term prospective?
Thanks again for your time and response.
Kumar
Basavaraj Tonagatti
Kumar-If that is the case, then you can hold both. Regarding debt funds, refer my latest post “Top and Best Debt Mutual Funds to invest in 2018“.
Kumar
Hi Basu,
Considering the current market crash, is it advisable to do additional (one-time top-up) investment in some of existing fund to take advantage of market down and to do average-out some of the funds?
If yes, then which category of funds are suggested to do additional investment, I mean larger cap/diversified-cap/mid-and-small cap?
Is this a right time for doing this?
Please share your views on this.
Thank you,
Kumar!
Basavaraj Tonagatti
Kumar-These ups and downs are part and parcel of equity market. Never try to time the market. If your goal is more than 5+ years and did the proper asset allocation, then can invest now also.
Kumar
Dear Basu,
Hope you are fine and doing well.
I am in the process of re-shuffling my portfolio for setting proper asset allocation between Equity and Debt fund. Presently I have investment in below 4 debts funds (apart from Equity funds) but I want your suggestion on following points:
1) Since my all investments are for long term (7+ years), are these 4 existing debts funds (mentioned below) are right choice for debts funds for long term prospective? If No then can you please suggest which one should I replace and by which fund for my debt portfolio?
My current Debt funds:
> Aditya Birla SL FRF-Long Term Plan(G) (Active SIP)
> ICICI Pru Savings Fund(G) (Active SIP)
> DSP Credit Risk Fund-Reg(G) (Active SIP)
> Aditya Birla SL Dynamic Bond Fund-Reg(G) (IN-Active SIP)
Please note,
> I wanted to invest in only 3 debts fund for long term prospective (1 for each 3 portfolio, total 3).
> I have some investment in FD
> I have some investment in PPF (but not much)
2) I am going for below allocation percentage for different fund categories, is that advisable or any correction required?
Equity: 70%
Larger Cap: 60%
Mid-cap/small cap: 20
Multi-cap: 20
Debt: 30%
Awaiting for your prompt response.
BR,
Kumar
Basavaraj Tonagatti
Dear Kumar,
Stick to Liquid Fund or Ultra Short Term Debt Fund.
Dhruv Jain
Hi Basavraj,
I have not invested in mutual funds before and my goal is to build wealth in 5-10 years. I am thinking of doing SIP every month of 40k. Reading your blog and some other similar articles I decided the following:
SBI Bluechip Fund
ICICI Pru Focused Bluechip Fund
Franklin India Prima Fund
HDFC Balanced fund
10K in each.
Can you please review my portfolio or suggest some alternative portfolio.
Thanks a lot.
Basavaraj Tonagatti
Dhruv-First be specific with your time horizon. There is a gap of LONG 5 years between your 5-10 years.
Dhruv Jain
Consider that the gap is 5 years.
Basavaraj Tonagatti
Dhruv-Means?
Dhruv Jain
Consider that my goal is 10 years.
Thanks.
Dhruv Jain
So I need two portfolios basically,
One is I need to buy a house in 5 years
Another is I want to build wealth in general which may be used for child education.
Thanks,
Basavaraj Tonagatti
Dhruv-For 5 years, use ONLY debt. For 10 years, follow the asset allocation I suggested in above post.
Rabi
Hi Basu,
Wish you a very happy new year.
I am a regular follower of your website/blogs. My plan is to invest monthly 10K into MFs. I am about to start 4K SIP into ELSS Birla 96 for Sec 80C deduction along with a long term goal. Need to invest 6K per month into some other funds. I have very long term goal of at least 20 years and I planning to go for small and mid cap funds as I have long term goals.
After my online research I want to split my remaining 6K into L&T Emerging Businesses Fund – 3K and another 3K into Reliance small cap fund after looking at their past performances. I am also thinking of HDFC small cap as well, whether I can split this 6K into 2K each. You might have a thought why not DSP and Franklin. Actually, I am not permitted to invest in those company funds due to my professional restrictions.
Request you to kindly review my portfolio and suggest. Your thoughts are always welcome. Looking forward to hear from you.
Many Thanks,
Rabi
Basavaraj Tonagatti
Rabi-Wishing you the same 🙂 What asset allocation you are following?
