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Ask MF Guru: 'Have I invested in too many MFs?'

By OMKESHWAR SINGH
May 14, 2021 08:54 IST
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Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:


Amit Jauhari: Age: 40 years. Please suggest a MF which works best for retirement, child's education and long term capital appreciation. I could invest Rs.1000/month.

Omkeshwar Singh:

  1. UTI Flexi Cap Fund -- Growth
  2. Parag Parikh Flexi Cap Fund -- Growth
  3. Axis ESG Equity Fund -- Growth
  4. Motilal Oswal Focused 25 Fund -- Growth

These funds will provide for the life requirements, however for the retirement corpus when you reach 57 / 58 years in age to reduce the volatility in the corpus shift to Debt Funds (Couple of Banking and PSU and one Corporate Bond Fund) along a Hybrid Balanced advantage fund

Venugopal Velidanda: Please advise me on these two issues:

1. I have invested Rs.30 lacs in UTIMF (index-based) three years ago. I intend to hold for long term for wealth creation. Should I book profit partly?

Omkeshwar Singh: No, please continue, last month (Post Budget rally) the margin of safety was low, some profits could have been booked, but not now, presently the margin of safety is moderate.

2. I have investable surplus Rs.40 lacs. I want to invest part of this amount in SWPs for a monthly income of Rs. 25,000/- Which funds should I invest in? If I want to invest the remaining in MFs for long term (5 years), which ones should I consider?

Omkeshwar Singh: Rs. 35 lakhs can be invested equally in above for a monthly SWP of Rs. 25Ki.e SWP of Rs. 6,250 from each of these 4 funds.

  1. HDFC Banking and PSU Fund -- Growth
  2. ICICI Corporate bond Fund -- Growth
  3. Union Balanced Advantage Fund -- Growth
  4. Aditya Birla Corporate Bond Fund -- Growth

Remaining Rs. 5 lakhs can be invested in these 4 schemes -- Rs. 1.25 lakhs each:

  1. UTI Flexi Cap Fund -- Growth
  2. Parag Parikh Flexi Cap Fund -- Growth
  3. Axis ESG Equity Fund -- Growth
  4. Motilal Oswal Focused 25 Fund -- Growth

Sumathi Gnanam: Am aged 47 years, I have 12 lakhs in hand & I would like to invest in MF for 3 years. Which fund would give me good returns?

Omkeshwar Singh: Short duration debt and Hybrid Balanced advantage are categories suited for this time horizon. Schemes to consider are as under (Rs. 4 lakhs each)

  1. HDFC short Term debt fund -- Growth
  2. ICICI Pru short term fund -- Growth
  3. Union Balanced advantage fund -- Growth
  4. Tata Balanced advantage fund - Growth

abhishek sharma: I have a 12 year old child and want to invest 1 lac per year till 2026 for higher education. What is best MF to buy with this time frame and considering I would need the money in 2026?

Omkeshwar Singh:

