Best Mutual Funds to invest in 2013 – Equity & Debt

by Hemant Beniwal on January 3, 2013

Well the newspapers and television are full of features recalling few things like “Best of craziest Bollywood moments of 2012” or the “Best of wardrobe malfunctions of 2012” or the “Best of divorce/separation of 2012”, I will not make an adventure to test your oomph level and will draw your focus on a serious affair i.e. investments. Each year I try to focus on what next in investment domain. Hence my first post of 2013 shall be on “Best Mutual Funds to Invest in 2013 in India”.

I have covered top schemes of Equity as well as Debt funds so that you can think of building a proper portfolio. You can also download consolidate factsheet of equity funds from the end of post & also check technical ratios sheet of the selected funds.

Before we leap same old age word of wisdom. Do not get carried away by simple past performance (Oh! If you consider past performance you will not consider investing in equity funds). Decision to invest should only be taken:

  • In congruence to your financial goals.
  • As per your risk appetite.
  • As per asset allocation process.
  • In case you are naïve, take help of a professional in “professional way” (read pay his due advisory fees)

Best Mutual Funds to Invest in 2013 in India Best Mutual Funds to invest in 2013 – Equity & Debt

Mutual Fund… So here we go…

Last year we did some similar exercise Best Mutual Funds to invest in 2012 in India[you should quickly go through this to understand how fund categories are defined] but last year there was single criteria that fund should be five star rated by value research. This year we have added few more filters.

Selection Criteria of Best Mutual Funds to invest in 2013 – Equity

Value Research 4 or 5 star Rating

Ratings can give you first level check to fund selection but you should understand that they are based on past data & can’t predict future.

Fund Size

I have considered Rs 2000 Crore as minimum fund size for equity funds.

Alpha (Jensen) is positive in 3 years

This is a risk-adjusted measure used to gauge the extent to which a manager has added value to the returns that could have been expected from a benchmark portfolio, while taking into account the fund’s sensitivity to that benchmark.

So this is a test of whether a fund has achieved a better performance than its Beta would suggest: a positive Jensen Alpha indicates an active management style with superior stock-picking ability; a negative figure is produced if returns are falling short of the adjusted benchmark return.

In simple words Jensen’s Alpha will tell you – has your Mr Fund Manager contributed some returns.

Fund Manager Tenure

I have avoided funds if there is change of fund manager in last 1 year. Same applies to L&T Funds which were earlier managed by Fidelity Amc. Read – What should investors do with Fidelity Funds?

Best Mutual Funds to invest in India – Equity

I repeatedly keep saying that it’s not about fund selection which will generate returns – its more about your behavior. “Investing is not a Number Game it’s a Mind Game.” I shared a post in May 2012 “Its tomorrow that matters” – read comment section. You can clearly see people were in panic & what happened after that can be seen in First Graph.

Last year performance of Equity Funds – Category Wise

Best Mutual Funds in india Best Mutual Funds to invest in 2013 – Equity & Debt

10 years performance of Diversified Equity Funds

Best performing mutual funds in india Best Mutual Funds to invest in 2013 – Equity & Debt

1 year rolling chart of Diversified Equity Funds

Best Equity Mutual Funds Best Mutual Funds to invest in 2013 – Equity & Debt

Best Mutual Funds to invest in 2013 – Large Cap

Best Equity Large Cap Funds

1m

3m

6m

1yr

3yr

5yr

10yr

ICICI Prudential Focused Bluechip Equity 0.49 4.60 13.22 26.79 10.43
Franklin Templeton Franklin India Bluechip 1.40 5.84 12.96 26.79 8.42 4.05 26.08
DSP BlackRock Top 100 Equity Regular 1.67 6.29 13.52 30.29 6.84 3.30
Category Average 0.70 3.85 11.79 25.65 4.17 -0.34 18.41

Best Mutual Funds to invest in 2013 – Large & Mid Cap

Best Equity Large & Mid Cap Funds

1m

3m

6m

1yr

3yr

5yr

10yr

UTI Opportunities 0.37 4.62 13.01 27.28 10.13 6.11
HDFC Equity 3.18 6.09 13.83 34.14 8.30 5.61 29.11
HDFC Top 200 2.42 5.57 13.37 32.43 7.83 5.91 29.37
Birla Sun Life Frontline Equity 1.95 7.75 18.38 36.07 7.57 4.08 25.40
Category Average 1.68 5.39 14.13 28.53 5.01 -0.37 19.98

 Best Mutual Funds to invest in 2013 – Multi Cap Funds

Best Equity Multi Cap Funds

1m

3m

6m

1yr

3yr

5yr

10yr

Reliance Regular Savings Equity 1.77 8.16 23.26 46.01 6.93 2.40
DSP BlackRock Equity 2.07 6.98 16.16 33.26 6.65 3.06 29.56
Sector Average 2.23 6.49 15.68 31.61 5.55 -0.15 24.00

Best Mutual Funds to invest in 2013 – MidCap & Small Cap

Best Equity Midcap Funds

1m

3m

6m

1yr

3yr

5yr

10yr

IDFC Premier Equity 2.12 9.32 20.25 40.02 14.89 7.51
HDFC Mid Cap Opportunities 2.93 4.87 15.73 39.62 14.65 7.27
Reliance Equity Opportunities 2.42 7.01 19.01 47.35 14.63 6.77
ICICI Prudential Discovery 3.42 7.92 17.87 46.01 12.45 8.65
Category Average 2.53 7.81 18.52 38.87 7.18 -1.74 22.75

Discrete Performance of Diversified Equity Mutual Funds

This may help you in gazing consistency of these funds. Only one thing is consistent that equity will give inconsistent returns & that’s the way equity works. If you expect equities to generate 15% every year in a straight line – it’s your mistake.  As someone rightly said “Investments don’t do mistakes – investors do.”

Best Performing Equity Mutual Funds Best Mutual Funds to invest in 2013 – Equity & Debt

I have not covered Sector Funds here as I don’t think there is much point in talking about the same – if someone want to know why, he read this article – Sector Fund guide. Also download equity fund factsheet from end of the post.

Best Mutual Funds to invest in 2013 – Balanced Funds

Filtering Criteria of Balanced fund are similar to diversified equity funds – only change is I have considered funds with asset size above Rs 500 Crore. You can also read this article – Balanced Mutual Funds – best of both worlds.

Best Balanced Funds

1m

3m

6m

1yr

3yr

5yr

10yr

HDFC Balanced 2.20 2.46 9.80 26.56 12.41 9.21 19.43
HDFC Prudence 3.83 5.06 12.73 30.08 11.42 8.00 25.90
Reliance Regular Savings Balanced 2.11 4.69 14.60 35.12 10.03 8.35
Birla Sun Life 95 2.55 5.50 14.40 25.63 8.99 5.31 21.87
Category Average 1.80 4.53 12.13 25.88 7.05 3.06 16.47

Best Mutual Funds to invest in 2013 – Debt Funds

Rational behind selection of these funds is just five star rating from value research & Asset under Management of Rs 100 Crores. To understand Debt Funds – read Bond & Debt Fund Guide.

Best Mutual Funds – Income

1m

3m

6m

1yr

3yr

5yr

10yr

Birla Sun Life Medium Term 0.76 2.22 5.31 11.15 8.78
Franklin Templeton India Income Builder Plan A 1.19 2.62 6.46 12.28 8.89 7.66 6.11
Religare Active Income Plan A 1.06 2.23 5.28 10.46 8.57 5.73
Best Mutual Funds – Short Term

1m

3m

6m

1yr

3yr

5yr

10yr

JP Morgan India Short Term Income 0.85 2.37 4.88 9.67
Best Mutual Funds – Ultra Short Term

1m

3m

6m

1yr

3yr

5yr

10yr

Franklin Templeton Templeton India Low Duration 0.63 1.97 4.16 8.93 7.29 6.61 5.45
JM Money Manager Regular 0.78 2.25 4.76 10.25 8.64 7.90
JM Money Manager Super 0.77 2.25 4.75 10.22 8.77 8.52
L&T Floating Rate 0.73 3.06 5.52 10.67 8.36 7.24
Peerless Short Term 0.70 2.22 4.90 10.45
Taurus Short Term Income 0.84 2.45 5.09 10.55 8.46 6.34 5.30
Best Mutual Funds – Gilt Short Term

1m

3m

6m

1yr

3yr

5yr

10yr

SBI Magnum Gilt Short Term 0.86 2.19 4.42 9.19 7.50 7.08 6.32
Best Mutual Funds – Gilt Medium & Long Term

1m

3m

6m

1yr

3yr

5yr

10yr

Kotak Gilt Investment Regular 1.64 2.62 5.03 14.63 8.79 9.53 7.44
Best Mutual Funds – Hybrid Debt (MIP)

1m

3m

6m

1yr

3yr

5yr

10yr

Birla Sun Life MIP II Savings 5 1.29 2.48 6.18 11.72 8.24 10.60
HDFC Multiple Yield Plan 2005 1.29 2.35 5.74 11.84 9.20 9.14
Reliance MIP 1.49 3.38 7.66 17.21 8.31 11.01

Links: You can download consolidated factsheet of equity funds from here & can also check technical ratios in these sheets.