Rabi
Basu, thanks for your quick response. Honestly speaking, I didn’t decide my asset allocation for this 10K. I am just looking for an better return and trying to allocate this 10K into as much as equity (small and mid cap). I already do have a good amount of PPF and I can plan something in debt fund in coming months/years as my income increase. Please let me know if I can help you with any additional info. The HDFC Fund I mentioned is “HDFC MID CAP OPPORTUNITY FUND”. Thanks again, Rabi
Basavaraj Tonagatti
Rabi-Never enter equity without doing asset allocation.
Rabi
Basu – I want this entire 10K per month into equity. I have some other plans in debt (like PPF, LIC Endowment Plan, etc). Hence, here are my portfolio :
Option A:
ELSS – Aditya Birla Tax Relief 96 – 4K per month.
Mid Cap – HDFC Mid Cap Opportunities Fund – 3K per month.
Small Cap – L&T Emerging Business Fund – 3K per month.
Option B:
I have another thought if I can add Reliance Small Cap Fund in my portfolio and split the above 6K into these three funds 2K each.
As informed you earlier, I am not permitted to invest in DSP and Franklin Funds. Also, I have not touched any Large Cap as it covers under above ELSS Fund. Please have a look into my portfolio and let me know your thoughts.
Can I set my return expectations as 15% ? I will go for at least 20 year term. Looking forward to hear from you.
Thanks,
Rabi
Basavaraj Tonagatti
Rabi-In that case (assuming you did asset allocation), you can condinue the said funds. No need to add one more small cap.
Rabi
Thank you so much, Basu ??
Lalit Kumar
Dear Sir,
I Want to invest for more than 10 years, SIP Rs. 5000 per month/- for good return
i do not have knowledge about mutual fund
Can i invest in below fund
MID CAP – HDFC MID CAP OPP FUND (G)
MID CAP – FRANKLIN INDIA PRIME FUND (G)
also advise should i take 2 fund or Single Fund ??
thanks / Lalit Kumar
Thanks
Basavaraj Tonagatti
Lalit-If you don’t have the knowledge, then how you selected these two funds?
shravya
Hi Basu,
I am shravya, My child is 5 years old and I have health insurance and pension policies and owned house and car.
Now, I need to invest for my child education and my emergency fund.
I am new to investment.
Please guide me
Basavaraj Tonagatti
Shravya-For emergency fund, use liquid funds. For your kid’s education, based on the time horizon of the goal, first do asset allocation between debt and equity. For debt, you can use ultra short term debt fund or products like PPF (if goal is more than 15 years). For equity, one large cap, one mid cap and one small cap enough.
SAI
My dear Basava, Jai Hind,
– I hope you are fine.
– Presently, I am planning to invest 1 Lakh in the following four Balanced funds (lump sum 25K each)
(a) HDFC balance fund
(b) ABSL Balance 95 Fund
(c) L&T Prudence balance fund
(d) SBI Magnum Balance fund
– Kindly advise me – shall I invest in the above mentioned Balance fund OR Shall I change any of the above mentioned MF. OR SHALL I START – SIP- IN THE ABOVE MENTIONED BALANCED FUND.
– Your early reply in this regards will be highly appreciated.
Warm Regards,
Sai
Basavaraj Tonagatti
Sai-Who suggested you these many balanced funds? Why you selected these? What is your goal time horizon? If you already planned, then what prompted you to doubt your own decision?
SAI
My dear Basava, Jai Hind,
– I hope you are fine.
– Presently, I am planning to invest 1 Lakh in the following four Balanced funds (lump sum 25K each)
(a) HDFC balance fund
(b) ABSL Balance 95 Fund
(c) L&T Prudence balance fund
(d) SBI Magnum Balance fund
– Kindly advise me – shall I invest in the above mentioned Balance fund OR Shall I change any of the above mentioned MF. OR SHALL I START – SIP- IN THE ABOVE MENTIONED BALANCED FUND.
– Your early reply in this regards will be highly appreciated.
Warm Regards,
Sai
Dear Basava,
Lot of thanks for your swift reply.
– Nobody has suggested me. Recently my FD was matured for an amount of 1 Lakhs. Presently bank is giving around 6% pA. I thought to invest matured amount in Safe Balanced MF. On google I found top Five balanced MF with 4&5 * . Then I thought to invest (except in Equity and not to take some risk). Now I required matured money after 4-5 years. So I have planned to invest in Balanced fund.
Now, Basava If you advise me NOT to invest in above mentioned fund, then definitely I will not invest in above fund. If you guide me to invest in SIP (in balanced fund) then I WILL, I WILL start SIP.
