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'MF Guru, I know I messed a bit'

By OMKESHWAR SINGH
November 04, 2022 08:54 IST
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Do you have mutual fund queries?

MF guru

Illustration: Dominic Xavier/Rediff.com

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

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.

 

Gaurav Khosla: I read about this service called "Ask MF Guru" in an article online. I wanted you to please review my existing portfolio & help me design it better to achieve my goals listed below.

I do realise that my portfolio is not diversified amongst asset classes. I want to start investing in Gold (SGB) on a regular basis.

I am 38year old & my risk profile is "High" for another 10 years.

Please suggest what amendments I should make & how much more I should invest to achieve my targets.

Goals:-
Expenses Time yrs Amount
Higher Education for Daughter (she is 2) 15 75,00,000
Marriage of Daughter 23 1,00,00,000
Retirement (Myself) 22 25,00,00,000

My current investments & savings:

  Current Investments Monthly Current Value Remarks
1 Axis Long Term Equity Fund (ELSS) (R.) 5,000 1,53,000 SIP ongoing
Mirae Assets Tax Saver Fund (ELSS) (R.) 7,500 3,22,000 SIP ongoing
Quant Active Fund (Flexi Cap) (D.) 5,000 35,000 SIP ongoing
Axis Small Cap Fund Direct-Growth (D.) 5,000 25,000 SIP ongoing
Parag Parikh Flexi Cap Fund (D.) 5,000 20,000 SIP ongoing
PGIM India Flexi Cap Fund (D.) 5,000 24,000 SIP ongoing
Quant Active Fund (Small Cap) (D.) 5,000 23,000 SIP ongoing
Axis Flexi Cap Fund (R.) 2,500 88,000 SIP ongoing
Quant Tax Fund (ELSS) (D.) 3,000 8,000 SIP ongoing
ICICI Prudential Long Term Equity Fund (ELSS) (R.) 4,000 1,87,000 SIP ongoing
Franklin India Focused Equity (R.) - 2,75,000 SIP Closed
2 NPS 5,000 75,000 SIP on going
3 EPF (Employee Contribution) 8,000 13,00,000 On going
4 FD - 2,50,000 On going
5 Stocks 20,000 15,00,000 On going
6 Cash flow for Emergency - 5,00,000 On going
  Total 80,000 47,85,000  

I appreciate your support, thank you.

Omkeshwar Singh: Kindly assign different funds for different goals.

Goal 1: Rs. 75 lakh in 15 years would require monthly investment of Rs. 12500 /-

Goal 2: Rs. 1 cr in 23 years would require a monthly investment of Rs. 5000 /-

Goal 3: Rs. 25 crs in 22 years would require a monthly investment of Rs. 1,40,000 /-

Inderpreet Singh Sethi: I am 38 and my wife is 37 years of age. We both combined earn close to Rs 1.50 lakh. I recently got to know about you. We have been investing in mutual funds since 2019, started with initial investment of Rs 7k which slowly and gradually now stand Es 21k monthly. I would like to know / understand your views on active SIPs.

Below are my goals. 

Elder son’s study Rs 80 lakh to 1.20 cr year by 2034-35. Current age 7

Younger son’s study rs 1cr to 1.5 cr year by 2037-2038. Current age 3

Marriage of both sons Rs 1.20 cr b/w year 2039-2042

Retirement corpus of Rs 7.5 cr to 9 cr at the age 58.

Combined SIP portfolio:

Aditya birla sun life tax relief fund Rs 2000 Dec'18.

Kotak flexi cap fund Rs 3000 Dec'18.

Nippon india equity hybrid fund Rs 2000 Dec'18.

Edelweiss balanced advantage Rs 2000 Aug'20

Invesco India Tax Plan Rs 1000 Aug'20

Axis blue-chip fund Rs 1000 Sep'20

Tata Flexi cap fund Rs 1000 Sep'20

Axis blue-chip fund Rs 2000 Apr'21

Edelweiss small cap fund Rs 1000 Apr'21

HSBC Focused Fund Rs 2000 May'22

Nippon India US equity opportunities Rs 1000 Sep'22

NJ balanced advantage fund Rs 3000 Dec'21

NIPPON India Flexi cap fund one time investment of Rs 20k

Apart from above mentioned SIPs I have few more investments eq. NSC ( investment value Rs 2.4 lakh) low ROI since couple of years, NPS, LIC, PPF, PF, and have stated adding few stock since last 2 months Current standing is Rs 30k with Loss of Rs 2k. 

