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This article was first published 2 years ago  » Getahead » Ask MF Guru: 'I am very new in MFs'

Ask MF Guru: 'I am very new in MFs'

May 12, 2021 08:54 IST
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Illustration: Dominic Xavier/

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

Jacob Cherian: I am an NRI; never invested in MFs. I would like to have your views on investing in the top MFs on a monthly basis of Rs 50k- Rs100k with a monthly inflow to my bank. I am also looking to invest between Rs 100 lacs as lumpsum in some funds to save taxes. I would appreciate your brilliant ideas on the same. My age is 55 years. I am looking forward to hearing from you.

Omkeshwar Singh: Below are few funds that can be considered for monthly investment:

  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

Tax savings are capped at Rs 1.5 lakhs under 80C per annum, therefore it does not make sense to invest more than that in ELSS schemes.

A few ELSS Schemes that can be considered are

  1. Axis Long term Equity Fund -- Growth
  2. Canara Robeco Equity Tax Saver Fund - Growth

sanjay mahajan: I am investing in MFs since Jan 2018. 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 ₹. 4000/ in each. Is it good to continue with these folios? Or would you like to suggest any change. If yes, then what type of fund? Where shall get answers to these sir?

Omkeshwar Singh: Please continue, no changes required

Anoop Yadav: I am investing in the following funds since 4-8 years. I want to build a corpus for my retirement as well chidren’s (2) higher education after 10 and 15 years. I am 40 right now. Please advise.

1.Parag Parikh Flexi Cap Fund - Direct Plan (5000/-pm, from oct 2020)
3.ICICI Prudential Bluechip Fund - Growth (2000/-pm, from 2012)
4. HDFC Mid-Cap Opportunities Fund - Regular Plan - Growth (2000/-pm, from 2012)
5. HDFC Flexi Cap Fund - Regular Plan - Growth (2000/-pm, from 2012, closed in 2020)
6. HDFC Index Fund - Sensex Plan - Direct Plan (1000/-WEEK, from Dec 2020)
7. Axis Mid Cap Fund - Direct Growth (1000/-WEEK, from June 2020)
8. Axis Long Term Equity Fund - Regular Growth (2000/-pm, from Jan 2015)
9. Aditya Birla Sun Life Tax Relief'96 Fund (2000/-pm, from 2016)

I want to invest 5000 more in Kotak small cap. Also want to invest 5000/- more, kindly advise where I invest?

Omkeshwar Singh: Please continue with 1, 3, 6, 7, 8 and 9.

Yes, you may invest in Kotak Small Cap Fund -- Growth

You may consider a couple of schemes from below for further investments

  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

Pradeep Tyagi: I am very new in MF. I started investing in some Mutual Funds. Kindly suggest me whether I am right or wrong? Please advise me

icici pru buiseness cycle fund direct growth -- Rs 100

Tata Digital india fund direct -- Rs 500

Quant Active fund `direct growth -- Rs 1000

Mirae Asset hybrid equity fund direct growth -- Rs 1000

Axis growth opportunity fund direct lumpsum -- Rs 5000

Omkeshwar Singh: Please continue; these are decent funds

Susheel Abraham: I have a plan to invest Rs. 5000/- each in the following funds on a monthly basis for the next 5 years for the purpose of owning a house in the next 5 or 7 years. Could you please give your advice?

PGIM India Global Equity Opportunities Fund - Growth

Kotak NASDAQ 100 Fund of Fund - Growth

ICICI Prudential Technology Fund - Growth

Tata Digital India Fund -- Growth

Omkeshwar Singh: Please continue; these are decent funds

saatvik sharma: Sir following are my SIPs per month. Kindly advice.

