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'Never invest in equity MFs if...'

By OMKESHWAR SINGH
June 01, 2022 08:35 IST
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'Never invest in equity schemes if the horizon is short.'

Illustration: Dominic Xavier/Rediff.com
 

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


Venkittaraman R: I am 69. I am planning to START SIP JOINT NAMES OF myself and My Son. Our plan is to contribute for 25 years till my son reaches 60 years though I may pass away, my son will continue. From the interest earned from Bank or post office my contribution for SIP will be 50000 pm for 25 years

Suggest good mutual funds FOR SIP with scheme names.

Omkeshwar Singh: You may consider from among these funds:

- Axis Esg Equity Fund - Growth

- Uti Flexi Cap Fund -growth

- Samco Flexi Cap Fund - Growth

- Hdfc Index Fund - Sensex Plan - Growth

Jayalekshmy Sreedevi: I am 26 years old working in PSU. I am currently having two SIPs of 2000 each in SBI focused equity and Mirae Asset Tax Saver Fund. Should I continue this and can u suggest some funds to add to my portfolio?

Omkeshwar Singh: These funds are good and you may consider from these too:

- Axis Esg Equity Fund - Growth

- Uti Flexi Cap Fund -growth

- Samco Flexi Cap Fund - Growth

- Hdfc Index Fund - Sensex Plan - Growth

Netra Joshi: I have SIPs in following funds:

  • Axis long term equity 2000
  • ABSL focused equity fund 2000
  • ABSL low duration fund 7000
  • Axis blue chip fund direct growth 7000
  • Hdfc index sensex direct growtg fund 5000
  • Hdfc top 100 fund 1000
  • Invesco india contra fund growrh 1000
  • Invesco india growth opportunities direct growth 500
  • Nippon india growth fund 1000
  • Nipppon india large cap fund 500
  • Nippon india liquid fund 500
  • Nippon small cap fund direct 100
  • Nippon india tax saver elss 2000
  • Sbi blue chip fund growth 5000
  • Sbi flexi fund direct 2000
  • Sbi focused equity fund direct 2000
  • Sbi small cap fund direct 6000
  • Parag parikh flexi cap fund 5000

Should I continue for next 10 years above funds. Please suggest 

Omkeshwar Singh: Reduce it by consolidating all these into 3-5 schemes.

Mukkanti Krishnamurthy: Please advise around 4 to 5 mutual fund investments for one time investment (lump sum amount) for a period of 3 to 4 years. My proposed total investment: Rs 4 lakh. My age is 63 years.

Omkeshwar Singh: Sir, you may consider these debt funds:

  • Uti Short Term Income Fund-Growth
  • Aditya Birla Sun Life Short Term Fund - Growth

Nabendu Ray: Firstly I would like to thank for your suggestions and recommendations you provide. I would like to know how much corpus is required to get 1 lakh per month in retirement, which will start from June 22. Also, please guide where to invest to get monthly amount of 1 lakh. 

Omkeshwar Singh: Sir, the corpus required will be around Rs. 1.6 crore, to be invested in mix of debt and hybrid balanced advantage funds.

Objective will be to generate at least 8% post tax returns so that the corpus will not only be perpetual but also grow over time.

Sumesh Menon: I have following MFs in lump sum deposit.

  • SBI Multicap D/P Growth - 3 L
  • SBI Retirement Benefit Fund Aggressive Plan - Regular Plan Growth - 2.5 L
  • SBI Retirement Benefit Fund Conservative Hybrid Plan - Regular Plan Growth - 2.5 L
  • SBI Nifty Next Fifty Index funds D/P - Growth - 82 K

Please suggest some SIPs for monthly 1 LAKH SIP for a target of 2 Cr in three years.

