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Ask MF Guru: Want to invest for my kids's education

By OMKESHWAR SINGH
September 08, 2021 08:53 IST
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'I want to invest Rs 25 lakhs for my children's education. I want to also invest Rs 50K per month in MFs regularly from now. Can you please guide?'

Illustration: Dominic Xavier/Rediff.com
 

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


Vijay Wandre: I am 41 and working in a private organisation. I have started investing in MFs since the last three years.

Please find below my investment portfolio. Request your valuable advice.

Product Name SIP/PM Purchase Value
1. Axis Flexi Cap Fund Regular Growth Rs 2,000 Rs 87,000
2. Aditya Birla Sun Life Equity Fund Regular Growth Rs 2,000 Rs 87,000
3. HDFC Mid-Cap Opportunities Fund Regular Growth Rs 2,000 Rs 87,000
4. Nippon India Small Cap Fund, Regular Growth Rs 2,000 Rs 92,000
5. ICICI Prudential Value Discovery Fund, Regular Growth Rs 2,000 Rs 87,000
6. HDFC Low Duration Fund, Growth (formerly HDFC Cash Management Fund -- Treasury Advantage Plan) Rs 5,000 Rs 20,000
7. HRERP/Retirement Savings Equity Regular GR Rs 5,000 Rs 20,000
8. Kotak Flexi Cap Fund, (G) Regular Rs 1,300 Rs 27,300
9. Aditya Birla Sun Life Pure Value Fund, Regular Growth Rs 1,200 Rs 18,000
10. L&T Midcap Fund, (G) Rs 1,200 Rs 25,200
11. Franklin India Feeder Franklin US Opportunities Fund, (G) Rs 1,300 Rs 7,200
Product Name Purchase Value
1. SBI Flexicap Fund-Dir Gr Rs 20,000
2. SBI Large & Midcap Fund Direct Gr (formerly SBI Magnum Multiplier Fund) Rs 20,000
3. SBI Magnum MidCap Dir Fund-G Rs 20,000
4. SBI Blue Chip Fund -- Direct Plan, Growth Rs 5,000
SBI Magnum Constant Maturity Fund Direct Growth Rs 5,000

Omkeshwar Singh: Too many funds; please continue with 1, 3, 4, 5 and 11.

Keep the lumpsums invested.

 

Dr Munish Mehta: I am having SIPs in the following mutual funds. Time horizon is the next five years. Kindly suggest.

Mirae Asset Emerging Bluechip Fund Direct Growth Rs 2,500
SBI Bluechip Fund Direct Growth Rs 5,000
Axis Bluechip Fund Direct Growth Rs 5,000
SBI Focussed Equity Fund Direct Growth Lumpsum Rs 60,000
SBI Equity Hybrid Fund Direct Growth Lumpsum Rs 10,000

Omkeshwar Singh: Please continue.

 

Narendra Babu: Thanks for sharing your insights and analysis.

I am a 42 male with two kids -- the younger one is three years old and the older one is nine.

I have Rs 25 lakhs to invest for their education. I have never invested in MF or stocks till now.

I want to also invest Rs 50k per month in MFs regularly from now.

Can you please guide?

Omkeshwar Singh: You may consider SIPs of Rs 12.5K each in the in below funds.

 

Axis ESG Equity Fund -- Growth
Motilal Oswal Focused 25 Fund -- Growth
UTI Flexi Cap Fund -- Growth
ICICI US Bluechip Fund -- Growth

 

Arindam Das: I have the following funds with me since 2019.

Please give your opinion: should I hold all this SIP funds? I am 44 years old and I want to make Rs 1 crore in 15 years.

I also want to invest Rs 2,000 more every month.

Please guide me. Thanks in advance.

Axis Focussed 25 Fund (G) Rs 1,000
BNP Paribas India Consumption Fund -- Regular Growth Rs 1,000
Canara Robeco Flexi Cap Fund -- Regular plan Growth Rs 1,000
CanaraRob Equity Tax Saver (G) Rs 1,000
InvescoIndia Tax Plan  (G) Rs 1,000
Kotak Taxsaver (G) Rs 1,000
Mirae Asset Focussed (G) Rs 1,000

Omkeshwar Singh: You may continue with 1, 3, 4, 5, 6 and 7. However, you have too many ELSS funds.

