February 9, by Basavaraj Tonagatti Comments. Last year I published the list of Top 10 Best SIP Mutual Funds to invest in India in Now few started to force me to publish the post for Top 10 Best SIP Mutual Funds to invest in India in But before proceeding further, let us review the funds which I recommended last year. The points are listed as below. I noticed that many of investors simply invest in mutual funds just they have some surplus money.

The second reason may be someone guided that mutual funds are best in long run compared to Bank FDs, PPF, RDs, or even LIC endowment product. Hence, first identify your financial goals. You must know the current cost of that particular goal. Along with that, you must also know the inflation rate associated with that particular goal. By identifying the current cost, time horizon and inflation rate of that particular goal, you can easily find out the future cost of that goal.

This future cost of the goal is your target amount. Next step is to identify the asset allocation. I personally prefer the below asset allocation. Remember that it may differ from individual to individual. However, the basic idea of asset allocation is to protect your money and smoothly sail to reach the financial goals.

Use the debt products of your choice like FDs, RDs or Debt Funds. For example, PPF is best debt product. However, it must match your financial goals.

If the PPF maturity period is 13 years and your goal is 10 years, then you will fall short of meeting your financial goals. Next and the biggest step is the return expectation from each asset class. When your expectations are defined, then there is less probability of deviating or taking knee-jerk reactions to the volatility. Once you understand how much is your return expectation from each asset class, then the next step is to identify the return expectation from the portfolio.

Let us say you defined the asset allocation of debt: Once the goals are defined with target amount, asset allocations is done, return expectation from each asset class is defined, then the final step is to identify the amount to invest each month. There are two ways to do. One is constant monthly SIP throughout the goal period. Decide which suits best to you.

Hope the above information will give you clarity before jumping into equity mutual fund products. How many mutual funds do we have? Is it 1, 3, 5 or more than 5? Whether your investment is Rs.

Having more fund does not give you enough diversification. Instead, in many cases, it may create you portfolio overlapping and leads to underperformance.

The funds who consistently beaten the benchmark are listed in that Many simply select the funds based on eye-catching returns. However, at what cost the fund is giving you a better return?

To what extent it protects my investment during a downturn is what differentiate from good fund to bad fund. There may be fewer other funds, which are good to compete with these funds. However, I may be biased towards few Mutual Fund Companies purely on their size and how long they are in MF business in India.

Below are the metrics I used to arrive at finally selecting the funds. In this category, I found that funds like SBI Bluechip and Birla Sunlife Frontline Equity Fund are also best. However, I am going with below choices. As I said above, there are other funds also which scores equal or more than these two funds. But I stick to these two funds. There is no reason of negating these two funds.

Again in this category of funds, I found few funds like SBI Magnum Multiplier Fund and Franklin India High Growth Companies Fund. However, I stick to below two funds and which are my favorite too. You may notice that for a 1-year return the score is dropped below 80 and currently showing as Same is the case with ICICI Fund also.

However, considering the consistency and just a drop in that for a year does not mean that we must neglect this fund. Hence, I will stick to this fund. Last year I selected HDFC Midcap Opp Fund and also Franklin India Prima Fund. I am continuing with same funds. A drop in a year from both funds does not mean they are BAD. Hence, considering the consistency of fund since long, I am suggesting these two as best funds. In small cap category, the funds in my mind are Canara Robeco Emerging Equities Fund, DSPBR Micro Cap Fund, and Franklin India Smaller Companies Fund.

In these three, I go with DSPBR and Franklin. I am unable to generate the consistency score for both the funds. I will update the image once I am able to do so.

However, these two funds are my favorite among small cap. Among this category, I have in mind the funds like HDFC Balanced Fund, ICICI Pru Balanced Fund, Tata balanced Fund and Franklin India Balanced Fund. But I go with HDFC and ICICI.

It does not mean that they are universal choices. There are certain other funds too. However, I stick to these funds as my best choices.

I am a Certified Financial Planner by qualification and currently living in Bangalore. I am using this platform to spread knowledge about Personal Financial Planning.

Hope you too join me in spreading this awareness: I am planning for my baby next year and want save for education and marriage. Kindly guide for well plan for it. I have a PPF of 50K has been deposited. I have a mutual fund investment of 3K in Axis Bank Long term investment G as an SIP. Kindly guide me to do the right investment. Is it suitable to go with Mutual funds or Stock Market investment?

If You suggesting me Mutual fund then suggest me which funds should i select and for how many years and price point. Deepak-You identified your goals, the next step is to read the above post properly. You will get all answers. If you still have doubts, then you can raise the issue here. Its seems that DSP BR Microcap has put a hold on fresh flow to the micro cap fund after Feb Your take on this please. I came to know that they are under REGULAR GROWTH plan.

When I browsed the difference between REGULAR vs DIRECT, I felt I have done mistake by adopting GROWTH plan because commision to advisor will be deducted from my returns. What should I do now, shall i change plan through advisor or stop them and start new one freshly. Srinivas-First understands whether you can manage everything on your OWN or not. If you are capable doing clerical work related to MF investment and also can handle the portfolio on your own like review and all those things, then go ahead to DIRECT.

Otherwise, stick with good adviser I am not saying to stick with the same adviser. What is the difference in direct plan vs regular plan returns after 20 years. Srinivas-Nothing but the important task of reviewing your portfolio understanding the fund performance and all those stuff.

While selecting the scheme name under MF SIP creation in HDFC securities, I see four almost similar plans. For instance, Birla Sun Life Top Fund — Growth Direct Plan, Birla Sun Life Top Fund — Growth Direct Plan1, Birla Sun Life Top Fund — Growth Plan, Birla Sun Life Top Fund — Direct Plan.

Amit-1 Check whether HDFC Securities offers you DIRECT funds. In my view, NO. Also, selecting direct or regular depends on your comfort with MF.

Hence, choose the regular or direct based on that. SBI Bluechip 4K , Birla Sun Life Top 1K 2 Multi Cap: ICICI Prudent Value Discovery 3K 3 Mid and Small Caps: Amit-In that case, one large cap, one mid cap and one small cap from the funds you already investing are enough.

Once I have purchased the mutual funds, how often I should monitor and any specific aspect to be tracked? I would like to understand and learn, I can calculate the below parameters for a fund on my own and analyze. If yes, please guide me. DIY Do It Yourself investment does not mean calculating all these parameters.

There are sites that do these calcs like moneycontrol and valueresearch. Your responsibility as DIY investor is to check these sites and get these values for the funds you selected. Then decide whether to redeem or stop SIPs or continue SIPs.

They will tell you how good is the performance. Once in six months is enough. I am holding Birla Sun life equity front line UTI equity ICICI value discovery Franklin india small companies. I am planning to add DSP blackrock micro fund Mirae asset india oppportunities HDFC balanced fund in portfolio.. Kuldeep-Without knowing your time horizon, asset allocation and how you selected these funds, it is hard for me to guide.

Kuldeep-I am not sure why you want to hold two funds within the same category. Instead, use one large cap, mid cap and small cap. Hi Basu, I started investing in MF recently. I have made asset allocation of Debt for my 10 year goal. My portfolio in equity is I have two queries. I am not able to start SIP in Ultra short term fund Birla SL Floating rate fund-long term. Birla call centre says it is not possible. Then how to go about investing monthly? Is it right time bear market to pick and invest in a mid and small cap fund?

