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Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries.
Dr Manojkumar Agarwal: Why doesn't your MF expert recommend "DIRECT" plans instead of Regular plans? Regular plans generally entail a commission of approximately 1% per year every year. Since he is asking the people to switch, redeem etc. he can say that go for direct plan, unless he is biased towards the agents by recommending regular plans since he is associated with a MF platform. Please ask him not to do so.
Why are you recommending only REGULAR plans for all the queries even for cases where the client has DIRECT investments? Please STOP this. You are supposed to give fair and unbiased advice to clients and not biased. At least stop mentioning REGULAR option. I hope you will do this.
Omkeshwar Singh: RankMF is research and mutual funds distribution platform of Samco Securities Limited. RankMF rates and ranks the schemes available on RankMF and therefore all our recommendations are in regular plan.
The mode -- physical or digital and the scheme option -- Regular or Direct is completely an investor's choice.
Investors opting for direct plans are well versed with investing in mutual funds and do it themselves (DIY investors) and therefore can look at the direct option of the recommended schemes.
Investors should take informed decision and if required take help of qualified professionals before investing in mutual funds.
Gurjit singh: Want to invest 30K in mutual fund for 6 years please advise me better fund; my age is 50 years.
Omkeshwar Singh: Considering the age profile and tenure of the investment, Hybrid category is better suited.
Puja Mukherjee: I am looking to make a lump sum MF investment, can you help me decide between Axis Long Term Advantage and BOI AXA Tax Advantage fund?
Omkeshwar Singh: Based upon the present portfolio of the schemes Axis Long term Equity is better option of the two; Canara Robeco Equity Tax Saver Fund Regular Growth can also be considered
Sharad Agarwal: Kindly arrange to give your Expert Advice on the Following MF Investments - Continue / Exit / Switch / Any other. The Cost of above Investments made in June 2017 is Rs 23 Lac and as of 14/9/2020 as per the Wealth Report of the above MF portfolios /the appreciation / Value is Rs 23.55 Lac (Over a period of 3.3 Years). I am a regular reader of your expert advice column on rediff.com.
Omkeshwar Singh:
1. ADITYA BSL REG SAV (G): Better option available Icici Prudential Regular Savings Fund - Growth
2. HDFC BALANCE ADVA RP (G): Better option available Union Balanced Advantage Fund Regular Plan - Growth
3. HDFC HYBRID EQUITY RP (G: Better option available Canara Robeco Equity Hybrid Fund Regular Growth
4. HDFC MID - CAP OPP RP (G): Better option available Dsp Midcap Fund - Regular Plan - Growth
5. L & T EMERGING BUSI RP (G): Better option available Axis Small Cap Fund - Regular Plan Growth
6. L & T INDIA VALUE RP (G): Better option available Axis Esg Equity Fund Regular Growth
7. HDFC LOW DURATION (G): Continue
8. L & T INDIA VALUE RP (G): Repeat Scheme
Kunal Cheema: Good evening Mr Singh. I would request your advice on my investments. I am Kunal and I am investing in mutual funds since Apr 2016, I have following investments In mutual funds:
Omkeshwar Singh:
1) HDFC Mid Cap- 6k (monthly sip since Apr 2016): Better option available Dsp Midcap Fund - Regular Plan - Growth
2) Mirae asset emerging blue chip fund-10k (monthly sip jul 2017): Please continue
3) Canara Robeco emerging equity- 5 k (monthly sip since jan 2019): Please continue
4) Invesco India growth opportunities-6k (monthly sip since jan2019) Please discontinue can merge it with either Mirae asset emerging blue chip fund or Canara Robeco emerging equity
5) Axis focused 25-1 k (monthly sip since jan 2018): Please continue
6) HDFC small cap- 4k (monthly sip since jun 2018): Better option available Axis Small Cap Fund - Regular Plan Growth
MOHD ZEESHAN: Why is it advised not to invest in too many funds? You often state "Too much funds for any meaningful returns". What is the rationale behind this? Does it have to do with the transaction charges or expense ratio? Is it not better to diversify?
