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NAVs falling rapidly. Buy, hold or sell?

By OMKESHWAR SINGH
May 25, 2021 08:54 IST
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'The NAV of these funds has been reducing rapidly since January 2021.'
'Shall I continue with these funds or else please suggest other options?'

Illustration: Dominic Xavier/Rediff.com
 

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


Pemmaiah M U: I am investing Rs 2500 per month in mutual funds from the last 2.5 years, which is divided as below.

Rs. 500 in ICICI PRUDENTIAL VALUE DISCOVERY FUND, HDFC SMALL CAP FUND and SBI BLUECHIP FUND and Rs.1000 in L&T MID CAP FUND 1000.

Is it good to continue with this or should I make any changes?

I was always advised to keep mutual funds untouched for several years but just wanted to get a piece of advice from you.

Omkeshwar Singh: Continue with all except HDFC Small Cap; switch to Axis Small Cap

shailesh mehta: I have recently started SIP in

1. Axis 25 focus fund growth

2. Axis Blue Chip

Kindly advice are both good? Also i want to invest Rs.5000/- lump sum if some good fund, can you advice? 

Omkeshwar Singh: Please continue; both are great quality funds. Rs. 5000 can be invested in Parag Parikh Flex-Cap Fund - Growth

anindya chatterjee: Following are my investments:

SBI Magnum Global Fund - Regular Plan – Growth (M0nthly) 2000.00 P.M

SBI Focused Equity Fund Regular Growth (Monthly) 3000.00 P.M

SBI Magnum Multicap Fund - Regular Plan – Growth (Monthly) 3000.00 P.M

SBI Blue Chip Fund - Regular Plan – Growth (Monthly) 2000.00 P.M

SBI Equity Hybrid Fund Regular Growth (Monthly) 3000.00 P.M

SBI Dual Advantage Fund - Series XXVIII - Direct – (one time) 50000.00

SBI Equity Hybrid Fund Regular Growth (One Time) 150000.00

Please guide me.

Omkeshwar Singh: Continue with 1, 2, 4, 6. Switch Multicap to UTI Flexi Cap Fund – Growth, and Hybrid Equity to Motilal Oswal Equity Hybrid Fund – Growth

anuja dandekar: I have made lump-sum investments in Feb'19 in below 2 funds:

1. ICICI Prudential Constant Maturity Gilt Fund - Growth
2. SBI Magnum Constant Maturity Gilt Fund - Growth

The NAV of these funds has been reducing rapidly since Jan'21. Shall I continue with these funds or else please suggest other options.

Omkeshwar Singh: Better to shift to a banking and PSU fund or corporate bond fund, i.e,. 1) Aditya Birla Corporate Bond fund – Growth 2) HDFC Banking and PSU fund – Growth

Raj: I am currently investing in these following funds, please let me know any funds to remove or add:

1. Axis Special Situations

2. Aditya Birla Digital

3. Aditya Birla Infrastructure

4. DSP Healthcare

5. Edelweiss Balanced Advantage

6. HDFC Gold

7.HDFC Low Duration

8 ICICI Pru Sensex

9. ICICI Floating

10. Kotak Pioneer

11. Motilal Nasdaq 100

12. Motilal Smallcap Index

13. Motilal MidCap Index

14. SBI Banking and Fin

15. Tata Energy & Resource

Thanks indeed for your advice.

Omkeshwar Singh: Too many funds for meaningful outperformance of the portfolio. Continue with 1, 2, 4, 5, 11 on Equity Side Debt funds can be continued

Nagabhushan P: I hope you are doing well. Need your advice on my portfolio. Currently I am investing 8K/month in below mf as SIPs:

1.Axis small cap fund direct growth-1.5k

2.SBI small cap fund direct growth- 1.5k

3.Axis midcap direct plan growth- 1.5k

4.Mirae asset tax saver fund direct growth -2.5k

5.Parag parikh flexi cap fund direct growth -1k

Should I continue with above MF for a long term considering my age is 26? And planning to invest 2k additionally? Please suggest one good fund to invest for a long term.

Omkeshwar Singh: Please continue; the quality of the portfolio is decent.

Mayank Dixit: My wife (30 yrs) and me (31 yrs) have started investing in below mutual funds and ELSS via SIP from June'2019 with a long term horizon.

Wife:

DSP Tax Saver Fund - Regular Plan- Growth: 20000 lump sum

Mirae Asset Tax Saver Fund- Regular plan - Growth: 30000 lump sum

HDFC MID-Cap oppurtunities fund - growth option: SIP 1000

Mirae Asset Emerging Bluechip Fund - Regular Plan -Growth Option: SIP 1000

Self:

Aditya Birla Sun Life Tax Relief' 96 - Growth Option: SIP 2000

Mirae Asset Tax Saver Fund- Regular plan - Growth: SIP 2000

Kotak Standard Multicap Fund - Growth: SIP 1500

Mirae Asset Emerging Bluechip Fund - Regular Plan -Growth Option: SIP 1500

Need to know your views on the selection of funds and changes if any with suitable options.

Omkeshwar Singh: Wife: Continue with all except HDFC mid cap; switch to DSP mid cap or Axis Mid Cap

Self: Continue with all except Kotak Multi Cap / Flexi cap; switch to UTI Flexi Cap or Parag Parikh Flexi Cap

Abhishek Chauhan: I had been reading your inputs on rediff.com and learning a lot from them in investment in mutual funds. 

I request you to pls suggest me a few things to make my corpus of 1 Cr in the next 10 years. 

1- How much money every month I have to invest?? 

2- Which are the mutual funds SIP plans in which i should invest? 

3- Any other method of investment is suggest for making a corpus of 1Cr in next 10 years. 

Thanking in advance and Awaiting your reply

Omkeshwar Singh:

  1. Monthly Investment of Rs 40,000 is required to create a corpus of Rs 1 cr with a CAGR of 13%
  2. Portfolio that you may consider for investment is as under:

a)   UTI Flexi Cap – Growth

b)  Parag Parikh Flexi- Cap Growth

c)   Axis ESG Equity Fund – Growth

d)  DSP Mid Cap Fund – Growth

  1. The required corpus can be created in investment into direct equity of equity oriented mutual funds; depending upon your expertise and exposure you may choose the option better suited for yourself.

Brahmendra Vadapalli: Following are my investments on Debt Funds. Pls suggest for any changes required, in the debt fund category only pls as I have other investments in stocks and equity MFs. Investment horizon: 2 to 3 years. Invested a month back as lump sum on the below and no plans to increase the investment in this category in the near future.

Thanks in advance. Best Regards,

EDELWEISS BANKING AND PSU DEBT FUND - DIRECT PLAN -- 3 lakhs

HDFC BANKING AND PSU DEBT FUND - DIRECT PLAN -- 2 lakhs

ICICI PRUDENTIAL MEDIUM TERM BOND FUND - DIRECT PLAN -- 3 lakhs

IDFC BANKING & PSU DEBT FUND - DIRECT PLAN -- 2 lakhs

IDFC BOND FUND MEDIUM TERM PLAN - DIRECT PLAN -- 3 lakhs

SBI BANKING & PSU FUND - DIRECT PLAN -- 2 lakhs

SBI MAGNUM MEDIUM DURATION FUND - DIRECT PLAN -- 3 lakhs

Omkeshwar Singh: These are fine schemes for debt portfolio for 2 -3 years, however better suited would have been Debt – Short Duration funds designed for 1 to 3 years.


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.

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OMKESHWAR SINGH / Rediff.com