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Rediff.com  » Getahead » MF GURU: 'Want to invest Rs 2.5 lakhs'

MF GURU: 'Want to invest Rs 2.5 lakhs'

By OMKESHWAR SINGH
December 07, 2021 08:54 IST
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'Please suggest if I should divide it between more than 1 or 2 MFs.'

Illustration: Dominic Xavier/Rediff.com

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


Mervin Lobo: I am 46 years old and am planning to invest in some mutual funds which can give good returns in 5-6 years.

I am looking to invest Rs 2.5 lakh lump sum.

Please suggest if I should divide it between more than 1 or 2 MFs.

Also, since the market is high at the moment, is it the right time to invest lump sum now?

Omkeshwar Singh: Please avoid lump sum; instead, stagger it in 12 months via SIP or STP.

These funds can be considered

  1. Axis ESG Equity Fund (Growth)
  2. Parag Parikh Flexi Cap Fund (Growth)
  3. SBI Magnum Global Fund (Growth)
  4. DSP Quant Fund (Growth)

 

Praneeth Sai: I'm new to investing and I want to begin with SIPs in mutual funds for one year with the below portfolio. Kindly suggest any changes/suggestions.

Company No of units
Kotak Small Cap Fund 6,500
Quant Active Fund (Direct, Growth) 3,500

Omkeshwar Singh: Please continue.

 

Kranthi Kumar Chinnala: Below is my portfolio.

My age is 27. I plan to invest long term, but still want to have about 25 per cent available for easy withdrawals.

Request your inputs. Also, request your suggestion on my investments on sectoral and foreign funds.

Monthly SIPs

Company No of units
Mirae Tax Saver 4,000
Quant Tax Plan 4,000
Edelweiss Balanced Advantage 4,000
Axis Small Cap 2,000
Mirae Emerging Blue Chip 3,000
ICICI Technology Direct 1,000
Nippon Pharma Fund 1,000
ICICI Commodities Fund 1,000
Motilal NASDAQ 100 FOF 2,000
Edelweiss Greater China Equity 1,000

Any other equity plan you would suggest to further diversity?

I have also made a lump sum investment in the following debt funds.

Company No of units
Aditya Birla Corporate Bond 1,00,000
HDFC Credit Risk Debt Fund 50,000
ICICI Short Term Fund 25,000

Should I invest more in debt? Are there better debt plans?

Omkeshwar Singh: No further diversification is required in your first set of funds; please continue.

As far as debt funds are concerned, presently, returns are lower due to the prevailing interest rates. Therefore, depending upon your objective and risk appetite, the same may be evaluated.

 

Mithun Chari: Hi Sir, your expert opinion is needed if the below funds are good to be continued.

I have a monthly SIP in

Company No of units
Axis Midcap 10,000
Quantum Tax Saving 10,000
SBI Small Cap 15,000
Axis Bluechip 20,000
Canara Robeco Equity Hybrid 20,000
Motilal Oswal Nasdaq 100 Fund of Fund 10,000

Omkeshwar Singh: Please continue, no need to change.

 

Pan Dava: I am looking to park my money for the short term (say six months to a year).

I want to keep this money out of equity and perhaps in the debt sector, thus reducing my exposure to the all-time high markets (in case of a market crash).

I am looking for some MFs which would pay more than a liquid fund but at the same time not lose money.

I parked my money in Axis Short Term Fund and ICICI Prudential Short Term Fund to try them out (between June 6 to July 2, 2021), both of which decreased in value.

I have two queries please and would really appreciate your advice.

1. How do short term funds lose NAV if they are investing in debt securities? I perhaps am not understanding how they work.

2. Any advice on a suitable mutual fund which will meet my objectives. I understand this will be pure advice and I will invest on my own risk.

Omkeshwar Singh: Short-term debt funds have moderate risks; ie, apart from interest risk, there is credit risk and liquidity risks and hence there can be fluctuation in the NAVs.

Further, the interest rate risk comes from the fund's portfolio and that may change depending upon the instruments the scheme is holding, entering or exiting.

For six months to a year, you may consider ultra-short-term funds with a moderately low risk.

 

Sanjay Malhotra: I am 55 years old, from the army. I get pension of Rs 90,000. Med facility is available post retirement.

I have my own house.

I need to invest 2 cr of retirement corpus.

I have one son, employed, aged 25.

Goals:

1. Require Rs 40 lakhs after 3 yrs.

2. Require Rs another 40 lakhs after 6 yrs

I am looking at wealth creation with moderate risk @ 11% post tax returns. Please suggest investment philosophy and MF options available.

I have Rs 35 lakhs invested in equity. However, I don't hold any MFs.

I have invested Rs 24 lakhs in Senior Citizens Savings Scheme and Post Office Monthly Income Scheme.

Omkeshwar Singh: It's difficult to generate 11 per cent post tax returns with moderate risk.

 

Anil Agnihotri: As of now, I have an investment of Rs 1,00,000 in Aditya Birla Front Line Equity and I want to change the fund as it is not performing as well.

Do you suggest a mid/flexi cap or an international fund option with AB mutual fund family or I should redeem and start an SIP in some other fund with a very high growth potential?

Omkeshwar Singh: You may consider from these funds:

  1. ICICI Prudential Us Bluechip Equity Fund (Growth)
  2. Parag Parikh Flexi Cap Fund (Growth)
  3. SBI Magnum Global Fund (Growth)

 

Subodh Sarvaiya: I want to start fresh with mutual fund investments.

Can you please guide me as to which mutual funds should I buy and of which company and category?

I am more interested in a one time investment and can consider a few for SIP. Does SIP have any end time defined or I can stop any time?

I want to invest around Rs 2 lakhs to start with.

Please let me know which should be bought and how.

I don't want to go via brokers as much as possible to avoid their fees but it doesn't harm me if it benefits in some way. 

Omkeshwar Singh: You may consider a few funds from below:

  1. Axis ESG Equity Fund (Growth)
  2. DSP Focus Fund (Growth)
  3. ICICI Prudential US Bluechip Equity Fund (Growth)
  4. Parag Parikh Flexi Cap Fund (Growth)
  5. SBI Magnum Global Fund (Growth)
  6. DSP Quant Fund (Growth)

 A one-time investment at the present level is not advisable; it's better to do SIP or STP.

You may stop the SIP anytime.

It's better to take the services of mutual funds distributor if doing it yourself is not possible. 


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