Liabilities: Have taken home loan of Rs 42 lakh last month and emi of Rs 38k will be paid jointly. (60% me and 40% brother).

Request you to review and share your valuable feedback 

Omkeshwar Singh: Goal 1 - 1 crs in 13 years, monthly investment required is Rs. 22500 /-

Goal 2 – 1.25 crs in 16 years, monthly investment required is Rs. 17,500 /-

Goal 3 - 1.20 crs in 20 years, monthly investment required is Rs. 9,000/-

Goal 4 – 8.25 crs in 20 years, monthly investment required is Rs. 62,500

KASHYAP PATEL: I have not invested in mutual funds yet, but I will be able to invest 10000rs per month, I am 42 years old and I want lump sum amount 1 cr at the age of my retirement. Please suggest me the list of mutual funds.

Omkeshwar Singh: The funds that can be considered are as under

Uti Flexi Cap Fund-regular -growth

Axis Esg Equity Fund -Growth

Kotak Business Cycle Fund-growth

Samco Flexi Cap Fund - Growth

Rs. 1 crs in 18 years can be created with a monthly investment of Rs. 11000

Sanjay Pai: My goal is long term 15 years and building wealth. I am 46 and have a medium to high risk profile. I Invest 3k to 5k in the following funds. Somewhere I have lost track and increased my portfolio and started investing in multiple funds (Direct and Regular). This was mainly due to switch between different fund houses. I know I messed a bit.

Let me know to exit / rebalance. All funds started in 2016. Separately I have around 10L in debt funds.

SIP and fund name - Direct MF

1. Nippon India large cap fund - 3k

2. L&T value fund growth - 3k

3. ICICI prudential bluechip - 3k

4. Mirae asset emerging blue chip - 5k

5. Axis long term equity - 3k

6. Motilal Oswal 25 fund - 3k

7. HDFC gold direct - 3k

8. ICICI prudential Pharma - 3k

9. Axis small cap growth - 5k

10. ICICI prudential US bluechip eq- 3k

11. ICICI prudential flexi cap - 3k

12. Nippon India Taiwan - 3k

13. HDFC hybrid - 5L no SIP.

Omkeshwar Singh: Continue with 4, 5, 6, 9 and 10

Regular funds:

1. Invesco India growth opportunities - 3k

2. Mirae asset large cap - 3k

3. Axis bluechip fund - 3k

4. DSP small cap - 3k

5. Sbi bluechip - 3k

6. DSP focus - 2k

7. DSP tax saver - 3k

8. HDFC index - 5k

9. Mirae asset emerging- 3k

10. ICICI prudential bluechip- 3k

11. Kotak flexicap - 2k

Omkeshwar Singh: Continue with 2, 6, 8, and 9

Dr Sunil Kumar: I am working as Assistant Professor in a reputed College of Punjab and my age is going to be 45 in November but I have not invested in Mutual Funds till date. Now, I am interested in going for a SIP of Rs 5,000 p.m. Please suggest to me the best company to do the same which gives me best return with less risk.

Omkeshwar Singh: Short term debt funds give above FD returns with less risk, all of the equity schemes are high to very high risk.

Couple of funds for shorter duration are:

1. Aditya Birla Short term fund – Growth

2. HDFC short term fund growth

Md Atheeq T: 38y, I am investing in following SIPs for the past two years and would like to have 3 Crore corpus for my retirement. I have initiated quite a few SIPs which I want to close and invest in limited as per your guidance. Kindly guide me the best funds for my requirement, thanks.

