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ASK MF GURU: MFs That Can Make You RICH

By OMKESHWAR SINGH
December 02, 2021 09:02 IST
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'Please suggest which funds I can invest in.'

Illustration: Dominic Xavier/Rediff.com

Omkeshwar Singh, head, Rank MF, (external link) a mutual fund investment platform, answers your queries:


 

Sameer Ahmed: Current Age: 51, Retirement age: 60 @ 2031, nine years left. I need around Rs 50 lakhs by 2035 by investing in various MFs.

Please advise. My current investment in MF is as below.

UTI Opportunity Fund: SIP of Rs 2,000 pm

UTI Equity Fund (Flexi): SIP of Rs 2,000 pm

My current corpus in UTI is Rs 7,00,000. I have been investing since 2012.

Please advise other MFs to invest to achieve the above corpus.

Omkeshwar Singh: Few schemes that may be considered are Axis ESG Equity Fund (Growth), Motilal Oswal Focused 25 Fund (Growth), ICICI Prudential US Bluechip Equity Fund (Growth), SBI Magnum Global Fund (Growth) and DSP Quant Fund (Growth).

 

Ankit Daga: I am 33 years. I have some investments in shares from the last six years.

Now, I am planning to start a monthly SIP to the tune of Rs 5,000 per month, but I am not able to decide the plans in which to invest.

I am planning for my retirement/children's future (Rs 1 crore minimum) after 25 years.

Please suggest the funds in which to invest.

Omkeshwar Singh: Few schemes that may be considered are Axis ESG Equity Fund (Growth), Motilal Oswal Focused 25 Fund (Growth), ICICI Prudential US Bluechip Equity Fund (Growth), SBI Magnum Global Fund (Growth) and DSP Quant Fund (Growth).

 

Dhairya Chauhan: I am 38 and I have invested in some MFs through SIPs and below are my active and stopped funds.

1. Principal Personal Tax Saver Fund -- Regular Plan, Growth: Rs 5,000 SIP (Active)
2. ABSL Tax Relief '96 Fund-ELSS -- IDCW-DIR Payout: Rs 1,000 SIP (Active)
3. Nippon India Tax Saver (ELSS) Fund -- IDCW-DIR Payout: Rs 1,000 SIP for 8 years (Stopped)
4. Tata India Tax Savings Fund Direct Plan -- IDCW: Rs 2,000 SIP (Active)
5. DSP Tax Saver Fund: Rs 1,000 SIP for 3 years (Stopped).
6. Franklin India Flexi Cap Fund -- Direct (Erstwhile Franklin India Equity Fund): Rs 1,000 SIP for 3 years (Stopped).

My plan is to invest an overall Rs 10,000 monthly SIP.

Kindly suggest if the current folio is correct or I need to stop some current (1, 2 & 4) and start stopped SIP (3,5 & 6).

Omkeshwar Singh: Most of the funds are ELSS. If tax saving is the main objective, you may consider them. Else a few schemes that may be considered are Axis ESG Equity Fund (Growth), Motilal Oswal Focused 25 Fund (Growth), ICICI Prudential US Bluechip Equity Fund (Growth), SBI Magnum Global Fund (Growth) and DSP Quant Fund (Growth).

 

Kishore Babulal Purohit: I am looking for longer horizon of 15/20 years from now with an objective of creating a large corpus for my retirement.

I am already investing Rs 10,000 in the below SIPs and request your expert guidance/views whether I should continue investing in such funds or make any change in the strategy.

My age as on date is 40 years. Risk appetite is medium.

Mutual Funds
1. Quantum Long Term Equity Value Fund -- Direct (G)
2. L&T Emerging Businesses Fund -- Regular Plan (G)
3. Kotak Bluechip Fund -- Direct Plan (G)
4. IDFC Tax Advantage (ELSS) Fund -- Direct Plan (G)
5. SBI Small Cap Fund (G)
6. Canara Robeco Blue Chip Equity Fund -- Regular Plan (G)
7. Kotak Standard Multicap Fund -- Regular Plan (G)
8. Mirae Asset Emerging Bluechip Fund -- Direct Plan (G)
9. DSP World Energy Fund -- Regular Plan (G)
10. DSP Equity Opportunities Fund -- Regular Plan (G)
11. Motilal Oswal Focused 25 Fund -- Regular Plan (G)
12. SBI Focused Equity Fund (G)

Request you to please guide with your valuable inputs in relation to the above.

