I am operating a NPS Account through SBI. They are investing my saving with UTI Mutual Funds (50+25+25). I want to change this into some other higher returns mutual funds. Kindly suggest me some best funds.

Ans: Please note, RankMF ratings ignore past performance and influence of brand or names, it mainly considers the quality of the portfolio and the margin of safety at with the NAV is currently available on real-time basis.

Top rated schemes of various categories at present are as under, you may select as per your requirement.

Equity - Large Cap Funds:

- LIC MF Large Cap Fund-Regular Plan-Growth

- Axis Bluechip Fund - Regular Plan - Growth

- Kotak Bluechip Fund - Growth

- Mirae Asset Large Cap Fund - Growth Plan

Equity - Mid Cap Funds:

- Motilal Oswal Midcap 30 Fund (MOF30)-Regular Plan-Growth Option

- DSP Midcap Fund - Regular Plan - Growth

Equity - Focused Funds:

- Axis Focused 25 Fund - Regular Plan - Growth Option

- Motilal Oswal Focused 25 Fund (MOF25)- Regular Plan Growth Option

Equity - Large & Mid Cap Fund

- BOI AXA Large & Mid Cap Equity Fund Regular Plan- Growth

- Canara Robeco Emerging Equities - Regular Plan - GROWTH

- Tata Large & Mid Cap Fund- Regular Plan - Growth

Equity - Multi Cap Funds:

- Motilal Oswal Multicap 35 Fund (MOF35)-Regular Plan-Growth Option

- JM Multicap Fund - Growth option

- UTI - Equity Fund-Growth Option

Ans: If you've selected active investment as your option, you can change the allocation 4 times in a year. You can also change your pension fund manager (PFM) once every year. The returns from different houses are more of less the same, so we suggest you increase your equity allocation a bit.

Ans: For a diversified portfolio with maximum returns over 5 years, consider allocating your investment across various categories:

Large Cap Funds: Invest in well-established companies for stability and steady returns.
Mid Cap Funds: Allocate a portion to mid-sized companies for potential growth.
Small Cap Funds: Include some investment in small, rapidly growing companies for higher growth potential.
Balanced Advantage Funds: These dynamically manage equity exposure based on market conditions for optimal returns.
Debt Funds: Provide stability and regular income to your portfolio.
By diversifying across these categories, you can potentially maximize returns while managing risks. It's essential to periodically review your portfolio and consult with a financial advisor for personalized guidance.

Ans: Your selection covers a range of fund types, which is good for diversification. Here's a brief assessment:

ELSS: Bandhan ELSS is a good tax-saving option, but ensure you're comfortable with the lock-in period.
Flexi-cap: Parag Parikh offers flexibility across market caps, good for long-term growth.
Small-cap: Both Quant and Axis small-cap funds can offer higher returns but come with higher volatility. Make sure you're comfortable with the risk.
Debt Funds: Axis banking and PSU debt fund is a relatively safer option, suitable for diversifying equity-heavy portfolios.
Equity Savings: PGIM India equity savings fund is a balanced fund with equity, debt, and arbitrage components, adding stability.
Corpus Estimation:
Assuming an average annual return of 10%:

Yearly Increment: 5%
Investment Period: 15-20 years
With these assumptions, you can accumulate a significant corpus. For a precise estimation, using a SIP calculator can help, but you're on a good path with these selections for long-term growth. Regularly review and adjust based on performance and market conditions.

Ans: It's important to set clear financial goals. Understand your risk tolerance before investing. As a young investor, you can take higher risks for higher returns. Aim for a diversified portfolio to balance risk and return.

Benefits of Actively Managed Funds
Actively managed funds offer better potential for higher returns. Professional fund managers select stocks based on research. This can outperform index funds, which just track the market. Actively managed funds are ideal for those seeking higher returns over the long term.

Importance of Diversification
Diversification spreads risk across different assets. Invest in a mix of equity, debt, and sector funds. This reduces the impact of any single investment's poor performance.

Benefits of Regular Funds
Regular funds come with the expertise of a Certified Financial Planner (CFP). CFPs provide personalized advice and regular monitoring of your investments. This ensures your portfolio remains aligned with your goals. Regular funds often perform better due to professional guidance.

Recommended Fund Types
Equity Funds: Suitable for long-term growth. Invest in large, mid, and small-cap funds.

Debt Funds: Provide stability and lower risk. Ideal for short to medium-term goals.

Sector Funds: Focus on specific sectors like technology or healthcare. High risk but high potential returns.

Systematic Investment Plan (SIP)
Consider starting a SIP with your Rs. 10 lakhs. SIPs allow you to invest a fixed amount regularly. This reduces the risk of market volatility. It's a disciplined approach to wealth creation.

Monitoring and Rebalancing
Regularly review and rebalance your portfolio. This keeps your investments aligned with your goals. Rebalancing helps maintain the desired level of risk.

Professional Guidance
Seek advice from a Certified Financial Planner (CFP). They can provide tailored investment strategies. Professional guidance helps you achieve your financial goals efficiently.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in