MFs to purchase your dream home in 5-7 years?

'I am trying to save up to 40,000 per month and my goal is for purchasing a house in next 5-7 years.
Is my current strategy correct?'

Omkeshwar Singh, Head, Rank MF, a mutual fund investment platform, answers your queries:

Vivek Pandey: My age is 31. I am trying to save up to 40,000 per month and my goal is for purchasing a house in next 5-7 years. I wanted to know if my current strategy is correct for dividing the amount or not and if the funds are right. 

SIPs in following:

• UTI equity fund - 10000
• Axis Bluechip fund - 10000
• Axis focused 25 - 5000
• DSP midcap - 5000
• Bank RD for 12 months- 10000

And also should I stop my RDs and add money into any debt funds (if Yes then which)? 

Omkeshwar Singh: The funds are good please continue and in case of RD, you may consider a good banking and PSU fund - Hdfc Banking And Psu Debt Fund - Growth Option

Sandip Swain: Hello Sir, need your suggestion on my MF investment.

Age: 40

Ongoing MFs:

1. SBI Bluechip Dir-G  Equity: Large Cap
2. SBI Focused Eqt Dir-G Equity: Multi Cap
3. DSP Midcap Dir-G Equity: Mid Cap
4. DSP Small Cap Dir-G Equity: Small Cap
5. ABSL Tax Relief 96 Dir-G Equity: ELSS
6. SBI Magnum MultiCap Dir-G Equity: Multi Cap
7. HDFC Hybrid Eqt Dir-G Hybrid: Aggressive Hybrid
8. ABSL Frontline Eqt Dir-G Equity: Large Cap
9. HDFC Mid-Cap Opp Dir-G Equity: Mid Cap
10. HDFC Small Cap Dir-G Equity: Small Cap 

Out of these I stopped SIP on ABSL Frontline Eqt Dir-G Equity; others are SIP going on. Investing since7 years around 70 K per month. Please suggest which one to be stopped from the above and want to add any new one??

Omkeshwar Singh: Please continue with 1, 2, 3, 5, 7, 9 and for others Small Caps can be consolidated in Axis Small Cap (i.e. 4,10), 5th can be replaced with UTI Flexi-Cap Growth

Manas Ranjan Bhoi: I just retired from my job. I get all my PF money and other compensation of around Rs 30 lakh. I want a regular monthly income of Rs 30000/pm. Please suggest me what to do.

Omkeshwar Singh: Sir, Invest equally in all these 3 funds with SWP of Rs. 10000 per scheme

1. Hdfc Banking And Psu Debt Fund - Growth Option

2. Idfc Government Securities Fund- Investment Plan—growth

3. Union Balanced advantage - Growth 

arvind agrawal: I made lumpsum investment(with date of investment and amount) in the following mutual fund schemes. First two schemes are giving negative returns and rest two schemes are giving very nomimal returns as compared to their peers. Pl advice what should I do. Whether I should continue or switch over to other schemes.

1. Nippon India Equity Hybrid Fund - RP - G December,2017 , 3L 
   2. Nippon India Tax Saver (ELSS)Fund - RP - G June.2017 , 1L
   3. ICICI Pru Equity & Debt Fund - RP- G  December ,2017 , 3L
   4 .Kotak Standard Multicap Fund -RP -G  September ,2017, 3L 

Omkeshwar Singh: You may kindly consider the below

1. UTI Flexi Cap – Growth
2. Axis Long Term Equity (ELSS) – Growth
3. DSP Quant Fund – Growth
4. Union Balanced advantage - Growth

Sarvesh Prabhu Konkar: I am 39 years old and I have invested in the following SIPs. Please review and let me know whether this is OK or do I need to change any of these four SIP's. I would also like to invest Rs 1 Lakh as lumpsum in Mutual Fund for 3 years tenure. Please refer good mutual fund to invest Rs 1 Lakh lumpsum.

