Mutual Fund Queries

Could you suggest some mutual fund scheme names for SIPs

I have been investing through SIP's into MF since 2011. Right now, I am investing 7.5K pm into each of below MF from Oct 2015. Canara Robeco Emerging Equities (Growth), Dsp BlackRock Focus 25 Fund - (Growth), Kotak Opportunities Regular Plan - (Growth), Most Focused Midcap 30 - Regular Plan - Growth Option. Should I continue? Any recommendation to switch into some other funds? I also want to additionally invest 25,000 per month into new MF's through SIP's. Any recommendations?

Jun 6, 2017 by Punit Ojha, Mumbai | Mutual Fund

The funds you are currently investing in through monthly SIPs are good and you should continue for the long term. Your current fund selection shows that you are a moderately high risk taker as you have invested... Read More

Why the one year returns are higher in mutual funds

Please accept my gratitude for the excellent work you are doing. This has been a very very informative website. I have a doubt regarding redemption of funds. I have invested in direct growth equity funds only ( large cap, multi cap, mid cap, small cap and equity oriented balanced funds). The returns of the funds, what I have noticed, is maximum mostly in 1 year horizon. Now suppose, if a fund gives 35% return after completion of 1 year of investment, what if I redeem that fund and invest again? My doubt is, how in this case, long term investment is beneficial for growth funds if returns are say, 35%,25%,22%,20% respectively in 1, 3,5,7 years. Shouldn't I redeem after 1 year for getting maximum returns? Please advise?

Jun 6, 2017 by Amit Pal, Kolkata | Mutual Fund

Thanks for the kind words about our website which we truly appreciate. Your assumption about 1 year return being mostly the highest is wrong! Let us see how? You found the one year returns higher as the... Read More

Suggest me good funds for my SIPs for 5 years

Please suggest me best mutual fund plan for me as a beginner. Want to invest Rs 25,000 monthly as SIP for 5 years with moderate risk?

Jun 6, 2017 by Kumaresan, Chennai | Mutual Fund

As you are a beginner, we suggest that you go with balanced funds for investing through monthly SIPs for 5 years. Some of the good balanced funds are ICICI Prudential Balanced Fund, HDFC Balanced Fund... Read More

Have I selected good schemes for my SIP

Thanks for such a great portal. It's really very helpful for financial literacy. I have some query. My priority is for long term and "highest and moderate" risk mutual fund. I am doing SIP for the following MF - 1) DSP BlackRock Tax Saver Fund Direct Plan - Growth: INR 1000, 2) DSP BlackRock Micro Cap Fund Direct Plan - Growth: INR 2000, 3) Kotak Select Focus Fund - Direct Plan - Growth: INR 1000. And I want to invest 5 Lac lump sum (SWP) and want at least 7-10K per month income. Please advice - 1) My MF selection for SIP is good? 2) For SWP, which MF I should select to get 7-10,000 per month income?

Jun 6, 2017 by Yogesh Saroya, Jaipur | Mutual Fund

Thanks for the kind words. Glad to hear that you found our portal helpful for financial literacy. Coming back to your query, We found that you have invested in very good funds from ELSS, midcap and diversified... Read More

Should I invest in lump sum or STP

I have 30 Lakhs of savings. I want to invest these money for 5 years. I can increase the time horizon if I still don't need them after 5 years. kindly suggest me should I invest through SIP of 40k-50k per month or go with lump sum investment? I can take risk. If we go with STP route how much difference will be there between STP and lump sum in one go? After reading advantages of SIP every where I am bit confused what should I do? Also about STP there are no any chart of STP mutual funds. It is easy to find funds for SIP but STP is tough as that is hard to choose 2 funds in/out?

Jun 6, 2017 by Dipa Ahuja, Gujarat | Mutual Fund

It is very difficult to say which would be the exact method - lump sum, SIP or STP - to invest your 30 Lakhs for next 5 years or more. However, instead of investing in one way, you can try two as mentioned... Read More

What should be the percentage of investments in each equity fund category

I have long term goals identified and amounts also for each goal with inflation into account. I am between a moderate and aggressive risk taker. I have around Rs 90,000 investment under Section 80C available which I want to do in ELSS. I request you to tell me the % of investment in Large Cap, Mid Cap, Mutli Cap, Small Cap and ELSS Funds?