Pappu-1 What they are saying? If you are unable to do that with Birla, then why not move to others? But when I purchase lump sum from the same folio, it says your invest is worth 7 lakhs, please visit our office or CAMS centre with KYC details. Pappu-Whether you are KYC complied? If not, then I think the limitation in your case is due to KYC issue.

Check and complete the KYC issue. Currently, I am investing an amount of Rs in all the funds selected below through Funds India. Could you please high-light your though on this. My goal is to invest till 15 years. I wish to invest Rs 1 lakh in lumpsum for 5 yrs may be 50kk each if u suggest two good funds. A balance mf will be a good option?? Or should I invest in short term gilt funds. Time horizon may be increased to yrs.

Basu Thanks for your quick response.. Could you please be kind enough to specifically advice one fund in each category for lumpsum investment. I have gone through your post re — debt mf very informative article and decided to invest as follows: Kindly advice if it is a right choice.

Is it right approach?? Should I invest rt now or wait for around a month?? Shekhar-If your goal is long term and you did the proper asset allocation, then if you still feel the fear, the option is to spread this investment for the next months. Hi Basu, u have give nice detailed info.

I have few doubts. As you are suggesting to go with only few funds i. But when in if we choose multiple funds of different AMCs with different asset allocation this chance of drastic loss is reduced right? So this profolio is much more stable and diversified than having only few funds inspite of having multiple good options in the market?!!?

But doesnt above analysis make sense?? Prashant-Whether you checked those equity funds overlap? Your answer makes us to discuss more on this.

Hi Basu, please find my views here, Below is my planned profolio with full diversification: Birla SL Pure Value Direct-G 2. Mirae Asset Emerging Bluechip Direct-G 3. Reliance Pharma Direct-G 2. And i checkd and analysed overlap within the same catogary many times with different tools like http: Prashant-Without knowing your time horizon, how can I say which is suitable to you? Also, why multiple funds within a category?? Here are my few goals. Emergency fund — build time 1year.

Refund of loan from relatives 2lakh time period years. Toure amount 2lakh, time period is 3years. How do u attach above given funds to each of these goals?? Which fund suits each goals..? Prashant-None of your goals are more than 5 years. Hence, in my view investing in any equity funds is risky. Stay away from all equity funds and also stay away from other types of debt funds except Ultra Short Term Debt Funds or Short Term Gilt Funds. As we know that Market is on high now and there is a possibility to fall the market for some coming months.

I have been investing in mutual fund since Oct I am thinking to stop mutual fund investment for coming months and then again continue after months. As there is a possibility of correction in market in next months.

So till the time i can invest my money in bank RD. Jitendra-Who know that market will FALL from now ON and after months they be again on track?? If anyone know, then he must be GOD. If your goals are long term, did the proper asset allocation, then why to worry?? I am planning to invest for long term 15 years goals. Below are my current investment. My asset allocation would be Axis Long Term Equity Fund ELSS — started in Jan ICICI Value Discovery Fund — Started in Apr Franklin India Small Cos — Started in April Need to have one crore for my retirement in 20 years 2.

Need 40 lakh for Girl child education and marriage in span of years Risk ability: Keeping months of monthly income Medical coverage: Have term plan of 50L, will need to take for my parents. Now my queries are, 1. Are my understandings are correct? Is that okay if I invest Debt funds through monthly SIP? But strictly invest only in ultra short term or short term gilt debt funds. Even if I have a horizon of 20 year for debt allocation , still you advise me for ultra short term or short term gilt debt funds?

I have a very generic query related to mutual fund investment. I went through the email and found that, its kind of an open ended mutual fund scheme which invest in debt and money market instruments for return. They are doing the advertisement by saying, its a saving account which will give you more return compared to a bank saving account. Below are the features. My query is, I have my money kept in a saving bank account which will be going to different mutual fund schemes through SIP mode, does it make sense to park all this into above mentioned scheme as I can withdraw the required amount anytime whenever my SIP dates are near.

I am a new bee in Mutual fund investment. I have a PPF of 30k per year and an FD of 50 K. Also have a LIC of 30 k per year. Wanted to know whether it is worth investing in MF for 5 years? Is it good enough to start off? I want to know which web interface like fundsindia, scripbox,invezta, MF utility etc..

Or Should I go for individual fund house site and invest. I want to invest only in direct plans as I know in long term Direct will have big difference in total gain amount compare to Regular. I am thinking to invest in it for long term 15 years as I analyzed its performance is good last 4 years.

Avik-But it is a multi-cap fund with good performance so far. Do invest with proper asset allocation. Could you please review my portfolio and advice me the funds accordingly 1-ppf 7lacs 2- Sukanya acc 3 lakhs. PLanning to start an SIP of 5 k each on below MF 1- Kotak Select focus fund large cap 2- Kotak emerging quity or Reliance small cap or Mirae emerging bluechip. I already am investing 1. Plus have insurance policy for 1 lakh that i pay every year. Am not looking for any tax saving MF investment provide it get me a better return than investing in Equity MF.

I am bit confused on which MF should I select for SIP as I am planning on Investing 20 every month on sip. Akash-Forget for a moment about funds and all. Concentrate on the above post carefully. You will get answers about how to move into MF. Please suggest me one good Mutual fund in SIP to invest.

My target is to recover the interest amount I am paying for my Home Loan of 7 lakhs for 20 years. HI Basu, thanks for the prompt response. Can you pinpoint one such fund because I am totally new to this and do not have at all any idea which will be the best for long term with good return. Even i need to have 1lakh 30 k by march. How much minimum and in what fund do i need to invest to get that amount. Poonam-Is it different from your earlier query? How long you want to wait for this lump sum which you get in ?

S it s different from previous query. I need 1lakh 30 k in march , so may be 9 months from now. Hi Basu, Good morning. I am 36 yrs, newly entering equity. I want invest more than 1. Can you please suggest me which equity I have to opt? Pappy-First do the asset allocation as I said above, then within the asset class, choose the funds which I listed in above post. Thank u for your quick reply.

I have decided Debt: I want to choose any one of following to limit the number of funds. Hi Basu, Thank u for your reply. Sorry for more query.

Thank u in advance. Axis LTE Mutual Fund Tax 4, Franklin Mutual Fund Tax 4, Franklin Smaller co Mutual Fund 4, Mirae Emerging Bluechip -Direct G LIC Quartley installment? I am planning to invest one more fund for 4k monthly which would be short term 1. I can take risk. Let me know which will be best to opt. Birla Sun Life Small and Midcap Fund — Direct Plan G 2. Birla Sun Life Frontline Equity Fund 4. Rest you have to decide.

However, at the end of the day it your money.

Top 20 Best Mutual Funds SIP Investment in India for

Hence, it is YOU who has to take a decision. But in my opinion, STAY AWAY. Do let me know where can i invest this. The one purpose is in case after 1. Can you advise which one of the below portfolio is better? I am planning to have a proper allocation in equity itself for better diversification.

