What should you do if your mutual fund schemes are not delivering good returns?

I was invested in ICICI Prudential Dynamic Fund earlier and then shifted my money to ICICI Prudential Multi Asset Fund. However, this fund is also not giving good returns. Should I stay invested or move onto some other fund? ?I am 45 and self employed.
Vidya Bala, Co-Founder,
replies: Multi-asset invests across equity, debt and gold and that is the current mandate for ICICI Prudential Multi Asset. Unlike its earlier mandate where it was dynamically managing an equity-tilted portfolio, it should now be viewed as an asset-allocated fund. To this extent, its risk profile and therefore, returns profile would have come down. If such a mandate no longer suits your original objective, you can shift to a multi-cap equity fund.

I am 26 and have Rs 3 lakh to invest. My horizon is five years, and this can be extended by another two years. Where and how should I invest this money?
Raj Khosla, Founder and Managing Director,
replies: Investment in equity linked market products carry high risk and high return probability and thus it is recommended to route your capital through Systematic Investment Plans (SIPs) or Systematic Transfer Plans (STPs). Avoid lump sum exposure. In the current market situation, follow the STP route. An STP will let you average out cost of investments and returns on portfolio over a period of time. You should park Rs 1.5 lakh each in the growth options of SBI Liquid Fund and Kotak Liquid Fund. Then start an STP of Rs 3,000 each towards SBI Bluechip Fund and Kotak Standard Multi Cap Funds for 60 months. You can start withdrawing funds after five years.

Can a person deposit Rs 15 lakh in both SCSS and PMVVY at the same time? How does one invest in these schemes and RBI floating interest bonds?
Adhil Shetty, CEO, BankBazaar,com
replies: As both SCSS and PMVVY are different schemes, you can invest Rs 15 lakh in each. You can invest in SCSS through any scheduled commercial bank or post office. Investment in PMVVY is allowed only through LIC. You can invest online through the LIC website or by visiting the LIC office. The RBI bonds can be held only in demat form and can be bought from public sector banks and select private sector banks. Do bear in mind that the interest payable for all three routes is fully taxable, and TDS is applicable. But senior citizens enjoy a Rs 50,000 exemption for interest income.

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