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Please ask your questions HERE and rediffGURU Ulhas Joshi, Head -- Sales Rank MF (external link), will answer your queries.
C: Sir I want invest 8k to 10 k every month for my 2 kids who are 4 years old for long term for 15 to 20 yrs. Please suggest good mutual funds. I want to diversify in large, mid cap and small cap MFs.
Hello & thanks for writing to me. As your time horizon is long & the goal is to build a corpus for your children over 15 to 20 years, you have rightly chosen equity schemes.
You can consider starting SIP's of equal value amounts in:
1. Axis Flexicap Fund
2. Kotak Smallcap Fund
3. Canara Robeco Emerging Equity Fund
4. SBI Bluechip Fund
5. ABSL Multicap Fund
Stepping up your SIPs by 10% or more every year will help you build a larger corpus. It is essential to periodically rebalance your portfolio to ensure that you are on the right track.
Anonymous: sir we have been investing in Mutual Funds for last 12 years in various types of funds. Now value is 1cr. Please advise if we should continue investing or move them to less risk funds and start afresh. Our goal is Rs 3cr for retirement which is 12 years from now.
Hello & thanks for writing to me. I commend you for investing thru various market cycles & investing with discipline in mutual funds for creating wealth for the long term.
I am assuming that all investments are currently in equity funds. As your goal is around 12 years away, I would recommend you continue to invest in equity funds & stay invested in them for around 5 to 6 years.
After 5-6 years, you can stop SIPs in equity funds & start investing in hybrid funds like aggressive hybrid funds, balanced advantage funds etc. Over time, with proper guidance you can consider rebalancing your portfolio in a mix of equity & hybrid funds to achieve an optimal balance for you.
K Basu: Hello Mr. Ullhas Joshi, I write to seek your expert advice, I am expecting an amount of Rs. 40 Lacs in the next 2 months from sale of property. I wish to invest 40 lac lump sum in mutual fund for the next 40 to 45 years with an aim to start an SWP of Rs. 25k/pm after about 12-15 months with an annual incremental of 5% to offset the inflation. Request your advice whether it is feasible and as to how many funds should i invest, and which of the funds to invest in with how much amount each? Thanking you in advance, regards.
Hello Mr.Basu & thanks for writing to me. As you are expecting a corpus of Rs.40 lakh in the next few months, you can consider making an investment in a BAF/DAAF in Multi Asset Allocation Fund.
Assuming your corpus grows to 44 Lakh in 12 to 15 months, & you begin a SWP of 3 Lakh per annum which comes to around 7% annual withdrawal and assuming that the corpus continues to grow at around 11%, it will be feasible for you for a long duration.
I recommend you speak to a financial planner who can understand your own needs so that they can create a customised plan for you.
Prateek: Hello Ulhas, I am 33 years and I want to start investing in MF with amount 25k per month till next 10-15 years so that I can get a good corpus for my child's education and also retirement. I am also planning to increase the amount each year for this. Can you please help in which type of funds should I invest (also the company if possible) and how much amount should I increase each year?
Hello Prateek & thanks for writing to me. As your goal is long term, you can consider investing in equity schemes for around 10 to 12 years, stop your SIP's in equity funds & begin SIP's in balanced advantage funds & multi asset funds for the remainder 3 to 4 years.
You can invest in a mix of
1. Flexicap Funds: 50% of your investible corpus.
2. Multicap Funds:25% of your investible corpus.
3. Midcap Funds: 12.5% of your investible corpus.
4. Smallcap Funds:12.5% of your investible corpus.
Anonymous: Pls suggest a few mutual fund sectors for investing 10 lakhs in SIP for an investment period 20-25 years.
Hello and thanks for writing to me. As you want to invest for duration of over 20 years investing in sectoral or thematic funds may be counterproductive as specific sectors of the economy can have long periods of underperformance & it is difficult to predict which particular sector will see outperformance.
You can consider investing in funds that can invest across sectors & themes like flexi cap funds, multi cap funds, value funds, momentum funds and so on. In these funds, the fund managers have discretion to invest as per their understanding of the market cycle.
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