Hi Sreekanth,
I am 40 Yrs old software professional residing in Singapore. I am looking for your advice on investment in mutual funds. I am new-bee in this area...read out most of your blogs, I must say, it was very informative and useful.
My case is as below:
I am holding equivalent of 50L rupees in Singapore which can be remitted to india any time. Also I have @2L of monthly surplus of investment. My main objective for next 5 years is wealth generation, so I am ok to take moderate to high risk.
- what will be your suggestion for lump-sum investment? shall I invest in debt/balanced stock with dividend option and move the dividend via STP to equity stocks? any fund suggestion here?
- for monthly investment of 2L, I am looking at SIP...for all the reading from your blogs, I am thinking of going for below combinations.....40% in small cap, 40% mid cap, 20% in large cap. is this right?
- any prefer date I shall look for SIP investment. I created 6 SIP for ICICI value discovery direct growth fund on 1, 7,10, 15, 21, 28 as dates...INR 2000 each....is it right approach? shall I follow it for rest of investment?
2 Answers
Hi,
Thank you for following my blog posts!
1 - May I know if you have any specific reason (or) investment strategy for accumulating and holding Rs 50 Lakh?
2 - It's a complex strategy and unwarranted to do STPs of dividends.....
3 - If your investment horizon is around 5 years, my suggestion regarding allocation can be Balanced fund (30%) + Large cap fund (30%) + Diversified Equity fund (20%) + Small/mid-cap fund (20%).
Kindly read below articles;
http://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
http://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
http://www.relakhs.com/top-15-best-mutual-funds-schemes-2016-sip-lumpsum/
4 - Any date in a month should be fine.
Hi,
Thanks for the feedback.
1. 50L got accumulated mainly due to growing exchange rate…kept money only in SGD without remittance…its not invested anywhere yet. Shall I invest this amount via SIP or lump sum in specific fund? for lumpsum investment, shall I go for debt fund or balance fund?
I gone through the attached link and shortlisted the funds to start SIP.
Hi,
Lump sum investment : If your investment horizon is around 5 years and wealth accumulation is your investment objective then you may consider opting for STP route for major portion of your corpus;
- STP from Liquid fund to balanced fund. Ex: HDFC Liquid fund to HDFC Balanced fund.
- A minor portion say 25% can be invested in an Aggressive MIP-Growth plan. (lump sum)
- A minor portion say 10 to 15% in Short Term Debt fund or Dynamic bond fund (lump sum)
Perfect, thank you.
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