0

0

0

0

0

0

0

0

0

personal finance | IST

Mutual Fund Corner: All your queries answered

Mini

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, Kaustubh Belapurkar, director, fund research at Morningstar Investment Adviser, on our show Mutual Fund Corner.

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, Kaustubh Belapurkar, director, fund research at Morningstar Investment Adviser, on our show Mutual Fund Corner.

Q: 30-year-old Rajani SK writes to us from Qatar. Planning to invest in mutual fund SIP monthly around Rs 20,000 for 10 years. My goal is Rs 30 lakh in 10 years. Please suggest me on investment.
A: The goal you have set for yourself is realistic. A monthly Systematic Investment Plan (SIP) of Rs 20,000 over the next 10 years should be able to help you meet your goal of Rs 30 lakh. We would recommend the following asset allocation: Invest 65 percent in equity and 35 percent in debt. Here are some fund suggestions for your portfolio.
Here are some fund suggestions for your portfolio:
Equity Funds
FundCategoryMorningstar Rating1 year Return3 year Return5 year Return
Aditya BSL Frontline Equity GrLarge-CapÙÙÙÙ3.3711.1517.05
Franklin India Bluechip GrLarge-CapÙÙÙÙ5.9010.0015.04
HDFC Top 100 GrLarge-CapÙÙÙÙ8.3912.9117.51
ICICI Pru Bluechip GrLarge-CapÙÙÙÙÙ10.5713.7117.18
Franklin India Prima GrMid-CapÙÙÙÙ1.1312.0524.53
HDFC Mid-Cap Opportunities GrMid-CapÙÙÙÙÙ0.8212.8826.06
Mirae Asset Emerging Bluechip GrLarge & Mid-CapÙÙÙÙÙ5.3817.7931.65
DSP Small Cap Reg GrSmall-CapÙÙÙÙ-6.8210.0730.61
Franklin India Smaller Companies GrSmall-CapÙÙÙÙ-3.8911.9927.27
HDFC Small Cap GrSmall-CapÙÙÙ12.7118.8623.05
Kotak Standard Multicap Reg GrMulti-CapÙÙÙÙ5.4813.4021.11
Debt Funds
FundCategoryMorningstar Rating6 months1 year3 years
Franklin India US/T Bd Instl GrUltra Short DurationÙÙÙÙÙ3.607.148.38
ICICI Pru Ultra Short Term GrUltra Short DurationÙÙÙÙÙ3.196.237.99
Aditya BSL Short Term Opp Reg GrShort DurationÙÙÙÙÙ2.153.897.46
Franklin India S/T Income GrShort DurationÙÙÙÙÙ2.595.727.97
ICICI Pru Short Term GrShort DurationÙÙÙÙÙ1.723.487.39
Kotak Bond S/T Reg GrShort DurationÙÙÙÙ1.903.726.76
Reliance Short Term GrShort DurationÙÙÙÙ1.313.046.73
UTI S/T Income Reg GrShort DurationÙÙÙÙÙ2.053.816.97
Franklin India Credit Risk GrCredit RiskÙÙÙÙÙ2.455.617.94
HDFC Credit Risk Debt GrCredit RiskÙÙÙÙ1.203.097.52
Kotak Credit Risk Reg GrCredit RiskÙÙÙÙ1.994.637.76
Aditya BSL Corporate Bond Reg GrCorporate BondÙÙÙÙÙ2.214.497.56
HDFC Corporate Bond GrCorporate BondÙÙÙÙÙ1.663.657.44

