It was an exciting journey for investors in 2021. Nifty 50 generated 24% returns and Sensex has generated 22.5% returns in last 1 year in 2021. There is increase in mutual fund SIP investments in 2021 compared to previous years. Mutual fund investors should always align their mutual fund investments with financial goals to reap the maximum benefit. Which are the Best SIP to invest in 2022 in India? Which are the Top 10 Mutual Funds for SIP to invest in 2022 that are consistent performers?
What are SIP Mutual Funds?
Skip this section if you are already familiar with mutual funds in India.
Mutual funds pool money from investors and invest in equity or debt or gold or silver or real estate etc., depending on the investment objective indicated in the scheme information document (SID).
Systematic Investment Plan (SIP) is a disciplined way of investing in mutual funds with equal amounts at predefined interval. This could be weekly SIP, fortnightly SIP, monthly SIP, quarterly SIP or yearly SIP. Among these various options, month SIP is popular.
There are over 800 mutual fund schemes (equity and hybrid) in India. In this bull run, majority of them are top performers. However, investors should pick-up mutual fund schemes based on some of the key parameters.
As per AMFI, mutual fund industry has grown 2 fold in the last 5 years.
How to choose a good mutual fund suitable for you?
Mr. Rajesh has picked-up a small cap mutual fund scheme to invest for 3 years time frame to use this for his kids’ education. He checked last 3 years performance, excited about it and chosen this fund. He is low to moderate risk investor
Do you know whether Mr. Rajesh made the right choice? The answer is NO. Small cap mutual funds are high risk and should be invested only long term perspective.
Hence it is important to understand how to choose a right fund suitable to you.
#1 – Pick-up mutual fund based on your goal
If you need to achieve a specific financial goal, align your mutual funds also towards that.
E.g. You need money for kids’ education in next 5 year and need to accumulate an X amount in 20 years for retirement. Don’t club them. Consider two mutual funds which can align towards these 2 goals as one is medium term and another in long term in nature.
#2 – Invest based on your risk appetite
There are low risk, moderate risk and high risk investors. In above example, Mr. Rajesh is low to moderate risk investor, however, considered high risk fund. After a couple of years, he would have sold the mutual funds with loss and would have blamed that mutual funds are not fit for anyone.
Low to moderate risk takers – Invest only in debt funds
Moderate risk takers – Can consider balanced funds. However, they can add some portion of large cap funds and flexicap mutual funds. If markets are volatile, one can consider some of the best conservative hybrid funds too.
High risk investors – They can consider all types of funds like index funds, large cap funds, flexicap funds, small cap funds, mid cap funds and global funds etc.,
#3 – Pickup mutual fund based on tenure
This is one of the key aspects in choosing a SIP mutual funds. Investing in equity fund for short term could be a disaster. Align your mutual fund investments based on how long you can invest in such schemes.
Short term < 3 years – Only debt funds (irrespective of risk appetite). Check some of the consistent performing debt funds that generated over 7% every year in the last 8-10 years.
Medium term 3 to 5 years – Balanced funds could be better (irrespective of risk appetite)
Long term 5-10 years – Any mutual fund scheme
#4 – Past performance is key, but not sole criteria
Some people say past performance is irrelevant. But how do you judge a fund? Past performance can help you to know how such fund performed in various market cycles. However, don’t expect such fund can perform in similar line in future too. One should consider annualized returns + rolling returns when choosing a SIP mutual fund scheme for investing in medium to long term.
#5 – Low expense fund
There is good awareness being created across various blogs or a website or social media forums in the last few years. Investors have been shifting to direct mutual fund schemes where the expense ratio is low. This way the returns would be higher. Avoid investing in regular mutual fund schemes.
#5 – Consider tracking error in index funds
Index funds would replicate a particular index. This does not mean that every index fund can be considered for investment. If the fund do not track the exact replica of the index, there could be gaps in the returns generated by index vs. returns generated by the fund. The gap is tracking error. Lower the tracking error, better it is.
#6 – Size of the fund matter
Investors can consider a mutual fund scheme that has AUM of > 500 Crores. When they want to redeem they should not face redemption issue, hence this check point.
How did Top 15 Mutual Funds recommendation of last year perform?
We have been providing top 10 mutual fund recommendation every year. Let us check how 2021 mutual fund recommendations performed in the last 1 year
| No | Scheme Name | 1 Year Return |
|---|---|---|
| #1 | Mirae Asset Large Cap Fund | 30% |
| #2 | Axis Blue Chip Fund | 25% |
| #3 | SBI Blue Chip Fund | 27% |
| #4 | Canara Robeco Blue Chip Equity Fund | 28% |
| #5 | Mirae Asset Emerging Blue-chip Fund | 40% |
| #6 | SBI Small Cap Fund | 43% |
| #7 | Kotak Emerging Equity Fund Regular Plan | 45% |
| #8 | Axis Midcap | 40% |
| #9 | Axis smallcap | 57% |
| #10 | Kotak Standard Multicap Fund Regular Plan | 27% |
| #11 | Parag Parikh Flexicap fund | 46% |
| #12 | UTI Equity fund | 34% |
| #13 | SBI Equity Hybrid Fund | 24% |
| #14 | HDFC Hybrid Equity Fund | 27% |
| #15 | Canara Robecco Equity Hyrbid fund | 25% |
Best SIP to invest in 2022 – Top 10 Mutual Funds for SIP
Now that we understood how to pick-up a mutual fund scheme and also seen how our last year recommended funds performed, here is the list of 10 best mutual funds to invest through SIP in 2022 in India.