Omkeshwar Singh: Avoid too many funds; beyond a point diversification reduces the performance of the portfolio. Benefits of Diversification diminishes beyond a point
Few facts: Based upon SAMCO Wealth Destruction Study
Perspective # 1: More than 55% of companies make negative returns
Perspective # 2: More than 70% of companies never beat FD Returns
Perspective # 3: Only 17% companies beat the 15% required equity return threshold
Conclusion: Less than 1 out of 5 stocks actually generate the return to justify the risk of equity
Equity oriented mutual funds are portfolio of these companies and therefore returns are dependent upon the performance of these companies; too many schemes increase the chances of bad quality holdings in overall portfolio.
Joydeep Mukherjee: I am investing in below funds for retirement corpus. I am 34 years old.
You are requested to look into my mutual fund portfolio and kindly advice me whether to add any fund for portfolio growth.
1. UTI equity fund Growth
2. JM Multicap fund Growth
3. Parag Parikh long term equity fund growth
SIP is Rs. 1000 each.
Omkeshwar Singh: Please continue with UTI and PPFAS schemes and kindly consider Axis ESG Fund – Growth instead of JM Multicap.
The following fund for education of my child:
Aditya Birla digital india fund direct for the next 15 years.
Omkeshwar Singh: Please continue; can be reviewed after sometime.
Vivek Vasudevan: I was working in Gulf for last 18 years and I put all my savings in 5 MF listed below on advice of a friend. Sir, kindly advice should I continue or switch the MF? Your valuable advice is highly obliged.
Omkeshwar Singh:
1. ICICI IPRUMF @ NAV -34.1456: Full Scheme name please
2. SBI Magnum Medium @ NAV -36.9829: Full Scheme name please
3. SBI Focused Equity Fund @NAV-131.4310: Please continue
4. AXIS Bluechip Fund @ NAV ‐27.5200: Please continue
5. Sundaram B.A.F @ NAV-10.55: Please continue
Mehul Gala: I have been investing in following funds through sip plz advice.
Omkeshwar Singh:
1) canara robeco emerging equities, regular growth: Please continue
2) nippon india equity hybrid fund, growth plan, growth option: Better option available Canara Robeco Equity Hybrid Fund Regular Growth
3) sbi small cap fund growth: Please continue
4) icici prudential equity and debt fund growth plan: Better option available Canara Robeco Equity Hybrid Fund Regular Growth
5) axis focused 25 fund growth plan: Please continue
6) Nippon India US Equity Opportunities Fund – Growth: Please continue
7) hdfc small cap fund regular growth plan: Better option available Axis Small Cap Fund - Regular Plan Growth
8) Franklin India Feeder - Franklin U.S. Opportunities Fund – Growth: Please continue
Lumpsum investment in following liquid fund
Aditya birla sun life liquid fund weekly dividend: Please continue
Icici Prudential liquid fund plan weekly dividend: Please continue
Anonymous: I have been investing in the below mentioned Mutual fund for 4 years through SIP. However I have not got the desired result. Can you please advise?
Omkeshwar Singh: Please continue with the large cap fund for ELSS Canara Robeco Equity Tax Saver Fund Regular Growth is a better option
Brij Garg: For past 3-4 yrs I have been investing in following MFs. Kindly advise in which funds I should continue & in which shift? Would you suggest any new good equity funds?
Omkeshwar Singh:
1. Axis Focused-25 fund growth (Investment About 52 %): Reduce the exposure and include Uti Equity Fund-growth Plan-growth and Parag Parikh Long Term Equity Fund- Regular Plan Growth
2. Axis Long Term Equity Fund Growth (About 35 %): Reduce the exposure and add Canara Robeco Equity Tax Saver Fund Regular Growth
3. Axis Blue Chip Fund (About 4 %): Please continue
4. Axis Equity Saver Fund (About 7 %): Kindly consider Axis Esg Equity Fund Regular Growth instead
5. ICICI Prudential Value Fund Series 20 (About 2 %): Please continue
Shantnu Chaurasia: I have SIP in three different large cap funds. Out of this Nippon is not performing. What should I do as I have observed a trend that particular mutual fund generates good return for some time and then it becomes Underperformer? Shall I continuously switch my investment as per the fund performance as it may happen that in future Axis Bluechip could underperform then again I have to switch out my investment to another fund?
