You are doing an awesome job for amateur investors like us.
I have two questions.
1. I want to deposit all. my money from bank account to liquid funds monthly and then direct invest from liquid funds to equity fund for sip. So what is the procedure for it. And which is best liquid fund for this? At this time I invest in Axis liquid fund growth directly.
2.
* I have taken 3 large cap funds as below.
(i). HDFC Equity Fund - Regular Plan - Growth
5000/-
(ii). RELIANCE TOP 200 FUND - GROWTH PLAN GROWTH OPTION REGULAR PLAN
5000/-
(iii).IDFC FOCUSED EQUITY FUND GROWTH PLAN DIRECT
3400/-
* And I have make sip registration for these 2 funds as below. But it is started from 7 December 2018.
(i). Motilal Oswal MOSt Focused Multicap 35 Fund Growth plan direct
5200/-
(ii).Aditya Birla Sun Life Banking and financial services fund Growth plan Direct
7000/-
(in this I have not register abslmf as biller. I have some tension in this mf after registration after knowing news about debt of banks.)
* And I want to invest more in these 2 sips from December 2018, but not registered yet.
(i). IDFC INFRASTRUCTURE FUND GROWTH OPTION DIRECT
7000/-
(ii) RELIANCE SMALL CAP FUND GROWTH OPTION DIRECT
7000/-
I can make total investment of 35,000/-rupees sip monthly.
So please give me guidance. Are these right investment or any changes are needed. I will invest for 3 to 5 years at least. And if possible it may upto 10 years. As I am housewife and I will invest my mother's pension amount monthly, which are not used mostly. She live with me. My husband has business. I have no liabilities, but I make some more gain.
Your valuable suggestion is highly appreciable.
Best regards
Purna Dave .
2 Answers
Dear Purna,
1 - This process of investing is known as STP - Systematic Transfer Plan.
You invest lump sum in liquid fund(s) and set up STPs (fixed amount at regular intervals for a fixed period of time) to other MF Schemes (ideally Equity oriented schemes).
Kindly note that STPs can be set up between/among the funds that belong to same AMCs.
For ex : Axis Liquid fund -> STP to -> Axis Long Term Equity (ELSS fund).
Axis Liquid fund to Franklin Tax shield fund can not be set up.
Kindly read :
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
https://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/
2 - Is it Dec 2017 or 2018??
Have you already invested in the first three funds or planning to invest? (HDFC Equity , Reliance 200 & IDFC Equity).
Is your mother dependent on pension amount / gains generated from these investments? (or) Are these investments for wealth accumulation?
Respected sir,
Thanks for your kindly reply.
HDFC Equity , and Reliance 200
Are already taken before 3 months & IDFC Equity is taken just a month before. Others are planning to start sip from December 2018.
2. My mother and we don’t use her pension amount. So I
think to use it wealth creation.
Best Regards
Purna Dave
Dear Purna,
Below is my reply to your PVT query ;
HDFC Equity though its performance in recent years is not top notch, it is a decent performer, can hold on to it.
Reliance top 200 is a large cap fund and a good fund to hold.
IDFC Focused fund - given a choice, I will ignore this fund.
If your investment time-frame is around 10 years, you may add one mid-cap/small-cap fund and a balanced fund to your portfolio.
Ex : Mirae Emerging Equity/Franklin Prima - Mid cap category
HDFC Balanced fund etc.,
Kindly read :
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/best-mutual-fund-schemes-2017/
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