Can I have more than one SIP, and if yes, can I have it in different asset classes?

Yes you can have any number of SIP's in same Asset class as well as Different Asset Class.

SIPs can be done in any kind of MF scheme. Also, as many SIPs as you want can be done (any number of them for any amount). Invest through SIPs in liquid/ ultra short or short term funds for your short term goals (between 0 to 2 years)

Invest through SIPs in bond funds for your medium term goals (between 2 to 7 years) 

and invest across diversified equity MFs for your long term needs (goals after at least 7 years).

All these goals (short, medium and long) can have multiple SIPs for the purpose of diversification (within an asset class)

You can different SIPs in the same as well as different asset classes

One can have more than one SIP for several reasons. If your SIPs are linked to certain goals, the tenure of goals would dictate the asset classes and number of such goals will dictate the number of SIPs. If the SIPs are for general wealth creation purpose , number of SIPs should be limited based on your asset allocation. It is advisavble to limit the overall numbers to 4-5 SIPs so that they are monitorable and do not lead to over-diversification.

Yes, you can have more than SIP. Also, you can diversify across asset classes like Equity, Debt, Gold etc.

I have just started investing, do you think equity would be ideal for me or should I begin with debt mutual fund?

It all depends on Investment Time Horizon and Your Requirement of the Funds. Sometimes you can invest in both Debt & Equity as well for better Asset Allocation.

Equity investments are suited for long term investing (at least in excess of 7 years) for the goals which would require money after at least 7 years. Also, equity investments are meant for people who understand the volatility involved with this asset class.

Given that you have just started investing, you should first build an emergency fund (equal to 6-8 months of your monthly expenses) by investing the procceds in an ultra short/liquid fund. In addition, if you have any credit card outstanding, it's advisable that you square it off before starting to invest. After these 2 are done (retiring credit card outstanding and building an emergency fund), you should create a medium term fund (for goals occuring in 2 to 7 years) by investing ib corporate bond funds

Asset Allocation is the first step whenever you wish to start investing. Generally , thumb rule is 100 less your age should be the weightage of equities in your portfolio . However, it is advisable that you should seek professional help from an advisor to get a more personalised portfolio structure. What is most important , is that one should start investing as early as possible and have a long term approach to investing.  

This is depending on your financial goal. If your goal falls within 2 years you should not be investing in Equity. Rather Debt is a preferable option. In Debt category you may look for a Liquid fund or Short-Term Fund.

If the goal fall between 3 years to 6 years then go for Hybrid category. In case it is beyond 7 years then only go for Equity fund.

I am a salaried individual and I have worked very hard to build my savings. I am a bit scared to start investing. How do I invest in a safe manner?

It is very good hear you have built a saving. New things looks scary but once you start it is quite simple and easy. The corpus you have created can be parked in liquid funds and then do a STP to equity funds so that you invest without taking too much risk.

You may start with saving in bank in form of Fixed Deposit (FD) and Recurring Deposit (RD). Whatever amount to decide to save in FD & RD, 10% of it you can start investing in Liquid Mutual Fund and Balanced Mutual Fund. Once you are comfortable with the market volatility, you may increase your investment gradually. For better clarity on your risk-taking appetite and financial goals, contact your Financial Advisor/Planner.

To begin with, categorise your goals/needs as per short (0 to 2 years), medium (between 2 to 7 years) and long term (in excess of 7 years). Then prioritize them

And then invest the current and future cashflows and current savings available as per the impending needs.

For  your short term goals invest in short term MF products like ultra short and short term funds. For medium term goals you can invest in bond funds or banking and PSU debt funds and for your long term goals invest across diversified equity MFs. While investing in equity funds it is suggested that you invest in a staggered fashion. if you have monthly surplus, you can initiate a SIP (Systematic Investment Plan) across diversified equity MFs, if you have lumpsum money available, you can start investing in the equity funds by initially putting up the amount available in the respective liquid/ultra short fund and then start a STP (Systematic Transfer Plan) to the equity fund over 6 or 12 installments


The very first idea of investment of a salaried individual is to beat the inflation consistently and sustainably so that savings retain the value to take care of post retirement phase. Equity as an asset class has beaten inflation meaningfully over a long period of time. However, as you seem to be risk averse, a combination of debt funds and balanced funds could be the right option for you. This will give you a safe start to future retirement planning. As you go forward , you should take help of a financial advisor to sail you through in this journey.