Omkeshwar Singh: 1 lakh SIP in 3 years can create a corpus of Rs. 45 lakh and not 3 crs

Pradeep Shetty: Kindly suggest your opinion on this. I have the following monthly SIPs:

  • ADITYABSL MNC GR - 1000
  • BARODA BNP PAR MID CAP FUND GR - 3000
  • KOTAK EMERGINGEQUITY GR - 3000
  • SUNDARAM MID CAP GR - 2000
  • DSP SMALL CAP GR - 10000
  • L&T EMERGING BUSI RP GR -4000
  • QUANT SMALL CAP GR - 5000
  • MAHINDRA TOP250 NIV YOJ REG GR - 7500
  • UNION FLEXI CAP FUND - GROWTH - 5000
  • ADITYABSL PURE VALUE (G) - 1000
  • ICICI PRU FOCUSEQ (G) - 7500
  • INVESCOINDMULTICAP (G) - 1000

One Time investments:

  • IDFC LARGE CAP (G) - 250000
  • UTI MASTERSHARE (G) - 250000
  • HDFC FOCUSED 30 (G) – 250000

Omkeshwar Singh: All your funds are decent, however, TOO many. Restrict yourself to 3-5 funds not more than that!

Binayak Sahu: I am 38 years old and a salaried person. Started in 2019 with annual step up of 10 per cent. I want to invest for another 15 years. Kindly suggest about the funds. Following are my current mutual fund investments:

  1. SBI Blue Chip fund- Direct Growth. Monthly SIP of Rs 3000
  2. Sundaram Large and Mid Cap fund- Direct Growth. Monthly SIP of Rs 3000/-
  3. PGMI India value fund Direct Growth. Monthly SIP of Rs 3000/-
  4. NIMF Small Cap Fund Direct Growth. Monthly SIP of Rs 3000/-
  5. UTI MNC Fund Direct Growth. Monthly SIP of RS 3000/-

Omkeshwar Singh: Funds are good; please continue

Ramakanta Barik: I am having these following investments. I invested Rs 15 lakh in one go six months back. I need this money back after 3-4 months. Could you kindly advise what should I do now as it is going at a total loss of Rs 1.05 lakh as on date? Shall be highly obliged for your kind guidance.

Folio Number Scheme Name Units Amount Invested Market Value Average Purchase
NAV
Current NAV Dividend Unrealized G/L IRR
11773387 PARAG PARIKH FLEXI CAP FUND -
REGULAR GROWTH( equity flexi cap)
5766.159 299985.00 277368.00 52.03 48.10 0.00 -22617.00 -18.87 per cent
19934334374 CANARA ROBECO BLUECHIP EQUITY
FUND - GROWTH( Equity Large Cap)
6948.923 299985.00 278721.00 43.17 40.11 0.00 -21264.00 -17.38 per cent
79949636772 MIRAE ASSET LARGE CAP FUND
- REGULAR -
GROWTH PLAN( Equity Large Cap)
3670.574 299985.00 282260.00 81.73 76.90 0.00 -17725.00 -14.83 per cent
910135
213304
AXIS MID CAP FUND
- GROWTH PLAN( Equity Mid Cap)
4134.303 299985.00 274476.00 72.56 66.39 0.00 -25509.00 -19.83 per cent
19997034/03 ICICI PRUDENTIAL MULTICAP FUND
- REGULAR
PLAN - GROWTH(Equity Multi Cap fund)
640.364 299985.00 281203.00 468.46 439.13 0.00 -18782.00 -15.67 per cent

Omkeshwar Singh: Never invest in equity schemes if the horizon is short. If not necessary, kindly do not redeem. All the funds are good, however, the markets are in correction mode.

Please follow these house rules for investing in MFs if your investment horizon is between:

  • 1 and 3 years: Take short term debt funds
  • 3 and 5 years: Hybrid Funds
  • 5 years and above: Equity funds

Akash: I have invested 80,000 K in the Franklin India TAXSHIELD - Direct-GROWTH in 2018 . Should I continue or exit the scheme?

Omkeshwar Singh: Here are some better options for you:

- Axis Long Term Equity Fund Regular Growth

- Parag Parikh Tax Saver Fund - Regular Plan-growth

Asst Engineer KZY: I am investing 5000rs x 2 ie 10000rs in sbi bluechip funds monthly and 5000rs in sbi contra funds monthly along with 2000rs in Axis growth opportunities fund monthly; 2000rs in parag parikh flexi cap funds; 2000rs in sundaram large and midcap funds; 2000 rs in Adithya Birla sunlife flexicap funds. Shall I continue with this or not? 

Please reply sir.

Omkeshwar Singh: Please continue


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.

Read more of Omkeshwar Singh's responses here.

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OMKESHWAR SINGH / Rediff.com