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Ask MF Guru: 'Can I achieve Rs 1 crore target in 10 years?'

By OMKESHWAR SINGH
March 19, 2021 08:54 IST
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'I have started investing from the last 4 months through weekly SIP in direct growth funds.'
Please advise whether I continue with them for 10+ years or change.

Illustration: Dominic Xavier/Rediff.com
 

Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:


vikram singh chouhan: I am 40 years old. My ongoing MFs:

1. HDFC Balanced Advantage Fund (D)
2. DSP Tax Saver Fund -
3. Axis Multicap Fund -
4. Axis Bluechip Fund -
5. Nippon India Small Cap Fund (G)
6. ICICI Prudential Value Discovery Fund (G)
7. DSP Small Cap Fund - Regular Plan (G)
8. HDFC Mid-Cap Opportunities Fund (G)
9. UTI Nifty Next 50 Index Fund
10. UTI Transportation and Logistics Fund (G)

Investing since 4 years around 50 K per month. Please suggest which one to be stopped from the above and which MF should be added ??

Omkeshwar Singh: Please continue with 2, 3, 4, 6 and 9

Axis Small Cap / Kotak Small Cap are better Small Cap options

DSP Mid Cap and Axis Mid cap are better option

Neeraj Gupta: I am 53 years old. I am a regular reader of your column on rediff.com. I wrote many times but never got reply of my queries. Now I do request you to pl. give me you valuable advise on my below two queries.

1. I have an investment in mutual fund. According to current overvaluation of Stock market shall i stay invested or switch to Liquid funds?

Omkeshwar Singh: There are few schemes where partial profits can be booked, however, few of these can be continued even at these market levels as each and every scheme has different portfolio and therefore different level of margin of safety.

In case you are not able to assess the margin of safety you may consider shifting investments to hybrid balanced advantage categories.

2. I want your advice on HDFC Life Sanchay Plus Pension Plan for long term or life-long guaranteed income. It is claimed that total premium paid will be returned after the payout period and income earned will be tax free. shall i buy this policy? will it be feasible? shall i use funds from my mutual funds?

Omkeshwar Singh: It's always better to have a term plan with over 10 time the annual income and investments through mutual funds route. Investments through insurance is not advisable. 

Rakesh: I am 70 years old and have about 4.5 Crore in different liquid funds and FD. Want to invest in such a way that I should get a regular return of minimum 4.5- 5 lakhs as SWP per month after one year. The money in the MF's if not withdrawn should grow and give optimum returns. Please advise to keep some amount in FD or keep all amount in MFs.

Kindly suggest the portfolio and also advice if I should invest lump sum or through SIP mode in present market conditions.

Omkeshwar Singh: FD rates are pretty low, however expecting 12 per cent to 13 per cent returns on debt funds / Hybrid funds are not reasonable.

 Therefore, it would not be prudent for me to recommend any funds with these requirements.

7.5 per cent to 9 per cent can be a possibility with combination of debt and conservative / balanced advantage

  1. Hdfc Banking And Psu Debt Fund - Growth Option
  2. Icici Prudential Regular Savings Fund – Growth
  3. Tata Balanced Advantage Fund - Growth
  4. Union Balanced Advantage Fund - Growth

sanjay mahajan: I am investing in MF since jan2018. I have following folios:

1. Axis banking & PSU Debt (G)
2. ICICI predu.balance advantage fund -G
3. Kotak equity apportuniy fund (G)
4. Axis multi cap fund (G).
My target is for 5 yrs. I will be retired by Nov.2022.

I am investing Rs . 4000/ in each. Is it good to continue with these folios. Or would you like to suggest any change. If yes, then type of fund. Where shall get answers to these sir.

Omkeshwar Singh: Please continue, hope the retirement planning is separate from these Rs.4000 monthly SIPs.

Kiran K: I am an NRI, 43. I want to invest 5 lakh every year for next 10 years in MFs. Please advise. 

