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MFs you must exit, hold or buy

By Omkeshwar Singh
Last updated on: January 17, 2020 14:53 IST

Wondering if you did the right thing with your mutual fund investments?

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

 

If you want his 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 Omkeshwar will offer his unbiased views.

Mutual Fund

Here are Omkeshwar Singh's recommendations: As a general rule to investing, you may continue with 4- and 5-star rated funds, while the rest may need a re-look.


Amitava Chakraborty: I am a retired employee of a CPSU. I invested about Rs 30 lakh in SBI Mutual Fund, "L24 SBI Equity Hybrid Fund Regular Dividend" scheme in 2018, March with a provision of quarterly return. The first quarterly return was ok, about Rs 90,000. But subsequent quarterly returns diminished substantially and then stopped altogether. I was thus forced to withdraw part of the investment and re-invested the fund elsewhere. Please, can you tell me the reason for this dismal performance of SBI Mutual Fund? Also please advise me on some other Mutual Funds for investment. 

Name of the Fund Category Rank MF Star Rating
SBI Equity Hybrid Fund Regular Dividend    
Dividend Payout Hybrid - Aggressive Hybrid Fund 3
Dividend Reinvestment Hybrid - Aggressive Hybrid Fund 4

Omkeshwar Singh: Sir, the returns of the scheme is as under:

1 Y-15.88%

3Y 12.74%

5Y- 9.84%

Since inception 15.46%

Last 1 year’s returns in question have been fair.

MF for investment:

Hybrid - Aggressive Hybrid Fund: Axis Equity Hybrid Fund - Dividend Pay-out is better option presently


Niraj Kalra: Please advise (exit or further invest) for the following mfs. Please let me know which ones to exit and where to invest more. I want to invest around 5-6 lakh.

Name of the Fund Category RankMF Star Rating
axis bluechip fund Equity - Large Cap Fund 4
mirae asset emrgingbluechip fund Equity - Large & Mid Cap Fund 4
mirae asset large cap fund Equity - Large Cap Fund 5
icicipru value discovery fund Equity - Value Fund 3
icicipru multi asset fund Hybrid - Multi Asset Allocation 4
absf equity fund Equity - Multi Cap Fund 4
axis long term equity fund Equity - ELSS 5
hdfc equity fund Equity - Multi Cap Fund 4
icicipru long term equity fund Equity - ELSS 3
dsp equity fund Equity - Multi Cap Fund 4
dsp tax saver fund Equity - ELSS 4
hdfc balanced advantage fund Hybrid - Balanced Advantage 4
hdfc hybrid equity fund Hybrid - Aggressive Hybrid Fund 5

Omkeshwar Singh: You may continue with 4 and 5 star rated funds; for 3 star ones you can consider these.

Top 2 Equity value funds are (4-Star rated)

  • Tata Equity PE fund
  • UTI value opportunity funds

ELSS:

  1. Canara Robeco Equity Tax Saver Fund - Growth
  2. Axis Long Term Equity Fund - Growth
  3. Motilal Oswal Long Term Equity Fund – Growth

Siddharth Choudhary: I have been investing for past 5 years and below is the list of investment that I have done so far. Please suggest if I should continue investing in same manner or need to do any changes in the portfolio. Also, I am planning to invest in ICICI Prudential US Bluechip Equity Fund this month. Whether I should do an SIP or lumpsum investment? 