1. Nippon india large cap (Investment till now Rs 80000) SIP 2000/month
2. Mirae asset Large Cap (Investment till now Rs 120000) SIP 5000/month
3. Axis Bluechip fund (Investment till now Rs 40000) SIP 3000/month
Omkeshwar Singh: Please continue with Mirae and Axis Large cap funds and may include Uti Equity Fund-growth Plan-growth and / OR Parag Parikh Long Term Equity Fund- Regular Plan Growth
Portfolio Review:
Once the funds and categories are identified and investment is made thereafter it becomes very important to periodically review the portfolio.
The frequency at which investments can be review in 6 months to a years' time depending upon the objective, tenure and the risk profile.
Few of the parameters that can be used when to review in between are as under.
1) Material change in the category of the fund due to regulatory requirement i.e. at present multi cap funds
2) Major events i.e. corporate tax rate cut that happened last year on 23rd September 2019, few industries / sectors had more benefit, few may have not; similarly, Covid 19 impacts (not panic part)
3) If all remains normal, then look at the portfolio churn ratio; lower ratio means the fund portfolio will change slowly and therefore the review can be once a year; however it the ratio is very high then constant review is required i.e. in 3 months.
4) If there is substantial underperformance vis-a-vis category as well as benchmark for couple of quarter, fund needs review
5) If there are certain realignment required in the set objectives / goals or change in risk profile considering dynamic nature of live.
MANISH SHAH: I have started investing In Mutual Funds recently. Can you please advise me. The Following SIP I Have opted. Can you Please advise some good mutual funds for 3-4 years Investment which yields good returns. Hope to get a positive response from your End.
1. Axis Midcap Fund
2. Axis Blue Chip Fund Growth
3. Mirae Asset Dynamic Bond - Regular Plan.
Omkeshwar Singh: All the above can be continued and if considering for 3 to 4 years then Hybrid is better option, you may consider Canara Robeco Equity Hybrid Fund Regular Growth
Usha Varma: I am 47 years old. Looking for investment through SIP in a mutual funds. Kindly suggest where should I invest: At present my my SIPS are given below. Also, I have to invest lumpsum Rs.150000/-. Kindly suggest.
Omkeshwar Singh:
SBI technology fund direct growth Rs.3000: Please continue
SBI blue chip growth plan -Rs.2000: Better option available Canara Robeco Bluechip Equity Fund Regular growth
Mirae asset focussed dividend reinvestment plan Rs.3000: Please continue, however Growth plan is better because post 1st July 2020, there is Stamp Duty of 0.005% applicable to reinvestment part as well.
HDFC multicap opportunities fund direct growth Rs.3000: Better option available Dsp Midcap Fund - Regular Plan - Growth
Navneet Kumar: I am 40 Yr old and investing 10k each in below MF from last 2 yrs. My target is to build corpus of 50L for kids education by 2026 and 2.5 - 3.0 cr retirement corpus by 2035. Suggest if i need to make changes. My monthly expense now is ~70K /month. Is the 3Cr corpus for retirement is good?
Omkeshwar Singh: For ELSS Canara Robeco Equity Tax Saver Fund Regular Growth is a better option available
For Large & Mid Cap Kotak is fine and Uti Equity Fund-growth Plan-growth OR Parag Parikh Long Term Equity Fund- Regular Plan Growth can be considered instead of Invesco India Growth Opportunities Fund – Gr
With 60,000 Monthly SIP, Required corpus for the Kid's Education can built in 8 years / 2026
For Retirement also the required corpus can be built with these monthly SIP by 2035
Investment of this retirement corpus in 2035 in three Debt and 1 Hybrid Balanced with a SWP 1,70,000 / PM will provide perpetually adjusted for inflation than for nearly 20 years post retirement.
bhosale balasaheb: Need your valuable advice regarding my SIP. I have invested in Aditya birla sun life focused equity fund Growth please give me your advice what I can do now?