For easy differentiation, these are categorized into Largecap, Flexicap, Midcap/Smallcap, Balanced Funds and Global Funds.
One should note that there are 800+ equity and hybrid mutual fund schemes and hundreds of top performing mutual funds. We filtered funds which are consistent performers. The list can be bigger if we consider top 20 or top 30 funds or top 30 funds.
Best Largecap / Index Funds to invest in 2022
We have considered 4 funds in this category now for 2022.
We have added 2 index funds (Nifty index fund and Nifty Next 50 index funds as part of 10 SIP mutual funds of 2022). Investors are moving into passive index funds in the last few years. Instead of worrying about which fund would be performing better, one can go for such index funds. This way, if the stock market is up, your investment is up and no need to worry about fund performance.
We have retained 2 large cap funds which we recommended earlier.
These funds have generated consistent annualized returns as well as rolling returns in the last 5 years.
If you are moderate to high risk taker and willing to invest for 5-10 years and above, you can invest in these funds. Yes, there could be overlap in terms of underlying stocks, but don’t invest in single fund which can screw up your portfolio.
Here is the list of best large cap / index mutual funds to invest in India.
#1 – UTI Nifty Index Fund
#2 – UTI Nifty Next 50 Index Fund
#3 – Mirae Asset Large Cap Fund
#4 – Axis Blue Chip Fund – This is one of our favorite fund.
Navi Mutual Fund is disrupting mutual fund industry with lowest expense ratio. It has recently launched Navi Nifty Next 50 Index Fund NFO which has low expense ratio at 0.12%. Earlier HDFC MF and UTI MF also had low expense ratio for some of their index funds, however they have increased the expense ratio last year.
Best Midcap and Smallcap Funds to invest in 2022
We have retained our earlier recommendation and considered 1 Midcap and 1 small cap fund for 2022.
These Midcap and small cap funds have generated consistent annualized returns as well as rolling returns in the last 5 years.
If you are a high risk investor and willing to invest for 8-10 years, you can consider investing some of your portfolio in such funds.
Here is the list of Top Midcap and Smallcap SIP mutual funds to invest in 2022.
#1 – SBI Small Cap Fund
#2 – Axis Midcap Fund
Best Flexicap Funds to invest in 2022
We have retained our earlier recommendation and considered 2 flexicap funds.
These top flexicap mutual funds have generated consistent annualized returns as well as rolling returns in the last 5 years.
If you are moderate to high risk investor and willing to invest for 5-10 years and above, you can consider investing in such funds.
Here is the list of Top Flexicap mutual funds to invest in 2022.
#1 – Parag Parikh Flexi Cap fund
#2 – UTI Flexi Cap fund
There are many new entrants in mutual fund industry (e.g. Samco MF). Recently Samco Flexicap Fund was launched. One need to wait and watch how such funds perform in short to medium term.
Best Hybrid Funds to invest in 2022
We have retained our earlier recommendation and considered 1 hybrid fund now – Canara Robeco Equity Hybrid fund.
This hybrid fund has generated consistent annualized returns as well as rolling returns in the last 5 years.
If you are moderate risk investor and willing to invest for 5+ years, you can consider investing in such hybrid funds.
Best International Funds to invest in India
While we have recommended global funds in various other articles, we are now making this part of the top 10 funds from this year onwards. This would work like a diversification to your portfolio with global exposure.
The fund we are recommending in international mutual fund category is Motilal Oswal Nasdaq 100 Fund of Fund.
This global fund has generated consistent annualized returns as well as rolling returns in the last 5 years.
If you are a high risk investor, willing to invest for 5+ years and looking for global exposure, you can consider investing in such funds.
List of Top 10 Mutual Funds for SIP to invest in 2022
| Category | Mutual Fund Scheme | 1yr | 3yr | 5yr |
|---|---|---|---|---|
| Index / Largecap | UTI Nifty Index Fund | 27.0% | 20.0% | 18.0% |
| UTI Nifty Next 50 Index Fund | 26.0% | 23.0% | 16.0% | |
| Mirae Asset Large Cap Fund | 28.0% | 19.0% | 18.0% | |
| Axis Bluechip Fund | 24.0% | 21.0% | 21.0% | |
| Mid-cap Small-cap |
SBI Small Cap Fund | 43.0% | 29.0% | 24.0% |
| Axis Midcap Fund | 40.0% | 28.0% | 25.0% | |
| Flexicap | Parag Parikh Flexi Cap fund | 46.0% | 21.0% | 24.0% |
| UTI Flexi Cap fund | 34.0% | 27.0% | 23.0% | |
| Hybrid | Canara Robeco Equity Hybrid fund | 25.0% | 20.0% | 17.0% |
| Global | Motilal Oswal Nasdaq 100 Fund of Fund | 27.0% | 37.0% | – |
(Returns are annualised)
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Very insightful research and rewarding work
Hello Sir,
My name is Mayank Dey , I am 28 years old.
