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Should you invest in equal weight index funds in 2021?

Jun 30, 2021 by Ravinder Arora,   |  

Plutus Answers:

Let us first understand what equal weight index funds are before jumping to the answer of this question. An equal weight index fund invests in the same stocks as the index, the only difference being that the stocks are held in equal proportion as against varied weights in a typical index fund. So, you invest in the same scrips and with equal weight assigned to each. In a typical market weighted index fund, a stock or sector becomes a larger portion of the index on performing well but for equal weight index funds, the percentage allocation is equally divided amongst the index stocks which is ensured by rebalancing stocks on quarterly or half yearly basis.

The rebalancing boils down to booking profit in outperforming stocks and buying more of the underperforming stocks which in a way means you buy low and sell high. Also, stock and sector concentration which is typical of the vanilla index funds does not happen in case of equal weighted index funds. On this premise, it can be said that these equal weighted index funds follow a value style of investing which has its pros & cons.

There is a contradictory view about these funds being more expensive vis-à-vis normal index funds and also that they somewhere ignore the market wisdom / view by following the equal weight rule.

As per investing in equal weight index funds in 2021, such funds are a suitable option for conservative or low risk taking investors. They have performed well in 2020 and are expected to do so in 2021 but when it comes to markets, there can be no clear cut prediction. While the exact allocation to these funds can only be worked basis more thorough analysis of an individual needs and financial planning, on a minimum side, one can consider parking 10-12% of their core portfolio in these funds.

Should you buy index funds at all-time highs?

Jun 17, 2021 by Akash Baskar,   |  

Plutus Answers:

Index funds form a part of passive fund investment strategy and the decision to invest in them is not and should not be dependent on market levels but on the portfolio construct one is following. If one is new to markets or a beginner investor, he /she can always start with index funds, gain market experience and then foray in more complex products. For an expert investor who has experience as well as expertise, he / she may want to explore funds with higher expected returns even if they carry more risk.

Another approach to look at it is that when markets are at all-time highs, one tends to be jittery about their market participation. In such a scenario, yes, one can continue investing in index funds where the risk is comparatively lower and one of course stands to benefit from the upside, if any. Remember, while investing, it is the strategy that is more important and so if you think that markets are at all-time highs, stagger your total investment so that you enter the market at varied levels. This shall help in optimising returns by lowering the overall investment risk.

Does buying a variety of mutual funds(20+ in equity, debt, index etc.) not make sense?

May 28, 2021 by Rahul Gohil,   |  

Plutus Answers:

Mutual funds are an investment avenue and not a part of our wardrobe range or something in the cosmetic space that makes a case for ‘more the merrier. Having a variety of mutual funds in one's portfolio can increase the administrative cost of the portfolio and adversely affect the portfolio returns too.

Diversification is healthy but over diversification is certainly not advisable. Having all sorts and varieties of mutual funds can have counter reactive results with above average returns from one fund being wiped off by dismal performance of the other fund or fund type.

Do not put all your eggs in one basket is a famous adage but over diversification is a performance spoiler too. When building your mutual fund portfolio, having the right type of funds and in the right number goes a long way in generating above average returns.

It is not about variety investing in mutual funds but an informed and rational investing that yields the right results.

Every year, the top 5 mutual funds changes. How can we select in a particular fund for a longer period of 15+ years?

May 14, 2021 by Shubham Pathania,   |  

Plutus Answers:

Choosing to invest in the top funds is not the right way to invest in mutual funds. Yes, the top funds keep changing and if this is the only parameter you follow while taking an investment decision, you can go wrong. Plus, even if your investment horizon is 15 years, it makes sense to review your portfolio quarterly and rebalance, if required annually until and unless you are following a passive investment strategy by investing in index funds which is again not the right strategy when the horizon is as longish as 15 years.

So, when you are selecting a fund for a longer time period, following parameters shall help you make the right decision-

Fund type / theme – Which type of fund are you looking to invest in. Ideally, when the investment horizon is as long as 15 years, one can invest in mid & small caps, value funds, thematic funds as well take sectoral calls too based on advice from experienced advisor.

Fund House – Investing in an established fund house is recommended.

Fund Consistency – It is not about the fund’s recent performance but its returns and ranking over years since its inception that should be considered while taking an investment decision.