1. Nippon india value fund- Rs. 2000/-

2. Tata Equity P/E fund- Rs. 2000/-

3. Axis focus 25 direct plan fund- 1000/-

4. Mirae asset large cap-1000/-

5. SBI equity hybrid- 500/-

6. HDFC mid cap opportunity- 500/-

7. L&T business emerging- 500/-

8. PGIM india global equity opportunity- 500/-

9. DSP world gold fund- 500/-

10. HDFC small cap- 500/-

11. Tata India Pharma& healthcare- 500/-

12. SBI bluechip- 500/-

13. SBI focus equity- 500/-

14. SBI banking and services- Rs. 500/-

Omkeshwar Singh: Please continue with 2, 3, 4, 5, 8, 12, 13

niraj kumar: I am 34 years old and looking to invest for a long term (10-15 years) to build a corpus of 1.5+ crores. Please review my current holdings (monthly SIPs) and suggest if I need to make any changes. Thank you

L&T Infrastructure Fund - 1500 p/m

DSP Natural Resources and New Energy Fund - 2000 p/m

L&T Midcap Fund - 1500 p/m

Aditya Birla Sun life Frontline Equity fund - 1500 p/m

ICICI Prudential Banking and Financial Services - 1500 p/m

UTI Transportation and logistics fund - 2000 p/m

Omkeshwar Singh: Too many sectoral funds, its better if you many consider below funds:

  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

Sunil G Bhosekar: I want to invest Rs 10L in some MF. Are there any Mutual Funds that provide monthly payout?

Omkeshwar Singh: Monthly dividend payout is tax inefficient and also irregular pay-outs, its better invest in Growth Plans with SWP.

Need more information to suggest any funds

Anonymous: My age is 31. I am trying to save up to 5,000 per month. I wanted to know if my current strategy is correct or not and if the funds are right. Pl advice what should I do. Whether I should continue or switch over to other schemes.


1. Franklin India Smaller Companies Fund - Gr - Rs.2000/-

Lumpsum investments:

1. Axis Focused 25 Fund - Gr - Rs.50,000/- From 19-03-2020
2. BNP Paribas Focused 25 Equity Fund - Gr - Rs.5000/- From 11-02-2021
3. Nippon India Liquid Fund - Gr - Rs.50,000/- From 27-03-2019
4.Nippon India Low Duration Fund - Gr - Rs.5000/- From 19-12-2016

Omkeshwar Singh: Axis Small Cap or Kotak Small cap are better options and keep one focused fund -- Axis Focused -- and add a flexi cap fund to your portfolio; 3 and 4 are okay on the debt side.

Either of these 2:

  1. UTI Flexi Cap Fund -- Growth
  2. Parag Parikh Flexi Cap Fund -- Growth

puneet sharma: I am 4o years old. I have been investing in below funds. Please suggest whether to continue or not. I am investing for a total of 15-20 years. My goal is for my children's, who are 7+ and twin daughters of 1 year old, education; also for my retirement income. Total 30,000/month:

1. Mirae Asset Emerging Bluechip Fund - 9,000/month

2. Axis Bluechip Fund - 5,000/month

3. Axis Mid-cap Fund - 5,000/month

4. Parag Parekh Long Term Equity Fund - 5,000/month

5. DSP Small Cap - 3,000/month

6. Franklin India Bluechip Fund - 3,000/month

Omkeshwar Singh: Continue with 1, 2, 3 and 4

Krishnan N: Please review my MF holdings and kindly advise me what are the funds i should retain/close and what new investments to make?

