The Mutual Fund Show: Hybrid Schemes Help Offset Global Uncertainties, Growth Concerns

Hybrid funds comprise a blend of assets such as stocks, gold and bonds. And amid uncertainties such as global conflicts, such schemes could be ideal for investors.

Arbitrage funds are a popular choice for parking money in the short term. The downside in these funds is very limited, according to Mathpal. Edelweiss Arbitrage Fund and Kotak Arbitrage Fund are his top picks.

Kotak Equity Arbitrage Fund and SBI Arbitrage Opportunities Fund were Adhye's top picks.

Query 1: I'm planning to start Rs 20,000 SIP with a time horizon of seven years in these four funds and increase the investment amount annually. Have I chosen the right funds for my SIPs? Additionally, I'm planning to invest Rs 50,000 as lumpsum. So, should I make the investment post-election?

Quant Small Cap Fund (Direct)

Nippon India Growth

Parag Parikh Flexi Cap

SBI Long-Term Equity Fund

Name: Sahil Dhanani I Age: 25 years

Udayan Adhye: Well-built portfolio in terms of the four funds that you have selected.

Pankaj Mathpal: If he is investing in the SBI fund for the purpose of saving on taxes, he can proceed with it. If not, I would suggest replacing this fund with ICICI Prudential Nifty 50 Index Fund, which offers greater exposure to large-cap stocks. For the other Rs 50,000 investment, ICICI Prudential Large and Midcap Fund would be a good choice. Invest the money in a staggered manner, and no need to wait for after elections.

Query 2: I have around Rs 2.5 crore invested in MF and PMS. I do Rs 10,000 SIPs and add some lumpsum amount whenever there is a dip in the market (average Rs 3 lakh monthly including SIP and lumpsum). I am 48 years old and hope to make my total investment Rs 4 crore in 2 years when I'm 50 for my retirement. My plan is to withdraw 0.5-0.75% monthly from my total investment as SWP for monthly expenses. Additionally, I have taken one PMS called IIFL Multicap PMS, with a growth of approximately 12% in 2 years. Have I chosen the right funds and is the PMS a good idea?

Name: Narayan I Age: 48 years

Pankaj Mathpal: If you expect Rs 4 crore in two years with the money invested, it's not realistic. So, either you have to increase the investment amount or the investment horizon.

Udayan Adhye: If increasing the investment amount or pushing the retirement age is not possible, you can try to decrease the monthly take-out amount post-retirement.

Query 3: My father has a retirement corpus of Rs 25 lakh and wants to invest it in different instruments. Can you guide us?

Name: Sreenivas I Age: 50 years

Udayan Adhye: Take out Rs 5 lakh from the total and keep it in a fixed deposit or arbitrage fund. And the rest of it can be invested in government schemes, hybrid funds, and equity funds.