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, Amit Jain, Quant Capital Advisors, on our show Mutual Fund Corner.
A: We won’t be able to comment on specific stock turning into a multi-bagger in 20 years. A sound, fundamentally, demand oriented, cash positive company always turn out to be a multi-bagger in equity space. In mutual fund space too there are funds across category, which have delivered such returns. And it’s always good to diversify your portfolio which mutual fund qualifies for.
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 multibagger stocks, which can give better returns than mutual funds. Rs 10 lakh per Rs 30,000 invested will come to 20 percent return per year.
Scheme Name Category Inception Date Corpus (in crs.) Returns 1 Year 2 Years 3 Years 5 Years 10 Years SI Aditya Birla SL Frontline Equity Fund(G) Large Cap 30-Aug-02 20227 -6.11 4.56 7.09 13.99 17.20 20.41 HDFC Top 100 Fund(G) Large Cap 03-Sep-96 14877 -0.27 7.33 8.54 14.45 16.46 19.65 Reliance Growth Fund(G) Mid Cap 08-Oct-95 6228 -11.74 2.09 6.20 16.39 16.21 21.78 Sundaram Mid Cap Fund(G) Mid Cap 19-Jul-02 5658 -15.26 -0.73 6.83 21.50 20.94 25.88 Aditya Birla SL Equity Fund(G) MultiCap 27-Aug-98 9419 -8.43 3.43 9.54 18.58 17.12 22.94 DSP Equity Fund-Reg(D) MultiCap 29-Apr-97 2447 -10.36 2.00 6.08 14.47 15.33 19.00
A: As per age profile, this fund suits your portfolio. Can’t suggest more as don’t know your entire portfolio. This fund provide capital appreciation and income distribution to the investors by using equity derivatives strategies, arbitrage opportunities and pure equity investments. It's a dynamic category of fund.
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.
Scheme Name Inception Date Corpus (in crs.) Returns 1 Year 2 Years 3 Years 5 Years 10 Years SI ICICI Pru Balanced Advantage Fund(G) 30-Dec-06 28616.2 0.62 5.60 7.07 12.30 15.29 10.50
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: SBI-Dual Adv Fund Series XXV Regular Growth: The fund seeks to generate income by investing in a portfolio of fixed income securities maturing on or before the maturity of the scheme and also to generate capital appreciation by investing a portion of the scheme corpus in equity and equity related instruments. The fund provides combined benefits of different asset classes, viz. equity and debt. A hybrid scheme endeavours to reduce the volatility of equity asset class and low return of debt asset class. Scheme suitable for conservative profile customers. Not clear about the second scheme.
Q: 41-year-old Jimmy George writes to us from Mumbai. Can you comment on my current SIP portfolio & suggest if changes need to be made.
Canara Robecco Emerging Equities Fund 15,000 Reliance Mutual ETF NV 20 10,000 L&T Mutual Midcap Fund 10,000 Kotak Mutual Emerging Equities Fund 10,000 Reliance Mutual Focused Equity Fund 15,000 Reliance Mutual Small Cap Fund 10,000 Aditya Birla Sun Life Pure Value Fund 10,000 Tata Retirement Savings Fund - Moderate Plan 20,000
A: Good list of schemes with aim to benefit via SIP route over long period, say up to retirement (your 41 now). More on mid and small category, but looking at very long term and staggered route will surely benefit and create alpha.
Q: 37-year-old Saket Wagh writes to us from Oman. Recommendation on the existing portfolio and revamp if needed. 1: 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? 2: Any other recommendation considering the overall portfolio? 3: 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 Details Current Value In Lakhs % Contribution DSP Small Cap Fund-Regular-Growth 6.30 12% HDFC Hybrid Equity Fund – Growth 8.79 17% HDFC Small Cap Fund-Direct-Growth 2.77 5% ICICI Prudential Bluechip Fund - Direct Plan - Growth 8.14 15% ICICI Prudential Equity & Debt Fund-Regular-Growth 1.18 2% ICICI Prudential Long Term Bond Fund - Regular Plan - Growth 5.53 10% L&T India Value Fund – Growth 3.21 6% L&T Midcap Fund – Growth 2.68 5% Principal Hybrid Equity Fund-Direct-Growth 4.29 8% Reliance Small Cap Fund - Direct Growth Plan Growth Option 3.33 6% SBI Blue Chip Fund - Regular Plan - Growth 6.83 13% Total 53.05 100% (By Class)
Scheme Details Current Value In Lakhs % Contribution Small Cap fund 12.40 23% Balanced Fund 14.27 27% Large Cap fund 14.97 28% Debt fund 5.53 10% Multicap fund 3.21 6% Mid Cap fund 2.68 5% Total 53.05 100% (Rs 2 lakh per month) Ongoing SIP /SWP
Fund name Per month Remark Reliance Small Cap 75000 SIP Principal Hybrid Equity Fund-Direct-Growth 50000 SIP ICICI Prudential Bluechip Fund - Direct Plan – Growth 75000 STP (From ICIC PruI Long term bond) Total 200000
A: Good portfolio. I would suggest to increase exposure to mid and multi cap looking at your age and you have long time ahead before retirement age. Can reduce from balanced category. Yes, since the market is at good entry level, you can add on to your portfolio if you have surplus.