Fund Name Month/Year Amount Units
Thru Broker One Time      
Franklin India Equity Fund Div Reinvest  11/2004 10,000 3,141
Tata Large and Mid Cap Fund RP Div R.Invst (Formerly TEOD (D)) 11/2004 10,000 2,629
Nippon India (Reliance) Pharma Fund Div Reinvest 11/2004 10,000 2,593
Sundaram Bluechip Growth Fund - IPO  09/2020 25,000 2,499
Thru Broker SIP      
SBI Focussed Equity Fund Reg Growth 07/2012  2000/mth   
HDFC Mid Cap Oppurtunities Fund Reg Growth 07/2012  1000/mth   
Axis Bluechip Growth Fund Regular Growth 10/2020  4000/mth   
Canara Emerging Equity Fund Reg Growth  06/2019  2000/mth   
Mirae Emerging Bluechip Fund Reg Growth 06/2019  2000/mth   
Nippon India Small Cap Fund Reg Growth 06/2017  2000/mth   
HDFC Mid Cap Oppurtunities Fund Reg Growth 06/2017  1000/mth   
Birla Sunlife Pure Value Fund Reg Growth 06/2017  2000/mth   Stopped 11/ 2020 
L & T Emerging Business Fund Reg Growth 06/2017  2000/mth   Stopped 12/2020 
Direct Investments      
Quantum Long Term Equity Value Fund DP - Growth  05/2019 10,000  
Franklin India Flexi Cap (Formerly F.I. Equity) Fund - Direct Growth 07/2019 25,000  
Franklin India Banking & PSU Debt Fund - Direct -Growth 08/2019 75,000  
Franklin India Corporate Debt Fund Plan A - Direct - Growth 08/2019 25,000  
Franklin India Flexi Cap (Formerly F.I. Equity) Fund - Direct Growth 03/2020 25,000  

Omkeshwar Singh: Too many funds for any meaningful long-term outperformance.

Continue with Tata large and mid-cap, SBI Focused Equity Fund, Axis Bluechip Growth Fund, Canara Emerging, Mirae Emerging,

Saravanan K S: I am an NRI, 37 yrs old. I am planning to invest Rs 50,000 in MF every month. I will not need immediate cash from this for next 23 years. Can you please suggest growth funds for me? I aim to maximise the growth for 23 years, so ready to take high risk. In addition, I also have a lumpsum of 20Lakhs. I want to invest this in MF, but worried about the current market levels. Can I put this in Liquid fund and SIP slowly into growth funds? I have recently done KYC and created online account only with the following fund houses, so can you please suggest direct funds with them only?

Omkeshwar Singh:

ICICI PRUDENTIAL – Go for ICICI US Bluechip Fund - Growth

SBI MF – Go for SBI Global Equity fund -- Growth

HDFC MF – Go for HDFC Sensex Index Fund -- Growth

AXIS MF – Go for Axis ESG Equity Fund Growth

UTI – Go for UTI Flexi Cap Fund - Growth

Riddhi Gilatar: I am 26 years old. I don't have much knowledge on SIP and Mutual Funds. Currently I will be able to invest around rs. 5000-6000 per month and my goal is for purchasing a house in next few years. I wanted to know which Mutual funds should I opt for in terms of growth and high returns? Also please suggest if I need to increase the amount to invest. Please let me know with regards to SIP, as I won't be able to invest lumpsum amounts and can only invest via SIP.

Omkeshwar Singh: Below are few funds that can be considered for monthly investment:

  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

Velanandan Parasuraman: I turned 56years old this March. I have no regular source of income except bank interest on FDs. Since the interest rates have fallen I need to enhance my monthly income. I intend to break my FD which I renewed for a year from 29-1-21. I intend to take 50 lacs from that & invest in SWP so that I get 50k every month. Given the market conditions is it a right decision serving my purpose with adequate capital protection. Eagerly awaiting your reply & thanking you in advance.

Omkeshwar Singh: 10% SWP will eat up the corpus, realistic would be SWP of 7% to 7.5% of the corpus form high quality debt and a balanced advantage fund can be introduced to the portfolio

  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

Rs 12.5 lakhs to be invested in each with SWP of Rs. 8000 per month from each of these 4 funds

swagat chakraborty: I am 45 year old and want to build a corpus of 1.5 Crore in next 15 year. Pls Suggest Me the MF I need to invest. My Risk Appetite is High as I am starting late.

Omkeshwar Singh: Monthly SIP amount of Rs 27500 will be required to achieve the targets:

Below are few funds that can be considered for creating a corpus of Rs 1.5. Crs in 15 years

  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

Around 13th year or 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

If you want Mr Singh's advice on your mutual fund investments, please mail your questions to 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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