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'Suggest gold, silver MF SIPs to invest'

November 14, 2022 08:54 IST

MF guru

Illustration: Dominic Xavier/Rediff.com

Do you have mutual fund queries?

Please mail your questions to getahead@rediff.co.in with the subject line, Ask Nikunj, along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answer your queries.

 

Atul Ranade: My age is 49 and what to invest Rs30 lakh with 5 years perspective. This will be part of retirement corpus. Can you suggest some good funds? Also suggest good fund for Sip of 25000 in gold and silver.

Nikunj Saraf: Hello Atul. Considering your age factor and goal, I would suggest you invest via STP rather than lump sum in order to benefit from market volatility for future investments. You might consider below mentioned schemes as your investment options:

Mahesh: I am 24 years old. I would like to create approx Rs 5 cr wealth in next 12 years. Kindly advice how much I will require to invest?I have just started SIPs in following funds (2 months back.)

1. Mirae Asset Large Cap - Rs.2000/- pm
2. Parag Parekh Flexicap - Rs. 2000/-pm

Would like to invest another Rs.7000/pm in SIP. Kindly suggest funds.

Also I will start investing Rs.1.5 lakh in PPF and Rs.50,000/- yearly in NPS effective 01.04.2023.

Nikunj Saraf: Hi Mahesh. It would be a wise idea to reconsider your investment in Parag Parikh AMC. You can start a monthly investment of 1.07 Lakh to create wealth of 5 crores within 12 years with expected return 14% CAGR. In your current vision, you intend to start with a sip of 11k. Hence, I suggest investing in mid, small, large& midcap categories. You may also refer to the following funds for your portfolio creation-

Triyadhish Kumar: Kindly advice one thing: Is it wise to invest at the age of 67 in mutual funds?

Nikunj Saraf: Hi Triyadhish Kumar. The age of the investor plays a major role in MF investment after the age of 60. You can invest in Mutual Funds, but make sure your portfolio focuses on the Debt Asset Classes.

A maximum of 15-20% should be invested in equity-oriented schemes. Also, lump sum investments are not advisable here.

Tapan Nath: I am investing Rs. 62500/- per month as SIP in Mutual Funds in the below mentioned funds:

1.Axis Blue Chip

2.Canara Robeco Blue Chip

3. ICICI Blue Chip

4. Mirae Asset Large Cap

5. UTI Master Share

6. PGIM Flexi Cap

7. Parag Parikh Flexi Cap

8. Axis Flexi Cap

9. UTI Flexi Cap

10. Axis Growth Opportunity Fund

11. Canara Robeco Emerging Blue Chip

12. Mirae Asset Emerging Blue Chip

13. Mirae Asset Focused Fund

14. Kotak Small Cap Fund

In addition, I have Rs.12 Lakh lump sum additional investment in Mutual Fund. I am 55 yrs of age. Can it be possible to build Rs. 1 Crore corpus in 5 yrs?

Nikunj Saraf: Hello Tapan Nath. There is over-diversification with 62.5K sip in 14 schemes. Hence I would suggest immediate action with portfolio concise, reshuffling and rebalancing. In each category, it is advisable to limit yourself to 2 schemes at most. Furthermore, you seem to have targeted few categories such as large, Flexi, and large & mid-cap and invested in the best performers. Your portfolio should contain at most six schemes with a variety of categories and AMCs.

As your past investment time is not disclosed, assuming you are at the beginning of your investment journey, approximately 75 lakh with an estimated CAGR of 12-14% can be built in 5 years. You can achieve the 1 Cr goal if you have been investing in SIPs for the past 2 years.

Vipul Gupta: My name is Vipul and I am 39 years old. Looking to build a corpus of 5-6 crores in next 10 years.

I am currently investing ₹77,000 monthly in following schemes. Please suggest if this portfolio seems in line with market conditions also I am looking for investment horizon of 10 years. Also please suggest more scheme/s for ₹23,000.

1. SBI Magnum Medium Duration Fund (15,000)
2. SBI Focused Equity Fund (10,000)
3. Kotak Equity Opportunity Fund (10,000)
4. Mirae Asset Focused Fund (10,000)
5. UTI Flexi Cap (5,000)
6. SBI Small Cap (5,000)
7. UTI Hybrid Equity (2,500)
8. UTI Transportation and Logistics (2,500)
9. SBI Retirement Benefit Fund (3,000)
10. LIC MF Banking and PSU Debt Fund (15,000).

