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'Can I sell all MFs and buy a balanced fund?'

December 19, 2022 09:54 IST

Do you have mutual fund queries?

MF guru

Illustration: Uttam Ghosh/Rediff.com

Please mail your questions to getahead@rediff.co.in with the subject line, Ask Nikunj, along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answer your queries.

 

Joseph John Fernandes: I am 52 years old and currently investing in these below MF funds monthly SIPs.

Aditya Birla Sun Life Small Cap Fund Growth-Regular Plan – 3,000

AFGP - Axis Focused 25 Fund - REGULAR GROWTH- 20,000

EFGP - Axis Bluechip Fund - Regular Growth – 15,000

PREG - HDFC Hybrid Equity Fund - Regular Plan – Growth – 3,000

 ICICI Prudential Technology Fund – Growth – 5,000

Mirae Asset Large Cap Fund - Regular Growth Plan – 6,000

NIPPON INDIA SMALL CAP FUND - GROWTH PLAN GROWTH OPTION – 3,000

NIPPON INDIA SMALL CAP FUND - GROWTH PLAN GROWTH OPTION – 25,000

SBI Flexicap Fund - Regular Plan – Growth – 3,000

My Question is whether to continue these MF funds or any changes required? If changes required which one to go for?

Nikunj Saraf: Hi Joseph. Following an extensive analysis of your portfolio, I recommend reconsidering the schemes such as the Axis Bluechip Fund, Aditya Birla Sun Life Small Cap Fund and SBI Flexi cap fund along with a portfolio reshuffle. Also you may introduce large and midcap category in your portfolio. Some Suggested funds are:

Aloke Ranjan Das: I am 70 years old and living on pension and interest income. I have invested Rs 30 lakh in the following mutual funds since 2015. I don’t want to redeem any of the funds right now. I may kindly be advised whether I should close all the funds and put them under one Balanced Advantage fund.

1)  Hdfc retirement savings equity plan

2)  Hdfc balanced advantage fund

3)  Nippon india growth fund

4)  DSP tax saver fund

5)  DSP quant fund

6)  SBI Bluechip fund

7)  SBI Equity Hybrid fund

8)  SBI magnum midcap fund

9)  ICICI flexicap fund Regards,

Nikunj Saraf: Hello Aloke. Considering your age factor as primary concern for portfolio analysis, it seems there are high risk appetite schemes in your portfolio. Hence, I would recommend to switch your investment in low risk appetite with Hybrid asset class such as:

Srinivasa Bhat: I entered in MF investment very lately. i.e. in the age of 56 years. Now I am 60+ years. Due to private sector I may continue my service. But there is no guarantee from management side. I am investing monthly for Rs.23000 in the following Mutual since 4 years:

1)  Aditya Birla Sun Life MNC Fund Regular Growth – 1500

2)  Axis Bluechip Fund Regular Growth – 1500

3)  Axis Focused 25 Fund Regular Growth – 1500

4)  Canara Robeco Blue chip Equity Fund Regular Growth – 1500

5)  DSP Nifty 50 Equal Weight index Fund Regular Growth – 1500

6)  Franklin India Smaller Companies Fund Regular Growth – 3000

7)  HDFC Developed World Indexed FOF Growth – 500

8)  ICICI Prudential MNC Fund Growth – 500

9)  ICICI Prudential ESG Fund Growth – 1200

10)  ICICI Prudential Business Cycle Fund Growth – 1500

11)  Mirae Asset Midcap Emerging Bluechip Fund Regular Growth – 1500

12)  Mirae Asset Midcao Fund Regular Growth – 1500

13)  Parag Parikh Flexi Cap Fund Growth – 1300

14)  India Invesco Small Cap Fund Regular Growth – 1000

15)  Invesco India ESG Equity Fund Regular Growth – 500

16)  SBI Equity Hybrid Fund Regular Growth – 1500

17)  Tata Small Cap Fund Regular Growth – 1500

So far I have withdrawn amount of Rs.266000 due to financial crisis. Presently my investment in the above funds comes to about Rs.850000 and as per NAV it comes to more than Rs.1100000. I want to withdraw full and invest in SWP system as my service is no guarantee. Please suggest me good fund so that I can withdraw at least Rs.10000 p.m. for monthly livelihood.