Name of the Fund Category RankMF Star Rating
Lumpsum    
ICICI Prudential Bluechip Fund - Direct Plan - Growth Equity - Large Cap Fund 3
ICICI Prudential Balanced Advantage Fund - Direct Plan - Growth Hybrid - Balanced Advantage 5
ICICI Prudential MNC Fund Direct Plan Growth Equity - Thematic Fund - MNC 4
Mirae Asset Focused Fund - Direct Plan - Growth - Growth Equity - Focused Fund 4
Axis Bluechip Fund - Direct Plan - Growth - Growth Equity - Large Cap Fund 4
Sundaram Equity Fund Equity - Multi Cap Fund 4
SIP    
ICICI Prudential Bluechip Fund Equity - Large Cap Fund 3
ICICI Prudential Balanced Advantage Fund Hybrid - Balanced Advantage 5
SBI Bluechip Fund - Direct Plan Equity - Large Cap Fund 3
Mirae Asset Emerging Bluechip Fund - Direct Plan - Growth Equity - Large & Mid Cap Fund 4

Omkeshwar Singh: You may continue with 4 and 5 Star rated funds; for 3 star ones you can consider the below ones.

Equity - Large Cap Fund:

  • Mirae Asset Large Cap Fund – Growth
  • Axis Bluechip Fund – Growth
  • LIC Largecap Fund – Growth

Shankar: I am a 50 year old professional with more than 2 decades in 2 large Pharma MNCs that I invested in 3 flats (Mumbai, Thane and Chennai) and left with a corpus of 2 crore. Somehow I never heard or seen any proper advice from anyone with regard to investing lumpsum in MFs. Currently the FDs are earning a decent 8.5 per cent per annum and my risk appetite is low.

What is your advice for me to invest in MFs?

Omkeshwar Singh:  We can look at only debt funds: 

  1. Corporate Debt funds have Moderate risk
  2. Banking and PSU debt funds have Moderately low risk
  3. Gilt funds have Moderate risk

Therefore you may consider banking and PSU debt funds

  • HDFC banking and PSU debt funds – Growth
  • DSP banking and PSU debt funds – Growth
  • L&T banking and PSU debt funds – Growth

Rahul R: I am 40 years and investing Rs 10K each monthly MF SIPs in following 2 funds since last 3 years. Need your advice, shall I continue the same or redeem/switch?

Name of the Fund Category RankMF Star Rating
1. ICICI Pru Focus Bluechip Equity - Large Cap Fund 3
2. Franklin India Equity Fund - Growth Equity - Multi Cap Fund 3
1. SBI Focused Equity Fund Equity - Focused Fund 5
2. Axis Focused 25 Fund  Equity - Focused Fund 5
3. Canara Robeco Emerging Equities Fund  Equity - Large & Mid Cap Fund 4
4. Sundaram Select Focus Fund Equity - Focused Fund 4
5. Mirae Asset Emerging Bluechip Fund  Equity - Large & Mid Cap Fund 4
6. Axis Midcap Fund Equity - Mid Cap Fund 4
7. Sundaram Services Fund Equity - Sectoral Fund - Service Industry 4

Omkeshwar Singh: 3 rated schemes need to be reconsidered from the ones below.

Equity - Large Cap Fund:

  • Mirae Asset Large Cap Fund – Growth
  • Axis Bluechip Fund – Growth
  • LIC Largecap Fund – Growth

Multicap: Suitable options considering quality and value for money at present levels are:

  • UTI Equity Fund – Growth
  • Motilal Oswal Multicap 35 – Growth
  • Parag Parikh Long Term Equity Fund - Growth

Debasish Majumder: I am 56 years, presently investing in following ELSS MFs as SIP. I want to know which one should I continue, any other should be introduced or not? For some personal reason, I can't invest in equity MFs at present. 

Name of the Fund Category RankMF Star Rating
Aditya Birla Sun Life Tax Relief 96 Direct Growth Equity - ELSS 4
Axis Long Term Direct Growth Equity - ELSS 5
DSP Tax Savings Direct Growth Equity - ELSS 4
Mirae Asset Tax Saver Direct Growth Equity - ELSS 4

Omkeshwar Singh: All funds seem to be decent and can be continued.


