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Mutual Fund Corner: All your queries answered

Mutual Fund Corner: All your queries answered

Mutual Fund Corner: All your queries answered
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By CNBC-TV18 Oct 26, 2018 6:30:40 AM IST (Updated)

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.

Want to invest in mutual funds but don’t know how to go about it?

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Get all your mutual fund related queries answered by our expert, Amit Jain, Quant Capital Advisors, on our show Mutual Fund Corner.

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.
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.
Scheme NameCategoryInception DateCorpus (in crs.)Returns
1 Year2 Years3 Years5 Years10 YearsSI
Aditya Birla SL Frontline Equity Fund(G)Large Cap30-Aug-0220227-6.114.567.0913.9917.2020.41
HDFC Top 100 Fund(G)Large Cap03-Sep-9614877-0.277.338.5414.4516.4619.65
Reliance Growth Fund(G)Mid Cap08-Oct-956228-11.742.096.2016.3916.2121.78
Sundaram Mid Cap Fund(G)Mid Cap19-Jul-025658-15.26-0.736.8321.5020.9425.88
Aditya Birla SL Equity Fund(G)MultiCap27-Aug-989419-8.433.439.5418.5817.1222.94
DSP Equity Fund-Reg(D)MultiCap29-Apr-972447-10.362.006.0814.4715.3319.00

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: 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.
Scheme NameInception DateCorpus (in crs.)Returns
1 Year2 Years3 Years5 Years10 YearsSI
ICICI Pru Balanced Advantage Fund(G)30-Dec-0628616.20.625.607.0712.3015.2910.50

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 Fund15,000
Reliance Mutual ETF NV 2010,000
L&T Mutual Midcap Fund10,000
Kotak Mutual Emerging Equities Fund10,000
Reliance Mutual Focused Equity Fund15,000
Reliance Mutual Small Cap Fund10,000
Aditya Birla Sun Life Pure Value Fund10,000
Tata Retirement Savings Fund - Moderate Plan20,000
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 DetailsCurrent ValueIn Lakhs% 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 – Growth3.216%
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%
(By Class)
Scheme DetailsCurrent ValueIn Lakhs% Contribution
Small Cap fund12.4023%
Balanced Fund14.2727%
Large Cap fund14.9728%
Debt fund5.5310%
Multicap fund3.216%
Mid Cap fund2.685%
Ongoing SIP /SWP   (Rs 2 lakh per month)
Fund namePer monthRemark
Reliance Small Cap75000SIP
Principal Hybrid Equity Fund-Direct-Growth50000SIP
ICICI Prudential Bluechip Fund - Direct Plan – Growth75000STP (From ICIC PruI Long term bond)
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.

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.
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.
Scheme NameInception DateCorpus (in crs.)Returns
1 Year2 Years3 Years5 Years10 YearsSI
DSP Small Cap Fund-Reg(G)14-Jun-074763.88-19.57-3.655.8226.3723.6315.28

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 NameInception DateCorpus (in crs.)Returns
3 Years5 Years10 YearsSI
ICICI Pru Bluechip Fund(G)23-May-0818966.39.3914.2618.7013.75
Aditya Birla SL Equity Fund(G)27-Aug-989418.989.5418.5817.1222.94
Kotak Emerging Equity Scheme(G)30-Mar-073114.37.9523.8019.0511.02
L&T Midcap Fund-Reg(G)09-Aug-043095.0810.8924.6721.6919.26
HDFC Small Cap Fund-Reg(G)03-Apr-084947.8314.6420.1320.2914.04

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.
A: Good fund. You can also look at L&T Tax Advantage Fund.
Scheme NameInception DateCorpus (in crs.)Returns
3 Years5 Years10 YearsSI
Aditya Birla SL Tax Relief '9629-Mar-966627.649.4119.1518.1724.34
L&T Tax Advt Fund-Reg(G)27-Feb-063180.9910.0016.0917.6713.70
Scheme NameCrisil Rating
Aditya Birla SL Tax Relief '964 Star
L&T Tax Advt Fund-Reg(G)4 Star
Top 10 Holding of Birla Tax Relief 96
RelianceOil & Gas7.58
Honeywell AutomTelecom7.53
Gillette IndiaCons NonDurable7.12
Bayer CropScienChemicals6.17
Thomas CookMiscellaneous4.56
Shoppers StopRetail & Real Estate3.41
Top 10 Holding of L&T Tax Advantage Fund
HDFC BankBanking/Finance6.18
Graphite IndiaEngineering4.98
ICICI BankBanking/Finance4.08
HDFC BankBanking/Finance2.4
Axis BankBanking/Finance2.3
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