Can you comment on my fund selection?

By Morningstar |  18-11-19 | 
 

When you choose your mutual funds it should be based on your financial goals, investment horizon, and risk profile. As an investor, you should remember that your choice of level of risk and the investment horizon will play a decisive role.

If your goals need to be met within less than 5 years, you may consider investing in fixed income funds and if you are investing for long-term goals of over 5 years, you may consider hybrid or equity funds.

Ultra short duration funds are ideal for investors who have a short-term goal, with a time horizon of 6 to 12 months. If you have a horizon of 3-5, then short term and medium term funds are the best suitable categories.

A lump sum investment is generally considered when the investor has a big corpus to invest. We generally recommended SIP in case of investments in mutual funds as it allows you to invest at different levels of market.

We would also recommend consulting with an Investment Advisor who will guide you through understanding your risk return objectives and help drawing up a suitable asset allocation for your portfolio.

You can view our fund analysis here.

SIPs in Axis Bluechip, Mirae Asset Large Cap, SBI Focused Equity, Mirae Asset Bluechip, SBI Small Cap, SBI Ultra Short Duration. I am 42. I want to save for retirement (15 years) and son’s education (10 years).

  • Satyaranjan

You have a good set of funds in your portfolio. The funds you have named are fairly well managed strategies and in addition it’s a good mix of funds from different categories.

Axis Bluechip has an impressive track record of outperformance. Both the Mirae Asset funds are managed by Neelesh Surana. The fund manager has executed the strategy well and the fund has outperformed most of its peers across time frames.

SBI Focused Equity has the ability to outperform its benchmark and peers over the long term. The fund manager R. Srinivasan constructs a portfolio of roughly 30 stocks, with the top 10 accounting for roughly 50% of assets. Having said that, investors should be aware of the risks of investing in a strategy based on this style.

SBI Small Cap fund invests at least 65% of its net assets in small-cap stocks. Small-cap stocks are excellent wealth creators over the long term, but also can be quite volatile in the short term; remember 2018? But if you have a long-term horizon, small cap funds can serve you well. If these funds meet your investment objective and is a fit in your portfolio, then you may consider investing in it.

Ultra Short Duration and Short Term Fund both are fixed income products. Ultra short duration funds are a good choice for conservative investors who want to take advantage of the rate changes and low yields. This is the safest instrument to play the duration because the portfolio consists of fixed income instruments of maturities up to six months. While Short-term bond funds invest in securities that have a maturity period between a year to three years and offer high liquidity.

Mirae Asset Hybrid Equity, Mirae Asset Tax Saver, Axis Bluechip, Kotak Standard Multicap, Invesco India Growth Opportunities, SBI Small Cap.

  • Sanjay Barman

Your portfolio consists of funds that have a strong track record. The funds in your portfolio are being run by well experienced managers with a long track record both over the long a well as the short term. We have a Morningstar analyst rating of Silver on the Kotak Standard Multicap Fund. The other funds that you are investing in standout individually too.

As for the actual allocation to each and exposure to small and mid-cap funds, take a look at your goals and risk levels and invest based on these.

Invest a small portion of your portfolio in debt funds with a view to diversity your investments.

I am planning to invest in the following: Axis Blue Chip (5,000), L&T Mid Cap (5,000), HDFC Small Cap (5,000). My horizon is 25 years.

  • Sivasubramaniam   

Good to see the long-term view you have taken, you would surely witness the true benefits of staying invested in equities over the long term.

Axis Bluechip has an impressive track record of outperformance.

L&T Mid Cap invests at least 65% of its corpus in mid cap stocks. The fund has outperformed its category peers over the long run.

HDFC Small Cap invests at least 65% of its net assets in small-cap stocks and is managed by Chirag Setalvad who ranks amongst the best portfolio managers in the small/mid-cap Morningstar Category. Setalvad’s tendency is to make contrarian investments which can result in a divergent showing versus the category over shorter time periods. However, its long-term performance remains attractive.

