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Rediff.com  » Getahead » 'I want to invest in MFs with less risk'

'I want to invest in MFs with less risk'

By ULHAS JOSHI
January 11, 2023 11:24 IST
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Ulhas Joshi, Head -- Sales Rank MF, (external link) a mutual fund investment platform, answers your Mutual Fund queries.

Kindly note: Mr Joshi will answer your mutual fund queries instead of Mr Omkeshwar Singh.

MF guru

Illustration: Dominic Xavier/Rediff.com
 

Sam Sharma: Sir I am 29 years old and want to earn Rs 2cr by the time I turn 40 years. I have been investing in sip Rs 10000 per month in the following funds since Dec 2019:

ICICI prudential blue chip fund -- Rs 4000 monthly

Franklin India smaller companies fund -- Rs 3000 per month

Kotak flexicap fund -- Rs 3000 per month.

Maximum I can invest per month is Rs 20000. Pls guide

Ulhas Joshi: Your scheme selection is good and you can continue with these schemes. You can increase your SIP amounts by 10 per cent to 20 per cent every year to achieve your goal of Rs 1 Crore in 12 to 15 years.

 

Bangaru Babu: Dear sir i am 42 years old. And no investments in market. I want to invest in mutual funds with moderate risk for my daughter’s future with duration of 8 or 10 years or more. Corpus not indicating but need to invest for future. Pls advise some funds. Thank u.

Ulhas Joshi: You can consider investing in:

Samco Flexi Cap – Growth

DSP Top 100 -- Growth

Motilal Oswal Midcap -- Growth

 

Deepan Sinha: I am 39; want to retire by 50 years. I want to create a corpus of 1 crore. It seems like I need to invest more but not sure how much more. 

My current SIP are:

Mirae Asset emerging blue chip fund -- 4000

UTI Mastershare -- 2000

SBI focussed equity fund -- 4000

SBI blue chip fund -- 2000

SBI banking and financial services fund -- 2000

Parag Parikh flexi cap fund -- 2000

Mirae Asset midcap fund -- 2000

Axis focused 25 -- 2000

Please help with corrections and let me know how much more to invest.

Ulhas Joshi: Your scheme selection is fine. You should consider increasing your monthly investment by Rs 5,000 every year to achieve your goal.

 

Vinayak Kamble: I'm 27 years this month I started index fund ICICI save and grow capital guarantee mid cap fund, 6000 rs sip. I want to know is it actually index fund or not, i started through policy bazar, 10 years, I want to invest more pls give me guidance.

Ulhas Joshi: Please give the complete details of the schemes invested in and your objectives.

 

Kishor Patil: My age is 47 years old, 11 years to retire, drawing a monthly salary of 50K. Kindly advice for the following:

Goal 1: Retirement

Name of the fund Amount invested Current value SIP Ongoing /Stopped
SBI Equity Hybrid Plan -- Direct Growth 1,15,000 1,88,000 Stopped
Sundaram Aggressive Hybrid Fund -- Direct Growth 1,15,000 1,78,000 stopped
Tata Retirement Savings fund -- Progressive, Direct Growth 21,000 33,000 stopped

Goal 2: Tax purpose

Name of the fund Amount invested Current value SIP Ongoing /Stopped
Axis long term equity -- Direct -Growth 1,43,500 1,50,500 stopped, target completed for the year
Mirae Asset tax saver fund Direct -- Growth 1,01,000 1,09,000 stopped, target completed for the year
Canara Robeco Tax Saver Fund-Direct-Growth 1,52,000 1,62,000 stopped, target completed for the year

Goal 3: Wealth Generation

Name of the fund Amount invested Current value SIP Ongoing /Stopped
HDF Index Fund Nifty 50 Plan -- Direct-Growth 1,03,000 1,11,000 Rs 5000 Ongoing

Goal 4: Daughter Education and Marriage

Present Age: 15 years(2022) Marriage: 21 years (2028) Fixed Deposit of Rs 10 Lakh

Goal 5: Son Education and Marriage

Present Age: 12 years(2022) Marriage: 25 years (2035) Fixed Deposit of Rs 10 Lakh

Ulhas Joshi: You should resume your stopped SIPs for wealth creation and creating a retirement corpus. For your children’s education and wedding expenses, you can consider shifting from fixed deposits to balanced advantage funds.

