Are schemes selected by me for my mutual fund SIPs good

I am having the SIP in following funds for past one-year plus without any guidance from any advisor:- Birla SL Dividend Yield Plus, HDFC Mid Cap Opportunities, MIRAE Asset Emerging Blue Chip, Franklin India Smaller Companies, DSPBR Micro Cap, HDFC Balanced, ICICI Prudential Balanced, BSL Balanced 95 HDFC Prudence, L&T India Prudence, Tata Balanced, HDFC Top 200, total monthly cash outflow is 47500. I will be retiring next year. I need your suggestion (a) Should I stop any of these? (b) Where should I park my post retirement corpus for a regular monthly tax free income, I am likely to receive a monthly pension of Rs 55000 + DA (income tax not included)? I am in 30% tax bracket and I am not likely to take up a new job?

Jul 12, 2017 by Saumitra, Jabalpur | Mutual Fund

Excepting HDFC Top 200 Fund, HDFC Prudence Fund and Birla Sun Life Dividend Yield Plus Fund, your selection of schemes for monthly SIPs is good. HDFC Top 200 Fund has not been performing at par with its top performing peers in the large cap category. You can consider any one of these top performing schemes from the large cap category - SBI Bluechip Fund or Birla Sun Life Frontline Equity Fund or Kotak Select Focus Fund.

HDFC Prudence Fund is a very popular fund in the balanced fund category but not really among the top performers. But, HDFC Balanced Fund from the same AMC is one of the top performing funds and thus you may consider switching to this fund.

Similarly, Birla Sun Life Dividend Yield Plus Fund has failed in beating category returns in the last 3 and 5 years and its rating has also gone down. Consider replacing this with a top performing diversified equity fund from Birla Sun Life Mutual Fund stable - Birla Sun Life Advantage Fund.

Please note that as you are investing in equity and balanced funds, your investment horizon should be minimum 5 years. We can understand that post your retirement next year, it might be difficult for you to continue the SIPs worth Rs 47,500 per month. In that case, you can stop the SIPs but remain invested in the funds and do not redeem till such time you get the desired returns or meet your investment objectives.

With regards to parking your retirement corpus, it will depend on your risk profile and the investment horizon. If you want to earn a regular earnings from mutual funds your investment horizon should be 5 years at least with the ability to take moderate to moderately high risk. Balanced Funds are good option wherein you can invest a lump sum amount and withdraw a fixed amount every month from your investments by way of SWP.

To know more about SWP, do read the following -

https://www.advisorkhoj.com/articles/Mutual-Funds...

https://www.advisorkhoj.com/post-your-queries...

Please also try our SWP calculators to see how it works - https://www.advisorkhoj.com/mutual-funds...

Hope the above was helpful to you.

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