celebrity

Rate Hike: ‘Should I sell my debt MFs?’

Omkeshwar Singh, head, Rank MF, (external link) a mutual fund investment platform, answers your queries:

Paramesh Bojan: I’m investing 40k per month since 2020 on the following funds:

Parag Parikh flexi – 20k

Axis Midcap direct – 10k

Canara Robeco blue-chip- 4k

Mirae emerging blue-chip – 3k

Edelweiss smallcap – 3k

Parag and Axis combined are for duration of 7-10 years for a goal corpus of 75Lakh – 1 crore 

Omkeshwar Singh: This is fine

The remaining 3 are for 12-15 years with periodic step-up targeting 1 crore minimum. Kindly advise if am on right path.

Omkeshwar Singh: 5 years with 10% annual step up will be required

Bhupendra Kumar: I am 34 years old and an aggressive investor. I am investing for wealth creation with the horizon of 20-25 years. I have the following portfolio in MF with direct-growth option:

1. 3500 SIP in mirae aseet emerging bluchip

2. 3000 SIP in ELSS Axis long term term equity 

3. 1500 SIP in Axis bluchip find

Now, my questions are:

Whether my portfolio needs rebalancing?

Omkeshwar Singh: No

Are any of the funds not performing well and should I exit and choose another one?

Omkeshwar Singh: Give it adequate time, compare it with benchmark and peers for couple of quarters then only take any decision.

I want to start another 5000 monthly SIP preferably in small cap. Is it a good thinking? If yes, which fund from small cap should I go for?

Omkeshwar Singh: Since your portfolio does not have small cap you may add 1. Kotak / SBI / Axis or UTI are decent funds.

In future, should I look for another fund when I want to increase my SIP or start increasing the amount in the existing ones, if yes, which one?

Omkeshwar Singh: 1 or 3 rd is fine

Manju Ann Mathews: Sir, I am 35. My monthly sip investment is 37,500 and my portfolio is below. I look forward to investment tenure of 15 years. Please advise whether I can follow these funds:

Axis Bluechip Fund Direct Plan Growth- 6000

SBI Bluechip Direct Plan Growth-3500

ICICI Prudential Technology Direct Plan Growth-3000

Nippon India Liquid Fund Direct- 3000

Kotak Corporate Bond Fund Direct Growth-5000

Mirrae Asset Emerging Bluechip Fund Direct Growth-2500

DSP Midcap Direct Plan Growth -5000

Parag Parikh Flexi cap Fund Direct Growth-9500

Omkeshwar Singh: Please continue, it has decent mix of debt and equity funds

Pahuljot Singh: I want to invest in debt funds for stable return of 6- 8% for time period of 4-5 years. Will investment in corporate bond funds/ dynamic bond fund be good idea in this rising interest rate era?

Please suggest.

Omkeshwar Singh: In rising interest era short duration fund is advisable

Uday Kul: As per my asset allocation, I have invested in debt funds. Now I understand that it will give me a meagre return due to rate hikes. 

My investment is in:

ABSL Short duration fund

HDFC Short duration fund

ICICI Corporate Bond Fund

ABSL Liquid Fund

What is the way out for me? Should I exit?

Omkeshwar Singh: Short duration is suitable for rising interest rate environment, so no need to exit.

Though I want to invest for the long term, I have my quota in equity MF. Hence do not want to invest more in equity MFs.

Omkeshwar Singh: No issues

Also is it advisable to lock money in Bajaj Finance or HDFC FD now or one should wait for further rate increase?

Omkeshwar Singh: Should wait for some time before taking any decision.

Manoj Wadhwa: I am holding the following mutual fund schemes. I have no immediate expenses for the next 5 years at least. Should I hold these mutual funds?

1. Axis Bluechip Fund

2. Axis Midcap Fund

3. Axis Smallcap Fund

4. Axis Growth Opportunities Fund

5. Tata Digital India Fund

6. Parag Parikh Flexicap Fund 

Omkeshwar Singh: Please continue

Pranabananda Satapathy: I am 48. Sir I have SIP in the following funds. Please let me know if I should continue or need to do any change in my investment.

1) ADITYA BIRLA SUN LIFE FRONTLINE EQUITY FUND-GROWTH Rs.1000 13.06.2016 (date)

2) DSP MID CAP FUND–GROWTH Rs.3000 12.06.2017

3) HDFC MID CAP OPPORTUNITIES FUND-GROWTH Rs.2000 20.12.2016

4) ICICI PRUDENTIAL VALUE DISCOVERY FUND-GROWTH Rs.1000 14.06.2016

5) MIRAE ASSET EMERGING BLUECHIP FUND-GROWTH Rs.1000 14.06.2016

6) MIRAE ASSET TAX SAVER FUND-GROWTH Rs.2000 19.12.2016

7) HDFC CHILDRENS GIFT FUND-GROWTH Rs.1000 13.06.2016

8) AXIS FLEXI CAP FUND-GROWTH Rs.3000 02.06.2021

9) MIRAE ASSET HYBRID-EQUITY FUND-GROWTH Rs.1500 02.06.2021

10) MIRAE ASSET MIDCAP FUND-GROWTH Rs.3000 05.07.2021

11) NIPPON INDIA SMALL CAP FUND -GROWTH Rs.1000 26.12.2017

Sir I have invested lump sum amount in the following funds. Please suggest whether to continue or exit.

