need investment advice

Question

Hello Pankaj,

I am investing 22,500/- per month in MF through 13 different SIP. I have attached given the MF list.Almost all are running with loss.I want to have online access for my MF's so decided to go with fundsindia. I have balance of 2,00,000/- from last 1-2 years through these MF. Now I want to close these existing MF SIP & want to open new best MF and want to continue with monthly 25,000/- savings and the same time want to invest the 2 Lacks in the same MF or somewhere else where i can get more return. I want to go for long term investment, so i can use these money for my daughter's (Now 3 yrs old) education/marriage.

Sr No MF Name Amount 1) AIG World Gold Fund --> 1000 2) Canara Robeco Balance Fund --> 1500 3) DSP BlackRock Focus 25 Fund --> 2000 4) DSP BlackRock Small and Mid Cap --> 2000 5) DSP BlackRock World Energy Fund --> 1000 6) IDFC Premier Equity Fund - Plan A --> 2000 7) Mirae Asset Global Commodity Stock Fund --> 1000 8) Mirae Asset India Opportunities Fund --> 2000 9) Morgan Stanley A.C.E. Fund --> 2000 10) Reliance Diversified Power Sector Fund --> 2000 11) Sundaram CAPEX Opportunities Fund --> 2000 12) Sundaram Select MidCap --> 2000 13) RELIANCE REGULAR SAVINGS FUND - EQUITY PLAN - GROWTH OPTION - GROWTH --> 2000

Total   22500

So i need your advice on....

1) which MF should i select (best MF)? can you please give the MF list? so i can have well balanced portfolio 2) How many MF should i select to invest 25,000/- per month? 2) where i can invest the saved amount in last 1-2 yrs (Rs 2 Lac) 3) am i right on the above decision? If no, Is there any other option? please suggest

My age:- 36 yrs. occupation:- Service & can take risk

Thanks in advance

Pankaj Batra · Answer

Due to bad ecomic conditions globally, your investments in SIP may have been showing a loss. Equity mutual funds come with this risk, but as seen in past, thet generate better returns than other forms of investments in a loner run like 8-10 years.

Its good that you are considering mutual funds investments fot your long term goals like children education and their marriage.

There is generally no need to invest in multiple funds from same categories, I would advise you to pick one best fund from each of the following categories:

Large Cap: DSPBR Top 100 equity, Franklin India Bluechip and ICICI Pru top 100.
Multi Cap: HDFC Equity, Templeton India Growth, HDFC Growth and Reliance Regular Savings Equity
Large & Mid Cap: Fidelity India Growth, ICICI Pru Dynamic Inst I, HDFC Top 200 and Canara Robeco Equity Diversified, Franklin India prima plus, Fidelity Equity, Birla Sunlife frontline equity and UTI dividend yield
Mid and small cap: IDFC Premier Equity, ICICI Pru discovery Inst I, Birla Sunlife Pure value and Birla sunlife Dividend yield plus.

You may also consider adding one fund from balanced category like Reliance Regular Savings Balanced, HDFC prudence, DSPBR Balanced, HDFC Balanced, HDFC Children's Gift and Birla Sunlife 95.

Thematic funds like power, infrastructure, energy funds are realitavely riskier in nature and avoid investing in them.

For Rs 2 lacs you already have, invest into a liquid/debt based fund and start a STP (Systematic invsesment plan) into equity diversified funds.

I strongly advise you to read following pages as well:

need investment advice

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