Money Control: Want to become rich through mutual funds investment in SIP mode? Expert Balwant Jain has these tips for you

Money Control: Investment expert Balwant Jain says, which funds are good for you? What are the risks involved and if you can switch between funds.

Money Control: Continuous payment defaults towards your SIPs may lead to policy lapse. Be aware investors, advises Balwant Jain. Photo: Reuters

Money Control: Facing problems in solving the Mutual Fund conundrum? When it comes to mutual funds investment, generally it has been found that investors feel the heat while selecting the investment tool means funds and the mode of investment as they want to become rich as soon as possible. To make the investor's dream into reality, tax and investment expert Balwant Jain has some ideas and funds that can help a mutual funds investor become rich at a faster rate or maybe a crorepati in a long-term time horizon.

What will happen if you stop the Systematic Investment Plan (SIP) before the maturity period ends? When to include international funds in your portfolio? How to get a Rs 30000/month on an investment of Rs 50 lakhs? How to start a new SIP in an existing scheme? Will your old SIP stop with a new investment or how to transfer from one AMC to another?

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Generally, an investor would start investing at the age of 30 years and as per the investment trends these days, one earning individual has ben found investing up to Rs 20,000 in a month. Can he take more risks? Which funds are good for him? What if he stops the SIP after 2 years?

Answering such queries Balwant Jain said that such earning individuals can invest in small-cap funds. The investment should be diversified into different categories. Rs 20,000 should be invested in four different schemes. The old SIP will not stop starting a new SIP. One can start a new SIP without stopping the old SIP. Ashwini can increase SIP to increase his investment. No need to redeem the old SIP. Some AMCs offer options of annual increase

Investment Transfer
It is not possible to transfer investments between different funds. One will have to redeem the fund to get a transfer from the AMC. The investor can start a new SIP after redeeming the old one.

Continuous non-payment can lead to the lapse of the policy, Usually, it is after three defaults. The fund house will not charge any cancellation fee from you. The bank may, however, charge you as per the policy.

Mutual Funds recommended for SIP investors

Asked about the mutual funds or SIP funds for mutual fund investors Balwant Jain recommended the following funds — Axis Blue Chip Fund, Kotak Standard Multicap Fund, L&T Mid Cap Fund and SBI Small Cap Fund.

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