Hence, I stick to separate and feel comfortable. However I am planning to add ELSS funds for tax saving in span of years. I understand that ELSS funds are considered Multi cap funds. In that scenario, if I opt some Multicap ELSS funds, my portfolio is in correct mix? I am planning to add Franklin tax shield and Birla tax relief in equal amounts Rs per fund monthly SIP.

Hari-You add multi cap fund. But do remember to track the movement of the fund. Otherwise, you end up in higher exposure to particular market cap stocks. Axis LTE — Direct G — 2. Icici pru val discovery — Direct G — 3. UTI mid cap — Direct G — 4. Lump investment of in DSPBR — Direct G. I am planning to add Franklin india small co and 1 balanced fund. Mukul-Why so much high exposure towards mid cap and small cap?

Hi Basu, I posted this question on another section just now and realized i should have posted it here, please ignore the other one sorry. I visit your webpage once in a while to check out the investment atmosphere in India since i am an NRI and have very limited options in investing in India. Thanks in advance for dolling out quality advise for free, for otherwise uninformed investors like me.

I dont need this money for the next 10 years or more and this is just to allocate som money on Debt getting may be slighlty higher interest rates. Can you give me some suggestions, may be a Balanced Mutual Fund? Can you please give a suggestion?

Divakaran-Debt to Equity in the ratio of In debt, select either ultra short term debt funds or short term gilt funds.

In equity, one large cap and one mid cap enough. So totally 3 funds. Hi, First of all I would like to say that you are helping to people who seek your help which is very good. I am going to start my investment as I was busy in other stuff. I dont have any knowledge and I want to achieve few things as a Goal.

Please suggest good Funds, I know your first answer will be read abouve post but if you can suggest directly any good fund, I will review and take that SIP. Gopal-Skip from equity mutual funds. Because your all goals are within 5 years time horizon. Instead, I suggest you to use either Ultra Short Term Debt Funds or Short Term Gilt Funds. Can you suggest me good funds? I checked but I am not clear on that..

I am not sure these are good or OK. If I plan Rs. If my understanding is correct, asset allocation is something which I need to spread my money into different investments according to age and goal.

One doubt though, If i invest in one multi cap and one small cap then what fund should I choose for other to not affect the diversifcation? Hence, it is hard to say whether you have to include large cap or mid cap. I am 27 and new to Mutual Fund. I would like to invest in 2 or 3 funds. I already invested in tax saving Axis long term ELSS fund.

Could you please suggest funds to invest. Age — 33 years old Invest — will do it for next 20 years Goal — To get 1 cr by Can invest in SIP — Maximum of INR per month. PPF — INR per year TERM insurance — sum assured LIC Life insurance — 20, premium per annum Medical policy — 2 lakhs. Yeah I have read the entire post, if you can take extra pain and suggest INR which fund what amount i should put in.

Thanks for all your Replies. Really Appreciate all your efforts for these Analysis and guiding People.

If yes then can u please suggest one. I thought of DSBR Micro Cap but seems its stopped now. Rishi-Why you felt doubt about own recently started MF investments? Funds are good and you have to continue with proper asset allocation.

You can use small cap to small extent. Thanks Basu for your Guidance. Its really Helping us. I am dropping the thoughts of investing in Small Funds and Instead I am planning to increase SIP from to for ICICI pru focussed bluechip. Rishi-Yes, you are in right track and assumptions about asset allocation is also as you said.

I have shortlisted following MFs after reading your post for SIP, all Direct mode:. Franklin India Bluechip G - Rs 2. ICICI Pru value Discovery G - Rs 3. HDFC Mid Cap Opp. Fund G -Rs 4. Franklin India Smaller Cos Fund G - Rs I am also investing Rs.

Will it affect the diversification in my portfolio. Pankaj-You can go ahead with this. Banking or Finance may be over weighted. Hence, I suggest you to avoid multi cap funds like Value Discovery. Thanks for your prompt reply. In multi cap category, two funds from your list are: Franklin India Prima plus and 2.

ICICI Pru value Discovery G You suggested to avoid icici Pru value disc…. Pankaj-When you have large cap, mid cap and small cap separately, then you no need to have multi cap. But planning to withdraw in or Rajesh-I will not suggest any equity instruments for such a short term goal.

Rest you have to play with your aggressive nature. Thank You Basavaraj for your swift reply: Sorry for asking a lame question. If we leave out the time horizon, Is the funds and allocation hold any good for my portfolio? Basu, I am surprised at the kind of patience you have in answering for FREE all the questions. Hats off and kudos to you. May your tribe grow and may you continue gathering all the goodwill of the folks benefiting from your posts!. I was reading your post and planned to invest in DSPBR Micro Cap Fund, however they have stopped taking new application for the said fund.

I am 32 years old looking forward to a long term 15 year investment in SIP. Based on the above listing, comments and readings I have selected the following SIPs. Request if you can please guide me with the investment plans. Please let me know in case you need any details that I might have missed out. However, in case of Mutual Funds, why you selected two large cap funds? One large cap fund is enough. Also, manage the asset allocation based on the above post for your respective goals.

Thank you Basu for your reply. It will be helpful if you can please guide me in a bit detail. Please let me know what else I may provide for making a balanced investment strategy.

I understand that 2 large cap funds are redundant and I mistakenly wrote it instead of or. I will be very grateful if you can please guide me with the SIP investments in a bit more detail, in terms of choice of funds and detailed asset allocation by each fund.

I am very new to SIPs and would be highly obliged if i can get some expert guidance from you. Avisek-You can choose any one between the large cap. Fund selection you already did. Regarding asset allocation, refer my above post. By comparing with what benchmark? Would appreciate if you can share any link for the same, if available. Hi Basu, I am investing following MFs since 1. HDFC Top Growth — Rupees 2. HDFC Balanced — Rupees 3. HDFC Tax Saver Dividend — — Rupees 4.

Sundaram Select Mid cap regular growth — rupees. I have started one more from this January in Franklin India smaller companies growth rupees. I am looking for longer term investment with asset allocation ratio of Could you please advise on Funds selected.

Nilesh-Funds are good but what I am saying is do it with conscious investing and review once in a year at least. I am planning to invest in SIP Systematic investment plan. Could you please tell ur suggestion. Harsha-No work and you can invest it any time with proper asset allocation based on time horizon of the goal. Sorry if my question is bit harsh to you. I am pleased to find a genuine financial advisor, I talked with lot of advisors but none of them could explain my simple questions or could exlpain why, how etc.!!

From your list, I have shortlisted below mutual funds: Additionally I have 5 lakh corporate medical policy for my family. I have 3 lakh in my saving account as for any kind of emergency.

Can you please help on it. Sai-One large cap and one mid cap is enough if you are fond of risk, then a small portion of small cap. Also, whether you calculated the equity portfolio considering the mutual funds both tax saving and non tax saving and also the equity portion in NPS?

You no need to have MORE funds. Two to three funds enough. I wanted to use equity funds and dept such a way so as my investment and tax saving purpose gets solved. Per your comment, I will go ahead with one large and one mid cap and little bit of small cap portion: Does this looks balanced? I am more than 3 on funds which I know is not per your advice. Can you help me so as I wisely spread amount between equity and dept Sai-Now you are on track.

