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Ulhas

Ulhas Joshi  | Answer  |Ask -

Mutual Fund Expert - Answered on Apr 12, 2024

With over 16 years of experience in the mutual fund industry, Ulhas Joshi has helped numerous clients choose the right funds and create wealth.
Prior to joining RankMF as CEO, he was vice president (sales) at IDBI Asset Management Ltd.
Joshi holds an MBA in marketing from Barkatullah University, Bhopal.... more
Asked by Anonymous - Apr 12, 2024Hindi
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sir we have been investing in Mutual Funds for last 12 years in various types of funds Now value is 1cr pls advise if we should continue investing or move them to less risk funds and start afresh Our goal is 3cr for retirement which is 12 years from now

Ans: Hello & thanks for writing to me. I commend you for investing thru various market cycles & investing with discipline in mutual funds for creating wealth for the long term.

I am assuming that all investments are currently in equity funds. As your goal is around 12 years away, I would recommend you continue to invest in equity funds & stay invested in them for around 5 to 6 years. After 5-6 years, you can stop SIP's in equity funds & start investing in hybrid funds like aggressive hybrid funds, balanced advantage funds etc. Over time, with proper guidance you can consider rebalancing your portfolio in a mix of equity & hybrid funds to achieve an optimal balance for you.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Jan 30, 2020

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I do a regular investment per month of Rs 8000 as SIP in mutual funds. The fund currently I am holding are:  1. HDFC Top 100 Fund -Rs 2000 2. ICICI prudential value discovery fund -Rs 1000 3. ICICI prudential blue chip fund - Rs 1000 4. HDFC Hybrid equity fund - Rs 1000 5. SBI blue chip fund - Rs 1000 6. SBI Small cap fund - Rs 1000 7. Mirae asset large cap fund - Rs 1000 I have invested Rs 214,372 till now and my market value is Rs 230,213 which means my annual return is 8.8 per cent. Shall I continue to invest in the above fund or shall I switch to some other better fund as per your advice and what will be my capital if I continue to invest for next 7 years as my current age is 43 years and I wish to invest till my age reach 50.  Name of the Fund Category RankMF Star Rating Anoop Adhikari     1. Hdfc Top 100 Fund -Rs 2000 Equity - Large Cap Fund 4 2. Icici prudential value discovery fund -Rs 1000 Equity - Value Fund 3 3. Icici prudential blue chip fund- Rs 1000 Equity - Large Cap Fund 3 4. Hdfc Hybrid equity fund - Rs 1000 Hybrid - Aggressive Hybrid Fund 5 5. SBI blue chip fund - Rs 1000 Equity - Large Cap Fund 3 6. SBI Small cap fund - Rs 1000 Equity - Small cap Fund 3 7. Mirae asset large cap fund - Rs 1000 Equity - Large Cap Fund 4
Ans: You may please continue with 4 and 5 star schemes; for the rest you can consider these:

Equity - Large Cap Funds: 

  • LIC MF Large Cap Fund-Growth
  • Axis Bluechip Fund-growth 

Equity - Small cap Fund: 

  • Kotak Small Cap Fund – Growth
  • Axis Small Cap Fund – Growth

Equity - Value Fund: 

  • Tata Equity P/E Fund (Growth Option)
  • UTI Value Opportunities Fund- Growth Option
  • L&T India Value Fund Growth Option

..Read more

Ramalingam

Ramalingam Kalirajan  |8442 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

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I have the following mutual funds: 1. Quant Small cap 5000 Rs SIP 2. Canara Robecco small cap 5000 Rs SIP 3. ICICI Pruential Commodity fund 2500 Rs SIP 4. UTI BSE housing index fund 3500 Rs SIP Please suggest me whether to continue it and any addition to these to achieve 2 cr in next 15 year
Ans: Evaluating Your Current Portfolio
Your current SIP investments are:

Quant Small Cap: Rs. 5000
Canara Robeco Small Cap: Rs. 5000
ICICI Prudential Commodity Fund: Rs. 2500
UTI BSE Housing Index Fund: Rs. 3500
Quant Small Cap and Canara Robeco Small Cap
Both funds are in the small-cap category. Small-cap funds can provide high returns but come with high risk. Having two small-cap funds might be unnecessary.

ICICI Prudential Commodity Fund
This fund focuses on commodities, which can be volatile and influenced by global factors. It can diversify your portfolio but be cautious of its volatility.

UTI BSE Housing Index Fund
Sectoral funds like this can be high-risk as they focus on a specific industry. It's good for diversification but should not be a large part of your portfolio.

Recommendations for Your Portfolio
Continue with Small-Cap Funds
Keep one small-cap fund for growth potential.
Evaluate performance and consistency of returns.
Diversify with Multi-Cap and Balanced Funds
Add a multi-cap fund for diversified equity exposure.
Consider a balanced or hybrid fund for stability and moderate returns.
Reduce Exposure to Sectoral and Commodity Funds
Reduce the allocation to sectoral and commodity funds.
Focus more on diversified equity and balanced funds.
Achieving Your Goal of Rs. 2 Crores in 15 Years
To achieve Rs. 2 crores in 15 years, consider these steps:

Increase SIP Amount
Increase your SIP amount gradually as your income grows.
Aim to invest more than the current Rs. 16,000 per month.
Diversify Across Fund Categories
Include large-cap, mid-cap, and multi-cap funds for balanced growth.
Add a balanced or hybrid fund for stability.
Regularly Review and Rebalance Your Portfolio
Review your portfolio annually with a certified financial planner.
Rebalance based on performance and changing market conditions.
Maintain Consistency and Patience
Stay invested for the long term to benefit from compounding.
Avoid frequent changes based on short-term market movements.
Sample Portfolio Allocation
Here's a suggested portfolio allocation:

Large-Cap Fund: 30% (For stability and steady returns)
Multi-Cap Fund: 30% (For diversification and growth)
Small-Cap Fund: 20% (For high growth potential)
Balanced/Hybrid Fund: 20% (For stability and moderate returns)
Final Insights
To achieve your goal of Rs. 2 crores in 15 years, diversify your investments, increase your SIP amount over time, and regularly review your portfolio. Stay consistent and patient with your investments for long-term growth.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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