Perabathula Chakradhar: I am 43. I have been investing in Mutual funds since the last 4 years. Given below is my current portfolio:

Product Name Date of Commencement Payment Frequency SIP Amount Investment Current Value
Nippon India Small Cap -- Direct Plan 05-Aug-18 SIP 5000 174000 248315
ABSL ESG Fund Regular Growth 08-Nov-21 One-time   181000 168000
Kotak Banking and PSU Debt Fund -- Direct Plan 02-Mar-21 One-time   100000 109000
Mirae Asset tax saver fund -- Direct Plan 02-Mar-21 Monthly 2500 70000 77257
Canara Robeco bluechip equity fund -- Direct Plan 25-Jun-21 One-time   200000 231000
UTI Flexi Cap Fund -- Direct plan 05-Jan-22 One-time   100000 89000
ICICI Prudential Equity and Debt Fund 05-Nov-22 Monthly 5000 10000  
HDFC Flexi Cap -- Direct Growth 05-Dec-22 Monthly 5000 5000  

For me, the idea is to accumulate wealth which will ensure a steady retirement life. I am in IT employee and it makes sense to plan well for the future. Please do let me know what would be the changes/additions that you would suggest in my portfolio so that I can look at a corpus fund of around 5 Cr by the time i am 60 years.

Ulhas Joshi: You need to increase your monthly investments to Rs 22,500, i.e invest Rs 40,000 every month and then step up your SIPs every year by Rs 4,000 to achieve your goal of Rs 5 Crore in 17 years.

 

Ranjan Das: I am a regular follower of your article since long time and seek your valuable advice on following as I don't have any expertise in MF matter and I have just invested after regularly following your articles and gathering knowledge from other sources (no financial advisor).

I am a service holder in a private ltd company, age-43, two children, spouse and dependent parent. I am investing in below mentioned MF monthly SIP in past following years/ months.


1. SBI BLUE CHIP FUND -DIRECT -- 2000 last four years
2. HDFC MID CAP FUND (G) -- 2000 last four years
3. HDFC CAPITAL BUILDER VALUE FUND -- (G) 2000 last four years

4. HDFC BALANCED ADVANCE FUND -- 100000 Lump sum -last four years
5. NIPPON INDIA SMALL CAP FUND -DIRECT -- GROWTH 2000 last one year
6. NIPPON INDIA MULTI CAP FUND -DIRECT GROWTH 2000 last three month
7.AXIS MID CAP FUND -DIRECT -- Growth 2000 last one year
8.KOTAK SMALL CAP FUND -GROWTH -- 2000 last one year
9. ICICI PRUDENTIAL BLUE CHIP FUND -- DRIECT -- GROWTH -- 2000 -- Last three month 

Kindly suggest whether these funds are good or I need to diversify to other fund (pls mention the fund name). I want an amount of around 1 cr in next 7-8 years to buy a house for my family. Eagerly waiting for your response for my future goal.

Ulhas Joshi: Thank you for appreciating our column.

You need to invest Rs 50,000 per month to achieve your goal of creating a corpus of Rs 1 Crore over the next 8 years. Your scheme selection is fine. You can continue investing in them with periodic rebalancing.      

Investing Rs 16,000 per month over the next 7 years will create a corpus of around Rs 21 Lakh.

