Best Mutual Fund For SIP

Best Mutual Fund for SIP

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Which is the best mutual fund for SIP? I think this is the most common question I came across; be it TFL, through mail or even
newspapers where I answer personal finance query section. Sometime I replied sometime I ignored sometime I made up my mind to
write but dropped idea after few minutes. People who are regular readers must be knowing why I am not able to answer this question
others can read my earlier article on Magic of Systematic Investment Plan (SIP).
http://www.tflguide.com/2011/07/best-mutual-fund-for-sip.html
2/5/2012
Page 2 of 129
But Anil Kumar Kapila came as much needed help he prepared a short note on how one can select best SIP or make better mutual fund
portfolio. I am publishing it as it is Just added performance Tables that may interest you.
While going through the comments of readers on the posts I have observed that most of the readers are asking the
same questions again and again. The most common question is regarding the best equity mutual funds available
SIP. Although you have answered this question many times, the investors seem to be confused. Hence I think it will
be a good idea if some broad guidelines are given. Accordingly, I have prepared some guidelines. You can go
through these and see if these can be shared.
Equity Large Cap Mutual Funds
1. DSPBR Top 100 Equity
2. ICICI Prudential Focused Bluechip Equity
3. Franklin India Bluechip
LargeCap Funds
DSP BlackRock Top 100 Equity
Franklin India Bluechip
ICICI Prudential Focused
Bluechip Equity
Category Average
1m
5.61
2.95
5.55
3m 6m 1yr 3yr 5yr 10yr

-1.94 0.08 6.40 16.11 18.78
-3.43 -0.82 6.69 18.64 16.78 27.06
-3.50 0.98 10.63 21.35
5.53 -4.11 -2.10 4.00 11.05 12.19 18.45
Equity Large and Midcap Mutual Funds

Fidelity India Growth

HDFC Top 200
2/5/2012
Page 3 of 129
ICICI Prudential Dynamic

LargeCap & MidCap Funds
Fidelity India Growth
1m 3m 6m
5.42 3.52 1.21
HDFC Top 200
4.37 - 0.15
3.40
ICICI Prudential Dynamic Ret 4.80 - 0.61
1.92
Category Average
4.88 2.95 1.63
1yr 3yr 5yr 10yr

4.88 19.13
6.48 21.55 20.25 31.77
7.22 18.15 18.67
2.42 12.17 12.25 21.25
Equity Mid and Small Cap Mutual Funds

1. HDFC Midcap Opportunities
2. Birla Sunlife Pure Value
3. IDFC Premier Equity
MidCap & SmallCap Funds
Birla Sun Life Pure Value
1m 3m 6m 1yr 3yr 5yr 10yr

4.37 - 2.72 -1.25 24.95
0.65
HDFC Mid Cap Opportunities 6.43 6.49 9.05 13.38 26.29
IDFC Premier Equity Plan A 7.19 1.55 4.85 7.98 23.32 29.33
Category Average
5.99 0.18 0.97 0.38 13.29 12.10 24.71
Equity Multi Cap Mutual Funds

1. HDFC Equity
2. Quantum Long Term Equity
3. Reliance Equity Opportunities
MultiCap Funds
HDFC Equity
1m 3m 6m
3.97 - 0.55
2.97
Quantum Long Term Equity 4.03 3.86 2.58
Reliance Equity Opportunities 6.75 1.54 4.28
Ret
Category Average
5.12 2.39 1.02
1yr 3yr 5yr 10yr

7.82 25.09 20.33 32.89
5.53 22.29 18.14
7.73 25.51 18.96
1.74 14.43 14.78 25.61
Equity Value Funds

Birla SL Dividend Yield Plus

ICICI Prudential Discovery
UTI Dividend Yield
Equity Sector Funds

Reliance Banking
2/5/2012

Page 4 of 129
ICICI Prudential FMCG

UTI Pharma and Healthcare.
Equity Others

UTI MNC Fund

Birla SL India Gen Next
Kotak Lifestyle Fund
Core & Satellite Approach of

Making Mutual Fund Portfolio
While selecting the funds from the above mentioned list Core and Satellite approach has to be adopted. The core of
the portfolio will consist of comparatively safe Large and Large and Midcap Funds. The satellite component will
have funds from the other above categories. Satellite will have comparatively risky funds. While core provides
stability to the portfolio satellite gives potential for high returns. Allocation between the two components depends
on the risk appetite of the investor. Conservative investor will have larger allocation in the core and aggressive
investor will tilt the balance towards satellite.
A portfolio should have a minimum of two funds and a maximum of five to seven funds. This is needed for the
purpose of diversification. Also while selecting the funds not more than one should be selected from the same group.
Diversification across fund houses is also needed. Keep only one fund from a particular fund house in the portfolio.
A typical portfolio will have one fund each from Large Cap, Largecap and Midcap, Multicap, Mid and Smallcap.
One or two funds from other groups can be included in the portfolio if required.
First of all thanks a lot to Anil who has taken out time & wrote this master piece for fellow readers. I have seen his
comments on various posts & 80-90% of our views match so there was no reason that I have not published this. I
think this article will be really helpful for the people who are having best mutual fund for sip question in their
mind + few tips on diversification will also help you to reduce some unsystematic risk. As couple of days back we
discussed selection of the fund is not the most important factor in your investment success. (Read Secret of
Achieving high returns) So even if you stick with points that are shared by Anil you still will be doing better than
most of the investors.
But still there is a lot of scope to reduce risk in once portfolio. Even in selection of fund risk should be given an
equal weightage to returns if not more. How my performance table would have looked if I was comparing these
funds.
Funds
Alpha Beta
Info
Downside Ratio Jensens
Max
r2 Sharpe Sortino Treynor
Standard
2/5/2012
Page 5 of 129
Birla Sun Life Pure Value 13.73

DSP BlackRock Top 100
5.47
Equity
Fidelity India Growth 6.18
Franklin India Bluechip 7.82
HDFC Equity
9.13
HDFC Mid Cap
13.08
Opportunities
HDFC Top 200
8.52
ICICI Prudential Dynamic 6.62
ICICI Prudential Focused
10.03
Bluechip
IDFC Premier Equity Plan
10.06
A
Quantum Long Term
8.50
Equity
Reliance Equity
9.11
Opportunities Ret
0.81
Risk
6.92
Rel.
1.12
Alpha Drawdown
12.71
-25.72
0.94 0.71
0.90
5.81
0.91
4.93
-27.78
1.00
0.97
1.06
7.69
6.81
9.09
1.68
1.42
1.78
6.16
7.67
9.45
0.86
9.14
1.70
1.06
0.92
7.75
6.76
0.97
Deviation
28.31
2.90
24.71
0.97 0.49
2.03
13.15
24.14
-34.30
-32.62
-38.23
0.98 0.52
0.96 0.57
0.97 0.64
1.84
2.21
2.23
14.25
15.45
19.09
27.07
26.38
31.70
12.30
-37.87
0.97 0.67
2.14
22.84
29.46
2.02
0.86
8.86
6.18
-34.71
-35.64
0.98 0.60
0.94 0.53
2.26
2.01
16.45
14.84
29.00
25.48
6.72
2.97
9.87
-29.97
0.98 0.67
2.61
18.04
26.04
0.87
8.87
1.32
9.35
-38.12
0.96 0.54
1.84
18.76
29.90
0.96
7.58
1.60
8.27
-36.11
0.97 0.64
2.40
19.05
28.60
1.08
8.78
1.74
9.53
-38.46
0.97 0.63
2.32
18.87
32.28
I have removed half of the columns to keep it bit simple. I have also not divided it in types of funds because I just
wanted to share what an advisor looks into before selecting a fund there are many other variables which are
considered before suggesting a fund. For this table I have chosen 3 years data as few of the funds in the list have not
completed 5 years.
If you like to learn about these technical aspects of mutual funds I will try to write. You can read about Standard
Deviation in Mutual Funds.
In case you have some questions regarding mutual Funds or SIP feel free to ask. Also share this with your funds
who are confused about choosing best mutual funds.
Disclaimer: This post represents the opinion of its author only, and does not necessarily reflect the opinions of the
authors employer, The Financial Literates or the other authors who write content for this Website.
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2/5/2012
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{ 472 comments read them below or add one }
1 ANIL KUMAR KAPILA July 22, 2011 at 1:08 PM

Hi Hemant
Thanks! You have considerably increased the utility of this post by adding tables and your views.Initially I
was also thinking of adding some tables but I found it too difficult to handle.Moreover , I was sure that you
will definitely add your valuable input.Hopefully, we will now have less questions from the readers on this
topic.
Reply
2 Hemant Beniwal July 23, 2011 at 8:52 AM

Hi Anil,
Whole credit goes to you. You prepared the dish I have just served it.
Reply
3 ANIL KUMAR KAPILA July 23, 2011 at 11:08 AM

Hi Hemant
Thanks! I am not a good cook.Hopefully, more dishes can be cooked and served to the readers so
that they can enjoy their meals.
Reply
2/5/2012
Page 7 of 129
4 Manoj July 22, 2011 at 2:11 PM

Thanks Anil and Hemant for putting with such a useful article. This should solve many peoples issue on how
to select a mutual fund for SIP.
Along with that, if investors want to get deep information on a particular fund.. for eg : percentage of
investment done in large cap, midcap, small cap by a particular fund or in which companies the fund invests
and who is the fund manager and to check the record of that particular fund over the years, we can find all
that information in the mutual fund India website.
Reply

Hi Manoj,
Yes you are right there are many such websites but the problem is thats all information you have to eat
it digest it & then separate the waste & knowledge.
Reply

Hi Hemant
Instead of taking nice home cooked food prepared from fresh vegetables many people prefer to have
packaged precooked or junk food.
Reply
7 Mayank Gupta July 22, 2011 at 8:07 PM

Dear Hemant,
These figures must open eyes of any people who waste their time in trading and loose money. If you stayed
invested for 10 yrs in mutual funds, the compounding effect would help you earn much more!!!!
Reply

Ya Mayank,
If someone turns these percentage in rupee term it looks ever bigger for example if 10 years back
someone would have invested Rs 1 Lakh in Large & Mid Cap Category (cagr 21.25%) current value Rs
6.87 Lakh. If he would have invested at the rate of 10% (in 2001 GOI 10 year bond yield was close to
10%) current value Rs 2.59 Lakh. This gap will be increasing with every passing year.
Reply
2/5/2012
Page 8 of 129
9 Shamshad.M.M July 23, 2011 at 10:54 AM

very useful article indeed , thanks Anil kumar and Hemant Bhai .I was searching in net for a long time to find
the good funds and this article will help me to prepare my portfolio . Iam little bit late to start my investments
as i have to finish my fathers housing loan and my sisters marriage.Now there is no more liabilities and Iam
planing to invest 1000 monthly in 7 funds for 15-20 years. Almost selected 9 funds,but its still hard to select
two from HDFC Equity,HDFC Top 200,HDFC Midcap opportunities and HDFC Prudence.Can anyone help
to select two from this ?
Thanks
Reply

Hi Shamshad
It is never too late. Better late then never.It is good to learn that after discharging your family
responsibilities you have now decided to invest in equity mutual funds to meet your long term goals.As
already mentioned in the post if you are a conservative investor you should have higher allocation in core
of your portfolio which will have large cap and large cap and midcap funds.If you are agressive investor
you can give more exposure to midcap and multicap funds.So basically the choice of the fund from
HDFC Mutual fund house will depend on your risk appetite.However do not select more than one fund
from HDFC Fund House.Nine funds are really not needed.Seven is the limit.
Reply
11 Shamshad.M.M July 23, 2011 at 12:14 PM

Hai Anil Bhai,
Thanks for your suggestions,Its always a nice feeling that there is lot of people to help in this
site,that too within no time.Iam 27 years old and by Gods grace there is no more financial
liabilities for me.So i wont mind being an aggressive investor. By the time i didnt mean that,Iam
going to invest in 9 funds Anil bhai i just mean i want to invest in 7 funds and for that i have
already selected five and wanna select 2 more from 4 HDFC funds.You people are very much
experienced and have a good knowledge in this field.So i will value your words and will make my
selections according to that.
Thanks.
Reply

Hi Shamshad
It is good to know that you do not have any more financial liabilities.Since you are quite young,
you can afford to be aggressive and plan for your long time goals.I really do not know why you
are particular about having seven funds in your portfolio.Even five or six would have been Ok.
2/5/2012
Page 9 of 129
If seven is your lucky number and you want to stick to it and you also want two funds from
HDFC fund house you can select HDFC Top 200 and HDFC Midcap opportunities.HDFC Top
200 will be part of your core and HDFC Mid Cap opportunities of satellite.
However it is important that you must keep track of your portfolio so that you can get out of
any non performing fund before it is too late.Good luck!
Reply
13 Shamshad.M.M July 23, 2011 at 5:19 PM

Thanks for your kind advises .Iam not particular about investing in seven funds,as i can
invest 7000 monthly,i just think to invest 1000 each in seven funds.thats all. But now
listening to all your advises , iam thinking to reduce it to 5 or 6.HDFC funds are not my
favorite but these funds are among the top three of their own categories.
I will keep track track of my port folio and hope you people will be here to help us.
Thanks and regards,
Shamshad.M.M
Reply

Hi Shamshad
I would like to clarify that it is not at all necessary for you to invest equally in all the
funds.In fact, some mutual fund houses have fixed the minimum amount which you
must invest.For example minimum investment in IDFC Premier equity is Rs 2000/per month.Moreover to have proper balance between core and satellite you will have
to probably put more money in two large and large and midcap funds of your
portfolio.
Reply
15 Manoj July 23, 2011 at 11:09 AM

Hello Shamshad,
Ideally in a portfolio we should not have more than 4-5 funds. 7 funds I think is one too many.. Although the
HDFC funds you mentioned are all very good and exceptional performers over the years, it is still a huge risk
to invest in 4 HFDC funds in a portfolio.
As mentioned by Anil n Hemant, we need to divide our portfolio in large cap, multi cap and mid n small caps.
So if you want to select funds accordingly then here are few examples :
Large Caps Funds :
1) HDFC Top 200 (86 % exposure in large cap companies)
2) Fidelity Equity fund (75 % exposure in large cap companies)
3) ICICI Prudential Focused Bluechip Equity
2/5/2012
Page 10 of 129
Multi Cap funds :

1) HDFC Equity fund
2) Reliance Equity Opportunities fund
Mid n small Cap funds :
1) IDFC Premier Equity
2) DSP-BR small n mid cap fund
3) HDFC midcap Opportunities fund
Please remember that, we should also have proper company diversification.
Reply

hi Manoj,
Thanks for your suggestions.Iam not going to invest in 4 funds from the same funds house,but just little bit
confused to select 2 from these funds.Anyways i will diversify my portfolio.
Reply
17 pattu July 23, 2011 at 11:50 AM

I think people spend way too much time into worrying about the best mutual fund.
Investing has to be done with a goal. A goal implies an estimate of corpus needed is known and a rough and
reasonable estimate of rate of interest needed is also assumed. For any such practical calculation easily the top
15-20 equity MFs will quality. Then we select based on downside protection, past performance and level of
fluctuation. Even then it can be narrowed down to only 10.
The way I see it, investing in any of the top 10 (even 15) funds with constant monitoring should be okay for
most long term goals. Of course as you pointed out large caps should form the core with some mid-cap funds
depending on risk appetite.
My points is too much time is wasted by many in wanting to know the best MF leading to inaction and
investment paralysis.
I recently read that the bottom most MF (from Taurus) outperformed bank fds in the long term.
So get started and learn on the fly instead of waiting for someone to advice you on the best fund or the method
to choose it.
Reply

Hi Pattu
I agree! It has been proved that SIP for a long time even in an average equity mutual fund has the
potential of giving decent returns.
2/5/2012
Page 11 of 129
Reply
19 Hemant Beniwal July 24, 2011 at 9:43 PM

Hi Pattu,
Agree with most of your thoughts but do you know even after publishing this article I got many queries
starting with can you suggest me few funds. Anils thought behind writing this was that it will reduce
such type of queries but I think this will not work.
Reply

Hi Hemant
Yes , you are right, I thought I had made the concept of diversification and core and satellite
approach very clear in the post but we are still getting the same type of queries and the investors are
making same type of mistakes while selecting funds for their portfolios.Although you have also
made these concepts very clear in your various posts, I am thinking of writing again on the common
mistakes which the investors make while selecting equity mutual funds for SIPs.
Reply
21 Shinu July 23, 2011 at 4:37 PM

Hi Hemant / Anil
Good article specially to see my 6 sips and in your reccomended list
My only comment is on the number of funds you to hold. Few years back when i first started my investment in
funds i went with 12. soon i found the it was too much then rebalance it to 10. A year later again i felt that was
too much and reduced to 8. This year i again felt it was too much and then reduced it to 6 and started again to
add on SIP which was stopped in between. Frankly now i have already started to feel that 6 is too much and
may be i need to reduce the same to 5 or even 4. Its only a matter of confidance in your goals and funds that
you need, to bring down the number of funds you hold which will defenitely improves your returns rather
than over diversification.
Thanks
Shinu
Reply

Hi Shinu
The number of funds you hold in your portfolio is basically decided to have proper diversification. There
should be neither under diversification nor over diversification.Decide about the funds before starting
SIPs so that you do not have to stop the SIPs later on.
2/5/2012
Page 12 of 129
Reply
23 pattu July 23, 2011 at 5:05 PM

The total no of MFs held is not the figure to worry about. It should be no of MFs per goal. Since each goal will
have its own equity component.
3 to 4 MFs per goal is all the diversification I need.
Reply

Hi Pattu
It is not necessary to have different equity mutual funds for different goals.You can always keep different
allocations in the same funds for achieving different goals.In any case you have to gradually move away
from equity to debt as you approach your goals.
Reply
25 pattu July 23, 2011 at 7:03 PM

yes of course. But I would prefer it to be different. If one fund take a tumble it will affect all goals.
Of course a surge will positively affect all goals but I dont care. I can live with it.
Reply

Hi Pattu
The key is to keep tracking your funds so that you can take corrective action before it is too
late.One should not stay invested in a nonperforming fund for so long that it can adversely
affect your long term goals.
Reply

Hi Pattu,
Do you know after 7-8 equity funds you lose the benefit of diversification it start dragging overall
performance.
Reply
28 pattu July 24, 2011 at 10:44 PM
2/5/2012
Page 13 of 129
Yes I know that. But the diversification I seek is for different goals and not for the same one.
Say one has 3 goals with obviously 3 different corpuses and deadlines. The idea of using the same 4
funds for all them does not appeal to me. Its a bit like putting all eggs in only a few baskets. Besides
the role/importance of the fund manager is a little scary. What if one of them behaves like the Oslo
gunman!? They are human after all and not beyond resignation, non-performance and death!
I would prefer 3 separate core and satellite MFs for each of my goals. Of course its more work
managing but I dont mind. Compartmentalizing my goals to me promotes discipline in corpus
building.
I only estimate 9/10% returns from my equity MFs so if a 15% fund falls to 12% I still wont break a
sweat. For the same reason I am not too worried about loss in performance because of this overdiversification.
Reply

Hi Pattu
Here I would like to tell you something about Behavioural Finance.Although Hemant has
covered this topic in one of his posts I would like to reiterate some of its important points for
your benefit.It attempts to explain the irrational behaviour of persons with respect to their
financial decisions.In the world of investing, rigidity or inherent stubbornness, can lead to
losses and below optimum returns.When an investors mind is fixated on something, logical
reasoning takes a back seat and he takes decisions based on incomplete information.Then there
is mental accounting which again leads to a loss.People have a tendency to filter information
and pay attention to only that part which confirms their personal opinion and try to influence
others with their ideas.
Reply
30 pattu July 25, 2011 at 5:31 PM

Not sure whether to be amused or to take offense. Will go with the former emotion since I
fail to see the relevance of your comment. Perhaps it all part of irrational behavioral
finance!
I have made several mistakes in all aspects of my life and I am sure many more are
waiting in the wings. I am more than happy to correct myself. But to so I will require
concrete reasons and not psychology.
The general observations provided for my benefit is true for the laymen and the finance
professional alike.
Personal finance is way too personal and hence diverse to be narrowed down to a set of
rules taught over a few months to create financial planners.
I value real experience (like that of Shinu below if he provides more details) over a degree
or a certificate.
2/5/2012
Page 14 of 129
Reply

Hi Pattu
It appears to me that you have not carefully gone through all the posts of
Hemant.For your benefit I would like to reproduce what he has said in a recent post.
Monthly Contest Comment & Win
JULY 18, 2011
I believe that learning can happen through interaction & if we talk about TFL this
could be done in the comments. This is why every comment on this blog receives a
reply from me. (may be sometime bit late) But unfortunately, I have observed that
most of the times People dont look for advice they only search for someone to
agree with them If your views are same as above quote then you are at wrong place.
Reply
32 pattu July 25, 2011 at 8:19 PM

On the contrary, I am trying very hard to look past insinuations and am
searching for someone to disagree with me with experience and numbers. Will
happily stand corrected then.
ps. Hemant: No personal offense is intended to you by my earlier remarks
Reply

Hi Pattu
I think it is getting too much personal.I dont want to enter into any
argument and prolong this further.I think I have already said whatever I
had to say.I dont want to add anything more.
Reply

Hi Pattu/Anil,
You wont believe when Pattu added his first comment on this post I
told my colleague there will be hot discussion bw Anil & Pattu. Why I
felt that bcoz I think I know both of you a little bit & also know
something about human behavior.
So stop arguing & start doing some constructive discussion which will be
helpful for others.
Reply
2/5/2012
Page 15 of 129

Hi Hemant
Yes, I agree with you.There is no point in continuing this useless
argument.
Reply

well said Hemant bhaisome people wont changethey have
their on rules and believes..
Reply

Hi Shamshad
I agree.
38 Shinu July 25, 2011 at 1:01 PM

Dear Pattu
Say one has 3 goals with obviously 3 different corpuses and deadlines. The idea of using the
same 4 funds for all them does not appeal to me.
The above is a totally wrong approch i believe. You can have 10 goals and have 10 time line.
You should determine the rate at which your portfolio to grow to ensure your goals are
achieved with the investment you are committing. Now this portfolio can be of just 4 mutual
fund (IF YOU ARE CONFIDENT YOU SELECTED THE RIGHT FUNDS FOR YOUR
PORTFOLIO AND CAN GIVE YOU THE RETURN YOU ARE LOOKING FOR) and just
have to withdraw the right amount in the right time to ensure your goals are met. I am
personally a victim of overdiversification and not meeting the right return. i hope i will be
better of in future with my rebancing of my portfolio.
Reply
39 pattu July 25, 2011 at 4:20 PM

Dear Shinu,
Thank you for your concerned comment. Can you provide me an example of how over
diversification affected returns in your case if possible? Unless I see numbers and the
context and if the example is of relevance to my situation, I dont see any thing alarmingly
wrong with different cores and satellite funds.
2/5/2012
Page 16 of 129
The right fund today need not be right fund tomorrow. As of now I am certain that each
of the funds I have chosen for each of my goals are right.
I am not arguing I am correct. I am happy to correct myself, but I would like to see
examples with numbers to access the relevance to my case.
Knee-jerk reactions also constitute bad behavioral finance!
Reply
40 KUMAR, BANGALORE July 26, 2011 at 8:53 AM

