‘Markets at all-time high: Book some MF profits’

Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:

Sunilranjan: Age 33, planning for retirement (1 Cr), child education (1 Cr) & buying a home (40 Lakhs).

I am having PPF and Gold Bond & following MFs.

Please suggest for addition/ deletion or any other guidance on funds from my portfolio.

ABSL Aditya Birla Sun Life Corporate Bond

IDFC Government Securities Investment Plan

Kotak Bond (Short Term Fund)

Axis Long Term Equity Direct-G

Mirae Asset Tax Saver Direct-G

Motilal Oswal Nasdaq 100 FoF

Canara Robeco Bluechip Equity Direct-G

Parag Parikh Long Term Equity Direct-G

PGIM India Midcap Oppurtunities Fund Direct-G

Axis Small Cap Direct-G

Omkeshwar Singh: This is a good combination of Debt and Equity Portfolio; however since amount is not provided, it would not be prudent to comment on the corpus that will be created for your required goals.

Prashanth Nandula: I am 46 years old and I have invested in the following MF through SIP from past 2 years. 

1. Axis Focussed 25 Fund – Growth – Rs. 5000/- per month 
2. HDFC Mid Cap Opportunities Fund – Growth – Rs. 5000/- per month

My investment plan is for another 14 years. I would like to add another Rs. 10,000/- per month SIP. Kindly advice me for which funds to invest. I am inclined toward SBI MFs. Kindly advise.

Omkeshwar Singh: Additionally, you may consider these:

Jaffer Mohiuddin: First of all i appreciate your unbiased advise being provided to many MF investors like me supporting us to grow our money and achieve our target.

I am 40 years old, high risk taking investor and having investment horizon of 20 years for wealth creation.

I am having following SIPs each 2,500 Rupees started one years back.

1. ICICI Nifty 50 Index Fund
2. ICICI Sensex Index Fund
3. Mirae Asset Emerging Blue Chip fund
4. Axis Growth Opportunities Fund
5. Parag Parak Flexi Cap fund
6. PGIM Flexi Cap Fund

Please advice if any fund shall be added or deleted in this portfolio. In addition can i expect 15 % return over 20 years horizon in this portfolio?

My purpose of selecting these funds is based on the good performance of Portfolio Managers not only in these funds but also in other funds in their fund houses like Neelesh Surana, Jinesh Gopani, Rajeev Thakkar & Aniruddha Naha.

Also i am planning to start SIPs on my wife’s name with 15,000 total monthly on the same above 6 funds.

Please advise shall i start the SIPs on my wife’s name on these same funds or shall i Start in following Funds.

1. HDFC Nifty Index Fund
2. HDFC Sensex Index Fund
3. Canara Robreco Emerging Blue Chip Fund
4. UTI Flexi Cap Fund
5. Axis Flexi Cap Fund
6. Motilal Oswal Nasdaq 100 FOF.

I will be grateful if you please advice on the above two queries.

Omkeshwar Singh: The existing as well as proposed portfolio (for your wife) are good; please continue and proceed with the new ones.

The returns will depend upon the prevailing interest rate scenario as well as the macroeconomic condition of the economy during this period, therefore a decent 12% to 15% returns can be expected.

Kindly be informed, it is the quality of the portfolio along with decent margin of safety that is the most important consideration for building or selection of funds for the portfolio.

Rashmi Menon: I have the following funds 

Axis Long term Equity- Regular – Growth 2,71,075

HDFC Short term 13,47,893

L&T Midcap Regular Growth 2,53,774

Mirae Asset Emerging Blue Chip -Direct – Growth 15,073

Mirae Asset Large Cap – Regular -Growth 10,94,709

Motilal Oswal Nasdaq FOF Direct Growth 1,00,445

PGIm India Global Equity opportunities Fund Direct Growth 45,568

SBI Focused Equity Fund Direct Growth 31,99,996

SBI Small Cap Direct Growth 2,14,137

Parag parikh Flexi cap 14,04,305

And the following SIPs:

L&T midcap – 10,000 

Mirae Asset Emerging Bluechip Fund – 2500

SBI Small Cap – 5000 

Would like to know the following questions 

I have 6 equity funds – 2 International funds- 1 Debt fund – are they too much? Should i reduce holding once the 1 year SHort term holding is up? Are my SIP s ok – i can invest another 25000 per month in SIPs 

Omkeshwar Singh: Please continue, no need to make changes at this juncture

Prashant Thakkar: I am 40 years old leaving in Mumbai and working in IT field. My wife is a teacher in school. I am currently investing 60K per month in below Mutual fund. I am aware the list is too long. Pl advise on 

1) Do I need any consolidation?

2) I have 15L surplus in form of FD kept as emergency funds.

I am also investing 50k per year in NPS tier 1 (7,01,510)

3) I have 20K investable fund. I have a confusion: should I invest in MF or do RD and replay every year against principal amount of an outstanding homeloan of 29.5L @7.2% ROI. Outstanding period 224 months.

I have a kid age 11 years. I would need some money when he will come in 9th/10th. 