Jun 6, 2017 by Gautham K, Chennai | Mutual Fund

Glad to hear that you have identified your long term goals and the know the goal amounts post inflation and have already made provisions for that. Please note that, there is no thumb rule as to what should be the... Read More

Which Mutual Fund SIP should I start for my children

I just came across your website, were I am planning to start investment of monthly small SIP starting with 1,000 Rs each for my two children. Son is of 9 years old and Daughter is of about 8 years old. And for my case, which would be the best performing mutual fund to earn good returns after 10 years. What approx returns can we expect? And I should do separate two SIP or one SIP of 2000 Rs monthly? And can we increase in multiples of 500 Rs in future? Please suggest?

Jun 6, 2017 by Rajani, Hyderabad | Mutual Fund

Great to hear that you want to start SIPs for your two young children. You can invest in large cap or diversified equity funds as I am sure your investment horizon is 5 years and above. You can start investing... Read More

In case of short term gains from equity funds do my father need to pay taxes

My apology for circling back to you. I have a question on the structure suggested by you i.e. invest Rs. 3 Lakhs in Liquid Fund to be exhausted fully in 12 months by equated withdrawal and invest rest in SWP with withdrawal starting after 12 months. I have a question which may sound a bit naive (or even stupid!) - please pardon me! Instead of a combination of Liquid Fund + SWP - a) Can I look at only SWP in an Equity Fund or a Balanced Fund (Equity oriented) and start withdrawal from the first month itself (say Rs. 25000 pm i.e. Rs. 3 Lakhs pa). b) From a taxation angle, this withdrawal will be treated as STCG (< 1 year). c) The total income of my father for the year will be approx Rs. 6 Lakhs (Rs.3.00 Lakhs he presently receives from Bank FDs + Rs. 3.00 Lakhs SWP). d) I can look at investing further in one of the avenues available under Section 80C to cover the excess of Rs. 1 Lakh over and above the exemption limit of Rs. 5.00 Lakhs available to Super Senior Citizens. Am I missing something in the above thought? I shall appreciate your time and feedback on the above?

Jun 5, 2017 by R Kumar, | Mutual Fund

No problem with your writing back to us as long as your queries are not resolved/ answered. Please note the following – Yes, you can look at doing SWP from equity or balanced funds. But, what if you do not... Read More

Can you give suggestions on my mutual fund portfolio

Thank you for creating such a nice portal. I am investing in Mutual funds through SIP from 4-5 years and will continue to invest for another 10-15 years. Currently I am doing Monthly SIPs of Rs. 10,500 which are divided among 6 funds in the following manner - Large Cap: Franklin India Bluechip Fund Rs. 2000, ICICI Pru Focused Bluechip Equity Fund Rs. 2000. Small and Mid Cap: Canara Robeco Emerging Equities Rs. 1000. Diversified: Franklin India High Growth Companies Fund Rs. 2000, Reliance Equity Opportunities Fund Rs. 1000. Balanced: Tata Balanced Fund Rs. 1000. ELSS: Axis LT Equity Fund Rs. 1500. Questions for you - 1) How is my portfolio and my fund selection? 2) I am looking at a corpus of 5 Crores at the end of 15 years from now, by looking at the above portfolio how much more should I invest in SIPs? 3) I am planning to increase my monthly SIP by Rs. 20000, which large cap or diversified funds you can suggest?

Jun 5, 2017 by Mrinmoy Bhattacharya, Bangalore | Mutual Fund

Even though you have selected some popular fund names from respective categories, we think it needs to be reshuffled little bit. Here you have few of our suggestions – Fund selection for large cap and mid... Read More

How much can I expect after 5 years if I invest in SBI Bluechip Fund now

If I will deposit 60,000 Rs in SBI Blue Chip by lump sum, then How much amount I will get after 5 years? If I will deposit 10,000 Rs in SBI Blue Chip by SIP method, then How much amount I will get after 5 years? Please suggest Lump sum and SIP calculator?

Jun 5, 2017 by Phani Raju Rayadurgam, | Mutual Fund

As you may know, returns in mutual fund are neither assured nor guaranteed. However, you can assume some rate of return based on how the funds in the respective categories delivered returns in the past... Read More