I seek an advice of yours for my portfolio strategy.
My investments are as :
SIP Folios –
1. Parag Parikh Flexi Cap Fund – 2000 ( 1year old)
2. Axis Mid Cap Fund – 2200 ( 1 year Old).
3. Quant Active Fund – 1800 (recently started)
4. Kotak Small Cap Fund – variable in between 1500 -1800 / month
Lumpsum Folios –
1. UTI hybrid fund – 6years continuing. (Now it’s underperforming in last 2year)
2. UTI MasterShare Fund – 2,40000 ( 4years continuing) , step up Sip variable @ 1200-1500/ month
3. UTI Retirement Fund plan – 5years Old ( 180000 ) – 3000
Underperforming funds – UTI Retirement fund
My question is –
1. Should I consider an ELSS fund in replace of UTI Retirement plan for long term benifit and for retirement corpus
2. Should I continue Quant Active Fund with lumpsum amount or replace it by a flexicap fund ?
3. I am looking to invest a lumpsum in UTI nifty next 50 index. Is it beneficial.?
4. Where can I measure if my portfolio is diversified or overlapped ?
5. If I have to replace UTI hybrid fund to some other peers of same catagory, what should I choose ?
Please if you kindly can suggest your views on this.
Hello Mayank, Good to hear about you
1) You don’t need retirement fund. Exit appropriately
2) If you are looking for tax savings, then go for ELSS fund (as a replacement for retirement fund). Otherwise, if it is purely retirement planning, just go for index funds. Since your retirement is after 20-30 years, index funds can generate stable 10% returns
3) Don’t invest in Nifty next 50 lumpsum as this index is highly volatile. Split it 3-5 parts and then invest
4) While you invest in mutual funds, just ensure you don’t invest in multiple funds from same category.
5) You can check aggressive hybrid funds list here. https://myinvestmentideas.com/best-aggressive-hybrid-funds-to-invest-in-2022/
Hello sir,
Glad to hear from you.
1. What is your view on flexi cap fund should I invest in any other or stick to parag Parikh Flexi cap.?
2. Are my investments on right track in terms of choosing funds that I have already invested in?
3. You didn’t mention anything regarding Quant active fund and the question I asked related to it.!
4. Is there any tool to measure my own portfolio overlapping?
I found one but that only shows fund vs fund overlapping cases.
You can stick to PPFAS flexcap.
Yes
Quant Active fund – continue
I am not aware if there any such tools
Thanks a lot for your cooperation and support.
Hi sir,
I asked you a lot of questions regarding Mutual fund earlier, I am now seeking another information regarding some queries of mine.
I want to churn my portfolio i.e UTI hybrid – Regular , UTI Mastershare , UTI retirement benifit plan( as of now it is in lock-in period )
I want to know about Mahindra manulife equity hybrid as it is a concise folio of ~ 50 funds. Risk ratios are well managed .. should I go for it …
Actually the corpus of mine is generated most in UTi Hybrid fund and it’s high expense ratio and returns are underperforming as I said earlier , now I am redeeming it to spread my allocation to rest of my said fund as lumpsum in staggered way.
As UTI hybrid and UTI mastershare have same sorts of stock portfolio, so as the UTI retirement fund.
Can I redeem my UTI mastershare fund and invest directly in other bluechip fund of good consistency and lowest expenses???
Lastly, if I have to choose a debt fund for short – term which one is most suitable in all weather..
Short term debt vs bond vs ultra sort term vs psu and banks.
Waiting for your reply and sorry for such long text Sir.
Thank You.
Mahindra manulife equity hybrid fund – Good fund – You can invest / continue to invest.
There are several good hyrbrid funds with low expense ratio. You can check the entire list one time (moneycontrol or valueresearch portals can help).
When stock markets are at peak, don’t redeem now and invest in another fund. First identify which funds you want to invest and do SWP (redemption) and invest in the fund which you are invested for next 9 months to 1 year. e.g. if you want to shift 10 lac, try doing 10k per month SWP in old fund and SIP in new fund
For short term, go for ultra short term debt fund as of now. I generally invest in icici ultra short term fund and hdfc ultra short term fund.
I want to invest in 2 mutual funds of 10K SIP per month for minimum 5 years please recommend 2 best options.
Hi Sir,
Currently i am investing in ICICI bluechip, HDFC mid cap, Franklin small cap, ICICI balance fund and Axis long term equity and accumulated 50 lakhs total .
