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Ajit

Ajit Mishra  | Answer  |Ask -

Answered on Apr 01, 2020

birendar Question by birendar on Apr 01, 2020Hindi
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I want to make an investment (SIP) for my son age 25 yrs in the following MFs @ Rs 1000 pm in each fund. Request advise

Ans:

1. HDFC Top 100 fund

2. HDFC Hybrid equity fund

3. Mirae asset tax saver fund

4. Axis long term equity fund

5. Axis blue chip fund -- direct

6. SBI magnum multi cap -- direct growth

7. SBI equity hybrid fund -Reg plan growth

All the funds mentioned are decent. We would recommend investing through SIP in 5 of the above funds spread across market caps.  

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 want to make an investment (SIP) for my son age 25 years in the following MFs @ Rs 1000/- pm in each fund. Request your advice 1. HDFC Top 100 fund 2. HDFC Hybrid equity fund 3. Mirae asset tax saver fund 4. Axis long term equity fund 5. Axis blue chip fund – direct 6. SBI magnum multi cap - direct growth 7. SBI equity hybrid fund -Reg plan growth Also, I am a retired person. I have invested my retirement corpus in the following funds as lump sum investments: 1. Debt MF Axis Banking and PSU debt (G) Franklin - India liquid fund super Ins (G) ICICI Pru - savings fund (G) Kotak low duration fund std (G) Mirae asset savings fund Reg (G) 2. Equity MF Axis - mid cap (G) ICICI Pru - blue chip fund Reg (G) Mirae asset emerging blue chip fund Reg (G) Please confirm whether I should continue in the above funds or switch over to some other funds. Name of the Fund Category RankMF Star Rating Birendar Yadav     1. HDFC Top 100 fund Equity - Large Cap Fund: 3 2. HDFC Hybrid equity fund Hybrid - Aggressive Hybrid Fund 5 3. Mirae asset tax saver fund Equity - ELSS 4 4. Axis long term equity fund Equity - ELSS 5 5. Axis blue chip fund – direct Equity - Large Cap Fund: 5 6. SBI magnum multi cap - direct growth Equity - Multi Cap Fund: 4 7. SBI equity hybrid fund -Reg plan growth Hybrid - Aggressive Hybrid Fund 5 1. Debt MF     Axis Banking and PSU debt (G) Debt - Banking and PSU Fund 3 Franklin - India liquid fund super Ins (G) Debt - Liquid Fund 5 ICICI Pru - savings fund (G) Debt - Low Duration Fund 4 Kotak low duration fund std (G) Debt - Low Duration Fund 5 Mirae asset savings fund Reg (G) Debt - Low Duration Fund 3 2. Equity MF     Axis - mid cap (G) Equity - Mid Cap Fund: 4 ICICI Pru - blue chip fund Reg (G) Equity - Large Cap Fund: 2 Mirae asset emerging blue chip fund Reg (G) Equity - Large & Mid Cap Fund 4
Ans: You may continue with 4 and 5 star rated funds; for remaining you may consider from below:

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 - Small Cap Fund:

  1. Kotak Small Cap Fund – Growth
  2. Axis Small cap Fund - Growth

Debt - Banking and PSU Fund

  1. Kotak Banking And Psu Fund - Growth
  2. Hdfc Banking And Psu Debt Fund - Regular Growth 

..Read more

Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 08, 2024

Asked by Anonymous - Apr 07, 2024Hindi
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Hello Sir, I want to invest 25k monthly in SIP with retirement and child education as investment goal . I am also planning to step up the SIP amount every year after I get the increment. Could you please tell me in which MF fund should I invest and how much should I increase the SIP amount very year. Target corpus ( investment horizon - 15 years) Retirement (least amount ) - 4-5 Cr Child Education - 4-5 Cr My wife is also working and can invest 15k more in addition to above amount.
Ans: Given your investment goals and time horizon, here's a suggested investment plan:

Retirement Corpus:

Allocate a significant portion of your SIP amount to large-cap, multi-cap, and diversified equity funds.
Large-cap funds offer stability, while multi-cap and diversified equity funds provide growth potential.
Gradually increase SIP amounts annually to keep pace with inflation and salary increments.
Child Education Corpus:

Diversify your SIPs across large-cap, multi-cap, balanced, and thematic funds.
Large-cap funds offer stability, while multi-cap and balanced funds provide growth potential with lower volatility.
Thematic funds can be considered for specific sectors or themes with growth potential, but exercise caution due to higher risk.
Combined SIP Allocation:

Allocate SIP investments based on your risk tolerance, investment horizon, and financial goals.
Balance the allocation between retirement and child education based on priority and time horizon.
Gradually increase SIP amounts annually to align with your financial goals and growing expenses.
Review and Monitoring:

Regularly review the performance of your SIP investments and adjust asset allocation if necessary.
Seek advice from a financial advisor to periodically assess your progress and make any required adjustments to stay on track with your goals.
By following a diversified investment approach and gradually increasing your SIP amounts over time, you can work towards building a substantial corpus for both your retirement and your child's education.

