The Mutual Fund Show: Investment Strategies For 2024 Election Season
Should investors sit tight or invest over the next few months? Here's what experts have to say.
The upcoming Lok Sabha 2024 election will be an important event, as it will set the tone for long-term potential in the markets. "Be mindful of the time horizon and purpose," said Santosh Joseph, founder of Germinate Investor Services LLP to NDTV Profit on The Mutual Fund Show. "It can be a rewarding experience."
Existing investors must sit tight and new investors should stagger their entry over the next few months, he added, advising them to keep "a minimum five-year view". However, "some thematic funds can give quick-fire returns".
With India pushing for growth like never before, investors should consider sectors that benefit from the government's plans, according to Pankaj Mathpal, founder and chief executive officer of Optima Money Managers Pvt. His advice is to "take a call once you know who is forming the government".
The key themes? Defence, manufacturing, and Public Sector Undertakings.
Query 1: I started an SIP of Rs 1,000 per month in HDFC Flexicap Fund six months ago. I also do a top-up of Rs 100 per month along with the existing SIP amount. Is it a good idea?
Name: Sudheer | Age: 49 years
Pankaj Mathpal: Major allocation is in large caps. HDFC Flexicap Fund is one of the best funds in its category. Continue SIP in this scheme.
Santosh Joseph: Great to do a step-up. Keep going for maximum benefit.
Query 2: I am planning to start Rs 1,500 SIP in six funds and increase the investment amount annually by 10%. I wanted to know if I have chosen the right funds, and should I change any of them?
Name: Dharanesh | Age: 25 years
Pankaj Mathpal: Mid-cap fund is missing. Replace Nippon India Nifty 50 Value Index Fund with Motilal Oswal Mid Cap Fund.
Santosh Joseph: Too many funds. Keep it simple and start with two or three funds.
Query 3: I would like to invest Rs 2.5 lakh in mutual funds. Can you guide me to add the right funds to my portfolio?
Name: Srujan | Age: 20 years
Pankaj Mathpal: Assuming that the investor's time horizon is five years or more, ICICI Pru Flexicap Fund and ABSL Multicap Fund are my recommendations.
Santosh Joseph: Start with a flexi-cap or multi-cap fund. Make sure to select a tried-and-tested fund, with a track record.
Query 4: I am investing in a few funds and saving for 10 years. I would like to accumulate Rs 75 lakh for my child's education. Are these funds the right choice for SIP—HDFC Balanced Advantage Fund, HDFC Multicap Fund, SBI Bluechip Fund, Parag Parikh Conservative Hybrid Fund?
Name: Akshay | Age: 34 years
Pankaj Mathpal: Increase SIP amount from time to time. Consider equity funds over hybrid funds for long-term. Replace Parag Parikh Conservative Hybrid Fund with Parag Parikh Flexi Cap Fund. Cancel the SIP in HDFC Balanced Advantage Fund. Divert the amount to HDFC Multicap Fund.
Santosh Joseph: Mix of good funds. Stay disciplined. Do not withdraw prematurely, till the goal is achieved.
