Investments in Largecap and Midcap mutual funds for 10 yrs !

POSTED BY Manas ON November 12, 2013 9:40 pm COMMENTS (11)

I am following this forum for quite some time now and thanks to you guys for giving some real infos about investment. Just need some suggestions on Mutual funds.

I want to invest 5k p/m for atleast 5 to 10 yrs both in Largecap and Midcap funds. Please suggest me how could I proceed. And yes, do I need to look at the NAV of the funds because what I see is HDFC top 200 or Franklin India Bluechip growth is doing good from last 10yrs but it’s value is more than 250 now. So does this have an impact going forward if I invest on it.

11 replies on this article “Investments in Largecap and Midcap mutual funds for 10 yrs !”

  1. hemanthchandra62 says:

    You can also try PPFAS Long Term Value Fund…. which would be good for long term investors

  2. ashalanshu says:

    Dear Manas, how about reading this discussion before moving ahead?

    jagoinvestor. com/forum/finacial-planning-faqs

    Thanks

    Ashal

  3. Ashish Garg says:

    Hi Manas,

    You may look at the following funds:

    1. Quantum Long Term Equity (Large & Mid Cap)
    2. Franklin India Bluchip (Large Cap)
    3. IDFC Premier Equity

    Suggest you also check out the website called http://www.valueresearchonline.com and see the performance of all funds listed by you, see their portfolio and compare how much duplication they have among themselves. Best way is to have funds which have performed well consistently and have lesser duplication of holding in their portfolio.

    Above two funds have a bit of duplication, but then you still get to invest in 40+ stocks to invest in through these 2 funds.

    I myself have been investing in Franklin India Bluechip fund for quite sometime now.

    Ashish Garg

  4. Manas says:

    Hi Ashish,

    Sorry for the late reply and thank you for giving me some nice suggestion :). I have opted for the Click2Protect term plan of HDFC. Now coming to Equity side, as I have mentioned above I will invest 2.5k each in 2 funds every month. I did some investigation (with my young intelligence. hehe) and here are the list. Please help to find any 2 funds. Thanks.

    1. DSPBR top 100
    2. Quantum Long Term Eq.
    3. Franklin India Bluechip
    4. HDFC top 200
    5. HDFC Prudence
    6. IDFC Premier equity

    1. rajkanwar321 says:

      Hi Manas, Hope you are happy with the decision you have made. If you are still looking for a better option in equity funds then I would like to suggest you to also check with Birla Sun Life Diversified Equity Fund. I myself have a plan in the same company. Hope it helps.

      http://mutualfund.birlasunlife.com/Pages/Individual/Our-Solutions/WealthCreation-Funddetails.aspx?SchemeShortName=BSL%20Frontline%20Equity%20Fund&Highlighted=Yes

  5. Ashish Garg says:

    Hi Manas,

    For MF, you may look at:
    1. Quantum Long Term Equity (Large & Mid Cap)
    2. Franklin India Bluchip (Large Cap)

    Check out various questions asked here on selection of MF, you will find many more good suggestions to choose from. Don’t go with more than 2 funds in Equity category.

    Regards,

    Ashish Garg

  6. Ashish Garg says:

    Hi Manas,

    Suggest if you consider the decision to discontinue some of your LIC policies (or make them paid up). Buy a term insurance plan via online mode so as to cover you suitably. 90K for LIC policies a bit too much and I am sure your cover would not be more than 18-20L if all put together, which is very less if compared to your annual salary. You should be insured for about 1 Cr now, so go for an online term plan.

    In case you discontinue / make LIC paid up, the amount you would be paying as premium be saved and you can look at opening an PPF account with that money or look at part PPF and part SIP.

    Regards,

    Ashish Garg

    1. Manas says:

      Ashish,

      Thank you for your valuable suggestion. I have decided to keep only the Jeevan Anand and make paid up the rest of the policies. Just wanted to ensure if I do that, then how much I am gonna have the loss(If I withdraw the money after maturity only i.e after 15 years).

      And how about taking the AEGON Religare iTerm as a term insurance as it is providing the insurance up to 75 years of age. Need some suggestion on the MF side as I want to invest on the equity for a longer period. Thanks again. 🙂

      1. Ashish Garg says:

        Hi Manas,

        The loss won’t be huge as you are making policies paid and not surrendering / discontinuing it. You may check the same with LIC barnch for exact amount and details on this.

        As for Aegon Religare I-term, choosing an insurer is your personal choice so you may evaluate all parameters before going with any. Meanwhile, when you say AR (aegon religare) is offering insurance upto 75 yrs, what’s the need for you to be insured till that age. Insurance is a safety cover and not for making money. You should insure yourself till the age you see yourself earning. Once you stop earning, there won’t be any financial loss to your family in case something happens to you. In fact after your retirement, payment of the premium would only be a burden and eating money form your savings.

        Assume you still want to insure till 75 yrs, what if you die in 76th or 77th yr, you have paid premium till 75 yrs from your savings and still family wont get anything. Think about it and then decide.

        P.S.: I myself has got i-term for self and wife and also click2protect from HDFC.

        Regards,

        Ashish Garg

  7. Manas says:

    Hi Manish

    Thanks for your quick response. I went through the link you provided above and it was pretty much helpful. However I thought of explaining myself in a more detailed way. I am 30 yrs old now and earning 70k p/m. I am paying 90k p/a for my LIC policies(Jeevan Anand, Jeevan Saral and Money back), which were started about 3/4 years ago to save the tax(80C). But after going through this site I realized my mistake investing that much in LIC. Also I have a RD of 3k p/m in SBI from 2 years. But unfortunately I don’t have a PPF account till now. Therefore I had a plan to invest 5k in PPF and 5k in equity as a SIP for at least 10 years. Now please suggest me some funds which w’d give me near about 12-13% in a long run(with moderate risk).

  8. Hi Manas

    If you are just starting ,I would suggest you slow down and please start with Recurring deposits as of now if you want to play safe, you first get comfortable with the whole personal finance. If you are just new to mutual funds , then start with balance funds or pure equity diversified funds (if you can take high risk) . I am just thinking that some bad experience should not leave a very harsh impact on your views on equity and you are then always away from mutual funds and stocks .

    You should also read an article written by me on Investing for beginners – https://www.jagoinvestor.com/2012/11/investing-for-newcomer.html

    Manish

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