Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Online-views/  Ask Mint Money | Even non-risky debt MFs cannot give guaranteed returns
BackBack

Ask Mint Money | Even non-risky debt MFs cannot give guaranteed returns

Ask Mint Money | Even non-risky debt MFs cannot give guaranteed returns

Premium


I save 20,000 every month. My equity investments in the last three years didn’t give me any returns. Can you please suggest some funds that will give me 20% returns annually?

—Anju Kumari

In your situation, the disappointment at lack of returns from equity over the past few years is understandable. However, it would be hard to comment on whether it was due to strategy or the markets without knowing the exact investments in your portfolio and their time frame. One would still have to recommend MFs as an investment vehicle of choice for retail investors who have a long-term horizon. Broadly diversified funds such as Quantum Long-Term Equity, HDFC Equity and Reliance Regular Savings Equity are some funds in which you can invest and expect fair returns over the long run.

My per month MF investments are as follows: DSP BlackRock Top (Rs 1,000), Birla Sun Life Frontline Equity-Plan (Rs 1,000), HDFC Top 200 (Rs 2,000), UTI Dividend Yield (Rs 1,000), IDFC Premier Equity Plan A (Rs 2,000), HDFC Mid-Cap Opportunities (Rs 1,000), HDFC Equity (Rs 2,000), Reliance Regular Savings Equity (Rs 1,000), Franklin India Prima Plus (Rs 1,000), HDFC Prudence (Rs 1,000), Canara Robeco Equity Tax Saver (Rs 1,000) and Fidelity Tax Advantage (Rs 2,000). Should I add, exit or increase investment in any of these funds?

—Susnata Har

Apart from the tax-saving funds, the allocations in the different categories of MFs in your portfolio works out as follows—30% each in large/mid-cap funds and multi-cap funds, about 20% in the mid-cap funds, and the remaining split between large-cap fund and hybrid fund. If you have the bandwidth to increase the allocation in some schemes, I would suggest that you increase the allocation in balanced and large-cap funds. Currently, you have 12 schemes which is fine if you are able to efficiently track the portfolio using an automated tool. Else, you can prune down the size of your portfolio by consolidating your holdings, especially in the multi-cap and large/mid-cap segments.

Srikanth Meenakshi is founder and director of FundsIndia.com

Queries and views at mintmoney@livemint.com

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 08 Jan 2012, 10:36 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App