Chat Transcript

Stocks | 16 Jun - 11:00hrs

What kind of fund one should invest now?


Hemant Rustagi | CEO, Wiseinvest Advisors

guest: i am invest bsl frontline -1000,icici pru value discovery-1000,rel. equity oper-1000 my goal is 1cr in 25years
Hemant Rustagi: Investing thru SIP in well diversified equity funds is the right investment strategy to accumulate a corpus for long-term goals. You are doing exactly that. At an assumed annualized return of 12 percent, you need to invest Rs.6000 pm to achieve your goal. Your fund selection is good and hence you can invest additional amount in the existing funds.
guest: i icici pru focused bluchip-1000,hdfc midcap oper-1000,idfc primer equity-1000 my goal is 3cr in 30years i am just 30years age and my salary 40000/-
Hemant Rustagi: Your fund selection is good. However, the right way to start investment process is to define your short, medium and long-term goals and decide your asset allocation accordingly. In this case, since your time horizon is 30 years, investing in equity funds is the right strategy. To achieve your target, you need to invest Rs.10,000 pm, at an assumed annualized return of 12 percent.
naresh01p: I have been investing in HDFC Top 200 & DSP BlackRoch Equity for past 5 years. For last 2 years these funds have not performed well. Shall I exit and shift to other fund, if yes pleasae suggest a fund.
Hemant Rustagi: It is true that these funds have not been doing well for the last couple of years. However, it happens with almost every fund as different sectors perform differently in the market. These are quality funds and it is a proven fact that a good portfolio always makes a comeback. The decision to continue or not will depend upon other funds in your portfolio.
baronofbeer: Hi Sir, Can you name some funds for a five year investment horizon?
Hemant Rustagi: If you intend to invest a lump sum, you can invest in a combination of equity oriented balanced and large cap oriented equity funds. You can consider Tata balanced fund, Kotak select focus and SBI Magnum balanced fund.
guest: Please suggest top 3 funds to invest in around 1 lacs for 3-4 years holding.
Hemant Rustagi: Your time horizon is not long enough to invest aggressively. Hence, you should ideally be investing in hybrid funds, especially those that invest in equity, arbitrage and debt. These are tax efficient too as for tax purposes they are treated as equity funds. You can consider ICICI Pru balanced advantage and Kotak equity savings fund.
panigrahy-chand: which is real time for investment in mf
Hemant Rustagi: Investment is a process and not a one time activity. Hence, there is no such thing as a good time or a bad time. You need to plan your investments which includes defining your goals, assigning a time horizon and a target amount for each one of them. This will help you in deciding an ideal asset allocation for your portfolio and create a balanced between risk and reward.
guest: i am invest axis long tarm equity-3000,franklin india samaller com-2000 my goal is 50lac in 20years pl sagess
Hemant Rustagi: Investing in equity funds for a time horizon of 20 years is the right strategy. Your fund selection is good. ELSS is a great option to save taxes and benefit from the growth in the stock market. At an assumed annualized return of 12 percent, you will be able to achieve your target. However, you must remember that your commitment to stay invested has to be to the asset class and not to the fund. Hence, as and when required, do not hesitate to make changes in the portfolio.
guest: IS L&T business cycle fund good fund for starting a SIP
Hemant Rustagi: Although it is a new fund, it has a good theme and has been doing well. However, the decision to invest in a thematic fund will depend upon the combination of other funds in your portfolio. If you have an existing portfolio, you can invest in this fund.
guest: Can Pharma funds be considered safe for long term investment.
Hemant Rustagi: As the name suggests, pharma funds are sector funds. Although sector fund have the potential to do well if you chose the right fund at the right time, they tend to be more aggressive than diversified funds. Hence, you should invest in them if you are an experienced investor. As a sector, pharma has the potential to do well going forward.
guest: sir, i want to invest rs. 50000 in mutual fund for our child future. pl suggest
Hemant Rustagi: Since investing for child`s future is an important long-term goal, it is necessary to choose the right asset class and the fund. My recommendation will be to invest in funds like Franklin India bluechip fund and Reliance equity opportunity fund. While you can begin the process by investing a lump sum amount, the right way would be to also invest thru SIP every month.
guest: Hello Sir, I am doing SIP in HDFC Mid Cap Opportunity (Rs 3000 pm), HDFC Prudence (Rs 2000 pm), Uti Opportunity (Rs 1000 pm), Frankline Prime plus (Rs 1000 pm), Quantum Long Term (Rs 1000 pm) & Quantum tax saver (Rs 1000 pm). These SIPs started after Jan 2015... Time horizon is more than 3 to 4 years. Any suggestions for improvement or these are good enough?
Hemant Rustagi: For a time horizon of 3-4 years, especially when you are investing thru SIP, your portfolio is quite aggressive. You should investing in equity funds with a time horizon of at least 5 years. In fact, the longer the better. Besides, you have too many funds for the kind of money you are investing. you must try to consolidate the portfolio for better monitoring and performance.
guest: GM Hemant, Do you advise to venture in to sector funds like Banking, Pharma and FMCG at this moment of time for a time horizon of 4~6 years
Hemant Rustagi: Good morning..As already mentioned, sector funds are quite aggressive. However, if an experienced investor selects the funds well and at the right time, they have the potential to provide better returns than diversified funds. The risk in these funds can be mitigated by investing across a few sectors. Also, the key is to time your exit well.
guest: What is difference between Online Mutual fund and Offline Mutual fund?
Hemant Rustagi: While offline is the traditional method i.e. to fill up a form and submit along with a cheque, online is more convenient and efficient. However, t o invest online you need to invest offline once to create a folio and register with the fund house for online investment subsequently.
kashish_narang7: Hi Sir. i have SIP of 1000 each in Axis Long Term Equity Fund,Birla Sun Life Long Term Advantage Fund and Franklin India Smaller Companies Fund. I am investing with horizon of 3 to 5 years. Should I keep it same or change ? Please suggest.
Hemant Rustagi: While the fund selection is good, I am a little concerned about your time horizon and the fact that you do not have adequate exposure to large cap segment of the market. By investing for the longer duration and by creating a portfolio of funds that has a consistent long-term performance track record, you can benefit immensely from the true potential of this wonderful asset class called equity.
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