– Then kindly intimate me the best balance fund to start SIP – OR to invest lump sum in Some MF please
– Once again your early advise will help me to invest in proper SIP Balanced fund.
Warm Regards,
Sai
Basavaraj Tonagatti
Sai-Who suggested you that Balanced Funds are SAFE? Also, without knowing the time horizon or details of your financial goals, it is hard for me to guide.
SAI
Dear Basava,
Once again thanks for your swift reply.
– My time horizon is 5-6 years for my son Marriage.
– If I am not investing correctly / properly in correct funds , (AS I DONOT HAVE KOLWLEDGE ABOUT SAFE FUND),
please / Kindly intimate me the name of the safe funds to invest one lakh for 5 years.
– Even If I get around 9-10% benefits, I will be more happy.
– I am eagerly waiting for your reply please.
Warm regards,
SAI
Basavaraj Tonagatti
Sai-If your goal is just around 5 years, then stay away from equity. Enter into equity (that also with proper asset allocation) if your goal is more than 5 years.
SAI
Dear Basava, Jai Hind,
Now kindly advise me on the following points please:-
(a) Now, in which funds (4-5 funds), I should invest lump sum 1 lakhs.
(b) My time horizon is 6-7 years.
(c) Shall I start SIP ? If yes, Kindly suggest some MFs name please.
Regards,
Sai
Abhijeet
To be honest, i have least knowledge of financial planning. I just follow the trend or google. Recently started investing.
I am 34 year old, with only liability of paying Rs26,000rs as my home loan EMI
My portfolio is:
HDFC Term Insurance Policy – Rs10,000 P.A – for my wife
HDFC Term Insurance Policy – Rs 10,000 P.A for myself
Mutual funds: 2000 in each
Aditya Birla Sun Life Equity Fund-G
Dsp Blackrock Tax Saver Fund-G
Franklin India Prima Fund-G
Mirae Asset Emerging Bluechip Fund (Growth)
Sbi Bluechip Fund-G
Now, planning to move Aditya and SBI to L&T Emerging Businesses Fund-DP (G) and L&T Infrastructure (G)
Any suggestions, any tips.
Basavaraj Tonagatti
Abhijeet-Hard for me to suggest anything without knowing about your goal details.
Jay
Hi Basavraj,
i need your advise to validate whether my portfolio is on right direction or not.Please also advise what changes i need to do in my overall portfolio.I have no term Insurance.Family healt Insurance is from office of 14 lac.
I am 36 years old,married,with one children 3 year .Here is my investment portfolio.My main target is to build a house ( in next 3 years) and retirement corpus ( in next 10 years) and child education (15 years):
FD in Bank : 40 Lakh
Investing in NPS : 150000/Year
Dsp blackrock small & midcap fund : 7000/Month
ICICI pru Focused bluechip (G) : 6000/Month
HDFC Top 200 (G):7000/Month
Rel Equ Opportunity (G) : 6000/Month
IDFC Premier Equity (G): 7000/Month
TATA balanced Fund :3000/Month
UTI Equity Mutual Fund:3000/Month
Thanks,
Jay
Basavaraj Tonagatti
Jay-First create basics of financial planning (term life insurance, health insurance, accidental insurance and emergency fund), then think of investing. Also, where is your asset allocation? How you shortlisted these funds? What prompted you to doubt on the same?
Sam Danieal
Hi Basavaraj,
I’m 35 years of age, Marriage with 2 boys(twins 3yrs old).
We have no current liabilities. 10 Lacs in FD(shall move it to equity as they mature). I have Term plan for 1.4 cr + 50 lacs Parmenant disability cover. Medical is covered from our office(14 Lac for me & 6 lacs for my wife). However looking for a family cover in addition, appreciate if can also suggest on this front.
Below is my and my wife’s(also working) portfolio, appreciate your views on we achieving the desired goals.
Below are monthly additional investments except Emergency Fund which was a lump sum investment.
