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'MFs better for wealth creation than insurance products'

By OMKESHWAR SINGH
August 31, 2020 12:39 IST
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'Insurance products should be used for protection and not investment.'
'A term insurance plan and investment via Mutual Funds are better for wealth creation compared to investment via insurance products.'

Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:

Illustration: Dominic Xavier/Rediff.com

Noorulla Hussaini: I have invested in the following funds since 3 years and need your expert advice on the path forward.

SIP of 20,000 with mentioned percentage breakdown

Product name: Bajaj Allianz Life Goal Assure

Funds:

1. Pure Stock Fund (59.36%)

2. Pure Stock Fund II (30.73%)

3. Asset Allocation Fund II (9.91%)

I wish to exit from the mentioned fund but there is a lock-in period of 5 years and I don't have any other option but to continue.

The following funds are on offer to choose for anytime switching:

Equity growth fund 2, accelerator mid cap fund 2, bond fund, liquid fund, blue chip equity fund

Lump sum of 2L in SBI Blue Chip Fund - Regular Plan – Growth.

Please guide.

Omkeshwar Singh: Insurance products should be used for protection and not investment. A term insurance plan and investment via Mutual Funds are better for wealth creation compared to investment via insurance products.

Reshma Surve: I have invested in following mutual funds since last 3-4 years. I can wait for more than 6-7 years. 

Omkeshwar Singh:

Name of the Fund Category Recommendations
1)  Aditya Birla Sun Life Focused Equity Fund: Rs.3,000/- Equity - Focused Fund Switch to Axis Focused 25
2)   DSP Mid Cap Fund: Rs.2,000/- Equity - Mid Cap Fund Continue
3)  DSP Natural Resources and New Energy Fund: Rs.3,000/-  Equity - Sectoral Fund - Energy & Power Switch to Axis ESG Equity
4)  HDFC Mid-cap Opportunities Fund: Rs.2,000/- Equity - Mid Cap Fund Switch to DSP Mid Cap
5)  L&T Infrastructure Fund: Rs.3,000/- Equity - Sectoral Fund - Infrastructure Switch to Axis ESG Equity
6)  Motilal Oswal Multicap 35 Fund: Rs.3,000/- Equity - Multi Cap Fund Switch to UTI Equity Fund
7)  Nippon India Growth Fund: Rs.2,000/- Equity - Mid Cap Fund Switch to DSP Mid Cap

Harish H: Need your advice and suggestions on the below mentioned funds and the amount each month. Should I continue or switch? If I have to switch what are the mutual funds you suggest?

Currently investing in the following for nearly 2 years now but unfortunately none of the funds seem to be performing or giving any return. In fact few funds are in Red now with negative returns.

Omkeshwar Singh:

  MFs Category Recommendations
1. SBI Small cap fund (G). 5000. Monthly SIP Equity - Small cap Fund Continue
2. Axis Small cap Fund (G). 5000. Monthly SIP Equity - Small cap Fund Continue
3. Aditya birla SL Frontline Equity Fund (G). 4000. Monthly SIP Equity - Large Cap Fund Switch to Axis Bluechip
4. Aditya Birl SL Tax Relief 96 (G). 5000. Monthly SIP Equity - ELSS Continue
5. SBI Bluechip fund (G). 4000. Monthly SIP Equity - Large Cap Fund SWitch to Axis Bluechip
6. ICICI PRU Multi asset fund . 4000. Monthly SIP Hybrid - Multi Asset Allocation Switch to SBI Multi Assets
7. HDFC Mid cap opportunities fund (G). 5000. Monthly SIP Equity - Mid Cap Fund Switch to DSP Mid Cap
8. Sundaram Mid cap Fund (G). 4000. Monthly SIP Equity - Mid Cap Fund Switch to DSP Mid Cap
9. Invesco India Dynamic equity fund. 2000. Monthly SIP Hybrid - Dynamic Asset Allocation Switch Edelweiss Balanced Advantage
10. Axis BLUE Chip fund. 5000. Monthly SIP Equity - Large Cap Fund Continue

Ankit Chudawala: I am married 31. Please can you advise me on my below SIPs which I invest.

ICICI Equity and Debt Direct Growth - Rs. 2000

Motilal Oswal multicap 35 direct growth - Rs. 2000

IDFC Tax Advantage Direct Growth- Rs. 5000

L&T emerging businesses fund direct growth- Rs. 2000

I am also thinking to invest in Axis Blue-chip Fund direct growth.

Please let me know if I can stay invested in all above funds or do I need to switch to another. My investment horizon is for more than 5 years.

Omkeshwar Singh:

Name of the Fund Category Recommendations
ICICI Equity and Debt Direct Growth - Rs. 2000 Hybrid - Aggressive Hybrid Fund Switch to Canara Robeco Equity Hybrid
Motilal Oswal multicap 35 direct growth - Rs. 2000 Equity - Multi Cap Fund Switch to Axis Long term Equity
IDFC Tax Advantage Direct Growth- Rs. 5000 Equity - ELSS Switch to UTI Equity Fund
L&T emerging businesses fund direct growth- Rs. 2000 Equity - Small cap Fund Switch to Axis Small Cap
Axis Blue-chip Fund direct growth Equity - Large Cap Fund Start Investing

Ajit A: Hope you are doing well. My query is I have invested in Franklin Templeton India Opportunities Fund and Franklin Templeton Smaller Companies Fund for more than 3 years now. But, I haven't seen growth in NAV. Not sure if I should continue my investment there or pull out from there and invest elsewhere. If yes, which are the other funds you suggest for a long term investment. Thanks in advance.