Dear anil & hemant
I agree with pattu in many points he has raised.
If one is comfortable, he can have 12 to 15 funds in his portfolio and comfortably
manage it with the help/feed back from learned finacial experts like you
Today, like your site , there are other site sharing infomation and also tools for
monitoring( as suugessted by you- money sights/money control etc.) which help a lot
So why not take the help of all these and has really diversified portfolio which gives
advantage in case of failure/poor performance of one or two funds selected.
i think a healthy discussionin this topic is good for increasing knowledge of all of us
Reply

Hi Kumar
If you see other posts of Hemant you will find that he has already said a lot in
his comments on this topic.So I have nothing more to add.
Reply
42 Shinu July 26, 2011 at 11:42 AM

Dear Pattu
I dont know why you felt mine was a knee-jerk reaction? Maybe got carried away by
some other discussions Anyway no worries. I am still a student in personal finance
and is just trying to get it better off now rather than cry over the lost time. So bear
with me for any mistakes.
I never said we need no rebalancing of the SIP portfolio. Defenitely i will monitor
and anytime i find my target return is not achieved and the same time it is not in the
first 10 in the best performing it the catogory I WILL ACT. Please find below a
workout for your reference and appreciate comments and corrections.
Rate of Inflation 6%
GOALS Target date Years left Estimate @ today Value @ Retirement with 6%
inflation
1 Retirement Corpus 31/12/2018 7 6,000,000 9,255,189
2/5/2012
Page 17 of 129
2 Housing plot 31/12/2018 7 10,000,000 15,425,315

3 House 31/12/2019 8 5,000,000 7,712,657
4 Daughter Grad 24/01/2025 14 2,500,000 3,856,329
5 Daughter Post Grad. 24/01/2029 18 5,000,000 7,712,657
6 Daughter Marriage 24/01/2034 23 5,000,000 7,712,657
7 Son Grad 08/06/2026 15 2,500,000 3,856,329
8 Son Post Grad 08/06/2030 19 5,000,000 7,712,657
9 Son Marriage 08/06/2035 24 5,000,000 7,712,657
Total Money required 46,000,000 70,956,449
Total Portfolio Growth rate # OF SIP Value @ today Value @ Retirement with 6%
inflation
1 Current Investments 10% 10,000,000 20,318,588
2 SIP Investments from now req. 15% 89 307,834 50,637,860
70,956,449
SIP Portfolio 3 Year return 5 Year return % In portfolio SIP per month
1 Fidelity Equity 18% 20% 30% 92,350
2 HDFC Top 200 20% 21% 30% 92,350
3 ICICI Pru discovery 27% 19% 20% 61,567
4 Franklin India Blue chip 18% 17% 20% 61,567
Average return 21% 19% 307,834
Reply
43 pattu July 26, 2011 at 11:56 AM

Dear Shinu,
First thank you for understanding what I wanted to see and for providing a
detailed breakup. Please give me a day or two to respond as I am tied up with
other things.
You have misunderstood my comment on knee-jerk reaction. What I meant
was, I should not suddenly change my portfolio just because someone says I am
wrong without proper analysis, which would be a knee-jerk reaction. Was
referring to me, not to you.
Thanks again.
Thanks also Kumar from Bangalore.
Reply
44 Manoj October 13, 2011 at 1:46 PM

Hi Hemant/Anil/Pattu,
I think all 3 of u have valid points with different perspective. We can have
4 funds for our all goals n take out the necessary amount from that fund
at the time of reaching the goal as Anil n Hemant mentioned which is a
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good approach..The reason why I dont disagree with Pattu is bcoz he too
has a very good point..If we look at the market history, there are at least
15 very good mutual funds which have done well without too much
difference in return.So if we can select 3-4 funds for each goal out of those
15 then its also gonna be a good approach..Only think is that one needs to
do regular monitoring of the funds. Ideally I dont think a person has more
than 3-4 goals on an average..
Reply
45 Amit July 23, 2011 at 8:34 PM

Thanks a lot Hemant & Anil for making it easier for new investors who want to get into investing. Equity
Funds are always the Best option for Long Term Scenarios. It would be really helpful if you can do similar
kind of post regarding Debt / Balanced Funds or FMPs for Short Term Scenarios i.e. 1 to 2 years. Many of us
need these too in our portfolios. Lastly all the discussion now-a-days is centred towards SIP. Yes its magic. But
say one has a SURPLUS Fund of Rs. 2 lacs. What should he do with this money? Should he invest in lump-sum
in Mutual Funds or park it in some Liquid Funds or leave it in Bank SB A/c to rot at 4%? How do one take
the route of STP? Which are the Funds available? This is very important for new investors in Equity market,
who have all been investing in FDs all these years & now these instruments have matured. I think covering
these aspects too will almost give the topic an overall complete view. And please include the name of the Funds
as done in this post, its really helpful. Thanks & keep educating.
Reply

Hi Amit
Investing lump sum in equity mutual funds is not advisable.If you want to take STP route you can park
your funds in liquid fund and from there invest in equity mutual fund by giving instructions regarding
frequency of transfer.Another method is to park your funds in a flxi fixed deposit which is linked to your
savings account.Whenever any amount is withdrawn from the fixed deposit only that much portion of the
fixed deposit is broken and the remaining amount continues to earn interest.The advantage of this
method is that the money is transferred to equity funds through the SIP route of different fund houses.In
the STP route you can not transfer money to mutual fund schemes of other fund houses.Flexi fixed
deposit is a good option as the interest rates are quite high now.
Reply

Hi Amit,
SIP is a great way to invest but it is not the only way to invest. My suggestion is you can invest part
amount as lumpsum & rest through STP.
Reply
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Hi Hemant
Thanks!
Reply
49 Jagbir July 24, 2011 at 10:57 AM

Very informative article. Bookmarked it and would visit time to time.
wheres ELSS? arent there any good enough to be included here? ya theres DTC coming to kick them out
from favorite list but still theres time left people can utilize this excellent instrument to save tax and build
wealth.
- Jagbir
Reply

Hi Jagbir
This post is for pure equity funds for long term investment.No doubt there are many good ELSS and Hybrid
funds which are basically used for short or medium term investment and hence not included in this post.
Reply

DEAR HEMANT/ANIL
THIS POST IS VERY GOOD , BUT I REQUEST YOU TO CLARIFY THE FOLLOWING
1. What should be allocation among the following in Mutual fund portfolio ?
Sl no Fund category Allocation within mutual fund portfolio
1 Large cap
2 Large and mid cap
3 Multi cap
4 Mid and small cap
5 Balanced funds
Reply

Hi Kumar
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There is no hard and fast rule as for as allocation among different categories of mutual funds is
concerned.This mainly depends on the type of investor whether you are conservative or aggressive.Since
you have also included balanced funds in portfolio I assume that you are a conservative
investor.Balanced funds are normally used by conservative investors for meeting their medium term
goals.For long term goals only equity funds are preferable.You can invest around 70% of your funds in
Large Cap and Large Cap and Midcap funds which can form core of your portfolio and remaining in
other funds which will form satellite.
Reply
53 kumar July 25, 2011 at 12:42 PM

Anil, Thanks for answering . I am a aggressive investor in Mutual funds. My prtfolio consists of 50 % in
Lasrge and large & Mid cap funds, 15% in Multi caps & 15 % in Mid & small cap funds. I have recently
added 10% in sector fund(Pharma fund ) and 10 % in balanced fund ( seeing recent performance of balanced
funds over Diversified).
About 1 to years back, I have came across a scheme called SIP-Insure or insurance with Mutual fund with
following funds
Sl no Fund Name Amount of monthly SIP A pprox insurance cover
1 Reliance RSF equity- growth Rs 1500.00 Rs1 to 1.5 lacs
2 Reliance RSF equity- growth Rs 2000.00 Rs 1.5 to 2 lacs
3 Reliance growth- growth Rs 1500.00 Rs1 to 1.5 lacs
4 Birla sunlife dividend yield plus Rs 1500.00 Rs 1.5 lacs
5 Birla sunlife mid cap Rs 1500.00 Rs 1.5 lacs
6.Birla sunlife Frontline equity Rs 1500.00 Rs 1.5 lacs
Apart from BSL dividend plus , other funds are miserably lagging behind. Usually, I try to balance my mutual
fund portfolio once in a six months after a through review of mutual fund portfolio. But I am unable to change
these funds as there is clause in SIP insure that any change/switch in the SIP or Accumulated units will lead
ceasure/closure of insurance cover( which is group insurance as per Birla sunlife letter).
As you are always telling about beherioval science, our mind doesnot allow logical thinking
Pl enlighten me about is there any merit in continuing these sips in spite of their recent poor performance or it
will be better to close and switch to good funds & lose insurance cover WHICH IS SLATED TO BE FOR
ANOTHER 10 YEARS.
Reply

Hi Kumar
First let me tell you the purpose of investing in equity mutual funds and insurance.Investment in mutual
funds is done to meet some long term goals.Insurance is not an investment it is an expense which we have
to incur to cover some risk.Since the purpose of two is different we should never mix them.Once we buy a
mixed product we completely lose our focus.I really do not understand why you bought this product.Did
you have a goal in mind?
Secondly, you must understand that investment in equity mutual funds is a long term investment.In the
short term we may have ups and downs in the performance of funds.We have to learn to ignore these.You
should not do unnecessary tinkering every six months.
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Thirdly, you must never stop SIPs.

Fourthly, There is no proper diversification.You have five funds of two fund houses.
Fifthly, funds should never be selected based on only the recent performance. You have not mentioned
which balanced and sector funds you have added.
Reply
55 kumar July 25, 2011 at 4:57 PM

Yes agreed. what i have given here is the list of funds where SIP INSURE is taken. apart from
HDFC PRUDENCE & DSP BALANCED FUNDS, I HAVE OTHER top rated funds (including
given in your web site) as mentioned above.
Now you tell me whether i have to stop/switch those SIPs for better funds by discontnuing SIP
INSURE only
Reply

Hi Kumar
It is clear that you have not given complete information regarding all the funds in your
portfolio.From whatever information you have given I can make out that you have too many
funds in your portfolio.Please give the details of all the funds you hold.I would also like to
know the goals for which you are investing and for how long you have been investing.No
sensible advice can be given in the absence of complete facts.
Reply

I am worried about these sip insure funds, once i decide about these, i will make a
detailed finacial plan and inform you all the list of funds . i hold about 8-10 funds, 3 each
in Large, Large & mid cap, 2 each in Multi cap,Small & mid cap
Reply

Hi Kumar
Frankly I have no idea of how insurance can work with mutual funds.Perhaps
Hemant can throw some light on it in one of his future posts.
Reply
59 Sidharth July 25, 2011 at 10:44 PM
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Hi anil,pattu &hemant,
very nice article.
But it loosing its charm due to some irrelevent arguments.
Reply

Hi Sidharth
I agree that comments on this article which was meant to help the readers have generated more heat than
light.However it has been a blessing in disguise for me as I have got a very good feedback which will
motivate me to write something on the common mistakes which the investors make while investing
through SIPs.
Reply
61 Manoj July 26, 2011 at 11:01 AM

Hello Anil,
I really like this article a lot..Its very nice and provides lot of useful information. And now I feel satisfied by
my fund selection as the funds that I have selected have good exposure in large caps and mid caps..
1) HDFC Top 200
2) Fidelity Equity fund
3) Reliance Equity Opportunities fund
4) DSP-BR Small n Mid cap fund
Hemant has helped me a lot in selecting these funds.
My only concern is that I have HDFC tax saver fund which I will continue only till March 2012 as its almost
confirm that ELSS funds will not be considered as tax saving funds as per the new DTC. So perhaps I will
have to distribute this amount in the above 4 funds. Want to know your views on this Hemant n Anil.
Reply

Hi Manoj
You have good funds in your portfolio.Do not be concerned about HDFC Tax saver fund.We still have
time.Let DTC come.We will cross the bridge when we come near it.
Reply
63 tony gomes July 26, 2011 at 1:12 PM

Dear Hemantji,
I had started investing since last 4 years, all in SIP of SBIMF, all equity diversified,
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about six month back I got introduced to Fixed maturity instrument but I dont like it, still I like equity, which
has given back good return, my question why do anyone needs debt fund when they can put money in fixed
deposit which is about 9.25% at present, and the next question is is it necessary to invest in different AMC.
Reply

Hi Tony
Investments in debt funds are done to meet your short term goals whereas investments in equity funds
are done to meet your long term goals.Here short term means around three years and long term means
more than five years.Yes it is preferable to invest in funds of different fund houses to reduce risk.
Reply
65 Amit July 29, 2011 at 10:59 PM

FMP / Debt Fund have quite a few advantages over traditional FDs. They are much more Tax efficient in
case of people who are in Higher Tax Bracket. First lets talk about Short term i.e. less than 1 year you
pay STCG @ your Income Tax Slab. Also if you have chosen Dividend option (I personally dont like
this), Dividend is subject to DDT. So avoid it. Go for Growth option. In case of long term i.e. more than 1
year one gets the benefit of indexation (2 years even if it is 366 days) in computing LTCG Tax.
So if you are in lower tax bracket, FDs are fine, but if you are in higher tax bracket, FMPs & Debt Funds
surely make a lot of sense.
Reply

Hi Amit
You seem to be doing fine.
Reply
67 Hema July 26, 2011 at 2:04 PM

I have heard so much about balancing and rebalancing your MF portfolio at a certain pre-fixed dates. What
about hybrid funds? If we select a good hybrid fund like HDFC prudence, will not not do the job for me? If I
select 2-3 funds like that, is it not enough? Iam really new to MF and investing. These are just some doubts
running through my mind. Can someone clarify how this works differently from whats suggested?
Reply

Hi Hema
Investment in equity mutual funds is done basically to meet your long term goals.Your portfolio has to be
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constructed based on the corpus required by you to meet your goals.If you have to remain invested for
more than five years then it is preferable to go for only pure diversified equity funds.However if you are a
new investor who can not take much risk and want to remain invested for a medium term only, you can
consider investing only in two or three balanced mutual funds.
Reply
69 V G Bhat July 26, 2011 at 2:09 PM

Hi Hemant,
I would like to know about the terms used in the table such as alpha, beta, sharpe etc. and their significance in
choosing a fund.
Reply
70 Amit July 29, 2011 at 11:02 PM

I second that. But please Keep it simple, silly!!!
Reply

Thank you Anil ji,
You made me decide to switch AMC now and now I m going to for HDFC Equity and Growth fund, 10000
every month, would you advice me if I need to go for a balance fund instead of two equity?
Thanks again for your advice
Reply

Hi Tony
Please read my comment above to Hema.You have to follow core and satellite approach as mentioned
above in the post for constructing your portfolio.Please do not invest the entire amount in two funds of
the same fund house.You can divide the amount between two fund houses.
Reply
73 vijay July 26, 2011 at 4:48 PM

Hi Hemant,
My investments in Mutual Funds was mainly into ELSS. I use to invest 70 k per year in 4 mutual funds.
1. HDFC tax save
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2. HDFC LTA
3. Pru ICICI tax gain
4. SBI Magnum Tax gain.
70% of the monthly SIP was between SBI Magnum and HDFC Tax saver.
I use to read about the fund Managers, the companies they are holding etc etc. I liked Sandeep Shabarwal. My
biggest mistake was Following the fund Manger rather than process.
When Sandeep Shabarwal moved to JM, i brought JM mutul fund Tax gain. This was more of bet on fund
manager inspite of knowing that JM is not good fund management company. This back fired badly. i invested
around 30 k at NAV around 8rs.
Lesson i learnt : Respect the process not the individual. HDFC and SBI do have robust process are not not
dependent on individual.
Note : Last year i just put money in PPF. for timebieng i have discontinued the SIP in ELSS as i am not sure
how DTC will have impact on ELSS.
Reply

Hi Vijay
We all make mistakes.It requires courage to admit our mistakes.It is good to know that you have learnt
from your mistakes.I am sure you will be able to take corrective action now.
Reply
75 Sunnydoc July 26, 2011 at 6:40 PM

Dear Hemant/Anil,
Thanks for the comprehensive article.. Well done.. I would like it If you could write an article on explanation
of the various terms and how to apply that knowledge in selecting a fund once we have shortlisted them down
to 3 in each category.. Sometimes I feel that past performance may not be indicative enough.. Are the star
ratings also based on such analyses?
One more thing, how often must one review the funds they have in their portfolio? And what factors must
exactly be taken into account? I mean, if a fund has dropped from 1st place to 3rd or 4th place (about 2%
drop in return compared to its peers), should we just drop it, or should we be patient and wait?
I have recently started investing in MFs by SIP, and believe me, I spent a lot of time reading all articles, going
through websites, asking advice, etc before shortlisting them.. But somehow I still dont feel confident with my
decision.. Since I have opted for a 12 month SIP period I dont think I will be modifying anything until next
May.. These are my MFs and I am a young aggressive investor with medium to long term goals.. I have kept a
Balanced fund for any short term needs like vacation, pleasure spending, etc..
1. HDFC Top 200 3500
2. Quantum Long Term Equity 3000
3. DSP Blackrock Small and Midcap 2000
4. IDFC Small and Midcap 2000
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5. HDFC Prudence 2000

Dont mind, but could you tell me if this is decent enough? I would really appreciate it if you could give your
valuable suggestions..
Sunnydoc
Reply

Hi Sunnydoc
For short term goals you should invest in debt,for medium term in balanced funds and for long term in
equity mutual funds.Here short term stands for up to three years,medium term from three to five years
and long term for more than five years.I notice that you have opted for SIP period of only three months
which is very small for investing in equity mutual funds. You must give your funds at least one year
before you start evaluating their performance.You have selected a good aggressive portfolio.Dont stop
your SIPs after one year and remain invested as long as possible.
Reply
77 Sunnydoc July 26, 2011 at 9:36 PM

Thanks for the feedback Anil.. I have invested in these SIPs since May and intend to continue them
for as long as possible, with yearly re-evaluations and rebalancing if necessary.. HDFC Prudence I
have kept for my medium term goals..
In addition to this I have parked about 3 lakhs in my savings bank account with sweep in sweep out
FD options for emergency funds and short term goals.. In addition to this I deposit money for PPF
to take care of the debt part of my portfolio even though it is a long term block..My next plan is to
purchase a good pure term plan and a health insurance with adequate cover..
I could plan things like this only due to such excellent blogs.. Please continue the good work.. I
would like to know how to analyze the performance of mutual funds apart from the tables that show
returns.. Perhaps a simplified explanation of the terms would make for a nice article..
Sunnydoc
Reply

Hi Sunnydoc
You seem to be doing fine.
Thanks, for your suggestion.Hopefully, there will be a post on this subject soon.
Reply
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79 Manpreet Gambhir July 26, 2011 at 7:05 PM

Hi Hemant,
Your article indicates various financial ratios. I was wondering how is Downside Risk calculated and more
importantly how does one corelate so many ratios to determine good fund.
Another questions, what is the duration over which the ratios for various funds have been calculated is it
funds life time or is it last few years. If later then how many years.
Thanks
Reply

Thank Again Anil ji
Reply

You are welcome, Tony.
Reply
82 vipul shah July 27, 2011 at 11:21 AM

Hi ,
hemant Its a really a good articles .I really like this article a lot..Its very nice and provides useful information.
you provide sector wise best allocation in to large,mid,multi cap investment depend upon the client need and
his rick appraises .Now a days i concentration on client portfolio revaluation and assr allocation on periodic
time.
Thanks
Reply
83 Amit July 27, 2011 at 2:50 PM

Hello I need advice for one of my friends. I think he has got far too many funds. Please advice which ones to
scrap, which ones to hold, which ones to continue (for SIP) & new additions to be made. I would have tried it
myself, but it looks too clumsy to me. So over to you eXperts.
Friend
Birla SL Frontline Equity -A (G) SIP 8000/HDFC Tax Saver (G) ONE TIME
Reliance Growth Fund RP (G) SIP 1000/-
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Reliance MIP (MD) ONE TIME

Reliance Natural Resources (G) SIP 2000/SBI Magnum Tax Gain (G) ONE TIME
Sundaram Energy Oppor. (G) ONE TIME
UTI Infra-Advantage Sr I (G) ONE TIME
Wife
HDFC Top 200 Fund (G) SIP 4000/ICICI Pru Dynamic Plan (G) ONE TIME
Sundaram Select Focus RP (G) SIP 4000/Reply

Hi Amit
SIP is the best route to invest in equity mutual funds.Lump sum investment is not the correct approach.It
is not clear whether lock in period in tax savers is over or not.There is investment in three Reliance funds
which is again not correct.He can exit from two Reliance funds.The portfolio must be constructed based
on the core and satellite approach mentioned in the post.The present portfolio does not appear to have
any focus.
Reply
85 Amit July 27, 2011 at 8:43 PM

Yes I told him same. No, the ELSS Funds have not completed 3 years. So he cant do anything about
those. For this year I think I should advice him for HDFC Tax Saver. Please advice which Funds
should be scrapped. Would it be prudent to hold BSL FL Equity & Reliance Growth?
Reply

Hi Amit
He can hold BSL FL Equity but should exit from both the SIPs of Reliance and consider one
multicap fund and one midcap and small cap fund from the categories given in this post.
Reply
87 Amit July 29, 2011 at 11:11 PM

Thanks for all the guidance.
Reply
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Hi Amit
You are welcome.
Reply
89 PITAMBOR December 17, 2011 at 8:17 AM

sir,
kindly guide me already i have invested in following mfs
1. hdfc top 200 rs1000/2. reliance growth plan rs1000/3. sbi magnum contra rs1000/4. uti master value fund rs1000/now again i want to invest another rs 1000/- which fund i will select?
Reply
90 subhajit July 27, 2011 at 4:54 PM

hi,
this article is very useful for me. but i am confused and have a small question. i have SIPs of 9 funds
(Rs.22000) in my portfolio.
HDFC Top 200 9000
HDFC Midcap Opportunities-2000
BSL Frontline equity 4000
BSL Dividend yield 2000
DSP-BR Top 100 1000
DSP-BR Equity 1000
RELIANCE Growth-Growth 1000
RELIANCE Regular Saving 1000
RELIANCE Diversified Power 1000
i want to drop 2-3 funds from this list (rel div power, rel growth, dspbr equity) and add the money to top 100.
but im not sure it will be a good idea. i am investing for last 2 yrs. (with a minimum 10% pa bump up.) i have
12-13 yrs. to fulfill my goals. if you kindly suggest me something it will be very helpful. thank you..
Reply

Hi Subhajit
Except for one or two funds other funds in your portfolio are quite good.Your decision is correct.You can
get out of the funds mentioned in brackets and increase your SIP in DSPBR Top 100 to Rs 4000.
Reply
92 subhajit August 4, 2011 at 4:03 PM
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thank you sir..

