Hi Sreekanth,
I wanted your advice on investing money in different MF's. Should I put lumpsum of 1.2lakh in L&T value fund or in icici prudential value discovery fund for three years,which is better?
And my mom has 2 lakhs to invest but only for 2 years, so which MF would be best?
I even wanted to try out MF SIP, I can contribute 5,000rs per month for 5 years,so is axis longterm equity fund good?
And I wanted to know the pro's and con's of SIP against lump sum investment. Please answer.
3 Answers
Hi,
If your investment horizon is around 3 years, better not to invest in a diversified equity fund, can be a risky affair.
Axis fund for 5 years, can be considered. Kindly note that this is an ELSS tax saving fund, and units allotted under each SIP have a lock-in period of 3 years.
Read:
https://www.relakhs.com/best-elss-funds-2017-2018/
https://www.relakhs.com/sip-systematic-investment-plan/
Hi Sreekanth,
Thanks for the immediate response.I wanted to know what time frame would be good for investment in a diversified equity fund(as you said 3 years would be risky) I would want to see if I can extend that much time and could you tell which is better for investment L&T value fund or ICICI prudential value discovery fund and also suggest minimum time period for which, the investment in these funds would be fruitful without it being risky,as I am ok to extend the time period.Thanks.
Thanks for the immediate response.I wanted to know what time frame would be good for investment in a diversified equity fund(as you said 3 years would be risky) I would want to see if I can extend that much time and could you tell which is better for investment L&T value fund or ICICI prudential value discovery fund and also suggest minimum time period for which, the investment in these funds would be fruitful without it being risky,as I am ok to extend the time period.Thanks.
Hi,
When we are investing in Equity funds, longer the duration/investment horizon, the higher the probability of making decent returns on investment. The volatility can be reduced.
L&T value fund is a bit aggressive in its investment strategy, have around 60% allocation to mid & small cap stocks.
So, if you would like to be conservative then you may consider icici value discovery, else L&T fund, for a period of at least 5 years or so.
Suggested readings;
https://www.relakhs.com/best-mutual-fund-schemes-2017/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
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