Mutual Fund Queries

Is my mutual fund investment portfolio mix good

Whether my portfolio mix is good? What funds should I select for further investment? Currently, I have SIP's worth Rs 25,500 monthly in the following funds (all plans are direct and growth) 1) Axis Long Term Equity Fund - Rs 1000 (14% of total MF investment), 2) DSP BlackRock Tax Saver - Rs 2000 (3%), 3) Franklin India Smaller Companies Fund - Rs 8000 (46%), 4) Motilal Oswal Most focused Multicap 35 - Rs 7500 (19%), 5) Mirae Asset Emerging Bluechip - Rs 3000 (2%), 6) ICICI Prudential Value Discovery Fund - Rs 4000 (16%). My age is 27 and my investment horizon is 15 years plus. 1) Please suggest whether my portfolio mix of funds is good? 2) I want to make my monthly SIP amount to Rs 50,000. Whether should I invest in new fund or in existing funds? Please suggest new funds or amounts for existing funds? P.S - I have decreased SIP in Axis Long Term Equity Fund as it was not performing well compared to its peers?

Jun 1, 2017 by Harish Biyani, Mumbai | Mutual Fund

You have selected good funds for your SIPs and allocation of around 48% to midcap funds is also fine considering your age and investment horizon. Portfolio mix is good considering that you are also investing... Read More

In case of short term gains from liquid funds do my father need to pay tax

I am extremely grateful to you for your time and guidance, which cannot be more simple and lucid for a layman like me! If I may be permitted to take up a few more minutes of your time, I have just one question emanating from your mail - a) You have suggested putting a sum in Liquid Funds for 12 months and withdraw it equal monthly in one go. How about tax impact on such withdrawal. The Liquid Funds are categorised as Debt Funds or Non-Equity Funds and any withdrawal before 36 months of holding will attract STCG tax. I shall appreciate your guidance on this (For your ready reference, I recap - a) my father is a Super Senior Citizen (SSC) b) His present annual income from bank FDs is approx Rs.3,20,000 and c) Present tax exemption for a SSC is Rs. 5, 00,000. I thank you in advance once again for your time and guidance?

Jun 1, 2017 by R Kumar, | Mutual Fund

We are aware about the short term taxation of debt / liquid funds. Please note that in this case, the short term capital gain will be added to your father’s income and taxed according to his tax slab. But, we... Read More

Should my father go for SWP from balanced funds

My father (a Super Senior Citizen) has recently sold a property and is interested to invest part of the sales proceeds in MF, with a primary objective of getting monthly income. I have recommended to him to diversify into MF investment (his present investments are ONLY in Bank FDs) under MIP or SWP, with monthly dividend / withdrawal respectively. He is not risk averse and is open to investing even in a pure equity fund. Time horizon is minimum 5 to 7 years. I shall appreciate if you can clarify on the following points - a) I understand that the monthly dividend on MIP is tax free at the hands of the investor. But the pitfall is, it comes in our hands after a hefty deduction at source in the form of Dividend Distribution Tax (28.8%) for Debt Funds (Equity funds, I reckon, are exempt from DDT). Another risk is the swing in the dividend payout, which is a pure function of the market. Hence, my father is a bit reluctant to be enticed to a MIP. i) Do you still reckon MIP is a good option from a taxation point of view? Can you suggest some schemes for MIP which, historically, has exhibited relatively less volatility in the pay out? b) As regards SWP, I understand that any withdrawal before 12 months will attract Short Term Capital Gain Tax. Is my understanding correct? i) If my father is keen to diversify to SWP, how to start withdrawal from the first month and avoid STCG? Additional information to enable you to give guidance - My father presently earns an annual interest of approx Rs. 3,20,000 from Bank Fixed Deposits. His new corpus to diversify into MF is approx Rs. 25 to 30 Lakhs. I thank you in advance for your time and guidance?