 

Solomon Raj: Age 46, I started investing below funds from last 1 year. I want to achieve corps around 1 cr in next 5-6 years

1. SBI Blue Chip Fund @Rs 3K

2. Tata Digital Fund @ Rs 3.5K

3. UTI Nifty 50 Index @ Rs 3.5K

4. Quant Absolute Fund @ Rs 2.5K

5. Parag Parikh Flexi Cap Fund @ Rs 2.5K

6. Nippon India Small Cap Fund @ Rs 2.5K

7.HDFC Balanced Advantage Fund @ Rs 2.5K

8.Edelweiss Liquid Fund @ Rs 2.5K

9. DSP Natural Res and New Energy Fund @ 2.5K

All are direct growth funds and step up 10 per cent every 3 months. I guess there is no need to keep so many MFs. Kindly advise the best MFs. I am ok to redeem most of it from my list, if you can suggest a few only to achieve my goal.

Ulhas Joshi: Your current strategy of stepping up by 10 per cent quarterly is good to achieve your goals. You can consider switching out from Edelweiss Liquid Fund to UTI Flexicap Fund and switch from HDFC Balanced Advantage Fund to Motilal Oswal Mid Cap Fund.

 

Sowmya HS: I am 40 years old woman. Earning 1.4 L PM. I have 13 years old son. I never invested in mutual funds. Requesting your advice to start investing in mutual funds like how much in which mutual funds so I can achieve below goals.

5 cr before retirement (in next 18 years) 

1 cr for my son’s higher education by another 7 years

1 Cr for my son marriage in another 12 years

Current investments are:

1. PPF -- 1.5 LPA from last 3 years

2. VPF -- 1.6 LPA from last 1 year

3. NPS -- 60 KPA started 2 months back 

Kindly please help me with your answers.

Ulhas Joshi: To achieve your retirement goal of Rs 5 Crore in the next 18 years, you will need to start SIPs of Rs 51,000. You can consider:

Samco Flexi Cap – Growth

DSP Top 100 -- Growth

Motilal Oswal Midcap -- Growth

To achieve your goal of having Rs 1 Crore for your son’s higher education after 7 years, you need to invest Rs 70,000 per month. You can consider:

UTI Flexicap-Growth

HDFC Business Cycle Fund-Growth

DSP Quant Fund-Growth

ICICI Prudential FMCG Fund-Growth

Edelweiss Nifty 100 Quality 30 Index Fund-Growth

HDFC Index Fund Sensex Plan-Growth

UTI MNC Fund-Growth

 

Vineet Nair: Need your advice. I have 2 SIPs in Aditya Birla MF (Rs 5000 per month in edit Aditya Birla Sun Life Frontline Equity Fund and 2000 per month in Aditya Birla Sun Life Pure Value Fund) for 2 years. I started this to accumulate wealth for my family in the long run. Is this ok or shall I invest more per month?

I am also planning to start 2 new SIPs for 10 years for my infant daughter (Rs 3000 each) to cover her education by the time she turns 10 years.

My goals are:

1) Wealth creation in the long run and 2) education funds for my daughter 

Please advise if these savings are enough or shall I add more. Which SIP's should I invest in?

Ulhas Joshi: For wealth creation in the long run, you can continue with the Aditya Birla Sun Life schemes. You can consider increasing the investment amount annually.

You can create a corpus of around Rs 18 Lakh for your daughter’s education if you invest Rs 6,000 per month and increase your investment by Rs 1,000 every year. You can consider investing in:

HDFC Business Cycle Fund-Growth

Edelweiss Nifty 100 Quality 30 Index Fund-Growth

 

Amrutha Acharya: I am 29year old and I am earning 30k every month. I am a single parent and I have a 4-month-old son. My goal is to accumulate money for my son's education, marriage and for my retirement. I live in Bangalore. I am investing in PPF, EPF, LIC policy, RD, FD and MF.

PPF -- started in 2020 and I have 30k in it.

EPF -- 1800 from employee and 3600 from employer contribution, so, Total of 5400Rs per month. Currently I have 1L50K in it.

LIC policy (Jeevan Anand) -- Start Date is Jan 2021 and End Date is Jan 2045. Premium amount -- 24,500 and Expected maturity amount is 13,60,000.