What should I consider to ascertain my risk appetite? How do I know if I am a conservative investor or an aggressive investor?

The best way for anyone to know is what will you do when a fund you have invested turns negative. Will you invest more ? Stay invested ? Or redeem ? Risk taking ability also depends on various factors like Age, Income sources, Dependents, Other investment done already. So it depends on each individual.

DIY (Do IT Yourself): you will have to make a note of your own behaviour and sentiment when markets go up or down. And then do analysis come to the conclusion.

Professional: You should contact your Financial Advisor/Planner so that no blind spots are there.

Note: Risk profiling depends on number of factors like demographic, financial goals, what is your relationship with money when you were child, teenager & adult, your current nature income etc.  

To me, risk (what you undertake on your money) is defined by the need, by your future goals. If majority of your goals are short (occuring between 0 to 2 years) and medium term (arising between 2 to 7 years) then for these goals you should invest in liquid/ ultra short term funds (for short term  goals) and for long term goals (due after an excess of 7 years) invest in diversified equity mutual funds.

Based on your investments, if your majority investments (depending on your future needs/goals) are in the short and medium term category, you are a conservative investor. And, if your majority investments are in long term assets you are an aggressive investor.

In order to ascertain your risk appetite, you should consider various situations and your reponse to those situations. e.g. if you are considering an investment where there are chances of losing your principal amount partially and at the same time there is also a likelihood of gaining substantial returns , your comfort of taking this risk defines your risk appetite. Risk appetite is also associated with your income levels, occupation and several other behavioral factors. However, more important is that the investor should clearly know the risks associated before making investment decisions because most investment accidents happen due to limited knowledge of risk return profile of an instrument.

I earn Rs. 50,000 per month. How much should I invest every month for a retirement corpus of Rs. 4 crore?

Assuming the current age as 30 and retirement age is 60 one should start saving Rs 18000/- per month assuming ROI is @ 10%.


Without providing any basic details about you like your age, risk profile, retirement age, etc it will not be possible for me to answer your query


  • Rate of return is 11% pa.
  • Retirement age 58 years

Investment is subject to market risk, please read the document carefully before investing

Current Age

Monthly investment


Rs. 11,500/-


Rs. 20,000/-


Rs. 35,000/-



PV             40,000,000      40,000,000      40,000,000      40,000,000
After (years) 20 25 30 35
FV           154,787,378    217,097,306    304,490,202    427,063,259
inflation 7% 7% 7% 7%
Monthly inv.required                   156,469            115,548              87,123              66,407
Returns of monthly investment done 12% 12% 12% 12%

The chart above details 4 scenarios 

PV (Present Value) means the amount needed if you were retiring today

After refers to the number of years you are retiring after

FV (Future Value) means the amount (extrapolated for those years at an inflation rate of 7%)

Monthly investment required in computed at a compounded returns of 12% per annum. These long term investments should stay invested for at least 7 years

Alternatively, if you require Rs. 4 cr.after certain years ( as mentioned below), the mobthly investment required to be made for that is as under

After (years) 20 25 30 35
FV             40,000,000      40,000,000      40,000,000      40,000,000
inflation 7% 7% 7% 7%
Monthly inv.required                     40,434              21,290              11,445                 6,220
Returns of monthly investment done 12% 12% 12% 12%


We would require more information from you before advising on the quantum of investment required to reach a retirement corpus of 4 crores. However, you will get a clue when I say that if you do an SIP of 25000/- for 27 years then assuming a return of 10%, you might reach this target. However, depending on your expenses, years to retirement and other family obligations you can decide on your SIP amount.   

What are the differences between active and passive investing? And which one is better?

Active investing means there is a Fund Manager & a Fund Management Team that will research the companies and identify the stocks to buy / sell.

In case of passive investing, there is no role played by a fund manager or the team to identify the stocks to buy/sell. Eg. NIFTY Index Fund - where the stocks are bought in such proportion that the portfolio mirrors the NIFTY.

