Mutual Fund Queries Answered For Viewers | Investment Ideas With Shweta Jain | The Money Show

Alright, so let's begin the show with our viewer queries because you might be having a financial portfolio, but then to give the right direction to your investment, which should be aligned to your investment goal, you really need guidance. And today on the show, we will be having such viewer queries where viewers will be joining us live on the phone line. And just in case you want to send across your questions, you can do that as well on our WhatsApp number and e-mail ID. And let's welcome our guest today I have Shweta Jain from investography will be answering all your queries. Shweta, good evening and welcome to the show. Let's take our first viewers query. Shweta, the question is from Ashok and Ashok says that he's looking for a mutual for investment for five years and which private bank in India offers best returns after five years. So that's his question. This I think it's a mutual fund query question. But then I also want to wanted to understand the link between which private bank he wants to, you know, get into. I mean, I think he's talking about mutual funds of fund houses backed by a bank. So just in case, let's decode his question in whatever way you are trying to you're able to understand it. Shweta, so OK five years time we don't have on the phone line. So what will you recommend? What kind of strategy would you recommend? Yeah, hi Kavita. It is the a very confusing question. So many interpretations. One like you mentioned and my interpretation was that he's confusing getting confused between mutual funds and FTS or he wants a scheme which is similar to an FT and what kind of best returns would be given. So it's it's very confusing question all I would interpret in a way that which scheme or which type of fund can give him the best returns for in five years time horizon without any other information whether about his age about his goal. I think I'll just go with a balanced advantage kind of a fund because if it's a debt fund, he would, I would think rather go with an F team because it does give him that stability. So if he's coming to a mutual fund for five years, I would think split it between two balanced advantage funds or between one balanced advantage fund and one debt fund. So it could be an ICA balanced Advantage fund, it could be an HDFC balanced advantage fund, or it could be a mix of a little bit of a conservative fund. If he's never invested in equities before, then I would say a conservative fund. It could be a Kodak equity debt fund, which has a good combination of debt and equity and decent returns. So I would say depending on what kind of profile this is, he can choose a combination or one of these. Sure, since a lot of viewers, you know, like Ashok send across their questions via e-mail. So a bit of clarity in terms of your risk profiling and you know, what is a specific goal if it is aligned to the investment, if all these details we have, it becomes easier for the for the expert to give you the right kind of recommendations. But over here. Thank you so much, Shweta. You have aligned him really well with his five years time horizon, although I don't have much details. So we don't know how can we hand hold him in terms of his financial journey ahead. But then let's move on to our next viewer question, which I think is again an e-mail question. And this is from Ajit. And Ajit says that he's been investing in Axis small cap, quant small cap PGM, India, Midcap opportunity, Aditya Birla, Multicap. And he also has a lump sum investment done in quant LSS, mirror asset LSS. And he's given the total value of his portfolio around 9,00,000 and time horizon is 7 years. The goal is to achieve 1 CR. And he also wants to know whether this portfolio is very well balanced or he needs to, you know, make any changes in terms of his fund choices and also raise the step up the SIP amount. So again, and his age is 50 years old, so assuming if it is a retirement portfolio, although I don't have that detail with me, but then just a scenario that, you know, we might want to consider then giving him the suggestion because he's already 50. What are the few ground rules that you might want to explain Ajith and as well as all those investors who might be starting their investment journey at the age of 50 or maybe who are very closer to their retirement age, I mean closer to 60. What is the basic groundwork or a ground rule that they should be following? So I think that's you've added a great question to that existing investor query. So when one is planning for retirement, especially later in the day, I think you tend to get a little defensive and not think about how inflation is going to impact. Even after you retire, you will start will stop working, but inflation is still going to continue to work. So a lot of people in their minds, if they're going to retire at say 60, right? And if it started at 50, for them the time horizon is 10 years. It's actually not ten years. It's much further than that. They have to consider that they're going to live much, much further than that and consider say 15202530 years time horizon rather than just 10 years because you're not going to take out your money after 10 