Reply
93 ANIL KUMAR KAPILA August 4, 2011 at 6:35 PM

You are welcome Subhajit.
Reply

Hai,
How does the new Entry Fess for Mutual Funds effect SIP ? is this entry fees applicable for SIP less than
10000 ?
Reply
95 Amit July 29, 2011 at 11:17 PM

No clear guidelines by SEBI yet. Its a rubbish move, just creating confusion in the minds of the investors,
and will lead only to delayed financial decisions.
Reply

Hi Shamshad
What I have learnt from papers is that 10000 is the annual investment amount.So even if you start a new
SIP of Rs 1000 per month the amount is going to be recovered from your initial two or three
installments.The way to avoid this is to do direct investments against your existing folios and clearly
mention in your transaction slip that this is a direct investment.
Reply

Hi Shamshad/Anil,
This will come as an option not compulsion right now it looks like this.
Reply
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Hi Hemant
Thanks! If it comes as an option then it will be good for the investors.
Reply

Hai Hemant,
Thanks for that information
Reply
100 Amit July 30, 2011 at 1:10 PM

No clear guidelines by SEBI yet. Its a rubbish move, just creating confusion in the minds of the investors,
and will lead only to delayed financial decisions. You can look at the following blog entry by Mr. Subra
on his blog. I love his sarcasm.
Reply
101 Amit July 29, 2011 at 9:26 PM

I have a few basic questions. Kindly resolve
1. What is the maximum tenure one can get a SIP registered for? Or nothing of this sort exist.
2. If I have registered a period of say 5 years at the time of initial application, but now want to extend the
period, whats the procedure? Are any charges applicable for the same?
3. I have, say a Rs. 1000/- SIP in a Mutual Fund Scheme. What I need to do to increase it to say Rs. 2000/after say, 6 months? Will I have to start a new SIP in the same fund i.e. I will have 21000/- SIPs or 12000/SIP?
4. Does there exist any option with Fund Houses to increase / decrease SIP Amount in a few particular months
when Market is relatively down / up.
Reply

Hi Amit
There is no maximum tenure for SIP.You can select the time as per your requirement.
If you want to extend the period of the SIP the best thing to do would be to start another SIP.This way
you can select another date also for your SIP.No charges are applicable.Moreover you have the option of
increasing or decreasing the amount.
Timing the market is not advisable.
Reply
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103 Manoj July 30, 2011 at 11:05 AM

Hello Friends,
Its about time now that we need to thank Hemant again because I just saw the news today that Speak Asia has
been caught as one of the biggest scams ever. Some of the people have been arrested and some officers have
ran to dubai. Over 12 lacks people have invested in Speak Asia. Hemant has already written an article on this
few months back on how speak Asia operates and he warned against investing in such schemes.
So Hats Off to you Hemant once again.
Reply
104 Biju July 31, 2011 at 12:24 PM

Hi Mr. Anil,
I have just started (this month) four SIPs of Rs.1000/- each /month for a period of 10 years in HDFC Top 200,
HDFC Equity,HDFC Mid Cap Opp and HDFC Prudence ( Prudence:- will review and exit on or before 3
years).
Please suggest 3 more aggressive equity funds in which i can stay invested for a period of 6 to 10years
OR should i just add 1000 rupees each in HDFC Top 200 and HDFC Equity and HDFC Mid Cap Opp?
Your valuable advice will be highly appreciated. Thank you.
Regards,
Biju
Reply

Hi Biju
All the funds which you have selected for your portfolio are very good.Also HDFC Mutual Fund is one of
the best fund houses with a lot of highly performing schemes.But your approach to construction of the
portfolio is not correct as there is no diversification across the fund houses.As mentioned in the post, you
must not have more than one fund from the same fund house in your portfolio.By placing all your eggs in
one basket you are taking a huge risk.Hence my advice would be that you must select one large cap
fund,one large cap and midcap fund and one multicap fund from the categories given in the post for your
additional investment.But see that all the funds should be from different fund houses other than HDFC
Mutual Fund.
Reply
106 Biju August 1, 2011 at 9:43 AM

Thank you for your advice.
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Reply

Hi Biju
You are welcome.
Reply
108 Dinesh August 1, 2011 at 6:23 PM

Hi Anil/Hemant,
Appreciate your sincere efforts. I have praised you guys earlier as well so will not just make the comment
bulky, you are truly mentoring many of the people like me who were not very friendly with financial
management. Keep the good work going & also plz let us know whenever we can be of any assist to you.
My current portfolio looks like,
Reliance Equity opportunities 2500/HDFC Top 200 2000/Birla Sun life96 Tax saver 1000/- (planning to quit by Dec11)
HDFC Tax Saver 1000/- (planning to quit by Dec11)
Reliance Gold ETF 2000/PPF 1500/Apart from all the above & after paying all my EMIs I can spare Rs. 3000/- more. plz suggest how can I
utilize that better to fulfill my long term goals (atleast 15 yrs from now).
Anticiapting your valuable & most awaited response.
Best Regards,
Dinesh
Reply

Hi Dinesh
Thanks for your appreciation. You can select one large cap and one midcap and small cap from the list of
funds given in the post for your additional investment. After you quit tax saver funds you can shift that
amount also to large cap and large cap and mid cap funds of your portfolio.
Reply
110 Dinesh August 2, 2011 at 10:27 AM

Thank you so much ANIL. I will go with either IDFC Equity or Franklin India Bluechip.
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I am thinking of putting some money directly into equities ( I mean buying some shares of bluechip
comp) and then keeping it aside for 3-4 yrs since one of my recurring will be maturing this SEP & I
will have 40K in hand. Do you think that can be a wise option?
Reply
111 ANIL KUMAR KAPILA August 2, 2011 at 11:06 AM

Hi Dinesh
I think you can put Rs2000/- in IDFC Premier Equity and Rs 1000/- in Franklin India Blue
Chip. Instead of putting Rs 40,000 directly into equities the better option will be to divide the
amount and put it among the mutual funds in your portfolio.
Reply
112 Deepak August 3, 2011 at 12:15 PM

Hi Hemant,
I have sips in the following
Birla div yield
dsp blackrock micro cap
hdfcequity
hdfc top 200
reliance equity oppurtunity
reliance banking fund
sbi mfsu contra fund
reliance banking fund
reliance growth
reliance rsf equity
idfc premier equity
birla frontline equity
uti oppurtunities
Besides the above i have invested in lumpsum in balanced funds .please advice which sips i should hold on to
and which i should get out off.Thanks
Reply

Hi Deepak
Most of the funds in your portfolio are quite good.You have indicated a dozen funds in your list and you
say that you have also invested ion some balanced funds.You really do not need so many funds in your
portfolio. Your portfolio has diversification in numbers but not in style.Moreover you have four funds
from the same fund house.This makes your portfolio risky.Normally in your portfolio you should have
only one fund from one fund house.My advice to you will be to construct a portfolio based on core and
satellite approach as mentioned in the post.Limit the funds in your portfolio to maximum of seven.Keep
three funds from large cap and large and midcap space in core and remaining in satellite.
Reply
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114 Amit August 3, 2011 at 5:46 PM

Hello Dearest Hemant & Anil!!!
I have created these two portfolios. Which ones is better or are they both equally good? Actually is the first
one is for a person aged 27 years (Aggressive) & the second one is for a person aged 56 years (conservative).
Debt is taken care of through PF, PPF, NSC & Bank FDs. I think the first one has 1 or 2 Extra Funds, which
ones would you prune, given a choice? So your opinion. Thank You.
[1-27]
LARGE (L) + LARGE & MID-CAP (LM) [4,000]
1 CANARA ROBECO EQUITY DIVERSIFIED (LM) [1,000]
2 FRANKLIN INDIA BLUECHIP (L) [1,000]
3 HDFC TOP 200 FUND (LM) [1,000]
4 ICICI PRUDENTIAL DYNAMIC RET (LM) [1,000]
MID & SMALL-CAP (MS) [3,000]
1 BIRLA SUN LIFE DIVIDEND YIELD PLUS [1,000]
2 IDFC PREMIER EQUITY PLAN A [2,000]
MULTI-CAP (MU) [3,000]
1 DSP BLACKROCK EQUITY FUND [1,000]
2 HDFC EQUITY FUND [2,000]
[2-56]
1 DSP BLACK ROCK TOP 100 EQUITY REG (L) [2,000]
2 FIDELITY EQUITY FUND (LM*L) [2,000]
3 ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY RETAIL (L) [3,000]
1 HDFC MID CAP OPPORTUNITIES [1,000]
2 UTI DIVIDEND YIELD (LM) [1,000]
1 QUANTUM LONG TERM EQUITY FUND [1,000]
2 RELIANCE EQUITY OPPORTUNITY [1,000]
Reply

Hi Amit
Both the portfolios created by you are very good.However my personal preference is for the second
portfolio.The reasons are as follows.
The number of funds are less.
In the first portfolio you have chosen two funds from HDFC Mutual Fund whereas in the second you
have chosen only one.
Moreover even second portfolio can be used by aggressive investor just by increasing allocation to
multicaps and mid and small caps.
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You are doing fine.Keep it up.

Reply
116 Amit August 4, 2011 at 9:09 AM

Thanks a lot Anilji for kind comments & valuable suggestions as always. Its all because of guys like you.
Thanks & keep educating.
Reply

You are welcome Amit.
Reply
118 munish singh August 4, 2011 at 2:15 PM

Hi Everyone!
I used the Mutual fund meter . In the returns calculator from [Aug2002 to Aug2011] it is showing the CAGR
of Absolute Returns 1206.5% of HDFC top 200 fund.
Iam calculating my net amount would be this
if i invested Rs 50000 in Aug2002 in HDFC TOP 200 fund then today my amount is 50000 * 1206.5 /100 =
603250 + invested amount (50000)
it is 653250 Iam calculating right or some mistake is there correct me plz.
Reply
119 malik a n August 4, 2011 at 4:42 PM

Hi Anil n Hemanti had been luking fr an exprt advise fr quite some time now to discipline my investments
which i think i have made mess fr myself over the last 4-5 yrs.i was totally dependent on my lic agent and new
vry less abt financial discipline.plz help methese are my present so called investmnts..2 regular lic
policies of 2 lac each for my two kids.rs 10,000in lic market plus..50,000/=in lic endowment plus (growth
fund).1 lac in lic samridhi plus85,000/=in lic endowment plus (growth fund)..thank you vry much
nd luking fr ur reply sir.
Reply

Hi Malik A N
Please note than LIC polices do not come under the category of investments.To meet your long term goals you
2/5/2012
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must start investing regularly in equity mutual funds through monthly SIPs.
Reply

HiAnil..
thanks fr the reply..what about the other investments w.r.t the LIC funds presently taken by me and
also plz suggest me some mutul funds atleast 4 to 5 for investments through SIP mode which may amount
to 5000 to 6000/=
Reply

Hi Malik A N
To meet your long term goals you have to construct a portfolio as outlined in the post.Adopt a core
and satellite approach.In your core you can have one large cap fund and one large cap and midcap
fund.In satellite you can have one multicap fund and one midcap and one small cap fund.You can
select the funds from the list given in the post under different categories.Please ensure that you
select only one fund from a fund house in your portfolio.
Reply
123 malik a n August 6, 2011 at 11:19 AM

HI ..Anil..
thanks for the reply..but u didnt answer my question which was related to my investments in
diff.LIC policies,what should i do with them now?and also plz suggest if i hav to invest 2
to 3 lacs for 7 to 8 yrs,where it should it be invested..thanks vry much.luking forward
to ur reply..
Reply
124 Manoj August 6, 2011 at 11:29 AM

Hello Malik,
If you are looking to invest 2-3 lakhs for 7-8 years then as per the list you can select the
funds mentioned by Hemant and Anil. For this you need to invest Rs. 4000 per month in
mutual funds. You can distribute your amount in these 3 funds which will provide you
proper diversification.
For eg :
HDFC Top 200 1500/Reliance Equity Opportunities 1500/IDFC Premier Equity 1000/
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These are one of the top performing funds. So select accordingly and you can expect
returns of around12-15 % after completion of 8 yrs..
Reply

thanks manoj..
but i want to invest 2 to 3 lacs in one goso plz suggest somethind which must
be safe also
Reply

Hi Malik A N
If you are looking for a safe investment in one go then go for a bank fixed
deposit.
Reply

Hi Malik A N
If you are looking for a safe investment in one go then go for a bank fixed
deposit.
Reply

Hi Malik A N
I think I already answered your question when I mentioned that insurance is not an
investment.Here I would like to add that insurance is an expense but it is very much
needed for risk cover.
It is not very clear whether you want to invest 2 to 3 lacs immediately or over a period of
seven to eight years.Normally, SIP is the best approach to invest in equity mutual funds
over a long period of time.The moment you invest lump sum you become hostage of
market timing.I would not advise you to invest lump sum when the sensex is at 21000 but
you can certainly invest some amount in lump sum when the sensex is at around
17000.Since market is in the correction mode perhaps some lump sum investment can be
done now.
Reply
2/5/2012
Page 39 of 129
Hi Anilthanks for your reply..i want to invest 2 to 3 lacs immediately and at

one go and for a period of 7 to 8 yrs. where i could get good returns..thanks again
and looking for ur reply
Reply

Hi Malik A N
First of all I would like to inform you that all mutual fund investments are
subject to market risks.Normally you should expect around 12% annual
returns provided you remain invested for a very long time.In the short term it
is quite possible that your returns may even be negative.It is important that
you should have risk appetite before you consider any investment in mutual
funds.As I have already mentioned once you invest at one go you become a
hostage of market timing.Hence I would not advise you to invest the entire
amount at one go.Small lump sum investments can be done whenever the
market corrects.
The first job for you is to construct your portfolio by selecting three or four
funds as mentioned in the post and start investing in them in a systematic
manner every month.You can consider the same funds for lump sum
investments also.
Reply

Hi Anil.
is this the right time for investments in the mutual funds,while we are
watching market crashing these days.and also can we start investing in 4
to 5 MFs by initially depositing atleast 20 to 30,000 in each fund and then
following monthly mode for the said fundsthanks
luking for ur reply.
Reply

Hi Malik A N
All times are good as far as investment in mutual funds through SIP
mode is considered.Yes, the best time to make lump sum investments
is when the market corrects sharply.
Reply

hi hemant..
2/5/2012
Page 40 of 129
if i wish to invest in mutual funds for atleast 5 to 7 years,which

type of funds should i chose.is it large cap funds only and why
and also what %age in gold funds. thanks

Hi Malik A N
I think if you read the post carefully you will get answers of all the
questions.I am again repeating that while constructing your portfolio
you should have core and satellite approach.Core will have large cap
and large and midcap funds and satellite will have other type of
funds including gold fund.How much to have in core will depend on
your risk appetite.If your risk appetite is low core will form 70 to
80% of your portfolio.You should not have more than 10% exposure
to gold.
Reply
135 ANIL KUMAR KAPILA September 24, 2011 at 12:21 PM

Hi Malik A N
For proper diversification it is not advisable to have more than one
fund from a fund house in your portfolio. Moreover ICICI
Prudential has only recently launched their gold fund. BSL Midcap
is a nonperforming fund. There are many better performing midcap
funds from other fund house.
Reply
136 KUMAR, BANGALORE August 7, 2011 at 11:41 PM

If you want to invest 2 to 3 lacs immediately, i suggest you to invest in good
debt/income fund and do STP- systamatic transfer plan for rs 5000/- to rs
7000/- a month to a diversified fund according to your asset allocation/need
Reply
137 malik a n September 7, 2011 at 4:41 PM

Hi Anil ji./Hemant ji.
Finally after gathering information about investing through SIPs in MFs.i
hav decided to invest Rs 10,000. in four mutual funds of 4 different
houses.the funds selected are as under:
1. HDFC top 200 Rs 3000.
2.ICICI Prudential focused bluechip equity. Rs2000
3.Reliance equity opp.fund. Rs2000
4.BSL dividend yeild fund. Rs.2000
2/5/2012
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5.Kotak Gold Rs.1000.

i hav decided to invest atleast for 9 to 10 years.moreover kindly suggest
whether i need to make any changes with the funds.
thanking you
Reply

Hi Malik A N
There is no need to make any change in your portfolio. Your fund
selection is very good.
Reply
139 malik a n September 11, 2011 at 10:06 AM

Hi Anil ji.
thanks for your advise.i want top ask you which is the best
performing fund amongst
KOTAK GOLD and RELIANCE GOLD FUND.
also plz tell me if a fund doesnt perform as per my xpectations
do i need to reedeem it or i shud transfer the same deposited
money in to some other fund .
thanks bhy.
malik a n
J& k.

Hi Malik A N
Both the gold funds mentioned by you invest in their gold ETFs.
The performance of these funds depends on the price of gold
and will be similar.You have only to see which fund has lower
charges. Quantum Gold Savings Fund has the lowest charges
and you can consider that fund.
If you find that a fund is not performing and you want to invest
in the fund of some other fund house then you have to redeem
the units of the existing fund. However if you want to invest in
some other fund of the same fund house then you can consider
switching option.

Hi Anil ji/hemant ji .
2/5/2012
Page 42 of 129
i am really great full to you gentleman for just educating me,

making me aware so that i can handle my finances better and i
am really sure that you would have made many more people
like what i am today,confident and can ask questions to the so
called financial advisers .
thanks again.
also kindly tell me which is the better performing fund HDFC
TOP 200 or HDFC MID CAP OPPURTUNITIES.
luking for your reply.
142 ANIL KUMAR KAPILA September 18, 2011 at 7:10 AM

Hi Malik A N
You already have a very good portfolio. HDFC Midcap
Opportunities is no doubt a very good fund. If you want to invest in
this fund you will have to replace HDFC Top 200 with a similar fund
from some other fund house. Both these funds from HDFC Mutual
are very good but you can not compare apples with oranges as these
funds belong to different categories. HDFC Top 200 is a conservative
large and midcap fund whereas HDFC Midcap opportunities is an
aggressive midcap fund. Both have different purpose in a portfolio.
Reply

Hi Anil
As mentioned in my blog 134 above dated 7 sep.i have
chosen..BSL mid cap fund instead of BSL dividend yield fund
as was suggested to me by my friend as well .
Moreover instead of KOTAK Gold i have selected ICICI
prudential regular gold saving fund for Rs 1000 per month
apart from other funds already mentioned above blog dated
Sep.7.
kindly suggest whether i am right in my selection or not.
thanks and waiting for your valuable suggestions.

Hi Malik A N
I think you had told me that you had finalised your portfolio I am
surprised that you are still undecided. I would suggest that instead of
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Page 43 of 129
taking advice from so many people you should rely on your own
wisdom. As already mentioned your portfolio is good and there is no
need to do any tinkering with it. It seems that advice from so many
sources is only adding to your confusion and not helping you.
Reply
145 malik a n September 24, 2011 at 10:04 AM

Hi Anil.
you are absolutely right but at the same time being a new
investor and that too a layman in financial management i was
very apprehensive in my fund selection.In jammu (J&K) i dont
have as many options (fund Houses) as any other person like
me could have in rest of the country.i had decided and
accordingly selected funds after going through your article and
with your valuable advice as well but when i approached ICICI
bank adviser with the above selected portfolio he asked me it
has to be like this and for that he gave certain reasons and
accordingly i was convinced and now i have started SIPs since
yesterday.Now my final portfolio is as under
1.HDFCTop 200 .Rs 3000
2.ICICI prudential focussed bluechip equity..Rs 2000
3.Reliance equity oppurtunities fund.Rs 2000
4.BSL midcap fund.Rs 2000
4.ICICI prudential regular gold saving fundRs 1000
But at the same time i need your consent also which matters me
the most because it is you who have educated me and
encouraged me for all this.
thank you very much.
146 Manoj August 6, 2011 at 10:48 AM

Hi Hemant/Anil,
I have excessive amount in my savings bank account as an emergency fund. I know that it is important to have
emergency fund but I think I have a bit too much.. so I may or may not need that amount in the next 1 or 1 n
half years time. hence I want to invest that bit too much amount in some other debt or hybrid mutual fund
schemes where there is not much risk factor and I can take that amount any time if I require. So I m a bit
confused whether to go for an FD or go with debt or hybrid schemes like Reliance MIP plan(Growth) where
80 % invest in debt n 20% equity or go with purely debt scheme like Birls SL dynamic bond fund. Or I
appreciate if you can suggest any other fund where there is hardly any risk..
Reply
2/5/2012
Page 44 of 129

Hi Manoj
For short term investment up to three years go for debt.
For medium term investment of three to five years go for hybrid funds.
For long term investment of more than five years go for equity funds.
Since you want to invest only for around one year the best option for you is to go for fixed
deposit.Moreover you will get good interest also.Since you are taking this amount from your emergency
fund, the best option will be to go for a flexi fixed deposit.This deposit is linked to your savings deposit
and has sweep in and sweep out facility.So whenever you need cash you can take it without breaking your
fixed deposit for the entire amount.
Reply
148 Manoj August 6, 2011 at 1:37 PM

Hi Anil,
thnx for the info.
Reply

You are welcome Manoj.
Reply

You are welcome Manoj.
Reply
151 samir August 10, 2011 at 12:42 AM

hello,
I am 26yrs old, married, No Liabilities.
I am opting for an Aggressive Approach dividing my Investment in 70:30 ratio.
Please advice the below selected fund are good from a Long term Perspective
SIP Monthly Rs
AIG World Gold Fund- Growth 2,500
HDFC TOP 200 FUND GROWTH -2,500
DSP BlackRock Top 100 Equity-Growth 2,500
ICICI Pru Focused Bluechip Equity Fund- Growth -2500
IDFC Premier Equity Plan A -3000
2/5/2012
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Please help how do i plan my Debt fund of 10K per month?

Need your valuable input.
Reply
152 samir August 10, 2011 at 1:23 AM

hello,
I am 26yrs old, married, No Liabilities.
I am opting for an Aggressive Approach dividing my Investment in 70:30 ratio.
Please advice the below selected fund are good from a Long term Perspective
SIP Monthly Rs
AIG World Gold Fund- Growth 2,500
HDFC TOP 200 FUND GROWTH -2,500
DSP BlackRock Top 100 Equity-Growth 2,500
ICICI Pru Focused Bluechip Equity Fund- Growth -2500
IDFC Premier Equity Plan A -3000
Should i go for STP Flex from HDFC or Should i opt for Value Average Investment Plan (VIP) Option for the
investment of MF.
Please help how do i plan my Debt fund of 10K per month?

