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Mutual Fund Corner: All your queries answered

Want to invest in mutual funds but don’t know how to go about it? Get all your mutual fund related queries answered by our expert, Vishal Dhawan, founder and chief executive officer, Plan Ahead Wealth Advisors, on our show Mutual Fund Corner.

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By CNBC-TV18 October 24, 2018, 12:01:34 PM IST (Updated)

Mutual Fund Corner: All your queries answered
Want to invest in mutual funds but don’t know how to go about it?


Get all your mutual fund related queries answered by our expert, Vishal Dhawan, founder and chief executive officer, Plan Ahead Wealth Advisors, on our show Mutual Fund Corner.




Q: 24-year-old Tejas Chandan writes to us from Mumbai. I am planning do a SIP of Rs 50,000 each month with a span of at least 10 years. Could guide me as of how should I allocate my portfolio and also some good schemes for a long run.

A: Considering the long term holding period that you have and your age, a combination of an index fund and a multi cap equity fund may be a good idea. The UTI Nifty Index Fund - Growth and PPFAS Long Term Equity Fund - Growth, combined with the HDFC Midcap Opportunities Fund to the tune of 40 percent, 40 percent and 20 percent would be recommended.




Q: 40-year-old Bhavani Sankar writes to us from Hyderabad. Can I now start SIP in mutual funds? Can I now start SIP in thee mutual funds: SBI Small Cap Fund (G), HDFC Small Cap Fund (G) and Reliance Small Cap Fund (G). Which is the best fund? Please advise me.

A: Since all the funds you have chosen are small cap funds, which tend to have a higher risk, you need to have a long term horizon of 10 to 15 years and continue your SIP over this period. Of these three, the HDFC Small Cap may be a suitable choice. However, we do recommend that you add this as a fund provided. You already have a portfolio of funds which are a combination of large and multicap funds and this is not the only scheme in your mutual fund portfolio.




Q: 27-year-old Akshay Shukla writes to us from Mumbai. My grandmother of six grandchildren wishes to invest Rs 30,000 per child with a time horizon of 20 years with the motive to contribute towards their education and future needs.  Mutual funds with average returns of 14 percent for 20 years, Rs 30,000 becomes Rs 3,82,305. I need your advise for multi-bagger stocks, which can give better returns than mutual funds (Rs 10 lakh per Rs 30,000 invested) which comes to 20 percent return per year.

A: Considering that the investment value is quite small, it's essential that you have a diversified portfolio to help achieve your long term objectives. Mutual funds offer the option to diversify and invest long term even with small amounts of capital and also offer you professional management. A combination of funds with good long term track records like Franklin India Equity Fund and ICICI Prudential Bluechip Fund are good options to consider towards the objective of saving towards long term goals, rather than looking for multibagger stock ideas.




Q: 31-year-old Karthikeyan R writes to us from Pune. Doing SIP of Rs 48,000 on monthly basis. I have been investing Rs 10,000 in Inves India Contra Fund (Contra), Rs 10,000 in Mirae Emerging Bluechip Fund (L&M), Rs 10,000 in Axis Focused 25 (Multi), Rs 10,000 in HDFC Small Cap (Small) and Rs 8,000 in Mirae Asset Tax Saving Fund (ELSS) monthly. I need good returns for my children's education. My goal is to achieve Rs 1.5 crore in next 10 to 15 years. Please let us know the portfolio looks okay or do I select any other fund to achieve my goal.

A: While your fund choices are good, we would recommend that you do not require a tax saving fund for the objective you are trying to achieve. Therefore, you could consider enhancing your exposure to the Invesco India Contra Fund and Mirae Emerging Bluechip Fund proportionately. As you get closer to your requirement of funds its important to move funds away from Equity funds to debt funds gradually to avoid the risk of monies being impacted due to Equity markets movements just when you need the funds.




Q: 29-year-old Suraj G writes to us from Bengaluru. Invested Rs 2,000 in HDFC Small Cap - Direct, Rs 2,000 in Parag Parik Long Term Equity - Direct, Rs 2,000 in Axis Focused 25 and Rs 2,000 in L&T Mid Cap since six months. My goal is to achieve Rs 2 crore in 10 years. I can increase all my SIP amount by Rs 3,000 each. Please advise.

A: Your goal for this level of SIP is rather unrealistic as you would need a 30 percent plus returns per annum to achieve your target of Rs 2 crore in 10 years. In case you wish to be realistic about your target, you would need to enhance your SIP significantly or lower your target corpus amount. Your fund choice is fine and in case you wish to enhancing your SIP by Rs Rs 15,000, we recommend adding an index fund UTI Nifty Index Fund for Rs 7,000 per month and enhance your existing SIP’s scheme by Rs 2,000 per month each.




Q: 58-year-old KS Jayadevan writes to us from Kerala. I have been investing Rs 1,000 per month in ICICI Balanced Advantage Fund since 2015. Please advise.