I need one advise, for my son education i need approx. 5-6 lakh every year from 2025-2028.
Please advise me which is the better investment idea for me to start addition investment in conservative hybrid fund, balance (aggressive hybrid) fund, FD, RD , Debt fund(short or liquid).
Or shall i continue investing in my existing MF portfolio and i can sell when i need the money .
Please advise
Thanks & regards
Manoj
You can do in many ways
1) Your goal starts from next 3 years onwards. Since continuing in equity when you have short term goal is not advisable. You can shift this money to a hybrid fund or short term debt fund.
2) You can continue your portfolio and move 6 Lakhs every year from either this year or worst case from 2023 onwards to these hybrid/short term debt funds.
In case you are not comfortable with this approach, you can simply go with moving these funds to a FD which has zero risk
Hi Sir,
I am investing in Franklin small cap fund from 2014.
Now i see that no one recommending this fund and its also giving less return compare to Nippon, Axis, SBI etc. mutual fund.
Earlier every one was recommending this fund.
Please suggest if we can continue in this fund or switch to another small cap fund.
Its good fund, you can continue to invest. Check my multibagger mutual funds article published last week. This fund is also consistent performer. There are several good smallcap funds, hence every one might not be recommending all the funds
Hi Suresh sir,
I will be investing around 5 lacs lumpsum in March and topping it up further by another 5 lacs in June this year. The combined horizon is 24-30 months with a target to have a respectable return to buy a car in the later half of 2024. Please let me know how and where to invest the money. Which funds will be a safe investment for this horizon, if you could name a few to diversify.
Arpan, for 2-3 years investing in equity funds might not yield high appreciations 1) Invest in simple RD 2) Invest in ultra short term funds like ICICI Ultra Short Term fund or HDFC ultra short term fund.
Hello Sir.. I want to invest for a secure future of my daughter after 20 years. My goal is to have 1 Cr on her name after 20 years. How much should I invest monthly to achieve that goal?
Hello Dr. Suruchi, Good to hear about goal. You can plan in several ways. I will give two ways for simplicity.
1) Invest 20K per month through SIP in these funds for 20 years – At 12% annualised returns, you would be able to achieve 2 Crores
2) Invest 10K per month through SIP in these funds for 20 years. However increase this 10K by 10% every year. e.g. Rs 11,000 in 2nd year onwards, 12,100 from 3rd year onwards etc., – At 12% annualised returns, you would be able to achieve 2 Crores
Hi.Suresh KP
Thanks for timely article.
Please advise me for two queries where to invest in this uncertain economy.
(1) As I’m retiring at 58 in Feb22,
where to put my kitty to get non taxable monthly income to support my moderate life.
(2) As my daughter is sending her savings from US in her NRO/NRE account, cab wr put her USD in any SIP ?
It will be a great help
Best regards
PBX
Hello Parthiv, There are multiple ways to get regular income. One way could be to adopt two bucket strategy for your retirement money to get regular income. You can check this article. https://myinvestmentideas.com/2021/04/how-two-bucket-strategy-can-help-to-get-regular-fixed-income/
Regd your daughter savings, I would recommend you to invest in equity SIPs. You can consider index fund or largecap SIPs to start with.
Hello sir
Greetings. Iam a beginner to stock trading. i have opened an account with angel brking and i have invested as follows
Infosys – 3 shares
Coal India – 5 shares
Ongc – 5 Shares
Vodafone idea – 50 shares
Greaves cotton – 5 shares
1. Is this fine. or is there any other better method to maintain a better portfolio.
2. Every month iam planning to invest 10000 rs. can i buy more on present shares itself or i should go for new types.
I am not sure of intraday trading. so i have not yet tried that.
kindly advise sir.
thankyou
sowmya
Hello Sowmya, I don’t review individual stocks, hence would not be able comment on them
Hi Suresh
A Very Happy, Safe, Healthy New Year wishes for your and your family.
Please also write about best SWP plans, as like SIP people who have retired would like a systematic withdrawal plan MF that can provide good returns while supporting monthly withdrawal.
Which mobile app,(like ET money,GRoWW) suitable for investing in mutual fund ,How much transaction fees are demand by them
If you are investing in direct plans through some of these portals, it is free. You can use ET money, groww or Kuvera. There are many other 3rd party portals like this
Why my query is not listed in forum? I put my query yesterday I cannot see it.
Shree, it would get listed when I approve along with response. Generally we would do once in 24 hours.
Hi suresh,
I really appreciate your analysis on mutual fund.
Please help reviewing my portfolio.
I have been investing since 2015 and my goal to invest for 20 years and generate 25 lac. I am moderate to high risk taker.
1. Axis long term equity- Regular growth-2k
2. ICICI prudential value discovery fund- Regular – 2k
3. HDFC top 100 regular fund- 1k
4. Axis Flexi cap fund- Regular growth- 2k (Added 6 months ago)
5. Mirae asset midcap fund- regular plan growth – 2k (Added 6 months before)
Please advise if above scripts is suitable with my goal and if any changes required.please note last 2 fund holding plan 7-10 years.
