Personal Finance Queries For The Day (15-07-2019)

Sajith K, sajith.ka@gmail.com, Bangalore: Advice on fund selection as part of MF consolidation (Installment period 7+yrs). Aged 50yrs, presently no active income. Dependent by 2 children, wife and mother. 1)HDFC Balance Advantage Fund - 2) Mirae Asset Large Cap Fund 3)HDFC Top 100 Fund 4)HDFC Equity Fund - 5)UTI Value Opportunities Fund- 6)Reliance Multi Cap Fund Plan switching of above funds to below funds (Direct-growth)  1) Franklin India Prima Fund 2) Franklin Indian Smaller Companies Fund 3) Franklin India Focused Equity Fund 4) Parag Parikh Long Term Equity 5) Mirae Asset Hybrid Fund 6) ICICI Nifty Nxt 50 Index Fund.

Except UTI Value Opportunities & Reliance Multi cap all other funds are good funds with decent returns. We would further recommend reducing number of funds to maximum 5 as high number of funds may haver tracking issue and returns would be reduced.

Rajarshi Roy, roy.nitk@gmail.com, Bengaluru: I am having 2 SIPs made via HDFC Security portal. Do I have to give them commission later when I withdraw? Is it a better idea to make the SIPs directly in the respective company portal? 

No you don’t require to pay separately when you redeem the funds. If the portal has offered you “Regular” Plans then they must be getting paid by the AMC you invest. We would advice you to opt for “Direct” funds to save commissions which would generate superior returns. But a caution of advice that to opt for direct funds you need to visit websites and keep a track.