Need help in selecting Mutual Fund for Long term investment (10 years or more)

POSTED BY Sandip Pawar ON March 25, 2013 1:58 am COMMENTS (13)

Hi,

I am currently doing investment in HDFC Top 200 MF (Direct-Growth Option). Started 2 months back. I didnot opt for SIP but doing additional purchase monthly according to market. Investing 4k per month.

How should be someone’s MF portfolio to have proper balance ? Can anyone please suggest me few more good funds to invest in ?

13 replies on this article “Need help in selecting Mutual Fund for Long term investment (10 years or more)”

  1. Ashish says:

    I am new in the Mutual Fund market and looking to start investment. I have selected 3 Mutual funds for starting investment. I want to start in SIP mode with 3000 each i.e 9000 monthly overall. I am targeting for next 15 years. I am 32 years old. Needs suggestion on my portfolio selection. Please suggest with better options and better plans.

    –Large Cap
    SBI Blue Chip Fund (G)
    http://www.moneycontrol.com/mutual-funds/nav/sbi-blue-chip-fund/sip-calculator-MSB079.html

    –Mid/Small Cap
    JPMorgan India Mid and Small Cap Fund (G)
    http://www.moneycontrol.com/mutual-funds/nav/jpmorgan-india-mid-and-small-cap-fund/sip-calculator-MJP007.html

    –ELSS
    Axis Long Term Equity Fund (G)
    http://www.moneycontrol.com/mutual-funds/nav/axis-long-term-equity-fund/MAA011

  2. Hey! Today there are various mutual funds available like SBI, HDFC, ICICI, etc. I personally prefer SBI Mutual Fund which works as best investment option for me. You may checkout their website for complete info about Mutual funds how to invest, NAV, performance, dividends, etc. You may invest in mutual funds online with their website http://www.sbimf.com I hope it helps 🙂

  3. Dear Sandip, the 2 funds suggested by me are my choice, you may op out of your own choice. yes fund manager may play a role in the performance of the fund.

    thanks

    Ashal

  4. Sandip Pawar says:

    Hmm.. Their portfolio has overlapping stocks.

    While selecting MF, should we consider their Fund Manager ? Performance of any fund should also be dependent on their fund manager. Isn’t it ? So can it happen that different MF having common underlying stocks in its portfolio, would yield return in different range ?
    In past comments I found you recommends Franklin India Bluechip & Quantum Long Term Eq. fund growth option only 🙂 Should I go with Franklin India Bluechip as its pure large cap and I already have large-mid cap (HDFC TOP 200) ?

    As, FFC suggested above, I gone through the link he given, I didnot find good returns in small-mid cap funds. I already investing in PPF. Then what should be my next MF to have diversification in portfolio ? Please suggest.

  5. Dear Sandip, please check the underlying portfolio of the 2 funds & look at the overlapping stocks & then answer – Are you really diversified?

    Thanks

    Ashal

  6. Sandip Pawar says:

    I revisited my decision and now thinking to invest in –
    DSP BlackRock Top 100 Equity Fund – Direct Plan (G) .

    I already have HDFC Top 200 – Direct (G).

    Should I go ahead ?

  7. Dear Sandip, your personal engagement & discipline is key here. So it’s up to you how much efficient you are?

    Thanks

    Ashal

  8. Sandip Pawar says:

    Dear Ashal,
    I am totally agree with your point. But I have good control on myself. And whenever I feel that I am going out of track would surely opt for SIP.

    Other, I was looking into other MF, I think Canara Robeco Equity Diversified and Birla Sun Life Frontline Equity is doing somewhat good in last 2-3 years. Is it good to have one of them ?

    FFC, can you please elaborate on “Have enough % of debt. With reg. to MFs” ?

    1. A poftfolio for a long term goal should typically have 30-40% of debt instruments. This can be PPF or debt mutual funds. A small % of gols is not a bad idea.

      If you search ‘how to choose a debt mutual fund’ you will get several good articles.

      1. oops. Sorry I meant gold. not gols!

  9. Sandip, as long as your are disciplined I think what you do is fine. I too do the same. I will monitor markets for no more than a week. I will invest irrespective of market state at the end of that period.

    First be clear about your goals and risk appetite. The invest according to time frame and diversify. Have enough % of debt. With reg. to MFs. top 200 is a good fund. You could add a mid-small cap fund like IDFC premier equity and invest a smaller portion in it.

    You could have a look at this to see how to choose a MF

    http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/

  10. Dear Sandip, why are you not opting for automated purchase either thru SIP or STP. sooner or later, greed ‘ll win over your discipline & you may not purchase at all in few months.

    Thanks

    Ashal

  11. Sandip Pawar says:

    Just to add above, even if I have not opted for SIP, I have decided to invest in MF monthly by monitoring Fund’s NAV value. This month, NAV got down and I invested at lower NAV. In case in next subsequent month, even if NAV did not come down, I would surely do additional purchase.

    Does this method sounds good ?

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