Need your valuable input.
Reply

Hi Samir
Your portfolio is quite good.For debt you can consider some good hybrid fund. Stick to normal SIP.
Reply
154 samir August 10, 2011 at 4:56 PM

Hello,
Thanks kapil.
Well i have not yet started the above mentioned SIP, Planning to do it via Fundsindia in VIP mode.
Please help me in selecting the Best portfoils MF as per your experience.
Which hybrid Stocks are Good ?
2/5/2012
Page 46 of 129
Reply

Hi Samir
I have already mentioned that the funds you have selected are quite good and can form part of
your portfolio.If you want you can add one multicap fund from the list given in the
post.Hybrid funds are basically a mixture of debt and equity.I had suggested hybrid funds
since you wanted some exposure to debt in your portfolio.
Reply
156 Hemant Beniwal August 11, 2011 at 7:44 AM

Hi Samir,
Its good to hear that you would like to invest regularly but do you have any idea about limitations of VIP
of Flex STP??
Reply

Hello Hemant,
Please guide me the limitation of VIP or Flex STP. It would be really of great help to me.
Is it really advisable to invest my fund in Equity ?
i have 34K monthly for investment assigning 24K for Equity SIP and 10K in Debt.
Should i really go for DEBT Instruments , If Yes Please guide me 3-4 MF for Debt.
Regards
Samir
Reply
158 Hemant Beniwal August 11, 2011 at 8:43 PM

Hi Samir,
These products are based on value averaging concept which is a good concept & sometimes
looks even better than rupee cost averaging(SIP). First value averaging is not used in best
shape in India value averaging says when market is going down add more amount & when
market is going up there should be provision to redeem amount. Adding more units is available
in many systems but no one talks about redeeming amount. Second in case of a sharp fall you
need to add lot of money say you are running a 4 thousand per month SIP & next month they
may ask you to add Rs 15000 which is not practical for everyone. Value averaging is also not
helpful in secular bull runs. So when we will see the calculations on paper it may look amazing
but I think SIP with combination of asset allocation will be a better option.
2/5/2012
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Reply

Hi Hemant
I think this is not very common and only a few fund houses offer this option.
Reply
160 Hemant Beniwal August 13, 2011 at 8:06 AM

Hi Anil,
You are right
Reply

hello Hemant,
Thanks for the clarification on VIP.
I feel then SIP is ideal way of investment for the time being. But again if you can provide
some names of the Fund for the DEBT section.
If you can give me more clarity on the Asset alloction ?
So i really look at investing in DEBT?
As per my planning for future investment:
55% is for MF
14% is Shares Trading (1 month hold period)
30% is for DEBT.
Please suggest.
It really good to get such valuable updates from You All.
Reply
162 munish singh August 12, 2011 at 2:41 PM

Hi Every One.
How it is recognized that this fund is large cap and the other one is multi cap and small caps .
Reply
2/5/2012
Page 48 of 129

Hi Muish
You can refer to the fact sheet to find out the capitalisation of the fund.Typically a large cap fund will
have 70 to 80% Lcap, a midcap fund will have 20 to 45% Lcap and a multicap fund will have 40 to 70%
Lcap.
Reply
164 Amit Kumar August 12, 2011 at 5:53 PM

I am first time investor, can invest up to Rs. 10000/-pm.
I selected following funds for investment.
DSPBR Top 100 Equity Rs.2000/Fidelity Equity fund- Rs.2000/HDFC Top 200 Rs.2000/IDFC Premier Equity Rs.2000/Reliance Equity Opportunities Rs.2000/Please comment & suggest some modifications if any for my long term goals.(10 yrs from now).
Reply

I think the Fund Selection is fine enough except having some doubt over Reliance Equity Opportunities.
Will ask Anil & Hemant for myself too.
Reply

Hi Amit Kumar
Your fund selection is good. Keep tracking the funds after investment.
Reply

Hello Dear Anil & Hemant! Please help me decide about a good multi-cap fund. I thought HDFC Equity was a
good option but I already have HDFC Top 200. You advice not to have 2 funds from same fund house. So
kindly advice. Regarding Reliance Equity Opportunities, I have heard mix reactions. It seems to be a very
very risky fund. Would it be prudent to go for the same?
PS: Happy RakshaBandhan to all TFL students & professors!!!
Reply
2/5/2012
Page 49 of 129

Hi Amit
Reliance Equity Opportunities fund is OK.In general multicap funds are riskier than large cap
funds.Moreover it is not possible to predict the future performance of any fund based on its past
performance.That is why tracking of all funds in your portfolio after starting investment is important.
Reply
169 Amit August 13, 2011 at 2:18 PM

Thanks for the confirmation.
Reply
170 Mihir Vora August 13, 2011 at 8:59 PM

Dear Hemant,
I want to invest in mutual fund via SIP.Advise me which mutual fund should i opt for.I have already invested
money in below fund via SIP..
Birla sun life tax relief 96
Fidelity tax advantage dividend
Reliance gold saving fund
Reply

Hi Mihir
You can select one large cap and one large cap and midcap fund from the categories mentioned in the
post.
Reply
172 singh August 14, 2011 at 8:51 AM

Hello Hemant & Anil
Now HDFC Mutual Fund & also Birla Sun Life Mutual Fund allows us to invest online through two modes
one which requires PIN & other which doesnt require the same. Can you please differentiate the two
processes or are they similar?
Reply
2/5/2012
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173 Rajendra Prasad August 15, 2011 at 9:58 AM

some tips on good mutual funds to invest in using SIP.
Reply

Hi Rajendra Prasad
Please go through the guidelines given in this post.
Reply
175 aslam August 17, 2011 at 2:14 PM

hi my monthly income 30000
my family present expanse 10000
my investment in lic policy 48000 per year including pension plus
in pf 2000 month
have sip in sbi msfu contra 1000/month
dsp BR top 25 EQ 1000/month
hdfc top 2oo 1000/month
icici dyanamic 1000/ month
now should i continue same or i need to coreect it and revise my portfolio
Reply
176 Hrishi August 18, 2011 at 11:33 AM

Hi Hemant and Anil,
I am 32 years old and want to stay invested in equity diversified mutual funds for a long time and want to
invest 35k per month via SIP.I have gone through this very nice article and I want to invest 70% in large and
large mid cap(core) and 30% in mid and small cap and multi cap(satetllite).The funds and the allocation are as
follows:
1.Franklin India Bluechip Growth(Large cap) : 12500
2.HDFC TOP 200 FUND GROWTH PLAN (Large and mid cap): 12500
3.IDFC PREMIER EQUITY FUND-GROWTH PLAN A (Mid and small cap) :5000
4.RELIANCE EQUITY OPPORTUNITIES FUND GROWTH PLAN (Multi cap): 5000
Please let me know if the above is fine and also can you please help me clarify my doubts over the few things
below:
1. Can I be bit more aggressive and invest 60% in large and large & mid cap(core) and 40% in mid and samll
cap and multi cap(satellite)? Then the invetsments can be 10500,10500,7000 and 7000 respectively for the
above funds.
2.I can start this SIPs for 12 months and depending upon the performance will either continue or stop these
funds at the end of this 1 year period . Should I think of selling those funds that time only in case I want to
2/5/2012
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discontinue them due to the permormance?

Reply

Hi Hrishi
The portfolio constructed by you is very good.
The allocation between core and satellite is decided basically by your risk appetite.If you have a risk
appetite then you can tilt your balance towards satellite.
I want to stress here that when you start investing in equity mutual funds your time horizon should be
more than five years.Starting SIPs for only 12 months does not make any sense.You must give time to
your investments to grow.You can not stop your SIPs based on short term performance.
Reply
178 Hrishi August 18, 2011 at 5:11 PM

Thanks for the confirmation Anil.
I want to really keep investing in SIPs for a very long time.But as you have also told sometime back to come
out of any non performing fund before it is too late, thats why I mentioned to start SIPs for 12 months and
then discontinue those very funds which do not perform good and switch back to a new fund.It the fund
performs well,I will surely continue the same. But if it does not, should I continue the non performing fund for
more than 12 months or give it some more time?I get confused when people say Keep monitoring your
funds/portfolio every time. Does it mean that you keep changing the funds from your portfolio when they do
not perform well ?
Reply

Hi Hrishi
The performance of the fund is to be checked against its index as well as its peers.If you find that the
performance of the fund is consistently poor based on these criteria over a considerable period of time
only then you should think of replacing it with a better performing fund of the same category. It is
important to compare apples with apples and not oranges.
Some rating agencies give star ratings to funds.If you find that when you started your SIPs the fund had
a five star rating but after say one year the rating drops to two stars then it is probably the time to exit
the fund.
Reply
180 Hrishi August 18, 2011 at 7:27 PM

Anil,
Thanks again for this information.I will try to keep this in mind in future.
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Reply

You are welcome Hrishi.
Reply
182 Mahesh Dattaraj Godbole August 21, 2011 at 1:13 PM

I INVEST IN DSP BLACKROCK TOP 100 EQUITY REGULAR GROWTH AS RS.1000/- PER MONTH
THROUGH SIP BUT MONEYCONTROL.COM SHOWS ITS RETUNRN DOWNWARDS AS -6.94%
FROM 1 YEAR . CAN I KEEP INVESTING IN IT?
Reply

Hi Mahesh
Investment in equity mutual funds is done to meet your long term goals.Long term here means more than five
years.So you should see how the fund has performed during the last five years.In short term the performance
of the fund can go up and down depending on the market condition.Moreover the performance of the fund has
to be considered in comparison to its index and peers.Under the present market condition you will see that
most of the funds in this category are giving negative returns.You should consider exiting from the fund only if
you see it consistently performing poorly based on the criteria mentioned.
Reply
184 Shailesh August 21, 2011 at 6:51 PM

Hi Anil,
I have started to invest in SIP before 8 months and now I have reviewed my portfolio again based on your
comments and my analysis. and want to continue SIP of Rs.10000 in following fund from this month.
Currently SIP will be atleast for next 10 year plan.
ICICI Prudential Focussed Bluechip Equity Rs. 1500
HDFC Equity Rs 1500
HDFC Mid-cap Opportunities Rs. 1000
HDFC Balanced Rs. 1500
SBI Magnum Emerging Busi (G) (8) Rs. 1500
Reliance Gold Savings Fund (G) (2) Rs. 1000
Franklin Pharma Fund (G) (8) Rs. 1000
UTI Opportunities Rs. 1000
Kindly review this portfolio and provide your comment.
Regards
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Shailesh
Reply

Hi Shailesh
All the funds selected by you for your portfolio are very good.The only issue is that you have selected
three funds from one fund house.Normally to have proper diversification it is suggested to have only one
fund from one fund house
Your portfolio is very aggressive and some what risky.If you have risk appetite then it is OK.
Reply
186 Shailesh August 22, 2011 at 12:44 PM

Thanks a lot Anil for your valuable input.
I will try to shift one HDFC fund to another fund house.
Regards,
Shailesh
Reply
187 Rohit August 21, 2011 at 11:56 PM

Hi Amit
Let me 1st thank you and congratulate you for this wonderful thread Very informative and guiding.. will
certainly make the investors more mature.
I have a couple of questions.
(1) How can I work-out a long term goal and corpus ( I mean technically), so that I decide upon my SIP
strategy (I dont have SIP but want to start tomorrow. By & Large the goals are meeting my childs
education needs, and a descent post-retirement income).
(2) With this market condition, and having some surplus cash, I feel tempted to invest in stocks.. should I ?
and which sectors ?
Thanks Rohit
Reply

Hi Rohit
The first step is to find out the time available for the goals.Then you have to subtract three years for the
time available.This gives the time which you have to give your portfolio to grow.Once you are three years
away from your goal you have to slowly start shifting in a systematic manner your corpus from equity to
debt.As you reach your goal your entire corpus will be in debt.
If you have to find out the corpus required for your retirement you have to first know how much is the
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money you need presently to maintain your present life style.Then you must be clear about the life style
which you want to maintain after your retirement and the money you need if you were to retire
today.Next taking the time available and inflation in to consideration you can calculate the corpus
required.Taking 12% as the annual return from equity mutual funds you can work out the SIP required.
Please note that calculators are available at most personal finance web sites which can be used by you.
It is not advisable for the first time investors to make direct equity investments in the market now.
If you have some cash available you should select three or four good diversified equity funds and park
your cash there.
Reply
189 Rohit August 22, 2011 at 10:32 AM

Thanks Anil. One more question related to Insurance.
I did the classic mistake of expecting returns from Life Insurance policy.
I am paying 32000 for JeevanShri, and another 28000 for LIC Education plan.. while I am covered
only for 10Lac both combined. I am going for the Kotak term plan for 50 Lac atleast.. but should I
discontinue and cash-in my LIC policies and invest the money into some more rewarding things like
MF ?
Reply
190 Rohit August 22, 2011 at 8:20 AM

Oh! my earlier post was for Anil ( not Amit.. sorry.. typo )
Reply
191 Mihir Vora August 24, 2011 at 10:21 AM

Hi,
Can you please advise me whether investing in SBI gold fund is good option or i should go for one of the mid
cap or large cap mutual fund
Tenure of investment 3 to 5 years
Reply

Hi Mihir
Investments in equity mutual funds are done to meet your long term goals.Tenure of investment should
be more than five years.Tenure of three to five years comes under medium term. For this you can
consider investing in balanced funds such as HDFC Balanced or HDFC Prudence.
Both equity and gold mutual funds have a place in a portfolio. For the long term equity mutual funds
should form the core of the portfolio with gold mutual funds acting as a hedge to balance and add
stability to the overall portfolio. So, invest in a gold mutual fund once you have built a well diversified
portfolio of equity mutual funds with 5-10% portfolio allocation to gold.
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Reply
193 Mihir Vora August 25, 2011 at 9:40 AM

Dear Anil,
Thanks a lot for your posting..
As i have already started a SIP in RGSF so now m planning to start SIP for fund HDFC top 200 for tenure of
more than 5 yearstell it is good option or i should go for Fidelity India Growth with same SIP amount and
same tenure.
Reply

Hi Mihir
Yes you can go for HDFC Top 200. This is a very good fund with proven track record.How ever you must
keep a track of your funds after you start investing to take any corrective action if required.
Reply
195 amol August 25, 2011 at 7:46 PM

Dear Hemant sir
I have Following Sips(Growth opt)
1. HDFC Top 200 2000/2. UTI Div Yield 2000/3. Birla Frontline eq- 2000/4. IDFC Pre Eq A 2000/5. Reliance Reg Sav Eq 1000/6. DSPBR Top 100 1000/Now I want to invest 4000/- more.
I have shortlisted1. HDFC Mid Cap opportunity
2. HDFC Equity
3. IDFC Small &Mid cap . Plz guide me
Reply

Hi Amol
The funds selected by you are good.But you are already invested in too many funds.Moreover it is not
advisable to invest in more than one fund from a fund house.Hence you can increase your SIPs in your existing
funds.
Reply
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197 amol August 27, 2011 at 10:53 PM

Thanks Anil ji, for your valuable comments.
Reply

You are welcome Amol.
Reply
199 saryu August 28, 2011 at 8:12 PM

Anil ji,
I want to start new SIP in aggressive MID Cap fund Is SBI Emerging Businesses fudn is a Godd Take?
Reply

Hi Saryu
While considering a fund for investment other funds in the portfolio have also to be considered.No fund can be
selected in isolation.
Reply
201 pawan August 29, 2011 at 3:11 PM

Dear Anilbhai.
Right now i m investing in following fund
DSPBR 100EQUITY = 1000 (Monthly)
SBI MAGNUM(G) = 1000(Monthly)
PPF = 4000 (Monthly)
Kotak Super ADV ulip = 15000 yearly
kotak smart adv ulip = 15000 yearly
bajaj allianze ulip = 10000 yearly
i want to know whether above investment are good enough to get good return in long term i mean shud i
continue or quit. can i expect return good return. and i want to quit sbi magnum tax .gain (G). please suggest
me some good equity sip mutual fund as i want to invest 4000 monthly in it
Reply
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Hi Pawan
I do not understand your logic of investing in three ULIPs. You can not expect to get any good return in
ULIPs. Investing and insurance should never be mixed.
You can select one large cap and one large and midcap fund from the list given above for SIPs.
Reply
203 pawan August 29, 2011 at 7:18 PM

Dear Anilbhai,
Thanx for your anticipation, show me the way as i am investing in three ulip but i am going to stop
further continuation of bajaj ulip and kotak smart adv as already 5 yrs and 4 yrs are completed of
same..hence now onward i want to know what should be my concoction of my investment that result into
fetch a good return after a couple of year. my yearly investment goal in PPF is 48k . is this sufficient or
should be enhance upto max. ie 7ok .. Please guide me
Reply

Hi Pawan
The most important thing is to have proper asset allocation. The asset allocation will depend on
your age, risk appetite, tax implications, long term goals etc. To meet your short term goals of up to
2 years you should invest only in debt like fixed deposits.To meet your medium term goals of up to
five years you can consider investing in balanced funds like HDFC Prudence or HDFC Balanced. To
meet your long term goals of more than five years you should invest in equity mutual funds. When
you are young your risk appetite is more and your asset allocation will be more in equity and less in
debt.If you are not invested in other tax saving instrument you can increase your contribution of
PPF.
Reply
205 prakash August 30, 2011 at 1:53 AM

hi anil,
I am 28 old. and my current investment in equity sip goes like this
DSPBR 1000 monthly
SBI MAGNUM TAX GAIN(G) 1000 monthly
HDFC TOP 200 = 1500 Monthly
as i want to invest arount 6000 more in mutual funds through SIPs. so kindly let me the good funds. time
horizon is approximately 5yrs. are above mention fund where i am investing is good or should i discontinued
it. as sbi magnum is not giving satisfactory result.
Also let me know the ratio of investment in different equities as i want to invest like this
HDFC Midcap Opportunities
= 1500 Monthly
HDFC Equity
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= 1000
DSPBR 100EQUITY= 1000. rest you told me and advise said fund are good to invest
Reply

Hi Prakash
Investment in equity mutual funds is done to meet your long term goals.Your investment horizon should
be more than five years.If your investment horizon is only five years then it will be medium term.For
medium term you can invest in balanced funds like HDFC Prudence or HDFC Balanced.For long term
investments have a proper diversified portfolio.You can start with one large cap fund , one large and
midcap fund, one multicap fund and one mid and small cap fund.
Reply
207 gurpreet August 30, 2011 at 2:03 AM

hi anil.
I want to invest app 7000 in equity SIPs . please guide me which sip mutual fund i should choose and from
where i can take it. what is the difference between taking it from a agent or from the centre like hdfc mutual
fund office etc or from ETC. what is njfundz financial services.?
Reply

Hi Gurpreet
If you directly invest through fund houses then you do not have to pay anything extra.If you invest through an
agent then you may or may not have to pay extra. Check up with your agent before investing.Please read the
comment given above for Prakash.
Reply
209 prakash August 30, 2011 at 8:54 PM

hi anil,
what are balanced funds and hdfc prudence fund are they related to market or sensex. which is good fund
among icici balanced fund or hdfc balanced ..can i name of some good fundz.
Reply

Hi Prakash
There is a category called hybrid funds. Hybrid funds have exposure to equity as well as debt.
Conservative funds have less exposure to equity and more to debt. Aggressive funds have more exposure
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to equity and less to debt.Investors can select hybrid funds as per their risk appetite.Both HDFC
Balanced and HDFC Prudence are good hybrid finds and are less risky than pure equity funds.
Reply
211 prakash August 31, 2011 at 1:09 AM

Anil, Thanx a lot for your valuable suggestion
Reply

You are welcome Prakash.
Reply
213 saryu August 31, 2011 at 10:21 AM

Anil Ji,
Presently I investing through SIP in the following Fund
Franklin Blue Chip Rs. 2500 (Large Cap)
SBI Contra Rs. 2500 (Value )
Gold ETF 1 Unit every Month
and want to Start new SIP for Rs. 2500 in SBI Emerging Business Fund for Mid cap, What is your take on this
fund
please advise
Reply

Hi Saryu
Please do not invest in two schemes of the same fund house.
Reply
215 anu August 31, 2011 at 9:12 PM

hi anil.
I am new in equity investment i want to ask Is this is a right time to invest in mutual funds(equity) if i paid
lumpsum amount. i had taken sip of one of the sbi mutual fund which is not performing well and i want to
discontinue it 18 install. has been paid up 1000 each. and if i terminate it then would there be any exit load? as
it is ELSS fund called SBI MAGNUM TAX GAIN(G).
kindly suggest me what should i do
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Regards,
Anu
Reply

Hi Anu
In ELSS Funds there is a lock in period of three years. This means that you can not withdraw money for
three years but you can discontinue your investment any time. Moreover from the next year you are not
going to get any tax benefits from your investment in ELSS funds.
All times are good as far as systematic investment in equity mutual funds through SIP route is concerned
as you remain invested for a long time irrespective of the condition of the market. In fact maximum
benefit is obtained when the market corrects substantially as it gives you opportunity to buy units at low
NAV.
When you do lump sum investments you become hostage of market timing.
As the market has corrected now you can do some lump sum investments. However I would suggest that
your first priority should be to construct a good diversified portfolio of three or four equity mutual funds
and start investing in them in a systematic manner.
Once you have done that you can think of doing lump sum investments in funds of your portfolio.
Reply
217 anu September 1, 2011 at 4:51 AM

hello anil,
I want to invest 5000/month through SIP in mutual funds, i have gone through above article after which i am
bit confused which one to choose among all. but one fund that i choosen is ICICI Prudential Focused Bluechip
Equity where i want to invest 1500/month, rest you told me where to invest ie whether in mid cap, small cap,
multicap etc.
secondly which is good among:
Fidelity India Growth or HDFC Top 200
and HDFC mid cap opportunities and IDFC premier equity (in small and midcap segment)
kindly give your valuable suggestion
Reply

Hi Anu
The most important thing is to have a portfolio which is diversified across different fund houses as well as
categories of funds. Diversification is needed to spread your risk.Hence you must have not more than one
fund from a fund house in your portfolio. Initially you can start with ICICI Prudential Focused Bluechip
Equity, HDFC Midcap Opportunities and Reliance Equity Opportunities. As your investment increases
you can add one or two funds later on. You should make your lump sum investments also in these funds
with 60% in core and 40% in satellite.
Once you start your investments you must track the performance of all funds in your portfolio at least
once in a year by comparing the performance with index, category average and peers. If you see a fund
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not performing consistently based on the above criteria you can take corrective action.
Reply
219 bhavya September 1, 2011 at 10:44 AM

HI, have read the article and some comments too, very informative, thanks to Hemant and all participants.I
want to invets 10,000 as SIP for a long term Horizon, what could be the best combination so as to get a decent
return.
Reply

Hi Bhavya
You can construct your portfolio by selecting one large cap fund, one large and midcap fund, one
multicap fund and one mid and small cap fund. Do not have more than one fund from a fund house to
have proper diversification across fund houses and fund categories.
Reply
221 pankaj September 3, 2011 at 1:24 AM

Dear Salil,
My age is 28 yrs and I have following portfolio. please read it and kindly let me know whether i am investing
on a right path or not.
Bajaj allianze (ulip) = 10000/yearly (5yrs)
kotak smart adv(ulip) = 15000/yearly(3Yrs)
kotak super adv(ulip) = 15000/yearly(2 Yrs)
jeevan anand = 14700/ yearly
DSP BR(g) = 1000/Month (since apr 2008) current nav 15.8(app)
sbi tax magnum(g) = 1000/Month (feb 2010)
ppf = 36000/yearly (
i want know whether the amount invested in above funds are good enought to provide me handsome return or
i must terminate it (if any)
secondly, Is this is right to invest lumpsom amount in Equity mutual fund like. i have taken SIP of sbi
taxmagnum(g) but it is not performing well. shud i discontinue it or not. and privide me details of some of the
mutual funds as i wanted to invest 4000/month in equity SIPs for app 7yrs
Reply

Hi Pankaj
I do not understand the logic of your investment. Why have you invested in three ULIPs? Investment
even in one ULIP is a bad idea. You should not expect any good return from ULIPs.
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You can stop your investment in SBI TAX Saver fund.