Fund Name Last price date Last price Total cost Current Value % of Total Total Return Return % pa Remarks
ICICI Pru US Bluechip Eqt Dir-G 2021-02-25 ₹ 42.05 ₹ 321,485.55 ₹ 356,905.85 18.6 ₹ 36,445.70 29.1 Bulk switch over from ICICI Multi asset fund in which I had SIP since 2017 of Rs 1,60,000/- on 28 Aug 20 & Rs 75,000 on 04 Sep 20. SIP @1000 per week from 28 Aug 20. Also switch in from ICICI gold Rs 50,000/- on 04 Dec 20
Motilal Oswal Nasdaq 100 FOF Dir-G 2021-02-25 ₹ 20.35 ₹ 84,346.33 ₹ 95,999.57 5 ₹ 11,653.24 32.3 Started with bulk investment of Rs 50,000/- on 22 Jul 20 & SIP @1250/- weekly since Aug 2020. I am also holding 100 sahres at buying average of 812/- in the ETF of this fund in my demat acct
Kotak Gold Dir-G 2021-02-25 ₹ 19.91 ₹ 75,996.44 ₹ 71,531.64 3.73 -₹ 4,464.81 -11.5 Started with bulk investment of Rs 50,000/- on 10 Jul 20 & SIP @3000 divided into tranches of 1000 on three days a month. Using this as Hedge for a longer period
Axis Bluechip Dir-G 2021-02-25 ₹ 43.60 ₹ 109,087.41 ₹ 143,205.60 7.46 ₹ 41,208.95 40.2 SIP @4000 per month in the fund since 2015 and encashed in 2109 but SIP continuing. SIP divided into three tranches of 1000, 2000 & 1000 on 01st, 10th & 20th of month respectively
SBI Focused Eqt Dir-G 2021-02-25 ₹ 204.70 ₹ 289,178.57 ₹ 377,724.67 19.69 ₹ 95,560.86 54.3 SIP @3000 per month in the fund since 2019 and. SIP revised to 5000 per month since Mar 2020 SIP divided into four tranches of Rs 1250/- on 1st, 8th, 15th & 22nd of every month. Done bulk investment by switch from SBI Blue Chip Direct growth of Rs 1,44,844 (accumlated thru SIP of Rs 4000/- per month from Jun 2017 to Jul 2020) on 13 Jul 20 & SBI MAgnum Gilt of Rs 50,000/- on 15 Sep 20
Kotak Emrgng Eqt Dir-G 2021-02-25 ₹ 62.45 ₹ 81,727.75 ₹ 95,071.60 4.96 ₹ 13,343.87 113.5 Started on 07 Dec 2020 by switching in 65000/- from Kotak Gilt. SIP @Rs 1000/- on 04th, 11th, 17th, 24th and 30th of the month
Parag Parikh Flexi Cap Dir-G 2021-02-25 ₹ 39.73 ₹ 29,999.50 ₹ 33,768.49 1.76 ₹ 3,768.99 75.8 Started on 29 Oct 2020 with initial investment of Rs 10,000 wef 29 Oct 2020 & SIP of Rs 5000/- divided into four tranches of Rs 1250/- on 10th, 15th, 20th & 25th of every month
DSP Eqt & Bond Dir-G 2021-02-25 ₹ 219.73 ₹ 14,000.00 ₹ 14,849.95 0.77 ₹ 849.95 54 Started in Dec 2020 with a SIP of Rs 4000/- divided into four tranches of Rs 1000/- each on 01st, 07th, 14th & 25th of every month
Mutual Funds     ₹ 1,005,821.55 ₹ 1,189,057.37 61.98 ₹ 198,366.75 40.1  

I have attached my protfolio of MFs. Though I have been investing in MFs since 2005, I have been redeeming the same many times like in 2010 for house and in 2014 & 2017 for personal trips abroad with my family.

The present state of my MFs is given above. My horizon is for long and hence my questions are as follows:

Q1. Have I invested in too many funds?

Omkeshwar Singh: Yes, 4 to 6 schemes are sufficient

Q2. Does the Portfolio require any rebalancing?

Omkeshwar Singh: Please continue with 1, 2, 4, 5, 6 & 7

Q3. Is it prudent to keep investing in SBI Focused equity fund through SIP as it falls in same category of Parag Parikh Flexicap? Further as the AUM of SBI Focused Equity fund is about 12,520 Crore is it not an issue?

Omkeshwar Singh: Both are separate categories, Focused and Flexi Cap, you may continue both, size of the fund is decent, need not worry

Q4. Is it ok to keep both ETF in Motilal Nasdaq 100 and MF of Motilal Oswal Nasdaq 100 FOF?

Omkeshwar Singh: Keep only one either will do

Q5. In case I have to rebalance which fund should i stop without loss on exit load and where would u advice more SIP? Would it be in Parag Parikh Flexicap or Axis Blue Chip fund? 

Omkeshwar Singh: Please refer to Q2 answer

Will be very grateful if the above questions may pl be answered. 

In addition to above being a Serving Officer in Indian Army my Monthly contributions incl 

Rs 5000 in Army Group Insurance Fund- compulsory
Rs 20000- in Defence Service Officers Provident Fund- compulsory,

Rs 8000- Sukanya Samridhhi account since 2016 for my daughter -voluntary
Rs 50000- per annum in NPS Tier I ( as individual private investor) as I am covered under Old Pension Scheme- voluntary

Omkeshwar Singh: These are fine for debt part of the portfolio

Ayan Kumar Mukherjee: I wish to do a Mutual Fund for 18 months period of amount Rs. 20000 per month for maximum return to fulfil my short term goal. Kindly advice which MF should I select.

Omkeshwar Singh:

Considering the tenure, below funds are suitable

  1. HDFC short Term debt fund -- Growth
  2. ICICI Pru short term fund -- Growth

Abinash Bairiganjan: I want to accumulate 1cr rupee to buy my home in 10yrs of time. I can afford to invest Rs 40000 per month. Please suggest me the mutual funds and distribution of funds for these purpose.