But in my view NPS is not a great retirement product. Balancing for first years not required. Later on you can start doing. I am investing in Mutual Fund through SIP route from last two years. Request to kindly review my portfolio and suggest for any modifications,if any. Axis Long Term Equity Fund G — Large Cap: ICICI Prudential Focused Blue Chip Equity Fund G Small Cap: Franklin India Smaller Companies G Balanced Fund: HDFC Balanced Fund G Diversified Equity: Franklin India High Growth Companies G - I have noticed that the Axis Long Term Equity Fund is under performing.

Please suggest whether should I stop further SIP in this fund and shift other ELSS fund? I am investing in the funds for my long term goals. Retirement, Child education, Child Marriage. Rahul-Refer my above post properly and understand the importance of asset allocation based on time horizon of various goals. Thanks for the informative article Basu.

Till I was only saving through PPF and one Endowment LIC policy. But last year I planned to start saving using Mutual funds and had below 2 Mutual Funds and my PPF:. This year I am planning to add two more funds as below previous ones will be continued: Could you please review and suggest if this is the correct allocation to the various types of MFs or I need to replan.

Pooja-You can continue both the tax saving funds. But why two funds than one? Hence, it is hard for me to guide you. I started investing in tax saving mfs couple of years back and then I was in wrong impression that investing in one single fund can be risky in long term so I decided to divide it in two. Let me know if I need to discontinue one of these, if not ill continue both. Horizon of my planning… I have divided it in three parts 1 after 3 years for my marriage.

Again I am a complete novice in investment and may be my above break is not perfect or even good considering long term planning. So kindly guide me accordingly, like do I have to correct my planning and what all options I have for investing in that direction.

One query here too.. Pooja-Refer the post properly and you have to do asset allocation for your 3 yrs, 7 yrs and retirement goal accordingly. Yes, VPF and EPF also be considered as your debt portfolio. Thank you and Sure ill do so. Can you help me with couple of more doubts as below: As you described different types of equity funds in this post are all good for any time horizon? Or anyone is good for long term or mid term planning? Pooja-1 All are good for an equity portfolio.

However, you have to do asset allocation based on time horizon. Here is my asset allocation, I am not including PPF in this as its not fitting in the time horizon of short term and VPF is already pre declared for long term: SBI Magnum Gilt Fund: Kindly review and let me know if above allocation is good to go.

And if any correction is needed. Pooja-1 Retain one ELSS. Hence, stick either to short term gilt or ultra short-term debt funds. I checked your post on Debt funds and there SBI magnum gilt funds are mentioned as Gilt Short Term so I selected it.

As per your article, suggestion and my analysis I have built my portfolio with composition comprising 4 funds for my long term goals. All funds are Direct growth plans. One large cap — SBI Bluechip One multi cap — ICICI Value Discovery One small caps- Franklin smaller companies.

I understood that mid and small caps valuations are at very high and remarkable corrections are expected in near future. This may lead higher volatility and lower returns. I will also make sure the new SIP amount addition will not affect my Kindly advise which category CAP is ideally good to increase SIPs in my portfolio i.

Large cap or Mid Cap or small cap or Multi cap? I look forward for long term. I suggest the lower small cap always.

So can I take this applies to ELSS funds as well? I mean I need to select ELSS funds with major allocation of large cap stocks to avoid volatility. I wish to invest an amount of 1Lakh in mutual funds for a period of 10 years.

As of now i do not have any experience in investing in mutual funds. Despite my best efforts i fail to understand the algorithm behind investment. If i plan to take the help of an online portal like scriptbox, fundsindia or goalwise for a SIP. On the other hand if you are providing financial services i will be glad to invest through you.

Dharan-1 It is purely based on your comfort. In my view, one go is best. But if you are apprehensive, then break into and then invest. If you are uncomfortable with DIRECT, then choose an adviser of your area. I am investing via SIP in three mutual funds since three years for my retirement another 22 years.

UTI Opportunties — ICICI Pru discovery — Reliance Equity Opportunties — ICICI pru long term equity tax saving — I choose the funds based on advice three years back but now I am evaluating my portfolio.

UTI Opportunities and Reliance equity opportunities funds are not performing for more than year or two. Please suggest should I continue with SIP or change funds.

Vijay-Where is your debt allocation? Why two multi cap funds ICICI Discovery and Reliance? UTI as per me is good fund. Currently I invest about per year in PPF. Pls suggest if I should stop SIP in reliance eq opportunity and pick one mid cap fund instead from the list.

Vijay-Stop Reliance and before entering into Midcap, check the portfolio overlap between Midcap fund you want to choose and with ICICI Long Term and ICICI Discovery. If the overlap is less than then choose one mid cap. Otherwise, it is not required.

If I stop Reliance in which I have about 1. Thanks for your support. I have started a SIP for my retirement goals as per your advice. Time horizon is 10 years. Please advise if the below distribution is good. This is only the equity part. Please advise the if the funds are good. Do you advise to remove or add any fund? Is one debt fund enough for the portfolio? Deb-One Ultra short Term Fund is enough for debt.

Because you already having Mirae Fund. Do the asset allocation as I mentioned above. I wish to accumulate a fund of 30 Lakh after 10 years. Chandan-You can select the above funds with proper asset allocation between equity and debt as discussed above and start investing.

Sir,, my age is I want to invest 10k per month in mutual fund. Kindly provide some details or a portfolio so that i can open and invest as SIP. Dear Basu, After reading your blog about SIP. Now i want to closed some. Please suggest me which should i close. Birla SL Front line Equity Direct Rs SIP p. DSP MicroCap Direct Rs SIP p. HDFC Mid Cap Opportunity Regular Rs SIP p. UTI Transportaion and logisitcs growth regular: HDFC Balanced Fund regular: Since HDFC is not available in mfu online utility can i switch any other similar SIP plan.

Whether i should remain invested in my lumpsum purchases or should i move to to separate funds. My investement horizon is years. I am currently paying home loan EMI of INR as well. Sir, I am really new investor and invested with poor advice of ICICI direct. Currently my lumpsum and hdfc sip is through icici and other are shifted to mfutility.

I can invest 10K more on SIP after march. Please suggest suitable allocation considering my investment horizon. Hello Basu, I am 33 and have below SIP portfolio includes mine and my spouse investing since SBI bluechip — 5K yrs for child higher education 2.

DSP BR microcap — 5K yrs for vacation planning 3. Franklin smaller companies fund — 5k yrs for next car 4. Franklin Higher growth companies fund — 5k yrs for wealth creation 5. UTI midcap — 5k yrs for new business at Does these funds right choice for my goals. I may increase sip amount on these funds based on income and bonus components every year. Can you also suggest right fund for retirement planning.

Santhosh-The problem in your investment are as below- a No asset allocation between debt and equity for each goal based on time horizon. Instead each goal must have one large cap, one mid cap and one small cap in equity portfolio. Thanks for quick response Basu. Do you mean that one should have total of 9 different sip investments if planning for 3 long term goals. Santosh-9 different SIPs in funds ONLY but not on 9 different MUTUAL FUNDS.