Emergency Fund Allocation % Allotted
ICICI Prudential Equity Arbitrage Fund -Direct 200,000
ICICI Prudential Liquid Plan 200,000
400,000 NA
Short Term(3+ yrs) Allocation
Franklin India Low Duration Fund 1,000
SBI Magnum MIP 2,000
3,000 7.06%
Medium Term(10+ yrs) Boys Graduation(Target 10-12 Lacs) Allocation
Franklin India Smaller Companies fund 5,000
HDFC Balance Fund 4,000
Birla Sunlife MIP II WEALTH 25 Plan 1,000
UTI MID CAP Fund 2,000
12,000 28.24%
Medium Term(20+ yrs) Boys Post Graduation + Marriage Allocation
HDFC Mid-Cap Opportunities Fund 5,000
ICICI Pru Value Discovery fund 1,000
Franklin India High Growth Companies 5,000
L&T India Value Fund 4,000
15,000 35.29%
Long Term(30+ Yrs) Retirement Allocation
DSP BlackRock Tax Saver Fund 3,000
SBI Blue chip 3,000
Axis Long Term Equity Fund 1,000
Tata India Tax Savings Fund 1,000
Birla Sun Life Tax Saver 96 1,000
Birla SL Frontline Equity Fund 3,500
12,500 29.41%
Sam Danieal
Medium Term(20+ yrs) Boys Post Graduation + Marriage- Required amt will be around 1cr as per todays cost.
Long Term(30+ Yrs) Retirement- Required amt will be around 1cr as per todays cost.
Sorry missed this point.
Basavaraj Tonagatti
Sam-Why not use the same 2-3 funds with different folios for all goals? Also why MIP? Why no large cap funds for 10 and 20 years goals?
Bapi R
Hi ,
I am 41 year old, planning for retirement, as of now apart from EPF, i have no other investments.
Goal : Retirement planning (as i today, i think, i can manage with 50 k per month – rent of house included)
My plan is to sustain same life style after retirement (which is 17 yrs from now )
SIP : for now, can go for 20-25 k per month. (25 will be bit stretched)
Risk appetite : Balanced.
please suggest me few funds…
Regards
Bapi
Basavaraj Tonagatti
Bapi-My funds are listed in above post.
nikhil b
Hi Basu,
I would like your advice to invest on SIP. I am a fresher in this field and i need to know what all caps i need to go for the investment. I am looking for my child education ( he is now 2 years) , marriage, buying new house.
Basavaraj Tonagatti
Nikhil-Do asset allocation at first between debt and equity. In equiy, you can have one large, one mid and one small.
nikhil b
I am looking for large term investment. 30:70 asset allocation. I am planning to take
franklin india bluechip fund 50% – Large
hdfc midcap opp fund – 30% – Mid
franklin india smaller companies fund – 20% -Small
Please let me know if this is good for me.
Vandhi
Sorry Nikil to barge in to your thread. Your query helps me to think about another query to basu.
I would like to clarify a doubt regarding small cap fund in portfolio construction.
Most of midcap funds are investing some considerable allocation to small cap stocks, then do we need a separate Small cap funds along with mid cap funds to create a portfolio.
Once again sorry to Nikil and Basu 🙂
Basavaraj Tonagatti
Vandhi-No sorry, you raised the valid question 🙂 This is the reason SEBI made now new regulation to categorization. Let us wait for that categorization. Now, coming back to existing funds, there may be some % of small cap exposure in mid caps. But not 100% right?
Vandhi
Thanks Basu. Yes there are very few funds stick to the fund mandate like investing more to the cap they belongs to. For instance Sundaram select mid cap investing close to 80% in Midcap stocks.
But most of the funds are investing like mutlticap funds. So i am confused to choose one in the whole list.
Welcoming SEBI categorization which will help us to know , what type of fund .
Basavaraj Tonagatti
Vandhi-I can understand your confusion. But as of now, we can follow the funds and wait for categorization.
Basavaraj Tonagatti
Nikhil-YES.
nikhil b
Thanks Basu. Which site you prefer ,i need to go for applying SIP online ?
Basavaraj Tonagatti
Nikhil-Refer my post “Best Direct Mutual Funds Platforms in India to invest online“.
Sujith
Hi Basavaraj,
I happen to see some advisor’s suggesting to go for only multi-cap funds rather than investing in large cap, mid cap and small cap separately for the ease of diversification. Do you think this a good approach or selecting funds from different categories would be more beneficial in the long run?
Basavaraj Tonagatti
Sujith-How a multicap fund diversify based on YOUR RISK?
Sujith
Yeah, got it. Thanks
Shivakumar
Hi Basavaraj,
This is Shivakumar, I’m 44 years old, and wheelchair bound for the last 14 years due to spinal cord injury and I’m a bachelor. After working online I have saved some money. I would like to invest a small amount of my saved money in mutual funds. I would like to invest around 2 lakhs in lump sum in different schemes for the period of 10 years to get returns around 6 lakhs atleast. This is for my own expenses and have no particular goal. Please do suggest me 4 different schemes, where I can split Rs 50,000 in each.