You should also read – Secret of achieving high returns

Personal Disclaimer – I am not suggesting you any of these funds – you should consider “Best Mutual Funds to invest in 2013 in India” as a random list of funds.

Disclaimer: Mutual Fund Investments are subject to market risks. Please read the Scheme Information Documents and Statement of Additional Information (SID & SAI) carefully before investing.

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{ 217 comments… read them below or add one }

1 Prabhu

Good Article to start off with in 2013 :)

Reply

2 Hemant Beniwal

Thanks Prabhu – if you like it must share it with your friends. :)

Reply

3 Rajiv

Hi Hemant,

I am a regular reader of ur blog and try to follow ur suggestions. As usual this is a great article for financial planning.

I request you to write something about year end TAX planning if possible for salaried people. It would b really helpful.

Reply

4 Hemant Beniwal

Hi Rajiv
I will try to add that next week.

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5 Rajiv

Hi Hemant!

One basic question……what is the difference between ELSS MF (say ICICI Prudential Tax Plan) vs Pure MF (say ICICI Prudential Focused Bluechip Equity) apart from 3 years of lock-in period and tax advantage for the ELSS?

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6 Tahseen Khan

Hi Hemant,
Thank you for your time to guide us.
I have gone through the list of funds you have researched. I need some advice from you. I have 5 SIPs listed below:
HDFC Top 200 Fund – Growth
HSBC Tax Saver Equity Fund – Growth
ICICI Prudential Dynamic Plan – Growth
Reliance Regular Savings Fund – Equity – Growth
Sundaram Select Midcap – Growth
I am investing Rs 1000 for each every month that goes to Rs 5000. I am thinking of putting in some more money in SIP about Rs 4000. I was confused, shall i put my money in ELSS, Equity, Midcap or in Liquid MF plans, Fixed Maturity Plan (FMP), Monthly Income Plan.
Should i go for these Liquid MF plans, Fixed Maturity Plan (FMP), Monthly Income Plan??? which are the good plans in these categories. Please reply. Thank you in advance for your patronage.

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7 ANIL KUMAR KAPILA

Selection of funds is based on the objectives of your investment.

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8 sadashiv

Dear Sir…

i recently see your sectorial fund……it was really great….

if u can add my suggetion write a blog on trigger facility …..there are no such on blog on that topic…..

many investor dont know this sailent feature… in mf…

and write a blog on etf equity fund not alike gold …

bz expenses ratio r lessor than equity fund…..real time we get money in our dp…

in these catagery thr r no such blog….

u r mine encourge idol ….

i nt only read your blog … ur all comment too…
due to my last module ….lack of time to read ur blog….

i really like ur sectorial fund …view

keep thriving
i knw u hate blog word so put as u like..

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9 Hemant Beniwal

Sure I will try.

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10 sundar

I invest 14000/- every month on mutual funds through SIP. This is for my daughters future education. Expected time > 10 years. I modified my MF portfolio based on the recommendation from your website. My current portfolio as it stands today:ICICI pru focussed blue chip equity (3000/- month);UTI opportunities fund (2500/- month); IDFC premier equity (2000/- month); HDFC balanced (4000/- month); DSP BR equity (2500/- month). So far, the returns are good. Do i need to do any changes to my portfolio? Please advise. Regards, Sundar

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11 Dr Kuntal

Dear Hemant,
thanks for converting a financial illiterate like me to semi-literate.
I am religiously following your site for 8 mnths now. Earlier I had put
bulk of my money in endowment plans. After you opened my eyes, I have
redeemed them all. Now I try to follow these:
1> Term Insurance
2> SIP in diversified equity mutual funds
3> PPF
4> Asset allocation.
You are one of the persons who have made a difference in my life.
Thanks! Keep up your awesome work.
Dr Kuntal

Reply

12 raj

Dr Kuntal,

also add Accidental insurance & Health insurance (entire Family)

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13 ANIL KUMAR KAPILA

Frequent changes in portfolio are not required.

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14 Dr Kuntal

Sir,
I did not mean frequent changes in portfolio.
What I meant was rebalancing equity & debt once every year,
so that proportion of the two remains constant.

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15 N.M.R.Shreedhar

Dear Hemant,
nice article to start off the new year. Any specific reason to exclude fund size <2000cr? I ask because there is this diversified equity fund from Quantum AMC called Quantum Long Term Equity Fund which is rated quite highly by many, however its fund size is <2000cr.

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16 sadashiv

Dear Sreedhar,

i compleatly agree ur view …bt hemant sir hav choose his selecyltion crieteria….

no doubt qltef r top performer….

i personally dont belive fund size…

i would recomend to invest qltef…
q e fof ….bz lessor exp..ratio n greater return…great asset allovation

fof is still new bt the assets allocation r as follows

dspbr ef 18%
hdfc top 200 18.11%
hdfc e fund 17
canra robeco 15.93
bsl frotline e f 15.63
sundram select midcp 13.70

expenses ratio .30%
which is too nominal….
equity exposure more than 65%

so it will exempt aftr one yr …

so i would go with ….less exp. ratio…

rather than 2.5 or 3% exp. ratio

bz exp. ratio also affect for long term …
investmnet horizon

if investor hav 0 knowlege above fund r good for them…

if invester have gd knwlge than he can do research….

i remember that hemant sir comment finance world r sea not simmilar like swiming pull if you dont knw swim then higher a trainer ….bt dont jump dirctly in sea….otherwise u knw the result

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17 ANIL KUMAR KAPILA

Every rule has some exceptions.

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18 Sunil Kumar Shishodia

HiHemant,
Thanks for guiding and enlightening users like me. It feel great to read your articles and helps us in understanding the financial planning. I have been a regular visitor on your blog site and must say I have learnt a lot!!!

Regards,

Sunil

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19 pattu

I am little puzzled by this:
Do not get carried away by simple past performance (Oh! If you consider past performance you will not consider investing in equity funds)

Understand what you are saying but a rear-view is the only view available. One cannot get carried away but one does need a foothold to start.
Also
” you should consider “Best Mutual Funds to invest in 2013 in India” as a random list of funds.”

Maybe I am wrong but I sense some frustration at the start and end of this article.

Reply

20 Hemant Beniwal

Hi Pattu,
Why you are feeling I am frusted while writing these sentence – in first bracket what I have mentioned is on lighter note because people are not investing in equity due to recency effect.
Last line I have written because I don’t want to take responsibily if people take any decisions based on this list. Have you read Sundar’s comment….

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21 pattu

Sorry, that was the feeling I got. Glad that you are not frustrated.

I would be if I was pro running a finance blog, because to me there are only two to get your financial life in shape:

do it yourself, read read, try, learn from mistakes and get better quickly or
seek professional help from someone like you,

There is no middle path. Well there is, it is called free advice. Besides being bad manners especially when directed to a professional like you, it is extremely dangerous to ones financial life.

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22 ANIL KUMAR KAPILA

You are right.

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23 sundar

Hi Hemant, i was hoping to get some response/opinion from you for my post.
Regards
Sundar

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24 Kuldeep Singh

Nicely put up Hemant.
Could you suggest if an individual have the investment horizon of say 10 years through SIP then out of UTI equity(G) and UTI opportunity (G) which one should be looked good in terms of fund appreciation.

Reply

25 Dr Kuntal

Hi Hemant,
I had 3 questions for you:
1. If we do additional purchase on existing SIP, will folio no remain same?
2. Can we increase SIP amount without first stopping existing SIP?
3. do you consider SBI Emerging Business as a sectoral fund? If so, why?

Reply

26 ANIL KUMAR KAPILA

Yes to first two questions and no to third.

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27 ANIL KUMAR KAPILA

Over a period of ten years it is not possible to predict the performance of a fund. You have to keep tracking the performance of your fund.

Reply

28 ANIL KUMAR KAPILA

Not possible to answer this question.

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29 sadashiv

dear Kuntal ,
ur first q ur folio will be same bt if folio wont be same then it wouldnt treat as a additonal purchase..
mean if investing in exsiting schme..then same folio
2 u can go with addtional sip nt stop as ur first sip …your both sip will earn return…..bt y u r doing additionsl sip with same fund u can try other fund also as per ur convinient…idfc premier quntum fof bsl frontline equity fund r best no doubt sbi emerging buss. also good fund ….

3r q sbi emerging buss. is nt thematic nor sectorial it is a diversfy equity fund
go ahead its good fund..

