MF GURU: ‘High risk appetite. Where to invest?’

Do you have mutual fund queries?

Please mail your questions to [email protected] with the subject line, ‘Ask Nikunj‘, along with your name, and he will offer his unbiased views.

Nikunj Saraf, Vice President Choice Wealth, (external link), will answers your queries.

Sai Kumar: Hello Nikunj – I am 40 and wish to start investing in MFs. I can invest up to 1.3 lakh per month. My aim is to continue investing it for next 5 years and have maximum returns. My risk appetite is moderate to high. Please advise which funds I should look at.

Nikunj Saraf: Hello Sai Kumar. Thanks for discussing your requirements. I recommend investing in the following schemes based on all factors:

  • Quant Flexi Cap Fund — 40000
  • Canara Robeco Emerging Equities Growth — 40000
  • Axis Mid Cap Fund — 30000
  • Nippon India Small cap Fund — 20000

Total: 130000

Kamlesh Kriplani: I am 42 years old. I have 40 Lakh that I want to invest in Mutual Funds with good returns. I also plan to put additional 50000 every month in SIP.

Kindly suggest.

Nikunj Saraf: Hi Kamlesh. On the basis of age factors and requirements, assuming a holding period of 3-5 years.

For 40 lakh, I recommend diversifying your portfolio across different asset classes. Hence, I would recommend investing 80% in equity funds and 20% in hybrid funds.

To benefit from future market volatility, I recommend investing via STP rather than lump sum. The following schemes would be suitable for SIP investments.

  • Canara Robeco Emerging Equities Growth — 20000
  • Kotak Bluechip Fund — 15000
  • PGIM India Flexi Cap Fund — 15000

Total: 50000

Nishant Jain: I am 32 years old and I am investing monthly 50000 in below funds. For long term. Please let me know if the below funds are good to invest. 

  • Canara robeco bluechip equity fund – 20000
  • Axis Growth opportunities fund – 15000
  • Parag parekh flexi cap fund – 15000

Please suggest if I need to add or modify my investment.

Nikunj Saraf: Hi Nishant. Based on an analysis of your current investments, your investments appear to be in line with the market. As far as the portfolio is concerned, no modifications are needed.

swami das: My age is 27 and i am planning for my retirement so i am investing 20K every month in sip and will step up 10% every year .

I am expecting 15% return on my investments. I started investing in MF from march 2022 and I have also investing 10K in EPF and 1.5 L in LIC.

I have added all my mutual funds below , please reveiw and share ur opinion. If it’s over diversified suggest me which fund i need to remove from my portfolio.

Small cap funds – 4( 6500 )

1. Axis Small Cap Fund Direct Growth-2000

2. Kotak Small Cap Fund – Direct Plan – Growth (Erstwhile Kotak Mid-Cap) -1500

3. NIPPON INDIA SMALL CAP FUND – DIRECT -1500

4.Quant Small Cap Fund – Direct Plan Growth -1500

Mid cap Funds – 4 (4500)

1. PGIM India Midcap Opportunities Fund – Direct Plan – Growth- 1000

2. Quant Mid Cap Fund – Growth -1500

3. Invesco India Midcap Fund – Direct Plan Growth -1000

4. Axis Mid Cap Fund – Direct Growth -1000

Blue chip & Growth -2 (2500)

1. Mirae Asset Emerging Bluechip Fund – Direct Plan-1500

2. Axis Growth Opportunities Fund Direct Growth -1000

Sectorial Diversification -6 (4500)

1. ICICI Prudential Technology Fund – Direct Plan – Growth – 1000

2. ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Plan Growth -500

3. ICICI Prudential Banking and Financial Services Fund – Direct Plan – Growth -500

4. Mirae Asset Great Consumer Fund – Direct Plan -1500

5. Quant infrastructure fund – 1000

US market (2500)

Nikunj Saraf: Hello swami. The detailed overview of your MF portfolio indicates over-diversification with 20k SIP. Hence, I would suggest reconsidering, pruning, and reshuffling your portfolio. 

As part of the portfolio reshuffle, make sure to have AMC diversification as well.

Limit yourself to 1-2 schemes in each category.

I can see several schemes in different categories for each AMC. I recommend reconsidering the scheme for Navi US scheme to better scheme in same category.

Micheal Selvam: Good morning, I am 32 years old and my risk profile is some what extremely high. Currently I am invested around 6.5L through SIP and one time, details are below.

Axis Small Cap – 1,12,500 SIP – 12,500

Axis Mid Cap – 1,12,500 SIP – 12,500

ICICI Pru Small – 97,000 recently switched from ICICI Pru Technology fund

Mirae Asset Global X AI & Technology ETF – 1,00,000 bought in NFO

Mirae Asset Global Electric and Autonomous vehicle ETF – 1,00,000 bought in NFO

Canara Robeco Small Cap – 65,000 SIP-5,000

Parag Parikh Flexi Cap – 45,000 SIP-5,000

SBI Small Cap – 15,000 SIP-5,000

Currently holding 4 Small Cap funds which I keep for tracking for 2 years to see the performance, based on performance may I withdraw and invest in other.

Target: 2-3 Cr in 10-13 years, and more than 10 Cr for wealth creation for retirement.

Planned to add additional 10k SIP, which fund I can increase SIP amount that I am holding or to focus any ELSS fund?

Any modification to be done in current holdings? Your advice please, thank you in advance.

Have a Great Day 

Nikunj Saraf: Hello Micheal Selvam. Based on your portfolio, it is evident that you enjoy taking risks when it comes to investments. Although the selection is good, I would still recommend diversifying the risks.

Currently, majority of your investments are at aggressive risk. Consider adding low & moderate-risk funds to your portfolio, since any market changes will first affect midcap and smallcap funds. To remain prepared for any future effects, it is important to maintain your portfolio.

pavan krishnamurthy: I am 28 yrs old working professional. I’m currently investing in the following mutual funds for accumulating corpus amount of 1cr in long term:

ICICI Prudential Bluechip-G: 3300

Kotak Flexicap Reg-G: 3300

Aditya Birla SL Medium-Term-G: 4500

Kindly guide if my selection of mutual funds is fine and kindly suggest some more funds to add. I can invest upto 16k per month in SIP.

Nikunj Saraf: Hi Pavan. I would suggest you reconsider the ABSL amount if you are looking for a long-term vision in MF. In your portfolio, you can include large & midcap funds as well as midcap funds. Based on the assumption that the goal has a 15-year vision, the 16k sip is a smart investment.

Choice Wealth Disclaimer

Choice Wealth Private limited, to the best of its ability, considered various factors — both quantitative measures and qualitative assessments, in an unbiased manner while choosing the fund(s) mentioned above. However, they carry unknown risks and uncertainties linked to broad markets, as well as analysts’ expectations about future events. They should not, therefore, be the sole basis of investment decisions. Investors are requested to review the prospectus carefully and obtain expert professional advice concerning specific legal, tax, and financial implications of the investment/participation in the scheme.

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