Omkeshwar Singh: Rs. 10000 in each per month

  1.  Axis ESG Equity fund – Growth
  2. UTI Flexi Cap fund – Growth
  3. PPFAS Flexi Cap – Growth
  4. DSP Quant Fund – Growth

yoshowant purohit: My child is 5 years old. I am planning for a long term investment into Mutual Funds for his studies. I plan to invest some amount per month in SIP for 13 years. My target is 30 -40 lakhs. Please advice the MFs I should invest in and what should be my monthly SIP amount.

Omkeshwar Singh: Rs 10000 per month for 13 years can create a corpus up to Rs. 40 lakhs

Rs. 2500 in each per month

  1.  Axis ESG Equity fund – Growth
  2. UTI Flexi Cap fund – Growth
  3. PPFAS Flexi Cap – Growth
  4. DSP Quant Fund – Growth

Shriniwas Shahane: Sir, I am started investing from last 4 months through weekly SIP in following direct growth funds. Please advice whether I continue with them for 10+ years or change.

Parag Parikh flexi cap fund- Rs.2000 per week

Axis Blue chip fund- Rs.1000 per week

Axis Mid cap fund- Rs.1000 per week.

Can I achieve target of Rs. 1 crore corpus in next 10 years.

Omkeshwar Singh: Sir, Rs. 16000 per month may take you up to Rs. 45 lakhs; for a crore corpus in 10 years Rs. 40,000 per month is required or weekly Rs. 10000 instead of Rs. 4000 presently.

With Rs. 4000 weekly it would take 15 years to reach the required corpus!

RAJEEV CHATNI: My current age is 47 years. I have invested in below ULIPs for 5 year lock-in period; What is your opinion on below ULIPs? Please suggest me some good mutual fund investments which will give good returns and also suggest me term insurance?

Omkeshwar Singh: Health / Medical Insurance and term insurance for protection and Mutual Funds for Investments are better options.

ULIPs are not ideal for investment purpose; instead mutual funds should be used for investments

For 10 years (and then switch to debt funds i.e at the age of 57)

1. Axis ESG Equity fund – Growth

2. UTI Flexi Cap fund – Growth

3. PPFAS Flexi Cap – Growth

4. DSP Quant Fund – Growth

Omkeshwar Singh: For term insurance look at LIs with high claim settlement ratio and choose for the same at your convenience.

BAJAJ ALLIANZ LIFE GOAL ASSURE - Premium Payment Term 5 Years, Started premium from March 2018 (Premium paid yearly - 2 lakh rs per annum)

HDFC Life click to invest - Premium Payment Term 5 Years, Started premium from March 2018 (Premium paid yearly - 2 lakh rs per annum)

Edelweiss Tokio Life - Wealth Plus Premium Payment Term 5 Years, Started premium from March 2018 (Premium paid yearly - 84,000 rs per annum)

Dr. Ashish S Jain: I am 40 year old and investing 60,000 per month in following mutual funds. My goal is to create wealth of 1cr in next 5-7 years. I wanted to know the funds are right or not.

1. Canara Robeco Emerging Equities-Regular Growth- 7000

2. HDFC Mid Cap opportunities -G ----7000

3. Kotak Standard multicap reg- g ---7000

4. L & T Midcap-G---7000

5. Mirae Asset Hybrid Equity Reg-G--7000

6. Mirae Asset Large Cap Reg-G---7000

7. SBI Small cap-G---8000

8. Mirae Asset Great Consumer Reg-G---3000

9. HDFC Retirement Saving Fund Equity Reg-G--3000

Also I have invested 1 lakh lump sum in Mirae Asset Focused Fund Reg-G in 2019.

Omkeshwar Singh: Please continue with 1, 3, 4, 5, 6, 7 and the lumpsum investment.


RankMF Disclaimer: Investments in mutual funds are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not an indicator of future returns.

Caution MF Equity oriented Investors: Please don't JUST look at one-year return; due to COVID-19 pandemic the market fell sharply in March 2020 because of which all returns may look unbelievably fantastic for a one-year period! Look for present quality of portfolio & margin of safety of the schemes! Happy informed investing!


If you want Mr Singh's advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in with the subject line, 'Ask MF Guru', along with your name, and he will offer his unbiased views.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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OMKESHWAR SINGH / Rediff.com