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    Hello and welcome to the webchat with Suresh Sadagopan, Founder & Principal Financial Planner, Ladder7 Financial Advisories on how to balance your portfolio via mutual funds

  • S


    Hello Sir, I'm a novice with investments, but I'd like to invest somewhere with moderate liquidity on withdrawing the pooled amount before 5 years or so. Also, that'd help with tax deductions for FY 16-17. Could you kindly help me out with the same? Thank You


    When you want to take advantage of tax deductions, it will get locked in for a length of time. For instance, contributions to PPF will get locked in for as long a 15 years, contribution to tax saving funds ( ELSS ) will get locked in for three years, bank FDs for tax savings purposes will get locked in for five years etc. During this period liquidity will not be there ( or may be constrained with certain conditions like in case of PPF ). The lowest lockin is in case of ELSS, which you may consider. For liquidity, you will have to consider other options like a ultra short term or a shortterm fund..

  • S


    Sir, I am 29 years old working woman. Since Jan 2015, I have been investing Rs 16,000 in mutual funds via SIP. All my investments are in growth options. My risk appetite is moderate. Can you please review my portfolio and suggest if am going ahead with right funds? Kindly advice if I need to switch any investments? Here goes my investment details: 1) Axis Long Term Equity: Rs 2,000 2) Franklin Tax Shield Fund: Rs 3,000 3) HDFC Balanced Fund: Rs 2,000 4) ICICI Prudential Long Term Plan: Rs 1,000 5) Birla Sun Life Frontline Equity Fund: 2,000 6) ICICI Prudential Focused Blue Chip Equity Fund: Rs 1,500 7) UTI Opportunities Fund: Rs 2,000 8) HDFC Mid-Cap Opportunities Fund: Rs 1,500 9) Franklin India High Growth Companies Fund: Rs 1,000. Thanks and regards!


    Largely, your investments are in good funds. There are too many funds in my opinion. I would suggest that you stop all of them and invest in 2-3 funds only. You may go for ICICI Pru Focussed Bluechip fund ( Largecap ) & Franklin High Growth Companies fund ( Multicap ). If you want one more fund, you may invest in HDFc Midcap Opportunities fund.

  • G


    Dear Suresh, I am a senior citizen, aged 78. I have lumpsum amount of Rs 5 lakhs. Would you please suggest me a financial instrument from where I can receive regular income?"


    As a senior citizen who needs a regular income, there are two choices before you. You may invest in a debt fund and initiate a systematic withdrawal. Systematic withdrawal is a way by which you take out the desired amount at intervals determined by you. For instance, in your case, suppose you want to get a quarterly returns, you may set up say Rs.8,000 per quarter ( amounting to Rs.36,000 pa , assuming a 8% return in the fund ). You need to setup your systematic withdrawal somewhat less than the amount that the fund is generating. For instance, if the fund is generating 9% returns, you can comfortably withdraw 8%, in perpetuity. Only that, you need to keep verifying if the withdrawal amount is below the returns generated. The effective tax comes to 3-5% only. You may consider ICICI Income opp fund The other option is to invest in an Equity fund & opt for a dividend option. Many equity funds endeavour to provide a monthly dividend which is tax free. You may consider Tata Balanced fund, HDFc Balanced fund

  • A


    Good afternoon Sir! Do you think liquid funds are attractive alternative to bank’s savings deposits? If yes, what are the top 3 liquid funds where I can park Rs 2000 per month in the form of SIPs?


    Liquid funds or Ultra shortterm funds are good choices over bank SB accounts. Most banks offer just 4%. Whereas liquid funds are currently offering 8 -9.5% returns, which is very attractive. Of course, the returns would come down overtime, as he interest rates get tapered. but still ths would remain attractive, though both are taxable. There is not much difference between one fund to another fund as all of them are investing in a limited pool of shortterm instruments. Youmay consider Birla SL Savings Fund, Franklin Ultra short bond fund

  • R


    Realty funds have raised $420 million in the first three months of 2016 as compared to a total of $520 million in the previous year, according to reports. With the real estate regulator set to be a reality soon, do you see an uptick in these funds?