Reply

30 Maddy

Hi Hemant,
I am a 27 years old single person. My take home salary is 15000 rs.
Recently i started investing in MF via SIP. My investment horizon is long term.
My portfolio is as follows
Sbi emerging businesses -1000
Uti opp. -2000
Reliance equity opp. – 2000
Icici pru focused bluechip – 1000
Dspbr equity – 1000
Hdfc balanced -2000
What do you think about my selection?
Do i have to make any changes to it?
Please help by giving your feedback.

Reply

31 ANIL KUMAR KAPILA

You are doing fine.

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32 Maddy

Thanks for the reply Anilji.
I am thinking of adding one multi cap and one small cap fund to my portfolio.
What do you think about?
Reliance regular saving, Quantum long term fund
And
Idfc premier fund A

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33 Maddy

I also have a query about Reliance equity opp. Fund
Is it a diversified equity fund or a small and midcap fund.
I am confused because some site mentioned it as a div. fund and in your post it is mentioned under small and midcap.

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34 ANIL KUMAR KAPILA

There are different categories of diversified equity funds.

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35 ANIL KUMAR KAPILA

For proper diversification it is better to have funds of different fund houses.

Reply

36 Maddy

Hemant, could you please give a detailed explanation for the above mentioned question

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37 ANIL KUMAR KAPILA

You can consider Quantum and IDFC funds.

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38 Maddy

Anilji, thanks for the reply.
But i am still confused about the diversified or small and midcap status of the Reliance Equity Opp. fund.

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39 ANIL KUMAR KAPILA

Diversified is a broad category under which equity funds of all market caps come. Category of the fund based on market cap keeps on changing with change in fund portfolio.

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40 Yogesh Wavikar

Send me a comments.

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41 ANIL KUMAR KAPILA

Hi Hemant
My comment seems to have vanished due to some server error.

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42 ANIL KUMAR KAPILA

Hi Hemant
I have been looking forward to this article. You seem to have read my mind. I am invested in many of the funds included in this list for the past three years. Performance of some of these funds has been dismal during 2011. I am glad that I persisted with them and my patience seems to have paid now.

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43 Hemant Beniwal

Dear Anil,
In Equities “Adopt the pace of nature, her secret is patience.”
Good to see your replies to readers – now I don’t have to worry about this post :)

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44 ANIL KUMAR KAPILA

Hi Hemant
2012 has been a complicatd year. It is strange that it has been very bad for the economy but quite good for the investors. The end of 2011 was a low point for mutual fund investments. 2012 turned out to be a positive surprise for mutual fund investors. Most type of mutual funds did well during last year with gains ranging from 23 to 39 %. Going forward mutual fund investors have more reasons for being hopeful of 2013.

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45 Sanjay

Thanks for guidance ,sir

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46 shrikant tillu

Dear Sir,
It is observed that in first year the returns are maximum and then subsequent years they are less.Why so?

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47 ANIL KUMAR KAPILA

Returns depend on market conditions. There is no hard and fast rule.

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48 Dr Kuntal

Dear Srikant,
the returns from mutual funds can never go up in a linear fashion.
It zigzags according to market performance. Invest in mutual funds
only if your time horizon>10yrs. Average annual returns of indian equity
funds since last 20 years is around 16%.

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49 shrikant tillu

No that is not the point. I have seen every where in the performance chart of the mutual funds that first year the returns are very high then in subsequent years is diminishes and hence the query.Refer chart of “Best Mutual Funds to invest in 2013 – Balanced Funds/ Large & Mid Cap” referred above.Is it means that one should keep in mutual funds for one year for best returns.?

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50 ANIL KUMAR KAPILA

Refer to the one year rolling return chart given above. Returns are different for different years depending on market conditions. I don’t understand your reference to first year returns.

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51 Dr Kuntal

Sir,
the reason for your assumption is that 2012 was good overall for
equity funds. So one year (2012) return was good. If you had seen
this post one year earlier, you would have noticed that one year
return was mostly negative, as 2011 was bad overall bad for equity
funds. So your thought is flawed. But the longer you keep equity,
the less risky it becomes.

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52 ANIL KUMAR KAPILA

Hopefully, your explanation will be understood.

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53 shrikant tillu

The returns are given for 1st year,3rd year,5th year,which can be for any year(and not necessarily means 2012) for different Mutual funds.

I MAY STATE THAT I WILL BE HAPPY IF I GET REPLY FROM THE AUTHOR.

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54 Hemant Beniwal

Hi Shrikant,
I am not sure why there is any confusion – these tables are created on 2nd Jan 2013.
I think Anil & Kuntal explained you in best possible manner.

Reply

55 Kalpita Bijur

Hi Hemant,

I regularly read the articles you send with regard to Financial Planning.

Could you please suggest me some good performing Tax-Saver Equity Funds for investments?

Thanks,
Kalpita Bijur

Reply

56 salil mitra

VERY INFORMATIVE KEEP A COPY BEFORE ANY INVESTMENT
THANKS

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57 Nishi

Quite useful information.
I want to share with you that despite of reading quality content of your website I made a mistake recently. I (just out of curosity) traded in commodity, wanted to learn how people make money by trading in various commodities. Had hard luck and lost almost whatever I started with… :)
It was a very nominal amount so I am smiling as the lesson I leant was not that expensive :)
Anyways…. MF SIPs are going on and the funds are there in the list you’ve recommended. So I am glad.
Thank you for the guidance.
Looking forward for your post on year end tax planning for salaried ones…
All the best !!

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58 Kawardeep Singh

Hi Hemant & Anil Sir,

My current age is 30 years, married and i have 2 years daughter. I want to invest for long long term to gain maximum benefit. I am investing 8000/- P.m in following funds from last 2.5 years for my daughter’s future and for my Retirement. Following is my portfolio.

HDFC Growth fund = 1000
ICICI Pru. Dynamic Plan = 1000
IDFC Sterling Equity Fund = 1500
Reliance Equity opp. fund = 1500
ICICI Pru Infrastructure fund = 2000
Reliance Vision Fund = 1000

I want to stop SIP of ICICI Infra fund and Reliance Vision Fund and want to invest in UTI Opportunity fund 1500 p.m and want to increase SIP of Reliance opportunity from rs. 1500 to 3000 p.m.
Kindly suggest
1. Is it possible to increase SIP of Reliance equity opportunity fund without stop previous SIP ?
2. Should i continue to invest in other funds or any changes require ?

Reply

59 ANIL KUMAR KAPILA

Hi Kawardeep Singh
While selecting the funds all you have to do is to avoid a handful of really bad funds which can be easily identified by comparing the performance of the funds with index and peers. You can select your funds from the ones given in this post. For proper diversification do not select more than one fund from a fund house. Your decision to get rid of Reliance and ICICI fund is correct. You can go for additional SIP in a fund.

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60 Kawardeep Singh

Thanks for your Mr. Anil
Sir please comment should i continue with all other funds other than ICICI Pru infra fund and Reliance Vision Fund ?

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61 ANIL KUMAR KAPILA

IDFC Premier Equity is better than IDFC Sterling equity.

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62 param

want some review on franklin india prima fund.

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63 param

want some review on franklin india prima fund.

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64 R Varadarajan

Excellent Work Hemant. You have started the New Year with an extremely useful article. Well done. Although I have invesment in some of these TOP Funds., I will plan to invest in some of the others identified by you.
R Varadarajan

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65 SHAILESH

Hi Hemant ,
Greetings from DR Shailesh. WISH YOU A VERY HAPPY AND PROSPEROUS NEW YEAR
Kindly help me out by replying to this hypothetical query.

Suppose to start of a portfolio of 70 / 30 , equity : debt

monthly saving of total 70 k – 50 k sip in equity mf / 20 k sip in debt mf . Expected returns from equity 15 % , debt 8 % .

after 1 year – equity mf grown to 6.75 lacs ( from 6 lacs ) . debt grown to 2.6 lacs (from 2.4 )

1. How to go about rebalancing – how much sip in equity and debt in the following year
2. Add to this the confusion of increasing sip allocation of 5 % every year – ho to distribute this addituinal 5 % increase in equity / debt
3. If the expected returns from equity and debt vary – say expected from equity is 18 % instead of 15 % , does it have any impact on rebalancing. In other words is having a higher expectations from equity in long run say 25 years of around 18 % better if one follows rebalancing meticuously ?

Thanks in advance in anticipation of your response

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66 ANIL KUMAR KAPILA

There is always some amount of flexibility in asset allocation. It can never be rigid and it is always subject to change due to several factors. Portfolio should not be rebalanced unless there is a drastic change in asset allocation.

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67 Ankit

Hello Hemant,
Another great analytical article.This will serve as baseline to invest in MF :).
Thanks for your help.