Also advise difference between Regular fund and Direct fund and what its impact ? Is it possible to transfer from Regular fund to direct and what is the procedure?
My all scripts are Regular plan.
I would appreciate your review on my portfolio.
Please reply to my query.
Regular funds – Management fees + broker commission. However in direct plans only management fees would be there. You would save brokers commission ranging between 0.5% to 1.5% in a year. Just imagine if you invest for 10-15-20 years, you can save lot of money. Hence go for direct plans.
You cannot transfer regular to direct. You need to sell regular funds and purchase direct plans. It might attract tax. You can stop regular plans and create SIPs in direct plans if there is any tax to be paid now.
Coming to your portfolio, you can replace 4 with parag parikh flexicap or uti flexicap funds. For 5 you can replace with axis midcap or PGIM midcap opps fund etc.,
Hi Suresh, Thanks for your suggestions.
Is it good time to change from regular to direct fund? Will there be any loss if I switch fund and enter new at high price?
Can you please review the first 3 scrip in portfolio if any changes required.
You need to worry about tax implication only. When you sell say Rs 1 Lakh of regular funds, you can invest same amount in direct funds. Hence your value would not change (except transactional days) majorly. First 3 scrips contains tax saving fund, midcap fund and largecap fund. You can continue them.
Dear Suresh,
Thank you for such wonderful articles. Always helpful.
Could you please review/advise on my current funds.
Risk Profile – Moderate to High Risk. Time Horizon -10-15 years.
ICICI Prudential Equity & Debt Fund – Direct Plan-Growth -3000
SBI Equity Hybrid Fund – Direct Plan – Growth-3000
HDFC Hybrid Equity Fund – Direct Plan-3000
SBI BLUE CHIP FUND – Direct-Growth- 3000
Mirae Asset Emerging Bluechip Fund – Direct Plan- 5000
Kotak Flexi Cap Fund- Direct Plan- 3000
Axis Bluechip fund Direct Plan-5000
Mirae Asset Tax Saver Fund Direct Growth-5000 ( for tax saving)
——————————————————————————————————
My Spouse is investing in the below funds. Risk Profile – Moderate to High Risk.
Time Horizon -10-15 years
Axis small-cap fund direct growth-2500
SBI Small Cap Direct Plan-2500
Mirae Asset Emerging Bluechip Fund – Direct Plan-2500
Parag Parekh Flexi cap – Direct Plan-5000
Tata Digital Fund- Direct Plan-5000 (Recently added, thinking IT will grow in coming years)
Please share your thoughts on the above funds.
Thank you and Stay Safe,
Regards
Dilip
Hello Dilip, Good to hear about you. You have good funds, however try to compress among categories. e.g. you have 3 hybrid funds. Reduce it to 1. Same way, in largecap you have couple of funds, reduce this to 1. Coming to your spouse portfolio, it is good, however it is risky portfolio. It contains 2 smallcap + 1 large-midcap + 1 sector fund (4/5=80%). If you are okay with this, fine, else try to reduce some high risk and move some to flexicap
Sir very knowledgeable but still I’m confused.I’m beginner I have little knowledge about mf.i want to invest sip in the index fund where should I invest and how to invest.its necessary to open trending account and demat account or I go directly to AMC for investment.there is any app I can use.plz guide me.thank you
Hello Lalbabu, Without understanding anything in mutual fund, do not jump into investing. First go through our mutual fund articles. Once you understand basics, you can open MF account at various portals like Groww or Kuvera and invest in direct mutual funds based on your financial goals, tenure of investment and risk appeitte.
It was a fantastic knowledge. Thanks a lot for it but pls provide more knowledge about stokes .
Thank you Deepak
Excellent reading on how to pick mutual funds.
Thank you Ragini
I understand your analysis and I also do some H.W on you tube about this and conclusion is same as u described. But my question is I am a beginner I understand everything high risk moderate risk and low risk and sip plan . Kis ko kisme jana hai but my problem is how to invest where to invest how will I get return do I have to withdraw or it will auto credit? Which app will you prefer? Is there any charges to opening this account? How to open this account and what is demat account?
Or if I want to invest one time amount of 50k for 3-5 years where should I go? I mean where I invest for safe guaranteed return!
I know these are so many questions but I just got your article in my recommendation and go through and check that u answer many . Can you help me as beginning?
Hello Kiran, If you are beginner to mutual funds, you can register at Groww App or Kuvera App which are simple to use. You can always switch to any other mutual fund platform without any hassles. For 3 to 5 years, investing in equity could be riskier. If you still want to invest, you can consider hybrid fund indicated in my article. These would not give guaranteed returns.
Kindly suggest me if the sectorial fund is safer to invest in? I learn that thematic funds perform in cycles, and is it good time to invest in technology or infrastructure funds?