Shailesh Sawant: I am 39 years old. I am investing in following mutual funds:

Name of the Fund Category RankMF Star Rating
1) HDFC Small Cap Fund Equity - Small cap Fund 2
2) Axis Bluechip Fund. Equity - Large Cap Fund 4
1) Tata Digital India Fund Equity - Thematic Fund - Other 5
2) Axis Bluechip Fund Equity - Large Cap Fund 4

Omkeshwar Singh: 4 and 5 star funds can be continued; better small cap options are as under:

Small Cap:

  • Kotak Small Cap fund – growth
  • Axis Small Cap fund -growth

I would like to have your opinion whether I can still continue in these schemes or shift to some other schemes? Also, would like to know the reason for the same. We are investing in the above-mentioned schemes from last one and half year.

Omkeshwar Singh: 4 and 5 star funds can be continued, better small cap options are as under.

Small Cap:

  • Kotak Small Cap fund – Growth
  • Axis Small Cap fund - Growth

Moreover, I am thinking about investing in Gold ETF funds. Is it advisable to invest in gold ETF? If yes then please suggest the best fund in the market.

Omkeshwar Singh: Gold is pretty volatile and presently it is not advisable for investment purpose.


Venkat Sundaram: I am holding following MFs since launch:

Name of the Fund Category RankMF Star Rating
1. Tata Equity Mutual Fund (TEMF) Equity - Value Fund 5
2. SBI Infra MF Equity - Sectoral Fund - Infrastructure 2

Omkeshwar Singh: 5 star fund can be continued and Equity - Sectoral Fund – Infrastructure to be avoided presently.


HARANATH BABU: I HAVE ICICI LONG TERM EQUITY FUND ELSS, SHALL I KEEP IT OR EXIT? KINDLY ADVISE.

Name of the Fund Category RankMF Star Rating
ICICI LONG TERM EQUITY FUND Equity - ELSS 3

Omkeshwar Singh: Better ELSS schemes are available for consideration as under

ELSS:

  1.  Canara Robeco Equity Tax Saver Fund - Growth
  2. Axis Long Term Equity Fund - Growth
  3. Motilal Oswal Long Term Equity Fund – Growth

Vishal Thakar: I am an SIP investor in Mutual Funds from past 3 years and below are my SIP investments per month:

Name of the Fund Category RankMF Star Rating
1) NIPPON INDIA TAX SAVER (ELSS) FUND - GROWTH PLAN Equity - ELSS 2
2) IDBI Equity Advantage Fund - Regular Plan - Growth Equity - ELSS 4
3) ADITYA BIRLA SUN LIFE TAX RELIEF 96 FUND - GROWTH Equity - ELSS 4
4) MOTILAL OSWAL LONG TERM EQUITY FUND - GROWTH Equity - ELSS 5
5) Mirae Asset Emerging Blue chip Fund - Regular Plan Growth Option Equity - Large & Mid Cap Fund 4
6) AXIS BLUECHIP FUND - GROWTH Equity - Large Cap Fund 4
7) SBI BLUECHIP FUND -REGULAR PLAN - GROWTH Equity - Large Cap Fund 3
8) LNT Emerging Business Fund - Regular Plan - Growth Option Equity - Small cap Fund 2
9) SBI SMALL CAP FUND REGULAR GROWTH Equity - Small cap Fund 3
10) MOTILAL OSWAL NASDAQ100 FUND OF FUND - REGULAR GROWTH FoFs (Overseas) 4

Omkeshwar Singh: 4 and 5 star funds can be continued, rest to be reconsidered

ELSS:

  1.  Canara Robeco Equity Tax Saver Fund - Growth
  2. Axis Long Term Equity Fund - Growth
  3. Motilal Oswal Long Term Equity Fund – Growth

Equity - Large Cap Fund:

  • Mirae Asset Large Cap Fund – Growth
  • Axis Bluechip Fund – Growth
  • LIC Largecap Fund – Growth

Small Cap:

  • Kotak Small Cap fund – Growth
  • Axis Small Cap fund - Growth

Omkeshwar Singh, Head, Rank MF, can be reached at omkeshwar@samco.in


Illustration: Dominic Xavier/Rediff.com


Disclaimer: This article is meant for information purpose 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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