Jun 1, 2017 by R Kumar, | Mutual Fund

Your understanding about the taxation of MIPs and balanced fund is right. Therefore, we are no deliberating on that again. We feel that since your father can take risk and even ready to invest in equity funds, you... Read More

Should I invest now as the market is scaling new highs

I wish to invest a lump sum in several equity funds with a long term horizon. But since the market is scaling new highs every other day, I am not sure whether it is the right time. The investible funds have been lying in my savings account for quite some time? I shall appreciate if you could enumerate the list of Equity funds in which I could presently invest, if advisable. I do not have regular income, and that is why I avoid SIPs?

May 31, 2017 by D Kamat, mumbai | Mutual Fund

Please note that if you are investing for the long term and clear about your goals or the reason for which you are investing then you should not look at market levels. Even though the market have scaled new... Read More

Is my fund mix good for my profile

I am 34, I do not have any debt; I am investing 5,000 INR per month in 6 schemes - ICICI Prudential Top 100 Fund, Birla Sun Life Equity Fund, Kotak Select Focus Fund, L&T Emerging Markets Fund, L&T Infrastructure Fund, DSPBR Small & Midcap Fund, all are regular growth options, is the fund mix okay for my profile. Time horizon is 5 to 10 years?

May 31, 2017 by Hemanth, Dubai | Mutual Fund

You have selected 6 funds to invest Rs 5,000. The total number of funds is bit high. You should have invested only in 2-3 funds and not more than that! Anyways, excepting L&T infrastructure Fund, rest of the... Read More

Which is the best mid and small cap fund

I am planning to invest some capital which I am planning to put in small and midcap funds and my plan is for 7 years. Please advise which fund to invest? How is Mirae Asset Fund and which is number one fund in small and mid cap category? Also how is L&T Emerging Businesses Fund?

May 29, 2017 by Ramchandran Ganpathy, | Mutual Fund

It is very difficult to say which is the number one fund in mid and small cap category or for that matter any of the mutual fund categories. You can have a look at the top performing mid and small cap funds from... Read More

Can I create a retirement corpus by investing in ELSS funds

Thanks for your valuable advises. I would like to know other than diversified fund whether by investing 11,500 monthly in ELSS funds for 30 years can build a retirement corpus of 4 crore. Which all ELSS Fund can be utilized for this purpose?

May 23, 2017 by Adheena Ram A, Kerala | Mutual Fund

You are most welcome. Yes, ELSS funds are also diversified equity funds. You can build a corpus of Rs 4 Crores by investing monthly Rs 11,500 in ELSS funds over 30 years. Some of the good ELSS funds are... Read More

Can I get corpus of 4 Crores if invest Rs 10000 per month

Can I get a retirement corpus of Rs 4 Crores after 30 years by investing Rs 10,000 monthly in ELSS. Please suggest the best funds and how many funds I should start?

May 22, 2017 by Adheena, Kerala | Mutual Fund

Good to note that you are planning for your retirement at the right age! By investing Rs 10,000 per month and assuming the returns to be @12% per annum, you can create a corpus of Rs 3.50 Crores which... Read More

Should I invest in lump sum or SIP

I have 30 Lacs with me. I want to Invest in MF for around 10 years. Kindly suggest some good funds. Should I go for Lump sum Investment or SIP?

May 22, 2017 by Dhiraj, Noida | Mutual Fund

As your investment horizon is 10 years you can go with investing in lump sum. However, which funds to invest in is a result of how much risk you can take and what is the investment goal etc. You have not... Read More

Can you answer some doubts about balanced funds

Thanks for your earlier mails and advise. I have a couple of more questions. How would the balanced funds perform in falling/down markets? Also is it advisable to take a dividend payout option or SWP? Or should I remove the capital appreciation after a year of investment? Are the balanced funds advisable for senior citizens? Kindly advise me on this?

May 22, 2017 by Abha Pandit, | Mutual Fund

Thanks for writing to us. Following is the answer to your queries - In the falling / down market, all the funds which has equity in it will fall / react or go down. This will reflect in correction of the NAV. Having said that... Read More