Do you have mutual fund queries?
Please mail your questions to getahead@rediff.co.in with the subject line, Ask Nikunj, along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answer your queries.
Anuj Saxena: Now I am 45, I have been investing since 2015 in lumpsum basis Aditya Birla Sun Life digital India direct and ICICI prudential infrastructure growth Direct. How should it be continued?
Nikunj Saraf: Hi Anuj. Your current investments are in sectoral IT and infrastructure. It's for the long term with a horizon of at least 8 years. For your future investments, I recommend you reduce your risk appetite by switching to moderate-risk -investments like multi-caps, midcap, and large & midcap.
Rajesh Khanna: Dear Nikunj, I am 46 years old and I have taken mf and I am continuing SIP since five years as follows:
- HDFC ELSS -1500
- ICICI prudential Multicap - 2000
- HDFC Top 100 growth -2000
- AXIS Focused 25 -2000
So suggest me should I continue or switch to some other fund. I want 25 Lakh fund in another 7 to 8 years
Nikunj Saraf: Hello Rajesh Khanna. Based on the current diversification of your portfolio, I would recommend reconsidering HDFC Top 100 fund sip. As an additional option for 25 lakh investments, you may consider midcap, smallcap, flexicap, and large-cap funds.
Furthermore, you can invest via STP instead of the lump sum in order to benefit from future market volatility.
Vaibhav Sandanshive: Please give any suggestion for my mutual investment. HDFC Multi cap - Weekly 1000 Rs Tata Small Cap Fund - Weekly 500rs Axis Growth Opportunity fund - Monthly 3000 Canara Robeco Mid Cap Fund - Monthly 5000 Canara Robeco Bluechip fund rs 500000 lump sum Tata consumption fund - 500000 lump sum
Nikunj Saraf: Hi Vaibhav. In light of your current investment, I recommend that you reconsider investing in Tata Small Cap Fund sip. In addition, you should diversify your portfolio by AMC for better returns. If you would like to diversify your portfolio further, you can introduce Flexi caps.
Krishna Murthi: I am 59 years old Male and I will continue in my private job for next five years. At present I don't have any saving and planning to invest Rs 1 lakh per month for next five years and I can allow my money to grow in MFs for next 10 years. I am ready to take calculated amount of risk to generate money for my use for next 20 years. Kindly advice for good MFs to invest on monthly basis and also how to pay IT once my profits exceed Rs 1 lakh per year since I will not disclose my investment to my employer but I am planning to pay IT through online after working.
Kindly send Website name and how to pay IT on yearly. In addition MF, kindly suggest Gold MFs, share, or any other safe investment since I need money without losing money.
Nikunj Saraf: Hello Krishna Murthi. With regards to your goals and requirement, you may invest in below mentioned schemes:
- HDFC Balanced Advantage Fund
- Quant Absolute Fund Fund
- Canara Robeco Bluechip Fund
- ICICI Prudential Bluechip Fund
- Kotak Equity Opportunities Fund
- Aditya Birla Sun Life Short Term Fund
- Axis Gold Fund
In the case of IT, it would be more beneficial to contact your CA directly.
Stanley Stevenson: Hi Nikunj, I want to buy a car worth 40 lakh in 2 years. How much should I invest through SIPsand in which to invest to reach that goal?
Also I wish to buy a plot and construct a house in 3 years. Instead of taking loan I want to invest in SIP and construct with my money so that I can save on interest and time. Please suggest.
I am 45 and can invest 1 lakh per month. Note: I don't know ins and outs of the Large, Mid and Small or any other financial terms, so please suggest some names where I can start investing. Thank you very much.
Nikunj Saraf: Hello Stanley Stevenson. To reach the goal of buying a car, you can start the sip with monthly amount of 1.47 lakh. Additionally for your home goal, you can start the sip in below mentioned schemes:
- HDFC Balanced Advantage Fund
- Mirae Asset Hybrid Equity Fund
- Canara Robeco Bluechip Fund
- ICICI Prudential Bluechip Fund
- SBI Large & Mid cap Fund
Girish R Warrier: I am 33 years old and i am investing currently in MF SIPs as follows:
Mirae asset large cap G - 4k Parag parekh flexi cap G - 1k Icici prudential bluechip G - 3k
Pgim india midcap opportunities G - 1.5k Quant active G - 1.5k
Axis long-term equity - 1k Franklin India focused equity - 5k SIP total - 17k
Leaving out current corpus build up, I want to build a corpus of 40 lakh in next 5 years. Is there any reallocation which I have to do? How would you suggest to add further SIPs? I can add up 10% every year.
Nikunj Saraf: Hi Girish. Your current investment seems aligned with the market. It appears that you have conducted thorough research on the mutual fund market. All schemes are finely selected. I would suggest reconsidering Parag Parikh AMC. Also to achieve the corpus of 40 Lakh, you can increase your sip amount to 45K per month in existing portfolio itself in midcap, multi-cap and large cap category. Furthermore, you may introduce large & mid cap category in your portfolio.
Andrew Fernandez: I am 53 year old & can save up to 10K per month. Need more ideas on what to do.
Nikunj Saraf: Hello Andrew Fernandez. I would suggest clarifying your vision for investment. Due to the fact that your time horizon is not mentioned. It would be best to set goals first along with risk appetites for each. Start investing accordingly.
My recommendation would be to invest in categories such as midcap, large cap, and flexi cap funds when you have such a long time horizon.
Sanjeev Kumar: I am investing Rs 6000 Monthly through SIPs from last 2 years, and planning to invest more. Sir below is my portfolio. It would be great help to me if you suggest some good fund by reshuffling the below portfolio, as fund 3 of the below portfolio, is underperforming from last three years.
1. Aditya Birla Sunlife Multi Cap Fund-regular growth -- Rs 1000
2. Invesco India Flexi Cap Fund-regular plan growth -- Rs 1000
3. Invesco Global Consumer Trends funds of Funds-Regular growth -- Rs 1000
4. Kotak Emerging Equity fund growth -- Rs 1000
5. Kotak Tax Saver Fund Growth (ELSS) -- Rs 500 6.
6. Union Long Term Equity Fund Growth Regular Plan -- Rs 1500
Nikunj Saraf: Hello Sanjeev. While analysing your portfolio, I would suggest reconsidering all schemes except Kotak Tax Saver Fund.
Sectoral/ Thematic funds are aggressive risk funds. They follow one sector or theme-based companies to invest. Also, it's for the long term with a horizon of at least 8 years. When investing in such a category, your investment proportion should not exceed 15-20% of your total investment.
Additionally explore the categories like large & mid cap, mid cap and flexi cap for your portfolio.
You can read more of Mr Saraf's answers here
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