I have an endowment policy maturing in 6 years. Policy will give me appx 6L on maturity. Planning to utilise that amount for my kids education. 

Hoping to hear from you soon.

Omkeshwar Singh:

Zia Hussaini: I want to invest in a Halal mutual fund, the only one I am aware of is Tata Ethical Mutual Fund. How much money should I invest in it for to create a good corpus for Retirement and long term capital appreciation? 

Omkeshwar Singh: Sorry am not aware of these type of funds

Samir Chauhan: I have invested Rs. 16,000 monthly in below mentioned scheme through SIP for retirement. Please suggest whether below mentioned scheme, can I continue or change. After 3 months, I will increase my SIP amount around Rs. 9000 per month so please suggest the scheme for same. All investment amount in direct plan only.

1) Axis Flexicap Rs.4000/- SIP
2) Kotak Flexicap Rs.3000/-SIP
3) Parag Parikh Flexicap Rs.2000/- SIP
4) Canara Robeco Bluechip Rs.3000 SIP
5) ICICI Bluechip Rs.90000/- Lumsum
6) Axis long-term Equity ELSS Rs.50000 Lumsum
7) DSP Tax saver Rs.200000 Lumsum
8) Kotak emerging Equity Rs.4000/- SIP

Omkeshwar Singh: Please continue

Karakala Radhakrishna Reddy: I am investing in below funds for the last 5 years in the form of SIP. My Objective is ‘Growth of my Income’. I will invest for another 5 more years. Please suggest to me whether below funds are suitable for my goal or do I need to change any of my funds.

1. Axis Long Term Equity Fund — 3000/- 

2. Franklin Build India Fund –3000/-

3. HDFC Small Cap Fund—3000/-

4. ICICI Balanced Advantage Fund —1000/-

5. ICICI Next 50 Index Fund—-2000/-

6. SBI Blue Chip Fund—3000/-

Omkeshwar Singh: Please continue

Hitesh Ingale: I have been investing the below MFs from 2019 as SIPs. Please suggest to me if they all are good funds and do I have too many funds? Should I make some changes? Or all is good here?

Mirae asset emerging gr – 5000pm – Retirement – Current Annual return -36.6%

Canara robeco emerging gr – 3000pm – Holiday in next 5yrs -Current Annual return-32.7%

Axis midcap – – 5000pm – Wealth creation 15yrs -Current Annual return-26.3%

Axis long term ELSS – 2000pm – TAX -Current Annual return-25.7%

SBI small cap – 5000pm – Wealth creation 15yrs -Current Annual return-56.8%

Axis small cap – 2000pm – Wealth creation 15yrs -Current Annual return-15%

Mirae Tax saver ELSS – 3000pm – TAX -Current Annual return-12.7%

Edelweiss balance advan – 3000pm – For Emergency fund for 3yrs – started recently

Total – 28,000 per month

Omkeshwar Singh: Please continue

Melwin Dethe: Hope this mail finds you well! I have monthly SIPs in the following schemes which I plan to continue for the next 10-15 years:

UTI Flexicap -10K
Canara Robeco Flexicap – 10K
Nippon India Pharma – 10K
Axis Focussed 25 – 40K
Parag Parikh Flexicap – 35K
UTI Equity fund – 10K
Kotak Emerging Equity – 10K
Canara Robeco Bluechip – 40K
Axis Small Cap – 10K
DSP Midcap – 5K

My plan is to have 3 Crore in next 15 years as retirement plan, 20L each for my daughters studies (total 40 L) which will be required in about 20 years time. Please advise on the above investments considering the inflation rate.

Omkeshwar Singh: Presently you are investing Rs. 1,80,000 per month, and in 10 years the corpus that can be created is appx . Rs. 4.5 crs and Rs. 10 crs in 15 years.

Alok Satlewal: I am investing Rs. 5000/month in motilal oswal flexi cap fund since Feb, 2018. It is giving low returns consistently as compared to peers in the same category. 

Please advice: should I switch from motilal oswal flexi cap fund to Parag parikh flexi cap fund, if Yes How?

Omkeshwar Singh: Yes, you may consider Parag Parikh Flexi Cap or UTI Flexi Cap. You would need to redeem from existing one and purchase into new one

Brutano Peixoto: I HAVE INVESTED (LONG TERM) AMOUNT IN BELOW MUTUAL FUNDS AS FOLLOWS:

1. HDFC FLEXI CAP FUND REGULAR PLAN GROWTH-RS 3000/-
2. KOTAK BLUE CHIP FUND GROWTH REGULAR-RS 2000/-
3. MOTILALOSWAL FLEXI CAP FUND REGULAR GROWTH- RS 2000/-,
4. SUNDARAM MID CAP FUND REGULAR GROWTH- RS 3000/-,
5. SUNDARAM MID CAP FUND DIRECT GROWTH- RS 3000/-,

I HAVE ALSO INVESTED (CLOSED ENDED, 3YEARS) AMOUNT IN BELOW MUTUAL FUNDS AS FOLLOWS:

1. SBI BLUE CHIP FUND REGULAR GROWTH-RS 2000/-,
2. DSP MID CAP FUND REGULAR GROWTH- RS 2000/-

KINDLY ADVISE IF ABOVE (LONG TERM INVESTIMENTS / SHORT TERM INVESTMENTS) ARE SUITABLE FOR WEALTH CREATION AFTER 15 + YEARS. WHAT WOULD BE AMOUNT OF PROBABLE WEALTH THAT WOULD BE ACCUMALATED AT END OF ABOVE TERM?

