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Invest in MF long term

Discussion in 'Mutual Funds' started by bhavesh393, Apr 21, 2016.

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  1. bhavesh393

    bhavesh393 Member

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    Hi Shabbir,

    I am planing to invest in a mutual fund with lumb sum amount (not tax saving). can you suggest which MF is best for long term (7 to 10 year)

    kindly suggest 3-4 MF. I am not putting all money in one MF.
     
    bhavesh393, Apr 21, 2016
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  2. shabbir

    shabbir Administrator Staff Member

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    You should not be putting all the money in one MF either.

    Yes I will definitely tell you the MFs but then I will also tell you the process that I follow to choose those mutual funds.

    https://www.valueresearchonline.com/funds/ Choose the category compare and opt for large cap, mid cap and multi cap fund.

    If possible, you can opt for many other categorization like Equity Pharma, Equity Technology and other such funds.

    And then choose the fund that has given averagely good performance in that category and select the best one.

    My suggestion is
    Large cap - Franklin India Bluechip Fund
    Mid cap - Kotak Midcap Fund

    Ideally you can create SIP in those funds.
     
    shabbir, Apr 22, 2016
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  3. bhavesh393

    bhavesh393 Member

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    Hi Shabbir thanking you.

    I checked various category on value research.

    Small cap are looking decent. last 5 year performance 20% return. other side large cap note give more then 10%.

    so, Avoiding large cap and putting half money in small-mid cap & half in multi cap it's good strategy ?

    there are sortlist.

    mid cap - Kotak Midcap Fund (last 5 year - 16%)
    small cap - DSP black rock micro cap fund (last 5 year - 22%)
    small cap - Franklin india smaller compnany (last 5 year - 22%)
    Multi cap - Icici pru. value discovery fund (last 5 year - 17%)

    Please suggest.
     
    bhavesh393, Apr 22, 2016
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  4. shabbir

    shabbir Administrator Staff Member

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    No because small cap worked for a reason and if you avoid large cap, you can have lot more downside when market corrects.

    So Ideally I would put more money in large cap when market corrects and less money in large cap when valuation is tight.

    Look at my wealth building portfolio. I started with Zydus wellness but as market corrected, I opted for INFY and L&T. Once I see valuation is tight like in Tata Steel, I opted for less investment in these.

    So Ideally you should also build similar strategy in mutual funds as well.

    Opt for some large cap but not majorly at 7900 levels of Nifty but if market corrects (which I expect) put more in large cap fund.
     
    shabbir, Apr 22, 2016
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  5. bhavesh393

    bhavesh393 Member

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    Thanks Shabbir for your valuable guidance.

    How many % putting in Large cap, Mid cap & Small cap ?
     
    bhavesh393, Apr 23, 2016
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  6. shabbir

    shabbir Administrator Staff Member

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    I will not worry too much % but then equally in those are not bad option either.
     
    shabbir, Apr 23, 2016
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