Axis ESG Equity Fund - Growth can be considered for further investment.

 

Amarjeet: I am 38 and I have not invested anything in SIP or in shares till now. But I can start investing Rs 40k to Rs 50k per month in SIP from next month for the next five years.

I like the high risk profile because it has high potential.

Could you please suggest me breakage and SIP funds to create a portfolio?

Omkeshwar Singh: You may equally invest in the below funds:

Axis ESG Equity Fund - Growth
Motilal Oswal Focused 25 fund - Growth
UTI Flexi Cap Fund - Growth
ICICI US Bluechip Fund - Growth

 

Sandhya Sankar: I am 45 years old. I have not done any investment yet. Can you please guide how I can start? I can invest upto Rs 5,000 monthly.

Omkeshwar Singh: You may start with Axis ESG Equity Fund - Growth.

 

KK: Please provide your guidance to consolidate my portfolio to achieve goal of retirement corpus of Rs 2 cr.

I am currently investing a SIP of Rs 64,000 per month in the following funds from June 2020. My age is 46 years. I plan to work for another 9 years.

1. Axis Bluechip Direct G Rs 3,000
2. Axis Focused 25 Direct Growth Rs 3,000
3. Axis Midcap Direct G Rs 2,000
4. AXIS Small Cap Direct fund G Rs 2,000
5. HDFC Gold Fund Direct Growth Rs 5,000
6. ICICI Pru Discovery Direct Growth Rs 5,000
7. ICICI Pru US Bluchip Direct Growth Rs 5,000
8. Kotak Emerging Equity Direct Growth Rs 3,000
9. Kotak Flexicap Direct Growth Rs 3,000
10. Kotak NASDAQ 100 FOF Direct G Rs 3,000
11. Kotak Small Cap Direct Growth Rs 2,000
12. L&T Hybrid Equity Direct Growth Rs 3,000
13. L&T MidCap Fund Direct Growth Rs 2,000
14. L&T Nifty Next 50 Index Fund Direct G Rs 5,000
15. L&T Value Fund Direct Growth Rs 3,000
16. Mirae Asset Emerging Bluechip Direct G Rs 2,500
17. Mirae Asset Large Cap Direct G Rs 2,500
18. SBI Equity Hybrid Regular Growth Rs 5,000
19. SBI Focused Direct Plan Rs 3,000
20 SBI Multi Asset Fund Direct Growth Rs 2,000

Omkeshwar Singh: You may continue with 1, 2, 3, 4, 7, 16 and 20.

 

Ajay: I am investing Rs 6,000 per month in Nippon Small Cap Fund Growth, DSP Tax Saver Fund, SBI Healthcare Opportunities Fund Growth and Tata Equities P/E Fund Growth since the last three years. Will it help me reach Rs 1 crore by 2025?

Omkeshwar Singh: The funds are fine. To reach a corpus of Rs 1 crore in seven years, the required monthly investment has to be nearly Rs 75,000 per month.

 

Kartik Xalxo: I am Kartik Xalxo, 40 years old and I am looking to invest 16k every month (4k per SIP) with a horizon of 10 years.

Currently, I am investing in the following funds. I started just three months ago. Kindly suggest if I should continue or change anything.

SBI Small Cap (G) Rs 3,000
Tata Digital India Fund (G) Rs 3,000
PGIM India Midcap Opportunities Fund (G) Rs 3,000
PGIM India Global Equity Opportunities Fund (G) Rs 3,000

Omkeshwar Singh: Please continue.

 

Alok Sharma: I am 35 years old and currently investing Rs 16K in different MFs as below.

I started my investment one year ago and want to invest for 15 more years.

The above funds are all invested for 5-6 years currently. Shall I increase the amount in any of the funds? Shall I include any other fund or remove any? Shall I consider any debt fund?

Aditya Birla (Tax Saver) Rs 2,000
Axis Long Term Equity (Tax Saver) Rs 3,000
Axis Bluechip Rs 1,500
Axis Midcap Rs 1,500
Mirae Asset Emerging Bluechip Rs 3,000
Parag Parikh Flexicap Rs 3,000
Nippon India Index Fund Sensex Plan Rs 2,000

 

Omkeshwar Singh: Please continue. These are good funds. There's no need to make any changes.

 


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