RD -- Rs 1500per month in post office with interest 7 per cent for 10years started in the year 2017. Also, will be investing Rs 5,500 per month for 10years, starting from Jan 2023 with rate of interest 6.5 per cent.

FD -- Total of Rs 2L deposited in various bank accounts.

MF -- Started to invest since 2020.

SIP: (current accumulated amount Rs 1L 08K)

  • ICICI Blue Chip (G) -- Feb 2020 -- 500Rs /m (Active)
  • ICICI All season Bond -- May 2020 -- 300Rs /m (Active)
  • Nippon US Equity (G) -- May 2020 -- 200Rs /m (paused)
  • Axis Blue Chip (G) -- Jun 2020 -- 1000Rs /m(Active)
  • Invesco India Opportunities (G) -- Jun 2020 -- 250Rs /m(Active)
  • Motilal Oswal Multi Asset (G) -- Aug 2020 -- 500Rs /m(paused)
  • Nippon India Gilt Securities (G) -- Aug 2020 -- 250Rs /m(paused)
  • Nippon India Multi Asset (G) -- Oct 2020 -- 250Rs /m(paused)
  • SBI nifty Next 50 Index (G) -- May 2021 -- 500Rs /m(paused)
  • Axis Mid Cap Direct Plan (G) -- May 2021 -- 500Rs /m(paused)
  • ICICI US Bluechip Equity (G) -- May 2021 -- 250Rs /m(paused)
  • SBI Small Cap Direct plan (G) -- Jun 2021 -- 500Rs /m(Active)
  • ABSL business cycle (G) -- Jan 2022 -- 1000Rs /m(paused)
  • ICICI Nasdaq 100 Index (G) -- Aug 2022 -- 450Rs /m (Active)

So, currently Active SIP amounts to Rs 3000/m

Lump sum: (current accumulated amount Rs 55,000)

  • Axis Focused 25G -- 12,000Rs
  • ICICI Constant Maturity Gilt (Bond) -- 5000Rs
  • Mirae Arbitrage Fund (G) -- 5000Rs
  • Motilal Oswal Focused 25G -- 5000Rs
  • IDFC Govt Securities Invst Bond (G) -- 5000Rs
  • PGIM Global Equity Opportunity (G) -- 5000Rs
  • Parag Parikh Flexi Cap (G) -- 3000Rs
  • UTI Nifty Next 50 Index (G) -- 5000Rs
  • DSP Equal Nifty 50 (G) -- 2000Rs
  • Quant Active Direct (G) -- 5000Rs
  • Motilal Oswal LT equity Direct (G) -- 3000Rs

Above is my current financial condition. Please suggest me what needs to be modified so that I can achieve my goals.

Ulhas Joshi: We estimate that you will need funds in 18 years for your son's higher education, in 23 years for your son's wedding and in 28 to 30 years for your retirement.

You continue investing in the SIPs that are active and increase your SIPs annually by Rs 500 or more. In 18 years, you can expect to have a corpus of around Rs 50 Lakh. You can utilize a part of it for your son's education and the remainder for his wedding.

To plan for your retirement, you can consider starting monthly SIPs totaling Rs 1,500 and increment them every year by Rs 500. You can expect to have a corpus of Rs 1.3 Crore after 28 years.

 

PRAKASH PARMAR: Muje Mera 2 sal ka beta hai, or meri 29 sal ki wife hai, meri salary 20k hai, muje dono k lie mutual fund me sip karvana hai to kitne ka karwau, or kis me karwau, jisme aage acha profit mile. pls sir help me..

Ulhas Joshi: You can start SIPs of Rs 1,500 in HDFC Index Fund-NIFTY 50 Plan-Growth and Rs 1,500 in DSP Midcap Fund-Growth.


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.

Note: The questions and answers in this advisory are published to help the individual asking the question as well the large number of readers who read the same.

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ULHAS JOSHI