Fund AUM – While not the leading criterion, the fund size or AUM is another factor that can be considered. This doesn’t go to say that a fund with higher AUM is expected to perform but yes, fund with higher AUM is a safer proposition to invest in.

The above list while not exhaustive still lists out the important indicators to be considered while investing in mutual funds.

Which mutual funds do you suggest to park money, as even liquid funds have fallen considerably?

Jul 2, 2020 by Ravi Kiran,   |  

Plutus Answers:

There is no doubt that the yields on the liquid funds have fallen considerably, ever since the RBI started reducing its policy rates. This is because liquid funds have to necessarily hold paper that is of the shortest duration. If one wants to stay in debt funds, you could consider parking funds in medium and long duration funds which have a mandate to hold paper that is between 3-7 years maturity. Alternately, the fund categories that have done exceptionally well in the last 12-months are Banking and PSU Debt Funds and the GILT Funds. However, keep in mind that the GILT funds can become volatile in the interim due to its very nature of holdings, but the returns potential is high in these and given that these are sovereign holdings, there can be virtually nil credit risk either.

Tips for the people who invested in mutual funds SIP just before the lockdown in India?

Jun 26, 2020 by Suman Summi,   |  

Plutus Answers:

Advice for any SIP investor is always the same. One usually does a SIP for a long duration, ideally at least for 3 years, because of the very nature of the investment itself. SIPs work on the principal of compounding and for that the happen, one needs to ride the time that it will take for that to happen. Money cannot be made overnight and for this reason, patience is a key trait when it comes to capital market investing. The only thing that can perhaps be said is to re-look at the choice of funds that one has invested in. In times such as these, one is more likely to see better medium term returns in large caps as opposed to mid and small cap funds. So if you have the horizon to remain invested for 5 years or more, the stick with mid and small caps, else you are better off investing in large caps for now.

Currently I am working in Ginesys, Kolkata, I want to invest around 10000 per month upto 20 years, please guide me.

Jan 16, 2019 by DEBNATH GHOSH, kolkata  |  

Plutus Answers:

Dear Debnath,

Since your investment horizon is 20 years, we suggest you to invest in equity mutual funds through monthly SIPs of Rs 10,000.

However, as you may know there are quite a few categories in the equity fund segment, like large cap funds, mid cap funds, small cap funds, multi-cap funds, large & mid cap funds and various kind of thematic and sectoral funds. Choosing an equity fund thus is quite a big task!

Based on our experience, we think, either a multi-cap fund (which invest in all market segments like, large cap, mid cap and small cap stocks) and / or a large & mid cap fund (which invests in large cap and mid cap stocks) could be a good choice for you provided your risk profile is moderately high to high. 20 Years is a good long term period, and we think, you can make decent returns by investing in these two category of funds.

Please check the top performing funds in these two categories –

Multi-cap Funds -

Large and Midcap Funds -

We suggest, you can invest in two funds @ Rs 5,000 SIP in each. Principal Emerging Bluechip Fund from the large & midcap category and Mirae Asset India Equity Fund from the multi-cap category could be good choices.

Hope the above is helpful to you.

In case you have further queries please do connect to us at 98118-88058 or write to us at or in case you want to invest with us online or off-line

Happy investing.

I have invested in arbitrage funds and ELSS SIP. I am getting dividend reinvestment as well as dividend. I want to know where I should show these dividends in Income Tax and whether both dividends i.e reinvest and dividends out to be shown in Income Tax Return. Till know I used to file ITR 1 FORM and now should I continue to file ITR 1 or I have changed ITR FORM and if so which ITR form is to be used. Shall be grateful for your expert advice.

Jun 25, 2018 by R C THUKRAL, Delhi  |  

Plutus Answers:

Good to know that you have invested in Arbitrage Funds and ELSS Funds.

Please note that you have to show both – dividends received as well as the dividends reinvested.

Dividends received are tax free in your hand as the AMC pays the dividend distribution tax. But still you have to show it in the ITR as 'Dividend Income' even though no tax will be applicable on that.

Dividends reinvested are also need to be shown as you are getting units in lieu of the dividends. Here again, no taxes are payable on the acquired units.

With regards to which ITR form to be filled in, will depend on what is your total income, do you have income other than salary or do you have any professional income and so on. We suggest that you consult a income tax expert on this matter.

To know more about mutual funds, do visit our Blog section and Knowledge centre

Thanking you for writing to us.