Basavaraj Tonagatti
Shivkumar-Refer my post above. First do asset allocation as per the time horizon. Then in case of debt, use ultra short term debt funds. For equity, one large and one mid cap fund.
Shivakumar
Thank you so much Basu, for the prompt reply. I will follow your advice.
babu battacharya
Dear Vasu,
1) As a NRI, can I invest in Direct MF schemes?
2) How to switch from regular plan to direct plan?
3) Suppose, I have sold all my debt MF investment before 3 year maturity now as a NRI ; then all those short term capital gains (suppose, short term capital gain in debt MF is Rs.3.5 Lac) in debt funds. Now, can this be set off against my Rs.2.5 IT limit in India tax filing ( assuming I have no other income in India) and balance Rs.1,00,000 ( Rs.3,50,000-2,50,000) taxed at slab rate of 5% ? in that case, I do not need to pay any short term capital gain tax separately? Is my If I Switch from regular plans to Direct plan in each MF then do I need to pay short term capital gain tax also on those items which are less than 1 year investment?
warm regards
Babu
Basavaraj Tonagatti
Babu-1) YES.
2) You have to liquidate the money from regular and invest lump sum in direct. Otherwise, you can opt for SWITCH option. But consider moving based on exit load and taxation.
3) Yes, in your case, if you redeem the debt funds within a year for purpose of switching to direct, then the taxation is same like withdrawing money from debt funds.
Ravindra
Dear Sir,
When I started my Investment way back in two years TATA Balanced fund had found a place or I can say a mention in your post. But off late the fund is not doing that good and lost your confidence too!!
I am in to SIP of 2k in this fund along with HDFC balanced 5K, I made my portfolio as per your guidance but may be erred on this one. Should I continue or increase my SIP in HDFC balanced to make one fund.
Kindly advice.
Thanks
Ravindra
Wishing You and all your readers a very Happy New Year!!
Basavaraj Tonagatti
RAvindra-Wishing you the same.
Basavaraj Tonagatti
Ravindra-You can stick with HDFC Balanced Fund.
Ravindra
Many Thanks indeed!!
Shailendra Mishra
Sir
Happy new year
I have never invested in mf. Looking forward to invest in hdfc midcap for next 20 years.
I am a 40 year old government employee. My service is fully pensionable. I just want to create some extra money after my retirement. Will this be a better option or suggest any other if u wish.
Basavaraj Tonagatti
Shailendra-Set aside the fund name and amount. First read above post properly, then go ahead for investment.
Sudheep
Hello Sir, Nice article. Could you please bring some light on the following funds that I am holding. (I am 33 Yrs old. I started MFs few years back. My goal is for a better retirement life from Age50, Children Education after 15 yrs)
1. Tata ethical fund – 3000 RS/ month
2. HDFC balanced fund – 3000 RS/ month
3.Franklin India smaller companies – 6000 RS/ month
4. Uti opportunities fund D – 3000 RS/ month
5. Uti dividend yield fund D – 4000 RS/month
First 3 I started 2 yrs back, later I joined since 2013. Shall I renew the SIP for later 2 ?
What’s your overall view on the above portfolio. Thanks for your suggestion
Basavaraj Tonagatti
Sudheep-Missing asset allocation, if goal is to accumulate for retirement and child education, then why DIVIDEND Option and 2-3 funds enough as I said above.
Sudheep
Hello sir , Thanks for the reply . My plan is keep 40 lakhs for children education, 60lkh – 1cr as an FD to have monthly pension . Actually, Dividend option was started by my wife and after that only I knew about the fund. Now I am in a situation to close the fund after completing 5 yrs ( by feb2018).
Basavaraj Tonagatti
Sudheep-It happens no need to worry. But I pointed the negatives. Please read on those and read above post to understand in detail. If you still have doubts, then we discuss.
Amit Kumar
Hello sir, My age is 30 yrs; suggest me to invest Rs. 5000-6000/ in SIP/Mutual Fund for 10-15 years to meet child education n retirement.
Thanks
Basavaraj Tonagatti
Amit-If you read the above post fully, then you will get all answers to your question.
Jai vyas
Can you please suggest STP in icici pru value discovery fund how much time period should consider for this STP lumsum amount 1.5L
Basavaraj Tonagatti
Jai-Without knowing the details of financial goals, how can I suggest anything BLINDLY?