A: It's a good choice of a fund specially for investor you want automatically re-balancing of equity debt mix based on the valuations in the market. We would recommend to continue to stay invested in the same.




Q: 47-year-old Jagannadha Kumar G writes to us from Andhra Pradesh. I have invested Rs 1 lakh in SBI-Dual Adv Fund Series XXV Regular Growth and HDTV Opportunity Fund-1140 D Regular Growth.

A: Both the funds you are invested are close ended funds with tenures ranging from 4 years to 5 years and hence, you do not have much choice in the case. Ideally, you should avoid close ended funds due to lack of liquidity and option to exit in case of under performance. Considering the significant discount that would be offered in secondary market in case you choose to sell it, we recommend to stay invested. However, avoid close ended funds in the future.




Q: 41-year-old Jimmy George writes to us from Mumbai. Can you comment on my current SIP portfolio and suggest if changes need to be made. Rs 15,000 in Canara Robecco Emerging Equities Fund, Rs 10,000 in Reliance Mutual ETF NV 20, Rs 10,000 in L&T Mutual Midcap Fund, Rs 10,000 in Kotak Mutual Emerging Equities Fund, Rs 15,000 in Reliance Mutual Focused Equity Fund, Rs 10,000 in Reliance Mutual Small Cap Fund, Rs 10,000 in Aditya Birla Sun Life Pure Value Fund and Rs 20,000 in Tata Retirement Savings Fund - Moderate Plan.

A: We think you have too many funds in your portfolio and thus we think it's a good idea to reduce the number of funds. The portfolio is also very tilted to mid and small caps and thus we recommend you stop SIPs in following funds as part of consolidation: Aditya Birla Sun Life Pure Value, Kotak Emerging Equity Regular Growth and Reliance Small Cap Fund. The Tata Retirement Savings Fund is a fund we also recommend to stop due to its higher expense ratio. You could enhance your SIP in Reliance ETF NV 20 and Reliance Focused Equity instead and add one more index fund like the ICICI Pru Nifty next 50.




Q: 37-year-old Saket Wagh writes to us from Oman. Recommendation on the existing portfolio and revamp if needed.

List of fresh investment through SIP/STP: Intend to continue Rs 2 lakh per month for 8-10 months and bring this to Rs 1 lakh per month. Is the current choice of fund good and complement the existing portfolio?

Any other recommendation considering the overall portfolio?
Considering the current downfall in the market, I am ready to scale up my monthly investment from Rs 2 lakh to Rs 3 lakh. Do you recommend? If yes in which funds?

Current Investment  (By Funds)









































































Scheme DetailsCurrent value in lakh% contribution
DSP Small Cap Fund-Regular-Growth6.3012%
HDFC Hybrid Equity Fund - Growth8.7917%
HDFC Small Cap Fund-Direct-Growth2.775%
ICICI Prudential Bluechip Fund - Direct Plan - Growth8.1415%
ICICI Prudential Equity & Debt Fund-Regular-Growth1.182%
ICICI Prudential Long Term Bond Fund - Regular Plan - Growth5.5310%
L&T India Value Fund – Growth 33.216%
L&T Midcap Fund – Growth2.685%
Principal Hybrid Equity Fund-Direct-Growth4.298%
Reliance Small Cap Fund - Direct Growth Plan Growth Option3.336%
SBI Blue Chip Fund - Regular Plan - Growth6.8313%
Total53.05100%

(By Class)











































Scheme DetailsCurrent Value in lakh % Contribution
Small Cap fund12.423%
Balanced Fund14.2727%
Large Cap fund  214.978%
Debt fund5.5310%
Multicap fund3.216%
Mid Cap fund2.685%
Total53.05100%

Ongoing SIP/SWP - Rs 2 lakh per month



















Fund NamePer Month Remark
Reliance Small CapRs 75,000 SIP
Principal Hybrid Equity Fund-Direct-GrowthRs 50,000 SIP
ICICI Prudential Bluechip Fund - Direct Plan – GrowthRs 75,000 STP (From ICIC PruI Long Term Bond)

A: Your small cap exposure is probably excessive. Therefore, there is a need for you to need your SIP into Reliance Small Cap Fund. This way, you will be able to bring down your small cap exposure gradually. There are two kind of strategies that you are missing in your portfolio i.e. Index and International exposure. We would recommend you to look at UTI Nifty Index and DSP US Flexible Equity Fund. This gives you the benefit of low cost index investing as well as geographical diversification in the portfolio. ICIC Pru Equity & Debt fund is a very small part of your portfolio. As a part of rationalisation of your portfolio, you can look at exiting the fund as and when it becomes long term and topping up into the SBI Bluechip Fund.

Disclaimer: The views and investment tips expressed by investment experts on CNBCT-V18 are their own and not that of the website or its management. CNBC-TV18 advises users to check with certified experts before taking any investment decisions.
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