I have some quarries regarding SIP investments - 1) I have started investing in SIP through finance firm in Mumbai (Samarth EduFin Services Pvt Ltd). I have send all required documents and SIP is expected to start from Nov 17, 2) My investments are:- Long Term - a) Aditya Birla Sun Life Equity Fund - Rs 4000, b) ICICI Prudential Value Discovery Fund - Rs 3000, c) Reliance Tax Saver Fund - Rs 3000, Short Term - d) L&T India Prudence Fund - Rs 2500, e) ICICI Prudential Savings Fund - Rs 2500, 3) My queries are:- a) How can I check authenticity of firm? b) Will the firm receive any percentage of my SIP profit? c) How can I check the SIP progress? d) Are the Investments done in above SIP worth it? e) What is advisable, investment in SIP through finance firm or UTI/ ET money apps?

Nov 6, 2017 by Sumit, Solapur  |  

Plutus Answers:
  1. Good to know that you are starting to invest through mutual fund SIPs. However, you have not mentioned if you had given a cheque for starting the SIP when you sent the SIP application form to the said mutual fund distributor. If it is so, has the amount been debited from your bank account? Or is it that you have not given any cheque and only given the auto debit mandate.

    Unless we do not know this we cannot really comment. However, please note that if your cheque is debited from your bank account your bank will send you a SMS provided the mobile number given in mutual fund SIP application and your bank account is same.

    Also, if you have not given any cheque and only given the auto debit form, even then the mutual fund company (AMC) will send you a SMS and email saying that the SIP has been registered. You will also get SMS alerts prior to your SIP debit date every month.

    I think you should talk to the mutual fund distributor and know the status of your mutual fund SIP applications.

    However, you can try checking the status of your application for CAMS service mutual funds (in your case L&T, ICICI Prudential and Aditya Birla Sun Life Mutual Fund) from this link

  2. Using this link you can check if a mutual fund distributor exists or not You can type the name and check their ARN code, address and contact details etc. However, there is a possibility that the firm is registered in name of Samarth EduFin Services Pvt Ltd but using some other ARN number. Actually, there is no way other than this to verify the authenticity of your mutual fund distributor.
  3. Excepting ICICI Prudential Value discovery Fund, the other selected funds are good. In place of ICICI Prudential Value discovery Fund, you could have invested in Mirae Asset India Opportunities Fund and Aditya Birla Sun Life Advantage Fund.

    You have mentioned your investment in L&T India Prudence Fund as a short term investment. This is wrong as it is a balanced fund and you must have a 5 years investment view while investing in balanced funds.

  4. Please note that the company through whom you have routed your SIP application will not get any share on the profit made on your SIPs. However, they will receive a commission (entitled to mutual fund distributors) on each SIP instalment + a trail commission on the total assets (value of your investments).
  5. We feel that you should have decided who should be your mutual fund advisor/ distributor before investing/ sending your SIP application to the Mumbai based firm. Now that you have sent the application to them you should talk to them and check the status etc. without doubting them.
  6. We do not comment on any APPs or platform available in the market. We are a leading mutual fund distributor in India and we provide off-line as well as on-line mutual fund transactions. If you need any assistance in investing in mutual funds you can write to us by clicking this link or directly at Alternatively you can sign up with us for online mutual funds at

    To know more about top mutual funds do check this link Or use our robo-advisory tools

Thanks for writing to Please let us know how else we can help!

I am 30 years old investing in MF from last year onwards. I have invested through SIP in following four funds of each 2000 Rs. 1) ABSL Front Line Equity - Growth, 2) Most Focused Multi Cap 35 Fund - Growth, 3) L&T India Value Fund - Growth, 4) Reliance Small Cap Fund - Growth. I am planning to invest 10+ years. Please suggest me am I in a correct path?

Oct 23, 2017 by J. Ashok Kumar, Salem  |  

Plutus Answers:

Thanks for writing to Bridge Investments.

Happy to see that that the funds you have invested in all are good performing from their respective categories. You have equal SIP allocation of 25% each in large cap, diversified, mid cap and small cap categories.

As the fund selection is good, you do not need to make any changes and stick to it while reviewing the respective fund performances at least once every year.

