Wondering if you did the right thing with your mutual fund investments?
Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, will answer your queries.
If you want his advice on your mutual fund investments, please mail your questions to firstname.lastname@example.org with the subject line, 'Mutual Fund Query', along with your name, and Omkeshwar will offer his unbiased views.
Anirban Chakraborty: I'm new to the mutual fund market and I plan to invest in SIP of IDBI Bank. Please advise me kindly.
Omkeshwar Singh: The scheme category that would be applicable in your case will be banking and PSU schemes. However, at present, all the banking and PSU schemes are not recommended for investment as all of them are 2-star and 1-star schemes.
It is advisable to invest only in top rated equity mutual fund schemes presently, like:
- Motilal Oswal Multi-Cap 35 -- Growth (5-star fund)
- Axis Focused 25 -- Growth (5-star fund)
- UTI Equity Fund Growth -- (5-star fund)
Therefore, your SIP can be started in one of these mutual fund schemes or you can create a basket of these three funds with 33 per cent weightage assigned to each scheme.
Navin Shetty: I am a Senior Citizen (70) with an annual income of about Rs 7-8 lakh. I don't have any financial commitments as my children are well settled and living their lives with their families. I stay with my wife (64) in our own house. We have adequate arrangements to take care of our medical needs/emergencies.
Request you to suggest some good mutual funds to invest money which we expect soon from maturing of our bank FDs. The present bank FD rates are not encouraging for us.
Thanking you in anticipation.
Omkeshwar Singh: Dear Sir, A few 5-star rated schemes are:
- Aditya Birla Sun Life Corporate Bond Fund -- Growth
- HDFC Banking And PSU Debt Fund -- Growth
- LIC MF Gilt Fund -- Growth
- ICICI Prudential Constant Maturity Gilt Fund -- Growth
Sunny Cherian: I am having investments in following mutual funds, which are not performing well. What should I do?
1. Aditya Birla Sun Life Equity Advantage Fund (2-star)
2. Aditya Birla Sun Life Pure Value Fund (1-star)
3. L & T Emerging Business Fund Growth (2-star)
Omkeshwar Singh: Change them with
1. Tata Large and Mid-Cap growth (5-star)
2. Tata Equity PE fund Growth (5-star)
3. Kotak Small Cap fund Growth (3-star)
Jayesh Joshi: Married with 4-year-old son and dependent parents. Solo bread-earner; Age: 34
Planning to invest for retirement, medical contingencies and child’s higher education. Can invest Rs 5000 monthly.
Current investments: Rs 1 crore term insurance; Rs 50,000 premium for LIC policies (mostly Jeevan Anand); PPF: Rs 150,000 annually; FDs: Rs 7 lakh. Can you assist please?
Omkeshwar Singh: You can create a basket investment of Rs 5000 SIP per month.
Recommended schemes are as under:
Motilal Oswal Multi Cap 35 – Growth: Rs 1500
UTI Equity Fund – Growth: Rs 1500
Axis Focused 25 – Growth: Rs 1500
DSP Mid-cap Fund – Growth: Rs 500
Sundar Singh V: Presently I am having SIPs in following MFs. I have invested in these funds with 13 to 24 months investment horizon. Kindly advise me on this or shall I discontinue?
1. HDFC Small Cap (2-star): Rs 5000
2. ICICI Prudential Bluechip (2-star): Rs 5000
3. ICICI Prudential Discovery Fund (3-star): Rs 5000
4. L&T Emerging Business Fund (2-star): Rs 5000
5. Mirae Asset Emerging Bluechip Fund: Rs 10,000
6. Motlal Oswal Multicap 35: Rs 10,000
7. Principal Emerging Bluechip Fund (3-star): Rs 10,000
8. Reliance Small Cap Fund (1-star): Rs 5000
9. Sbi Smal Cap Regular Growth (2-star): Rs 5000
Omkeshwar Singh: Change to
1. Kotak Small Cap (3-star)
2. Axis Bluechip Growth (5-star)
3. Can continue as it is 3-star fund or you can change to Tata EquityPE fund Growth (4-star)
4. Kotak Small Cap fund -- Growth (3-star)
5. Continue, as it is a 4-star fund
6. Continue, as it is a 5-star fund
7. Tata Large and Mid-Cap Fund -- Growth (5-star)
8. Invesco India Small Cap Fund (3-star)
9. Axis Small Cap Fund (3-star)
Sowmya Keshav S R: I wish to-start SIP for a period of 5 years. Please suggest one midcap fund and one small cap fund. Thanks.
Omkeshwar Singh: Midcap: Motilal Oswal Midcap Fund Growth
Small cap: Kotak Small Cap Growth or Axis Small Cap Growth
Lalit Saxena: I am doing SIPs of Rs 2000 per month in following funds. Please review my portfolio and comment / suggest if any changes required.
1. Reliance Small Cap – Growth (2-star); started since 2014
2. IDFC Multi Cap Reg – Growth (4-star); started since 2011
3. Franklin India Smaller Companies -- Growth (2-star); started since 2015
4. Reliance Pharma – Growth; started since 2012
5. SBI Focused Equity -- Growth (3-star); started since 2013
6. Reliance Banking -- Growth (1-star); started since 2011
7. Reliance Focused Equity -- Growth (2-star); started since 2015
8. Aditya Birla SL Frontline Equity – Growth; started since 2017
9. Aditya Birla SL MNC – Growth; started since 2016
Omkeshwar Singh: Change to
1. Kotak Small Cap Growth (3-star)
2. Can continue as it is 4-star fund or can change to 5-star UTI Equity Fund -- Growth
3. Axis Small Cap Fund -- Growth or Kotak Small Cap Growth; both are investment grade (3-star)
4. Can continue if exposure to pharma is desired, else can shift to Tata Large and Mid-cap Growth (5-star)
5. Axis Focused 25 -- Growth (5-star)
6. SBI Banking and Financial Services – Growth (3-star)
7. Mirae Focused 25 -- Growth (5-star)
8. Can continue as it is a 4-star fund
9. Can continue as it is a 4-star fund
S Chandra Harsha Reddi: I am holding SBI Blue Chip (3-star) and SBI Small and Mid-Cap (2-star) for long-term period till 2025 @ Rs 10,000 per month. Shall I continue?
Omkeshwar Singh: Please change to Axis Bluechip Fund Growth (5-star) andMotilal Oswal Midcap 30 or Kotak Small Cap – Growth.
Shanmugam Sekar: I have invested in the following funds in 2018:
UTI MNC Fund (2-star) and Reliance Pharma Fund -- Growth (3-star), which have not appreciated but declined more than 10 per cent. What to do: sell or add with the investments?
Omkeshwar Singh: Both the funds are thematic funds hence the risks associated due to concentration is higher. Better options and opportunities can be in top multi-cap and focused funds.
Motilal Oswal Multi Cap 35 -- Growth (5-star)
Tata Large and Mid-Cap -- Growth (5-star)
UTI Equity Fund -- Growth (5-star)
Axis Focused 25 Fund -- Growth (5-star)