years. It's not under your mattress, right? It's still continuing to grow. Although at the time when they're closer to retirement, said two to three years before start looking at more options which will give you cash flow. So you don't have to think of of cash flow at 50 itself and go defensive. You can get because the products will change by the time you get to your retirement age. So lot of variables are going to be there. So don't be shy. This is the 10 years that you can actually take risk. So don't shy away from that. Even in Ajit's query, Mr. Ajit's query, he's mentioned that he has seven years time horizon, right? I don't see why it can't be extended to say 15 years. I think he's only thinking 7 years because he's thinking after seven years, I'm going to safeguard this money and put it in FTS or put it in options where I can withdraw cash from. It's not necessary that he does that. The other thing that I really want people to do when they are thinking of retirement planning is that, you know, look at thing what you're going to do with your son because a lot of time and a lot of money is not a great combination for your money. You're either going to spend it or you're going to traded with that money. You're going to look at options which are quite heavily or get, you know, greedy with that money. So I have seen a lot of these mistakes. I think that is something that people should definitely avoid. In Mr. Ajit's case, to get to his goal of 1,00,00,000, he needs to invest close to 70,000 per month. He's investing close to 35,000 a month now. So he would need to double his investment for one second. If it's strictly seven years from today, I would urge him to move into more large cap and midcap rather than small cap heavy. He is investing in quite a bit of small cap from what I see and I would urge him not to do that because small cap itself requires that much time horizon. And when he's doing an SIP, the time horizon will only keep reducing. So I don't want him to be in a situation where unnecessarily his he feels his money stuck or there's too much volatility and he's withdrawing his money with the loss. So I really would like him to stick to Nifty 50, Fancy UTI Nifty 50, DSP, Nifty 50 are great options. ICSAI blue chip is a good option. I could even look at like an ICS AI large and midcap as a good option. Maybe large and midcap as a good option but that but then core equity could be a good fit in as well. So I would urge him to not just see the past track record, but see what he wants to look at and how comfortable he should be. Sure. And he needs to step up his SIP amount as and when he's able to do that. All right, Shweta, let's move on. And I have Ayush Chopra, Ayush Gupta from Bangalore on the phone line with me. Ayush. Hi. Good evening. Thank you so much for sending requests to your question. Yeah. Hi. Hi. So OK, the financial goal that you have send us is you want to buy a house after five years. Is that right? Yeah, OK. And you're trying to accumulate some money for that HDLC retirement savings, hybrid equity word quantity, LSS quant, small cap and Rebecca LSS tax fund and you've got Aditya Birla money manager as well. What's the corpus that roughly you're looking at after five years? Ayush, not sure I just want to my boss only not around area on all right, roughly what is going to be the cost of your house is that have you thought about it? It could be like 830 yeah, 830 current for any of it could be like around 60-70 in future 6070 in future. OK, so you're trying to accumulate as much as you can. Yeah. OK. All right. Is this time horizon flexible? Can you go from 5:00 to 7:00? Yeah. OK. OK. So let's help you plan for your dream house. And Shweta, since there is no corpus aligned to it, would you recommend him to go from 5:00 to 7:00? Because that might slightly change the strategy also that you might want to recommend if he's going beyond five years, what would you suggest? Yeah, true. So Mr. Ayush Gupta, your dream boom. I think it's a fantastic goal to have and it's something that one aspires to and helps them save. Although I don't agree with your portfolio choices, there are schemes like the retirement savings fund, which has a lock in of five years itself. So if you're going to keep investing in this, there's going to be a continuous lock in of each investment. So it's not really going to help you withdraw when you need it. We tell you retirement rather than your home purchase, for which I think you need to be a little different, have a little different strategy. The other thing that you have is ELSS tax savers. Again, three years lock in a bare minimum. So especially if it's five years and can't be moved, then you can only maybe invested for another year and a half, not more than that because closer to the goal you need to start moving money to safer assets. 