Sir, you have sufficient long period of investing.
So I suggest you to go for equity focused funds with good track record of high performance even during a falling market and the fund manager is well experienced. You are requested to study our Categorywise fund-track record to decide about the funds.
Since you wish to invest Rs. 35000 permonth, I suggest, you go for 3 funds with allocation of Rs. 10000,10000 & rs. 15000. Do understand the returns of the Equity funds may fluctuate over the period, yet in the longer period such investment will bring in much higher returns as compared to PPF or fixed income investments.I believe in the next 3 years, your funds will start showing decent returns.
Dear Mr. Oza, You have not mentioned your question in detail.
HDFC Balance Advantage fund is open ended Nifty50 hybrid fund with very large AUM of Rs. 43079 crore. Compared to its benchmark index and other funds of its category, it is well managed and garnered higher return. Only issue is its expense-ratio is somewhat high at 0.99%. ICICI Asset allocator fund charges only 0.13% as expenses and during the period of 3 years and five years, it has earned return equivivalent to HDFC Balance Advantage fund.
However do understand that compared to Equity focused fund, Hybrid fund bring in lower returns. So you have study your overall portfolio and decide the allocation among various categories.
It is never too late. You should start now and if you plan to retire by 60, you can still invest for another 20 years which is long enough period for equity to bring strong returns.
So start investing in some good performing Equity fund. Donot just rely on last one year returns, also check the consistency of the returns for the periods of 5 years, 10 years and 20 years and you will definately find some good equity funds. you take help of our Scoreboard to identify such good funds. I suggest you allocate some of your funds to Midcap funds, or Nifty next50 funds which have offered better returns in the past.
I would say that your decision to invest in NFO is partially wrong .I am not aware, whether you have regular studies of the stock market or not. If you have regular study of the stock market, you must be aware that the markets world over are showing downtrend and in spite of this knowledge, if you have made investment in Equity NFO, then you have made a mistake.
However, if you have no knowledge of stock market trends, then your decision to invest now in NFO can be excused as Ignorance.
your thinking is partially correct. Yes, to some extent Gold is considered as an hedge to inflation and at the same time, the value of Gold fluctuates depending on many other factors, such as liquidity in the market, interst-rates by the leading economies etc. At present, I believe that due to hike in interest rates by the US federal reserve, the price of Gold are showing down trend and such downtrend will continue for next few months.
Accordingly I suggest to defer your decision to invest in Gold funds, for few months, till the down trend stops.
REITS ( Real Estate Investment Trusts) are the derivation of commercial rental yields by investment made in those properties. The rental yield as of now is not very high and the possibility of a good appreciation in your investment over a period of 10 years is not likely. Compared to REITs, the sensex and Equity funds have been doing excellently well. So in that sense, the investment in Equity funds can turnout to be more rewarding as compared to REITs.
SIP enables an investor to average out the cost of his investments via disciplined purchases, particularly when the market is down. If markets rally, the NAV increases and the investor gets fewer units for each subsequent SIP instalment. The reverse happens when the market corrects. When you accumulate units in a correction phase, you get more units while prices are down. Hence, you should continue your SIP if you are investing for the long term (more than seven to ten years) as you would benefit from buying units cheap. You should evaluate the performance of the fund vis-à-vis that of its respective category peers. If a fund has been performing poorly on a consistent basis, you may switch to a better performing one.
The NAV of gold ETFs as disclosed by mutual funds is based on the prices of the underlying assets and the number of units in the ETF. Gold ETFs do not have any lock-in period and can be sold on the exchange or directly to the mutual fund. Since the minimum amount for a direct transaction with the mutual fund is high; for retail investors it is best to sell their units on the secondary market platform.
A nominee cannot invest in the investor’s account, post the investor’s demise. A nominee can claim the units by completing the necessary formalities; such as completion of the KYC process, proof of death of the unit holder, signature of the nominee duly attested, and such other documents as may be required for transmitting the units in favour of the nominee.
After the transfer of the units, your son can hold the investments under his name and may invest further. In case no nomination is made, the units would be transmitted to the account of the legal heir(s), basis whether the deceased person has left behind a Will and as per applicable succession law.
Evaluation of Mirae Assets Focused Fund
First we will provide you with some facts and then we shall give our guidance.
This Scheme was Launched in May 2019
It manages Rs. 8256 crore at present.
Investment Pattern :
The fund has invested in 30 scrips and its major focus is on Finance,technology and Energy sector where it has invested 31.01 %, 15.02%, 9.28 % respectively of its funds.
Allocation of Funds
In Giant stocks : 45.54%
In Large Cap stocks : 23.10 %
In Midcap stocks : 27.32 % and
In Small Cap stocks : 4.03 %
Past Performance:
Fund has provided 30.42 % return p.a. since its launch.
During last one year, it has provided return of 34.92%
Our Observations:
Considering expectation of strong trend at the stock market during 2022,, we expect select large stocks to perform exceeding well .As per the objectives, the fund has higher focus on large cap as well as Giant stocks. Accordingly, this scheme may provide you good returns in the next year. However SBI focused Equity Fund,Parag Parikh Flexicap fund which manages much higher sum has earned much higher return during last one year and during other time frames. so, we suggest You should also consider alternative fund houses along with this fund.