Omkeshwar Singh:

Name of the Fund Category Recommendations
Franklin Templeton India Opportunities Fund Equity - Thematic Fund - Other Switch to Axis ESG Equity
Franklin Templeton Smaller Companies Fund Equity - Small cap Fund Switch to Axis Small Cap

Ather Masood: Greetings! I have the following on going SIPs. Kindly advise me if I should continue or switch.

1) Axis BluechipFund-Large Cap-Lumpsum 100000

2) Kodak Focused Equity Fund-Focused-Lumpsum 200000

3) Kodak Stanadard MultiCap Fund-MultiCap-Every Month 10000, investing past 15 months and planned to invest for next 5 years.

4) L&T Emerging Business Fund- SmallCap-Every month 2000, investing past 15 months and planned to invest for next 5 years.

5) SBI SmallCap Fund SmallFund-every month 2000, investing past 15 months and planned to invest for next 5 years.

Thanks a lot in advance for your valuable advice.

Omkeshwar Singh:

Name of the Fund Category Recommendations
Axis Bluechip Fund-Large Cap Equity - Large Cap Fund Continue
Kotak Focused Equity Fund-Focused Equity - Focused Fund Switch to Axis Focused 25
Kotak Stanadard MultiCap Fund-MultiCap Equity - Multi Cap Fund Switch to UTI Equity Fund
L&T Emerging Business Fund- SmallCap Equity - Small cap Fund Switch to Axis Small Cap
SBI SmallCap Fund Equity - Small cap Fund Continue

Aman Tomar: I am investing in below mutual funds through SIPs from the last 2 years. Results are not as expected. Could you please advice on the best available options?

Omkeshwar Singh:

Name of the Fund Category Recommendations
1. Mirae Asset Emerging Bluechip Fund Direct- Growth: Rs 3500/month Equity - Large & Mid Cap Fund Continue
2. Motilal Oswal Multicap 35 Fund Direct-Growth: Rs 3000/month Equity - Multi Cap Fund Switch to UTI Equity Fund
3. L&T Midcap Fund Direct- Growth: Rs 1500/month Equity - Mid Cap Fund Switch to DSP Mid Cap
4. SBI Bluechip Direct Plan- Growth: Rs 2000/month Equity - Large Cap Fund Switch to Axis Bluechip
5. Aditya Birla Sun Life India GenNext Direct Fund- Growth: Rs 2500/month Equity - Thematic Fund - Other Switch to Axis ESG Equity
6. ICICI Prudential Equity & Debt Fund Direct-Growth: Rs 1500/month Hybrid - Aggressive Hybrid Fund Switch to Canara Robeco Equity Hybrid

Kaustubh Deodhar: I have following SIPs. Pls guide whether to increase / continue / hold or exist of Rs. 1000 each.

Omkeshwar Singh:

Name of the Fund Category Recommendations
1. Quantum Long Term Equity - 7 years Equity - Value Fund Switch to UTI Value
2. Frankiln India Prima Fund - 5 years Equity - Mid Cap Fund Switch to DSP Mid Cap
3. ICICI Blue chip - 5 years Equity - Large Cap Fund Switch to Axis Bluechip
4. L&T Emerging Blue Chip - 5 years (Business) Equity - Small cap Fund Switch to Axis Small Cap
5. HDFC hybrid Equity - 5 years Hybrid - Aggressive Hybrid Fund Switch to Canara Robeco Equity Hybrid

Cedric Thomas: I have the following SIPs every month in Mutual Funds:

Omkeshwar Singh:

Name of the Fund Category Recommendations
SBI Arbitrage Opportunities Fund- Regeular Plan- Growth Hybrid - Arbitrage Fund Continue
DSP Savings Fund -Regular Plan -Growth Debt - Money Market Fund Continue
Mirae Asset Emerging Bluechip Fund-Regular Plan Growth Equity - Large & Mid Cap Fund Continue
Axis Bluechip Fund- Regular Growth Equity - Large Cap Fund Continue
Aditya Birla Sun Life Savings Fund- Growth -Regular Plan (Debt) Debt - Ultra Short Duration Fund Continue
HDFC Balanced Advantage Fund- Regular Plan -Growth (Hybrid) Hybrid - Balanced Advantage Switch to ICICI Prudential Balanced Advantage
ICICI Prudential Balanced Advantage Fund-Growth (Hybrid) Hybrid - Balanced Advantage Continue

Aarav Thamake: I have SIPs in following Mutual Funds as per details below: Are they good to hold? I have been investing in them since long but don't see any profit till now.

Name of the Fund Category Recommendations
SBI Magnum MidCap Fund - Regular Plan - Growth Equity - Mid Cap Fund Switch to DSP Mid Cap
UTI Transportation & Logistics Fund - Regular Growth Plan Equity - Sectoral Fund - Auto Switch to UTI Equity Fund

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, Mutual Fund Query, 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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