Hello Rohit, Yes thematic mutual fund performs based on specific cycles and should be avoided. Take Pharma funds which gained a lot till 2016 and has been underperforming during 2016 to 2020. Again there is sudden spike in returns from 2020 onwards.
Hello Suresh ji,
I just started investing in SIP mode since Oct 2021.
Below is my portfolio. I have moderate to high risk and potential to increase monthly SIP too.
This is primarily for new house & retirement in next 15 years.
Can you please advice if I need to drop something or to increase amount montly in any of them?
Parag Parikh Flexi Cap Fund Direct Growth – 1k
Aditya Birla Sun Life Digital India Fund Direct Growth – 1k
ICICI Prudential Technology Direct Plan Growth – 1k
Axis Triple Advantage Direct Plan Growth – 2k
Axis Flexi Cap Fund Direct Growth – 1k
Kotak Debt Hybrid Fund Direct Growth – 1k
ICICI Prudential Bluechip Fund Direct Growth – 1k
SBI Banking & Financial Services Fund Direct Growth – 500
Axis Midcap Direct Plan Growth – 2k
I know above are not properly invested and its just starting so without loss I can remove some of them and increase the other or invest on new ones for long term.
Basically, I want the outcome from SIP for traveling, new house and retirement.
Really appreciate if you could suggest.
Thank You,
Yogesh
Yogesh, Good that you have goals identified and working towards that.
1) You have 2 funds in technology/IT sector. You can exit any one of them
2) You have 2 flexicap funds. You can exit Axis flexicap
3) Axis triple advantage is multi asset fund. Unless you want to invest in such funds for portfolio diversification, you can exit and invest in equity funds.
You can continue the remaining funds.
please send me the details of analysis regarding to mutual fund at my mail id
regards
rajesh sethi
Rajesh, Analysis is already there in the article. Are you looking for anything else?
Out of 10 funds recommendation, 5 funds are from public sector fund houses.
I wonder why and how fund schemes from say, HDFC, ICICI and Kotak were not included/considered in the list.
Does it indicate that as far as mutual funds performance is concerned, public sector fund houses are safer and better in returns also (risk adjusted return). Is it also not because that lately, all PSU stocks have done wonderfully well (due to variety of reasons) and may be that these public sector fund houses had large portfolio of PSU stocks and that tilted the performance/return.
Hello Kamalji, I indicated in the post that there many good performing funds. If I increase the list to top 20 or top 30 or top 50, the list would increase.
This list is not based on PSU AMC or non PSU AMC performance. e.g. UTI index funds has low expense ratio of say 0.33%. However, Navi index fund that came has lowest expense ratio of 0.06% for Nifty 50 and within 6 months they are charging 0.12% for Nifty Next 50. It is impossible for any AMC to sustain with low expense ratio. Last year UTI and HDFC has increased the exp ratio. These are large AMCs and able to sustain with such low exp ratio, hence given preference.
This is not just based on 1 year performance, but whether they are consistently able to deliver risk adjusted returns in the medium term to long term.
Finally, filtering 10 funds only was a tuff job for me (I was holding this article for more 1 week) when hundreds of funds are top performers
Hello Suresh Sir
I am following your articles since last 4 years and have started investing in SIP mode since Jan 2021. Below is my portfolio. I have moderate to high risk and potential to increase monthly SIP too. This is primarily for retirement in next 20 years. Can you please advice if I need to drop something
Axis Bluechip – 3.8k
Kotak Equity Opportunity- 2.6k
SBI Equity Hybrid – 2.4k
Motilal S&P 500 – 2.4k
ICICI Pru Nifty Next 50 – 2k
Nippon Small Cap – 3k
Parag Parekh Flexi – 2.5k
Pgim midcap opportunity – 2.3k
Also can I use these itself for my kid’s education goal in 15 years time?
Can you olease advice if I need to add/remove something from above. All are Growth Direct plans
I responded to your other query
Hello Zain, Good to hear about you. Since you are long term investor, all these funds are good except for ICICI Nifty Next50 where the expense ratio is 0.8%. There are similar index funds where the expense ratio is around 0.3% (e.g. UTI Nifty Next50 fund has 0.33% and HDFC NN50 has 0.3%). Since these funds track the index, there is very little role of fund manager. Hence we should not pay high expense ratio for such index funds. With this single change, you can earn 0.5% higher returns per year which would be 10% higher returns (if you consider 20 years)
Thank you so much sir for your reply. So can I continue as is in all the other funds? As I dont have any debt fund, do I need to add one? If yes which would you recommend?
Also the other query about my kid’s edication plan. Can I do that investment also in these funds itself or take some specialised one?
Yes. Unless you want to do portfolio rebalancing, you don’t need debt fund. You can continue to invest in existing funds for your kids education or any other goal if it is over 10+ years
Hi suresh, I appreciate your analysis on mutual fund.