Use same funds but all cap funds must be included. Dear Sir, The entire media talking about equity mutual funds. As an investor, my question concerns the laws that govern these mutual funds. I understand that the fund houses cannot be held responsible for the ups and downs of the stock market.

But my concern is, how are these AMC Companies held responsible by the government so that tomorrow they do not close shop like Chit fund? You no need to worry. You are contradicting your own statement. As far as I know, PPF is also debt instrument and interest rate is decreasing also now. Hello Sir, Lower interest rate of FDs has pushed me to park some money in Mutual Funds.

I am a beginner and a 35 year old women and have planned to invest for years. For this I can take out Rs. Am prepared for all ups and downs as I know that market situation keeps changing. Was trying to look for a guidance from internet and reached your site. Glad to find you.

Could you please advise if my selection for following funds is fine?:. SBI BLUE CHIP FUND — REGULAR PLAN — GROWTH Rs. Hello Basu, I am NRI 48 years, own a house. Goal- to archive 50 lac corpus. Kindly advice any addition or deletion in above funds or to increase or decrease the contribution.

Josy- -If you have separate debt portfolio, then why the balanced funds and that to more than one? Whether you continue or increase. HDFC,Franklin preferred as already holding folios -should I hold UTI pension?

Will you be able to re-balance your portfolio with Jeevan Anand? Think and retain this product. Why to select new fund for each fresh investment?

I am planning to invest lump sum money in the following ratio. Also, please shed some light how should we decide in which portion we should distribute our investment among large cap , mid cap ad small cap? Nikhil-This may look fine. There is no specific rule of how to distribute among market cap funds.

However, try to avoid over exposure towards small and mid cap funds. Monthly SIP is about Rs. Let me know of good funds to invest and also is it the right time to invest since market is going up?

Hence I want to invest only SBI fund house in direct plan, Which funds are suitable for me? I want to have 20 Lacs at the end of 10 years for my business and sons education. How much amount should I invest monthly and which are the best funds to invest. I would like to invest for 20 years for my retirement. I need to have 50Lacs at my age How much money to invest and what are the funds to invest. I am 42 years old. I have accumulated Rs 50 Lacs in Saving Account, Rs 30 Lacs in PPF account and Rs 30 Lacs in PF.

I dont want to invest in Real estate anymore. This is surplus cash and I am looking for 15 years horizon of investment to support my retirement. Jignesh-How you selected these funds? What is the time horizon of this investment? Why dividend option and why not growth? My friend who is a financial adviser suggested it. Time horizon is for five years. And the current investment started 15 months back. I was thinking of re-looking into the investment. Jignesh-I think you not read my post properly.

If your time horizon is just 5 years, then simply avoid any equity product. I am planning to add Rs more to my SIP. Please suggest to which Mutual Fund I can add to below Existing Funds Large or Multi or Mid Cap.

Rishi-Refer above post properly. Understand the time horizon and importance of asset allocation. If you not did that then first priority should be towards that. Dear Basu I had a query and was waiting for your reply for past two days. But looks like, it is deleted??!! Josy-I never deletes comments. If it is missing then it is during the server migration of blog. My blog recently moved to another server. If you commented during that migration period, then there is a probability of missing.

Hence, I request you to comment once again with your doubts.

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I was wondering as it never happened to me before as well as to my colleagues at my office,we all immensely benefitted from you. Many of the bloggers gets upset with repeated query but in your case I have seen people asking and taking advice even in the name of Narendra Modi and Abdul Kalam. But your focus is always on subject.

Never mind I will post my query again. GOD bless you and may your tribe flourish! Josy-Sure waiting for your comment. Usually, when we shift to the new server and during propagation time, some user comments may miss.

It is natural but it was necessity for me to move to upgrade. Let me give you an example in a different way. HERE loss is Suppose, if I only have to invest 3k and I have 3 top funds in that category then why not split amount in 3 funds cause, it will be less risky then investor dont have to worry, too much on who is fund manager etc.

As per above chart, franklin blue chip 5 years return was I understand, ICICI one will give high returns but who can tell future? What I am MISSING here?? I hope, you are getting my point. To me, I am feeling more secure in selecting funds in each category.

Suppose, I have to invest 10K then I will prefer to go in 10 funds with 1K amount. I really want to know, what I am missing here. Pankaj-So holding more funds means more returns??

Do you think holding more funds means all your fund managers generate alpha over what the single fund generate? What if all funds investing majorly in few stocks or sectors? Basavaraj, frankly speaking that was the doubt in my mind. I know, its very difficult to track 14 funds but just to save my money, I was planning to do that. Do you think, it is wise idea to opt for PLAN B or simply stick to Plan A. Pankaj-When underlying stocks or sectors are same then in what way by mere adding of more and more funds will create diversification?

It is like investing in FDs from Bank A, Bank B and Bank C, where all Banks A,B and C providing you the same interest rate. According to your example your loss is 30k while getting almost 10 lakh. Is it worth the effort of monitoring and analyzing fund performance of both funds for 10 years?

Investment is not a plant and forget strategy, periodic monitoring of funds is needed which requires effort and expertise. All funds in same category have positive high correlation. Some times market is good for large cap, some times for small cap. If you have multiple funds in largecap itself, when one fund fails when largecap fails all funds fail. Instead if you diversify to mid and small cap and across equity and debt, it is will be a wise strategy.

This is why diversification is done, not to maximise returns 0. So, if we invest big amount then with pain, return will also be more… Please read my second response and would also welcome your suggestions. Dear Basu, My age is My monthly salary is 80, and my living expense is Rs30, per month.

I am keeping six months of living expenditure as my emergency fund i. My investment are in ratio of Equity for long term goals as below for years 1. SBI — Blue chip — DP growth — Rs 2. ICICI Pru Value disc — DP Growth — Rs 3. Franklin small companies — DP Growth — Rs 4. DSPBR Microcap fund — DP Growth — Rs 5. Fixed Deposit — Rs Currently I am paying LIC retirement policies of Rs per month to get tax advantages.

Along with I am going to start ELSS of Rs from April in DSPBR tax saver for 10 years to save tax. At the moment I have Rs5. So kindly clarify my below queries with high liquidity.

I understand that the possible ways of money maximization techniques such as Swipe in Account, Monthly Income plan and debt funds etc. Kindly advise the suitable options? Please note that I was paying Home loan until last month and it is completed now. This was the reason for investing only Rs10, out of my total salary of Rs80, Considering this, can you please advise the tweaks required for my investment portfolio? Hari-1 Without knowing the time horizon, it is hard for me to guide.

My Financial Goals are 1. Retirement corpus to beat the inflation. I am planning my retirement in As mentioned I need to park my excess money somewhere so that I will get more interest than FD but if I need that money for any purposes which exceeds my emergency fund , that should be easily withdrawn but in reality, I can wait to grow for the next years? Kindly suggest that option or suggest some better fund? I have a plan to exit my endowment insurance policies covering them with appropriate pure term plan — Can I come out immediately as I paid premiums for 3 years?

After exiting of insurance policies with term plan cover, where I can park my existing premium amounts? SBI — Blue chip — DP growth — Rs ICICI Pru Value disc — DP Growth — Rs Franklin small companies — DP Growth — Rs DSPBR Microcap fund — DP Growth — Rs Hari-1 Use Ultra Short Term Debt Funds.