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68 seenu

HI happy new year…please comment about my fund selection:
HDFC Children fund (investment)
FT Franklin india blue chip (growth)
UTI dividend yield fund( growth )
Reliance growth fund (growth plan)
HDFC Growth fund (growth)

Reply

69 dr rakesh kumar

Thanks Hemant, really a good article nd very informative. Realy you doing a briliant job. Thanku once again nd happy new year.

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70 Salil Dhawan

Hi Hemant

A special mention of SBI Emerging Business fund is required as it was able to contain downside in 2011 and excellent returns in 2012. Mr Srinivasan as fund manager has done excellent job.

Salil

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71 babuli

I really feel obliged for your financial lessons.I am a regular investor in various MFs throuh SIPs. Time permits please tell about Fixed Maturity plans, I ve curiosity to know. What ll be its special advantages over other instruments.
I ve sufficient Term insurance plan, free Medical facilty from employer for self and family, Provident fund and superannuation fund with employer,Fixed deposits for liquidity, 6 MFs through Sip includindg Gold fund, still i ve 5000-10000 srplus which i can invest somewhere , kindly suggest. thankinking you Babuli

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72 ANIL KUMAR KAPILA

You can invest in your existing funds if you are getting decent returns.

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73 Dhaval B Doshi

Good article sir, But what is your opinion about contra fund & gold fund..

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74 Srinivas

Dear Hemant,
Excellent analytic article on MFs and will guide many like me.
Thank you

Reply

75 Ketan Gaikwad

Great article. This is the first time I’ve stumbled upon your website,but it is really great and full of useful information. I have never invested in mutual funds,but I think I should as delivery and intra-day tends to get risky at times.
Thanks for the post!

Reply

76 Pankaj

Hi Hemant,
Thanks a lot for this great article.
In the article, you have mentioned that you have considered Rs 2000 Crore as minimum fund size for equity funds.
I have the following funds which have fund size less than 2000 Crore
However some of these funds giving good return, Should I exit any/all of the below funds?
Axis Long Term Equity-G -Tax saver (Asset-263.87 cr)-have since Jan-2012- SIP-2000 pm. –Return 15%
Axis Equity-G (598.32 cr)-since Nov-2010—Return 1%
JP Morgan India Equity-G (282.88 cr.) since Apr-2011-SIP-1000 pm. – Return 13%
JP Morgan India Smaller Companies (133.15 cr) since may-2011—Return 20%
Mirae Asset India Opportunities Regular (257.43 cr) since sep-2012-SIP-1000 pm.—Return-14%

Reply

77 ANIL KUMAR KAPILA

A portfolio should have funds from different fund houses.

Reply

78 Pankaj

Hi Anil,
As you said in your post “for proper diversification do not select more than one fund from a fund house.”
I have the six funds in my portfolio from same fund house (HDFC) which I have selected based on value research rating
HDFC Equity-G – SIP-1000
HDFC MIP Long-term-G
HDFC Mid-Cap Opportunities- G
HDFC Prudence-G
HDFC Top 200-G
HDFC Children’s Gift- Investment- SIP-2000
Do you think I have to exit from any of these?
Kindly suggest.

Reply

79 ANIL KUMAR KAPILA

Since you are already aware of my views there is no point in repeating them. Your portfolio does not make any sense to me.

Reply

80 Kinshuk

Hi Hemant,
Thanks a lot for this great article.
In the article, you have mentioned that you have considered Rs 2000 Crore as minimum fund size for equity funds. I am afraid, I have investments in some funds like Sundaram Global Advantage…which is far less than 2000 crore, though it is a decent fund when it comes to returns. So should I stay invested or should I stop my sip?

Also, please let me know some good global funds …

Reply

81 ANIL KUMAR KAPILA

You can continue if you consider your funds decent.

Reply

82 seenu

please throw some light on my fund selection given earlier and advise

Reply

83 ANIL KUMAR KAPILA

It is OK.

Reply

84 Poulami

Hi Hemant,

Thanks for this article right at the start of the year. I am very new to investing in MF. Will start investing this year onwards. The funds mentioned above and any so in future, how long should one continue to invest in a particular fund, keeping in mind that one has long term goals to meet. Can someone stop investing after 5 years in a particular fund but redeem it only after 10 years? What is a good methodology to maximise the returns?

Regards,

Reply

85 ANIL KUMAR KAPILA

One should continue as long as the fund is doing fine and there is money to invest.You can stop investment and redeem any time. SIP is the methodology.

Reply

86 pratap

Hi,
currently iam investing on followong funds through SIP. Can i continue or modified the portfolio. my aim is to accumulate 1.5 cr in 20 years.

Mutual funds through SIP
HDFC Top 200 – 2000
HDFC Equity – 1000
Fidelity Equity Fund Growth -1000
Franklin India Prima plus – Growth -1000
ICICI Prudential Dynamic Plan Growth-1000
DSP Blackrock Top 100 Equity Fund – 1500

Other investments
AVIVA Child plan – ULIP -2000 per month
AVIVA Term insurance -10000 pa (for 2800000)
LIC Traditional insurance – 24000 pm

pratap

Reply

87 ANIL KUMAR KAPILA

You can continue.

Reply

88 Pankaj

Hi Anil,
thanks for your reply.
now can you suggest me to which fund i should exit.

Reply

89 Arpit

I am planning to invest in the following 3 MF.
1.SBI emerging buisness 1000
2.Reliance Equity opp. fund 1000
3.ICICI Prudential FMCG Fund 1000
Is it k?Or do i need to make any changes in it?
thanks in advance

Reply

90 ANIL KUMAR KAPILA

It is OK.

Reply

91 Madhavan

Hemant/Anil-Belated wishes for new year.I have been with TFL for almost 3 yrs and your article,analysis and comments has helped to understand the practical functioning and expectations to be set while investing.Becoz of this i was able to guide/assist my fellow people for past 2 yrs for investment decision(purely based on ur website) and it has been really worth.right now they are on cloud nine due to their portfolio allocation(based on ur approach) and the return they got.I cant say thank you to u and Anil sir but just wanted to share the credit which i got and all the benefits reaped by us are due to u and Anilji.my only request is we hope that u continue to share ur analysis and knowledge with us whenever u find time.My best wishes for both!

Reply

92 ANIL KUMAR KAPILA

Thanks ! Madhavan.

Reply

93 Anand

Hi

Please explain what is 1m, 3m, 6m, 1yr etc… Does that show expected returns starting from Jan 2013 ?

Thanks

Reply

94 ANIL KUMAR KAPILA

It does not show expected returns which can not be predicted. These are past returns.

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95 Poulami

Hi,

I am looking at a return of approx 10 lacs after 5 years. I have short listed on 4 funds to invest in as SIP every month for the next 5 years. Please provide your feedback for the same.

Franklin India Bluechip-G – Rs. 2500
UTI Opportunities-G – Rs. 2500
HDFC Balanced-G – Rs. 3000
ICICI Prudential Balanced-G – Rs. 2000

Regards,

Reply

96 ANIL KUMAR KAPILA

Your fund selection is OK.

Reply

97 Arnab roy

Can I open Reliance, HDFC, Franklin, BIRLA’s mutual fund through online? Is there any risk to open those fund through online?

Reply

98 HARIOM GURJAR

Dear sir,
Thanks for suggested best mutual fund for 2013.

Reply

99 siva

Dear Sir,
Thank you very much for all your posting. It’s very helpful to us. i am new to investing .
I am planning to invest 2000 monthly in sip for 5 years
HDFC top 200- rs. 1000/-
DSP BlackRock Top 100 Equity Fund -rs. 1000/-
1.please suggest me whether my fund selection is good or do i need to select any other funds?
2.currently i dont have demat & trading account ,
2.1 is it good idea to invest directly through fund house with out having demat & trading account?
2.2 or should i invest through demat and trading account?
please suggest me how to invest based on my above two questions(2.1 & 2.2)
thanks in advance..
Best Regards,
Siva

Reply

100 ANIL KUMAR KAPILA

You don’t need demat account for investing in mutual funds. You can directly approach fund houses.Your fund selection is OK.

Reply

101 siva

Dear ANIL KUMAR KAPILA,

Thank you very much for your reply .
1. I came to know now market is very high ,so i want know is it good option to invest in sip(HDFC top 200- rs. 1000/-)?
2.I want to know is it secure and good option to invest in mutual funds directly through fund house ,with out having a demat and trading account ?
3.will there be any disadvantage, if i invest directly through fund house ,with out having a demat and trading account ?
please do the needful.
Thank you in advance.
Best Regards,
siva

Reply

102 ANIL KUMAR KAPILA

Do not try to time the market. All times are good for investment. Most of the investors who invest in mutual funds do not have a demat account.

Reply

103 siva

Dear Anil ,

Your answer is very much useful to me,and i am very much thankful for that.

