Anonymous: Dear Sir, I want to create a secondary retirement corpus. Accordingly, I want to invest 6 lakhs in the next one year (starting from Jan 2024). My investment period will be 20 years. Pls suggest 6-7 Mutual funds for the same. Thanks.
Hello & thanks for writing to me. I am assuming that you want to invest a lump sum amount of Rs.6 Lakh in a few mutual fund schemes for the long term.
You can consider investing in:
1-DSP Quant Fund: Rs.1 Lakh
2-SBI Focused Equity Fund: Rs.1 Lakh
3-DSP Top 100 Equity Fund: Rs.1 Lakh
4-Tata Ethical Fund: Rs.1 Lakh
5-UTI Dividend Yield Fund: Rs.1 Lakh
6-Bandhan Nifty 100 Low Volatility 30 Index Fund: Rs.1 Lakh
G: I have 1 million in my bank and want regular income of 10k per month. Is it worth investing in SWP? If so, suggest the correct MFs
Hello and thanks for writing to me. You can consider investing in Balanced Advantage Funds or Multi Asset Funds. These funds invest in multiple asset classes like equities, debt and in the case of multi asset funds, REITS, gold and silver. As they invest in multiple classes, you can expect to see lower volatility.
Do note that there are no guarantees when it comes to investing in mutual funds. I recommend you consult a financial planner who can create a specific plan for you.
Somnath: Which is the best fund to invest my retirement corpus so that i can get the maximum benefits out of my money? I need monthly income to sustain post retirement life peacefully.
Hi Somnath and thanks for writing to me. I am assuming that you have created your retirement corpus and are not looking to take risks with it.
You can consider investing in Balanced Advantage Funds/Dynamic Asset Allocation funds and multi asset funds. These funds invest in a mix of asset classes like equity, debt & commodities changing the asset allocation based on market conditions. As you are exposed to multiple asset classes, you can expect downside protection.
I recommend you meet a financial planner who can help you create a plan based on your individual requirements with specific funds and allocation.
Rajesh: Hi Ulhas, Good day. I am planning to start SIPs (55K per month) in the following Mutual funds for a horizon of 5-7 years to create 1 corpus. Could you please review and suggest if they look fine or need any changes/alternate funds. I am fine to take higher risks. 1 Quant Small Cap Fund Direct Plan Growth 3000 2 Nippon India Small Cap Fund Direct Growth 2500 3 HDFC Small Cap Fund Direct Growth 2500 4 Canara Robeco Small Cap Fund Direct Growth 3000 5 Quant Mid Cap Fund Direct Growth 3000 6 Motilal Oswal Midcap Fund Direct Growth 2000 7 HDFC Mid Cap Opportunities Direct Plan Growth 3000 8 Quant Infrastructure Fund Direct 3000 9 Quant Flexi Cap Fund Direct Growth 3000 10 Parag Parikh Flexi Cap Fund Direct Growth 6000 11 HDFC Flexi Cap Direct Plan Growth 5000 12 ICICI Prudential Technology Direct Plan Growth 3000 13 HDFC Retirement Savings Fund Equity Plan Direct Growth 5000 14 HDFC Balanced Advantage Fund Direct Plan Growth 2500 15 UTI Nifty200 Momentum 30 Index Fund Direct Growth 2500 16 Bandhan Nifty 50 Index Fund Direct Plan Growth 3000 17 Nippon India Growth Fund Direct Growth 5000 Thank You!
Hi Rajesh and thanks for writing to me. I assume that your goal is create a corpus of Rs 1 Crore. If your investments grow at around 12% XIRR, then you need to invest around Rs.76,000 every month to achieve your goal.
While most of the funds are pure equity funds, you can consider not investing in thematic funds like Infrastructure Fund or Technology funds and instead increase your allocation to flexi cap funds.
Similarly, you can also consider not investing in a balanced advantage fund and rather invest the sum in equity funds.
Note that these suggestions are made considering that you are fine with high risks associated with equity. If you share your risk profile, I may recommend some other funds.
Anonymous: Hello Sir. I am investing via SIP in Parag Parikh Flexi Cap Fund (15k), PGIM Flexi Cap (5k), UTI Nifty50 (10k), Kotak Emerging Equity (5k), Motilal oswal Midcap (6k), Tata Small Cap (4k) all in Direct growth. Please review my funds.
Hello and thanks for writing to me. I am assuming that you are investing for the long term for wealth creation and are fine with taking risks.
For that goal, the fund selection is fine, but you can consider reducing the investment in the NIFTY 50 passive to Rs.5,000 and start an SIP of Rs.5,000 in a multi cap fund.
Do note that periodic rebalancing is essential to ensure that you are on the right track. Stepping up your SIP's every year will help you create a larger corpus.
- You can ask rediffGURU Ulhas Joshi your questions HERE.
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