Saurabh Mathur
I want to invest Rs 15 lacs in mutual funds as lump sum to get high returns after 6 years. My age is 46 presently and monthly SIP is Rs 90,000 at present in 80:20 equity and debt. Fair mix of equity large cap, mid cap , balanced and debt funds . Where should I invest to get at least 20% returns per annum?
Basavaraj Tonagatti
Saurabh-Your expectation is unrealistic and that also for such short period. Please refer above post properly.
kalai
Hi,
This is wonderful list of funds . Now i want to create portfolio for my 3 long term goals (Education, Marriage and Retirement).
How many funds to be selected for each goal. I am interested to go with Multiple portfolio for different goals.
Should i select each fund from one category to build. Please advise.
My guess is, for 3 goals, i need at least 9 funds in total.
Basavaraj Tonagatti
Kalai-You can do both ways. But for simplicity, have least funds.
kalai
Hi,
Do you mean i can select 3 funds from these categories (Large cap,Mid cap/small cap ,Multicap ) for each goal.
Only number funds per goal is confusing.
Basavaraj Tonagatti
Kalai-You can separately select 3 funds for each goal or use the same 3 funds for all your goals.
kalai
Thanks. Regarding portfolio overlap , is it advisable to have Large cap and Multicap funds together.
Because Most of the multicap funds are having 60-70 % of Large cap stocks.
Basavaraj Tonagatti
Kalai-Multi Cap Funds have the mandate to move any market cap based on the opportunity. Hence, check overlap by considering this point in mind.
kalai
Thanks for your response.
Based on this Mutlicap mandate, I do not think no issue in having Mulitcap funds along with Large cap to construct portfolio.
So my plan to have one large cap + one Midcap + one Multicap along with one Debt fund to create a portfolio for a single goal.
Please share your thoughts.
Basavaraj Tonagatti
Kalai-You can go ahead but track the Multi Cap movement.
kalai
Thanks. What do you mean by track the Multi Cap movement.
Keeping single multicap fund or Large cap + Midcap funds per goal is also advised for minimalist portfolio.
My doubt is, if we keep a single fund per goal, will it be too risky, Atleast if we keep 2/3 funds, the risk will be spread.
Basavaraj Tonagatti
Kalai-Multi Cap Fund Manager many times may miss the bus and may give you higher risk by investing in small or mid cap than your OWN ACTUAL RISK TAKING ABILITY. RISK of a Fund is different than the RISK of an individual. Invest based on your own risk not the fund risk.
I am against a single fund for each goal. You can keep 2-3 funds and can use the same funds to all your goals by creating different folios.
kalai
Thanks for your clear explanation of risk of fund vs individual.
If we create Single portfolio (3 funds ) for all the goals with out creating different Folios. Do you think tracking and re balancing for each goal would be challenging. For instance , Meeting out first goal in the overall corpus and make sure not to eat others goal corpus.
Basavaraj Tonagatti
Kalai-It may confuse you. Instead better to create a different folio for each goal.
kalai
Yes I am interested to know, how people are managing Single portfolio .
I have just read this post , I think this sheet will take care managing single portfolio.
https://freefincal.com/google-spreadsheet-portfolio-tracker-stocks-mutual-funds/
Say for instance i have 4 goals and selected 4 funds , SO totally i need to create 16 Folios .
Basavaraj Tonagatti
Kalai-This is what I said, it is all left with you. You can create 4 folios or 16 folios to manage money.
kalai
Thanks for your suggestions.
Kindly request you to write an post on Single vs Multiple portfolio with pros and cons of each method.
So i was confused to choose either one for my own portfolio management . I have asked many queries related to this topic.
This is one area, where i am hardly seeing anywhere in the web for the details. I think its essential for the DIY investors.
Basavaraj Tonagatti
Kalai-Surely I will write it on this. It is simple but I think you confused it.
Govind
Hi Mr. Basavaraj,
I have read your suggestions for investment in 2018. Thanks for that. But I am a new investor already invested last month in the following mutual funds
Motilal oswal most focussed multicap -35 growth fund – 2000 per month
SBI magnum mid cap fund – 1000 per month
L & T mid cap direct growth fund – 1000 per month
DSPBR small and midcap growth fund – 1000 per month
all are SIP for 5 year period
pl suggest whether my investments are right or i made any wrong choice.
Thank you
Govind
Basavaraj Tonagatti
Govind-I suggest to stay away from equity if your goal is just 5 years away. Also, I noticed that your portfolio is concentrated on mid and small cap, which is high risky.