Q: 64-year-old Rupa Sarma writes to us from Gujarat. I want to invest about Rs 10 lakh in mutual funds, which will give a monthly income for my regular expenses. This money is presently invested in a fixed deposit , which will mature in this month. I have investments in UTI Value Opportunity Fund for the same purpose of monthly dividend used for my expenses. Besides, I also have investments in following mutual funds: HDFC Growth Opportunity Fund, HDFC Hybrid Equity, ICICI Pru Blue chip (Growth), ICICI Pru Infra (Growth), ICICI Pru Multi Asset Fund (Dividend), ICICI Value Fund (Cumulative), Reliance Growth Fund (Dividend), Reliance Power and Infra (Dividend), Reliance Tax saver (Growth), SBI Blue Chip (Growth), Tata Infra (Growth),Tata Large Cap (Growth), UTI Core Fund (Dividend), UTI Hybrid equity (Growth), UTI Infra (Dividend), UTI Long Term Equity (Growth), UTI Mid Cap (Growth), UTI Regular saving Fund (Growth), UTI Value Opportunity Fund (Dividend) and Axis Long Term Equity Fund (Growth). Kindly advise me whether I continue invested in these mutual funds or redeem or shift.
A: For monthly income, invest into an Ultra Short Duration or a Short Duration Fund. Portfolio is over diversified. Reduce the number of funds to 10-12 from the current 20+ funds.
FundCategoryMorningstar Rating6 months1 year3 years
Franklin India US/T Bd Instl GrUltra Short DurationÙÙÙÙÙ3.607.148.38
ICICI Pru Ultra Short Term GrUltra Short DurationÙÙÙÙÙ3.196.237.99
Aditya BSL Short Term Opp Reg GrShort DurationÙÙÙÙÙ2.153.897.46
Franklin India S/T Income GrShort DurationÙÙÙÙÙ2.595.727.97
ICICI Pru Short Term GrShort DurationÙÙÙÙÙ1.723.487.39
Kotak Bond S/T Reg GrShort DurationÙÙÙÙ1.903.726.76
Reliance Short Term GrShort DurationÙÙÙÙ1.313.046.73
UTI S/T Income Reg GrShort DurationÙÙÙÙÙ2.053.816.97

Q: 69-year-old Nandlal Hemdev writes to us from Mumbai. Portfolio is of my daughter. Now her target is to build a corpus of Rs 1 crore in 20 years. Kindly advise if her funds are correct and if she wants to add some amount should she add in the existing fund or any other funds. She has invested Rs 2,000 in ICICI Focused Blue Chip from last 3 years, Rs 3,000 in ABSL Frontline Equity from the last three years, Rs 3,000 in Kotak Select Focus and Rs 4,000 in ICICI Large & Midcap Fund. For the last two funds, SIP started four months ago.
A: Staring with a monthly SIP of Rs 12,000 and investing over a period of 20 years, makes the Rs 1 crore target achievable. The funds she has chosen are good. She can continue adding to the existing funds. We recommend increasing the SIP amount every year by at least 10 percent.
 
FundCategoryMorningstar Rating1 year Return3 year Return5 year Return
Aditya BSL Frontline Equity GrLarge-CapÙÙÙÙ3.3711.1517.05
ICICI Pru Bluechip GrLarge-CapÙÙÙÙÙ10.5713.7117.18
ICICI Pru Large & Mid Cap GrLarge & Mid-CapÙÙ4.9813.1215.49
Kotak Standard Multicap Reg GrMulti-CapÙÙÙÙ5.4813.4021.11

Q: 37-year-old Nara Thulasi Krishna writes to us from Andhra Pradesh. I have planned to invest in the below mutual funds with a long term plan of my retirement. But, now I am opening these mutual fund schemes as three years SIP plan with a thought of continuing further till 20 years basing on my life situations. Please comment on it and advise any necessary changes. I also request you to brief on the taxation part for NRI's on mutual funds. My considerations on choosing these schemes are: Crisil MF rankings June 2018, advise from my financial friend and past performance of these funds. I am planning to invest Rs 17,000 per month in Invesco India Contra Fund (Value Fund), Rs 17,000 per month in Canara Robeco Emerging Equities Fund (Large Cap & Midcap Fund) and Rs 17,000 per month in Axis Bluechip Fund (Large Cap Fund). Where to park Rs 20 lakh for long term as an emergency fund. Please advise.
A: Look to add at least a couple more funds to your portfolio. Value fund exposure to be set at 20-25 percent of your portfolio. Value funds help provide good portfolio diversification in a market cycle. Canara Robeco Emerging Equities has recently seen a change in fund manager. Ravi Gopalkrishnan quit a few months back.
FundCategoryMorningstar Rating1 year Return3 year Return5 year Return
Invesco India Contra Gr ContraNA13.6515.6525.65
Canara Robeco Emerging Equities Reg Gr Large & Mid-CapÙÙÙÙÙ3.8814.7731.54
Axis Bluechip Fund Gr Large-CapÙÙÙÙ13.4013.0316.36
Consider adding some of these funds.
FundCategoryMorningstar Rating1 year Return3 year Return5 year Return
Aditya BSL Frontline Equity GrLarge-CapÙÙÙÙ3.3711.1517.05
Franklin India Bluechip GrLarge-CapÙÙÙÙ5.9010.0015.04
HDFC Top 100 GrLarge-CapÙÙÙÙ8.3912.9117.51
ICICI Pru Bluechip GrLarge-CapÙÙÙÙÙ10.5713.7117.18
Franklin India Prima GrMid-CapÙÙÙÙ1.1312.0524.53
HDFC Mid-Cap Opportunities GrMid-CapÙÙÙÙÙ0.8212.8826.06
Mirae Asset Emerging Bluechip GrLarge & Mid-CapÙÙÙÙÙ5.3817.7931.65