Below is my script and have been investing since 2015, please advise if there any changes required in script. All scripts are Regular fund, please advise how can I migrate from Regular fund to Direct fund and what is impact?
Please note my goal is long term: 20 years
1. Axis long term equity fund – Regular growth-2k
2. Icici pru value discovery fund- Growth -2k
3. HDFC top 100 fund-1k
4. Mirare Asset midcap fund regular plan growth – 2k
5. Axis Flexi cap fund – Regular Growth – 2k
Last 2 scripts added 6 months back nd goal is for 7-10 years.
Please advise.
You can continue to invest in these funds as your goal is till 10 years. If you move from regular to direct, you need to pay any income tax applicable during the financial year. If this is less than Rs 1 Lakh, you should go ahead as capital gains on equity upto 1 Lakhs is zero.
Hi Sir, can u plz review this
1.ICIC bank technology fund
2.Axis small cap
3.Invesco india Infra fund
4.Nippon india small cap
5.SBI banking and finanial Services Fund
any thing need to be added or removed sir
Thanks ,
Prem
Hello Prem, You have not indicated your risk appetite, financial goals and how long you want to invest. Without these, whatever I advice would be generic in nature. Looking at this portfolio, it is very high risk.
1) Technology funds / banking funds / sector funds are cyclical in nature. Means, they might perform well now, but might underperform in medium term. If you are investing for medium to long term, your returns would be screwed.
2) You have 2 smallcap funds. You can reduce this to 1.
I have invested in the below funds. in name of Self wife & Father.
Self 2011
Wife 2016
Father 2017
Is there any fund that you think is unnecessary? I feel there are too many that I’ve invested in. Hence, would appreciate your advise and guidance. Thanks in advance.
SELF
1) HDFC Balanced Fund – Reg Plan – Growth Option
2. ICICI Prudential Bluechip Fund – Direct Plan – Growth
3)IDFC flexi req Plan growth
4) Parag Parikh flexi cap direct growth
5 HDFC TOP 100
6 )HDFC TAX SAVER
7) AXIS LONG TERM EQUITY FUND
8) SBI small cap
9) SBI focused equity fund
10) Nippon india balance advantage Fund.
11) Nippon gold saving fund
12) AXis Mid cap fund
13) Invesco Tax SAVER
FATHER NAANE
1) LT Value India fund.
2) SBI flexi cap fund
3) Parag Parikh flexi cap direct growth
4) AXis Mid cap fund
5) Aditya Birla Sun Life Frontline Equity Fund – Regular Plan – Growth
WIFE
1) ICICI Prudential Value Discovery Fund – Direct Plan – Growth
2). Aditya Birla Sun Life Frontline Equity Fund – Regular Plan – Growth
3) ICICI pru Index 50
4) Axis Banking &PSU Debt Fund
5) Canara Robeco Blue chip fund
6) Kotak Gold Fund
7) SBI BLUE CHIP
8) ABSL FLIXY FUND
9) MOTILAL OSWAL NASQDIX 100
You have too many funds at individual portfolio level.
Yours
1)2 flexicap funds. You can exit IDFC Flexicap fund and continue Parag Parikh
2) 2 Balanced advantage fund – These are good if you are looking for regular income through SWP, else shift to equity fund
3) Too many tax saver funds. If your sole purpose is only tax saving, you can invest in 1-2 funds only e.g. axis long term fund could be an option to retain
Your father
1) Retain only one flexicap. You can exit SBI flexicap
Your wife portfolio
1) Don’t need 3 bluechip/largecap funds (2, 5 and 7). You can retain 5 and exit remaining (check taxation for all these cases)
2) PSU debt fund – Unless you are investing in this fund only for portfolio rebalancing between debt and equity, fine,else you can shift this to equity fund.
Dear sir i had heard about Mutual Fund but i don’t how is it invest and where to invest so please guide me
Welcome to mutual fund investing. Can you pls inform what is your risk appetite (high risk, medium risk or low risk), any financial goals and how long you can invest?
Hi Suresh,
I regularly follow your post and to be honest I was really waiting for this almost a month now 🙂
Below are the MF, I am investing in a SIP mode from last 8 yrs. Do you recommend continuing, stop/switch to any these funds and switch to any of the latest fund you mentioned?
1. HDFC Balanced Advantage Fund – Direct Plan – Growth Option
2. ICICI Prudential Bluechip Fund – Direct Plan – Growth
3. ICICI Prudential Value Discovery Fund – Direct Plan – Growth
4. Aditya Birla Sun Life Frontline Equity Fund – Regular Plan – Growth
Lumsum invested almost 3 yrs back
1. HDFC Short Term Debt Fund – Direct Plan – Growth Option –
In addition to this I am already investing in Parag Parikh flexi cap and Motilal Oswal Nasdaq 100 Fund of Fund.
Many thanks in anticipation.
Good to hear that you are investing in the last 8 years. These are good funds. However, I would recommend you to tie them to your financial goals. e.g. Short Term debt fund is good to get returns in the range of 5% to 8%. However if you are using this for retirement planning which is there in next 10 years or 20 years, it would be disaster as it would not provide inflation adjusted returns. Pls review your portfolio based on these parameters and provide your queries.
