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Omkeshwar

Omkeshwar Singh  | Answer  |Ask -

Head, Rank MF - Answered on Feb 20, 2020

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Arun Question by Arun on Feb 20, 2020Hindi
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I do an investment per month of Rs 14,000 as SIP in mutual funds. The fund currently I am holding are:

1. HDFC Top 100 Fund -Rs 3000 (Recently Switched from HDFC Midcap Opportunities fund)

2. SBI blue chip fund - Rs 2000

3. ICICI prudential blue chip fund - Rs 2000(regular plan)

4. Mirae Asset emerging blue Chip Fund-2000

5. ICICI Prudential midcap fund-2000(regular plan)

6. Franklin India feeder US Opportunities fund-3000.(Recently Switched from Franklin india smaller companies fund).

I want to add one multicap fund by removing one midcap and one bluechip funds. Till Now my total investment was 318,000/- and current profit was 34,721/-

I am 33 old, I have 3 years old baby, and I want to start LIC policy for her education and another LIC policy for my retirement plan. 

Kindly suggest me how can I manage. 

Name of the Fund Category RankMF Star Rating
Arun Kumar    
1. HDFC Top 100 Fund -Rs 3000  Equity - Large Cap Fund: 3
2. SBI blue chip fund - Rs 2000 Equity - Large Cap Fund: 4
3. ICICI prudential blue chip fund - Rs 2000(regular plan) Equity - Large Cap Fund: 2
4. Mirae Asset emerging blue Chip Fund-2000 Equity - Large & Mid Cap Fund 4
5. ICICI Prudential midcap fund-2000(regular plan) Equity - Mid Cap Fund: 2
6. Franklin India feeder US Opportunities fund-3000. FoFs (Overseas) 2

Ans: Better options available for consideration. FOFs to be avoided at present.

Equity - Multi Cap Fund:

  1. UTI Equity Fund – Growth
  2. Axis Multicap Fund – Growth

Equity - Large Cap Fund:

  1. UTI Mastershare Unit Scheme - Growth Plan
  2. LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

  1. MOSL Midcap 30 Fund – Growth
  2. DSP midcap – growth

Equity - Large & Mid Cap Fund:

  1. Axis Growth Opportunities Fund - Regular Plan 
  2. Tata Large And Mid Cap Fund Regular Plan - Growth
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 Feb 20, 2020

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I do a regular investment per month of Rs 9000 as SIP in mutual funds. The funds I am holding currently are:  Name of the Fund Category RankMF Star Rating MohitBhardwaj     1. DSP Equal Nifty 50 Fund-Reg (G)  -Rs 2000 Index Funds - Nifty 2 2. DSP Equity Opportunities Fund-Reg (G) -Rs 1000 Equity - Large & Mid Cap Fund 4 3. DSP Natural Res & New Energy Fund-Reg (G)  - Rs 1000 Equity - Sectoral Fund - Energy & Power 2 4. Franklin India Prima Fund (G)- Rs 1000 Equity - Mid Cap Fund: 2 5. Franklin India Taxshield (G)- Rs 1000 Equity - ELSS 4 6. ICICI PruBluechip Fund (G)- Rs 1000 Equity - Large Cap Fund: 2 7. ICICI Pru Value Discovery Fund (G) - Rs 1000 Equity - Value Fund: 2 8. ICICI Pru Value Fund-16 (G) – Rs 1000 Equity - Value Fund: 2 9. ICICI Pru Value Fund-17 (G)  Equity - Value Fund: 2 10. ICICI Pru Value Fund-18 (G) Equity - Value Fund: 2 11. Invesco India Growth Opp Fund (G) Equity - Large & Mid Cap Fund 4 12. L&T Hybrid Equity Fund-Reg (G)  Hybrid - Aggressive Hybrid Fund 5 13. MotilalOswalMulticap 35 Fund-Reg (G) Equity - Multi Cap Fund: 5 14. Nippon India Capital Builder Fund-IV-A (G)      15. Nippon India NiveshLakshya Fund (G) Debt - Long Duration Fund 5 16. Quantum Long Term Equity Value Fund-Reg (G)   Equity - Value Fund: 2 17. Parikh Long Term Equity Fund-Reg (G) Equity - Multi Cap Fund: 5 18. Tata Hybrid Equity Fund-Reg (G) Hybrid - Aggressive Hybrid Fund 5 I have invested Rs 351,388 till now and my market value is Rs 386,870 which means my annual return is 5.2 per cent. Shall I continue to invest in the above funds or shall I switch to some other better fund as per your advice and what will be my capital (return) if I continue to invest for next 10 years as my current age is 35 years and I wish to invest till my age reach 50.
Ans: You may continue with 4 and 5 star rated funds; for remaining you may consider from below:

Equity - Value Fund:

  • Tata Equity PE Fund - Growth
  • UTI Value Opportunities Fund - Growth Plan

Equity - Multi Cap Fund:

  • UTI Equity Fund – Growth
  • Axis Multicap Fund – Growth

Equity - Large Cap Fund:

  • UTI Mastershare Unit Scheme - Growth Plan
  • LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

  • MOSL Midcap 30 Fund – Growth
  • DSP midcap – growth

Equity - Small Cap Fund:

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

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Ramalingam

Ramalingam Kalirajan  |6999 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 20, 2024

Asked by Anonymous - Aug 16, 2024Hindi
Money
Hello Sir, I am 48 years old and I am investing in mutual fund from 2017 and market value of mutual fund portfolio is 37 Lac and I am investing in following MF in through SIP Parag Parikh flexi cap fund 12 K Mirae asset Large and mid cap fund 5K Kotak emerging equity fund 5K Quant Active fund 5K Nippon India small cap fund 5K And following is lumpsum investment Quant large cap fund 250000 DSP Nifty 50 index fund 200000 ICICI pru short term fund 200000 JM flexi cap fund. 100000 Quant mid cap fund. 70000 I am planning to increase SIP by 10000 This I am planning for 10 years plan for retirement Kindly please suggest MF or guide me for any changes if any needed Thank you ???? Raj
Ans: Your current portfolio shows a solid mix of funds across various categories. You have SIPs in Flexi Cap, Large & Mid Cap, Emerging Equity, Small Cap, and Active funds. Additionally, you have lump sum investments in Large Cap, Index, Short Term, and Mid Cap funds. This diversification strategy is commendable as it balances risk across different market segments.

However, there are a few areas that could be optimized for better returns and lower risk, especially considering your 10-year retirement goal.

Disadvantages of Index Funds
You've invested a lump sum in an Index Fund. Index Funds track a specific benchmark, usually the Nifty 50 or Sensex. While they have lower expense ratios, they also lack the flexibility to adapt to market changes.

Active funds, on the other hand, allow fund managers to pick stocks that can outperform the market. In the long term, this can result in higher returns. Therefore, considering your retirement goal, shifting from the Index Fund to an actively managed fund might be more beneficial.

Regular Funds vs. Direct Funds
You haven’t specified whether your investments are in regular or direct funds. If you are considering direct funds, it’s important to know their limitations. Direct funds have lower expense ratios, but they don’t come with professional advice.

Certified Financial Planners (CFP) provide guidance, periodic reviews, and help in rebalancing your portfolio based on market conditions and your financial goals. Investing through a CFP ensures your portfolio is always aligned with your objectives.

Evaluation of Your SIPs
Flexi Cap Fund: This is a good choice, providing flexibility to invest across market caps. However, it might be wise to ensure your exposure isn't overly concentrated in any single market cap.

Large & Mid Cap Fund: This fund offers a balance between stability (large caps) and growth potential (mid caps). Continue this SIP as it aligns with your retirement goals.

Emerging Equity Fund: Mid and small caps tend to be more volatile. Consider reviewing this SIP annually to ensure it meets your risk tolerance.

Active Fund: Active funds can outperform benchmarks if managed well. Continue this SIP, but keep track of the fund’s performance.

Small Cap Fund: Small caps can offer high growth but with higher risk. Given your retirement goal, ensure this SIP doesn’t exceed 20% of your total SIPs, as it could add unnecessary volatility to your portfolio.

Assessment of Lump Sum Investments
Large Cap Fund: Large Cap funds are relatively stable, providing consistent returns. This should be a cornerstone of your portfolio.

Index Fund: As discussed, consider switching this to an actively managed fund for better returns.

Short Term Fund: This is a conservative choice, good for parking funds temporarily. However, for long-term growth, these funds may not be ideal.

Flexi Cap Fund: Diversification is key here, and the fund’s flexibility is advantageous. Continue to monitor its performance.

Mid Cap Fund: This fund offers growth potential but with some risk. Ensure this investment complements your overall portfolio strategy without overexposing you to mid-cap volatility.

Increasing Your SIP
Increasing your SIP by Rs 10,000 is a wise decision. Here’s how you might allocate it:

Allocate Rs 5,000 to a Balanced Advantage Fund: This will add stability to your portfolio by balancing equity and debt exposure. It’s a conservative choice that can offer better risk-adjusted returns.

Allocate Rs 5,000 to a Focused Equity Fund: This can potentially offer higher returns as the fund manager focuses on a limited number of high-conviction stocks.

Portfolio Rebalancing and Monitoring
Rebalancing your portfolio regularly is crucial. Markets can be unpredictable, and what works today might not work tomorrow. Review your portfolio every six months to ensure it’s aligned with your risk tolerance and retirement goals.

Final Insights
Your portfolio is well-diversified, but there are opportunities to optimize it further. By shifting from index funds to actively managed funds, and considering the guidance of a Certified Financial Planner, you can potentially achieve better returns. Increasing your SIP is a positive step towards securing your retirement, but make sure to allocate it wisely across different fund categories.

In summary:

Consider shifting from Index Fund to an actively managed fund.

Evaluate your exposure to small caps and ensure it aligns with your risk tolerance.

Invest the additional SIP amount in balanced and focused equity funds.

Regularly rebalance your portfolio and seek guidance from a CFP.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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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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