1 1/2 years is also a stretch according to me. You also have Aditya Birla money manager. So this is a short term fund. So this is not aligning to your five years as well. So none of these schemes and also a small cap, right, which by definition meters small cap at least seven years. So none of these schemes are actually aligning to your goal of the home, although they could other than the money manager could align towards retirement, which is a very good goal by itself. So think about the strategy that you know you are looking at five years and look at her. All right. So as I said also, if it's seven years, then it's still OK, but 7 years from now. So every SI people have that much tenure lesser. So that's why this still doesn't align with me. Rather keep open-ended diversified funds. You look at the UTI and FT50, look at balanced advantage funds. If it's still five years, if it's seven years old, so it's still a good idea. Look at ICS a blue chip. Look at large and midcap midday is good. ICS a large and mid is good. So look at PPS flexi cap. So these are the law open-ended funds with more large cap. Keep your UTI and Nifty 50 as the core. So you could have close to 30% in one scheme itself and the rest in the others. So you will need to realign your portfolio quite a bit. All right, Ayush, that's the advice for you. But then taking a cue from his question, Shweta, you know, buying a home is a very crucial goal for a lot of us. What are the basic what's the basic thumb rule when you want the financial portfolios aligned to this particular goal? What is the basic thumb rule At what time should be you should be beginning this the investment journey to buy a house? How much time should you be given for investment to grow as well? What should be the ideal amount of investment or how do you sort of calculate the kind of investment that you should be putting into to come to that corpus that you might want after a few years. So what are those basic thumb rules or the homework that you might want to do before, you know, aligning this particular goal for yourself? So I think the first sum rule would be at least 20% of down payment and not more than that and not less than that, sorry. So that at least 20% is down payment. So once you can afford that, also account. The second thing would be account for the interiors and the appliances and the furniture that you're going to provide. A lot of people miss that, including the stamp duty on registrations. These can be additional costs. So add those to your goal. The third would be don't let your Emis be more than 40% of your income because if if it's more than that, it's going to be a stretch. I think that would be definitely a difficult one to manage. The 4th one would be or have 12 months of your expenses when you are looking at Emis and commitment and homes have 12 months of your your expenses sorted. Otherwise, you're going to be in a bit of a stretch in case of a loss of a job or a salary cut or anything like that. So and you know, life doesn't warn you and come with these shocks. So I would definitely urge you to do that. And whenever you're taking a home loan, make sure that that's insured and that's added to your insurance, that liability because sometimes you miss out on that. I think these will be my top five sort of financial recommendations investment wise. While I don't want this to be more than two 2 1/2 times of your annual income, again depending on the city and depending on the type of accommodation you want to live in, this could vary. It will be your biggest investment for a while. Don't let it be for more than five years while alone immediately you would want to repay. I would urge you that don't do that. Parallely, keep building so instead of just paying off your EMI, build your savings and portfolios as well. Otherwise you're going to regret that You know you are loan free but you've not. You missed out on the investment opportunity where that could have doubled. Yes, I know interest and EMI when it goes and when you're paying that interest it hurts. The other bit I think financially I would recommend is don't keep too many other loans going. Whether it's, you know, if you're taking vacations, make sure that at least for a year or two you cut down and live a little frugally, especially when your home is under construction or when the Emis have just started. That can take you a long, long way because then you're taking the a loan of a little reduced amount rather than taking that burden and then feeling overwhelmed by it. Right, right, right, right. I think we need to do a special show on this particular financial goal, watching the Money show where we are answering your portfolio queries. And with me, I have Shweta Jain who's answering all the newer queries today for us. Shweta, let's move on to our next question via e-mail, that's from Pooja. Pooja writes that she's 29 years old and she's been investing in mutual funds since last five months and she has invested in Bank of India Small Cap Fund, Parak Parikh Flexi Cap, Kotak Equity Opportunities, Bank of India Flexi Cap, Muthlal Oswal Midcap. And the goal is to accumulate 5 CR for retirement. And she also wants to know if there are any changes that needs to be done in her current portfolio. And she would also like to step up her investment as and when she can. OK, so very interesting. Pooja, congratulations. You're just 29 and the first goal that you've aligned for yourself is the retirement. I think a great start. And thank you so much for sending us your question because through your question, we can also advise a lot of viewers of your age, you know, what all goes into aligning your financial goals at