    This is a difficult question to answer. Real Estate sector has been in doldrums for a few years now. Real estate reforms could be a good thing which can give much more confidence to the investors and Realty funds. Timely delivery is a problem in this sector & cost overruns completely overturns any advantages that the investor may have had while investing. The other problem is in terms of demands which were not anticipated in the beginning - like service tax demand which some people got, further demand for payment as the municipal rules changed & flower bed area needs to be paid for etc. To that extent, getting a real estate regulator is good where an investor can represent and seek redressal in cases of unwarranted & arbitrary demands as well as excessive interest charged on late payment etc. But the sector itself is dependent on the overall economy which shows signs of picking up. This sector will revive in a major way only when the economy lifts off and investors & end-users are seeing visibility of earnings & confidence to take loans. These funds will also see traction then.

  • M


    I am planning to invest Rs 50,000 in Mutual Funds for a year. Please suggest some funds that can provide healthy returns. Thanks!


    Investments in Mutual Funds should be seen as investments for the longterm. If you are investing now, it should be towards meeting some longterm goals/ requirements and your investment should not be contingent on whether it has the potential to do well in this FY. Equity MFs have demonstrated amply in the past of their potential to offer very good returns over long periods. There is no reason to believe that MFs will not be able to provide double digit returns going forward. The return expectation in FY 16-17may be somewhat muted. You may invest in good Largecap, Multicap & balanced funds. My suggestion would be Birla SL Frontline Equity Fund, Franklin High growth companies fund & Tata Balanced Fund

  • V


    I invested Rs 50,000 in UTI Banking Sector - Income Retail Fund. In July'15, its total value was Rs 74,589 and has since dipped to Rs 61,500. Should I stick with my investment? Does it have any growth in near future starting next Financial Year?


    Sectoral funds are inherently more risky than diversified funds. We seldom recommend it. Also BFSI sector is very well represented in all equity diversified funds. You may have got in probably to participate in this sector more deeply. This sector may take some time to recover, given the NPA problem inherent in this sector. But the sector holds potential. My suggestion would be hold it for a longer horizon to unlock it's true potential.

  • M


    Is it a good time to invest in Infrastructure Funds after the Finance Minister unveiled the Union Budget 2016 with significant focus on infrastructure proposals?


    Fund managers are all very positive about infra sector. MF Houses are pushing infra funds which they believe are very good bets. But the drubbing infra funds received in the past is still fresh. Many of the problems in the infra sector remain. Financial closure, land acquisition, project delays & cost escalation, long gestation periods, calamities which are beyond the control of the companies executing the projects etc. are serious problems. If there are good infra firms, it will anyway be represented in a good equity funds. I do not see the need to seek out an infra fund actively to participate in this sector. In my opinion, the potential of this sector is over hyped & the risk inherent is totally underplayed. My advice - stay with diversified equity funds.

  • N


    According to you which will give better returns in long term – equity or real estate?


    I'm no oracle to predict this! But then, Equity seems to stand a much better chance - for they represent the economy & the growth potential inherent in the constituent companies. When the economy does well, it is because the constituent companies do well. When companies/ businesses grow & report higher & higher profits, their share prices will move up in line with their growth potential & profitability. Hence, equity will do well in future. Real estate is dependant on the economy. When it does well, real estate will also do well. But, real estate investments being very high there is an inherent limitation. Also real estate sector is prone to so many problems like delays, stoppage of work, cost escalation etc. which are endemic to the sector. Black money is one reason why this sector is doing well. Once that gets tapered, this sector will automatically slow down.

  • M


    I want to invest an amount of Rs 80,000 in mutual funds (ELSS) for tax saving purpose. Kindly suggest me the good mutual funds to invest in


    You may invest in BNP Paribas LT Equity fund, Franklin Taxshield Fund, ICICI Pru LT Equity

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