With Rs 8,000 monthly SIPs you can expect to accumulate a corpus of over 19 Lakhs after 10 years against your investment of Rs 9.60 Lakhs. This is based on assumption of annual rate of return at 12.5%. However, the corpus may even be higher if you get higher than the assumed rate of returns. For example, the corpus could be over Rs 20 Lakhs and 22 Lakhs if the returns are 13.5% and 15% respectively.

We have used this calculator to know the accumulated amount based on assumed rates of return

At any point in time, to know top performing funds, do visit our mutual fund research section -

Please let us know how else can we help you at

Thanks again.

My age is 33 and I have 2 years kids. I am investing 2500 each in ICICI Prudential Value Discovery Fund Growth and SBI Magnum Multicap Fund Growth from the last one year. After 20 years I need 1 Crores in my hand. Can you please tell me how much monthly amount has to be invested?

Oct 10, 2017 by Somnath, Coimbatore  |  

Plutus Answers:

You are investing Rs 5,000 through monthly SIPs in diversified equity funds. By investing Rs 5,000 a month you can accumulate a corpus of only Rs 50 Lakhs after 20 years assuming returns to be at 12%.

But as your target is to reach Rs 1 Crore after 20 years, you must start another monthly SIP of Rs 5,000 immediately. You can start SIPs in diversified equity funds as they are best suited for young investors like you for meeting long term investment needs.

Did you know that diversified equity funds are the best for retail investors

Now coming back to your fund selection, your selection of ICICI Prudential Value Discovery fund is not good as this fund lagged in performance compared to its peer group in the last one year. However, your selection of SBI Magnum Multi-Cap Fund is good.

For your new SIP, you can select anyone of these top performing diversified equity funds - Birla Sun Life Advantage Fund, DSP BlackRock Opportunities Fund and Mirae Asset India Opportunities Fund.

Here you can see the list of top performing diversified equity mutual funds

Hope the above helps in your investment planning. Thanks for writing to Bridge Investment Advisors.

I have a doubt that I want to invest 2 Lakh in lump sum as an emergency fund amount so that I can withdraw at any point in time I want. So where do I need to invest please reply me as soon as possible?

Oct 10, 2017 by Muthu, Chennai  |  

Plutus Answers:

You can simply invest in liquid mutual funds to park your investible surplus of Rs 2 Lakhs. You can invest in liquid funds even for one day.

Liquid funds are best alternative to park your surplus cash. Also, you can redeem liquid funds within one working day. Please read the following article to know more about liquid funds -

Please check top performing liquid funds from here and invest.

Hope you find our suggestions helpful. In case of any assistance do write back to us

Thanks for writing to Bridge Investment Advisors.

How should a retired individual invest in mutual funds?

Jun 23, 2021 by Nitin Agarwal,   |   Mutual Fund

Plutus Answers:

A retired individual would have his / her limited funds that they would accumulated during their work life to fend for in the retirement period. It is thus highly pertinent that their retirement corpus must be handled very sensitively with bare minimum risk and at the same time earning them sufficient returns so that they are able to live their retirement years in peace and solace.

Any investment by a retired individual in equity oriented mutual funds must not exceed 25-30% of their total corpus and this amount too must be invested either through SIP or STP route. The investments must be made in large cap or flexi cap funds with bare minimum or nil allocation to sector or themes.

While investing in debt oriented funds, the fund holdings must be clearly analysed and their investments must only be routed in highest safety funds that are investing in AAA plus rated papers.

Retired individuals can also set up a Systematic Withdrawal Plan (SWP) in mutual funds where based on their needs and taking in consideration capital appreciation of their investments, an amount can be pre-set to be withdrawn from the mutual fund at a pre-defined frequency of month or quarter as the need may be.

Which is expensive, SIP in an MF scheme or SIPs in stocks?

Jun 11, 2021 by Deepak Sahu,   |   Mutual Fund

Plutus Answers:

Yes, one can as much do a SIP in stocks as much in mutual fund schemes. There are no hassles in doing the same and the process and modalities involved are as simple for stock SIP as for mutual fund SIP.

As per the costs involved, this question can be looked at in two ways.

One is the expenses involved in investing in stocks and mutual funds by which measure, the former may prove to be a more cost effective proposition. Having said that, investment in stocks is riskier than investing in mutual funds and investor knowledge of stocks that he / she is investing in and grip of the stock market plays a very important role. Mutual funds are professionally managed and because of the large investor pool, the risk involved does get managed to some extent whereas for stocks, the risk is completely owned by the investor. Considering this, if an investor falters with their investment decision in stocks, the SIP in stocks may prove to be mighty expensive when compared with a similar SIP in mutual funds.