the right time because we're talking about Shweta retirement often in India, you know, we think about this once all our financial reliabilities or responsibilities get over and then the time comes and you think about yourself and your life after retirement. But here comes a question from a 29 year old, you know, who's thought about her retirement and also aligned a corpus for herself. I mean, five CRI mean, I don't know whether that should be enough for her. Maybe she might want to review it later on in her stage. But then at least there's a start to it. There's a first step towards it, Shweta. Yeah, Kavita, very true. And I think it's a fantastic start, Pooja. And you would be surprised to know you have an SIP of about 11,000 or 13,005. Seven, 911 thousand, yes. So you've said 11,000, you've started. You would be surprised to know that 15,000, if you step this up to 15,000, you're well on your way to five crores in 30 years. So while by the time you retire, I know it sounds like a long, long time, but trust me, once you've assigned this amount and this portfolio is set, you know, so I think that's a fantastic start and you're off to a good number. I think 5 crores to start off with now is a fantastic number. The schemes, however, are skewed towards small cap because Flexi also has small cap and you know, there's midcap as well. But I think considering your age, it's absolutely fine that you have skewed all these funds towards small cap. But I'm also considering that you're a new investor. So if there is more volatility, but you haven't seen too much in the last few years, you might be a little barrier of equity and might panic a bit. So I would urge you to start either change one of these SIPS from small cap to Nifty 50 or add on. If there is a leeway, add on that 3000 to UTI Nifty 50 and balance this out. And I think that will be like a great portfolio. You're then definitely on your way to five crores. All right, so that's the answer for Poojas question. Pooja, all the best. And let's move on to Santoshas question. That's also via e-mail, Shweta. And okay, so his question is very interesting because he writes that there are some discrepancies in the games reported for some of his debt mutual funds. The AIS statement apparently is not matching from the ones which are supposed to match. And he wants to understand the process of this AIS entries. A very unique question because usually people just ask about investment strategies. OK, so anyway he can get it verified. Shweta Yeah, I think the best way to do is the purchase and sale entries by yourself and take your data from CAS. I think that's the easiest way to align this. Sometimes what happens is whether it's loads or the expense ratio is not accounted for properly in the Navy's earlier, there might be a little bit of a difference or calculation strategy itself. It may happen that these are not matching. The best way is to take your account statements from the Panda House and or from cast and do the entries and calculation yourself. That's definitely the easiest and the best way. But is it a usual case? I mean, is it a common case that you also find around Shweta? It is a different mismatch, right? Yeah. Different softwares have different ways to calculate some of these gains and reconciliation, if not done properly at the time by the provider, whether it's a distributor, whether it's an RIA, or whether it's one of these apps. If the reconciliation is not done properly, I think it's definitely an issue and there will be a mismatch for sure. The easiest way to tell if it's correct is to do the purchase and the sale entry calculation by yourself. It's easy to expose these to Excel and then do this. It's not too much, it's not too difficult. It's just TDs and this can be done online, right? It can be done. All right, let's move on to our next viewer question, which is from Avinash. Avinash says that which funds should I invest to build a corpus of 10 crores in 10 years? Shweta, interesting. 10 crores and 10 years. So we are talking about goals and crores of five and 10 multiples. I like that. But ten crores in 10 years, you would need at least 5,00,000 to get there. 10 years is a very short time to do that. So 5,00,000 per month is what you would definitely need to invest. A good strategy for somebody who's starting off, I'm assuming is UTI, Nifty 50, DSP, Nifty 50, Kodak small Cap a little bit because you would need that clicker for completing this target. ICICI Large and midcap quoted emerging equity, HDFC Balanced Advantage Fund because I want a little bit of debt as well, a little bit of thematic. I think if you're looking for an HDFC defense fund, could be a good one. Abundant sterling, so a good combination of this, because it's 5,00,000, you will need a bunch of schemes to make sure that your goal is being met. Alright, with that, it's a wrap on the show. Thank you so much, PETA for being on the show and helping our viewers and suggesting them strategies to align their financial goals with their portfolio. And on that note, I'm going to leave our viewers with our WhatsApp number and our e-mail ID where you can send across your queries. Thank you so much for watching Goodbye. If you like this video then like, share and subscribe to ET Now.