Investment, Financial Planning, Mutual Fund & Income Tax Queries

What to do with non-performing Mutual funds and re-invest into better funds

I have been investing in MFs since 10 years but now, I am facing a situation where one of my funds SBI Magnum Tax Gain Growth is not performing well since 3 years. Been patient enough for the fund to improve it's performance but to no avail. So, I am contemplating to redeem and re-invest in some other multicap/diversified equity fund. Please guide me to resolve my confusion. I have - 3 ELSS Funds (ABC'96, Axis LT Eq, Rel Tax Saver) - ongoing SIPs, Mirae Asset Emerging Bluechip Fund - ongoing SIP, SBI Magnum Tax Gain Growth - No SIP. All units can be redeemed. HDFC Tax Saver - No SIP, HDFC Top 200 - No SIP. SBI Magnum Tax Gain is not performing well since past 3 years. So, I want to redeem (all the corpus Rs. 6 lakhs) and subsequently invest in existing ELSS or buy new Multicap Fund. My questions are - 1. Should I invest in existing ELSS (ABC'96/Axis LT Eq) or a new Multicap fund? (Do you think that ELSS Funds, because of their 3 years lock-in, give additional freedom in comparison to other multicap funds for the fund manager to take long term calls eventually translating into better performance? Note - I do not need this money for next 7-10 years.) 2. Should I redeem in one go or in parts (say, 3 nos) from SBI Magnum Tax Gain and then re-invest that money? 3 As of now, SBI Magnum, though a diversified equity fund, has more (approx 70%) Large Cap exposure. If the ELSS or Multicap fund has more Mid-cap exposure. (eg. ABC'96 has approx 50% exposure), do you think it makes sense to invest via SIP (6-9 nos.) or should I invest lumpsum without worrying too much about Mid-cap exposure and volatility because I do not need this money for next 7-10 years?

Jun 16, 2018 by Satish, | Mutual Fund

Yes, you are right ! Once a marquee fund SBI Magnum Tax Gain failed in performing compared to its peers and therefore, your idea of redeeming from it and investing in some good performing funds is okay... Read More

Am I investing in best performing mutual funds or not

I am a regular visitor of your answers for the queries posted by individuals like me and learnt a lot from them. Thanks a lot for making me aware for the value of investing. Just now I had a talk with you over telephone from Kolkata. Kindly enlighten me about the following - 1. I have an SIP of Rs 12000.00 pm in Franklin India equity fund growth from Nov 15th 2015 and would like to continue till 2022. Goal Son's Marriage (Q) Should I continue with fund? Will it be good? Or shall I switch to any other good fund of same AMC? 2. I have an SIP of Rs 10000.00 pm in SBI Blue Chip Fund Growth from March 2017 and would like to continue till 2024 - Goal for daughter's Marriage (Q) Should I continue with this or switch? Will it be good? 3. My son has also invested in Aditya Birla Sun Life Equity Fund - Growth as SIP of 20000.00 PM from Feb 2017. Goal not known. I forced him to open since I know the value of compounding. (Q) Should he continue with it? 4. I have an SIP of Rs 2000.00 pm in Franklin India Prima Fund Growth (don't know whether name has been changed recently or not) from April 2009 and would like to continue till 2024. (Q) Again same question Should I continue with this or switch? Will it be good? I want to get an expert opinion from you. Kindly help me?

Jun 16, 2018 by Asit, | Mutual Fund

Thanks for being a regular visitor to our website and also for the kind words. I am glad that you are now more aware about the value of investing in mutual funds. Here you go with my suggestions... Read More

Am I investing in the top performing mutual fund SIPs

This is to inform you I have already invested in below 4 MF, this is right choice or not 15 years horizon. 1. Kotak Select Focus - 1000 SIP, 2. HDFC Balance Fund - 1000 SIP, 3. Most Focused 35 Fund - 1000 SIP, 4. L&t Emerging Business - 1000 SIP. Please suggest me sir and I have 4 lacs other which fund lump sum invest for one year?

May 30, 2018 by Gautam Patel, Mehsana | Mutual Fund

The 4 schemes that you have chosen from Multi-cap, Equity Hybrid and Midcap category are among the top performers in their respective categories. Therefore, these can held for long term for meeting your... Read More

Where to invest my money for next two years

I have been receiving your articles from advisorkhoj which are very valuable and very knowledgeable. I would like to know your advise on which are the mutual funds I need to put a corpus of Rs. 8 lakhs which are maturing from a recurring deposit which I had saved for my daughter's marriage in about 2 years time period. kindly advise. I would like to have this amount is capital protected as well as it should give good returns compared to bank FDs?

