Mutual Fund Queries

Should I invest the balance fund SWP amounts in ELSS SIPs

My query is I am doing SIP in BSL Equity 5K & Reliance Small Cap 2K, since last 3 months for wealth creation for long term as I have some amount which will left with me after all my monthly expenses taken care. Along with sip done ELSS - investment too lump sum for tax saving. But the thing is after calculating all the SIP amount and money required for ELSS - investment upto March 2018. I found that I may be in short of money for continuation of SIP. So after reading SWP on your website thought of investing lump sum of 10 lacs in well balanced fund like Birla or ICICI and start SWP after 1 year to get rid LTCG for my withdrawals and will withdraw 8% annually as per your advise which will suffice me in continuing my sip and met with some other expenses. Lump sum amount which is in bank FDs maturing next month and interest rates are 7% so not willing to continue in FDs. Purposely avoiding investing in debt funds as I don't want to get into taxation mess like STCG with indexing or without indexing and all. I am moderate risk taker and want to build wealth for long time. Chosen equity balance funds for SWP as I read in your article that for long time horizon balanced funds are better than debt funds as saw in article for SWP for ICICI balanced and Birla Balanced 95 fund published on your website. Lastly appreciate the work and knowledge your site providing to understand mutual fund insights with simple understanding language. Kindly suggest the right thing?

May 21, 2017 by Ravi B, Kolhapur | Mutual Fund

At the outset, we thank you for the kind words about Advisorkhoj. Glad to note that you found our website useful as it is spreading knowledge about mutual funds and the language used by us is simple and... Read More

Am I investing in good SIP funds

I have been investing in following funds from two years through SIP 1. Franklin India Taxshiled Fund - 5000, 2. Axis Long Term Equity Fund - 2500, 3. Reliance Tax Saver Fund - 2500, 4.ICICI Prudential Dynamic Fund - 2000, 5. Birla MNC Fund - 1000. My time horizon is more than 10 years. Kindly suggest me about selection of funds?

May 21, 2017 by Deepak Kumar, Mumbai | Mutual Fund

You are investing in 3 very good performing ELSS funds and ICICI Prudential Dynamic is also a very good multi-cap Fund. Birla Sun Life MNC fund is a thematic fund and of late the MNC theme has not... Read More

Where to invest for 6 to 12 months

I want to invest for 6 months to one year duration not in the equity fund in which type of fund I should invest. I am told that in debt fund you have to invest for minimum three years. Kindly advice?

May 20, 2017 by Manoj Saxena, Ghaziabad | Mutual Fund

Yes, you should not invest in equity funds or long term income funds if your investment horizon is 6 to 12 months. You should invest in liquid funds or short term funds as your investment horizon is 6 to 12 months... Read More

Am I investing in a good mid and small cap fund

I am in 30 years and 2 do SIP in small cap fund, you suggest 4 type of small cap funds, from this I select Franklin Smaller Companies Fund. Sir please suggest about the fund, is it better choice or not. I do SIP of Rs 2,000 for 6 years. And also tell which is better between Franklin Small Companies Fund and DSP BlackRock Small and Mid Cap Fund?

May 20, 2017 by Om Prakash, Azamgarh | Mutual Fund

You have made the right choice by selecting Franklin India Smaller Companies Fund to invest through SIPs. It is one of the top performing funds in the mid and small cap category. Please also note that Franklin... Read More

Can you name some good ELSS and balanced funds

Retired Senior Citizen. Already made investment in SCSS of SBI, SBI DAF Series XVIII, LIC's Jeevan Akshay, HDFC Prudence Fund(D) & HDFC Balanced Fund(G) in lump sum. Continuing with monthly SIP's in Equity Mutual Funds. Please advise where to park some funds as well as the name of some well managed and rewarding Balanced and ELSS Funds?

May 20, 2017 by Kanak Kumar Das, Kolkata | Mutual Fund

You have invested almost in all schemes meant for retirees. Good that you have also invested in balanced funds and continuing with mutual fund SIPs. If you want to park some funds temporarily, then you can... Read More

As I am ready to take risk which is the best long term investment

I am a student right now and have monthly savings of around 2500. On an whole I can invest 30,000 in a year. Sir I would like to know the best place to invest. I am ready to invest this amount for say another 20 years. And I am ready to take higher risks for better returns. Can you suggest me the best way to invest in mutual funds and also some best AMC in which I should invest?

May 20, 2017 by Anshuman, Delhi | Mutual Fund

As you are ready to take high risk and willing to invest for 20 years through SIPs, you may choose diversified equity funds and mid & small cap funds. Equity as an asset class gives you the highest inflation... Read More

Is it right as I am timing my investments in small cap funds

I am investing in L&T Emerging Business Fund. I am retired and this investment I made 2 years back. My aim is protection against falling interest rates and inflation. Is it OK to continue investing. I am investing in Lump sum on dips?

May 20, 2017 by Rajendra Kulkarni, Nagpur | Mutual Fund

Being a retired person, investing in a small cap fund is not a wise decision. It seems you are trying to time the market as you said you are investing in lump sum in dips. Trying to time the market most of the... Read More

Should I exit ELSS investment after 3 years as return is low

I invested in 3 separate ELSS funds in 2015 Jan. AXis Long Term Equity Fund, Reliance Tax Saver & ICICI Prudential Tax Plan. Total investment was 60,000 with 20,000 in each. Now the net value is 57,000. What should I do after maturity in 2018. Should I wait or exit? I found that the CRISIL ratings for the above funds have fell from Rank 1/2 to 3/4. Honestly drop in the principal has made me worried?

May 20, 2017 by Naveen, Chennai | Mutual Fund

You have invested in 3 top performing ELSS funds. Remember, if you are investing in ELSS funds or any other equity fund, you should have an investment horizon of minimum 5 years and should not get... Read More

Where should I invest the redemption proceed of AXIS Hybrid Fund Series 8

We invested 15 Lakhs in Axis Hybrid Fund - Series 8 - Regular Growth Plan in January 2014. It is showing the present value as around 19.33 Lakhs. As I understand we did not get even a normal Bank FD returns. The lock-in period is ending in JULY 2017. Request you to please advise investing the maturity amount in a better performing MF for a period of 3 + years?

May 20, 2017 by Mahadev, Hyderabad | Mutual Fund

Axis Hybrid Fund - Series 8 - Regular Growth Plan is a close ended hybrid fund. You are right, the return of the fund has not been good and it delivered only 7.64% annualized returns (as on today) since launch... Read More

Please let me know good Mutual Fund MIP schemes

Please inform about the best tax free MIP schemes now. Crediting monthly or quarterly dividend or the appreciation after 1/2/3 years. Should be totally tax free?

May 18, 2017 by S.K. Das, Kolkata | Mutual Fund

If you are looking to invest for 1-2 years, then Mutual Fund MIP schemes are not suitable for you. For investing in Mutual Fund MIPs, your investment horizon should be minimum 3 years. You have written about... Read More