Why do people invest in life insurance as an investment when the returns are nowhere near mutual funds?

May 21, 2021 by Shubham Pathania,   |   Mutual Fund

Plutus Answers:

Traditionally, life insurance has been treated as an investment option where one was meant to compulsorily invest year on year to fetch a potential sum of money years after or at specified intervals of time. Our fathers and grandfathers and even us today end up buying insurance policies and consider it as an investment from diversification point of view.

The returns in this life insurance plans has been and continues to be much lower vis-à-vis equity oriented mutual funds but these plans are still bought for the following reasons –

  1. Conventional mind set where insurance was taken akin to wealth creation instrument where one puts in some money year on year to be made available at a milestone in future such as child’s education or marriage, etc.

  2. Safer avenue with somewhat guaranteed returns even if these projected returns are much lower than the existing returns.

  3. Temptation to make some returns at least in case one survives – Insurance is considered as a form of investment by many which they buy as a safer haven and park it on the debt side of their portfolio which is risk free. If some eventuality happens, the family and dependents are provided for; if n

All in all, people don't buy insurance for the sheer purpose it is meant to serve else the investment insurance divide would have been very clear and followed by one and all. Treating insurance as an alternate form of investment has continued for generations and thus the popularity of the avenue despite the returns from the same being nowhere near that from mutual funds.

What will a unique but effective portfolio of mutual funds look like for the year 2021?

May 7, 2021 by Evans Marvin,   |   Mutual Fund

Plutus Answers:

Like last year, so far Pharma & Tech stocks are expected to deliver well in terms of expected returns in the year 2021. The run up and its pace may not be the same as last year but above average returns can be earned by making the right choice of funds. As per an effective portfolio for the year 2021 or for that matter any other year is concerned, our approach of financial planning in investment advisory says it all. Do not invest as per the market outlook but in line with your goals, risk horizon and investment tenure. By following this simple approach, you will always be able to build up a unique and effective portfolio of mutual funds for yourself.

Which is better in terms of long-term investment, PPF or SIP?

Jul 2, 2020 by Supreeth M S,   |   Mutual Fund

Plutus Answers:

For the longest time, PPF has been one of the most preferred long-term savings option for Indians. There were a number of reasons to do so. It helped save tax under Section 80C. The returns were fixed, guaranteed by the Government and tax-free. However it also had some inherent drawbacks. The money was locked in for a minimum of 7 years and the entire corpus for 15 years. The rate of interest, while guaranteed, is now steadily decreasing. From almost 12% in the year 2000 to 7.1% per annum in 2020, this is a big fall in the interest rate. Moreover a maximum limit of Rs. 1.50 lac per annum doesn’t amount to a very large corpus at the end of 15 years. SIPs on the other hand, do not have any investment limits, have a potential to grow exponentially and comfortably beat inflation, if held for a longer term. Both are good investment options, perhaps even a combination of both may not be a bad idea.

What are the best ways to get money back from Franklin Templeton mutual funds which are closed in India?

Jun 26, 2020 by Shanmuga Sundaram,   |   Mutual Fund

Plutus Answers:

There is nothing an investor can do now to get their money back from the 6 schemes that Franklin recently wound down. The process that follows once a scheme is wound down is laid out clearly. The trustees need the approval of a certain percentage of investors to approve the winding down process post which the trustees are responsible for liquidating the assets in the said schemes. As and when underlying assets are liquidated, investors are paid back in the proportion of their holdings in the scheme. This process could take a long time especially for funds which had underlying securities of durations upwards of 3 years and more. One would now just need to wait out the time that Franklin will take to get through this process.

Good day Sir, I would like to invest some amount in mutual fund (Lump sum), Sir is it the right time for lump sum investment or need to wait for more correction. I am planning to invest around 1 Cr. Waiting for your valuble advise. Thank you

Dec 6, 2018 by James Araham, Delhi  |   Mutual Fund

Plutus Answers:

Good day James!

Yes, we think, this is the right time to invest as the markets have corrected almost by 10% from the last peak, and therefore, offers a good entry point for long term mutual fund investors.

