Please help me to select a fund

POSTED BY Sameer Goel ON February 18, 2013 12:44 pm COMMENTS (7)


Hello Team Investor,

First of all thanks a lot for providing a plateform where we can learn and educate ourselves to become a good investor.

Myself Sameer, age is 32 and the monthly salary is around 30K. I have a term insurance of 50 lacs from Aviva, A couple of LIC policies of around 3 Lacs and have some cash of around 1 lac.

I have started investment in MF 6 months before. I am investing 1000 Rs as a sip in HDFC Prudence Growth Fund. Now i want to take one more sip for a long period. My long term goal is to receive a handsome amount after 15 yrs at the time of my daughter’s marrige.

I have read a lot on differ mutual fund an all these funds are looking good. I want a help from you guys to select a fund for me. The choices that i have made are :

UTI Opportunities (G)

Birlasun life Front line equity fund (G)

SBI Emerging

Franklin India blue chip

ICICI Discovery (G)

Could you please help me to select a fund to fulfill my goal.

Many Thanks,



7 replies on this article “Please help me to select a fund”

  1. Dear Sameer, please read the PPF related articles of dear Manish in the main site – to understand this yly interest thing. Yes if you do invest on yly basis between that 1st to 5th april window, you ‘ll receive full year’s interest.

    Regarding your LIC policies, w’d you like to amputate a finger today or an arm tomorrow? Please prefer your way. These policies can not provide the returns you are assuming or in line what your goals actually need?

    Regarding Eq. MFs, please start investing more into your existing fund as of now. If you want to add one more fund, My personal choice ‘ll be Quantum Long Term Eq.



    1. Sameer Goel says:

      Thanks Ashal for your valueable suggestions.

  2. Sameer Goel says:

    Hi Ashal,

    Thanks for the response. My LIC policies are around 7 yrs old thats the reason i have not surrendered it. These policies are for the 20 yrs of period. The term insurance, i have recently purchased.

    In case of PPF, i was not aware on the scenario that you told me “12K in one lump sum in April every year between 1st to 5th to get full year’s interest?”. It means if i will submit any amount between 1st to 5th of april, i will receive the full year’s interest?

    Could you please suggest me on Eq. MFs. Which funds are good to go for a long term?

    Sameer Goel

  3. Dear Sameer, @ 30.K mly income, you should have an emergency fund of around 2L Rs. at least. In case of PPF, why are you investing 1K mly & not 12K in one lump sum in April every year between 1st to 5th to get full year’s interest?

    As you are already covered for Term insurance of 50L Rs. please surrender those LIC policies & divert that 14K prem. into Eq. MFs.

    Please update with your views.



  4. Sameer Goel says:

    Hi Ashal,

    Below are the details:

    Emergency Fund: 1 Lac
    PPF: 1000 Rs each month
    PF: Apprx 4000 month (outside of 30 K)
    Loan: Zero
    Rent: 8 K per month
    LIC: 14 K yly
    Medical Insurance: By office

    Please let me know if you would require any more information?


  5. Dear Sameer, @ 30K mly salary, your yly income is around 4L Rs. what about your emergency funding, loan liabilities, PF & PPF & other investments? How much prem. you are DRAINING on those LIC policies?

    Please answer.



  6. Receiving a ‘handsome amt’ is possible with MFs. However you must have a good idea of the total expenses if you were to conduct the marriage today. Then you need to calculate at least 10% inflation how much this expenses will be 15 yrs from now.

    You can use this child planner to do that and also check if you have enough life insurance

    For a 15 yr period don’t expect a return of more than 12% from MFs. You cannot invest 100% in equities so you would need a debt component. There are many ways of doing this.

    Simplest would be to increase the investment in HDFC prudence which is a good balanced fund. You minimize risk and get decent returns. You could then invest a small amt each month in a small- and mid-cap fund like IDFC premier equity. Wherever you invest please monitor performance at least once a year.

    Do review the worth of your lic policies.

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