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Investment advice for NRI

Last updated: September 1, 2016

Q & A Forum › Category: Investments › Investment advice for NRI
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Namakgroup asked 7 years ago
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.

  1. 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?
  2. 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?
  3. 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
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Sreekanth Staff answered 7 years ago
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;

How to select the right and best Mutual Fund Scheme based on the Measures of Volatility?

Mutual Fund Portfolio Overlap Comparison Tools

Best Mutual Funds to invest in 2016 (Equity Oriented Funds)


4 – Any date in a month should be fine.

Namakgroup
replied 7 years ago

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.

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Sreekanth Staff answered 7 years ago
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)

Kindly go through below articles;

Best Balanced Mutual Funds (Equity Oriented Schemes)

Best & Top Rated Monthly Income Plans (MF – MIPs)

Debt Funds : Types, Benefits & Risk Vs Return


 

Namakgroup
replied 7 years ago

Perfect, thank you.

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