Having said the above, I am assuming you are talking about investing in equity mutual funds (as you are referring to the market) and also that you have a long term investment view (minimum 5 years or so). If you see the historical performance track record, you will notice that equity mutual funds/ equities have always beaten rest of the asset classes if one has remain invested up-till the desired time horizon (in this case 5 years).

I am also assuming that you are ready to take moderately high to high risk as investing in equity mutual funds. We suggest that you select a category of mutual fund basis your risk taking ability. For example - if you can take moderately high risk, large cap funds and large & mid cap equity funds should be your preferred choice. In case of high risk taking ability, you can select good mid cap funds or multi cap funds for your long term investments.

However, if you think, the markets may correct (which nobody can predict) further, our suggestion would be to park your lump sum investments in liquid funds and transfer systematically to the chosen equity mutual funds. This strategy is called STP - Systematic Investment Plan. To know more about what is STP, you can read our blog on the said topic In short, STP helps you ride the market volatility as you benefit from rupee cost averaging of your units accumulated in equity mutual funds while earning more than savings bank interest on the amount parked in liquid funds.

Let us now see how these equity funds have performed historically -

Large cap funds -

Large & mid cap Funds -

Mid cap funds -

Multi cap funds -

Hope the above is helpful to you.

Please do connect to us at 98118-88058 or write to us at in case you want to invest with us online or off-line.

Thanks for writing to us!

I am planning to invest Rs. 6 lac in two debt funds. I am a long-term investor and request you to suggest two different debt funds for the same?

Dec 13, 2017 by Nagraj Madhavrao, Chennai  |   Mutual Fund

Plutus Answers:

Thanks for writing to Bridge Investment Advisors.

As you want to invest in debt funds for the long term and given the current interest rate scenario, we will suggest you to invest in Credit Opportunities Fund.

You can go with the following two funds which have got good rating as well as given good return.

Baroda Pioneer Credit Opportunities Fund

Franklin India Dynamic Accrual Fund

For knowing top funds in any category, we will suggest you to visit this section on our website –

To buy Mutual Funds online, you can SIGN UP with us and transact online

Thanks again for writing to us.

Please let us know how else can we help you.

I am Divya from Chennai . My age is 26. Initially for tax saving purpose, I have started investing in MF through SIP from last 6 month onwards in following funds - 1) ABSL Tax Relief 96 - Growth, 2) Mirae Asset Tax Saver - Growth, 3) Franklin India High Growth Companies - Growth. I am investing monthly 2000 on above mentioned fund each. Are these funds good for long term investment? Please suggest?

Oct 27, 2017 by J. Divya, Chennai  |   Mutual Fund

Plutus Answers:

Thanks for writing to Bridge Investments.

Happy to see that the funds you have invested in all are good performing. However, only the first two funds - ABSL Tax Relief 96 Growth and Mirae Asset Tax Saver Growth - are from ELSS category and qualifies or tax saving. The 3rd fund, Franklin India High Growth Companies Fund is a diversified equity fund and the investments made in this fund so far will not qualify for tax deduction under Section 80C of The Income Tax Act 1961.

Therefore, if saving tax is the prime requirement as you have mentioned, it is suggested that you stop SIP in Franklin India High Growth Companies Fund and start a new SIP in either AXIS Long Term Equity Fund or L&T Tax Advantage Fund. Both are among the top performing funds as per our research. You may check the same from here - Top performing ELSS Funds

With Rs 6,000 monthly SIPs you can expect to accumulate a corpus of over 14 Lakhs after 10 years against your investment of Rs 7.60 Lakhs assuming annual returns at 12.5%. However, the corpus may even be higher if you get higher than the above assumed returns. For example, the corpus could be over Rs 15 Lakhs and around 17 Lakhs if the returns are 13.5% and 15% respectively.

We have used this calculator to know the accumulated amount based on assumed rates of return

At any point in time, to know top performing funds, do visit our mutual fund research section -

You may also like to read

Please let us know how else can we help you at

Thanks again.

