Query corner: Mutual Fund

I had invested nearly Rs 1.5 lakh in tax-saving mutual funds with a lock-in of 3 years. Now, the maturity period is almost up and there has been no communication from the fund house. I also do not remember the mutual funds I have invested in. What do I do now?

Since equity-linked savings schemes are open-ended in nature, your investments would continue even after completion of the 3-year lock-in period unless you opt for redemption. You can contact your financial advisor/broker who can help you with getting the details of your investments. Once you trace the names of mutual funds you have invested in, then you can call the respective fund houses for locating your investments.

I am 25 and have just started my career. My monthly take-home salary is Rs 35,000. I have been investing in 3 mutual funds — Birla Sunlife Mid Cap, HDFC Equity Growth and HDFC Prudence — through the SIP route. Apart from this, I am directing Rs 5,000 per month towards a life insurance endowment plan. I am planning to invest in two more mutual funds, one an ELSS fund and the other a non-tax-saving equity scheme. I am looking for long-term appreciation. Please guide me.

Your current mutual fund portfolio includes well-performing schemes. SIP is an ideal mode for investment in mutual funds. However, since ELSS has a 3-year lock-in period, each SIP instalment would be locked in for the next 3 years from the date of investment. Insurance should be ideally used for risk-cover purpose and not for investment and therefore I would suggest opting for a term assurance policy. Since you are just 25, premium would be cheaper and you can invest the balance amount in mutual funds, which would optimise your investment returns, rather than sticking to an endowment plan. For your further mutual fund investments, you can consider DSPBR Top 100 Equity and Fidelity Equity Fund.

I am an NRI from Saudi Arabia and would like to start investing in mutual funds in India. Could you tell me if I can start trading in mutual funds online? Also, could you provide me with a list of fund houses or distributors which offer this facility to their investors?
— Govinda Thirtha B

Yes, investing in mutual funds through the online route is possible now. Most of the fund houses in India offer investments in their respective funds through the online route. Secondly, you can also invest online through banks or online brokerages such as ICICI Direct, Kotak Securities, India Infoline, Sharekhan, etc. You can visit the fund house or brokerage website to get more details. For more information on fund performance, ratings, research, etc, you can also visit www.morningstar.co.in.

By Chintamani Dagade, Senior Research Analyst, Morningstar India.

(Our MF expert Takes you Through the Labyrinth of MF investments In This Weekly Column. Email to etquerymf@indiatimes.com)