Best Regards,
Siva

Reply

104 Debojyoti Das

Hello folks,
I have few questions on my Financial situation and require your inputs on the same. (Little Background: Aged 30 yrs, male, married and kid of one daughter of 1.2 yrs and a single earner.) Current Investment: 1. Term Insurance=50,00,000, 2. LIC Jeevan Anand=10614/-PA till 2023 (SA=1.5 Lakh), 3. LIC Jeevan Ankur=8814/-PA till 2030 (SA=2 Lakh), ICICI Pru Life stage wealth=50000/- PA till 2017 (SA=5 Lakh), PPF=100000 till date. Future milestone: House=50 L in 01-02yr, Children education=30 L in 15yr, Retirement=01 Crore in 20 yr. I just started with 02 mutual fund (HDFC top 200 and HDFC equity) of Rs. 1500/- every month for 12 months.
1. How I should invest moving forward? 2. What should be my time frame for those investments? 3. How i will build corpus amount down the line after 02yrs, 05yrs, 10yrs, 15yrs and 20yrs. Please provide me a balanced portfolio. Please guide.
Thanks always for reading and guiding…!!

Reply

105 ANIL KUMAR KAPILA

You have not mentioned anything about your income and savings. Firstly you have to clearly identify and quantify your financial goals. Then you have to make a financial plan by matching your resources with your goals based on time frames and priority.You have to go for debt for your short term goals and equity for your long term goals.Investments have to be properly diversified to reduce risk. Investing in similar funds of the same fund house does not make any sense.

Reply

106 Debojyoti Das

Thank you Mr. Anil Kumar Kapila for your valuable inputs on my question and i believe, thats why I am asking you all to show me the correct path and provide me with a plan which will suit me in long run. My Thoughts on inv plan for a sal of 10L yearly whose monthly exp.are 50K (will try to reduce as much as possible) would be to park the balance saving per month (approx 20K+) for next 1-2 yrs in bank FD and fetch 8-9% interest so that I can generate a corpus of approx 5,00,000 by Dec-2014 (for House purchase) which is my next short term goal. For my long term goal like Daughter education, marriage and Retirement, requesting you to kindly provide a plan where I can invest those money in equity.May be I will start little while from now, however, I will know where i am investing. Also, I am not using any Demat a/c or not went to any Fund house, therefore, from HDFC, I did purchased these two mentioned mutual fund as i am spending in equity. I will surely give a thought on diversifying the investments, please guide.

Reply

107 ANIL KUMAR KAPILA

For meeting your long term goals have a diversified portfolio of equity mutual funds. Have a maximum of four or five funds of different categories in your portfolio. Not more than one fund of a fund house should be selected. Monthly SIPs work best.

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108 Bimal Das

I have started investing through SIP since 2012 in the following funds:
1. DSPBR Top 100 Equity
2. HDFC Balane Fund
3. IDFC Premier Equity Fund
4. ICICI Pru Focussed Bluchip Fund
5. UTI Opportunity Fund

My target is for 5 to 10 years duration. Should I stick to these funds? How much return can I expect after 5 to 10 years? Please guide me.

Regards,

Bimal

Reply

109 ANIL KUMAR KAPILA

You can stick to these funds.

Reply

110 Deepali

Hello Hemant ji/ Anil ji,

For most of the mutual funds mentioned here, returns for 1yr are high as compare to 3yrs. I would like to know what tenure should we select in this case for investment – 1yr or 3yrs?

I am new to this. Please guide me.

Thanks and Regards,
Deepali

Reply

111 ANIL KUMAR KAPILA

Hi Deepali
Investment in equity mutual funds is done to meet your long term goals. Hence the tenure should be long say more than five years.

Reply

112 Deepali

Thanks Anil ji for your reply… :)

Reply

113 Santosh

Hi Sir,
I am 26 yrs. I started my career now and started my investiment. Currently i have
PPF
Two MF SIP – HDFC (G) – 1000/month , SBI Gold (G)- 2500/month
RD – BOI- 6000/month
RD – ICICI – 2000/month
RD – HDFC – 2500/month

I am planning to buy flat next year, by that time i need money for down payment. I can save another 30,0000/- per month apart from above investments. Please suggest me the best options to help achieve my goal.

Reply

114 Bhavik Merchant

As per your article and other advises from around me i want to start investing in MFS with a small SIP Rs. 5000 per month.

I have other investments in equity markets and Banking FD’s.

Am a first time investor in MF am 27 years married with a Kid and earn about 10 lacs per annum.

Horizion for investment is between 5 to 10 years looking forward with a goal of earning 10% per annum with a medium risk taking capacity on my choices please correct me if am wrong anywhere.

My choices for MF’s which can suit my goal and risk

1. Large Caps – DSP Black rock Top 100 Equity – 1000/month
2. Large & Mid Cap – Icici Prudential Dynamic Plan – 1000/month
3. Balanced Fund – HDFC Prudence – 1000/month
4. Tax Planner – Canara Robeco Equity tax saver – 1000/month
5. Debt Fund – SBI Dynamic Bond Fund – 1000/ month

TOTAL 5000/MONTH

Await your feeds and suggestions want to start it asap.

Regards
Bhavik

Reply

115 ANIL KUMAR KAPILA

Your fund selection is OK.

Reply

116 Arnab roy

Hi Sir,
I am a new investor. Can I open Reliance, HDFC, Franklin, BIRLA’s mutual fund through online? Is there any risk to open those fund through online?

Reply

117 Srinivas

Dear Hemant,
I need one serious advice. Recently i lost my younger brother at the age of 45years. I want to arrange a corpus of 10lakhs in 10years for my brother’s 13year daughter for her marriage. I want to put Rs5000 p/m in one of the mutual funds .Please specify which scheme and MF and tell whether can i achieve this?
Srinivas

Reply

118 ANIL KUMAR KAPILA

You can select two or three diversified equity mutual funds for your portfolio. Keep tracking the performance of your funds after starting your SIPs.

Reply

119 Sekar S

Hi,
I am 50 yrs old and new to this MF investment. From the list provided by you, I have selected the below funds to invest through SIP for 3 years with Rs.2500 in each fund. Can you please suggest whether I can proceed with the below list or should change any.
DSP BlackRock Top 100 Equity Regular – 2500
Birla Sun Life Frontline Equity – 2500
Reliance Regular Savings Equity – 2500
IDFC Premier Equity – 2500
Birla Sun Life 95 – 2500
Franklin Templeton India Income Builder Plan A – 2500
L&T Floating Rate – 2500
SBI Magnum Gilt Short Term – 2500

Thanks in Advance
Sekar

Reply

120 ANIL KUMAR KAPILA

You have selected too many funds.

Reply

121 Deepali

Dear Hemant,

Can you please provide information on Target Investment Plan (TIP) by ICICI direct?

Thanks and Regards,
Deepali

Reply

122 Sekar S

Hi,
As already stated, I am 50 yrs old and new to this MF investment and as suggested by you that I have selected too many funds, I have modified my selection as below funds to invest through SIP for 3 years with Rs.5000 in each fund. Can you please suggest whether I can proceed with the below list or should change any fund or change the amount.
DSP BlackRock Top 100 Equity Regular – 5000
Birla Sun Life Frontline Equity – 5000
Franklin Templeton India Income Builder Plan A – 5000
SBI Magnum Gilt Short Term – 5000

Thanks in Advance
Sekar

Reply

123 ANIL KUMAR KAPILA

You have mentioned the duration of SIP as only three tears. From your selection of funds your objective of investment is not clear to me.

Reply

124 Sekar S

Dear Anil,

I am in a impression that, the SIP can be enough if we invest for 3 years. Please suggest. As I already told you that I am new to this MF investments, please guide.

Thanks
Sekar

Reply

125 ANIL KUMAR KAPILA

Investment in mutual funds is done to meet your long term goals. Before designing your portfolio the objective of investment must be clear to you. Investment portfolio is not an end but means to achieve your goals.

Reply

126 Arnab roy

Hi Sir,
I am a new investor. Can I open Reliance, HDFC, Franklin, BIRLA’s mutual fund through online? Is there any risk to open those fund through online? Can I open
DSP BlackRock Top 100 Equity Regular,Birla Sun Life 95 through axis,hdfc,sbi bank?
Thank & Regards,
Arnab

Reply

127 ANIL KUMAR KAPILA

Any bank account can be used for mutual fund investments.

Reply

128 N Bhawaani Rao

Firstly I thanks to tflguide.com and team for sharing their knowledge with us..:)

Recently, i passed my college. now i am working. please ! give your advice for SIP investment (Portfolio) and other important tips for finance.

warm regards
N Bhawaani Rao
Graphic Designer & Video Editor
Raipur

Reply

129 Mayank

What should be the ideal bifurcation of the total SIP amount. lets say for SIP of 20000 per month what percentage should be divided in each – large cap, small and multi cap, mid cap, balanced fund etc.