May 14, 2018 by Chandavarapu Satyanarayana Rao, | Mutual Fund

Thanks for the kind words ! I am glad that you liked our website and found it knowledgeable. Coming back to your query, your investment horizon is approx two years and therefore, you can invest in short term... Read More

Am I investing in best mutual funds to meet my future goals

I have some doubts about mutual fund. So that I am sending my portfolio to you. I need your suggestion. I have following SIP(s) running on (started on Jan-2018). I have investment horizon 20 years - 1. Mirae Asset India Equity - Rs. 7000, 2. DSP BlackRock Opportunities + Tata equity P/E fund + Motilal Oswal Multicap 35 = (7000*3) = Rs. 21000, 3. Principal Emerging Bluechip + L&T Mid cap = (7000*2) = Rs. 14000, 4. Reliance Small Cap + ABSL Pure Value fund = (6000+7000) = Rs. 13000. I want to build this corpous for my kids education, higher education and for my retirement. GOAL (I have considered inflation also) - 1. 1st Kid Graduation = 40L, 2. 1st Kid Post graduation = 75L, 3. 2nd Kid Graduation = 60L, 4. 2nd Kid post Graduation = 1Cr, 5. Retirement Corpous = 6Crs, NB: 1st Kid age is 1 yr, (2nd Kid I will plan after 2 - 3 yrs). I have a short term goal 5 - 6 years. I want to buy a house for this down payment below fund - 1. HDFC Balanced fund = Rs. 10000, Kindly let me know if I have to change any schemes and shall I achieve the goal with this investment?

May 14, 2018 by Dibyendu Rakshit, | Mutual Fund

You are investing in good mutual fund schemes from the mid cap, diversified and small cap category. The portfolio is quite aggressive and suitable for those with high risk and having a long term investment horizon... Read More

Am I investing in best mutual fund schemes

I am Venkat. I am a new MF investor. I am regularly visiting your website for Mutual Fund information and Thanks for your advises. My current portfolio is - ABSL Pure value - 1000/pm - 5/10 yrs, Reliance Small Cap - 1000/pm - 5/10 yrs. Now I wish to add following funds with Rs. 1000\pm each. Please suggest from following funds - Franklin India Smaller Companies, Canara Roboco Emergency Fund, Mirae Asset Emerging Bluechip Fund, L&T Emerging Business Fund Growth. My Total investment limit is 5000/6000/pm only. I will continue my investment upto 10 years. Kindly Advise me, as I am new to this type of investment?

May 14, 2018 by Venkata Narayana A, | Mutual Fund

Good to know that you visit our website regularly. You are investing in two good mid and small cap funds - ABSL Pure Value Fund and Reliance Small Cap Fund. Please note that mid and small cap funds can... Read More

How to invest in the lowest NAV of mutual fund schemes

Please guide me on the following noted points; 1. In which month from 23.4.2018 onward to invest in ELSS in a mutual fund when lowest NAV will be available, 2. In which month from 23.4.2018 onward to invest in Balanced Fund in a mutual fund when lowest NAV will be available, 3. In which month from 23.4.2018 onward to invest in Diversified Equity in a mutual fund when lowest NAV will be available. Expecting your cooperation?

Apr 30, 2018 by Debasish Mitra, Hooghly | Mutual Fund

Sorry to say you are asking about an impossible thing. No one in the mutual fund industry in India has this answer, i.e. predicting when the lowest NAV in a mutual fund scheme will be available. Please note that... Read More

Should I invest more in small and midcap mutual funds

I want some advice regarding my investments. I am investing 50k per month equally distributed in 5 mutual funds - 1. ICICI Pru Focussed Bluchip, 2. SBI Large Cap, 3. ABSL Equity, 4. ABSL Small and Midcap, 5. L&T Midcap Fund. I am a Govt. employee and I do not have any immediate need of money in next few years. I have tried to pick funds with long term proven returns. Please help me with my investments. Also, we generally say that if we have long investment period, then only we should invest in small or midcap funds. Now, if I say that I am ok with my money locked for next 10 years, why I should be investing 100% in small or midcap fund to maximize returns. What is the possible downside?

Apr 30, 2018 by Rajat Batra, | Mutual Fund

Please note that my reply below should be treated as suggestion only and not financial advice. If you are looking for financial advice, you must connect to a financial advisor in your city. I find that you have... Read More

What if I invest in best ELSS mutual funds

I have read your answer on quora regarding mutual funds investment. I want to know the below details. Please answer me if you're free. How will it work if I invest 2k per month upto 3 years in ELSS mutual funds? What will be the return? What will be the risk percentage? Let me know any advises to be better investor?

Apr 30, 2018 by Eranna UV, | Mutual Fund

If you invest Rs 2,000 a month in ELSS mutual funds for 3 years, your annual investment of Rs 24,000 (Rs 2,000 x 12 months) will qualify for deduction under Section 80C of The Income Tax Act 1961. Please... Read More

How can I get the list of companies according to recent SEBI mutual fund category classification

1) My elder brother is interested to invest lump sum of 10 lakh rupees in mutual fund for long term. But confused in verities of funds, it will be helpful for him if you suggest any fund. Basically I am interested in searching a fund which is in large cap or mid cap and having MNC companies in his portfolio like Birla Tax Saver Fund 96? 2) SEBI have introduced a 100 companies lists for large cap category, 100 companies for mid and small cap categories, sir I want to see that list but I am unable to find it on SEBI website, can you suggest me the correct icon path on SEBI website or please send it's link? 3) Practically it is not possible for any mutual fund house to manage any amount without expense ratio. But on advisorkhoj website some funds are having zero expense ratio. It is very good to see the funds expense ratio and return separate on advisorkhoj website but in some funds expense ratio space there is " - " marks? 4) Is there any branch website of advisorkhoj which is related to share market?

Apr 30, 2018 by Shri Ram Nirdosh, | General

I think, your elder brother should invest in mutual funds according to his profile and investment horizon. Following could be some example - In case your brother can take moderately high risk, he can invest in... Read More