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
| Fund | Category | Morningstar Rating | 1 year Return | 3 year Return | 5 year Return |
| Aditya BSL Frontline Equity Gr | Large-Cap | ÙÙÙÙ | 3.37 | 11.15 | 17.05 |
| Franklin India Bluechip Gr | Large-Cap | ÙÙÙÙ | 5.90 | 10.00 | 15.04 |
| HDFC Top 100 Gr | Large-Cap | ÙÙÙÙ | 8.39 | 12.91 | 17.51 |
| ICICI Pru Bluechip Gr | Large-Cap | ÙÙÙÙÙ | 10.57 | 13.71 | 17.18 |
| Franklin India Prima Gr | Mid-Cap | ÙÙÙÙ | 1.13 | 12.05 | 24.53 |
| HDFC Mid-Cap Opportunities Gr | Mid-Cap | ÙÙÙÙÙ | 0.82 | 12.88 | 26.06 |
| Mirae Asset Emerging Bluechip Gr | Large & Mid-Cap | ÙÙÙÙÙ | 5.38 | 17.79 | 31.65 |
| DSP Small Cap Reg Gr | Small-Cap | ÙÙÙÙ | -6.82 | 10.07 | 30.61 |
| Franklin India Smaller Companies Gr | Small-Cap | ÙÙÙÙ | -3.89 | 11.99 | 27.27 |
| HDFC Small Cap Gr | Small-Cap | ÙÙÙ | 12.71 | 18.86 | 23.05 |
| Kotak Standard Multicap Reg Gr | Multi-Cap | ÙÙÙÙ | 5.48 | 13.40 | 21.11 |
Debt Funds
| Fund | Category | Morningstar Rating | 6 months | 1 year | 3 years |
| Franklin India US/T Bd Instl Gr | Ultra Short Duration | ÙÙÙÙÙ | 3.60 | 7.14 | 8.38 |
| ICICI Pru Ultra Short Term Gr | Ultra Short Duration | ÙÙÙÙÙ | 3.19 | 6.23 | 7.99 |
| Aditya BSL Short Term Opp Reg Gr | Short Duration | ÙÙÙÙÙ | 2.15 | 3.89 | 7.46 |
| Franklin India S/T Income Gr | Short Duration | ÙÙÙÙÙ | 2.59 | 5.72 | 7.97 |
| ICICI Pru Short Term Gr | Short Duration | ÙÙÙÙÙ | 1.72 | 3.48 | 7.39 |
| Kotak Bond S/T Reg Gr | Short Duration | ÙÙÙÙ | 1.90 | 3.72 | 6.76 |
| Reliance Short Term Gr | Short Duration | ÙÙÙÙ | 1.31 | 3.04 | 6.73 |
| UTI S/T Income Reg Gr | Short Duration | ÙÙÙÙÙ | 2.05 | 3.81 | 6.97 |
| Franklin India Credit Risk Gr | Credit Risk | ÙÙÙÙÙ | 2.45 | 5.61 | 7.94 |
| HDFC Credit Risk Debt Gr | Credit Risk | ÙÙÙÙ | 1.20 | 3.09 | 7.52 |
| Kotak Credit Risk Reg Gr | Credit Risk | ÙÙÙÙ | 1.99 | 4.63 | 7.76 |
| Aditya BSL Corporate Bond Reg Gr | Corporate Bond | ÙÙÙÙÙ | 2.21 | 4.49 | 7.56 |
| HDFC Corporate Bond Gr | Corporate Bond | ÙÙÙÙÙ | 1.66 | 3.65 | 7.44 |
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.
| Fund | Category | Morningstar Rating | 6 months | 1 year | 3 years |
| Franklin India US/T Bd Instl Gr | Ultra Short Duration | ÙÙÙÙÙ | 3.60 | 7.14 | 8.38 |
| ICICI Pru Ultra Short Term Gr | Ultra Short Duration | ÙÙÙÙÙ | 3.19 | 6.23 | 7.99 |
| Aditya BSL Short Term Opp Reg Gr | Short Duration | ÙÙÙÙÙ | 2.15 | 3.89 | 7.46 |
| Franklin India S/T Income Gr | Short Duration | ÙÙÙÙÙ | 2.59 | 5.72 | 7.97 |
| ICICI Pru Short Term Gr | Short Duration | ÙÙÙÙÙ | 1.72 | 3.48 | 7.39 |
| Kotak Bond S/T Reg Gr | Short Duration | ÙÙÙÙ | 1.90 | 3.72 | 6.76 |
| Reliance Short Term Gr | Short Duration | ÙÙÙÙ | 1.31 | 3.04 | 6.73 |
| UTI S/T Income Reg Gr | Short Duration | ÙÙÙÙÙ | 2.05 | 3.81 | 6.97 |
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.