..Read more

Milind

Milind Vadjikar  | Answer  |Ask -

Insurance, Stocks, MF, PF Expert - Answered on Nov 27, 2024

Asked by Anonymous - Nov 27, 2024Hindi
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Hi Milind, Hope you are doing well. I am an NRI. I am 42-year-old. I am a Software engineer. My son is 11-year-old. Please share your guidance for better investment in MF or Stocks which has better returns with less risk. The plan is for my son’s education for his degree. Please find my plan. 1. I can spend 20K per month towards SIP. 2. Plan is for 8 years investment. 3. In next 8 years, my target is to make 40 to 50 lakhs Please provide your inputs to my following queries 1. Which mutual funds can help to achieve my above goal? 2. Is it better to invest in 2 to 3 mutual funds ? 3. How much I need to SIP to achieve my above goals? 4. How can I apply investments in the mutual fund from United Kingdom? 5. Do I need open DMAT account ? If so, please guide how can I do this from UK? 6. Do I need to do KYC? If so, please guide how can I do this from UK? Appreciate you if you guide me Thank you
Ans: Hello;

To generate a corpus of around 50 L in 8 years you have two options:

1. Start with 20 K monthly SIP and step it up each year by 15% upto 8 years.

2. Start with a monthly sip of 31 K which may yield you a corpus of around 50 L after 8 years.

A modest 12% return from equity mutual funds is considered.

Mutual funds will be certainly better then direct stocks from a risk perspective.

You may invest in a flexicap type mutual fund and a large and midcap type mutual fund in the proportion of 50:50 for your investment.

You may select any fund from the top quartile in these categories.

You don't need a demat account.

You will need to do KYC before investing, some investment apps/AMCs offer it to be done online even for NRIs.

Happy Investing;

..Read more

Ramalingam

Ramalingam Kalirajan  |9790 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Dec 23, 2024

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Need to invest in mf thru SIP of rs 10000 monthly with time horizon of 3 years and one lumpsum investment of rs 25 lacs in mf. Which are best options? Regards GK Raju
Ans: Your plan to invest Rs. 10,000 monthly through SIP for 3 years and Rs. 25 lakhs as a lumpsum is an excellent step. Let us evaluate and design an optimal strategy for both investments to suit your goals and time horizon.

SIP Investment for a 3-Year Horizon
A 3-year horizon is relatively short for equity mutual funds. Hence, capital preservation and moderate growth should be the primary goals.

Recommended Fund Categories
Hybrid Funds: These balance equity and debt, offering lower risk than pure equity funds. They are suitable for a 3-year horizon.

Arbitrage Funds: These invest in arbitrage opportunities and have minimal risk. They are a safer choice for short-term SIPs.

Short-Term Debt Funds: These focus on fixed-income instruments with shorter maturities, ensuring stability and predictable returns.

Key Considerations
Risk Mitigation: For a short horizon, avoid high-risk funds like small-cap or thematic funds.

Liquidity: Choose funds with no exit load beyond one year for better flexibility.

Lumpsum Investment of Rs. 25 Lakhs
Lumpsum investments require careful allocation to balance risk and return, especially over 3-5 years.

Recommended Fund Categories
Dynamic Asset Allocation Funds: These adjust equity and debt allocation based on market conditions, offering balanced returns.

Equity Savings Funds: These combine equity, arbitrage, and debt for steady growth with controlled risk.

Corporate Bond Funds: These focus on high-quality debt instruments and are ideal for preserving capital while earning stable returns.

Short-Term Debt Funds: These ensure low risk and predictable returns, making them suitable for conservative investors.

Avoid High-Risk Investments
Avoid pure equity funds for lumpsum investment over 3 years. The short horizon increases market timing risk.
Thematic and sectoral funds should also be avoided due to volatility and concentration risk.
Tax Implications for Both Investments
Understanding taxation is crucial for maximising post-tax returns.

Equity Funds: Short-term capital gains (STCG) are taxed at 20% for holdings under one year. Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.

Debt Funds: Both STCG and LTCG are taxed as per your income tax slab.

Hybrid Funds: Taxation depends on the equity-debt ratio. If equity exposure is over 65%, equity taxation rules apply.

Arbitrage Funds: Treated as equity funds for taxation purposes.

Active Funds vs Index Funds
Active funds aim to outperform the market and are managed by expert fund managers.
Index funds only mirror the market and may underperform during volatile periods.
For a 3-year horizon, actively managed funds provide better growth potential and risk management.
Importance of Regular Plans Over Direct Plans
Regular plans offer professional monitoring by a Certified Financial Planner (CFP).
CFPs optimise asset allocation and ensure timely portfolio rebalancing.
Direct plans lack advisory support, leading to missed opportunities or inefficient decisions.
Final Insights
For your Rs. 10,000 SIP, hybrid or short-term debt funds are ideal for balancing growth and stability. Arbitrage funds can also be considered for their low-risk profile.

For the Rs. 25 lakh lumpsum, dynamic asset allocation funds and corporate bond funds offer a balanced and low-risk investment approach.

By combining these fund types, you can achieve steady returns and protect your capital over the next 3 years. Consult a Certified Financial Planner to tailor the investments further to your needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

..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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