Nikunj Saraf: Hi Srinivasa Bhat. As per requirement and age factor, I would suggest you invest in schemes with low risk appetite with different asset classes -- debt, hybrid and equity. You may consider below mentioned schemes for reinvestment:

Also, to reduce the effect of market volatility, STP would be a better alternative to Lump sum.

Ayush Singh: Hello, I'm currently 23 years old. I've just started my corporate journey 3 months back. I've been investing in MFs for the past 6-7 months now. My mutual fund corpus is 75k and Stocks corpus is around 96k. My Mutual Funds are:

Mirae Asset Emerging Bluechip Fund: 2500 Quant Tax Plan: 4000

PGIM India Midcap Opportunities: 3000 ICICI Technology Plan: 1000

Canara Robeco Small Cap: 3000 Nippon India S&P BSE Sensex: 3000

Paragh Parikh Flexi Cap: 3000

Also, I'm doing an SIP of 2000 in buying Nifty Bees. Kindly guide me whether my selection and allocation of MFs is good or not. Should I also contribute some amount in PPF or NPS apart from all these funds? I want to have a sufficient corpus down the line.

Nikunj Saraf: Hello Ayush Singh. Your portfolio report is in good shape with the current market. I would suggest reconsidering your sip in Parag Parikh AMC with better peer scheme. You may contribute some amount in PPF and NPS with vision of diversification along with MF investment, retirement planning goal and tax saving purpose. Do have thorough research before investing.

Ashish Gaba: I am 40 years and I invested in an International Equity Mutual Fund to have some global exposure in my portfolio with the below investment details.

Mirae Asset NYSE FANG+ ETF FoF-- 1.25L -- Dec-21

But this fund is currently giving me -40% Return and performing the lowest in its category from last 3 months. As any new investment in US funds has been stopped for some time now AUM of this fund has come down to 692 Cr. Please suggest if I should hold or Stop the loss and sell it.

Nikunj Saraf: Hi Ashish Gaba since the fund will be investing majorly in US and US markets are very volatile currently losses may incur in the near future. If your investment horizon is for short term, I would advise to redeem the fund and diversify your future portfolio.

Sarvesh Prabhu Konkar: I am 41 years old. I am investing in the following Mutual funds since 2 years:

1. Mirae Asset Emerging Bluechip Fund-Direct Plan – 4100

2. Canara Robeco Bluechip Equity Fund - 3 years – 3000

3. Parag Parikh Long Term Equity Fund - 3 years – 3000

4. UTI Equity Fund - Growth - 3 Years – 3000

5. Axis Bluechip Fund - Direct Plan - Growth - Rs 3000

6. Axis Midcap Fund - Direct Plan - Growth - Rs 2000

Should I continue with these funds? Do you suggest any changes?

Nikunj Saraf: Hello Sarvesh. It appears that your portfolio has a good report. It would be advisable to reconsider the Axis Bluechip Fund with better peer schemes.

Prasanta Sahoo: Age-35 yrs. Required a target 1.5 cr in max 25-30 yrs. Suggest any sip sir.

Nikunj Saraf: Hi Prasanta Sahoo. For the goal of 1.5 Cr, you can start sip in mf of around Rs.6000 with the below-mentioned schemes:

Thatha: I am 51 years old and have two questions like:

A)  I want a corpus of 1 crore in next 5 years, how much I need to invest monthly /yearly.

B)  I want a corpus of 3 crore in next 6 years, where I need to invest and how much I need go for premium for monthly /yearly.

Appreciate your response.

Nikunj Saraf: Hello Thatha. Based on your 2 goals aligning in 5 years, it is likely that you will need to start SIP of Rs 1.21 lakh per month with 12% CAGR.

With 12% CAGR, you may start a monthly investment of 2.84 lakh to achieve your 3 Cr goal in the next 6 years.

You can read more of Mr Saraf's answers here


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Choice Wealth Private limited, to the best of its ability, considered various factors -- both quantitative measures and qualitative assessments, in an unbiased manner while choosing the fund(s) mentioned above. However, they carry unknown risks and uncertainties linked to broad markets, as well as analysts’ expectations about future events. They should not, therefore, be the sole basis of investment decisions. Investors are requested to review the prospectus carefully and obtain expert professional advice concerning specific legal, tax, and financial implications of the investment/participation in the scheme.

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NIKUNJ SARAF