SIPs Current Value Per month investment
Aditya Birla Sun Life Digital India Fund - G 30000 2000
AXIS MID CAP FUND - REGULAR - G 16000 2000
Axis Midcap Fund - Growth 8000 1000
BOI AXA MANUFACTURING & INFRASTRUCTURE FUND - DIRECT PLAN - G 32000 2000
DSP NATURAL RESOURCES AND NEW ENERGY FUND - REDULAR - G 9000 1000
ICICI PRUDENTIAL TECHNOLOGY FUND - DIRECT - G 30000 2000
INVESCO INDIA INFRASTRUCTURE FUND - DIRECT - G 20000 2000
KOTAK EMERGING EQUITY FUND - DIRECT - G 20000 2000
KOTAK SMALL CAP FUND - G 15000 1000
Mirae Asset Emerging Bluechip Fund - Growth 8000 1000
MIRAE ASSET HEALTHCARE FUND - REGULAR - G 18000 2000
PGIM INDIA MIDCAP OPPORTUNITIES FUND - G 52000 3000
QUANT SMALLCAP FUND - REGULAR - G 8000 2000
TATA DIGITAL INDIA FUND REGULAR - G 30000 2000
TATA ETHICAL FUND REGULAR PLAN - G 29000 2000
TATA RESOURCES & ENERGY FUND REGULAR PLAN - G 22000 1000
TAURUS ETHICAL FUND REGULAR - G 22000 1000
UTI MID CAP FUND - DIRECT - G 11000 1000

TOTAL MONTHLY INVESTMENT I AM DOING IS Rs30000. PLS GUIDE.

Omkeshwar Singh: Rs. 30000 monthly invest will create a corpus of Rs. 3.9 crs in 20 years

Continue with 8, 9, 10, 12, 13 and 14

Manav: I have been following your articles rigorously and I would highly appreciate it if you can provide your valuable feedback.

I am 30 years of age and my monthly compensation is 2L. I have recently started investing in MF. I don't have any loan/EMI and my ongoing SIP is Rs 60,000.

I have an appetite for moderate-high risk. 

Further, I have savings of 15L which I want to invest in a lump sum and need a substantial return in the next 3-5 years with low-moderate risk

Below is my portfolio: 

Parag Parikh Flexi Cap -- 25k

Canara Robecco bluechip equity -- 15k

Quant Tax Plan -- 5k

Quant Active Fund -- 10k

Canara Robeco Small Cap -- 5k


Kindly advise whether to hold, redeem or change with new funds. Thanks.

Omkeshwar Singh: Please continue; funds are good. The lump sum of Rs. 15 lakh can be invested in short duration funds 0f Aditya birla and HDFC mutual fund.

Rahul R: I'm 35 years old. I'm planning to retire by the age of 45-48 as I'm into software development industry. 

I want to invest a lump sum amount approx 50 lakh for the long term (12-15 years) now. Could you possibly provide your best investment advise?

Or, if you want to suggest investments in MFs then please advise the name and allocation. Thank you very much!

Omkeshwar Singh: Do a STP in below funds in equal proportion (time frame 12 months)

PPFAS Flexi Cap Fund -growth

Axis Esg Equity Fund -Growth

Kotak Business Cycle Fund-growth

Samco Flexi Cap Fund - Growth

Mahesh Sudula: Age 27yr. Started SIP this month as below. Please comment your opinion sir. 

Avoided small cap, due to volatile factor and current inflation /macro environment

Total SIP amount: 16k

Canara robeco equity tax saver direct growth: 4k 

Canara robeco bluechip equity fund DG: 4k

Pgim india midcap oppurtunities fund DG: 2k

Axis midcap direct plan-growth: 2.5k

Parag parikh flexi cap fund direct growth: 3.5 k

Omkeshwar Singh: These are good funds; please continue

Priya Gaba: I am 34 and I have just started in Investing MF.

Could you please confirm if the selection of funds and allocation is good? If not, kindly suggest other funds.

  • SBI Small Cap Fund - 5000
  • Parag Parikh flexicap Direct Growth- 5000
  • ICICI prudential technology direct plan- 10000

Omkeshwar Singh: These are fine; please continue

Read more of Omkeshwar Singh's responses here.


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