{"id":186485,"date":"2023-12-12T04:26:37","date_gmt":"2023-12-12T04:26:37","guid":{"rendered":"https:\/\/indiansapidnews.com\/?p=186485"},"modified":"2023-12-12T04:26:37","modified_gmt":"2023-12-12T04:26:37","slug":"can-my-mfs-create-rs-1-cr-in-10-years","status":"publish","type":"post","link":"https:\/\/indiansapidnews.com\/celebrity\/can-my-mfs-create-rs-1-cr-in-10-years\/","title":{"rendered":"‘Can my MFs create Rs 1 cr in 10 years?’"},"content":{"rendered":"

Do you have mutual fund queries?
Please ask your questions here and Ulhas Joshi, CEO, RankMF, will answer them.<\/strong><\/p>\n

Anonymous: Hello Sir, I want to make investment of Rs 25,000 per month into Mutual Funds through SIPs for a period of 10 years to 15 years, request you to recommend your suggestions for the purpose.<\/strong><\/p>\n

Hello and thanks for writing to me. As your goal is long term & assuming that you are fine with taking risks, you can consider starting SIP’s of Rs.5,000 each in:<\/p>\n

1. Edelweiss NIFTY 100 Quality 30 Index Fund<\/p>\n

2. DSP Quant Fund<\/p>\n

3. SBI Focused Equity Fund<\/p>\n

4. UTI Flexi Cap Fund<\/p>\n

5. Tata Ethical Fund<\/p>\n

Do note that periodically rebalancing your portfolio is essential to ensure you are on the right track. Stepping up your SIP’s every year will help you reach your goals faster.<\/p>\n

Vaman: Sir, Is it advisable to invest in multi asset fund? I would prefer to invest in icici prudential or Aditya Birla Sun Life multi asset fund. Is there any asset fund which has gold oil (petrol) equity in its fund? Is it advisable to invest in lump sum or systematic investment plan? Expect clear direction from you. I am ready to invest lump sum of Rs. one lakh or RS.10000 pm in elss. I would like to create a corpus for my grand daughter. She already has PPF& SUKANYA a\/c in her name since 2018 investing one lakh fifty thousand rupees in each account. Kindly advise proper strategy for future education and marriage. <\/strong><\/p>\n

Hello Vaman and thanks for writing to me. Multi asset investment in a mix of equity, debt and commodities like gold and silver. As they have exposure to most major asset classes, they can be less volatile and generate consistent returns. Multi asset funds can be good options for investments towards the end of the investment period when you wish to minimise risk and volatility. I do not see your grand daughter’s current age, goal amount and your risk tolerance so I am writing the answer assuming that you plan on staying invested for around 15 years.<\/p>\n

As your goal is to create a corpus for your granddaughter, you can first start SIPs in a mix of small and mid-cap funds for a period of around 10 years. Post that you can stop your SIPs in these funds and begin investments in multi asset funds and large cap funds.<\/p>\n

You can consider SIPs in:<\/p>\n

1. UTI Small Cap Fund — Rs.2,500<\/p>\n

2. Sundaram Small Cap Fund – Rs.2,500<\/p>\n

3. DSP Midcap Fund – Rs.2,500<\/p>\n

4. SBI Magnum Midcap Fund – Rs.2,500<\/p>\n

Note that these I may recommend other schemes if you give me other information like your goal amount, tenure for which you want to invest and risk tolerance.<\/p>\n

As for the other avenues of investment like PPF and Sukanya Account, I only discuss mutual funds in this column. I recommend you meet a financial advisor who can chart a concrete plan for you keeping in mind your own risk tolerances and investment horizon.<\/p>\n

Anonymous: Dear Mr Ulhas, what are the tax benefits of investing in a mutual fund? How can I save tax by investing in SIPs or mutual funds? How much can I invest per year to avail benefits?<\/strong><\/p>\n

Hello and thanks for writing to me.<\/p>\n

I believe you are writing about investing in Equity Linked Savings Schemes investments to save on income taxes.<\/p>\n

As per current rules, if you invest Rs.1.5 Lakh in ELSS schemes of various mutual fund houses, you can save around Rs 46,800 every year in income taxes under Section 80C of the Income Tax Act.<\/p>\n

Investing in these funds carry a mandatory 3-year lock-in and you will not be able to redeem the investment till 3 years have passed.<\/p>\n

I recommend you consult a tax advisor who can help you plan your taxes and explain how gains in investments in equity, debt or other mutual fund types are taxed.<\/p>\n

Sanjeev: Hi, I am investing 5K in HDFC Small cap, 2.5K in HDFC Midcap, 5K in HDFC infrastructure fund, 2.5K in Union small cap, 5k in Aditya Birla pharma and healthcare, 5K in ICICI Pru Small cap, 5K in IIFL focused fund monthly (Total of 30K\/month). Is the fund selection good enough to generate 1CR in 10yrs?<\/strong><\/p>\n

Hello Sanjeev and thanks for writing to me.<\/p>\n

I notice that you are investing in 2 thematic funds, ABSL Pharma & Healthcare and HDFC Infrastructure fund. Performance of thematic funds depends can be subject to economic shocks and tailwinds of the particular sector.<\/p>\n

You can consider pausing investments in these funds increase investment allotments to the other funds.<\/p>\n

Assuming that you are able to generate 12% XIRR returns, you will need to increase your investment to Rs.44,000 every month.<\/p>\n

Anonymous: Hi sir, i want to invest 10k per month in mutual funds. Please suggest.<\/strong><\/p>\n

Hello and thanks for writing to me. You can consider starting monthly SIP’s of Rs.2,000 each in:<\/p>\n

1. Edelweiss NIFTY 100 Quality 30 Index Fund<\/p>\n

2. SBI Focused Equity Fund<\/p>\n

3. Canara Robeco Focused Equity Fund<\/p>\n

4. Parag Parikh Tax Saver Fund<\/p>\n

5. UTI Flexi Cap Fund<\/p>\n

Note that the Parag Parikh Tax saver fund has a 3 year mandatory lock in and will also help you save taxes. I am assuming that you are looking to invest in mutual funds for long term wealth creation and are fine with taking the risks associated with equity mutual funds. If you provide other details like your age, goals and risk appetite, I may recommend other schemes.<\/p>\n