Investment in equity mutual funds should be done through SIP route. When you follow this approach all
times are good for investment. By doing lump sum investment you become a hostage of market timing.
Lump sum investment should be done only when the market corrects substantially.
You can invest in one large cap fund and one large and midcap fund from the list given above. Both the
funds should be from different fund houses.
Reply
223 pankaj September 3, 2011 at 1:26 AM

Sorry , above question asked to Anil ji
Reply
224 Munish Singh September 3, 2011 at 9:39 AM

Mr Anil,
I read your comment over lumsum investment in equity . So the present time is right for this because market is
down at the moment . Can I proceed I have amount but dont know will go for FD / FMP or put it in equity
lumsum.
kindly guide me .
Regds,
Reply

Hi Munish
The most important thing is to have proper asset allocation.Next thing is to have a portfolio of diversified
equity mutual funds.Investment in FD/FMP is done to meet your short term requirement of up to three
years. Investment in equity mutual funds is done to meet your long term goals which are more than five
years away. If you have some lump sum with you which you will not need for five years then you can go
for investment in equity mutual funds. If you want to park your money only for short term then go for
debt.
Reply
226 Munish Singh September 3, 2011 at 2:52 PM

Anil Ji,
Iam regular user of TFL since long back but still my skill in this area is at normal level or you can say still iam
feeling unconfident to take decision independently in this . So If you plz suggest me some long term fund or
debt funds . So that i invest 50 % amount lumsum in equity and rest in debt fund.
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HDFC equity , TOP200 , ICICI Pru Focused B chip all in growth, already i have in SIP.
Reply

Hi Munish
I do not know about your age and risk appetite. If you are a young person and can take some risk then
your asset allocation can be something like this : 60% equity, 35% debt and 5% gold. If you want some
exposure to debt along with equity then a balanced fund like HDFC Balanced can be considered. While
constructing your portfolio you should have diversification across fund houses as well as category of
funds. Hence you must not select more than one fund from a fund house.
Typically, you can select funds like this :
1 ICICI Prudential Focused Bluechip Equity.
2 UTI Opportunities Fund.
3 HDFC Midcap Opportunities Fund.
4 Reliance Equity Opportunities Fund.
After starting your SIPs please keep tracking your funds.
Reply
228 ANIRBAN September 3, 2011 at 9:42 PM

Sir,
I want to invest in mutual fund via VIP method in fundsindia. Is it safe and the Best way to invest or SIP is the
Best. Also I want to take Term insurance in Aviva ilife. Is it good or not pls suggest me.
Reply

Hi Anirban
Your question regarding VIP has been answered many times on posts. This method has many limitations.
SIP is the best mode. Stick to that.
Reply
230 anu September 3, 2011 at 9:45 PM

hi anil bhai,
i Have started SIP in large cap fund like icici prudential, and HDFC equity after reading all the article and
after taking advice from you. but I have one question about ETF(Exchange traded fund), i want some
information about ETF, how it works and is this safe investment if i suppose to do SIP in ETF? what is your
view in this regard. if yes then which is the best one i heard from one that BENCHMARK is good in terms
of ETF. kindy provide me your advice and view.
thanks and regards,
Anu
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Reply

Hi Anu
To get answers to all your questions read the post on ETFs which appeared in the month of July just
after this post.
Reply
232 sumit September 4, 2011 at 10:52 AM

hi anil,
I am new in equity investment, but i want to start investing in equity through SIP mutual funds, so kindly give
your advice how i can start it and from where. If suppose i choose icici direct then Is there any charge
deduction for each SIP installment.
Which company is best and from where i can start among icicidirect, hdfc , kotak, njfundz etc . please suggest
me
Also suggest me some name of good fund my time horizon is more than five years for investing in equity and
my age is 28 yrs, i have read all the above articles but i am confused.
Total amount to be invested monthly = 4000 only
Thanx and Regards,
Reply

Hi Sumit
Since you are going to invest only Rs 4000/- per month, you can select one large cap and one large and
midcap fund for your investment like ICICI Prudential Focused Bluechip Equity and UTI Opportunities
Fund. You can contact the fund houses directly for investment.
Reply

Dear Anil, can you tell me which is the best fund house to go with. ? and also which is good among hdfc top
200 and hdfc mid cap opportunities
Regards
Reply
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Hi Sumit
While selecting funds for portfolio you have to consider the category of the fund, fund house as well as
the fund. We can not compare apples with oranges. Both HDFC Top 200 and HDFC Midcap
Opportunities are very good funds but since they belong to different categories they should not be
compared. Similarly a lot of different criteria are used to evaluate the fund houses. ICICI Prudential,
UTI Mutual Fund, HDFC Mutual Fund and Reliance Mutual Fund are among the top fund houses based
on the criteria of assets under management, number of top performing funds, systems under place in the
fund house etc.
Moreover it is important to remember that investment in mutual funds is a dynamic process. It is quite
possible that funds which are performing very well today may lose their performance tomorrow. You can
not afford to sit tight after investing in mutual funds. You must evaluate the performance of your funds
at least once in a year by comparing with index, category average and peers. You should be prepared to
exit a fund if it consistently under performs based on the above criteria.
Reply
236 Rajasree September 5, 2011 at 11:51 AM

Hi Anil,
At present Im investing Rs 10,000 per month in following SIPs
HDFC Top 200 Growth Rs 2,000
HDFC Equity Growth Rs 4000
Sundaram Select Midcap Appreciation Rs 2,000
ICICI Prudential Dynamic Plan Cumulative Rs 2,000
I also had Kotak 50 Equity Growth & DSPML opportunities Growth( now DSL Black) but I have stopped
those SIPs. Now I want to invest another Rs 6000 per month in MF via SIP. Please advise in which funds to
invest so that I have a balanced approach. I have a long term goal of 10-12 yrs. Also comment if my existing
SIPs are promising or not.
Regards,
Rajasree
Reply

Hi Rajasree
Your fund selection is good but your portfolio is very risky as you have invested 40% in core and 60% in
satellite and you have invested in two funds of HDFC Mutual Fund house. Since you have not invested in
pure large cap fund I would suggest that you select one fund from the three funds of large cap category.
This will provide stability to your portfolio.Moreover to have proper diversification across fund houses
keep only one fund from HDFC Mutual Fund house and replace other with similar category of fund from
other fund house.
Reply
238 sumit September 5, 2011 at 10:27 PM
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hi anil,
After having discussion with you and reading above article which all are very informative and i would like to
appreciate you for your dignified service.
Now my question is i have selected following funds and please correct it if it is not balanced according to you.
Large cap = icici prudential blue chip(G) 1500/Month
HDFC = which is good among and to go with HDFC EQUITY OR HDFC MIDCAP OPP. ??? 1500/month
and also give some information on IDFC SMALL AND MIDCAP EQUITY SME FUND GROWTH for
small and mid cap. Is this fund is good to buy because i have not seen any article on this fund.???
Reply

Hi Sumit
While investing in equity mutual funds you have to follow core and satellite approach.The core should
consist of 70% of your portfolio.It should have only large cap and large and midcap funds. These funds
are less risky and provide stability to the portfolio. Multi cap and mid and small cap funds are riskier
and should be considered only when the core is in place. Since your investment amount is very small I
had asked you to stick to only to large cap and large and midcap funds. You can go for HDFC Midcap
Opportunities Fund for your additional purchase only.Having more exposure to satellite will make your
portfolio very risky.
Reply
240 SANJAY September 6, 2011 at 12:38 AM

Hi Anil and Hemant
I have read all the articles post and the comments . Appreciate and Thanks to all of you guys for such valuable
informations. Its really an eye opener for me. I would like to know if there are any seperate guidelines for
NRE investors . Would you suggest investing in ICICI GSIP plan. Also I have invested in LIC Samridhi Plus
policy (25,000x 4)/year for next 5 years in april 2011 and invested directly in the following shares 2 years back
through share khan Dmat account.
Scrip Name -Bal Qty-Avg Pur Price-Total Pur Cost-Curr Market Price- Curr Value BALRAMCHIN- 20077.68- 15536- 54.65- 10930
IBREALEST- 1274 - 163.44- 208222.56- 81 103194
IBWSL 159 - 1308 - 207972 - 4.45 - 707.55
IDBI -200 - 154.1- 30822 - 105.75 - 21150
SUZLON - 600 - 70.65 - 42390 - 37.9 - 22740
Total 2433 504942.56 158721.55
Would appreciate your kind sugestion or coments regarding the LIC policy and the above shares so that i can
minimize the loss.
Thanks and Regards
Sanjay
Reply
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Hi Sanjay
This post is only for investment in mutual funds. Advice regarding stocks can not be given here.
Reply
242 nilesh September 6, 2011 at 4:30 PM

Dear Anil,
I want some information on icici life wealth-2 this is ulip policy. please suggest should i buy this or not ?
Reply

Hi Nilesh
It is always better to avoid any ULIP product.
Reply
244 deepak September 7, 2011 at 6:52 PM

Hi Anil,
I m investing in 3 funds as below.
1) HDFC TOP 200 -2000 Rs
2) ICICI pru discovery fund -1000Rs
3) IDFC pre equity plan -A -2000 Rs
As in my portfolio 2 small and mid cap fund are there. So should I switch to ICICI focused fund (large cap)
and for multi cap which one is best quetum long term or reliance equity opportunity fund? And for this sip
can I consider one balanced fund ? if yes then suggest one considering my portfolio.
Reply

Hi Deepak
Your fund selection is good but your portfolio is risky. You can go for ICICI Prudential Focused
Bluechip Equity and Reliance Equity Opportunities Fund.
Reply
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Hi Anil,
So should I continue with pru discovery fund? If not then I will have two fund from same fund
house. And any balanced fund is required in my portfolio?
Reply

Hi Deepak
Best performing balanced funds are from HDFC Mutual Fund and ICICI Prudential Fund.
Since you already have funds in your portfolio from these fund houses I have not mentioned
about balanced funds. Yes you can replace Discovery Fund with Focused Bluechip Equity
Fund.This will provide stability to your portfolio and there will be no need to have a balanced
fund.
Reply

So Anil,
I like to make below portfolio.
3000 Top 200
3000 Icici pru focused
2000 IDFC prem equity
2000 Reliance opportunity fund.
IS it ok?
Reply

Hi Deepak
Your portfolio is perfect.
Reply
250 deepak September 18, 2011 at 10:59 AM

hi Anil,
Thanks for your valuable input. Can u guide me is it safe to invest in e-gold?
Because it is newer one but from that we can get physical gold. and if yes from
which DP is safe to invest?
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Reply
251 Mahesh Godbole September 7, 2011 at 7:32 PM

Respected Anil ji,
I invest in following funds .
1. DSP Blackrock top 100 equity reg.gro. Rs.1000/- per month
2.Reliance Gold saving fund Rs.1000/- per month
3.HDFC Equity fund re.gro. Rs.1000/- per month
4.ICICI prudencial fouced bluechip equity fund- Rs 1000/- per month
what will these funds give results to me after 15 years? what returns they gave? I want to start new SIP.
Suggest me new fund. Is Relance Pharma Fundor UTI healthcare and pharma fund good for me ?
Reply

Hi Mahesh
Your fund selection is very good. Increase your investment amount in ICICI Prudential Focused Bluechip
Equity Fund instead of looking for a new fund. You can expect around 12% annual growth if you remain
invested for a long time.
Reply

Dear Anil,
I want some information on icici life stage wealth 2 . this is ulip plan and i want to know shud i invest in it or
not for 5 year. please suggest
sumit
Reply

Hi Sumit
All ULIP products should be avoided.
Reply
255 parinita September 8, 2011 at 11:58 AM

Hi Hemant
Thanks for your response. I have gone thro the article as you advised to do.. but one thing I should openly
confess is I dont understand the technical terms used in the above article and moreover I unable to judge
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which fund is performing good. Moreover I have not been answered for the query asked in my previous mail..
Hence I again request could you please show me way how to invest a lumpsum amount in SIP , as I am keeping
the same in SB Ac. Please suggest me the fund to be invested also.
Thanks
Reply

Hi Parinita
Investments in equity mutual funds are done to meet your long term goals. Your investment horizon should be
more than five years. Systematic investment through the SIP mode is the best way.
The number of funds to be selected depends on the amount of investment. If the amount to be invested is small
select one large cap and one large and midcap fund from the list given.
If the amount of investment is more you can add one multicap fund and one mid and small cap fund.
All the funds given in the list under different categories are good.
Select only one fund from a fund house.
Reply
257 Vijay September 13, 2011 at 3:20 PM

Hi Anil,
Assuming you have 25,000 to invest in SIP, which funds will you choose for your portfolio? And why? From a
risk perspective, if it could be 65% core and 35% satellite.
Reply

Hi Vijay
Your portfolio can have these funds :
1 ICICI Prudential Focused Bluechip Equity Fund
2 UTI Opportunities Fund
3 Reliance Equity Opportunities Fund
4 HDFC Midcap Opportunities Fund
The allocation suggested by you will be fine.
Reply
259 Vijay September 13, 2011 at 7:14 PM

Thanks but if possible, would you share the rationale behind choosing these funds? This way,
readers will largely learn how to pick a fund among many other performing funds.
Reply
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Hi Vijay
All the funds are highly rated with consistent present and past performance. The portfolio is
properly diversified across category of funds and fund houses.
Based on this criteria other combinations are also possible.
Reply
261 JS September 13, 2011 at 6:51 PM

My portfolio has the following funds
ICICI Prudential Focussed Blue Chip (Rs. 6,000)
HDFC Top 200 (Rs.6,000)
Reliance Equity Opportunities (Rs.4,000)
IDFC Premier Equity (Rs.4,000)
On a scale of 1-10 (where 10 is best), how much would you rate this portfolio. If this is not 9 or above, what
would have been a better mix?
Reply

Hi JS
Your portfolio is very good as it has highly rated funds with proper diversification across category of
funds and fund houses.
Giving any rating will not be proper as investment in mutual funds is a dynamic process.The funds which
are highly rated now can lose their rating in future. The key is to keep tracking all the funds in your
portfolio and take appropriate action whenever the performance of a fund deteriorates.
Reply

Dear Anil,
I want to know your view on following
1 GSIP
2. ICICI PINACLE SUPER
kindly let me know whether above funds are good to invest for 5-7yrs or not
Regards,
Reply
2/5/2012
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Hi Sumit
One should not be investing in a product about which one does not know much. What is your understanding
about these products?
Reply

Dear Anil,
Actually i dont have much knowledge about these product. hence i want to know your suggestion. whatever
would be your view it will be important for me. i heart a mix response on these product. kindly give your
valuable suggestion
thanx and regards,
Reply
266 manjo3311 September 17, 2011 at 3:57 AM

Question pending:
Hi
I am 22 years old and just started with a job. I plan to invest 5K per month in mutual funds. Infact, I already
opened an account and made initial investments in different schemes today itself. I chose following funds:
1.) HDFC TOP 200 (1K PER MONTH) > LARGE CAP FUND
2.) HDFC EQUITY (1K PER MONTH) > MULTI-CAP FUND
3.) HDFC PRUDENCE(1K PER MONTH) > BALANCED FUND
4.) HDFC MONTHLY INCOME-LONG TERM(1K PER MONTH) > DEBT ORIENTED FUND
Now, my questions are:
1.) Is my portfolio right?
2.) 1k which is not shown above is lying pending to invest in gold. Since I donot have demat account, I cannot
buy gold etf. I was planning to invest in reliance gold fund but after reading one of your articles, I have put an
idea on hold. Kindly suggest me on how to make investment in gold then???:O
3.) Now comes the main question. In order to set up SIP with fundsindia, I am facing some problem since they
dont have tie up with my bank for auto debit (something like that). But I didnot want SIP in first place. I
rather plan to invest myself in a disciplined way every month after watching market. Now the question is :
Does it make any difference whether I invest in hdfc top 200 via SIP or myself invest every month(flexible in
this case). I mean, by investing manually every month, am I missing some of the advantages of SIP like
compounding returns, lesser maintenance charges by mutual fund house to SIP customers or anything like
that..:O
4.) Also, I need to have tax rebate. What are the best investment options for tax savings with decent returns??
Initially, I wanted to add hdfc tax saver as well but lock in period of 3 years made me stay away from that.
Kindly reply to these issues of mine. Shall be very thankful to you.
Reply
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Hi Manjo 3311
I dont understand your thought process in the selection of funds. You have selected all types of funds of
one fund house which does not make any sense. For constructing the portfolio please follow the approach
given in this post.
SIP is the best mode of investment. Time in the market and not timing the market is important.
You can invest in Reliance Gold Saving Fund if you want. But the investment in gold should be done only
after having a proper asset allocation and a good portfolio.
Reply
268 manjo3311 September 17, 2011 at 5:46 PM

You didnot really answer my questions. Yes, I read that you advised to go for different fund houses.
But why??? Are the funds I have chosen not among the best in their class?? Or you think in case
HDFC go bank rupt or burst or something like that then I may lose whole my money..What really is
the reason to diversify even among fund houses when same fund house is providing you some great
funds ???:O
Kindly, read my question regarding SIP. Its like I have to do some formalities to get SIP setup. I
may go for alert SIP and invest on say every 15th of month in a disciplined way. Would that make
any difference from people who chose auto debit???
Last question again, suggest something for tax saving(best instrument). I have heard of National
Pension Schemes which sound good but their procedure is not known to me.
Atlast, If you still beleive that my portfolio is really weird then Kindly split 5k per month into
different funds you feel are best. Thanx
Reply

Hi Manjo3311
It appears to me that you have not read the posts carefully. If you spend some time in reading
the posts you will get answers to all your questions.To understand the principles of investing
you can also take the advantage of the free course which Hemant offers.
Reply

Hi Monjo3311
You must understand that investing in mutual funds carries market risks. Diversification
across different categories of funds as well as fund houses is done to spread your investment
risk. It is also important to remember that you must not buy MF schemes based solely on their
popularity and sales.
Look at the long term record of the schemes before zeroing in.
Choose the SIP way to invest. By using this mode you do not become a host of market timing.
Do not sit tight on your portfolio after starting your SIPs. Review the performance of funds in
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your portfolio atleast once a year. Look at a funds performance against its peers and
benchmark. See if the fund has stuck to its initial objective.Exit a fund if it consistently
performs poorly based on this criteria.
Many good instruments for tax saving are available. PPF is one of them.
Equity mutual funds, balanced funds and MIPs are for different category of people with
different risk profiles. All can not form part of a portfolio.
Construct your portfolio by following the advice given in this post.
Reply

Hey Anil
Thanx for replying. So here is my scenario: I earn 32 k per month. Has decided to put
say, 5k per month in mutual funds. Since I am just 22 years old, I can take risk but there
is no as such specific goal. So kindly do one thing. Suggest me the funds and money
allocation to each fund. I am asking this since I really have no knowledge. Also, highlight
a bit on National Pension Scheme which seems good to me.
Reply

Hi Monjo3311
Before you start investing you must have proper asset allocation. Since you are only
22 you can have 22% in debt and balance in equity. Debt investment is to meet your
short term requirement and equity investment is to meet your long term goals.
Investment is never done without a defined goal. As you have asked for NPS I
believe that wealth creation for your retirement can be your goal.
As you are very young you can wait for a few years before you consider NPS. NPS is
still evolving and many changes in it are likely in near future.
You can have these funds in your portfolio :
1 ICICI Prudential Focused Bluechip Equity. Rs 3000/- per month.
2 HDFC Midcap Opportunities. Rs 1000/- per month.
3 Reliance Equity Opportunities. Rs 1000/- per month.
Reply

Hey
What really is the creteria for this selection of 3 funds?? I mean, I dont see any
debt allocation in any of these 3 funds. So, you are making me to invest 100%
in equity as of now..:O???
Kindly, justify your selection briefly.
Reply
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Hi Manjo3311
This is the portfolio for long term growth. For debt you can consider
other options like bank and post office deposits. Since debt is basically for
your short term requirements it is better to use other debt instruments
which are not volatile like equity mutual funds.
Reply

Dear Anil,
Actually i dont have much knowledge about these product. hence i want to know your suggestion. whatever
would be your view it will be important for me. i heart a mix response on these product. kindly give your
valuable suggestion
thanx and regards,
Reply
276 kkpandey September 19, 2011 at 11:38 AM

why icici pru focused bluechip fund performing poorly since last one month compared to other catagory
funds ? is it still a good fund for sip ?
Reply

Hi KKPandey
One month is not the period to judge the performance of equity mutual funds. Over a longer time frame
it is still among the top funds of its category.
Reply
278 Vijay Hegde September 19, 2011 at 6:14 PM

Dear Anil,
I just finished reading the chain and it was quite informative. Gave good perspective on the different
groupings and factors used for MF selection. One additional factor that i have considered and always track for
each of my SIP investments are how closely it follows the benchmark. I have planned to drop some
investments which have >2% behind the benchmark. Wanted to validate this approach. All these investments
are in the long term category.
My current active portfolio contains (where i keep investing in regularly but different days)
1> ICICI Pru Focused BlueChip
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2> Franklin India BlueChip

3>HDFC Top 200
4>UTI Dividend Yield
5>DSP BlackRock Small and Mid Cap Fund
6>DSP BlackRock Micro Cap Fund
Fund that I have paused investing as it has under forming for six months (HDFC Equity
Funds that I have stopped investing and planning to redeem and put in above after 1 year of investment. They
have underperformed there benchmark in all investments.
1> Reliance Regular Savings Fund-EQUITY
2>Sundaram S.M.I.L.E.Fund-Growth
Kindly let me know your views on the composition and the additional factor that I try to follow.
Regards
Vijay
Reply

Hi Vijay
It is clear that you are an informed investor. I have also repeated in my comments several times that one
must not sit tightly on the portfolio. Investing in mutual funds is a dynamic process. Hence tracking the
funds after starting investments is very important. The performance of a fund is evaluated by comparing
it with its peers and its benchmark index. I have only one issue. For the past two years even funds with a
good past track record have not given great returns. I feel that six months is a very short period to come
to a conclusion regarding the performance of a fund.
Yes I know that the performance of HDFC Equity Fund has not been good for the past ten months.If you
do not want to make additional investments it is fine but you should not exit from this fund as it has a
potential to give you good returns whenever the market turns.
Your decision regarding Reliance and Sundram funds is correct.
Your portfolio is very good. Only it is slightly risky as you have taken two funds from one fund house.
Your idea of regularly investing is good. But my suggestion is that you should also consider having SIPs
even of small amounts in these funds because it is never possible to time the markets.
Reply
280 Vijay Hegde September 20, 2011 at 9:25 AM

Thanks Anil for your kind review. On HDFC equity, I have just paused by investment to check
performance. I wont be redeeming it. If things get better will restart investment. It has a very solid
past performance and i hope it is temporary blip.
On the SIP part, I have a target amount per month to invest. I like the flexibility of investing (by
following the index movements) instead of locking via SIP and ECS. I call it more a controlled SIP
. I do agree SIP is the best way to go.
On the 2 MFs from same house, I liked the performance of the MFs and hence selected them
knowingly. If you have any suggestions for an different MF under same category kindly share your
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suggestion.
Reply

Hi Vijay
I agree with you that your method of investment gives you more flexibility. SIPs in general are
best for investors who can not devote more time and otherwise lack discipline to invest in a
systematic manner. I believe informed investors can take advantage of market corrections and
invest small lump sum amounts regularly. It does involve a lot more work.
Shortlisting of funds for your portfolio becomes difficult when you are confronted with many
good funds from the same fund house. Ultimately you have to take call. Tracking the
performance is the key to reduce risk.
Reply
282 Karen DeSouza September 19, 2011 at 6:22 PM

Hello sir,
Im Karen from Goa and Im 24yrs old.. Im interested in investing and growing my money.. I feel S.I.P is a
great way to start. How do I know which is the best S.I.P policy??
Reply

Hi Karen
Please let me know about your risk appetite, investment horizon and how much you can invest per month
to enable me to suggest the funds.
Reply

Dear Anil,
Kindly answer my questions posted on blog 257 and 259
Thanx & Regards,
Reply

Hi Sumit
You have yourself admitted that you do not have much knowledge about the products. The most fundamental
principle 0f investing is not to invest in instruments about which you do not have complete knowledge. I hope I
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have now made myself clear.