Omkeshwar Singh: It's a decent scheme in its category, please be invested.
Viren Gandhi: Below are my SIPs, kindly suggest
Omkeshwar Singh:
1) Mirae Asset Emerging BlueChip Fund: Please continue
2) Kotak Multicap Fund: Uti Equity Fund-growth Plan-growth is better option
3) Motilal Oswal Multicap 35 Fund: Uti Equity Fund-growth Plan-growth is better option
4) L&T Midcap Fund: Please continue
5) SBI Small.cap Fund: Please continue
6) DSP small.Cap.Fund: Merge it with SBI Small Cap
kadudas srinath: I am 30 years old and new to MF. I am investing in 4 funds for the last 1 years as SIP, following are the details. My risk profile is moderate risk. Kindly advise whether to continue with these funds.
Omkeshwar Singh:
Mirae asset emerging bluechip fund direct growth- 2000 per month: Please continue
Axis mid cap direct place -1000 per month: Please continue
Nippon india Nivesh lakshya fund direct- dividend reinvestment- 1000 per month: Please continue, however Growth plan is better because post 1st July 2020, there is Stamp Duty of 0.005% applicable to reinvestment part as well.
Motilal oswal S&P 500 index fund direct-G- 1000 per month: Please continue
SANDESH KUMAR: I saw article on google where in it was mentioned that u will hep investor. Age: 43; Want to invest rs 25000 monthly long term, say 10 years. Kindly suggest the best MFs to invest. I am working in pvt sector. Hard worker and salary of 1lac per month. Need to get investment in proper direction.
Omkeshwar Singh: You may consider the below 4 funds for your monthly SIPs ( Rs. 6250 each)
1. Uti Equity Fund-growth Plan-growth
2. Axis Esg Equity Fund Regular Growth
3. Parag Parikh Long Term Equity Fund- Regular Plan Growth
4. Canara Robeco Emerging Equities Regular -growth
Santosh Singh: I saw your advices on rediff, that's impressive. Can you please suggest and guide on my below Mutual Funds. Are these good funds and correctly diversify. I am 40 years old, married, having a 5 year old kid. Planning to retire at age 60, so looking to generate retirement fund by this investment. I want to generate around 4 to 5 cr at retirement. can you please review my mutual funds and suggest? All these funds started from this month. With additional lumpsum investment of 2 lacs in distributed equally in all above funds.
Omkeshwar Singh:
Mirae Asset emerging blue chip -10000 rs per month: Please continue
Axis Blue chip - 10000 rs per month: Please continue
Sbi Nifty index - 3000 rs per month: Please continue
Hdfc Balanced Regular growth - 1000 rs per month: Better option available in Union Balanced Advantage Fund Regular Plan - Growth
Aditya Birla els 96 Tax saving - 3000 rs per month: Better option available in Canara Robeco Equity Tax Saver Fund Regular Growth
SBI Small cap - 10000 per month: Please continue
Abhishek Srivastava: It is requested to review my portfolio and suggest me the changes required. These investments are made for 10-15 yrs, keeping the goal of my 02 children studies and also my retirement in 2038. I want to accumulate a Corpus of Rs.90 lacs-1 cr.
Omkeshwar Singh:
Multi-cap
1. Axis focussed 25-Rs.1000/-pm
2. Parag Parikh Long Term Equity Fund-Rs.2000/-pm
Please continue
Small Cap
1. Axis Small Cap Fund-Rs.1000/-pm: Please continue
Mid-Cap
Invesco Mid-Cap Fund-Rs.3000/-pm: Please continue
Large Cap Fund
1. Axis Bluechip fund-Rs.1000/-pm
2. Canara Robeco Bluechip Fund- Rs.000/-pm
Please continue
Large & Mid Cap Fund
1. Axis Growth Opportunities Fund-Rs.1000/- pm
2. Canara Robeco emerging equities Fund-Rs.2000/- pm
3. Mirae Asset Emerging bluechip fund-Rs.1000/-pm
Please continue
International Fund
Franklin feeder US Opportunities Fund-Rs.2000/-pm: Please continue
The portfolio is decent with overall investment of Rs. 15000 per month for 15 years the required corpus will be difficult to achieve, suggested kindly do increase the SIP amount by 5% annually, with that the required corpus can be created
bharat jain: I am into business. I have 2 Sips of Rs. 5000 and lump sum invested in Franklin and Invesco. Sir basically I want your advice as I want to start another 3 Sips of Rs. 5000 in 3 different funds for long time (more than 5yrs). Also sir want to invest may be in same 3 SIPs u suggest Rs. 1.35 lac lump sum or STP. Pls advice sir.