You should note that these funds offer a high risk-high return investment proposition. These funds can get exposed to above average volatility during market downturn or when mid-small-cap stocks lose their sheen. The aptness of this fund in your portfolio and allocation to it would depend on your risk appetite.

SIPs in Axis Bluechip, Mirae Asset Large Cap, SBI Focused Equity, Mirae Asset Bluechip, SBI Small Cap, SBI Ultra Short Duration. I am 42. I want to save for retirement (15 years) and son’s education (10 years).

  • Satyaranjan

You have a good set of funds in your portfolio. The funds you have named are fairly well managed strategies and in addition it’s a good mix of funds from different categories.

Axis Bluechip has an impressive track record of outperformance. Both the Mirae Asset funds are managed by Neelesh Surana. The fund manager has executed the strategy well and the fund has outperformed most of its peers across time frames.

SBI Focused Equity has the ability to outperform its benchmark and peers over the long term. The fund manager R. Srinivasan constructs a portfolio of roughly 30 stocks, with the top 10 accounting for roughly 50% of assets. Having said that, investors should be aware of the risks of investing in a strategy based on this style.

SBI Small Cap fund invests at least 65% of its net assets in small-cap stocks. Small-cap stocks are excellent wealth creators over the long term, but also can be quite volatile in the short term; remember 2018? But if you have a long-term horizon, small cap funds can serve you well. If these funds meet your investment objective and is a fit in your portfolio, then you may consider investing in it.

Ultra Short Duration and Short Term Fund both are fixed income products. Ultra short duration funds are a good choice for conservative investors who want to take advantage of the rate changes and low yields. This is the safest instrument to play the duration because the portfolio consists of fixed income instruments of maturities up to six months. While Short-term bond funds invest in securities that have a maturity period between a year to three years and offer high liquidity.

Mirae Asset Hybrid Equity, Mirae Asset Tax Saver, Axis Bluechip, Kotak Standard Multicap, Invesco India Growth Opportunities, SBI Small Cap.

  • Sanjay Barman

Your portfolio consists of funds that have a strong track record. The funds in your portfolio are being run by well experienced managers with a long track record both over the long a well as the short term. We have a Morningstar analyst rating of Silver on the Kotak Standard Multicap Fund. The other funds that you are investing in standout individually too.

As for the actual allocation to each and exposure to small and mid-cap funds, take a look at your goals and risk levels and invest based on these.

Invest a small portion of your portfolio in debt funds with a view to diversity your investments.

I am planning to invest in the following: Axis Blue Chip (5,000), L&T Mid Cap (5,000), HDFC Small Cap (5,000). My horizon is 25 years.

  • Sivasubramaniam   

Good to see the long-term view you have taken, you would surely witness the true benefits of staying invested in equities over the long term.

Axis Bluechip has an impressive track record of outperformance.

 L&T Mid Cap invests at least 65% of its corpus in mid cap stocks. The fund has outperformed its category peers over the long run.

HDFC Small Cap invests at least 65% of its net assets in small-cap stocks and is managed by Chirag Setalvad who ranks amongst the best portfolio managers in the small/mid-cap Morningstar Category. Setalvad’s tendency is to make contrarian investments which can result in a divergent showing versus the category over shorter time periods. However, its long-term performance remains attractive.

You should note that these funds offer a high risk-high return investment proposition. These funds can get exposed to above average volatility during market downturn or when mid-small-cap stocks lose their sheen. The aptness of this fund in your portfolio and allocation to it would depend on your risk appetite.

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Pooja Nair
Nov 19 2019 04:44 AM
Hi, kindly need your assistance for;
Mirae asset bluechip, sbi midcap, sundaram midcap, mirae tax saver are my existing MFs.

Kindly guide if I can invest in any of these - Axis bluechip, UTI Large CAP or Canara Rebacco SMALL CAP or SBI small cap?
Pooja Nair
Nov 19 2019 04:35 AM
Hi need help on my existing MF.
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