In fact I think I had answered you when you raised this question first.
Reply
286 Sandeep kumar September 21, 2011 at 12:39 PM

Dear Anil ji
i want to invest 6000 per month on sip with time period of 10 to 15 years & i made the fillowing portfolio
Kinldy review my portfolio & suggest
DSP BlackRock top 100 equity (1000)
ICICI prudential Focused Bluechip (2000)
IDFC Premier equity or HDFC MID CAP equity opportunity(1000)
kotak gold fund/Qunatum Gold saving fund (500 each)
HDFC Prudence (1000)
Reply

Hi Sandeep
Your portfolio is fine. You can not invest less than Rs 2000/- per month in IDFC Premier Equity. So
HDFC Midcap Opportunities will be OK. It will be better to merge your investment in HDFC Prudence
Fund with HDFC Midcap Opportunities as investment in two funds of the same fund house is not
desirable.
Reply

Dear Anil ji
Thnaks a lot for your valuable suggestion .
Reply

You are welcome Sandeep.
Reply
290 Ravindran S September 21, 2011 at 9:23 PM

Hi Hemanth,
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I really appreciate all your articles about investments. It was great help to people like me who has less
knowledge in benifits of investments and SIP. It would be of great help if you review my investment plan and
share your thoughts.
I am 30 now and earning 44k p/m. After the current premiums and family spendings, I manage to save 5k p/m.
I got married las year and my wife is earning 25k and she has a EMI of 5k pm and rest 20k we are investing in
Gold ETF. Expecting a new member in our family by coming Jan.
Current
1. Investing 3200 in VPF.
2. LIC Endowment Plan(Jeevan Anand coverage 5,00,000) 24k P/A
3. LIC Term Ins(Amulya Jeevan Coverage 65,00,000) Premium 24k pa
Planned to invest in the following Mutual funds for the tenure of 25 years.
1. Franklin India BlueChip Large Cap Rs.2000 SIP
2. HDFC Top 200 Growth Large & Medium Cap Rs.1000 SIP
3. HDFC Equity Multi Cap Rs.1000 SIP
4. Reliance Growth Rs.500 SIP
5. IDFC Premier Equity Rs.500 SIP (if available for this amount)
Thanks
Ravi S
Reply
291 Shamshad.M.M September 24, 2011 at 8:55 AM

Hai Ravi,
Nice to know that you Term Insurance policy,but while having a coverage of 65 lakh from that,why do
you spent another 24k for just 5 lakh coveragereally you dont need to do thatdont know what made
you think like thatinstead of that you can start a SIP on IDFC Premier Equity of 2000 /month (kindly
note that minimum amount to start SIP in IDFC Premier Equity is 2000) .
Also you can start SIP on ,Franklin India Bluechip (2000 ) ,HDFC Top 200 (2000) and Reliance Equity
Opportunities (2000 ).By that you can properly diversify your investments in Mutual Funds by having
each funds from LargeCap Funds , LargeCap & MidCap Funds , MidCap & SmallCap Funds and
MultiCap Funds . ok
Happy Investing
Reply

Hi Shamshad,
Thanks for your response. Regd the insurance, i recently started the term insurance and that is still
under processing. The other policy was sarted before 5 years. Once the term insurance is active and
complets first year, i ll withdraw from jeevan anand policy.
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Thanks,
Ravi S
Reply
293 Shamshad.M.M September 25, 2011 at 8:32 AM

good thinking dear.go ahead..all the best
Reply

Hi Ravindran S
SIP of Rs 500/- per month is not available in IDFC Premier Equity. Reliance Growth is a nonperforming
fund. It is not advisable to invest in two funds of the same fund house. For investment of Rs 5000/- per
month five funds are not needed. Just stick to these three funds.
2 Franklin India Bluechip.
3 HDFC Midcap Opportunities.
Reply

Thanks Anil. Kindly suggest me the split of 5000 for each MF suggested by you. Awaiting your
response.
Regards,
Ravi S
Reply

Hi Ravindran S
As mentioned in the above post you have to adopt core and satellite approach. First two funds
will form the core of the portfolio and and the third will be satellite. How much you allocate to
the two portions of the portfolio depends on your risk appetite. If you can take more risk you
can increase your allocation to satellite. Ratio can vary between 3:1 to 3:2.
Reply

Dear Anil Ji
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Kindly supervise the above SIP portfoilo & suggest .

Reply

Hi Sandeep
I have already given my comments above.
Reply
299 Swarup September 27, 2011 at 12:43 PM

Hi Hemant,
I am really gaining some comprehensive ideas thru ur expertise advice since last few days. Thnx a ton. My
querry is that presently i m 37 yrs of age and drawing a take home of 40k pm. My investment details is
appended1. Insurance premium 90k per annum
2. Reliance Gold ETF 2500/- pm for 36 months starting from sept 2011.
3. Home loan EMI 5000 pm
Apart from this i was unable to go for further investment in the past due to various family obligation. Now i hv
accomodated some fund provision to invest for my daughters higher education that will fall after 07 years.
Since i am a total fresher in the equity linked market, i made up a point to invest 5000 pm in Kids recurring
deposit (10% compounded quarterly-Taminand mercantile bank) for a tenure of 84 month ( approx return
may be 6.08 lacs) and the balance i may avail thru education loan. Another Rs.2000 pm in some mutual fund
for 15-20 years (figures pm may go up depending on salary increment in the future).
Request ur advice & guidance for an alternative for my kids education investment pm for 7 yrs. and also
suggest me for a suitable MF investment for 15-20 yrs.
Reply

Hi Swarup
For investment horizon of 7 years you can consider investing in some balanced fund like HDFC Balanced
Fund and for longer period in a portfolio of diversified equity mutual funds.
Reply
301 simanchal ratha September 27, 2011 at 8:17 PM

Dear Sir
From making a regular SIP all are telling HDFC MIDCAP OPP and IDFC SMALL AND MIDCAP . But is
there any wrong with RELIGARE MID N SMALL CAP FUND or DSP BLACKROCK MICROCAP FUND ?
Do more AUM has to anything on the performance of a fund ?
Reply
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Hi Simanchal Ratha
AUM is not the only consideration while selecting a mutual fund for your portfolio. For proper
diversification all funds in the portfolio have to be considered. No fund can be selected in isolation.
Reply

sir i had two queries . you seem to have answered the last one . pl answer the first one .
Reply

then should i guess AUM is one of the determinant factors for judging a good mutual fund though
not only .
Reply

Hi Simanchal Ratha
Present and past performance of the fund, fund manager, fund house, risk, portfolio
management, expenses etc are the other factors to be considered.
Reply

Hi Simanchal Ratha
There is nothing wrong with Religare and DSP BR funds. Only HDFC and IDFC funds have a higher
rating than these funds. It is better that the fund should have neither very low or very high AUM.
Reply
307 Ramesh September 28, 2011 at 1:20 AM

Hi Anil,
Currently I am investing(SIP) in the following funds.
HDFC Top200 Rs.2000 SIP
Franklin India Bluechip Fund Rs.2000 SIP
Reliance Pharma Fund Rs.2000 SIP
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I want to invest in few more MF with the period of 10 and more years. I am planning to choose below MF. Can
you please review my overall portfolio and suggest me with best MF.
DSP BlackRock Balanced Fund Rs.2000 SIP
ICICI prudential Discovery Rs.2000 SIP
IDFC Premier equity plan A Rs.2000 SIP
Quantum Long term equity fund Rs.2000 SIP
Thanks,
Ramesh
Reply

Hi Ramesh
The funds selected by you are good. But these will form satellite portion of your portfolio. With this allocation
your investment will be more in satellite and less in core which will make your portfolio very risky. Instead of
investing Rs 2000/- per month in each fund it will be better if you invest more in core and less in satellite. You
can also consider replacing ICICI Prudential Discovery with ICICI Prudential Focused Bluechip Equity.
Reply
309 Dr. Kousik Chakraborty September 28, 2011 at 9:10 PM

Hi Anil
I have seleced 3 fund to invest through SIP route. My investment horizon is above 5 year. choice of funds are
1. DSP BR TOP 100- 1000/month
2. HDFC Equity- 1000/month
3. HDFC midcap opportunity-1000/month
requires kind suggestion.
Thanks in advance
Reply

Hi Dr. Kaushik Chakraborty
You can consider replacing HDFC Equity with ICICI Prudential Focused Bluechip Equity for better
diversification across fund houses.
Reply
311 Ramesh September 28, 2011 at 10:16 PM

Hi Anil,
Thank you for valuable suggestions. I am restructuring my portfolio with more core and less satellite fund
investment. Let have a look and suggest if it needs any change. I am also planning invest in gold ETF, which
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one is good for gold ETF investment.

HDFC Top200 Rs.3000 SIP
Franklin India Bluechip Fund Rs.3000 SIP
Reliance Pharma Fund Rs.2000 SIP
DSP BlackRock Balanced Fund Rs.1000 SIP
ICICI Prudential Focused Bluechip Equity Rs.3000 SIP
IDFC Premier Equity Plan A Rs.1000 SIP
Quantum Long Term Equity Fund Rs.1000 SIP
Thanks,
Ramesh
Reply

Hi Ramesh
You can not invest less than Rs 2000/- per month in IDFC Premier Equity. So you can consider exiting
DSP BR Balanced Fund and increasing your investment in IDFC Premier Equity to Rs 2000/- per month.
Reply
313 Indu Narulla October 1, 2011 at 9:05 PM

Thnks for all ur valuable information.
ICICI Prudential Focussed 3000/Bluechip Equity
HDFC Midcap 2000/Reliance Equity -1000/I am considering to start three sips for my son age 22yrs for 10 -15 yes tenure. I want to know is this the right
folio. as i am new to financial planning.
For me HDFC Top 200 3000/- per month.
should I invest in Gold ETF.
Thanks in advance.
Indu Narulla
Reply
314 ANIL KUMAR KAPILA October 2, 2011 at 1:52 PM

Hi Indu
What is your goal for investing for your 22years old son? What is he doing?
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Without knowing your goal it is difficult to comment regarding Gold ETF.

All the funds selected by you are good.
Reply
315 Indu Narulla October 2, 2011 at 5:08 PM

Hi Anil
Thanks a lot.
He is Real Estate Consultant and designing his youth portal also.
Initially investment amount is 6000/- per month for long term say minimum 10 years. Can you please suggest
how to split this amount in three funds or any other valuable advice for his financial portfolio.
Regarding insurance should he require any Life insurance plan right now or start with SIP only as he has
Health insurance cover of 2 Lakh started this month only and he is unmarried.
Thanks
Indu Narula
Reply

Hi Indu
I do not know the financial status of your son. As he is not married and does not have any dependents he
will not require any life insurance. When he gets married and has dependents then he will definitely need
life insurance. The amount of insurance will depend on his income and savings. He should also be
encouraged to save and do his own financial planning.
You must understand that investments in equity mutual funds are subject to market risk. Your selection
of funds will depend on your risk appetite. Presently you have 50% in core and 50% in satellite. If you
can take risk then it is fine. If you can not take more risk then you can consider some balanced fund like
HDFC Balanced Fund.
Reply
317 Deb October 3, 2011 at 11:11 PM

Hi Anil,
Need your valuable advise here
I am 35 years with a housewife and 3 years daughter.
I have taken the following plans since 4 years and the payment mentioned are annually.
1. LIC Jeevan Anand 16000
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2. HDFC Pension plan 25000 ulip

3.Birla Sun life dream plan 22000 ulip
4.Icici life time gold 23000 ulip
5. PPF 5000 per month.
I need your suggestion to rebuild my portfolio.
Which of the above plan should i remove and remain?
what are the suitable mutual fund i need to investment?
Please help!
Reply

Hi Deb
Insurance and investment should never be mixed. For insurance go for term insurance and for long term
wealth creation invest in diversified equity mutual funds. ULIPs are good only for agents and manufacturers
who make a lot of money. I know that by exiting from ULIPs now you will lose money but persisting with them
does not make any sense.
You can consider these mutual funds for your portfolio :
2 UTI Opportunities Fund.
3 HDFC Midcap Opportunities.
4 Reliance Equity Opportunities.
Reply

Thanks Anil for your suggestion.
Could you please advice for the following.
1. Which term insurance should i take?
2.How much should I invest and how long is preferable for the above suggested mutual funds ?
3.should I invest some more mutual funds, if yes , please help me to know them.
4. should I continue LIC jeevan Anand ?
5. should i reduce the amount investment and increase in the euity div fund?
6. Which Health Insurance suitable for me and my family?
Reply
320 ANIL KUMAR KAPILA October 5, 2011 at 6:30 AM

Hi Deb
Your income, expenses, savings, dependents, risk appetite are some of the factors to be considered for
making these decisions.The first important thing is to have proper asset allocation. Keep 30% in debt like
bank and post office deposits, 10% in gold and 60% in diversified equity mutual funds.
Debt is to meet your short term requirements. Investment in equity mutual funds is to meet your long
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term goals like daughters education and marriage and your retirement.
Reply
321 Prasanta October 6, 2011 at 2:12 AM

Dear Anil,
I have taken the following plans (SIP) from last month & the payment mentioned are Monthly:
1. DSP BlackRock Small And Mid Cap Fund Growth 1000
2. HDFC Mid-Cap Opportunities Fund Growth 1500
3. ICICI Prudential Discovery Fund Growth 1000
4. IDFC Small and Midcap Equity Fund Growth 1000
5. SBI Magnum Sector Funds Umbrella Emerging Business Growth 1500
I need your suggestion. Please suggest.
Thanks
Prasanta
Reply
322 Prasanta October 7, 2011 at 1:36 AM

Waiting for your advice. Please do let me know should I go for modify any of my fund plan and also pls
suggest for new good plans for long term say for 3-5 year. Thanks.
Reply

Hello Prasanta,
If you n Anil dont mind then I would like to answer your question. All the funds that you have
taken are hugely risky n come in the small n midcap category. You definitely need to rethink on
your portfolio strategy as u need to add some large funds to diversify your portfolio.
As the fund houses u have selected are very good u should not have any worries to switch ur funds
in the same fund house..
Instead of having HDFC midcap opportunities..switch to HDFC Top 200 which is a large cap
fund..n go with ICICI focussed bluechip instead of ICICI discovery fund.. DSP BR small n mid cap
fund is a very good fund..but since u already have IDFC small n mid cap fund..switch to DSP BR
top 100 fund instead of DSP BR small n mid cap fund.. To better your portfolio..u can switch to
IDFC Premier Equity from IDFC small n mid cap fund in the future if you can increase investment
by RS. 1000 more..
And I dont think you need to have SBI emerging business fund in your portfolio after having the
above mentioned funds..
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Reply

Hi Prasantha
Investment in diversified equity mutual funds is done for your long term goals where the investment
horizon is more than five years. Thee to five years comes under medium term for which you can
consider some balanced fund like HDFC Balanced.
Reply

Hi Prasanta
The funds selected by you are good but the portfolio is very risky as it does not have any core which
consists of large cap and large and midcap funds.
Reply
326 sumit October 6, 2011 at 6:06 PM

Dear Anil,
I have recently started in mutual fund through sip (MONTHLY).My investment in mutual fund is like this ,
kindly provide your valuable suggestion about my portfolio
DSP(BR, small and mid cap)(G) = 1000
HDFC mid cap opportunity(G) = 1000
IDFC premier eq. A(G)= 2000
Reliance equity opportunity = 1000
SBI magnum tax gain (G) = 1000
LIC jeevan saral RD = 1000
I M INVESTING MONTHLY in above sectors
Now i want your advice whether i am investing on the right track or not if not then which fund i have to stop
investing and and let me know what are others goods fund s where i can start investing.
ARE core banking sectors funds are good at this point or not? because all above are diversified funds
thanx and regards
sumit
Reply

Hi Sumit
The funds selected by you are good but they form the satellite portion of your portfolio. Core of your
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portfolio which consists of large cap and large and midcap funds is missing. This makes your portfolio
very risky.
Reply

Dear Anil,
Many thanks for guiding me.
currently here my details income around 60k per month
expenses 15k + 15k (personal loan more 2 years to go)
dependant 100% dependant ( wife, daughter ) + 20% others
risk appetite basically my daughter marriage , education , my retirement and job security!
kindly please advice on my above requests posted on oct 3 and oct 4.
thanks in advance.
Reply

Hi Deb
Keep Rs 2 lacs in bank fixed deposit as emergency fund. Have term insurance for Rs 75 lacs. Construct
three portfolios for your long term goals using diversified equity funds already suggested.
Reply
330 Prasanta October 7, 2011 at 8:21 PM

Great help. Thanks a lot to Manoj & Anil. Need to check with ICICIDirect for switching option. I will go for 1. HDFC Top 200 1500/2. DSP BR top 100 1500/3. ICICI focussed bluechip 1500/4. IDFC small n mid cap 2000/5. IDFC Premier Equity Plan A 1500/6. ICICI Prudential Focused Bluechip 2000/I want to invest 10,000/- as a SIP on MF. Could you please suggest how should I go. As I am new to this line,
should I keep only 2/3 funds as suggested by some of the CNBC people. Please help. Thanks.
Reply

Hi Prasanta
You have mentioned ICICI Prudential Focused Bluechip Equity twice. In IDFC Premier Equity you can not
invest less than Rs 2000/- per month. Keep only one fund from IDFC fund house and replace other with
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Reliance Equity Opportunities. Five funds will be fine.

Reply
332 Sandeep October 11, 2011 at 5:05 PM

Dear sir,
I am 37 years old. Now I am investing in SIP like as HDFC Mid cap opportunity, , HDFC Top 200, UTI master
value, UTI dividend yield, ICICI prudential discovery, TATA equity P/E, IDFC premier equity and HDFC
preudence fund with Rs. 4000 to 5000 PM. In additional to this I have taken MF single value like as L&T
Infrastructure, DSP BR Top 100 equity, Birla sun life Mid cap. This all are started just 09-10 months back. All
investments are planned for 10 to 15 years for child education i.e. 30 lacs after 10 yrs and 30 lacs after 15 yrs
and 2 cr after 23 year (retirement).
Shall this investment is sufficient for my future planning ? Is this MF is okay ? Shall i switch to other MF /
Increase / decrease invetement ?
Reply

Hi Sandeep
You have invested in eleven funds which does not make any sense. Moreover you have picked up more
than one fund from a fund house which makes your portfolio very risky. Some of the funds in your
portfolio are nonperforming.
With the portfolio you have it is not possible to predict whether you will be able to meet your goals or
not.
Normally you should have around four to five funds based on core and satellite approach. You should try
to save as much as you can and invest systematically only in the funds selected for your portfolio. More
funds should not be added.
Reply
334 Sandeep October 12, 2011 at 11:57 AM

Dear Anil,
Thanks for giving me an eye opening information. All MF are started just 09-10 mnths back and
now all are performing not good.
Kindly give me the list of MF which I should continue and which MF should replace with other good
performing funds?
I can invest comfortably 30,000 PM in SIP. Please guide me to select good funds and investment per
fund to achieve my near to my goal.
Please help to guide me for the same.
Reply
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Hi Sandeep
You can consider the following funds for your portfolio :
2 UTI Dividend Yield Fund.
3 HDFC Midcap Opportunities Fund.
4 Reliance Equity Opportunities Fund.
Follow core and satellite approach. I think four funds are good enough. If you are keen to add
more funds then you can consider DSPBR and IDFC funds suggested by Manoj.
Investment in equity mutual funds is a dynamic process. Dont sit tight on your portfolio.
Monitor the performance of all funds in your portfolio once a year so that you can get out of
nonperforming funds before it is too late.
Reply

Hello Sandeep,
I u and Anill dont mind then I would like to give u my opinion.. When u are investing a large amount like
30000 per month then it is advisable to have more amount in Large cap funds and Balanced fund n the
remaining in small n mid cap funds. According to me u should continue with Prudence fund as it is a balanced
fund it will keep your portfolio in control during the volatile market conditions. So invest at least Rs. 8000 in
HDFC Prudence fund. ICICI Discovery fund is a risky fund n instead of that u can switch to ICICI focused
bluechip which is a large cap fund. Continue with IDFC Premier equity with 4000 5000 per month. You can
also continue with UTI Dividend yeild n I think u should exit with UTI master value..so that ur portfolio does
not become risky. If possible have a multicap fund like reliance equity opportunities fund.. so I divide ur
portfolio in this way..
1) HDFC Prudence fund 8000/2) DSP BR top 100 5000/3) UTI Dividend yeild 5000/4) IDFC Premier Equity 5000/5) Tata P/E equity 4000/6) Reliance equity opportunities 3000/As Anil said earlier..u should not invest in more than one fund in the same fund house.. U should have proper
company diversification along with fund category diversification whether its large cap, midcap , small cap or
balanced fund..
Reply

Dear Manoj and Anil,
Thanks Manoj and Anil for proper guiding me. Now, UTI master value fund is going on negative. Shall I
wait for positive trend to come out from this fund? Is it possible to transfer from ICICI discovry fund to
ICICI prudential focused bluechip equity?
Reply
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Hi Sandeep,
ur welcome.. My personal opinion on this would be to stop investing in UTI master value fund..And
when the market improves u can take out your invested amount from that fund.
yes it is possible to switch from ICICI discovry fund to ICICI prudential focused bluechip
equity.You can do this procedure from ICICI mutual fund office or from the CAMS..(depends on
where u hv purchased this fund.)
Reply

Dear Manoj
Thanks!
Reply
340 Ashwin October 12, 2011 at 1:57 PM

Hi Anil,
I did went through the complete post and various comments made to it. I am 33 years old and do not have any
liabilities of loans etc. I live in my parents home in delhi. I have one year son. I want to do investment for my
son future and my retirement. I can be moderately aggresive and see a horizon of 10-15 years for investment. I
currently have following invsetment for myself:
1. PPF: 70,000 per annum
2. LIC: 44,020 per annum
3. Following Mutual Funds Investments 13,000/month
1. FRANKLIN INDIA BLUCHIP (G) 2,000
2. FIDELITY EQUITY (G) 2,000
3. DSP BLACK ROCK TOP 100 EQUITY REG (G) 1,000
4. HDFC TOP 200 (G) 3000
5. IDFC Premier Equity Plan A (G) 2,500
6. HDFC Tax Saver(G) 1,500 (Discontinue after Mar 2011)
7. HDFC Prudence (G) 1,000
I am looking to invest 2,000 more per month. Please suggest how/where should I increase the amount or your
comments on my mutual fund portfolio.
I also want advice for my wife who is working with annual salary of 4,00,000. She has following investements:
1. PPF: 70,000
2. LIC: 12, 500
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I have prepared following mutual funds for her MF portfolio. Please provide your suggestions:
1. ICICI PRUDENTIAL FOCUSED BLUECHIP EQUITY REGULAR (G) 2,000
2. FRANKLIN INDIA BLUCHIP (G) 1,000
3. FIDELITY EQUITY (G) 2,000
1. HDFC MID CAP OPPORTUNITIES 1,000
2. UTI DIVIDEND YIELD (LM) 1,000
1. QUANTUM LONG TERM EQUITY FUND [1,000]
2. HDFC EQUITY [1,000]
Thanks for writing such a wonderful post and providing your comments to other user queries.
Regards,
Ashwin
Reply

Sorry for mistake in my earlier post,
I will discontinue HDFC Tax Saver(G) 1,500 after March 2012 when DTC comes into effect.
Regards,
Ashwin
Reply

Hi Ashwin
Your fund selection is very good. However there is no need to go for more than five funds. While selecting
funds for your wife please ensure that only one fund is selected from each fund house. You and your wife
both can have similar portfolios.
Reply