Q: 34-year-old PR Sujoy writes to us from New Delhi. Franklin India Tax shield Growth of Rs 2,000, HDFC Tax Saver Growth of Rs 1,000, ICICI Prudential Long Term Equity Fund (Tax Saving) of Rs 1,000 and ICICI Prud Value Discovery Fund Growth of Rs 1,000. I have started all these from February 2018. I have National Pension Scheme (NPS) of Rs 4,700 per month started in 2013 deducted and Public Provident Fund (PPF) of Rs 10,000 per month started in 2013. Also, I have invested in stocks like Maruti, Bandhan Bank, L&T, HDFC AMC, Lemon Tree etc. Please let me know how to achieve target of Rs 10-15 crore. My purpose is for my child's education and he is two years old.
A: It will be very difficult to answer the question without knowing your portfolio value in stocks and your chosen equity and debt allocation in NPS. But here are some pointers:
Goals
Desired goal value: Rs 10 crore
Time horizon: 16 years
Suggested Asset Allocation
Equity: 75 percent
Debt: 25 percent
Monthly investment required: Rs 1.25 lakh
Rate of increase in monthly investment amount every year: 10 percent.

Q: 40-year-old Ajit Kumar writes to us from Allahabad. I have been investing Rs 2,000 each in DSP Small Cap Fund, HDFC Midcap Opportunity, SBI Magnum Multicap, Aditya Birla Sun Life Frontline Equity Fund and Aditya Birla Sun Life Tax Relief 96 Fund since 2016. There is no issue of time horizon. In addition, I have to invest Rs 5,000 also. Please recommend a suitable equity fund or to distribute among currently invested funds.
A: You can continue to invest in the existing funds.
FundCategoryMorningstar Rating1 year Return3 year Return5 year Return
Aditya BSL Tax Relief 96 GrELSSÙÙÙÙ9.5713.9722.80
HDFC Mid-Cap Opportunities GrMid-CapÙÙÙÙÙ0.8212.8826.06
DSP Small Cap Reg GrSmall-CapÙÙÙÙ-6.8210.0730.61
SBI Magnum Multicap Reg GrMulti-CapÙÙÙ3.8312.8921.52
Aditya BSL Frontline Equity GrLarge-CapÙÙÙÙ3.3711.1517.05

Q: Anit Chatterjee writes to us on Facebook. Which mutual fund has portfolio of consumption stocks. I want to invest in a mutual fund specifically consisting of consumer stocks.
A:
Fund1 year Return3 year Return5 year Return
ICICI Pru FMCG Gr16.2915.0815.34
Canara Robeco Consumer Trends Reg Gr4.6012.8619.86
Mirae Asset Great Consumer Reg Gr12.2416.3919.32
Reliance Consumption Gr3.856.5712.88
Sundaram Rural & Consumption Gr-0.2016.6421.97
Tata India Consumer Reg Gr11.90
SBI Consumption Opportunities Reg Gr14.8416.7615.96
Reliance ETF Consumption11.6014.69

Q: Hardik Desai asks, I have following mutual fund for my child's study: ABSL Frontline Equtiy Fund, HDFC Small Cap Fund, Franklin India Tax Shield Fund and HDFC Hybrid Equity Fund. Please advise all funds are good for long term.
A: You can continue to stay invested in these funds.
FundCategoryMorningstar Rating1 year Return3 year Return5 year Return
Franklin India Taxshield GrELSSÙÙÙÙ6.079.9018.99
Aditya BSL Frontline Equity GrLarge CapÙÙÙÙ3.3711.1517.05
HDFC Hybrid Eq GrAggressive AllocationNA2.8910.8019.18
HDFC Small Cap GrSmall CapÙÙÙ12.7118.8623.05

Q: Kaliswamy P writes to us on Twitter. Want to invest lump sum in Tata Digital Fund Growth.
A: Technology funds have done well off late due to sharp appreciation in tech stock over the last year. But they were languishing for the last few years prior. Sector funds should typically not form more than 10 percent of your portfolio and not more than 5 percent in any particular sector. Entry and exit become very important in sector funds.
A:
Fund1 year Return3 year Return5 year Return
Franklin India Technology Gr39.2811.5715.06
ICICI Pru Technology Gr52.8213.2320.17
SBI Technology Opportunities Reg Gr46.4911.7116.62
Tata Digital India Reg Gr64.47NANA
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.