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Do you have mutual fund queries?
Please mail your questions to getahead@rediff.co.in with the subject line, 'Ask Nikunj', along with your name, and Nikunj Saraf, Vice President Choice Wealth, (external link), will answer your queries.
Manjeet Jindal: I hope you're doing well. Thank you for providing your valuable insights. My query is:
I am looking to create a corpus of 10 crore for my daughter: for her studies 5 cr and wedding 5 cr. She is 10 months old, so her higher studies are ~17 years away and wedding ~25 years away.
I want Rs 10 cr for my daughter’s wedding and studies
I am planning to invest 50-60k for this every month. Currently, SIPs are as following:
All are direct funds with growth option, invested using Growth.I have invested 1 SIP so far, so 60,000 is invested. Request your review and inputs on if I need to trim the fund count or change some funds.
Nikunj Saraf: Hi Manjeet Jindal. In light of your current planning regarding MF investments, Schemes are good, but since US markets are too volatile at the moment you may avoid investing in Navi US Total Stock Market FoF (Fund of Funds).
TusharSingh: I am 36 yrs old and have an investment horizon of 20 yrs. My goal is to generate corpus for my daughter's higher education and for my retirement. My current investments in MFs are:
Mirae asset emerging bluechip: 4k
ICICI prudential bluechip: 4k
Axis bluechip: 4k
Parag parikh flexicap: 4k
SBI balanced advantage fund: 2k
Quant active fund: 5k
Canara robeco small cap: 4k
Motilaloswal midcap nifty150: 1k
Kindly suggest about other investments and if i need to relook at my portfolio for better diversification.
Nikunj Saraf: Hi Tushar Singh. It sounds like your portfolio report is in good shape. In accordance with your requirements, the current diversification is correctly invested.
Sultan Khan: I am 32 years working in a private company and looking to start my in business very soon. I want to invest 15k - 20k in monthly SIP for the duration of about 15 years so that I can get the corpus of around 1cr. Please help me with some of the good MFs that are Sharia Compliant.
Looking forward to hear from you.
Nikunj Saraf: Hello Sultan. For the goal of 1 Cr., you can start sip in MF of around Rs 15000 with the below-mentioned schemes:
Sanjeev Kumar: I am from Himachal Pradesh. I am Investing Rs 6000. Monthly through SIP. I would like to known that is my portfolio good enough to get better return in next 10 to 12 years. I want to accumulate 15 to 20 lakh in next 10 to 12 years.
1. Aditya Birla Sunlife Multi Cap Fund-regular growth -- Rs 1000
2. Invesco India Flexi Cap Fund-regular plan growth -- Rs 1000
3. Invesco Global Consumer Trends funds of Funds-Regular growth -- Rs 1000
4. Kotak Emerging Equity fund growth -- Rs 1000
5. Kotak tax saver fund growth (ELSS) -- Rs 500
6. Union long term equity fund growth regular plan -- Rs 1500
Nikunj Saraf: Hi Sanjeev Kumar. Following an extensive analysis of your portfolio, I recommend reconsidering all schemes except the Kotak Emerging Equity fund along with a portfolio reshuffle. Based on your goal of achieving 15-20 lakh in the next 10-12 years, your sip investment amount is appropriate.
You may consider the below schemes:
Malapati Rajasekhar: I am 32 working for an IT company. Recently I have started investing in SIPs with 15000 rs monthly sip and a step up of 5% annually. My goal is to reach 3-4 cr corpus in 15-20 years.
My portfolio is below: all are direct growth funds.
Quant Infrastructure Fund - 5000
Quant Midcap fund- 4000
Quant Active Fund- 2500
Canara Robecco small cap fund- 2000
Quant Large and Mid cap fund- 1500
Please suggest whether I am going in right direction with the above portfolio.
Nikunj Saraf: Hello Malapati. Your current investment portfolio shows that 80% of your investments are in one AMC i.e. Quant. Hence, I would suggest that AMC-wise diversification is required in your portfolio. In addition, I recommend increasing your monthly sips from 15k to 30k.
Priyanka Agrawal: I want to plan for my new born twins’ education abroad; their startup fund when they will be around 22-23 yrs and my retirement plan. I want return of minimum 25-30% CAGR in long term.