Thanks Anil for your reply. As mentioned in my query, I would discontinue HDFC Tax Saver after Mar 2012
or may be earlier. So, that leaves Rs 1500 + Rs 2000(that i want to invest more)= Rs3500. I would like to invest
these in some good fund but not able to zero out on any. Please suggest in which of my continuing one or more
fund I can increase the contribution, given my time horizon of 5-10 years.
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Do you find my current portfolio better or the one I am thinking of for my wife? Reason I am asking is that I
want to invest her money in best possible manner with best possible returns. If there is any scope of
improvement in my portfolio, I would like to amend those while continuing with my funds.
Regards,
Ashwin
Reply

Hi Ashwin
You can add ICICI Prudential Focused Bluechip Equity to your portfolio and invest the additional
amount in it. When you exit HDFC Tax Saver that amount can also go in this fund. To reduce the
number of funds in your portfolio you can consider consolidation by merging your investments in HDFC
Top 200 Fund and HDFC Prudence fund and keeping only one of these funds.
The portfolio constructed by you for your wife is fine. Just replace HDFC Equity with Reliance Equity
Opportunities Fund to have diversification across fund houses.
Reply

Thanks Anil for your time and guidance.
Regards,
Ashwin
Reply

Hello Ashwin,
As Anil mentioned earlier that your fund selection is very good..You dont have to do any major changes with
your portfolio..Just increase the amount in one of those funds..My personal opinion is that you should increase
investment in IDFC Premier equity as this is the only small n mid cap fund in you portfolio while other funds
are large cap oriented funds..or else increase the amount by 1000 in Fidelity equity fund and switch from DSP
BR top 100 to DSP BR small n midcap fund which will diversify ur portfolio even better.
Reply
347 ajith October 15, 2011 at 1:20 PM

Dear sir , I am AJITH 29years-income Rs.300000/annum (my income will grow by 10-15% every year.) Have
SIPS of Rs 2000 each in SBI gold fund, HDFC top 200, IDFC premier EQUITY & BIRLA SL dividend YIELD
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for 2 months(all growth OPTIONS). I will continue my SIPS for 25-35 years.
(have sufficient insurance-TERM,health,critical ILLNESS & accident). Saves additional Rs 8000 per month
for short term GOALS
Will marry in 1 year & have separate fund for this
money from MUTUAL FUNDS will be used for . (1) buying home for 20lakhs in ten years. (2)
CHILDRENS education & marriage (3) RETIREMENT @ 65YEARS . Will increase SIP in HDFC T200 to
4000 next year & increase all SIPS by 20% annually. Looking forward to join one more SIP Rs 2000 in a
LARGE CAP fund (UTI DIVIDENT YIELD). Will join a tax saver MF next year.(not interested in shares) .
Please give your valuable suggestions on my portfolio is it well diversified is it ok to have 2 dividend yield
funds please guide.
Reply
348 Purvesh October 18, 2011 at 5:39 PM

Hi Ajith
Your portfolio looks good but for your information ELSS is not applicable for tax saving(80c) purpose
from next year.
-Purvesh
Reply

Hi Ajith
You can add ICICI Prudential Focused Bluechip Equity and Reliance Equity Opportunities Fund to your
portfolio and make your additional investments in these funds.
Reply
350 arpit October 18, 2011 at 10:38 AM

hi,
i want to invest 7k per month.let me guide
Reply

Hi Arpit
You have not mentioned about the purpose of your investment and your time horizon.
Reply
352 pankaj sharma October 19, 2011 at 11:22 AM
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hi anil,
I am investing in mutual funds through SIPs , my investment plan is 7 years to achieve goal and that is to fetch
amount of 15 lacs in 7 years, now i want to know whether i am on right track or not in order to get the said
amount in 7 years, please guide me and suggest me if this need any amendments in my funds
here my asset allocation.
ALL investments are monthly
DSP BR(mid and small cap )= 1000
RELIANCE EQ.OPP.(G) = 1000
IDFC PREMIER EQUITY PLAN (A)(G) = 2000
HDFC MID CAP OPP. (G) = 1000
SBI MAGNUM TAX GAIN(G) = 1000
JEEVAN SARAL (RD SCHEME) = 1020
planning to go for icici pr.focussed blue chip = 2000 after discontinue of sbi mag. in next month to include core
funds to get stability
PLEASE also let me are above funds are good or not to receive amount of 15 lac in 7 years
thanx and regards,
pankaj
Reply
353 Purvesh October 21, 2011 at 8:12 PM

Hi Pankaj,
Looks like you are investing for some plan you have. Anyway what it looks like if you invest 7000/- per
month in SIP and want to have return of 15 Lac in 7 years, your portfolio should give you return of 25 %
CAGR. Now that is far fetched for 7 years time frame you have. You can plan by assuming 12-15%
CAGR and not 25. If your Jeeavn Saral policy complete 10 years you can withdraw your money that will
be amounting to 2 lac (considering 8% cagr). So increase your SIP by assuming 15% CAGR. Happy
investing.
-Purvesh
Reply

Hi Pankaj
All the funds selected by you are good but you have selected funds only for satellite portion of your portfolio.
The core of your portfolio is missing which makes your portfolio very risky. It is good that you have decided to
invest in ICICI Prudential Focused Bluechip Equity. You can also add one large and midcap fund to your
portfolio.
Reply
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355 Munish Singh October 21, 2011 at 4:40 PM

Hi Anil /Hemant,
I read your all the article . One question as we all know that there are lots of ups & downs in the life . Suppose
if a person has started a SIP for 5yrs duration and he has completed his 3 yrs in the SIP after that, if he do not
want to continue in the investment just leave the money to grow will it possible in the SIP and when he has
some extra money can he invest in the same SIP folio after 2/3 yrs . I think you can better understand what
exactly my concern is. Because some time nothing gone in that way which we plan to invest regularly .
Regards,
munish Singh
Reply

Hi Munish
Yes, you can do that.
Reply
357 Akash Deep October 25, 2011 at 6:54 PM

Dear Anil,
I am new to invest amount in the Mutual Fund. After viewing your site , i got some idea & planned to invest in
below funds for long period around 15 Yrs. Please provide your valuble suggestion about this portfolio.
Equity Large Cap Mutual Funds 2000
ICICI Prudential Focused Bluechip Equity 1000
DSP BlackRock Top 100 Equity 1000
Equity Large and Midcap Mutual Funds2000
HDFC Top 200 1000
Fidelity India Growth 1000
Equity Multi Cap Mutual Funds 3000
Reliance Equity Opportunities [1,000]
IDFC Premier Equity [2,000]
Regards,
Akash
Reply
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Hi Akash
Your fund selection is fine.
Reply
359 Akash Deep October 28, 2011 at 1:45 PM

Thanks Anil for you valuable suggestions.
Reply
360 Ankur Sinha October 28, 2011 at 3:15 PM

Dear Anil/Hemant
I am also planning to start SIP for long term 16 years and onwards..
I have chosen all large CAP, one multi Cap and one gold ETF, Pls suggest weather its a good Idea or do I have
to add some Mid Cap and Small cap also ?
Equity Large Cap Mutual Funds:
ICICI Prudential Focused Bluechip Equity 3000
DSP BlackRock Top 100 Equity 3000
Franklin India Bluechip 5000
Equity Large and Midcap Mutual Funds:
HDFC Top 200 5000
Goldman Bees Gold ETF, 1 unit (2700/-) every month with Angel Broking , brokerage is .03 for delivery.
Reply

Hi Ankur
Your fund selection is good. Mid and small cap funds are generally riskier than Large cap funds but they
have potential to give higher returns. For long term you can definitely go for Mid and Small cap funds.
Reply
362 Yamini October 28, 2011 at 6:40 PM

Hi,
Seeking some good advice from you guys, since you are very experienced in this field.
I am 26, recent marriage, me and my hubby (age 27) purchased two different properties before marriage. At
that time it was an individual choice and provided a good investment and security. Now we have two home
loans, but easily manageable, since no liabilities or dependents.
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Our monthly income (both working) = 1,20,000

Monthly EMI = 60,000 approx. (2 home loans 25 lacs each 1 fixed and 1 floating+ 1 edu loan of hubby,
approx. 3 lacs)
Monthly Spending = 25,000-30,000 approx.
Remaining Amt = 30,000 (where should we invest this sum?)
Please guide me how to and where should we invest this sum for short term and long team gains ? Our
priority/ goal is to pre-pay the loans asap.
Reply

Hi Yamini
For short term invest in debt and for long term invest in diversified equity mutual funds.
Reply
364 Deepak Rao October 28, 2011 at 8:33 PM

Hello Sir,
I am 30 yrs old.I am new to yr website-have started reading yr articles very recently and have found very
informative.
I have just finished my family liabilities and now have some space money-wise.I have decided to invest in MFs
thru sip n thats why going thru one of yr old articlebest MF for sipi am posting this query so late.
# I am having a near future goal of aggregating about 15-20 lacs in a period of 2-3 yrs for making the downpayment for my house.
# I can save about 50,000 p.m. in MFs for that.
# I recently met a financial planner and he suggested me a 60%(that is 30,000) in equity MFs and 40%(that is
20,000) in debt liquid-funds.
# For equity funds he suggested me 1. Franklin blue chip-10,000
2.HDFC equity-10,000
3.Franklin prima plus-10,000
Sir, I am very new to all this and feel very confused about weather i should go as per his advise considering the
small time frame that i have set for my goal and weather the funds advised by him are correct or should i
choose some other funds?
Kindly throw some light on my problem and guide as you are guiding so many readers of this site.
I shall be truly obliged.
(p.s. sorry for posting my query on this blog so late but as i said, i have recently started following this blog.)
Reply

Hi Deepak Rao
Investment in equity mutual funds is done to meet your long term goals. Since your investment horizon is
only two to three years you should not be investing in equity mutual funds as in the short term there is
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potential to lose money. Invest only in debt for your short term goals.
Reply

Hi Anil,
First of all thanks for all your helpful advice.
I am planning to start investing in Goldman BEES gold ETF through my broker Angel Broking.
They are giving me delivery brokerage of .03 or 30 paisa in delivery.
which will come some where Rs7.5/- for 1 unit = 2500/Is this brokerage OK or i should negotiate with some other broker ?
Thanks
Ankur
Reply

Any Idea ? Can we invest or when it will start ?
IDFC Mutual Fund has announced that units of IDFC Premier Equity Fund, shall not accept further
lumpsum subscriptions at the end of business hours on 16 May 2011. It will continue to accept SIPs /STPs
amount upto Rs 10 lakhs per installment.
Reply
368 ajith October 30, 2011 at 10:07 PM

Dear sir , I am AJITH 29years
Have SIPS of Rs 2000 each in SBI gold fund, HDFC top 200, IDFC premier EQUITY & BIRLA SL dividend
YIELD
. Looking forward to join one more SIP Rs 2000 in a LARGE CAP fund .out of UTI DIVIDENT YIELD and
ICICI foccussed blue chip which one should i select. should i add more funds.. is it well balanced & diversified
for a ten year investment plan please give your valuable comments.
Reply

Hi Ajith
All the funds selected by are good. You can consider ICICI Prudential Focused Bluechip Equity and
Reliance Equity Opportunities for additional investment. With this your portfolio will be well balanced
and diversified.
Reply
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370 pankaj sharma October 31, 2011 at 6:37 PM

Dear Anilbhai.
I want to invest 25ooo lumpsum amount in equity diversified funds, i have selected HDFC EQUITY AND
HDFC TOP 200. which i should consider between the two kindly give your advice
regards,
pankaj
Reply
371 ANIL KUMAR KAPILA November 1, 2011 at 5:26 AM

Hi Pankaj
In order to spread your risk I would suggest that you divide the amount among the following funds.
1 ICICI Prudential Focused Bluechip Equity
2 UTI Opportunities
3 HDFC Midcap Opportunities
Reply
372 pankaj sharma November 1, 2011 at 8:37 AM

thanx anil..
Reply
373 Deb November 7, 2011 at 9:29 PM

Hi Anil,
The Reliance Equity Opportunities has been considered as Equity-Multicap fund.
But now i see in valueresearchonline website, it included in Equity-Mid and small cap fund.
Could you please clarify it.
Reply

Hi Deb
As per Value Research definition :
Multi Cap : Funds with 40 to 60 % of assets in large cap companies.
Mid and Small Cap : Funds with atleast 60 % of assets in mid and small cap companies.
So you see that if a fund has around 60 % of its assets in mid and small cap companies it can come in
either of the two classifications.
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Since the market cap of the funds can change over a period of time it is quite possible that funds can
change their categories over time. Hence a period of three years is taken to check the category of fund.
If you check the list of top rated funds in Mutual Fund Insight you will notice that Reliance Equity
Opportunities Fund has been mentined as a five star rating fund in Multi Cap category.
Reply
375 Siva Kumar November 7, 2011 at 11:39 PM

Hi Anil,
Thanks for posting your valuable article on SIP investments and their benefits.
I am new to Mutual Fund and read the article from top,i would like to invest Rs.3000 for long term
investment,so selected the below portfolio
Icici Pru focused Blue chip Rs.1000
Hdfc top 200 Rs.1000
confused between: ( Rs.1000)
Canara rebeco equity
or
DSP BR equity
I know i am missing out on mutli-cap and mid & small cap, please suggest
also icici focused blue havent completed 5 yrs, where as Franklin India blue chip, DSP BR Top 100 has past
10,7 years exp with great record.
Do you consider icici will be good in coming years.
Thanks in advance.
Reply

Hi Siva
You can have ICICI Prudential Focused Bluechip Equity, HDFC Top 200 and Reliance Equity
Opportunities in your portfolio.
Presently ICICI fund is the top performing fund in its category. Keep tracking the performance of funds
in your portfolio after starting investments.
Reply
377 Deb November 8, 2011 at 10:05 PM

Thanks Anil for your clarification.
However I could not see the Reliance equity opprtunites in multicap fund in web. It is in mid and small cap
now.
Should we choose one out of this two(hfdc midcap opprtunities or reliance equity opprt) and one from
multicap group?
or we can remain invest on both of them?
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Please advice.
Reply

Hi Deb
To have proper diversification you can select one fund from each of the categories large cap, large and
midcap, mid and small cap and multicap. Allocation among different categories will depend on your risk
appetite. For a conservative portfolio have more allocation in core and for an aggessive portfolio have
more allocation in satellite. You can invest in both HDFC Midcap opportunities and Reliance Equity
opportunities. However, please keep tracking all funds in your portfolio.
Reply
379 Cyril November 9, 2011 at 2:38 PM

Hi Anil and Hemant,
Thank you for the nice articles on your site. I was wanting to invest INR 10000 every month in mutual funds. I
was advised by the bank to invest in the following schemes.
ICICI Prudential Focused Bluechip Growth (INR 5000)
IDFC Premier Equity Fund Growth (INR 5000)
I have opted for 2 years. They said I can extend the time period at the end if needed. Is it so? Will I be able to
do that?
Have I made the right choice? Please do let me know. Are there possibilities I can get good returns in the next
few years?
Thanks and Regards,
Cyril
Reply
380 ANIL KUMAR KAPILA November 9, 2011 at 7:56 PM

Hi Cyril
Investment in equity mutual funds is done when your investment horizon is more than five years. In the short
term you will see a lot of volatility but you can expect decent returns in the long term. You can consider one
large and midcap fund and one multicap fund also for your portfolio. Yes, you will be able to extend the
duration of your SIP after two years.
Reply
381 Cyril November 10, 2011 at 9:51 AM

Thank you for your immediate response Anil. I have already started investment just 2 days back and
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came across your Web site yesterday. So do you mean to say I should have invested in multicap too or I
can start a multicap investment of INR 2000 after a few months?
I actually do not know the difference between different equity funds or mutual funds. I just did what the
bank advised me to. So have I made the right choice? Can you share a URL here where I can learn the
difference between different kinds of equity funds? What do you suggest for short term returns, say
investing INR 2000 for another 2-3 years.
Will be thankful if you could respond.
Regards,
Cyril
Reply

Hi Cyril
My suggestion to you is that you must not follow blindly the advice of any one in your financial
matters whether bank employee or mutual fund agent. It is advisable to acquire financial literacy
which is the aim of this blog. Hence you must go through various posts of Hemant.
You must understand that investment in equity mutual funds is subject to market risks. To spread
your risk it is better to diversify your portfolio by investing in three to four funds of different types
of different fund houses.
For the short term you should invest in debt like bank or post office deposits.
Reply
383 Cyril November 10, 2011 at 11:45 AM

So you mean to say I gotta stop my investment and re-invest again or something?
But even according to your blogs, ICICI Prudential Focused Bluechip Growth and IDFC
Premier Equity Fund Growth are good funds right.
Reply

Hi Cyril
No, I dont mean that you have to stop your investment.
Both the funds selected by you are good and you can continue your investment in these
funds.
I am only highlighting the importance of diversification to spread your risk. Whenever
you have additional funds available for investment you can add one or two more funds of
other categories.
Please keep tracking the performance of your funds.
Reply
385 Mihir Vora November 10, 2011 at 10:11 PM
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Hi Hemant,
Hope you are doing good..
Can you please advise me whether i should continue my SIP in ELSS Brila sunlife tax relief 96 (century sip) i
have completed my 3 years in lock in period..
Reply

Hi Mihir
You can exit from Birla Sunlife Tax Relief as better options like Canara Robeco Equity Tax Saver are
available.
Reply
387 subhas November 13, 2011 at 1:35 AM

Hi Anil and Hemant,
I require your precious suggestion.
I made a mistake that I invested in ULIP.
I purchased AVIVA Save Gurad policy through ABM AMRO (RBS now) and after 4 year they are saying,
there would be 56 % on First Year Premium and 12 % on renewal charges.
These are very heavy charges and not told by representative at the time of offer.
question_1 :- Right now i am not sure whether i should continue or surrender by paying the heavy charges..
please advise..
question_2 :-If I will continue without any premium after 3 yrs locking period up to maturity , should I get full
amount after maturity?
Thanks
Subhas
Reply
388 subhas November 13, 2011 at 6:26 PM

Hi Anil and Hemant,
I had taken AVIVA Save Guard ULIP policy. I am paying Rs 24,000/ yearly, I have completed 4 years. If I
want surrender my policy Im getting only 65,000 with a loss of 31,000
I do not want to pay further premiums, so could you please give your valuable suggestion how many years I
should hold the policy (without paying any premium) so that I will get my total amount of investment without
any loss.
Thanks
2/5/2012
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subhas
Reply

Hi Subhash
It is good to know that you have realized your mistake. I hope you have learnt your lesson and in future
you will resist the temptation of investing on the advice of relationship manager of your bank. Since you
have made the mistake you will have to live with some losses. Nobody can tell you for sure about the time
you will have to wait to minimize your losses. You have to just wait and watch.
Reply
390 subhas November 13, 2011 at 6:33 PM

Hi Anil and Hemant,
Please give me your suggestion.
Thanks
subhas
Reply
391 RAJ November 15, 2011 at 3:23 PM

hi,
i am RAJ 23yr old.just one year before i started my career in soft company.
my salary is 24k per month..so i planned to invest 10k(per month) for 10 years in sip.
so shall i go with 2 large cap and 2 large & mid cap or one in large cap,
one in large & mid cap, one in multi cap and one in small & mid cap.and i
have selected few funds according to these categories.
large>ICICI Pru Focused Bluechip Eqty (G),DSPBR Top 100 Equity Reg,Franklin India Bluechip
large @ mid>HDFC Top 200,Birla Sun Life Frontline Equity,Fidelity Equity Fund (G),,Fidelity India
Growth Fund (G),UTI Opportunities,UTI Dividend Yield
multi>Quantum Long Term Equity,HDFC Equity,DSPBR Equity
small and mid>IDFC Premier Equity Fund,ING Dividend Yield,BSL Dividend Yield Plus-G
i m very much confused about it..so give me a suggestion plz..
Reply
392 Purvesh November 15, 2011 at 8:19 PM

Hi Raj,
Dont get confused, there are many funds in market so be wise and simple in investing . Age and thus
Time is on your side. Follow slightly aggressive approach by selecting 1 large cap(ICICI Pru focused
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bluechip), 1 large and mid (HDFC Top200)or multi cap(HDFC equity), and 1 small and midcap(IDFC
Premier Equity).
Track your portfolio performance one a year. Happy investing.
-Purvesh
Reply
393 Vivek L November 16, 2011 at 11:59 AM

thank you purvesh.but i planned to invest in 4 funds..u said for oly 2 funds..for that wat i hav to
do?..i m waiting for ur reply
Reply

Hi Vivek
You can consider these funds :
1 ICICI Prudential Focused Bluechip Equity
2 UTI Opportunities Fund
3 HDFC Midcap Opportunities
Reply

Hi vivek
I suggested 4 funds only. However you can choose funds yourself by going through
valueresearchonline.com and find funds according to their category, choose 4 or 5 star funds
from the list. It is important to know in which fund you are investing and how fund has
performed through qualitative ratings given by valueresearch portal. Their ratings change by
time according to fund performance so you also track your portfolio once a year.
-Purvesh
Reply
396 vivek November 17, 2011 at 12:18 PM

hi purvesh,
i have one doubt.pls clarify me.everyone is saying
after invest in fund track your portfolio once a year.
suppose i am investing for 10 yrs.at 5th yr one of my
fund performance is going very low.at tat time wat i hav to do?
we cant predict our market..up and down will happen right.
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after few years when the performance of one fund is very bad means
do i need to take it off money from tat fund and hav to start
with someother fund?..pls tel me
Reply
397 vivek November 17, 2011 at 12:42 PM

hi purvesh,
i have one doubt plz clarify me.everyone is saying, after started
to invest in funds track your portfolio once a year.no one can
predict the market..so up and down will happen..and i m going
to invest for 10 yrs.suppose one of my fund performance is
going very poor at the time of 6th year.at that time wat
i have to do?..do i need to cancel that account ?..and hav to put it
into debt ?..pls if u explain briefly it will be very useful for me
Reply

Hi Vivek,
That is what i can say smart investing. Nobody knows what market will do, but
compare your fund performance with their peers and index return. You will see the
comparative performance of your fund. You can not rely on anyone for your entire
investment span. So you have to actively track your folio once a year and that not a
big issue. After all its your hard earned money. If fund performance deteriorate over
period of time just stop your SIP, exit and invest in well performing fund and start a
new SIP. That is what is required at the end of each year. Use
valueresearchonline.com for ratings and comparison.
-Purvesh
Reply

Hi Raj
I agree with what Purvesh has suggested.
Reply
400 sak November 16, 2011 at 10:03 AM

dear sir,
i want to make 30 lakhs in 10years. i have the following funds. HDFC TOP 200, BIRLA SL DIVIDENT
YIELD, SBI GOLD FUND, IDFC PREMIER EQUITY, SBI EMERGING BUSSINESS all having RS. 2000
SIP (growth option.) will i achive my target. is my selection of funds good. should i add more funds please
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guide
Reply

Hi Sak
Your fund selection is good. You will have to increase your investment amount considerably to meet your
goal.
Reply
402 hari November 16, 2011 at 12:36 PM

hi,
i am hari 24 yr old..i just want to save my money for future..so i
am ready to start sip for 10 yrs and i planned to invest 10k(per month) in 4 funds.
give me a suggestion.this is my portfolio.
ICICI Pru Focused Bluechip Eqty (G)(3.5k)
HDFC Top 200(3.5)
Fidelity Equity Fund (G)(2k)
IDFC Premier Equity Fund(1k)
is this good? or i need to do any changes ?..
Reply