Thanks Basu for such a precise and honest answer!! For Question 3, My goals are, I. Retirement corpus of 1 crore? I have few land properties and I can sell and liquidate it for my retirement funds. Through this lets say I will get 50 L Investment horizon is until my retirement.

Again almost debt ratio. Is this portfolio suffice for both goals? If so kindly advise the funds with SIP amounts c If no new funds needed and more money to be invested in the existing funds, kindly suggest the required amount to achieve my goals?

Hari-1 Why two small cap Franklin and DSPBR? If you can manage in a single folio, then you can do so. Otherwise, separate for each goal. I think I need to have separate portfolios for my goals as If I need to withdraw money for Goal1 which affects goal 2 when I have only one portfolio. Can you advise whether I need to have different funds for my different portfolios or choose the same funds as mentioned earlier? Retirement corpus of 1 crore in Hari-You can have same funds for all your goals.

But you can create different folio numbers just to identify. Dear Basu, To answer — why two small caps? DSP fund is Micro cap and Franklin is small cap. I thought of getting benifit from Micro cap stokes along with small cap. Stay away from a product which claims to be made for CHILD FUTURE. To make it clear: Deb-Forget as of now about asset allocation within equity. But what asset allocation you are following between debt and equity? I am not very sure if I can manage it.

I need your advice here. Do you think it is wise to break the F. Deb-If you emotionally not attached to break FDs for the sake of re-balancing, then continue the same. However, if your goal is more than 3 years, then debt funds plays better than FDs. I will also appreciate if you can explain how to allocate different fund types Large cap,mid cap ,balanced etc and percentage distribution for each goals.

I am not sure if you have a post for this. Deb-Why higher investment towards DSPBR? Also, if you already managing debt separately, then why the Balanced Fund? In my view, skip ICICI Discovery, Balanced. Retain only three ICICI Bluechip, HDFC Midcap and DSPBR Microcap in equity. Deb-I am not saying they are good or bad. But make sure to select Short Term or Ultra Short Term Debt funds.

Thanks a lot for your time in helping others. I read the answers posted by you and I find it really very helpful and valuable.

I am investing in SIP in following funds since last year, per month in all of them. The target of my goal is of Could you please guide me whether my allocation is in line. Thank you in advance! Axis LT Equity Fund — Gr fund has been struggling to perform as compared to its benchmark. I expect it to give better results in future but wondering what went wrong in the last 1 year period. Kindly suggest on it. Balanced funds are for child education goal.

Mid cap is for retirement goal. Not opt for pure debt mutual fund. For retirement, I am investing for longer period of time 30 years. I am holding a SIP of ICICI pru value discovery fund in mid cap category.

Now, I am planning to invest Rs. Hello sir I am planning to invest in following companies. Birla sunlife frontline equity fund — Birla sunlife equity fund — hdfc midcap opportunities fund — franklin india smaller companies fund Forgot to mention about my goal of investing. Actually I wanted to get lumpsum amount of money around 70L for my child education after 15 years. Srinivas-Who suggested you these funds?

If you invested directly, then refer the above post properly before jumping into investment. Actually these are suggested by financial advisor. I just told him that I want to have diversified portfolio that should include large, small and mid cap funds. All the above are equity related only. Since I have planned to invest in PPF, it can be viewed as debt invest right. So on the whole, I have 4 equity funds as stated above and one debt fund like ppf.

I am planning to invest monthly through SIP. I am 40 years old my risk profile is moderate. My goals are below. Mirae Assets Emerging Bluechip Fund — per month 2. Franklin India Smaller Companies Fund — Per Month 3. Franklin India High Growth Companies Fund — Per month 4. DSPBR Micro Cap Fund — Per month 5. Birla Sunlife MNC fund — Per month 6. Axis long term equity Fund — Per month 7. SBI Pharma Fund — Per month. Refer above post properly then you will get of what I am asking. My time horizon is more than 5 years.

This is my surplus income and I dont have any need for liquidity in near future. I am currently investing in 1 Birla Sun life Frontline equity Fund 2 ICICI PRU Value Discovery Fund 3 Frankline India Smaller Companies Fund 4 UTI euity Fund. I also have Birla SUN life Top FUND which I am not investing any money at the moment.

Shall I continue same Fund , as I do not good growth in UTI equity FUND. I have a home loan of 30 lacs which I am planning to finish off within 10 years. I want to know what should be my investment option? I have already started SIPs in HDFC BALANCED FUND, DSP BLACKROCK MICRO CAP FUND, HDFC HIGH INTEREST DYNAMIC PLAN.

My doubt is not about the amount to be invested, but should I invest more in Ultra Short Term Debt Funds or take a risk by using equity funds. Actually my question is what would be the best approach to invest and grow money to repay the loans faster.

If a Do a SIP of 10 k per month, I would be investing At the end of the year I would replay 1 lac towards principal repayment and I would reinvest the remaining along with the returns for another year. Pavan-What is the guarantee that after one year your invested money will be Rs. What if the market crashed and it turned to be Rs. Instead use simple products like Bank RDs or FDs.

Pavan-But what about taxation? Both Debt Funds and FDs or RDs offers same tax benefits. However, debt funds not provide you guaranteed return whereas FDs and RDs provide that. Hence, instead of debt funds for a year goal, I suggest FDs or RDs. Very Very Nice article. Sir, I have one confusion. It says, no tax on long term capital gains.

Please give me answer as per below example. Will I get Please be exact amount as per above calculation, will be any tax etc.

Rahul-Yes, you will receive invested amount and the growth on that. As per current LTCG rules for equity funds, any investment which is more than a year will be tax-free. Hence, when you withdraw after 15th year or at the beginning of 16th year , then the amount invested up to 14 years will be tax-free as all of those monthly investments completed a year.

However, the amount you invested in the 15 years will not be completed one year. Hence, that one last year investment will be considered as STCG and taxed accordingly. After 12th year, whenever, I feel, amount is super good is any of the funds. I will start taking exist. Debt and other things, I have and I dont need liquity in near future.

Basavaraj, as you know, its not T- 20 match very long term plan so just double checking everything: Whats your best suggestion on this? Would you suggest to make any minor changes in that also to make my portfolio more attractive? Rahul-I feel like you are shooting in AIR. No specific goal time horizon defined and no proper asset allocation. Frankly speaking, I will take exit between years all funds - As of now, its not fixed.

However, its for more than 10 years that I am sure. I know, what asset allocation means. What do you think, would be the best for me? Rahul-Considering your time period as 10 years, then you MUST follow debt and equity allocation at around It means never invest whole money in single asset class like equity. Try to diversify the risk by investing in debt category also.

My goal is to invest till 20 years. Axis LT Equity Fund Rs Birla SL Frontline Equity Fund Rs Franklin India Prima Plus Fund Rs Franklin India Smaller Cos Fund Rs HDFC Balanced Fund Rs HDFC Mid-Cap Opportunities Fund Rs Mirae Asset Emerging BlueChip Rs Tata Balanced Fund Rs Ashku-Why two midcap funds HDFC and Mirae and same way balanced funds HDFC and Tata?

Where is your debt portfolio? I am not able to understand about debt.