Reply

130 ANIL KUMAR KAPILA

Around 60% in large cap and balanced funds and balance in other funds.

Reply

131 Mayank

Thanks for the reply.
my current SIP Portfolio contains
DSP Blackrock focus 25 fund – 2000 per month
DSP Blackrock micro cap fund – 2000 per month
HDFC Gold fund – 2000 per month
HDFC Balanced fund – 2000 per month
HDFC Mid cap oppurtunities fund – 2000 per month
now i am planning to start another SIP 10000 per month. any valuable suggestions from your side, like in which funds i need to invest into?

Reply

132 ANIL KUMAR KAPILA

For diversification it is better to avoid the fund houses where you are already invested.

Reply

133 Mayank

ok
what about investing now in
Franklin India bluechip, ICICI pru top 100, UTI oppurtunities, Birla frontline equity, Canara robecco equity diversified??
Are the funds i already invested good for long term horizon (10 + years)?

Reply

134 ANIL KUMAR KAPILA

You don’t need so many funds.

Reply

135 Anuradha

Hai Hemant
The article is very informative and really helps a person like me to know How a SIP works. I am 34Yrs old and I would like to invest in SIP, iam new to it. Will you please help me or suggest me in which I could invest. My budget for SIP investment is Rs 2000/pm.
The investment is mainly for my son’s education expenses.He is 10 year old, last year I took LIC Komal Jeevan,of a sum assured of 1 lakh, is it good, the premium is 15000/year for 10 years..please suggest me regarding this, and is it pan card necessary for SIP. Where to contact in Mysore.Waiting for your valuable comments.

Thank You,

Reply

136 ANIL KUMAR KAPILA

You can start with a balanced fund. Proof of address and identity is needed for KYC compliance.Hence PAN Card will be needed. Fund house can be approached for investment.

Reply

137 Behin

Hello Sir

I have a Endowment Fund in Birla Sun Life Insurance with the Rider option. The fund is SUPER 20 with majority of the amount going for equity. Policy term is 20 years and 5 paying years and I have paid premium for 3 years sofar. I took the policy from a relative and had no idea about funds, now when analysing the performance (from Dec 2010) the return is very poor.
There is an option to diversify the funds among the other Birla funds, how should I diversify the funds among equity and debt(we need good returns featuring child education (2 year child), retirement(age is 30 as if now)).
I am confused whether to continue the same fund or shd I diversify the funds to achieve the goals I have stated. Kindly guide me

Reply

138 ANIL KUMAR KAPILA

Insurance and investment have different purpose and should not be mixed.

Reply

139 anno

hi
nice articles, keep up the good work

Reply

140 Manohar

Hi Hemant,
I am new to SIP. After reading some of your articles, I have decided to invest in SIP. Really speaking your articles are eye opener for me. Based on your advice and proposal, I have come up with my portfolio:

DSP BlackRock Top 100 Equity Regular 2500
HDFC Equity 2500
Reliance Regular Savings Equity 2000
SBI Emerging Businesses-G 1500
UTI Opportunity 1500
ICICI Prudential Focused Bluechip Equity 2000

This investments are for my daughter college and marriage and my retriement.
Expectations:
- daughter college in 7th year expected 10 lak
- daughter marriage in 13th year expected 15 lak
- retriement at 15 year expected 25 to 30 lak.

Totally minimum 50 lak.

As I am starting my inestment, I am planning for one year to start with.
Pls advice on my fund selections and amount sharing amoung the funds will help me to acheive my target.

Thanks for the help.
Manohar

Reply

141 Manohar

Hi Hemant,

Can you pls help to my request. If you need any more information, I will provide.

Regards
Manohar

Reply

142 ANIL KUMAR KAPILA

Your fund selection is OK but you need to invest more to meet your goals.

Reply

143 manohar

Thanks Anil.

Reply

144 mohan kumar

I want to invest Rs 4000 in SIP. Please suggest. Iam investing Rs. 1000/- monthly in SBI PSU fund for last 3 yrs. Please tell me the future of fund as till date its growth is (-).

Reply

145 ANIL KUMAR KAPILA

Investing in sector funds is risky.

Reply

146 M G Venkatesha

I have invested in SBI emerging mutual fund and SBI Pharma fund SIP monthly Rs.5000/ each for the period of five years. Please let me know is it OK.

Reply

147 ANIL KUMAR KAPILA

For diversification it is better to invest in funds of different fund houses.

Reply

148 Chandra

Hi Hemant…

With so many uncertanities and lack of promising reforms… reg investments which one should we stick to… “Known Devil or Unknown Angel”? Known Devils like guranteed fixed returns from RD’s, PPF (~9%) or Unknown Angels like Equity, MF, ULIP’s etc where returns are at best 12-15% with greater risks invloved… The most common saying “SIP’s average over period of time” and we earn good returns must be relooked / rethought… i read somewhere that Japanese market are the same or infact lower than what it was 27 yrs ago… In India i can surely say its lower compared to 5 years ago and 5 yrs is a long term when we talk about MF’s…

You may argue or put it simply that the risks a person takes depends on his age, goal etc… whatever the reason, is it really worth taking high risks just to earn a little extra (comparing fixed 9% to variable 12-15%)… Pl let us know your views!!!

Regards,

Chandra

Reply

149 ANIL KUMAR KAPILA

Asset allocation is the key.

Reply

150 ANIL KUMAR KAPILA

Equity is growth engine, debt is safety air bag and gold is lifeboat of a portfolio.

Reply

151 Hemant Beniwal

Awesome quote Anil Ji :)

Reply

152 ANIL KUMAR KAPILA

Thanks ! Hemant.

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153 Bimal

Dear Anil Ji & Hemant Ji,
Grateful, if kindly guide me whether I should maximise contribution to my EPF or invest the additional amount (planned for routing to EPF) through SIP for long term wealth gain. Which will be more beneficial?

Regards,

Reply

154 ANIL KUMAR KAPILA

Equity and debt both are important. Have proper asset allocation.

Reply

155 Bimal

Dear Anil Sir,
I am not yet clear. Being a salaried person, should I maximise contribution to my company’s Employee Profident Fund (EPF)
which is guaranted or allocate some amount to mutual funds through SIP for long term growth? Kindly clarify.

Reply

156 ANIL KUMAR KAPILA

Investment in equity mutual funds is done to meet your long term goals. The mix of equity and debt that is right for you depends on how far you have to go and how fast you need to get there.

Reply

157 Kevin

Dear sir,
Am investing Rs.4000/month on mutual funds through SIP from Feb 2012.
My portfolio is as follows
Hdfc top 200 – Rs.2000/month
Hdfc equity (growth) – Rs.2000/month

my question is Can i continue this or i have to make any changes in it?
Kindly give your feedback.

Reply

158 ANIL KUMAR KAPILA

It is better to invest in funds of different fund houses for diversification.

Reply

159 S K DUARAH

I have SIP in following funds : 1)ICICI Pru Focused Bluechip Retail(G)(Rs. 6000 p.m) 2)L&T India Large cap fund(G)(Rs. 2000 p.m.) 3)IDFC Premeir Equity Plan-A(G)(Rs.4000 p.m.)4)Reliance Equity Opportunities(Rs.1000 p.m.).After investing for one and half year, recently I checked the performance of these fund and found that L&T India Large Cap(earlier known as – Fidelity India Growth)is performing at average level.Should I switch to another fund in the same category? Please suggest some funds , if yes.

Reply

160 ANIL KUMAR KAPILA

You can select any large and midcap fund from the table given.

Reply

161 sanjay

hi
shall i continue my Fidelity equity fund further after L&T take over.My sip is 2 yr old

Reply

162 ANIL KUMAR KAPILA

Track the performance of the fund.

Reply

163 Sekar S

Dear Anil,
I am planning to start SIP from April 2013 as below. Can you please advice whether the selection is good or some to be modified.
HDFC Top 200 – Rs.2000 (Equity)
Reliance Equity Opportunities – Rs.2000 (Equity & Debt)
Mirae Asset Bluechip Fund – Rs.2000 (Software)
Reliance My Gold Plan – Rs.2000 (Gold)
Religare Banking Fund – Rs.2000 (Banking)
Axis Bank – Rs.2000 (MF with Insurance option by Axis Bank)

Thanks in Advance.
Sekar

Reply

164 ANIL KUMAR KAPILA

Sector funds are risky. Insurance and investment should not be mixed.

Reply

165 MALI

Intresting article(s) and discussions. It shows that the awarness of the investment is on an increase.

Just a comment – For a NRI account holder do you think that instead of investing in Debt fund it will be better to have a fixed deposit where the interest rates are around 9.5% (compounded). For the felxibility either the deposits canbe of various tenure or the totla deposits canb ebroken up to various small ones whihc can be cashed whenever requied.

