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'Am I too aggressive with my SIPs?'

By NIKUNJ SARAF
December 01, 2022 09:02 IST
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Please mail your questions to getahead@rediff.co.in with the subject line, Ask Nikunj, along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answer your queries.

 

Kesav Kumar: I'm 34 years old. I would like to invest in sip up to 5000/month. So kindly suggest me which is the best sip plan forme.

Nikunj Saraf: Hello Kesav. I would suggest to refer below mentioned for your portfolio: 

  • Nippon India Large Cap Fund
  • ICICI Pru Large & Mid Fund
  • PGIM India Flexi cap Fund

JAYANT RAHUL: I am 31yrs old working in a PSU. I've been investing in MFs for about 4 yrs and have already accumulated 9.5 lakh thru them. My SIP investments in MFs are as follows:

1. IDFC nifty 50 Index fund - 3k

2. Quant active fund- 2k

3. Quant small cap fund- 3k

4. Mirae asset emerging bluechip fund- 2k

5. Axis bluechip fund- 2k

6. SBI small cap fund- 2k

All the investments are direct and growth type in nature. Also I plan to increase my investments by 5-10% every year.

My questions are as follows:

1. I want to create a corpus of about 10 crores during my retirement ie 60yrs of age. Is my investment sufficient?

2. Is my asset allocation balanced, meaning covering all sectors and all caps?

3. Do I need to invest in any other type of investment funds/schemes?

Nikunj Saraf: Hi JAYANT RAHUL. No modification is required in terms of MF investment Amount. Your goal will be achieved with your current investments amount in MF. Although the selected schemes are aligned with the market, I would suggest to reconsider Axis Bluechip Fund and introduce mid-cap and flexi-cap funds in your portfolio.

Yash Gupta: My age is 26 and I started investing in MFs from the previous month. And here is my portfolio:

Goal Duration(Years) Type of Investment Investment Scheme Amount
Retirement 30 Mutual Fund (ELSS) Quant Tax Plan Direct Growth 10000
For Child Education 10 Mutual Fund (Flexi Fund) PGIM India Flexi Cap Fund 5000
For House Purchase 10 Mutual Fund (Flexi Fund) Parag Parikh Flexi Cap Fund 15000
For Car/Vacations/Any Other 5 Mutual Fund (Mid Cap) PGIM India Midcap Opportunities Fund 5000

Can you please help in suggesting if I am being too aggressive risk taker by investing these huge chunks of money on a monthly basis in the above portfolio or should I choose other MFs instead of the above given MFs? Should I invest in other categories also? The time duration that I decided is fair long enough or I should extend these time boundaries a/c to given goals? Being 26, my risk appetite is moderate.

Nikunj Saraf: Hi Yash Gupta. It seems you have done thorough research with current market. I would recommend you reconsider your sips in Parag Parikh Flexi cap Fund for house purchase. As the time horizon is long you may refer Small cap category or large & mid cap category.

Geetesh Indolia: I want invest Rs 10000 and my aim is to earn around Rs10,000,000.

Is it possible if so then How?

Where I need to invest my money?

Your valuable guidance is highly appreciated.

Nikunj Saraf: Hello Geetesh Indolia. In response to your concern, I would suggest clarifying your vision for investment. Due to the fact that your time horizon is not mentioned. I am assuming the goal is for 15 years with 15% CAGR; you can invest 1.5 lakh monthly. In 33 years, you will be able to achieve the 10 Cr goal if you proceed with a 10k sip. Also, you may consider multi-cap, mid-cap and small-cap categories for your portfolio.

Jitendra Sharma: Saw your article with Q & A for SIP. I am a retired army veteran. I have no investment in MF as yet. All investments are in FDs only. I have liquidity of approx 50 L plus in FDs. I am 51 years old. Can you please advise how to start investment? My risk appetite is low. I am also earning 1 lac pension every month. 

My goals:

A.Daughters higher education-12 years now 

B. Son is 21 years but unemployed and still studying.

C. Daughters marriage in next 13 - 15 years

D. Foreign travel for self and family once every year. 

E. Passive income in next 5-10 years 

Nikunj Saraf: Hi Jitendra. Considering your existing concerns and multiple requirements, I would recommend investing 50 lakh using STP mode instead of lump sum.

If you invest 10-20k as a monthly sip after your monthly expenses, in 10 years you will have a corpus of 26-50 lakh with a CAGR of 14%. To achieve your financial goals, you can also invest (SIP & lump sum) in the schemes below.

  • Nippon India Large Cap Fund
  • ICICI Pru Value Discovery Fund
  • Canara Robeco Flexi cap Fund
  • Quant Absolute Fund
  • HDFC Balanced Advantage Fund

Rajeskh Diddi: I am planning to invest Rs 500 in mutual funds on monthly basis through SIPs for long term investment. Suggest the best mutual fund that provides high returns irrespective of market risk.

Nikunj Saraf: Hello Rajeskh Diddi. You may consider ICICI Pru Bluechip Fund and Nippon India Growth Fund for long run sip.

Anup Banerjee: I need suggestions: My requirement is 75 lakh after 10 years. My age is 50. Which sip should I choose, what amount and how long?

Nikunj Saraf: Hi Anup Banerjee. To achieve a corpus of Rs.75 lakh after 10 years, you may start sip of 29K on monthly basis. The time horizon for sip will be 10 years and you may consider large cap, large & mid cap, mid cap and multi cap categories in your portfolio.

Saravanan: I'm 35 years old I had started my mutual fund journey a couple of years ago. CURRENT INVESTMENT:

Parag Parikh 5,000

UTI FLEXI Cap 5000

Navi nifty index fund 5000

I would like to increase my SIP investment for an additional amount of 35,000/- (total 50k). Please suggest few more options. I would like to build a corpus fund for my child's education 15 years from now and for my retirement.

Nikunj Saraf: Hi Saravanan. Looking with current portfolio, I would suggest you to reconsider Parag Parikh AMC. With your multiple goals to be achieved in next 15 years, you may consider the below schemes for your portfolio.

  • Nippon India Large Cap Fund
  • ICICI Pru Large & Mid cap Fund
  • Quant Flexi cap Fund
  • Mirae Asset Mid Cap Fund

You can read more of Mr Saraf's answers here


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