Omkeshwar Singh: Funds are good but too many funds are there. Try to restrict to four to six funds, that is sufficient to provide adequate diversification.

 

Sri Harsha Veeravalli: I am 21 years old and I am still studying. I am investing in these funds through SIP:

HDFC Top 100 Fund Direct-Growth: Rs 1,000 since one year.

Axis Long Term Equity Fund Direct -- Growth: Rs 1,000 since one year.

I want to invest a lump sum of Rs 5,000 to Rs 10,000.

Please give me a suggestion for this portfolio, Should I stay invested or consider any other funds?

Omkeshwar Singh: You may continue with the HDFC and Axis funds. Parag Parikh Flexi Cap Fund -- Regular Plan, Growth, is a good flex cap fund for your lump sum investment.

 

Mohd Zeeshan: Thank you for your valuable insights on MFs. Appreciate your precise inputs.

My question is that I have invested in different mutual funds over the last few years for a limited time period.

Right now, I am only continuing SIPs in select few MFs and have discontinued investing in the other MFs, though I have not withdrawn the money from the existing mutual funds.

Do you advise withdrawing all the money from those funds and investing the money in the select few MFs or continue as it is?

Omkeshwar Singh: You may book partial profits and enter into good quality, high safety margin schemes.

 

Harshit Patel: I am 24 years old. I'm new to MFs, so I want to know about returns and risks involved.

I want to invest Rs 15,000-20,000 every month in MF.

Can you please suggest which SIP will give highest returns on long term investment (15-20 years) or more than that?

Awaiting for your response.

Omkeshwar Singh: Investment in mutual funds is subject to market risk and each fund comes with a risk-o-meter. It is pertinent that you assess your risk profile and accordingly invest in mutual funds.

Equity funds are good for long term investments; however, they are high risk investments.

You may consider Axis ESG Equity Fund (Growth) and Motilal Oswal Focused 25 Fund (Growth).

 

Saikat Debnath: Hope you are doing well.

I have done SIP in the following funds, with intention of continuing for 20 years:

Mutual Funds No of units
1. Axis Long Term Equity Fund Regular Growth 1,000
2. DSP Midcap Fund Regular Plan Growth 1,000
3. HDFC Tax Saver Regular Plan Growth 1,000
4. ICICI Bluechip Fund Growth 1,000
5. SBI Bluechip Fund 1,000
6. Nippon India Small Cao Fund Growth 1,000
7. UTI Midcap Fund Regular Growth 1,000

Additionally, I intend to start SIP in Canara Robeco Emerging Equities and Prakash Parekh Flexi Cap Fund (Rs 1,000 each) from January next year as well as increase the SIP amount in two of the existing funds by Rs 500 each.

What sort of return may I expect with my current portfolio?

I am 34 years of age and a salaried person.

Is there any other fund that you would like to suggest for SIP?

Omkeshwar Singh: There are already adequate funds in your portfolio, no need to increase the number of funds any further. The amount can be increased if required.

Thirteen to 15 per cent returns can be expected in long run. However, mutual fund investments are subject to market risk

 

Hemang Jadhav: I would like to know that for 15 years (starting year 2018) horizon and an ongoing SIP of Rs 42,000 in the following funds, can I expect a growth of 16-18 percent in corpus or Rs 3 crore at the end of 15 years.

Current investment as on date is as follows:

Mutual Funds Price
SBI Smallcap fund Rs 2,40,000
Mirae Asset Emerging Bluechip Rs 5,55,000
HDFC Hybrid Equity Fund Rs 2,30,000
Kotak Flexicap Fund Rs 5,70,000

Omkeshwar Singh: Please continue with the funds. Thirteen to 15 per cent returns can be expected in long run. However, mutual funds' investments are subject to market risk

 


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.

Feature Presentation: Ashish Narsale/Rediff.com

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OMKESHWAR SINGH / Rediff.com