1) ADITYA BIRLA SUN LIFE BANKING AND FINANCIAL Rs.50,000 22.08.2016 (date) Rs.79,647 (present value)
SERVICES FUND-GROWTH

2) ADITYA BIRLA SUN LIFE FRONTLINE EQUITY Rs.50,000 22.08.2016 Rs.87,455
FUND-GROWTH

3) ADITYA BIRLA SUN LIFE SMALL CAP FUND-GROWTH Rs.100,000 29.06.2017 Rs.132,490

4) HDFC HYBRID EQUITY FUND-GROWTH Rs.120,273 01.06.2018 Rs.178,746

5) ICICI PRUDENTIAL BLUECHIP FUND-RETAIL-GROWTH Rs.20,042 22.02.2018 Rs.31,422

6) L&T INDIA VALUE FUND-GROWTH Rs.25,000 22.08.2016 Rs.48,505

7) L&T INDIA VALUE FUND-GROWTH Rs.150,000 17.04.2017 Rs.245,565

8) MIRAE ASSET TAX SAVER FUND-GROWTH Rs.25,000 22.08.2016 Rs.61,878

9) MIRAE ASSET TAX SAVER FUND-GROWTH Rs.105,000 28.04.2017 Rs.216,372

10) ADITYA BIRLA SUN LIFE PURE VALUE FUND-GROWTH Rs.50,000 06.11.2018 Rs.65,281

11) ADITYA BIRLA SUN LIFE TAX RELIEF 96-GROWTH Rs.100,000 06.11.2018 Rs.128,895

12) L&T EMERGING BUSINESS FUND-GROWTH Rs.100,000 13.12.2017 Rs.155,097

13) MIRAE ASSET BANKING & FINANCIAL Rs.264,987 16.12.2020(STP) Rs.273,346
SERVICES FUND-GROWTH

14) MIRAE ASSET BANKING & FINANCIAL Rs.50,000 23.11.2021 Rs.44,129
SERVICES FUND-GROWTH

15) MIRAE ASSET GREAT CONSUMER FUND-GROWTH Rs.180,000 13.12.2017 Rs.284,600

16) MIRAE HEALTHCARE FUND-GROWTH Rs.200,000 09.11.2018 Rs.401,429

17) MIRAE ASSET MIDCAP FUND-GROWTH Rs.235,462 9.12.2020(STP) Rs.280,601

18) NIPPON INDIA SMALL CAP FUND-GROWTH Rs.100,000 12.12.2017 Rs.178,693

19) TATA FLEXI CAP FUND-GROWTH Rs.100,000 09.11.2018 Rs.149,127

20) TATA INDIA CONSUMER FUND-PLAN A-GROWTH Rs.100,000 09.11.2018 Rs.141,382

21) UTI SMALL CAP FUND-GROWTH Rs.100,523 22.12.2020(STP) Rs.137,025

Omkeshwar Singh: Too many funds, please consolidate it in 4 to 5 funds

Shashank Tripathi: I am 32 years old and started investing in SIP from the year 2022 onwards. I am investing 36000 per month but there are too many funds and want to reduce it to a minimum number of funds. I am planning to create a corpus of around 5 crore at the end through this and invest for the next 20 years. Please suggest what changes/mergers I should make. Also do I need to increase the SIP amount to reach this goal? 

1. Parag Parikh Flexi Cap – 5000

2. Axis Growth Opportunities – 2000

3. Axis Triple Advantage – 3000

4. Mirae Asset Emerging Bluechip – 2000

5. Sundaram Equity Savings – 1000

6. SBI Small Cap – 5000

7. SBI Focused Equity – 2000

8. Canara Robeco Emerging Equities – 5000

9. PGIM India Midcap Opportunities – 200

10. DSP Quant Fund – 2500

11. DSP Focus Growth – 2500

12. HDFC Nifty 100 Equal Weight Index Fund – 2000

13. HDFC Tax Saver – 2000

Omkeshwar Singh: Funds are good, however too many

Devendra: I want to invest around 10,000/- pm in MFs. Following are some of the funds suggested by my friends.

SBI Contra Fund – Direct Plan – Growth
BOI AXA Tax Advantage Fund – Direct Plan Growth
IDFC Tax Advantage (ELSS) Fund – Direct Plan – Growth
Quant Active Fund Direct-Growth
Aditya Birla SL India GenNext Fund (G)
Reliance Growth Fund (G)
Tata Equity P/E Fund (G)
Axis Bluechip Fund – Direct Plan – Growth
Aditya Birla Sun Life Digital India Fund Growth
Tata Digital India Fund  Growth
Parag Parekh Flexi cap Growth

Can you please advise which are the best ones from above or your advice to invest in others?

Omkeshwar Singh: Sectoral funds are there, only one can be looked upon, 4, 7, 8, 11 seems better options

Siddhartha Rao: I want to start SIP for my daughter with a monthly amount of Rs. 1500 for long term. She is now 12 years old. Kindly suggest a better option which can be help for long run. 

Omkeshwar Singh: You may look at:

If you want Mr Singh’s advice on your mutual fund investments, please mail your questions to [email protected] with the subject line, ‘Ask MF Guru‘, along with your name, and he will offer his unbiased views.

Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

Read more of Omkeshwar Singh’s responses here.

Source: Read Full Article