Advice on lumpsum investment in HDFC corporate debt fund

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sachin22022 asked 9 years ago

Dear Sree, I have invested a lump sum of 18 lacs in HDFC corporate debt fund and another 3 lacs in HDFC FMP in Feb 2017. Seeing the present scenario is it the right investment? I have a time horizon of 10 years am 41 years of age and motive is wealth creation My second question is regarding a general question on Mutual Funds. Everyone advise that for good returns one has to remain invested in a good fund for a longer term. But there are other advice as well which says that keep monitoring your fund performance and if it goes down then opt for a better one. Both of these pieces of advice seem contradictory. Want your view on this please advice. Thanks Sachin

4 Answers

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Sreekanth Staff answered 9 years ago

Dear Sachin, Have you invested in any other MF schemes? especially in Equity oriented?? If your motive is wealth accumulation and time-frame is 10 years, you can consider equity oriented and hybrid equity oriented funds. Remaining invested for long -term is a correct advise if it is the case with equity oriented securities or schemes. Over the long run, same set of funds or securities may or may not consistently perform well . But the point is not to churn ones portfolio very often say every year. Its not possible to be with the best every year. Today's rank 1 MF scheme might be tomorrow Rank 10. So, consistency is the key. Also, let's say a fund consistently performs bad w.r.t category and benchmark, an investor can surely think of coming out after tracking it for good amount of time (say 2 years ....).

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sachin22022 answered 9 years ago

Thank you very much Sree for answering. Yes I have invested in HDFC Balanced (SIP) Mirae Asset Emerging Bluechip (SIP) SBI BlueChip (SIP) for 3 years and then I would stop SIP and leave the money in these funds to grow on its own. I hope the selection of funds is OK. I am also planning to invest in ICICI Pru Value discovery SIP very soon.

Thanks again
Sachin

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Sreekanth Staff answered 9 years ago

Dear Sachin, Your portfolio looks fine. Do keep a track of its performance. Kindly read : https://www.relakhs.com/best-mutual-fund-schemes-2017/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ For long-term allocation in debt, may be a Dynamic bond fund or a Floating Rate Debt fund. https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/

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sachin22022 answered 9 years ago

Thanks Sree for the advice.