Reply

166 sangeeta

S.no Name of Policy Start date amount End date Sum Assure +
Bonus
1 HDFC Saving Assurance Policy Jan,2010 24000 annual
Jan,2020 200994
2 HDFC Sampoorn Samridhi Aug,2011 25000 annual Aug,2015
85957
3 LIC Jeevan Saral June,2009 36000 annual March,2037 750000
funds
1 LIC Market Plus-1 Sept, 2009 20000 once
2 Axis Triple Adv Growth 4000 units
3 Axis Hybrid fund series 1 Growth 3000 units
SIP ICICI focus Bluchip equity Fund Growth 1000 monthly
Name: Sangeeta
Age: 42 Years

Dear Sir,
Kindly advise me regarding HDFC SAP and LIC Policy. I am confused after reading your articles. Should I keep paying for these two policies or should I stop paying.
Waiting for your reply.
Thanks and regards,
Sangeeta.

Reply

167 MOHAN

Dear Mr. Beniwal,
This year I have closed and claimed Additional amount of Rs. 121901 from Approved Super Annuation Fund (A Trust managed by my organisation, means I will receive two Form 16 one from my organisation and another one from Trust).

Please guide whether I am required to pay additional Income Tax if I club both the income as per IT Rules ??

if yes, please let me know how much amount I am required to pay as advance tax to avoid penalty / interest.

SALARY AND SUPERANNUATION FUND DETAILS

Salary Details:
Income under the head Salaries 649,209.58
Gross Total Income 649,209.58
Less Deductions u/s 80 100,000.00
Total Income 549,210.00
Tax on total income 39,842.00
Education Cess 797.00
Sec and Higher Educ Cess 398.00

Total tax payable 41,037.00
Relief U/s 89(1) –
Tax deducted so far 41,038.00
Balance Tax (1.00)

Superannuation Contribution Settlement details
Amount/Rs.
Opening Balance as on 1st Apr 2012 125,844
Add:
Interest for 2012-13 (April 2012 to July 2012) @ 8.65%. 3,629
Accumulated Balance 129,473
Less: Income Tax 7,572
Net Payable 121,901

thanks in advance.

best regards,
MOHAN

Reply

168 ALI IMAM

I have a policy in icici LifeStage Pension Advantage, annual premium is 50,000/ ,i have taken in 2010,till today i paid 3 premium of 50,000/ total 150000, but growth is only 151400,,,my ratio of invest is 90 perc equity and 10 perc debit,,should i change the ratio as per present .

Reply

169 amitava banerjee

Hi,
Gr8 article. Thanx. I have some queries.
I am 39 years , my net sal is 75k, My expenses are 35k, I do Recurrring Deposit of 15k. I want to do SIP of 10k in the following funds…….
Birla Sun Life Frontline Equity – 2k
IDFc Premier Equity – 2k
Reliance Equity Opportunity – 2k
SBI Magnum Income Fund – 2k
SBI Magnum MIP – 2k
Is this correct with a horizon of 10 years?

Reply

170 ANIL KUMAR KAPILA

I don’t understand why you have selected SBI funds.

Reply

171 amitava banerjee

I wanted to have balanced fund and MIP also in my portfolio. What should I choose there? Should I go for HDFc Prudence for balanced ? Then what for the MIP ?

Reply

172 ANIL KUMAR KAPILA

Selection of funds depends on your objective which is not clear.

Reply

173 Ishika Sharma

Hello All,

I am new to this website and completely hooked on to this site for past two days and have read about 80% of the articles. I must say I have learnt a lot and many doubts got cleared. I was googling information on investments to create a portfolio for my husband and stumbled on to this site. And based on recommendation and suggestions of Mr. Anil and Mr. Hemant, I have designed an investment portfolio for my husband (35 years old) for the education of our new born child. Since I am an amateur and new in this area. I would really appreciate if someone can validate the feasibility of this portfolio of 12000 per month investment in following funds:
a) HDFC Top 200 (3000)
b) Franklin India Blue Chip (2000)
c) ICICI Pru Focused Bluechip Equity (2000)
d) IDFC Premiere Equity (2000)
e) SBI Emerging Business (1000)
f) Reliance Equity Opportunity (1000)
g) Birla Sunlife Frontline Equity (1000)

Reply

174 ANIL KUMAR KAPILA

Your fund selection is good. You could have managed with even three to four funds.

Reply

175 Ishika Sharma

Thanks Mr. Anil, I have actually followed the guideline of 7 funds. I will drop Reliance Equity Opportunity and ICICI Pru Focused Bluechip Equity.

Reply

176 ANIL KUMAR KAPILA

These funds are also quite good and can be retained.

Reply

177 A GANESAN

Aged 45 years and i intend to invest 500k every year for around 10 years from now onwards for my retirement, since i dont have pension from my employer

Reply

178 vivek

Dear Hemant
I want to invest Rs.30000/month in SIPs. How should be my portfolio as regards
Large cap,large & mid,small & mid cap,balanced,debt etc?

Reply

179 vivek

Of this 30000, Rs.5000 I have already invested in SBI emerging business.

Reply

180 Jaydeep

Hi.
This is a really helpful and informative article. Thanks!

One question if you can pls. answer (from a naive MF investor u can say :-)

If it is stated (for example) that the Annualised Return of an MF is say, 8 % over 5 years, and if money invested was Rs. 1000/-
In such a case, will the final gain (over and above Rs. 1000) after 5 years be:

(a) 8 % of 1000

OR

(b) approx. (5*8 %) of 1000 ?

Reply

181 Dr Kuntal

answer is (b)

Reply

182 Basit

Hi Hemant,

well i am investing in MF SIP for HDFC top 2oo G for 10k for past 2 years, franklin India Blue chip G for 8k for past 1 year also IDFC cash fund g +BSL frontline equity for 2.5k pm for last 3 months.

Please advice me about the above selection to continue or change the script.

Regards
Basit Rizvi

Reply

183 Vikas

Hi Basit,

Read the below article to know how to create an investment portfolio
http://www.tflguide.com/2011/12/core-satellite-fund-portfolio-investment-approach.html

Reply

184 SEKAR S

Dear Anil,

As I have completed 50 years now and to plan for my retirement, I planned to invest in the following MFs. Request you to suggest whether I can go with these selected funds please.
DSP Black Rock Top 100 Fund – Rs.4000
HDFC Top 200 Fund- Rs.4000
Reliance Regualar Savings Equity Fund- Rs.4000
SBI Emerging Business Fund- Rs.4000
UTI Opportunity Fund- Rs.4000
ICICI Prudential Focused Bluechip Fund- Rs.4000
Birla Sunline Frontline Fund- Rs.4000
Franklin Blue Chip Fund- Rs.4000
Please advice.

Reply

185 Vikas

Dear Mr.Sekar,

While you are planning to invest for retirement you need to answer questions such as how much volatility in your investments you will be comfortable with?Are you planning to earn any regular income after a specific period? Is this will be the only source of your income or how much of this surplus you will utilized for generating regular income?. These questions will help you in analyzing what kind of portfolio you should look at. Should it be equity oriented or debt oriented will result from such analysis which will also give you the schemes categories to select.Your schemes selections are good but create a portfolio after analyzing your needs.

Reply

186 ANIL KUMAR KAPILA

You can consider these funds if your investment horizon is around ten years. You could have managed with four funds.

Reply

187 Suresh

Hi Hemanth,

I am 38 yrs old and as per your advise I am investing in the below mutual funds as monthly SIP for the past two years.

HDFC Equity – 2500
Franklin India Bluechip – 2500
UTI dividend yield fund – 2500
SBI Emerging business fund – 2500
UTI oppurtunities fund – 2500
Reliance Pharma fund – 1000
Reliance Gold saving fund – 1000

Kindly suggest me if my portfolio is balanced in the current market scenario or should i change my asset allocation.
Reliance Gold saving fund is in negative for the past 7 months, should I continue to invest.
I wanted to increase my SIP allocation by 2000 rs more, can you please suggest in which fund should I start SIP for this additional 2000 rs.

Thanks always for your kind inputs and help.

Regards
Suresh

Reply

188 ANIL KUMAR KAPILA

It is better to invest only in one fund of a fund house. Additional amount can be invested in existing funds.

Reply

189 madhavan

Anil/hemant
I have been a loyal reader of your website for long time and started creating my wealth as per the directions.In my portfolio reliance gold saving fund is suffering for long time guessing 3- 5 months and im holding it becoz of the fallen gold prices.is my strategy of holding is correct or can i withdraw and start investing in equity.The way of investment is thru sip and the amount invested per month is 2000 for almost 1.5 yrs
total value is less than the cost .provide me a direction pls.

Reply

190 ANIL KUMAR KAPILA

Asset allocation is the key in investing. At any time some asset class will not do well. You have to consider the overall performance of your portfolio. Exposure to gold should not be very high.