Passively managed funds have lower cost as compared to Actively managed funds. However, this does not necessarily mean that Passively managed funds yield a better return than Actively managed funds. Over a fairly long period - 5 years or more - many actively managed funds have outperformed the Passively managed funds. 



Major difference in active and passive investing is in style of investment and cost of fund management. Active investing involves portfolio creation based on fund manager's style of investing which includes growth or value biases, fundmental analysis of various sectors and stock selection approach. In case of passive investing , stock selection and allocation weightage mirrors the underlying index or benchmark. Active investing involves lot more fund maanger involvement while passive investing involves limited role to be played by fund manager . Therefore, cost of active investing is almost always higher than passive investing.

In nutshell, Active Fund manager endeavours to beat the benchmark in order to create alpha and thereby justify higher expenses.

Active Investing means Fund Manager or Portfolio Manager actively takes decision with the portfolio on Regular Basis to generate the Returns Over and Above the Benchmark to Generate Alpha Returns.

Passive Investing means no active Roles in Portfolio like investing for long term in Index Fund or ETF Etc. Returns Matches with the Benchmark Returns.

Active investing requires adequate and in depth knowledge of markets, instruments and most importantly, the ability to withstand losses and setbacks. 

Mutual fund schemes gives you the cheapest cost option of investing in the market as a passive investor as you get access to very highly qualified, experienced and well paid fund managers to do the active management of your funds while you remain passive. This option allows you not to take the risk of uncertainty off success, gives you time and piece of mind to focus on your core strength, your profession / trade. I would advise passive strategy through investment into MF schemes with proper asset allocation.

Active investing allows the fund manager to choose stocks and their proportion while building a portfolio in line with the objectives and directives of that scheme. Also, the changes happen keeping in mind the fundamental attributes of a stock and fund manager's views on the underlying businesses/industries

Passive management needs the fund manager to follow an index (based on the specific product in question)

Owing to the fact that the former (active management) requires research and due diligence on the securities at hand the expenses are higher than passive management

Active management strategy seems to work better in economies of developing nations where the market information is far from perfect. This leaves room for many opportunities and sweet spots in securities purchase increasing the possibility of superior returns (vs the benchmark/index)

What's the difference between investing in Equity Mutual Funds and ULIPs?

Equity Mutual Funds invest in the shares of the universe mentioned in the offer document (in could be as per market caps- large, mid and/or small; as per investment style- growth, value or blend; as per sectors- diversified or specific sectors like, banking, infrastructure, pharma etc.

ULIPs (unit linked insurance plans) are primarily a two in one. They combine investments and insurance. They provide a risk cover to the extent of the current value of the investments made. 

Mostly the expenses of ULIP are multiple times those of equity MFs. This often makes the Equity MFs superior in performance to ULIPs

What would you suggest me to invest in, if I am planning to study abroad in the next 3 years?

One Should Invest in Debt Instruments for this time Horizon. One Can Look at Quality Debt Portfolio Fund.
A debt fund would be most suitable for such a tenure. Invest in a well managed corporate bond fund and Banking and PSU debt Fund

What and how much should I invest in so that i can buy a house in the next 5 years?

Option 1: Supoose if the Present Cost of a house is Rs 30,00,000/-  and inflation is @8% Future Cost of the house is @ Rs 44,07,984/-  one should invest Rs 60,000/- per month with 8% Return on investment.


Option 2 :  if the Present Cost of a house is Rs 30,00,000/-  and inflation is @8% Future Cost of the house is @ Rs 44,07,984/-. Assuming to go for a bank loanf with Down Payment of Rs 4,07,984/- and taking Loan for Rs 40,00,000/- with Interest rate @8% for Next 20 Years EMI Would be Rs 33458/-.

A debt fund would be most suitable for such a tenure. Invest in a well managed corporate bond fund and Banking and PSU debt Fund

My daughter is 3 years old and I wish to finance her college education when she turns 18. Where should I invest to achieve this goal?

Over a 15 year time horizon, Equity tends to yield a better return than non-equity instruments. However, equity also is highly volatile!!