Hi Hari
Your fund selection is good.
Reply
404 hari November 17, 2011 at 12:31 PM

thanks anil.
Reply
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405 Avinash November 16, 2011 at 8:46 PM

Hi Hemant, Anil
Its really good to read all your post.I am a regular visitor and I think its the best website for youngster like me
who have minial financial knowldge and at the start of career. Reading on Financial Planning, SIP and many
such wonderful post by you, have given lots of insight .I would like to seek your guidance on following.
I am 26 yrs old bachelor.I have started following SIP:
1.DSP BR Top 100 Equity G (Rs. 2500)
2.SBI Emerging Business G (Rs. 2500)
3.Fidelity Tax Advatage G (Rs. 2500)
I have long term goal (i.e. House in Mumbai). I am looking for 5 yrs horizon.I have two queries.
1.How can I make my folio better to meet my BIG goal
2.Also can you suggest some debt investment to meet my short term goal.
Keep up the good work !!
Cheers!!
Avinash
Reply

Hi Avinash
Time horizon of five years comes under medium term. Long term means more than five years. For meeting
short term goals invest in debt, for medium term equity oriented hybrid funds and for long term diversified
equity mutual funds.
For proper diversification select one from each of the categories mentioned above. You can add one mutlticap
and one mid and small cap fund to your portfolio. Keep tracking all funds in your portfolio.
For short term goal invest in bank or post office deposits and debt oriented hybrid funds.
Reply

Thanks Anil.
I have one large cap and one mid & small cap fund. I will surely go for multi cap fund . But as per earlier
post shud I go for one Large & mid cap fund to have better asset allocation or as you suggested shud I
add one more mid and small cap fund to portfolio.
Also are there any other options/ways/suggestion for me to meet my BIG goal, looking at 3-5 yrs time
horizon.
Also I am looking for bank & PO deposits.
Cheers!!
Avinash
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Reply

Hi Avinash
In order to spread your risk you must diversify across fund houses as well as different types of funds
by investing in four to five funds of different categories. Large cap and large and midcap funds
provide stability and other types of funds provide a possibility of higher returns. So you have to
strike a balance depending on your risk appetite.
Three to five years is a very short time to meet your big goal. Investment in equity will be very risky
in the short term. So have more exposure to debt and less to equity.
Reply

Thanks Anil for your valuable suggestion.
Looking forward for more knowledge gaining advices from you.
Warm Regards,
Avinash.
Reply
410 Ankur Sinha November 17, 2011 at 10:14 PM

Hi Anil,
Is it right time to start long term Gold Investment by investing in NSEL E-Gold or wait for some time for the
gold price to come down ?
Thanks
Ankur
Reply

Hi Ankur
Whenever you do any investment for long term regularly in a systematic manner in any asset class, all times
are good for investment as it is never possible for any one to predict how a particular asset class is going to
behave in future. The key is to have proper asset allocation at all stages by doing rebalancing whenever
required. Do not put all your eggs in one basket.
Reply
412 Ankur Sinha November 18, 2011 at 11:40 PM

Hi Anil, thanks for the suggestion.
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Just wanted to check how secure is E-Gold through NSEL. It doesnt have long track record but there is no
annual maintenance fees like ETF anf Fund of Fund.
Thanks
Reply
413 deepak November 24, 2011 at 8:48 PM

HI HEMANT,
I have a genuine doubt i hope you ans the same.I have invested in mutual funds through sips and also
lumpsum over a period of time.I know the markets are down now and probably will recover over a period of
time.My ques basically is can i convert my lumpsum investments to a stp in the same fund house i.e. stop the
payments from the bank and convert them from the lumpsum amount.All my sips and lumpsump amounts are
either in equity or balanced funds in the growth options.
Reply

Hi Deepak
Normally for the purpose of investment you can put a lump sum amount in a liquid fund and transfer
from liquid to equity fund via STP. Why you want to convert your lump sum investments in equity or
balanced funds to STP does not make any sense to me.
Reply
415 deepak November 25, 2011 at 7:00 PM

Dear Mr Anil
My aim basically is to save putting in more money into the sips via the banks and convert the lumpsum into
the source for sips and invest the money which i am planning on investing elsewhere.This way the total amount
in the funds remain the same and i can invest the amount elsewhere.
Reply
416 Rahul Patil November 28, 2011 at 9:43 PM

Dear Anil,
I really Appreciate your sincere efforts.I need expert advice on my current SIP investment.I have invested in 6
SIPs
My current portfolio looks like,
Reliance Growth Fund 2000/HDFC Equity Fund 2000/Birla Sun Life Frontline Equity Fund -Growth 1000/DSP BlackRock Top 100 Equity Fund 2000/Kotak Opportunities Growth 1000/Principal Emerging Blue Chip Fund Regular Growth Plan 2000/-
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Apart from all the above I have invested 100000/- in HDFC Top200 . plz suggest how can I utilize that better
to fulfill my long term goals.
Waiting for your valuable response.
Thanks,
Rahul
Reply
417 Anil Kumar Kapila November 29, 2011 at 12:02 PM

Hi Rahul
It is not clear how long you have been investing in these funds. After starting your investments it is important
to track the performance of all funds in your portfolio to weed out non performing funds. I would suggest that
you should check the performance of the funds by comparing with the benchmark and peers and get rid of
funds which have been consistently under performing.
Reply
418 Rahul Patil November 29, 2011 at 4:52 PM

Hi Anil,
I am investing from last 2 years and want to invest for 10 yr span. This year most of funds are on
negative side.Pl advice whether investing in these SIP plans would be right or not? My age is 29 and
expecting good corpus after 10 years.Pl comment on individual SIPs whether to continue or not.
Reply
419 Anil Kumar Kapila November 29, 2011 at 8:13 PM

Hi Rahul
I would again like to stress the importance of regularly monitoring the performance of all funds in
your portfolio at least once a year. It is quite possible that even if you select the best performing
funds the performance of some fund in your portfolio may deteriorate with time. The ratings of
your funds are as follows.
1 Reliance Growth ***
2 HDFC Equity *****
3 Birla Sunlife Frontline Equity ****
4 DSP Blackrock Top 100 Equity *****
5 Kotak Opportunities ***
6 Principal Emerging Bluechip No Rating
I hope this rating will help you to decide about exiting from the non performing funds.
Reply
420 malik arshad December 4, 2011 at 10:54 AM
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hi.
i have following funds which i started in the month of sep.2011 and i intend to keep investing
for atleast 8 to 10 years
1.HDFC Top 200-Rs 3000
2.ICICI pru.focussed bluechip equityRs 2000
3.Reliance Equity opp. fund-Rs2000
4.BSL dividend yeild fundRs2000
5.Kotak GoldRs1000
can you give me a tentative figure which i may receive after 10yrs so that i can plan for my
future objectives..
thank u
Malik Arshad
J&K.
Reply
421 Anil Kumar Kapila December 4, 2011 at 12:58 PM

Hi Malik Arshad
Your fund selection is very good. It is very difficult to predict the return from your funds.
However if you remain invested for more than ten years you can expect annual return of
anywhere between 12 to 15%. Have proper asset allocation and keep on tracking your
funds.
Reply
422 ArunS December 2, 2011 at 3:18 PM

Hello
I want to invest 14000pm SIP and I have shortlisted few. Can you suggest which one and how much Rs to
allocate? Minimum one fund from each catagory.
1) large CAP catagory
HDFC Top 200
ICICI Pru Focused blue chip
DSPBR Top 100
2) Small and Midcap catagory
SBI Magnum Emering Business
IDFC Premeir Equity plan A
HDFC Midcap opprotuinites
3)Diversified catagory
HDFC Equity
UTI MNC fund
Regards,
Arun S
Reply
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423 ANIL KUMAR KAPILA December 2, 2011 at 8:08 PM

Hi Arun S
You can have these funds in your portfolio :
2 DSPBR Top 100.
3 IDFC Premier Equity.
4 HDFC Equity.
1& 2 will form core and 3& 4 satellite of your portfolio. Invest more in core and less in satellite. Exact
allocation will depend on your risk profile.
Dont forget to track your funds after starting your SIPs.
Reply
424 ArunS December 5, 2011 at 10:12 AM

Thank you Anil !
Reply
425 seenu December 8, 2011 at 11:19 AM

Namaste Anil/Hemant jis thanks for transfer from TAMAS TO JYOTI literally..excited to cross this
website. At least I came to know I am late for the busno regrets. I have jumped into the water for
swimming..which I know I have to. Please advice for my portfolio
35yr/ married/ 1 kid 2yrs-doc couple/
PPF 1.5L (2003 onwards irregularly operated)shud i continue..how much..
ICICI prudential Cashbak policy(2003) 2L (13514/yr)
LIC Jeevan Anand (2009)5L(28K/yr)
Mediclaim(NIA) 2011 12.5L(13504/yr)
HDFC Life child double benefit plan 2011 6L(38471/Yr)
Mutual funds(SIP) 10 k each
HDFC growth fund
HDFC Children gift fund
Reliance growth fund
UTI dividend yield fund
FTempleton Blue chip growth fund
Kindly opine
Reply

Hi Seenu
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It is never too late. You are a doctor couple which is a big plus point. Doctors normally are not bothered
about retirement as they keep on earning for a very long time.
Please have proper asset allocation in various asset classes like equity, debt and gold. You can also
perhaps invest in land to have your own clinic/nursing home.
PPF is a good investment. How much depends on your asset allocation.
Insurance and investment should not be mixed. So investing in ULIPs is not a good idea.
It is preferable to invest in diversified equity mutual funds for your kid instead of having a children gift
fund.
Keep tracking the performance of your funds to get out of non performing funds.
You can also think of availing the service of a certified financial planner.
Reply
427 seenu December 9, 2011 at 4:38 PM

Thank you Anilji
But can u throw light on my selections of the MF.anything to be changed, anything to be
stoppedppf shud i continue
what about NSC ..is it worth
Insurances are sensible or not
Reply

Hi Seenu
You can select either HDFC Equity or HDFC Top 200 instead of HDFC Growth.
Reliance Equity Opportunities can be substituted for Reliance Growth.
You can continue in PPF. NSC can be considered if it fits in your asset allocation.
Term Insurance and Health Insurance are sensible, ULIPs are not.
Reply
429 Austin December 10, 2011 at 12:47 AM

Hi, i have one doubt.which one is good flexi sip or fixed. If it is flexi i can put more money when the market is
low and i can invest less when the market is high right ?.i m going to invest for ten years in sip..so give me
solution
Reply

Hi Austin
Go for plain Vanilla monthly SIP.
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Reply
431 Anand Shah December 10, 2011 at 4:32 AM

Dear Anilji,
Greetings of the day!!
I made a good money ( more than 20% / year ) by investing in SIP between 2007 to 2009. I took a break for
more than one year and now again ready to start investing in SIP, which I feel is the best option in turbulent
markets.
Since the flavor of the funds changes with market conditions and performance, I need your expert opinion
before I start my SIP from next week.
I know these question have been asked many times recently and in the past also, but will appreciate if you can
spend some time to reply to it.
I plan to invest 5000 / month in the following MFs for a horizon more than 5 years.
Large Cap : Franklin India Bluechip , DSPBR Top 100Equity Fund
Muliti Cap: HDFC Equity
Large and Mid Cap : HDFC Top 200
Mid and Small Cap :
IDFC Premier Equity Fund Plan A
ICICI Pru Discovery,
SBI Magnum Emerging Business
Sundaram Select Midcap
ELSS : Canara Reboco Tax Saver
Kindly let me know your opinion and also help me to shortlist 2 funds in Midcap and Smallcap category.
Warm regards,
Anand Shah
Reply

Hi Anand Shah
For an investment of Rs 5000/- per month you do not need so many funds. Out of the funds shortlisted by
you select one large cap fund,one out of HDFC Top 200 and HDFC Equity, IDFC Premier Equity. ELSS
Fund selected is fine.
Reply
433 Anand Shah December 10, 2011 at 12:58 PM

Dear Amitji,
Thanks for prompt reply.
Actually it was my mistake, I want to invest Rs. 5000 / month per mutual fund.
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Kindly let me know your opinion.

Warm regards,
Anand Shah
Reply

Hi Anand Shah
Selection of one fund from each category will be fine. More than five funds are not needed. Select only one
fund from a fund house.
Reply
435 Anand Shah December 10, 2011 at 2:13 PM

Dear Anilji,
Many thanks for your valuable feedback.
Best regards,
Anand Shah
Reply
436 Ankur Sinha December 10, 2011 at 2:29 PM

Need suggestion on Kotak Invest Maximum
Where you pay 1Lac every year for 5 years, lock in is 5 years , 1 lac can be claimed under 80 c and Income
after 5 years is tax free.
Current they have two plans 1> Kotak Frontline Equity Fund(large cap equity) 2> Kotak Classic
Opportunities Fund (large / mid/small cap equity).
After first year SIP can also be done 1lac/12, STP is also allowed.
40% of total can be taken as loan also 12.5% per annum rate after 2 nd year
1 lac X 10 = 10 lacs life insurance also given.
Pls suggest, I am planning to deposit in PPF , is this Kotak fund is more beneficial ?
Reply
437 Hemant Beniwal December 14, 2011 at 8:26 PM

Hi Ankur,
As such there is no comparison between PPF & ULIP but you should not go for Kotak Invest Maximum.
Reply
438 siva December 18, 2011 at 10:35 PM
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Hi Anil and Hemant,

I got to know the powerful of SIP investment,to acheive our goal through your article,
Finally after gathering information about investing through SIPs
I planned to invest for long term 10 years and invested in,
ICICI Pru focused Bluechip growth- Rs.1000
HDFC Equity Growth Rs.1000
IDFC premier equity growth RS.2000
Please suggest me, whether my investment portfolio is Good.
Or where i need to change.
Thanks and Advance Happy New Year 2012 wishes.
Reply

Hi,
I am investing 4000/- each in Franklin Bluechip, IDFC Premier Equity, DSP top 100 BlackRock and HDFC
top 200
I want to invest another 4000 in one of the good Equity MF. Please suggest.
I am already investing almost 1.5 lacs per year (self and employer) in PF+PPF.
Reply
440 Purvesh December 19, 2011 at 9:07 PM

Hi Ankur,
Your equity portfolio looks good and diversified. You may add one multi cap fund to your portfolio for
added zing. But it is surprising to see you are equally inclined to debt portion also that too long term debt
(locked). I dont know your age but you should not invest in PPF+PF more than some limit as it is locked
for a long term. Even if you want to invest in debt you can go for non tax saving debt funds which are
liquid in nature. However if your age is under 35 you should be more inclined to invest in equity.
Thanks,
-Purvesh
Reply

Hi Purvesh,
Thanks for the reply, my age is 32, investment in PF+EPF is directly through my employer, which is
around 1 lac combined(self + employer), of which i can claim upto 50k(my contribution) under 80 c
(highest tax slab 30%). so I put another 40k in ppf and 10k term plan to claim 100% under 80c.
Putting money in ppf is only for tax saving purpose.
Suggest me if I am missing anything here .
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Reply

You still have chance to take advantage of ELSS for the last time before DTC in 2012. So
invest as much as you can in ELSS to save tax instead of investing in PPF.
Reply
443 Ankur Sinha December 20, 2011 at 12:40 AM

biggest problem is money will get stuck and you dont know the exact return also but in
PPF its guranteed
Reply
444 Purvesh December 20, 2011 at 8:41 AM

PPF will lock your money for more than 7 years.. and ELSS lock for 3 years.. if you
stay invested in ELSS for 7 years what you are doing for PPF, you will definitely get
good returnsStill four months left so divide your money for ELSS in four parts
and invest in this attractively low PE market.
Reply

Hi Purvesh,
You are talking absolutely right but this will be only for this year from next
year we have to think about some thing else.
Also , My investment will be a lumsum for around 50 K in ELSS as we have to
show the document for claiming tax.
Can you pls suggest me some good ELSS for good return.
Reply

Fine divide 50k in say 4 parts and invest in each month till march 2012.
You will average your cost. Fidelity tax advantage, HDFC tax saver are
very good funds.
Reply
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How about canera robeco tax saver ?

Reply
448 Inder December 22, 2011 at 9:13 PM

Sir,
I wish to invest 10000 per month via SIP. I am 28 years of age and have only long term goals, means after 1520 years. I want to built corpus for children(2) education, their marriage and Retirement corpus. My normal
monthly expenses are around 30,000 INR, no financial liabilities as for now. Is Rs. 10000 per month will be
sufficient investment at present stage or I need to invest more? Also Suggest me funds as per my above
requirements.
Many Thanks in advance.
Reply

Good to see you are starting investing very early. First of all find the target corpus you need for
education and marriage with the help of planner tool available from franking templtion. It will give
inflation and risk adjusted return required after 15-20 years. It will help you in deciding how much SIP
amount you need to invest.
Than invest in 4-5 funds. At your age go aggressive
For example You can invest in following
1) ICICI pru focused bluechip (Large Cap) 4K
2) HDFC equity (multi Cap) 3K
3) IDFC premier equity (small and midcap) 3K
-Purvesh
Reply
450 Inder December 23, 2011 at 10:39 PM

Dear Purvesh,
Many Thanks for handling my query and guiding me.
Kindly advice me for this also- Last month, I have started DIYSIP in UTI Gold ETF via my HDFC
Securities online trading account. Do You think, it is a good decision? Should I continue with it or
Exit?
Reply

Gold investment is good only if your portfolio is well diversified and it should never exceed
more than 5-10% of overall portfolio. Check what are the charges you are paying for services.
And also check how much you need to invest in gold ETF.
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Reply
452 simanchal ratha December 23, 2011 at 8:30 PM

hi
i want to know the minimum STP amount that can be transferred into IDFC PREMIERE EQUITY FUND .
Reply

Hi Simachal,
You cant do STP in IDFC Premier only way to invest is SIP & minimum amount for that is Rs 2000.
Reply

Once the Lock in period of 3 years is over for ELSS and I redeem after 3 years , will it attarct any tax ? or it
will come under long term capital gain , which is 0% tax ?
Reply

Thats right its tax free but STT is applicable.
Reply
456 Ankur Sinha December 24, 2011 at 10:42 AM

Thanks Purvesh for prompt reply.
Also can you pls suggest me a good ELSS, I want to invest in lumpsum for this year for tax saving
and keep it locked for three years. we will see what happens next year with DTC and depending on
that I will add more units to it.
I have HDFC top 200, DSP Blackrock top 100, Franklin Bluechip, IDFC premier equity,, 4k
investment through SIP in all these.
Also , If my wife is holding ELSS folio and I pay to buy the units , can i claim the amount under
80c?
Reply

Invest in ELSS in 4-8 parts till march 2012. I think you can not claim ELSS in 80c bought in
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folio of your wife as only first holder can claim tax benefit.
Reply

What ELSS you suggest will be good for long term investment ? HDFC Tax Saver,
ICICI , Canera Robeco ,Fidility or Franklin ?
Reply
459 simanchal ratha December 25, 2011 at 11:01 AM

please answer my query st sl 452
Reply

Replied
Reply
461 Tushar January 5, 2012 at 12:14 PM

I want to start SIP this year for long term for child edu. Which is best fund between HDFC TOP 200 OR
IDFC Equity Pre Plan A? and what min Amt and lock in period for the same. Kindly Suggest..
Reply
462 deepak January 6, 2012 at 12:38 PM

Hi,
My father wants to invest in mutual fund via sip amount of 3000/-. Time horizon is 5 to 6 years and he is 54.
So my advice to him is as below.
2000/- HDFC prudance
1000/- ICICI pru focused bluchip.
So is it ok? Or I have to give advice of only of balanced fund. plz give suggestion.
Reply
463 Purvesh January 8, 2012 at 7:13 PM
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Your father will be retiring within 6-7 years from now. It is not advisable for him to invest in equity
aggressively. Normally a person should not invest much in equity as he approaches retirement. If he is
investing a very small portion of his income that is fine, but sip works well in longer run than 5 years.
Invest very small portion in balanced fund is good option. Also consider investing in MIP which is having
at max 30% in equity and rest in debt. HDFC prudence invest upto 70% in equity and best performer in
category.
-Purvesh
Reply
464 Brigadier A V Krishna January 15, 2012 at 12:14 PM

I suddenly came across the conversation. Hats off to you guys, Im impressed and applaude your unbiased and
frank opinion without any ulterior personal agenda. You will do a lot of good to all those who heed your
advise. Ill soon solicit your advise for my self and my son who is just entering into self earning phase of life.
Thanks again and god bless you guys.
Reply
465 Brig A V Krishna January 15, 2012 at 8:05 PM

In order to introduce my son 21 yrs of age to the SIP concept over a horizon of 10 yrs, i have selected the
following as monthly SIPs after reading through the thread above, please advise:
DSPBR Top 100 1500
HDFC Top 200 1500
Reliance Equity Oppr 1000
UTI Oppr 1000
Reply
466 Rajasree January 17, 2012 at 12:11 PM

Hi,
The last SIP for my Sundaram select midcap-appreciation fund is due in Feb. I want to invest in a better
performing fund in the same category March onwards. Could you please suggest funds for the same( exclude
HDFC funds)? What is your opinion about IDFC premier equity A and SBI Magnum Emerging Busi in this
regard? Which one is better?
Regds.
Rajasree
Reply
467 Nitin Srivastava January 17, 2012 at 6:49 PM

Hi Sir,
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I am 32 and planning to invest Rs. 6000.00 p.m. for next 10 years. Gradually, I can increase the amount but for
now, Rs. 6,000.00 is my budget. I have selected below funds. Can anybody please suggest whether the selection
is correct or not-:
HDFC Top 200: Rs. 2000.00(Equity Large and Midcap Mutual Funds)
IDFC Premier Equity-: Rs. 2000.00(Equity Mid and Small Cap Mutual Funds)
HDFC Equity/ Reliance Equity Opportunities-: Rs. 2000.00(Equity Multi Cap Mutual Funds)
Reply
468 Sanjay January 18, 2012 at 9:37 AM

Best mutual fund for sip in 2012 ?
Reply
469 Eswar January 20, 2012 at 12:51 PM

Hi Hemanth,
I am 34 Yrs old, and new to investiments,
I gone through your artilce on this page, its worth information.
I found top perorming funds on Moneycontrol
Can we follow this link and choose the best fund based on Crisil rank 1 .
Could you please suggest ?
Reply
470 Eswar January 24, 2012 at 1:05 AM

still waiting for your suggestion.. can i follow moneycontrol
Reply
471 Shailesh January 24, 2012 at 3:24 PM

Hi,
Now I am reviewing my portfolio again after 6 month and there is slight change in portfolio. Following is final
selected funds for min next 5-7 year.
Kindly review it and let me know if something change required.
1. ICICI pru Focussed Bluechip Equity 2500 per month
2. UTI Opportunities 2000 per month
3. HDFC Equity 1500 per month
4. HDFC Balanced- 1000
5. IDFC Premier Equity 1000
6. SBI Emerging Business 1000
2/5/2012
Page 126 of 129
7. Reliance Gold Saving 1000

Earlier I was investing in HDFC MID CAP equity opportunity fund, now planning to replace it with IDFC
Premier Equity, is it good decision or not?
Regards,
Shailesh
Reply
472 Shyam January 30, 2012 at 10:34 AM

You are a very helpful person and insightful, giving good and more importantly free advise to people trying to
invest. I think you should start a more interactive blog.
Good work, buddy.
Thanks for all the recommendations.
I thought of asking, but found most has been answered here.
Reply
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