Q: 30-year-old Saida Rao writes to us from Hyderabad. Provide some information about mutual funds with global diversification like PPFAS. Suggest how will be the future for them and suggest some funds in this category.
A: Good to have this kind of scheme in portfolio, where you get the benefit of oversees stocks along with domestic stocks. It gives good support to your portfolio. There is a fund from Edelweiss AMC providing in same category.
A: The fund has performed well over times. Since the market over two year has not been good, can’t expect this fund to perform better. This is a small cap fund and this category has taken a beating of more than 50 percent. Would suggest continue with SIP for long term, surely you will be benefited.
Q: 60-year-old Mukund Deshpande writes to us from Mumbai. Doing SIP of Rs 5,000 per month in the DSP Micro Cap Fund for last 2 years. Right now the fund is not giving the returns. I have the investment horizon of five more years. Should I continue with this fund? If not, please suggest me a better fund, which can be moderately aggressive.
Scheme Name Inception Date Corpus (in crs.) Returns 1 Year 2 Years 3 Years 5 Years 10 Years SI DSP Small Cap Fund-Reg(G) 14-Jun-07 4763.88 -19.57 -3.65 5.82 26.37 23.63 15.28
Q: 30-year-old Arun Yadav writes to us from Gujarat. I want to invest Rs 20,000 per month in SIP. Please advise.
A: Looking at your age (30 years) would suggest to invest aggressively via SIP route with 25 percent large Cap, 25 percent multicap and 50 percent mid and small cap.
Portfolio for Example
Scheme Name Inception Date Corpus (in crs.) Returns 3 Years 5 Years 10 Years SI ICICI Pru Bluechip Fund(G) 23-May-08 18966.3 9.39 14.26 18.70 13.75 Aditya Birla SL Equity Fund(G) 27-Aug-98 9418.98 9.54 18.58 17.12 22.94 Kotak Emerging Equity Scheme(G) 30-Mar-07 3114.3 7.95 23.80 19.05 11.02 L&T Midcap Fund-Reg(G) 09-Aug-04 3095.08 10.89 24.67 21.69 19.26 HDFC Small Cap Fund-Reg(G) 03-Apr-08 4947.83 14.64 20.13 20.29 14.04
A: Good fund. You can also look at L&T Tax Advantage Fund.
Q: 29-year-old Mohan Pradeep writes to us from Tamil Nadu. I want to start a SIP of Rs 7,000 per month, to make use of the tax advantage. I am looking at Aditya Birla Sun Life Tax Relief '96 - Direct Plan (G), is it a good fund for my purpose.
Scheme Name Inception Date Corpus (in crs.) Returns 3 Years 5 Years 10 Years SI Aditya Birla SL Tax Relief '96 29-Mar-96 6627.64 9.41 19.15 18.17 24.34 L&T Tax Advt Fund-Reg(G) 27-Feb-06 3180.99 10.00 16.09 17.67 13.70
Scheme Name Crisil Rating Aditya Birla SL Tax Relief '96 4 Star L&T Tax Advt Fund-Reg(G) 4 Star
Top 10 Holding of Birla Tax Relief 96 Company Sector %Assets Reliance Oil & Gas 7.58 Honeywell Autom Telecom 7.53 Gillette India Cons NonDurable 7.12 Bayer CropScien Chemicals 6.17 Pfizer Pharmaceuticals 5.73 GlaxoSmithKline Pharmaceuticals 5.04 Sundaram-Clayto Automotive 5.02 Thomas Cook Miscellaneous 4.56 HDFC Banking/Finance 3.98 Shoppers Stop Retail & Real Estate 3.41
Top 10 Holding of L&T Tax Advantage Fund Company Sector %Assets HDFC Bank Banking/Finance 6.18 Graphite India Engineering 4.98 TCS Technology 4.88 ICICI Bank Banking/Finance 4.08 HDFC Banking/Finance 3.87 ITC Tobacco 3.04 Larsen Engineering 3.01 Company Sector 2.85 HDFC Bank Banking/Finance 2.4 Axis Bank Banking/Finance 2.3
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