Many thanks.
As its already 3 yrs for my debt fund I will sell and reinvest in long term funds.
Are all my others funds are for long term ?
I have two goals.
a. child higher education which is after 10 yrs
b. retirement after 21 yrs.
Could you please let me know whether I can continue SIP with these funds for another 10 to 20 yrs or is it recommended to pay another few years and they leave the funds to grow until I reached my goal?
Since your goals are beyond 10 years, you can invest in equity funds based on your risk appetite.
1) Funds indicated in 2,3,4 are good equity funds, you can continue.
2) This Balanced advantage fund is good when you want to do SWP (withdraw) on regular basis and looking for some income. This fund invests in equity + debt + holds some cash. Since you are long term investor of 10+ years, you can exit this fund (consider taxation part) and invest in equity fund. When you look for regular income after 10 years or 20 years, you can consider such funds.
Lumpsum invested by you can be moved to equity fund (use STP) for 10-12 months.
Ton of thanks.
By exiting from a fund I will get a lumsum amount. How it will be if I will invest in a equity MF in one go or you recommend the SIP mode only?
Hello Karan, You can invest in short duration fund and do systematic transfer plan to equity fund for 10-12 months. Consider tax aspect before existing any fund
Hi Suresh,
I am willing to invest for below goal. And I am high risk taker. Currently I would like to invest 2LAC PER MONTH in SIP for below goal. Could you suggest which SIP is good to go for better returns ratio to be split fund wise.
I’m also interested to invest in equity if you can suggest some good script which will be have good returns after 5-7 year if we invest now.
1. Kids Studies (monthly SIP 100000 for a period of atleast 10 years)
2. Retirement (monthly SIP 100000 for a period of atleast 10 years)
Awaiting your suggestion on same.
Thanks
Good to hear about you Bunty. You are high risk taker and want to invest in 10+ years
1) You can invest in UTI Nifty index fund + UTI nifty next 50 index fund. These two funds can provide stable returns
2) Since you are high risk taker, you can add SBI Smallcap Fund + Axis midcap fund + Motilal Oswal Nasdaq 100 Fund of Fund. Note these are high risk high return funds, hence you can invest some portion like 20% or 30% of your overall portfolio in these funds.
3) You want to invest in 5-7 year also. You can consider hybrid fund indicated in the article + some portion in largecap funds
Thanks Mr. Suresh for your suggestion. I have noticed you don’t mention for any one flexi fund to invest, isn’t is good to add any one flexi fund in portfolio.
Which app you suggest to use for invest in direct MF in SIP mode. Whether its good to go for any one app or its better to use 2-3 different app for direct MF investment.
Please suggest.
There are hundreds of good mutual funds. What I suggested to you are only few. You can add largecap funds like Axis blue chip fund or SBi blue chip funds. You can add flexicap funds like Parag Parikh flexicap fund or UTI flexicap fund etc., The list goes-on.
Hi Sir,
I have invested in the below funds. Is there any fund that you think is unnecessary? I feel there are too many that I’ve invested in. Hence, would appreciate your advise and guidance. Thanks in advance.
1. Canara Robeco Equity Hybrid Fund Direct Plan
2. Franklin US Opportunities Fund Direct G
3. DSP Equity Opportunities Fund Direct Plan growth
4. Parag Parikh flexi cap direct growth
5. Axis Banking &PSU Debt Fund
6. Nippon india Index Fund – Sensex plan
7. Canara Robeco Small Cap fund
8. UTI Nifty Index Fund
9. HDFC Hybrid Equity fund Direct growth
10. Nippon india Liquid Fund
11. Mirae Asset Tax Saver fund
12. IDFC Tax Advantage ELSS Fund
13. Canara Robeco Equity Tax Saver Regular Payout
Mansi, Like I indicated in the article, you need to pick-up mutual funds based on your risk appetite, financial goals and how long you can invest. Without these details, whatever advice I give, may not be meaningful. Pls provide these details for me to respond appropriately.
Sir, many thanks for your reply. My risk appetite for now is aggressive and moderate as I think I can stay invested for next 7-8 years (assuming I’ll be working). I’m 38 now, with a senior citizen parent to look after and financial goal is to grow wealth. I also invest in PPF & NPS.
Appreciate your advise if the funds I mentioned in my initial comment are all required or there are some unnecessary funds that I can do away with? Thank you.
Mansi, There are too many tax saving funds. If the lock-in is over, you can check if may want to consolidate into lower count of equity funds. Beyond this, you have hybrid funds, international funds and large cap funds. You can continue to invest.
There is liquid fund. If you parked it there to use for emergency fund, okay, else move them to equity funds.
There is PSU debt fund. If you have invested for asset rebalancing, fine, else move them to one of the equity fund
Consider tax aspect while moving between the funds.