Omkeshwar Singh: Below are few funds that can be considered for monthly investment of Rs.10000 each for 10 years for a corpus of Rs. 1 cr:

  1. UTI Flexi Cap Fund -- Growth
  2. Parag Parikh Flexi Cap Fund -- Growth
  3. Axis ESG Equity Fund -- Growth
  4. Motilal Oswal Focused 25 Fund -- Growth

Neeraj Gupta: I am from Delhi. I am regular reader of Get Ahead. May I request you to pl. advise me if I shall invest in NFO of Invesco India ESG equity regular -growth Fund?

Omkeshwar Singh: It’s better to invest in existing ESG funds, because the portfolio is known for the quality of the scheme.

Axis and ICICI Pru have very good ESG Funds!

nilesh joshi: I am from Nashik. Now I am 52. I will be getting an amount of Rs. 2 lakhs in next month from my maturing post office savings. Please suggest good MFs to invest lumpsum to get good regular monthly income. Are the funds good & should I hold or change? Please suggest.

I am already investing Rs.17000/- pm in:

1. Axis Focused 25 Fund - Gr - 4000/-

2. Kotak Standard Multicap Fund - Gr - 5000/-

3. Principal Emerging Bluechip Fund - Gr - 8000/-

Omkeshwar Singh: Please continue with the existing funds and as far as Lumpsum of Rs. 2 lakhs are concerned, below fund can be considered:

  1. HDFC Banking and PSU Fund -- Growth
  2. ICICI Corporate bond Fund -- Growth
  3. Union Balanced Advantage Fund -- Growth
  4. Aditya Birla Corporate Bond Fund -- Growth

Depending upon your requirement you may set up SWP, however that should be not more than 7% to 7.5% of the corpus.

ANUJ Bhagawati: I'm seeking advice on the following:

a. Planning to invest 10k per month in MF for a long term with an objective of wealth creation. Risk appetite is moderate. Please suggest funds.

b. Planning to invest 10Lakh for short term, 6months to 12 months holding. Please suggest some debt funds.

Omkeshwar Singh:

Please be informed, that the Equity oriented schemes (Equity / Hybrid) come under high to very high risk categories and not moderate. Therefore, Hybrid balanced advantage can only be considered which has moderately high risk.

  1. ICICI Pru Balanced advantage fund - Growth
  2. Union Balanced advantage fund -- Growth
  3. Tata Balanced advantage fund growth

For 6 to 12 months you may look at low duration funds as under:

  1. Icici Prudential Savings Fund - Growth
  2. Aditya Birla Sun Life Low Duration Fund - Growth-
  3. Hdfc Low Duration Fund - Retail- Growth

Riyaz Mulla: I am currently having SIP in following MFs: Kindly advise if these MFs are ok and could be continued or need any changes in MF portfolio. Thanks. 

1. SBI Blue Chip

2. SBI Small Cap 

3. HDFC Mid Cap Opportunities. 

Omkeshwar Singh: Presently these schemes can be continued

Nakul Kumar: Wanted to make sure if I should change my investment style or not. Below are the MF details. 

Investment time horizon is 30+ years. 

I have also started investing in PPF(10% of salary) account to hedge inflation. 

Please advice if I should continue this strategy.

Age: 25

Sip: 5000

Started from mid 2019

MF details

1. Nippon India US equity opportunity growth

2. Icici prudential FMCG growth

3. Axis blue-chip fund direct growth.

4. Icici prudential Nifty next 50 direct dividend. 

Omkeshwar Singh: Please continue

aparnab1805: I have started recently to invest in MF and already invested in following MFs as one time investment for long term. I want to invest Rs. 5 L as one time investment for 7 to 10 years, can you please suggest the funds name for this?

Omkeshwar Singh: You may consider below funds and divide accordingly:

  1. UTI Flexi Cap Fund -- Growth
  2. Parag Parikh Flexi Cap Fund -- Growth
  3. Axis ESG Equity Fund -- Growth
  4. Motilal Oswal Focused 25 Fund -- Growth

Again, I want to start SIP for 20K per month. Can you please suggest the funds name where I should invest. I am looking for short term ( 1 to 2 years).

Omkeshwar Singh: Suitable for 1 to 2 years are below funds

  1. HDFC short Term debt fund -- Growth
  2. ICICI Pru short term fund – Growth
  3. Axis blue chip - Regular Growth
  4. Axis mid cap
  5. Tata Balanced fund
  6. Mirae - Asset Large Cap Fund
  7. Mirae - Asset Hybrid equity fund – G
  8. Quant active fund
  9. DSP equity and Bond fund
  10. SBI equity Hybrid fund
  11. ICICI prudential equity and debt fund

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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