Reply

191 Ishika Sharma

Hi Mr. Anil / Mr. Hemant,
Even I have the same doubt as Mr. Madhavan. Infact, the amount of SIP and tenure is also same. I am investing in HDFC Gold Fund. Please provide us some guidance.

Reply

192 ANIL KUMAR KAPILA

Performance of gold fund will depend on the price of gold and it is not possible to predict how the price will vary in future. Keep the exposure to gold low in your portfolio.

Reply

193 madhavan

Ishika-There was even a situation some 6 months back when gold was touching high reliance was giving 30 % return and in the same period HDFC was at 15.6%.I guess ur selection is good when compared to mine as i get hit when its low and i ride high when its vice versa where u could sail with a minimum return by banking with HDFC.

Reply

194 Arbab Sikander

Thanks for the article, My question is during the asset allocation, how much percent should allocate for sector funds. Like large cap 50%, large and mid cap 20% and small mid cap 30%. so where should we put the sector fund and how much?

My second question is HDFC top 200 fund is large cap or large& mid cap. In money control site its is come under large cap and other sites as large and midcap. similarly Birla frontline equity fund, Quantum long term equity fund is come under which category?

Reply

195 Vikas

Hi Arbab,

Read the below article which will tell you how to decide asset allocation

http://www.tflguide.com/2011/12/core-satellite-fund-portfolio-investment-approach.html

Every rating company has certain parameters and within which they decide the categories. Yes it can vary as the name of categories may be different . You should look at the fact sheet which will tell you the definition of a large cap and a mid cap fund. The portfolio of the respective scheme will give you information on the exposure the fund is taking in different stocks and how they are classified as per the definition of large cap or midcap.

Reply

196 Shahnawaz H Khan

I am totally new to Mutual Funds. I am 30 yrs old and plan to retire around 45 yrs.

Request your guidance as which funds i should invest and how much.

Brgds
Shahnawaz Khan

Reply

197 rama krishna

Hi Sir,
Is it worth to invest in Mutual funds by seeing the past trend? I feel mutual funds gave returns since in the past the sensex has gone up fromm 10,000 levels to 20,000 levels so only it was showing high returns like 25% to 40%. So whether to invest in MFs when the sensex is in high time now ? and to get the returns like 25% should the sensex reach 30000 levels ? though the fund is not directly linked to the sensex, sensex shows the behavior of stocks so I compared the fund with sensex.

Reply

198 Saikat Sircar

Hi,
I am 43 and investing Rs 86000/- through MF SIP every month.
I am having a moderate risk appetite and want to be in the investment for 15/20 years window. I have a complete faith on equity returns and my target is to have 10 cr after 15 years and my MF SIPs are:
1) Franklin – 10k
2) ICICI Pru Blue Chip – 10k
3) BSL Frontline Equity A – 10K
4) UTI Opportunities – 10k
5) HDFC Midcap – 5k
6) IDFC Premiere Equity – 10k
7) SBI Emerging Business – 5k
8) Reliance Equity Opportunities- 10k
9) Templeton India Equity Fund – 4k
10) UTI MNC – 5k
11) BSL Gen Next – 5k.
Please advise whether my portfolio funds are good and sufficient enough to achieve the goal of 10 cr in next 15 years or not? If not, then what should the suggested portfolio and Fund mix?
Regards,
Saikat

Reply

199 Vikas
200 K C Rana

Hi Sir,

I want to open SIP in a mid cap i.e. Quantum Long term equity fund for 10-12 years.
In accordance to volatile market ;Please suggest which option would be better:
1.Fortnightly SIP or
2.Monthly SIP

regards,
K C Rana

Reply

201 Vikas

Hi Rana,

You can go ahead with fortnightly SIP.

Reply

202 Soma Giri

Hi,
I wan to start SIP for my daughter who is currently 3 yrs 4 months old. Please suggest some good funds that could fulfill my following requirements :
1. At the age of 18 –> 15 lakhs (for graduate study)
2. At the age of 23 –> 12 lakhs (for marraiage)
Please suggest how much I could invest in every months so that I can achieve my goal.

Reply

203 Vikas

Hi Soma,

You should check for your requirement-

http://www.tflguide.com/services/fundsketch

Reply

204 MOHAN KUMAR

Hello sir, My age is 42. I want to invest Rs. 6000 as SIP in mutual fund. Please suggest me the funds, I should invest in. I am already investing 1000 in SBI PSU fund and rs 2500 in Birla sunlife ins. policy. Please also suggest, shall I continue SBI PSU fund as the rates have gone too low. What are the chances of recovering of this fund.

Reply

205 Vikas
206 subhod kumar

Hi sir, My one friend invested in Reliance mutual fund, he is very satisfied with good returns so i am also planning to invest 50,000 Rs. in Reliance Mutual Fund. will you tell me if i will invest now then which scheme will give good returns in next 3-5 year. waiting for your reply.

Reply

207 Arnab Roy

Hi,
I wan to start SIP for my future. My age is 24 now, I want 5-6lakhs after 5 yrs. Please suggest some good funds.
Thanks & regards,
Arnab

Reply

208 Vikas
209 dr.daya Ram

Hello sir
Iam new to sip , Iam doctor, I want to invest in sip for 10 years ,Rs.15000/month, my current sip funds are,UTI EQ OPPORTUNITIES
Rs. 3000 , ICICI FOCUSED B CHIP Rs.3000 , HDFC MID CAP Rs.2000 .
I further want to invest 7000 in sip , I have shortlisted few funds , please guide me to select 3 of them.
1)RELIANCE EQ OPPORTUNITIES RP, 2)SBI EMERGING BUSINESS F
3)SBI MAGNUM BOND F ,4) ICICI PRU DISCOVERY F ,
5 )IDFC STERLING EQ G FUND , 6) BSL 95
If these are not better, then please suggest other ones, also give comments about my portfolio is it balanced or not. waiting for the reply.
Regards
dr. daya Ram

Reply

210 Vikas

Dear Dr. Ram,

You can check this for your requirement-

http://www.tflguide.com/services/fundsketch

Reply

211 raj

Hi hemanth sir,

I am new to MF. i am 31yrs old. i want to start invest in MF through SIP.

after reseraching in online & yours blog etc,

i decided to start invest initially

2000Rs in ICICI pru focussed bluechip fund(G) & 1000Rs in SBI emerging Business fund for a long term of 25 to 30 yrs.

can you please suggest me if it is good or any changes required. this is for only for my retirement purpose at 60yra age

Reply

212 Vikas

Hi Raj,

For creating a Mutual Fund Portfolio you can read here-

http://www.tflguide.com/2013/09/core-satellite-fund-portfolio-investment-approach.html

Reply

213 Mrs.Nilima Palsamkar

I am 40yr.old. if i invest 1000rs monthly in which MF then i will get good return on investment upto 60 yrs of my age.

can you please suggest me which is good? I am middle class person so i didnt understand in any investment can u guide me?
How i can contact to you?

Reply

214 Vikas

Hi Mrs. Palsamkar,

You can select a balanced fund from below list-

http://www.tflguide.com/2013/01/best-mutual-funds-to-invest-in-2013-india-top-schemes.html

Also check this for your requirement-

http://www.tflguide.com/services/fundsketch

Reply

215 Ankur

Hi,
After looking at the last three year return for DSPBR Top 100 equity and ICICI Prudential Bluechip , is it advisable to switch from DSP to ICICI ?
Or till now whatever invested in DSPBR leave it as it is and then start new SIP with ICICI bluechip.
I have Franklin India Bluechip & HDFC top 200 as well, I invest 4k per month in each.
Pls advice.
Thanks

Reply

216 Mahesh

Hi Hemant,

Very informative blog and thanks you for keeping us financially aware.

My age is 28yrs. Below is my portfolio and doing SIP (Growth Option) from Nov 11 when it was from Regular mode which I converted them to Direct Plan for avoiding any charges.

• Reliance Equity Opportunities Fund of Rs 1000
• IDFC Premier Equity Fund –Rs 2000
• ICICI Prudential Focused Bluechip Fund Rs 500
• Quantum Gold Saving Fund Rs 1000
• HDFC Balanced Fund (SIP from April 14) Rs 1000
• UTI Opportunities Fund (SIP from April 14) Rs 1000

I have stopped SIP in HDFC top 200 and DSP Blackrock Top 100 Equity Fund from April 14 onwards as replacement of HDFC balanced fund and UTI opp fund

I have Kotak Term Insurance of 25 Lac with 5 lac of Aegon Religare Health Insurance. Also have LIC Money back Policy of 50k. Also investing in PPF for saving purpose.

Please review my portfolio and advice any changes required and whether I can add International fund and Pension Plan ie Templeton India Pension Plan with NPS.

Reply

217 Mahesh

Request to please review my portfolio as provided above and suggest any changes required. Thanks in advance

Reply

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