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Can you please guide how to do. Regarding Balanced and mid-cap, I selected based on recommendation by one of my friend. Can I close any one fund and reinvest the same in existing fund. I am planning to invest monthly through SIP mode for 10 years. Below are my assets Home — 50 lakhs Loan closed Fixed Deposits — 20 Lakhs.

I have been investing in SBI Bluechip fund Large cap and ICICI Pru Balanced fund Balanced fund for last 4 months; through SIP with 5k per month. Is it better to divert my funds from large cap to balanced fund Above mentioned funds.

My investment horizon is 5 to 7 years. Please suggest me whether i should continue with SBI Bluechip fund irrespective of the poor per performance for last 1 year or so OR should i consider any other large fund instead of investing whole amount in balanced fund.

Should I go with Balanced fund instead of Large cap as Balanced funds are less volatile to market and gives better results in long run? Durga-This is what I am pointing again.

Why you are taking a call after JUST 4 months? Wait and if the fund not providing the expected return or continuously underperforming for years , then think of switching. Investment lazy game not like the game to act on monthly basis. I need your suggestions on my investment portfolio correction I am sure too many of them. Below are the current state of my investement;. Mediclaim — 5 L 3. I am looking to be invested for next 10 yrs. I will be having yearly increase in my spare for k.

Then accordingly select the debt and equity funds. Frankly, I was looking for a retirement investment. Rahman-Avoid any product which claims to be meant for retirement, pension or child future. Create your own wealth by following the steps explained above. Hi, I have 1 crore windfall from ancestral property. I am 51 years old. I have enough income for myself and wife. I would like to retire from ny business after 10years. How should I invest this money for rest of my retirement courpous?

Aashish-Whether you have enough income to protect your retirement life?

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If so, then do the asset allocation as I said above and can invest. The question is how should I invest all in one go or SIP for 1 year or SIP for 3 year? I am cofused about this part? I may need some money from this corpous after 16 years. Aashish-If your time horizon is long term 16 years , then one go is also OK with proper asset allocation.

However, if you are uncomfortable, then spread with for months. Wish u a Happy New Year. Dear Basu I have an investment in Reliance retirement fund which is not performing well. Please advice if I should stop it and hold or switch to Reliance tax saver fund.

Dear Basu I have SIP in Franklin blue chip ,Franklin Prima plus fund and Franklin flexi cap fund. Would like to continue with any one or two out of three. Dear Basu I already have one Sbi large cap fund. Planning for one more in large cap say Mirae Asset. Is it required or advisable. Seema-If your goal is just years away, then better to go OFF from equity Funds. Select debt oriented hybrid funds or Ultra Short Term Debt Funds.

Regarding debt funds, refer the link provided in above post for debt funds I selected as my Top As I said I have an investment in Jeeval saral policy of monthly for 20 years.

I have completed 8 years , would like to surrender. Surrender value is around loss of I seek your in-depth knowledge in this regards. My portfolio follows as:. Rs x 5 funds. SBI Blue Chip, Mirae Asset Emerging Blue Chip, Mirae Asset India Opportunities, DSP Micro cap fund and Franklin Smaller Companies fund. Could you please review the above and share your thoughts? Any feedback would be highly appreciated. Indrajit-1 You must have your own health insurance. Why two large cap funds like SBI and Mirae Asset India Opportunities?

Instead, Ultra Short Term Funds are enough to fill the gap of debt along with PPF. DSP micro SIP would start from next month.

So I can withdraw it right away as I registered online. SBI Blue Chip being Large Cap while Mirae Asset India Opportunities being Diversified — thus investing in both.

Also, one of my ulip would mature next week approx 3L. Please let me know how best I can invest it. You can retain SBI and go ahead with DSPBR decision. Regarding lump sum investment, follow the asset allocation as explained above. I would like to know what is the difference between regular and direct plan? Nd how to switch from regular plan to direct plan if that is better? Thank you for your reply.

I have started investment in few mutual funds around 6 to 8 months back. I am investing through sip via my bank under regular plan. I would like to switch over from regular plan to direct plan.

How should I do?

Shweta-Yes, the performance remains same for both regular and direct. The only difference is expenses. Shweta-Stop SIP—-Start new SIP in direct mode—Units which are completed a year in case of equity funds —Request for switch to direct. My all the equity funds are of less than a year old investment and some are just one month old investment. So as much I have understood I should stop those sip and start new sip in direct plan.

Could you plz guide me from where I can buy direct plan. Do I have to visit respective fund house site and start new sip under direct plan. Can it be done through online payment. Karthikeyan-Why not in the existing funds? Also, what is the time horizon of this fresh investment? What asset allocation you planned for 10 years goal? Karthikeyan-Check the portfolio overlapping of ICICI and HDFC Balanced Fund. If there is higher overlap, then one fund is enough. If you are separately managing debt portfolio, then why the balanced funds?

OR Shall i increase investment amount in ICICI pru focussed Bluechip fund instead of taking new fund. Why not either ICICI Bluechip or Birla?? How can i split that amount.. Karthikeyan-For 15 years goal, you can use the said equity funds but with proper asset allocation and check how much flexible are your RDs and FDs to make sure that they are easily accessible for re-balancing.

Shall i continue to invest each in below funds years time horizon instead of taking new funds in coming future? Both options 1,2 are similar, but why you have suggested for option 2, Can I know the reason? Karthikeyan-Both are not same. You will cancel the existing SIP. This may take time to cancel.

Once cancel, then you have to register for Rs. My plan is to spread out the investments over 3 funds large, medium, and small CAP funds for a period of 20 yrs.

I have shortlisted Franklin Templeton India for the same. Pls advise on the which funds in large, medium and small CAP categories would be a good bet for investments over 20yrs? I must appreciate the research you do and the time you invest in not only posting your views but also replying to each query. Its commendable and hats off to you for that.

Your articles have always been informative and I have been regularly visiting your blog whenever I need any information on personal finance. My queries are somewhat broader and not specific to choosing MFs for portfolio. I am looking for your views on the following:. How to switch from one fund to another in case the original fund has been under-performing for say a couple of years? While one can switch to a new fund, what do you suggest about the corpus created? Should separate funds be allocated to different goals?

Say I have 5 financial goals. Should I have separate funds for each goal or do you suggest a lump-sum corpus for all the goals. In such case, even if I go for 2 funds per goal, I would end up with 10 funds. Sanjay-1 When you said FUND, then I mean it as equity fund. Why we select equity fund?

When our goals are long term. If our goals are long term, then while switching I suggest a lump sum transfer and increase the SIP in new fund. If you feel adding all goal investments in funds confuse you, then you can use separate funds for separate goals. Otherwise, within same fund create different folios for different goals. Hi Basavaraj, sorry may be I confused you with 2 questions in my previous post so reposting my question here.

Mohan-Increase your investable amount or reduce the target amount. By doing anyone of the two as per your convenient , you can achieve goals.

Changing funds will not guarantee you the targetted amount. Hi, I planned to invest 2L per annum in HDFC Click 2 Invest [Opportunity and Income fund] for 7 years and wait for 8 years to get maturity.