Therefore, the ideal way to meet this goal is to start a monthly Systematic Plan in an Equity fund or an Equity Hybrid fund. More important is for you to be willing to tolerate high fluctuations and to accept long periods of low returns during the 15-year journey.

The goal is 15 years hence, therefore, one should look at investing in riskier asset classes viz, equity or aggessive baalanced funds. At the same time, one should have sufficient term insurance cover on the earning member to take care of college education and other family requirements in case of any eventuality in the intervening period.


You might have to find out what is today's cost of Particular Course and what is the inflation for that particular course or degree start saving inline with your requirement to match the future expenses. As the Time Horizon is 15 Years you can Invest in Equity Mutual Funds on the 14 Year you might have to Switch your Investment to Debt or Liquid Funds to Avoid any Uncertainties

15 years is a very good time in the current situation in India to invest for a particular goal. You can choose to do systematic investment (SIP) monthly into equity funds (one large cap fund and one mid cap fund). If you do not disturb the same for 15 years and continue the SIP for 180 months, you will have more than desired amount for her education. You can then withdraw the necessary amount for education as and when needed and continue the SIP and hold on t othe remaining amount in the investment. 

Alternatively, if you want to invest a lumpsum amount then, please put the investment into a short term debt fund and put a 12 month Systematic Transfer Plan from this short term fund into 2 equity funds, one large cap and one mid cap. You will get average NAVs of coming 12 months for entry into equity funds and then hold it without disturbing for 14 years. The desired result will be achieved.  

You are better off investing money for her her higher education across well managed diversified mutual funds. Be a long term investor (at least 7 years plus). Invest across large caps (around 75-80%), mid caps (10-15%) and the balance across mid cap Mutual Funds

Also, across each market caps diversify through 2-3 MF schemes.

The best way to invest this corpus is through monthly investing by doing a SIP (Systematic Investment Plan) . Even if you have a lumpsum amount you are better off investing it in a liquid fund and transferring a fixed amount every month in the respective equity Mutual fund across 12 months through a STP (systematic transfer plan)

Can I gift Mutual Funds to my younger sister, who is a minor?

Technically, Mutual Funds are non transferable and therefore, gifting of MF units is not possible. If one wishes to do so, one should sell his/her MF units, transfer funds as gift to sister and she may purchase same MF units in her name. However, if sister is a minor ,then only gurdian can purchase the MF units on behalf of minor.

Investments in minor's name from a third party can be done in child gift mutual fund schemes.
Either of the parents have to be the guardian and payout account has to be of the kid (As per regulatory guidelines, payout can't be into third party account from January 2020) and donor can be anyone in this segment of schemes.
Yes, you can gift equivalent amount of money to your sister who is a minor, but the clubbing of income will remain in your name as far as income tax is concerned. You can then use the money from her bank account which you have gifted, to buy MF units in her name through your parents as guardian till she becomes a major. Once she becomes 18, she can continue to hold the investment in her name for future.

Unlike shares, mutual fund units cannot be simply transferred from one person to another, except on demise of the unit-holder.

The ideal way to do it is to open a minor bank account in your sister's name. You can be the guardian for her.

Also, investments have to be done in your sister's name with you as a guardian.

When she turns into an adult, she will have to apply for a status change (from minor to major) for those investments and they will eventually be in her name.

How to select a good mutual fund to earn maximum returns?

Choose a MF based on it's past long-term data (for more than at least 7 to10 years). Go for a fund which has minimised risk and maximised returns among its peers. We want to identify optimum risk adjusted returns of a fund.

Check whether the investment universe of the fund is as stated in its' objectives, that the processes are in place (and being adhered to) for stock selection and buidling up of the portfolio, and that it is not individual driven. 

Also, accord weightage to a fund house in terms of its operational ease and access to information needed.

Asset allocation between equity, debt and commodities help maximization of return while protecting the downside over a period of time for a portfolio. There may be a short period in which a particular scheme may give highest return, but, while choosing a scheme one should evaluate rolling returns over 5 years and 10 years so that overall portfolio performs better.  