1. Mirae Asset Emerging Bluechip Fund-Direct Plan - Growth - 7 years - Rs 4100.
Dec 7, 2020 to Dec 7, 2027.

2. Canara Robeco Bluechip Equity Fund - 3 years - Rs 3000.
Dec 7, 2020 to Dec 7, 2023.

3. Parag Parikh Long Term Equity Fund - 3 years - Rs 3000.
January 5, 2021 to January 5, 2024.

4. UTI Equity Fund - Growth - 3 Years - Rs 3000.
January 5, 2021 to January 5, 2024.

Omkeshwar Singh: Please continue with these funds and for lumpsum investment for 3 years you may consider Union Balanced advantage - Growth

Rajendra Singh: Sir, Please suggest some funds for swp of Rs 60000 per month. I am 57 and can invest 90 lakhs one time.

Omkeshwar Singh: Sir, invest equally in all these 4 funds with SWP of Rs. 15000 per scheme

4. Hdfc Banking And Psu Debt Fund - Growth Option

5. Idfc Government Securities Fund- Investment Plan--growth

6. Aditya Birla Sun Life Corporate Bond Fund – Growth

7. Union Balanced advantage - Growth

visalam muralidharan: We are 2 and both over 70 years. We have got 50 lac from sale of property after taking care of the investment needed to avoid capital gains tax.

Looking for mutual funds or any other safe avenue so that our future financial needs are taken care of considering the ever-increasing cost of living. Can we have a scheme that assures monthly income of around 15K and growth of the corpus for future needs, considering age?

Your expert advice please.

Omkeshwar Singh: Sir you may park these funds in debt funds with a monthly SWP of Rs.5000 from each of the below 3 schemes

1. Hdfc Banking And Psu Debt Fund - Growth Option

2. Idfc Government Securities Fund- Investment Plan--growth

3. Aditya Birla Sun Life Corporate Bond Fund - Growth

This will provide adequate money for monthly expenses along with capital appreciation

Mahesh: I am 58 years old and do not have much knowledge about MF/ Shares etc. I would like to invest about 10 / 12 lacs in any good reliable MF as a one-time investment for a period of 2 years. Can you pl guide me, sir?

Omkeshwar Singh: Sir you may consider the below 2 schemes – Objective is returns with capital preservation 

1. HDFC Short Term Debt Fund – Growth
2. ABSL Short Term Fund - Growth

mini maheshwari: I have lumpsum ICICI Prudential Balanced Advantage Fund (G) of 50000 since 7 years. Please suggest to hold or exit

Omkeshwar Singh: Please hold it’s a good fund

K Viswanathan: Can you please suggest a liquid fund that I can redeem in about a year and which pays equal to or more than FD interest. Amount I am thinking of investing is about Rs. 5 to 7 lakhs. Thanks for your advice.

Omkeshwar Singh: Liquid fund may not able to beat the FD returns however you may consider Short Duration Debt Fund – 50% in each of the below funds

HDFC Short Term Debt Fund – Growth and ABSL Short Term Fund - Growth

Karakala radhakrishna reddy: I am 45 years old. I have been investing in below funds for the last 4.5 years. Please suggest whether to continue or not. I want to invest for a total of 10 years that is for another 5.5 years. My goal is for my children's, who are 12+ and 9+ year old, education; also for my retirement income. All these funds are Regular - Growth funds.

• 1. Axis Long Term Equity Fund - 3000 p.m
• 2. Franklin Build India Fund - 3000 p.m
• 3. Hdfc Small cap Fund - 3000 p.m
• 4. Icici Balanced Advantage Fund \\ ICICI Next 50 Index Fund - 1000 \ 2000 p.,m
• 5. SBI Bluechip Fund - 3000 p.m

Omkeshwar Singh: You may continue with 1,4,5 and instead of 2 and 3 UTI Flexi-Cap Growth and Axis Small Cap can be considered

deepak bharti: I want to start investing in SIP but I am confused while choosing which gives me good return and safety too. I want to start investing with Rs 10000/ per month initially for 5 years duration. Please guide me to select the best SIP.

Omkeshwar Singh: Rs. 2500 in each can be considered

1. UTI Flexi Cap – Growth
2. Axis Bluechip – Growth
3. DSP Quant Fund – Growth
4. Union Balanced advantage - Growth

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.