I can invest 50,000 monthly. Lump sum amount is of 300,000 too.
Nikunj Saraf: Hello Priyanka Agrawal. With multiple goals in the vision, it would be best to set goals first along with risk appetites for each and also quantify them to start with the investments. Start investing accordingly.
My recommendation would be to invest in categories such as midcap, small cap, and flexi cap funds when you have such a long time horizon. Additionally 25-30% CAGR is unrealistic over such a long horizon.
Rohit Patil: I am 31 yrs old. I am investigating in below schemes since last 2 years. My plan is to build a portfolio such that I can expect an amount of 1cr in next 8-10 yrs. (Goals-Daughters education, Clearing home loan). Request to give your appreciation of my existing portfolio and request to suggest if any changes to be done with required. Investment amount to fulfill the goal.
1) ICICI Prudential Technology Fund-2000
2) Nippon India Small cap Fund-1000
3) Parag Parikh flexicap Fund-1000
4) SBI Bluechip fund-1000
5) Axis small cap fund-1000
6) PGIM India Midcap opportunities fund-1000
7) Franklin India feeder franklin us opportunities fund-1000
8) Axis Bluechip fund-500
Total: 8.5k/Month
Nikunj Saraf: Hi Rohit. It appears that your portfolio has a good report. It would be advisable to reconsider the SBI AMC fund with better peer schemes.
The current amount of SIP is very low to achieve a corpus of 1 cr in 10 yrs; you should increase your SIP amount to 35,000 and above.
AmritPal Singh: Planning to start investment in following MFs from next month.Time Horizon 8-10 years.
Goal: To get 20%(or 33% more than nifty 50) return overall in 8-10 years, will pull out as soon as I see 20% (or 33%+ on nifty 50) in total at 8-10 years, otherwise will pull out individual MFs from 10-12years with best CAGRs achievable.
Planning to buy a house next year with a loan of 70 lakh, will clear the home loan with that money. All are direct.
1. Quant Active: 10K
2. Axis India Small Cap Nifty Index: 5k
3. Axis India Mid cap Nifty Index: 5k
4. Quant Infrastructure Fund: 3k
5. Quant Tax Fund: 3k
6. SBI Consumption opportunities: 3k
7. ICICI prudential IT Index Fund: 4k
Will add 0.5x more each month whenever NIFTY drops by 10% till the time it reaches back to peak. Would replacing Small or Mid cap Index funds with Smallcap fund Like SBI smallcap fund or Canara Robeco Small Cap fund or similar midcap funds be a better thing?
Nikunj Saraf: Hello AmritPal Singh. It would be advisable to invest in small cap & mid cap categories. You can start with the schemes you have chosen from the mentioned categories.
Ravi Purani: I am 36 Years OLD. I wish to retire at an age of 50 years. My Son is 5 years old and I have to just focus on his education, family health and happiness. I want to invest around 15 lakh as of now and will invest more from my monthly savings, but I don't understand where to invest and how to invest so I can get better returns. So please guide me where I should invest my funds. I wish to have at least 5 Core Corpus at the age on my retirement plan.
Nikunj Saraf: Hi Ravi, I understand your vision is for retirement and child education. With a lump sum amount of 15 lakh, you can invest in categories like large cap, Flexi cap, large & mid cap, mid cap fund, etc.
STP would be a better alternative to lump sum if you want to take advantage of markets. Also, to achieve the goal of Rs 5 crore, you may start investing 50k monthly in sip mode for the next 15 years.
Manjunath Savur: Good afternoon sir /madam I am 38 years old and since four years I am investing 6000rs per month via sip below four mutual funds and just I want to view my portfolio and could you please suggest me I can change any funds otherwise should I hold and l am looking for long term horizon and I am ready to take high risk also.
1. Absl flexi cap fund 1000
2. Mirae asset emerging equity fund 1500
3. Hdfc mid cap opportunitys fund 1500
4. SBI small cap fund 2000
Nikunj Saraf: Hello Manjunath Savur. Overall, your portfolio reports sound very promising. I must say that you have conducted thorough research on the market.
The HDFC AMC scheme may need to be reconsidered in comparison to peer schemes.
You can read more of Mr Saraf's answers here
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