| Fund | Category | Morningstar Rating | 1 year Return | 3 year Return | 5 year Return |
| Aditya BSL Frontline Equity Gr | Large-Cap | ÙÙÙÙ | 3.37 | 11.15 | 17.05 |
| ICICI Pru Bluechip Gr | Large-Cap | ÙÙÙÙÙ | 10.57 | 13.71 | 17.18 |
| ICICI Pru Large & Mid Cap Gr | Large & Mid-Cap | ÙÙ | 4.98 | 13.12 | 15.49 |
| Kotak Standard Multicap Reg Gr | Multi-Cap | ÙÙÙÙ | 5.48 | 13.40 | 21.11 |
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.
| Fund | Category | Morningstar Rating | 1 year Return | 3 year Return | 5 year Return |
| Invesco India Contra Gr | Contra | NA | 13.65 | 15.65 | 25.65 |
| Canara Robeco Emerging Equities Reg Gr | Large & Mid-Cap | ÙÙÙÙÙ | 3.88 | 14.77 | 31.54 |
| Axis Bluechip Fund Gr | Large-Cap | ÙÙÙÙ | 13.40 | 13.03 | 16.36 |
Consider adding some of these funds.
| Fund | Category | Morningstar Rating | 1 year Return | 3 year Return | 5 year Return |
| Aditya BSL Frontline Equity Gr | Large-Cap | ÙÙÙÙ | 3.37 | 11.15 | 17.05 |
| Franklin India Bluechip Gr | Large-Cap | ÙÙÙÙ | 5.90 | 10.00 | 15.04 |
| HDFC Top 100 Gr | Large-Cap | ÙÙÙÙ | 8.39 | 12.91 | 17.51 |
| ICICI Pru Bluechip Gr | Large-Cap | ÙÙÙÙÙ | 10.57 | 13.71 | 17.18 |
| Franklin India Prima Gr | Mid-Cap | ÙÙÙÙ | 1.13 | 12.05 | 24.53 |
| HDFC Mid-Cap Opportunities Gr | Mid-Cap | ÙÙÙÙÙ | 0.82 | 12.88 | 26.06 |
| Mirae Asset Emerging Bluechip Gr | Large & Mid-Cap | ÙÙÙÙÙ | 5.38 | 17.79 | 31.65 |
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.
| Fund | Category | Morningstar Rating | 1 year Return | 3 year Return | 5 year Return |
| Aditya BSL Tax Relief 96 Gr | ELSS | ÙÙÙÙ | 9.57 | 13.97 | 22.80 |
| HDFC Mid-Cap Opportunities Gr | Mid-Cap | ÙÙÙÙÙ | 0.82 | 12.88 | 26.06 |
| DSP Small Cap Reg Gr | Small-Cap | ÙÙÙÙ | -6.82 | 10.07 | 30.61 |
| SBI Magnum Multicap Reg Gr | Multi-Cap | ÙÙÙ | 3.83 | 12.89 | 21.52 |
| Aditya BSL Frontline Equity Gr | Large-Cap | ÙÙÙÙ | 3.37 | 11.15 | 17.05 |
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:
| Fund | 1 year Return | 3 year Return | 5 year Return |
| ICICI Pru FMCG Gr | 16.29 | 15.08 | 15.34 |
| Canara Robeco Consumer Trends Reg Gr | 4.60 | 12.86 | 19.86 |
| Mirae Asset Great Consumer Reg Gr | 12.24 | 16.39 | 19.32 |
| Reliance Consumption Gr | 3.85 | 6.57 | 12.88 |
| Sundaram Rural & Consumption Gr | -0.20 | 16.64 | 21.97 |
| Tata India Consumer Reg Gr | 11.90 | ||
| SBI Consumption Opportunities Reg Gr | 14.84 | 16.76 | 15.96 |
| Reliance ETF Consumption | 11.60 | 14.69 |
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.
| Fund | Category | Morningstar Rating | 1 year Return | 3 year Return | 5 year Return |
| Franklin India Taxshield Gr | ELSS | ÙÙÙÙ | 6.07 | 9.90 | 18.99 |
| Aditya BSL Frontline Equity Gr | Large Cap | ÙÙÙÙ | 3.37 | 11.15 | 17.05 |
| HDFC Hybrid Eq Gr | Aggressive Allocation | NA | 2.89 | 10.80 | 19.18 |
| HDFC Small Cap Gr | Small Cap | ÙÙÙ | 12.71 | 18.86 | 23.05 |
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:
| Fund | 1 year Return | 3 year Return | 5 year Return |
| Franklin India Technology Gr | 39.28 | 11.57 | 15.06 |
| ICICI Pru Technology Gr | 52.82 | 13.23 | 20.17 |
| SBI Technology Opportunities Reg Gr | 46.49 | 11.71 | 16.62 |
| Tata Digital India Reg Gr | 64.47 | NA | NA |
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.
First Published:Sept 27, 2018 4:12 PM IST
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