I would like to seek your good advice on the following mutual fund SIP investments that I have made. 1) Kotak Select Focus Fund (G) - SIP of Rs 3000, 2) Motilal Focused Multicap 35 (G) - SIP of Rs 3000, 3) HFDC Midcap Opportunities Fund - SIP of Rs 3000, 4) SBI Small and Midcap Fund - SIP of Rs 2000. I am 27 years old and looking forward to invest for a long time period of 15 to 20 years or even more. Currently, I hold similar investments in SBI Mutual Fund since July 2016 a) SBI Blue Chip – Rs 3000 SIP, b) SBI Midcap Fund - Rs 3000 SIP, c) SBI Multicap Fund - Rs 3000 SIP. What would your suggestions on these selections?

Oct 10, 2017 by Sumit, Bangalore  |   Mutual Fund

Plutus Answers:

You have selected good mutual fund schemes for your monthly SIPs. But we are not sure if you have already started the SIPs or planning to start the same. If you are yet to start, then kindly note that SBI Small and Midcap Fund is not accepting any investments as of now. Therefore, in lieu of this fund, you can increase allocation into the other funds that you are already investing in.

The 3 SBI mutual fund schemes in which you are already investing since July 2016 are among good performing in their respective categories.

Your thought of investing for 15-20 years is good, but remember to review your mutual fund portfolio at least once every year just to make sure that the respective fund performances are aligned with your long term investment objectives and future financial goals.

At any point in time, if you want to know which are the top performing funds in each mutual fund category, you may check this link -

Hope the above helps in your SIP investment planning. Thanks for writing to Bridge Investment Advisors.

I want to put RS 10 Lakhs as lump sum in balanced funds for 10 years or more. My aim is to create long term wealth and therefore I am ready to take adequate risk. I have some idea about balanced funds but now-a-days market is near its lifetime high. So is it advisable to put 10 Lakhs in lump sum? Is investment in the balanced funds good also at higher market level?

Oct 10, 2017 by Mohan, Trichy  |   Mutual Fund

Plutus Answers:

We are happy to note that you have a long term investment horizon for investing in mutual funds. Investing in mutual fund equity and balanced funds are all about long term investing as you benefit from compounding from the best investment asset class.

Yes, markets are at all time high level and if experts are to be believed then we are in the middle of a long term bull run. Therefore, you can invest in balanced funds even in lump sum as your investment horizon is 10 years.

However, if you are not very confident and want to play safe the entire lump sum of Rs 10 Lakhs can be invested in liquid funds and from there you can transfer a fixed amount every week through STP in the balanced funds of your choice over 12 months period. This might help you in rupee cost averaging of the unit prices if the markets remain choppy.

As you may know Balanced funds are very good option as they invest in both, upto 60-65% in equities and the rest in debt instruments. Balanced Funds are suitable for investors with moderately high risk appetite with investment horizon of minimum 5 years.

Some of the top performing balanced mutual funds are - ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund, DSP BlackRock Balanced Fund and HDFC Balanced Fund.

You can check the comprehensive list of top performing balanced funds from here

Hope the above helps! Thanks for writing to Bridge Investment Advisors.

I wish to invest 300000 for 7-10 years. Which MF or any other instruments is good with respect to best return & safety too?

Oct 10, 2017 by Karthick, Bangalore  |   Mutual Fund

Plutus Answers:

As you want to invest for 7-10 years and also looking for return with safety, we think, you can invest in large cap equity funds and equity oriented balanced funds. We could have suggested you diversified or mid-cap funds as well but not doing so as you have mentioned that you want safety. As you may know diversified equity funds and mid and small cap funds carry the most risk.

While investing in mutual funds you should select funds based on your risk taking ability and the investment horizon. Therefore, you must know how much risk you can take before jumping to invest in mutual funds.

Let us understand this through some examples -

Conservative Investors - can invest in liquid funds, ultra short term funds, short term debt funds and long term income funds.

Moderate risk profile investors - can invest in hybrid debt funds also known as MIPs.

Moderately high risk profile investors - can invest in balanced funds or large cap funds.

High risk profile investors - can invest in diversified equity funds and mid and small cap funds.

Very high risk profile investors - can invest in thematic and sectoral funds.

Therefore, if you are looking for complete safety with your investments maybe you can invest only in debt funds. In debt funds, again you can choose a fund depending upon your investment horizon.

You may like to read how to select best debt mutual funds for your investment needs

However, with bit of risk, large cap and balanced mutual funds can be an ideal choice for you as your investment horizon is 7-10 years.

You can select good funds across all categories from here -

Please let us know how we can help further. Please comment and let us ting on the comment section which is provided under your reply.

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