1. Set Your Financial Goals Before Investment

2.Define your Risk and Reward Ratios

3.Check the Fund History and Track Record of the Funds and Fund Manager track record

4. Expense Ratio and Loads

5. Select a Fund which is appropriate for your Time Horizon

6. Take the help of an Advisor

What are the sectors I should consider investing in 2020 and why?

Avoid taking specific sector bets on your own. You are better off in a well managed diversified equity Mutual Fund as the fund managers' increase or decrease their expsoure to various sectors keeping in mind its future sustainability. It's best to trust these exprerts than try and make a decision with limited information/skill set
In equity, one should look at future, 2 to 3 years down the line before deciding a sectors. Retail investors are better advised to buy large cap, mid cap and small cap funds rather than secoral funds as fund managers are better equipped than investors to choose sectors and back them in their respective schemes. Pharma and Technology sectors are looking good for the next decade for India. 
Sector Oriented Schemes Gives High Risk & High Return. In My View Automobiles,Banking, Pharma, Telecom, Cement, Software one can look at it.

What kind of tax benefits can senior citizens avail?

Mutual Funds
By investing in mutual funds, under Section 80C, one can be eligible for tax deductions up to Rs.1.5 lakh per year.

National Pension Scheme (NPS)

The National Pension Scheme can be availed by individuals between the ages of 18 and 65 years. Senior citizens can extend the tenure up to the attainment of 70 years of age as well. Under Section 80C, taxpayers are eligible for deductions up to Rs.1.50 lakh on the investment made towards NPS. Similarly, under Section 80CCD, individuals are also eligible for additional benefits up to Rs.50,000.

The investment made towards the NPS scheme can be directed towards equity bonds or debt bonds, or both depending on the individuals choice. Though NPS does not offer a steady rate, the scheme generates excellent returns and your investment can grow at a faster rate by orienting your NPS towards equity funds.



There are specific tax advantages given by the Governement to senior citizens and various schemes are available for them. However, they are better advised to consult their chartered accountants for the same. 
80C - Mutual Funds Investments Upto Rs150000/- is exempted
80D - medical expenditure can be claimed upto 50000 if they have not taken any health insurance
80TTB - Interest from saving bank account can be allowed as deduction upto 50000 whereas it is 10000 for the non-senior citizen.

What to do if mutual funds are giving negative returns?

Review the risk data and performance numbers (vs index and its peers) of the scheme for the last 7-10 years. If you find inconsistencies in the abovemnetioned data for at least 4-5 quarters, you may want to evaluate exiting the fund. While executing the exit be mindful of the tax implications and exit loads. Be clear that you are not judging in a hurry and remember that the preformance most often is in line with the equity markets benchmark. 

However, it could also be a debt fund during an interest rate hardening cycle or a debt fund having poor credit quality securities which could be losing the money. If its the fomer you could hold it longer till the cycle starts turning or till the accrual returns make good the loss. If latter is the case, please consult your advisor for actionable. 

Every MF Scheme in a portfolio of a client is chosen with a clear objective and has a benchmark return for comparision. For example, in an upward trending growth market, a value oriented scheme may give negative returns. Small cap scheme may give a negative return during the commencement of a long term bull run due to focus on large cap. One needs to always evaluate the overall performance of a portfolio before taking a decision on an individual scheme. A gold fund may give negative return when equity schemes are doing well. Therefore, we have to evaluate the reason for negative returns, compare with benchmark, look at the period for which negative return is happening, before taking a decision to redeem / change / or continue with the scheme.
 Stick to your Basic Investment Plan as Time Horizon of your investment and Risk & Reward Ratio. Please review the Fund in detail and Analyse for what reason it is down if the whole sector or segment is underperforming for any specific reason wait for some time. Take the Help of the Advisor to review and take decision on the Subject.


All the data/information shared above are opinions/ views that solely belong to the Mutual Fund Distributors. UTI Mutual Fund (acting through UTI Trustee Company Pvt Limited) / UTI Asset Management Company) owes no responsibility/ liability whatsoever in this regards. The information contained should not be construed as forecast or promise, and the only objective of this initiative is to educate the consumers to take a more informed investment decision. Any investment decision taken based on the information provided in the content above shall be at sole risks, cost and consequences of the user.



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