Appreciate your guidance.

Nikunj Saraf: Hello Vipul. You have apparently targeted a few AMCs and invested in their schemes despite the fact that the selected schemes are in line with the market. Instead, I suggest limiting AMC diversification as this could have a negative effect on portfolios due to overlapping holdings. Select one scheme per AMC.

A clear vision in allocating Debt, Hybrid, and Equity assets would also be helpful. If you invest 1 lakh as sip, your portfolio is over-diversified, the portfolio needs to be reshuffled and rebalanced.

Assuming your investment time horizon has begun now, since your past investment time horizon is not disclosed. It will also require sip investments of 1.91 lakh monthly to achieve a corpus of 5 crore in 10 years.

Saurabh: Hi, I am 32 years old, married & have 1 child (1 year old). Me & wife have combined income from salary of 2.5 lakh post taxes. We are investing in following funds & have investment horizon of more than 15 years.

UTI Nifty 50 Index fund - 12K

Axis Nifty Next 50 Index fund - 8K

Kotak Emerging fund - 10K

Motilal Oswal Midcap 150 Index Fund - 10K

Parag Parikh Flexi Cap fund - 10K

NPS - 15K

Please comments on existing portfolio and suggest better investment ideas.

Nikunj Saraf: Hi Saurabh. Based on your current portfolio, I would suggest you reconsider Motilal Oswal & Parag Parikh AMC schemes. It appears you have a high percentage of investments in Index Funds. You can keep investing in the UTI Nifty 50 Index fund in the index fund category.

With 15-year investment horizon, I would advise to introduce small cap, Large & mid cap in your portfolio. Moreover, avoid over diversifying with too many schemes when introducing new schemes.

Biju Singh: I am 43 years old. I am investing in following funds through monthly SIPs.

1. Parag Parikh Flexi Cap - 3,000/-

2. Axis Bluechip Fund - 2,500/-

3. SBI Focused Fund - 1,500/-

4. SBI Small Cap Fund - 1,500/-

5. ICICI Technology Fund - 1,500/-

Additionally I have:

1,20,000/- in Mirae Emerging Bluechip,

35,000/- in HDFC Small Cap,

90,000/- in Kotak Flexi Cap

50,000/- in ABSL Banking& Fin Serand thus, till now accumulated around 8,50,000/-.

I need 30,00,000/- after 8 years. Please review my portfolio and advice if some changes are required. Also what is your advice on Axis Bluechip Fund which is not performing well.

Nikunj Saraf: Hello Biju Singh. Using your current sip and lump sum investment, you can achieve 30 lakh corpus in 8 years with an expected CAGR of 14%. As far as the amount is concerned, no modification is necessary.

In addition, I suggest that Axis Bluechip, HDFC Small Cap and Parag Parikh schemes be revisited with respect to their better peer schemes. I hope this resolves your concern.

Rakesh Kumar Dubey: I am 44, I want to start investing in MF, Can you pls suggest me how to start investing in MFs?

What will be minimum amount to invest in MF, pls suggest.

By the time I am 60 years i want to save 1Cr and i want 50lakh for my children education.

Nikunj Saraf: Hi Rakesh. Considering your multiple requirements, I would recommend to start a monthly sip of 20K in order to achieve 1.5 Cr for your retirement and child education goal in next 16 years. While curating your portfolio, diversify your portfolio with large, mid, small & flexi cap category.

Below are few recommended Funds, for your reference:

ABHINANDAN SEN: I am 39 yrs old and new to mfs and sip.

I want to build a corpus of 3cr by the age of 55.

Kindly suggest a portfolio.

Nikunj Saraf: Hello ABHINANDAN SEN. Based on your age factor and your goal of achieving 3 Cr, I would suggest starting a monthly sip of 41 K. While curating your portfolio, diversify it across large & mid, multi cap, mid, and small-cap categories. For your portfolio, you may refer to the following schemes:

You can read more of Mr Saraf's answers here


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