‘Mutual Funds never provide guaranteed returns’

Do you have mutual fund queries?

Please mail your questions to [email protected] with the subject line, ‘Ask Nikunj‘, along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answers your queries.

Sunny Chirom: Sir, I am from Manipur currently working as Construction Engineer. I am planning to invest in SIPs for a period of 15 years. Kindly provide your guidance regarding – app to be used, where to invest and how much.

Nikunj Saraf: Hi Sunny Chirom

With such a long horizon you must invest in aggressive bets to attain the future goal amount you are targeting like mid-caps and small caps. Additionally, also have a portion of a large cap funds to provide stability to your portfolio.

Since you did not mention the target amount, it’s not possible to state the amount of SIPs to be done.

Sasmita Guru: Am a working professional of 40 yrs age. I have only a small amount in my PPF account. Earlier I had not planned any proper savings for future due to my irregular incomes. Now I have decided to go for some planned savings in Mutual funds through SIP/one-time payment. Please suggest some mutual funds which will give high returns.

Also I want to know should I go for NPS. My main financial goal is retirement planning. Also I want a guaranteed monthly income in case of job insecurities. Please guide me.

Nikunj Saraf: Hi Sasmita Guru. Getting started on your retirement planning is never too late. Diversify your asset allocation by investing in NPS along with mutual funds.

If you are seeking high-risk investments, I would recommend investing in small-cap, mid-cap, and flexi-cap funds. Additionally, you can invest in categories like balanced advantage and bluechip funds for low risk.

Mutual funds never provide guaranteed income; for that you may look for annuities.

A K Shabari: I have been investing Rs 5000 every month inTATA Nifty 50 Index Fund – Direct Plan since 1 Year. Please advise pros and cons. I will invest in the same in next 10-15 years.

Nikunj Saraf: Hello A K Shabari. I would advise diversifying your investments. Investing in one fund is not appropriate for a portfolio.

Your investment scheme is an average performer. Since your investment time horizon is long, invest in categories like large & mid-cap funds, flex caps, etc.

Rohan Das: Myself Male/ Married (3yr old son) / Age 34

I have no liabilities or loans. My Monthly in hand salary is INR 90k. I am investing a monthly sip of 17k & can add another 3K Sip in the Midcap Category (Kindly suggest I have Axis Mid cap in mind).

Can invest for another 15 years (as son turns 18 years); Target of 1.5 Cr to 2.0 Cr. Yearly increment of SIP 20%.

I am an moderate risk taker in nature & my MF portfolio:

Total Value: ₹5,53,146

Invested: ₹4,35,985

Current Return: ₹ 1,17,161 13.91% (XIRR)

Mirae Asset Emerging Bluechip: (Large & Midcap) /SIP / 5000

Mirae Asset Hybrid Equity Fund: (Aggressive Hybrid) /SIP / 4000

Axis Bluechip:  (LARGECAP) /SIP / 3000

UTI Flexi Cap Fund: (FLEXICAP) /SIP / 5000

Nikunj Saraf: Hi Rohan Das. Considering your requirements and risk appetite, your portfolio is well-positioned. Since you have already invested in Axis Bluechip and AMC diversification is also essential, I recommend investing in schemes other than Axis Mid Cap Fund.

The amount of your SIP can be increased up to 25k based on your child’s educational goals.

Abhishek Somayaji: I am from a middle class family with Monthly salary of 60k. My age is 32; my dream is to build a home within 10-12 years downline from now. I am investing from 2 years on 3 mutual funds. Two are ELSS funds and another is Flexi Cap.

ELSS funds SIP details:

Axis long term equity fund – 1500

Aditya Birla sun Life tax relief 96 – 1500

Flexi Cap fund is:

Kotak Felxi Cap fund – 1000

Now my aim is to create a wealth of Rs 80 lakh to 1 cr to build home. Not to save Tax from my salary now.

Should I stop ELSS?

Now I can start the investing journey with 10K on a monthly SIP.

Which mutual funds I should invest to create a wealth of 80Lakh to 1cr in 10-12 years?

Nikunj Saraf: Hi Abhishek. If your investment goal isn’t tax savings, I recommend stopping ELSS schemes.

Additionally, you can restructure your portfolio into different categories. Risk and AMC diversification should be considered.

An ideal portfolio would contain 3-4 schemes with a 10k sip amount. From your current 10k sips, I would suggest increasing it to 21k sips per month.

If 21k sips are not feasible, try adding semi-annually or annually to current sips. I hope this solves your concern.

Subodh Sarvaiya: I want to invest lumpsum rupees around 200,000 and can you let me know if the following funds are good to be invested as I have made small investments in the range of 20,000 and less in these schemes.

