Queries
Prudential Focused Bluechip Equity Fund , Aditya Birla Sun Life Pure Value Fund and SBI Magnum Multicap Fund .
Pankaj Mathpal , Managing Director , Optima Money Managers
raman rao , Hyderabad
I would like to understand the major difference between regular and direct mutual fund investment and benefits I can get under each plan . In the regular plans of mutual fund schemes , the expense ratios are higher or in simpler words , these are costlier than direct mutual funds where the expense ratios are lower . So while the difference may not seem too high , over a period of time say 10 years + it will start impacting performance due to compounding effect of the charges . While this is the direct benefit , the indirect benefit is that you are unlikely to get mis-sold , if there is nothing in it for anyone to sell it to you .
A distributor earns a commission / brokerage if you invest through her / him . If you have an advisor , it is better to invest in direct mutual funds . However , if you are doing it on your own , do understand that we find it difficult to manage our emotions and also do all the research for investing , so don ’ t be pennywise pound foolish while investing , hire an advisor who is competent and you can trust .
Shweta Jain , CFP an SIP for a period of 20 years , targeting `80 lakh by year 2040 . Please advise me on other possibilities for mutual fund investing Assuming CAGR of 12 per cent per annum , you can expect to achieve your target of `80 lakh by 2040 . However , this corpus may not be sufficient for the desired goal in future due to the effect of inflation . You should consider inflation and increase the set corpus amount . I would advise you to increase the SIP amount year after year to accumulate the adequate amount for your financial goal . You can consider investing in ICICI dheeraj sp , Mumbai
I plan to start monthly SIPs of `15,000 per mutual fund for 15 years in certain funds . I aim to accumulate a corpus of `5 crore . Please let me know if my return expectations and fund choices are appropriate . I am not very conservative and can take some risk . The funds are – Mirae Asset Emerging Bluechip , Franklin India High Growth Companies , Birla Sun Life Advantage , SBI Bluechip , DSP Small and Mid Cap . Assuming 12 per cent CAGR from your investment portfolio in the long term , you can expect around `71 lakh after 15 years with your monthly investment of `15 , 000 . You will have to increase your SIP amount year after year to achieve the desired goal . I advise you skip DSP Small and Mid Cap fund and proceed with all other selected funds by you . Also , I would suggest you add one debt or hybrid fund to provide stability to the portfolio .
Pankaj Mathpal , Managing Director , Optima Money Managers
sujoy bhowmik , Agartala
Can a super top-up plan be ported ? Yes , you can port your health insurance policy , including a top-up policy , to any general insurance company or a specialised health insurance company . You can exercise this option at the time of renewal by giving an advance notice to your existing insurer at least 45 days before the renewal is due .
Pankaj Mathpal , Managing Director , Optima Money Managers
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Outlook Money February 2018 www . outlookmoney . com