Jawad-I am personally of opinion that one must not combine insurance with investment. I am 33 and expect to retire at 50 with a fund of 1 Cr. Kindly suggest the funds I should invest in and the monthly value I should put in. Jawad-1 Always better to create your own retirement corpus than buying the so called retirement or pension product.

Follow the above mentioned procedure and start investing. If you still have questions, then we discuss further. Jawad-Liquidity…past performance not enough of 2 years and expenses involved matters more. With 2L per year for 7 years with a term of 15 I was told I could expect a minimum of 78L. In short can I believe in this return?

But check the expenses involved and past record minimum 5 years. I want to learn about trading in share market. I have no knowledge in this, can you guide me with a resource where I can learn this. Jawad-If the product is new, then why I have to RISK my money when there are enough products and avenues available to track the performance?

Simply avoid such products. I am not stock market expert. Hi Basavaraj, First of all, I really appreciate your effort in research and putting this across for us. Thank you for doing this. As I have more time I would like to select total equity fund so that I or my daughter have more return. Please suggest suitable fund for this category. Mohan-How much is your expected return from both equity and debt?

What asset allocation you are following? For Question 1 above From equity for 15 years fund above my expectation is 1 Cr and 30 years fund above returns expectation is 5 Cr.

Can I continue with funds and contribution with what I have? So which funds to select for this returns? Mohan-1 Yes, but with proper asset allocation of debt and equity based on time horizon.

I am investing in SIP growth option the below funds from , can you please advise shall I continue? ICICI Value Discovery ICICI focused blue-chip franklin India opportunities Franklin India high growth companies Can rococo emerging equities Reliance RF wealth creation.

I am new to mutual funds, I would like to start investing on mutual funds. I am planning to invest per month for next 15 years. After reading your blog I am planning to take 2 mutual funds.

Could you please suggest? Hi, I have invested in IPRU Wealth Builder II after reading your 80cc not sure if need to continue with this. Please confirm whether I close early and took from one of your tax investment list. I am planing to take SBI Life — Smart Scholar ULIP plan for my son 6 months old.

I am planing to pay 1lakh per year for 5 years. I am expecting maturity amount of around 22lakh after 18 years for education. In this plan I have to select one of the below fund. Which fund I should select? Equity Fund Top Fund Equity Optimiser Fund Growth Fund Balanced Fund Bond Fund Money market Fund. This is what SBI Life — Smart Scholar guys say about return: They said, they will select Bond Fund for me. I got that info from site below. Could you please suggest some alternate plans to get good return for child education after 15 years from now?

Sam-Ask them on what basis they claiming MORE THAN Rs. There must be some assumptions for calculations. You have to ask them the basis of their calculation.

Can I contact you via phone to discuss what investment plans I can go for, for different financial goals, long term and short term. Divya-Is it not possible on this platform? If so, then you can use Blog Forum.

Could you please suggest what specific long term investment plan is good to go for now for 3 year, 5 year, 10 years and years returns retirement , also providing tax relief under 80 CC. I have currently invested in the Axis Long Term Equity Fund but it does not seem to have done well in the past year.

Your comments and suggestions would be appreciated. Divya-If you have asset allocation done and goal in mind perfectly, then NO TIME is GOOD or BAD. The best time is NOW. You have to do asset allocation as I explained above and accordingly start investing.

Regarding Axis, do you feel a single year return worst means you must switch? Investment is the game of patience. I would like to have your expert analysis and advice on my portfolio to achieve the target of 40L. I can invest more on MF. Kindly advice if you suggest any revamp. Sid-I do reverse as small and mid caps are more volatile than large cap. Also, for debt I allocate based on the goal time hoirzon.

I am new to this Mutual Funds. I request you to help me in selecting some good Funds. I already have PPF and PF which is covering my 80C. I have Medical Insurance for my Family. I have one FD which equals my 4 Months salary as Emergency Fund. Now , i am planning to go with Mutual Funds for a horizon of 5 years to 10 years. I can afford 10k , please suggest 3 to 4 funds which suits me.

I wish to start SIP with following asset allocation equity: Should I have 1 multi cap scheme in equity instead of 3 or in addition to these three? Similarly should I have just 1 balanced scheme instead of these 5 or in addition to these 5?

How cap allocation can be controlled with balanced scheme? I have some FDs in nationalized banks, cooperative banks and companies like Muthoot finance. Should I consider these as my debt exposure or should I have additional debt funds?

Or should I buy debt funds as and when the ads mature? Jerry-1 I personally stay away from multi cap as they have mandate to move any market cap. But check for liquidity issue also. Are they multicaps since they are not specific to a particular cap? Franklin India and Axis Long Term. I just had a small question about the Diversified equity funds, Is Franklin India prima plus fund better than Franklin India high growth companies fund?

If someone like me has to chose one diversified equity fund then which one would you suggest between these Franklin funds and ICICI Prudential Value discovery fund? There is general perception as fund grows bigger it does not perform that well. Ankit-Our MF industry is too small to judge based on western countries theories.

Dear Basavaraj, Thank you very much for such an informative post. I am MF investor from last 8 months only and I am investing in following fund for year time horizon for child education and years for retirement Equity: Apart from that I have FD as emergency fund for 4 month of salary and if further needed, I will use liquid fund for that.

I have term plan which is 15 time higher than my annual income and health insurance which is 8 time of my monthly income. Parimal-Why no large cap funds? In my view dynamic funds are best to avoid and restrict to short term or ultra short term debt funds.

In addition, I have balanced fund also that put more than half of the fund to large cap only. Please correct me if there is any thing wrong in this strategy. Is Franklin Low duration Fund good in current situation? Yes Sir, for 80C I put ELSS 96K and remaing school Fee. I want my debit fund to be liquid in nature so that I can take up in case of extreme emergency. Parimal-In that case you can.

But in my view PPF is wonderful debt product if maturity match with your goal. Yes Sir I agree about PPF as a best debit fund and I also like except the longer locking period.

Parimal-1 Not a big deal. Just to be sure you said to go for ultra short term debt funds and short term- not short term gilt, right? I have already BSL Frontline in large cap hence want to skip one fund either BSL Frontline or Mirae Asset India Opportunity. Both fund are performing very well, both have outperformed benchmark and category from their inception.

Please suggest which find I have to skip. Abhay-Watch for few more days. If Mira is still in large cap then skip that fund. This is the problem with multi cap funds. Hi Basu, Thanks for the article. I am impressed the way it is written. This is Hariprasath,30 years young: Can you advise 1. Whether my portfolio is in the correct mix.

If any corrections required, please advice 2. Please suggest some ELSS mutual funds for my portfolios. Hi Basu, My investment horizon is 10 years. Hence I thought of investing in ELSS funds which will give me tax saving as well as wealth creation.

If I do so, my portfolio also will be in correct mix and tax will also be reduced. Now Kindly advice based on the above facts, 1. Is my portfolio is in a correct mix? ELSS Funds — per month 2. If some of the above funds are not preferable, kindly mention 3.

Advise some good return producing ELSS funds moderate risk. Hariprasanth-Ratio you opted is fine. But think whether the debt portfolio is liquid in nature to meet your financial goal Like RD and FDs? Regarding funds, they are find. I already wrote a ELSS selection blog post.