Omkeshwar Singh: Assuming these are monthly investment, you may continue for long term in these funds

Ranganath Bhartur: Pl advise me, which one to be continued & which one to be redeemed? My portfolio is as below:

1. Aditya Birla sun life flexi cap fund regular growth- 2,00,000/-
2. Franklin india flexi cap fund growth-1,00,000/-
3. Franklin india prima fund growth-1,00,000/-
4. HDFC hybrid equity fund reg plan growth-1,00,000/-
5. ICICI prud bal adv fund growth-1,00,000/-
6. L & T hybrid equity fund growth-2,00,000/-

Omkeshwar Singh: Please continue; we can review this after 6 months to 12 months

Shaktiraj: Sir, I would like to reduce the schemes. Please advice me. I am having lump sum amount invested in the following mutual funds in my portfolio:

1. Aditya Birla sun life focused equity fund Direct Growth
2. Aditya Birla sun life Gen Next fund direct growth
3. Aditya Birla Small Cap fund direct growth
4. Birla Sun life Equity fund Direct Growth
5. DHFL Pramerica diversified Equity Fund Direct Growth
6. DSP Blackrock Focus 25 fund Direct Growth
7. DSP Blackrock small and mid cap fund direct growth
8. Franklin India Prima Fund Direct Growth
9. IDFC Focused Equity Fund Direct Growth
10. L&T Midcap Fund Direct Growth
11. Reliance Mid and Small Cap Fund Direct Growth
12. Reliance3 Multi cap Fund
13. Reliance Small Cap Fund Direct Growth
14. SBI Blue chip Fund Direct Growth
15. Tata Midcap Growth Fund

And I am also having the following SIPs:

1. Aditya Birla Sun life Frontline Equity Fund Direct Growth Plan Rs.1000/ Weekly.
2. Axis Blue chip Fund Direct Growth Plan Rs, 2000/-monthly
3. HDFC Equity Fund Direct Growth Plan Rs,5000/- monthly
4. Kotak Standard Multi cap Fund Rs.555/- monthly
UTI Equity Fund Rs. 10000/- monthly

Omkeshwar Singh: Too many funds for meaningful long-term appreciation.

Continue with SIPs and Exit from lumpsum, as markets are at all time high.

Gyan Chaturvedi: My age is going to be 58 years in coming June and I have started in many Mutual funds since November 2020 through SIP in 17 mutual funds by investing Rs.22000/- per month. Kindly let me know the high yielding funds in which by investing such amount I may have a better corpus at the time of retirement. List is as follows:

1) AXIS BLUE CHIP FUND – GROWTH

2) AXIS MIDCAP FUND -GROWTH

3) DSP MIDCAP FUND- GROWTH

4) SBI FLEXI CAP FUND- GROWTH

5) JM LARGE CAP FUND-GROWTH

6) SBI FOCUSSED EQUITY FUND-GROWTH

7) SBI MAGNUM MIDCAP FUND-GROWTH

8) CANARA ROBECO BLUE CHIP FUND- GROWTH

9) MIRAE ASSET MIDCAP FUND-GROWTH

10) UTI VALUE OPPORTUNITIES FUND- GROWTH

11) ICICI PRUDENTIAL US BLUE CHIP EQUITY FUND-GROWTH

12) NIPPON INDIA US EQUITY OPPORTUNITIES FUND-GROWTH

13) NIPPON INDIA JUNIOR Be ESFOF -GROWTH

14) NIPPON INDIA SMALL CAP FUND-GROWTH

15) MOTILAL OSWAL FOCUSSED 25 FUND-GROWTH

16) MIRAE ASSET EMERGING BLUE CHIP FUND-GROWTH

17) KOTAK EMERGING EQUITY FUND-GROWTH

Sir, I can invest maximum Rs.30000/- in mutual funds through SIP, kindly suggest me in which MF, I should continue or switch over and also in which Suitable mutual fund.

Kindly suggest me on mail also so that I may adopt as per your advice as I am completely blank in this field.

Kindly revert back at an earliest for which I shall be highly obliged.

Omkeshwar Singh: Please continue only with 1, 2, 3, 6, 8, 15, 16, 17

Book profits from others as markets are at all time high.

Omkeshwar Singh: Please continue, all funds are decent

If you want Mr Singh’s advice on your mutual fund investments, please mail your questions to [email protected] with the subject line, ‘Ask MF Guru‘, along with your name, and he will offer his unbiased views.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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