ASK MF Guru: Buy, hold or exit?

'I am 39 years old, looking at building corpus in next 10-15 years by investing in MFs.'

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

Rhitwik Ray Chaudhuri: I am 37 years old and my investments are listed below. My risk appetite is medium. 

A) Ongoing SIP

1. Franklin India Prima Plus - Growth   ₹ 2,500.00
2. Franklin India Bluechip Fund - Direct Dividend   ₹ 2,000.00
3. ICICI Prudential Value Discovery Fund - Growth ₹ 4,000.00
4. Kotak Emerging Equity Scheme-Growth   ₹ 3,000.00
5. Mirea Asset India Equity Fund - Regular Growth ₹ 3,000.00
6. SBI Magnum Multicap Fund - Direct Dividend ₹ 2,000.00

Omkeshwar Singh:

B) Mutual Fund lump sum Investment

1. Axis Long Term Equity Fund-Dividend  ₹ 20,000.00
2. Axis Long Term Equity Fund-Direct Dividend   ₹ 25,000.00
3. Franklin Build India Fund - Direct Dividend  ₹ 25,000.00
4. ICICI Prudential Long Term Equity Fund (Tax Saving) - Dividend ₹ 25,000.00
5. Kotak Tax Saver Scheme - Direct Plan - Dividend  ₹ 25,000.00

Please advise if I should hold, discontinue or switch or add any MF in my portfolio.

Omkeshwar Singh:

Growth option should be opted for Investments in Mutual Funds

Dividend reinvestment option attracts stamp duty on every reinvestment amount

Dividend pay-out option is tax inefficient post removal of DDT and also the pay-out value keeps changing and at time there may not be pay-out at all. If periodic pay-out is must, then Growth option of the scheme to be selected and SWP can be set up so that there is consistency in the pay-out amount.

Raj Sarkar: I am investing in following funds my age is 45 is there any need to invest or if it is kindly suggest funds for at least 10-15 years and amount to invest and can continue with below finds.

Omkeshwar Singh:

Yugal Kishore Soni: Thanking you in advance. Can you please review my MF portfolio below and advise on:

Omkeshwar Singh:

1. What to do with Active SIPs?

Avoid too many funds, beyond a point the diversification reduces the performance of the portfolio, stick to 4 to 6 great quality schemes; Consolidate the funds in 4-6 Funds

2. What to do with Stopped SIP (they have funds invested)

Can Exit and invest it in Consolidated Funds

Durgaprasad Mohapatra: I am a 39 years old person, looking at building corpus in next 10-15 years by investing in MFs. As of now i am into the below SIPs. Kindly advise, whether i am on track or any suggestion.

Omkeshwar Singh:

Santosh: I have 8 MF ongoing SIPs, which started recently, kindly review and advise details as below. further in addition to this if i want to invest sum lumpsum amount may 10 lacs, which better option you suggest

Omkeshwar Singh:

Santosh Iyer: I have investments in the following mutual funds. (all Growth option). Please advise whether I can continue with them or should change.

Omkeshwar Singh:

If you want Mr Singh's advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in 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.