Omkeshwar Singh: For SIPs you may consider the below 3 funds;
STP is better than Lumpsum, considering the present market and economic situation.
naseem ahmed: Hi, I have SIPs in the below MF, pls suggest if I can continue or exit, not seeing much returns.
ICICI Prudential Equity & Debt Fund - Growth- Monthly 5K: Canara Robeco Equity Hybrid Fund Regular Growth is better option in the same category.
HDFC SL ProGrowth Plus- Yearly 50 K – is a ULIP and it is advisable that for life a medical protection Insurance is better option; however when it comes to investments than Mutual funds should be considered.
Term Plan + Investments through Mutual Funds is better combination.
Ravindranath Pokale: I am 67 yrs old Senior Citizen, having limited income through pension and my bank savings. I want to invest in Mutual Funds, with short term growth (Not SIP). Kindly advise me, which Mutual funds, I should invest in, for good returns?
Omkeshwar Singh: Considering the profile and short term as 1 to 3 years, Short Duration debt funds are suitable option
You may consider the below 2 funds:
1. Aditya Birla Sun Life Short Term Fund - Growth
2. Hdfc Short Term Debt Fund - Regular Plan - Growth
Atul Verma: I am 33 years old i want to invest a small amount per month in SIP / MF. But i am not aware where i can invest and which is good for me please suggest me where i can invest.
Omkeshwar Singh: You may consider Uti Equity Fund-growth Plan-growth and / OR Parag Parikh Long Term Equity Fund- Regular Plan Growth
Md Naimulla: I have been investing in fixed deposits for the past 4 years. Now that FD rates are not anymore, i want to shift to Mutual funds. My investment is around 10 Lakhs. I am looking for short time capital appreciation (in around 1 year). Risk apatite is low to moderate. Kindly advice the appropriate MFs for me. Currently i am holding a small investment in SBI Equity Hybrid Fund Regular Growth. Please advice whether i should hold it or exit?
Omkeshwar Singh: For investments for 1 year debt is better option and the categories that can be considered is Low duration fund; Risk of these funds are Moderately Low
Few funds that can be considered are as under:
Hdfc Low Duration Fund - Retail - Regular Plan - Growth
Aditya Birla Sun Life Low Duration Fund - Growth-regular Plan
Hybrid – Aggressive i.e SBI Equity Hybrid Fund Regular Growth has moderately high risk and better fund in this category is Canara Robeco Equity Hybrid Fund Regular Growth
niraj kalra: I am a 60yrs old earning sufficiently for two of us for day to day life. I have 30 lakhs to invest. Considering my age please suggest me 5-6 mutual fund schemes where i can get decent returns with not very long time horizon.
Omkeshwar Singh: Considering the profile and corpus, Rs. 7,50000 to be invested in 4 funds, 3 debt and 1 hybrid balanced advantage category.
The funds suggested are as under:
a) Sbi Magnum Gilt Fund Regular Growth
b) Hdfc Banking And Psu Debt Fund - Regular Growth Option
c) Icici Prudential Corporate Bond Fund - Growth
d) Union Balanced Advantage Fund Regular Plan - Growth
Illustration: Dominic Xavier/Rediff.com
If you want Mr Singh's advice on your mutual fund investments, please mail your questions to getahead@rediff.co.in with the subject line, 'Ask MF Guru', along with your name, and he will offer his unbiased views.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.