Which Schemes I should purchase and stay invested in order to make around 2 crore in the next 15 years?

HDFC Asset Allocator Fund of Fund

HDFC INdex Fund Nifty 50 Plan

HDFC Dividened Yield Fund

HDFC NIFTY 50 Equal weight

Axis Global Equity Alpha Fund of Fund

Axis Midcap Fund

Axis Bluechip

Axis Triple Advantage Fund

Axis ESG

Nippon Flexi Fund

SBI Balance Fund

Nikunj Saraf: Hello Subodh. While analysing your portfolio, it appears that you have targeted only a few AMCs.

You can choose HDFC Index plan and additionally consider these schemes:

  • Canara robbeco emerging equities
  • Nippon India growth
  • Mirae asset focused fund growth

Guiding Tongper: Mutual fund holdings:

Nippon India sensex plan direct fund

AXIS Small Cap fund

Pgim India Midcap opportunity fund direct growth

I invest 2000 every week in each fund

I also have Tata Digital Fund invested around 20000 and icici prudential technology fund invested around 50,000. I’ve stopped investing in both these and waiting for them till they gained something; planning to exit them since they are sectoral mutual fund.

Nikunj Saraf: Could you please elaborate. I have not understood your question.

Harish M Vaswani: I’ve recently re-started investments in MFs from Feb 2022. I wish to leave this as a legacy for my 3 grandchildren a girl aged 10yr, & two boys aged 5 & 4 yrs.

Kindly advise how long do I have to continue SIPs to achieve 5-6Cr?

Following is the list of MF investments:

HDFC Multi Cap Reg G: Monthly SIP 15K

SBI Multi Cap Reg G: Monthly SIP 25K

Mirae Asset Bal Adv RPG: Monthly SIP 25K

Tata Digital India RP G: Monthly SIP 25K

Quant Infra Reg Growth: Monthly SIP 15K

Quant Flexi Cap RPG: Monthly SIP 15K

Quant Mid Cap RPG: Monthly SIP 15K (Planning to start this month)

Kotak Emerging Equity RPG: Monthly SIP 15K

Canara Robeco Small Cap RP G: Monthly SIP 15K

Recently I discontinued SIPs in Kotak Flexi &Sundaram Small Cap. I replaced them with Quant Flexi & Canara Robeco Small Cap.I have also discontinued SIP in Mirae Asset Large Cap and I request you to suggest an Alternate Large Cap Fund. I was considering Nippon Large Cap / Quant Large & Mid Cap. Kindly opine or suggest alternates.

Nikunj Saraf: Hi Harish M Vaswani. I appreciate your current MF holding as well as the recent changes you have made. To achieve the corpus of 5-6 cr with 1.65 L as monthly SIP it would take around 10-12 years with 14% as expected CAGR.

Additionally, you can consider Nippon India Large Cap or ICICI Prudential Bluechip Fund as alternatives to Mirae Asset Large Cap fund.

Muslih Kottarath: I am 26 years old, earning around 60k a month. Please suggest some good MFs to do SIP in if I am planning to invest around 20k a month for my long term goals like retirement etc.

Nikunj Saraf: Hello Muslih Kottarath. Thanks for discussing your requirements and future goals. You can start SIPs in mf with the below-mentioned schemes;

Nippon India Growth Fund — 5,000<p class=”rbig”><strong>

PGIM India Midcap Opportunities Fund — 5,000

Quant Active Cap Fund — 5,000

ICICI Pru Bluechip Fund — 5,000

Total: 20,000

Rohit Kumar: My age is 44 years and I have investment some retirement fund and other conventional LIC policies. I want to invest in MFs to build corpus of 1 to 2 cr in next 8 to 10 years. Just started sip in Axis Bank and currently Axis Growth Opportunities Fund (2k), Axis Bluechip (2k) and Axis Smallcap (2k) holding.

Kindly suggest me different best funds and amount to invest to get my target.

Nikunj Saraf: Hello Rohit Kumar. For the goal of 1 Cr., you can start sip in mf of around Rs 38,000 with the below-mentioned schemes:

  • Mirae Asset Midcap Fund
  • Nippon India Small Cap Fund
  • Axis Small Cap Fund
  • Canara Robeco Emerging Equities Fund

You can read more of Mr Saraf’s answers here

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Choice Wealth Private limited, to the best of its ability, considered various factors — both quantitative measures and qualitative assessments, in an unbiased manner while choosing the fund(s) mentioned above. However, they carry unknown risks and uncertainties linked to broad markets, as well as analysts’ expectations about future events. They should not, therefore, be the sole basis of investment decisions. Investors are requested to review the prospectus carefully and obtain expert professional advice concerning specific legal, tax, and financial implications of the investment/participation in the scheme.

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