Hi Sreekanth,
I am a beginner in investments in SIP\'s Need your Expertise on how to start with investing in SIP\'s.
Below are my Querries:
1. As a beginner is it suggestible for me to start investing directly in Mutual Funds through SIP\'s or is it advisable to invest in ELSS through SIP\'s?
2.what are the suitable regular plans if I have to invest in SIP\'s through ELSS?
3.who is the right Mutual Fund Agent/brokerage firm to approach?
4.How to classify and choose the right fund? Awaiting your reply.
Thanks In Advance, Best Regards,Neelofer
3 Answers
Hi Neelofer,
1 - Kindly note that ELSS is also one type of mutual fund. So, is it that you want to know lump sum Vs SIP? May I know your investment objective? Are you looking at accumulating wealth and at the same time save some taxes?? What is your investment horizon (time-frame)?
2 - If your investment horizon is say > 5years and also would like to save taxes, you may consider investing in Franklin Taxshield Fund. Kindly go through this article : Best ELSS Tax Saving Mutual Funds.
3 - Anyone should be fine as long as they advice/recommend products based on YOUR financial goals and objectives. You can also check out online mf platforms like Fundsindia etc., However, kindly note that there is also an option to invest in DIRECT PLANs online.
Read:
Hi sreekanth,
Thank you for your advice!!!
As per your advice I have categorize my investment plans as below:
Answering to your 1st point, that if I want to "accumulate wealth and at the same time save some taxes" - Yes I want to accumulate wealth as well as save tax.
As far as investment horizon is concerned we have some short term goals as well as long term goals. Short term(In next 1 year) >> Car.
Long term(10 years down the line)>> Home loan repayment, Retirement Fund. [Home loan tenure - 20 years, Home loan amount - 32 lakhs, Home loan EMI starts from July 2016].
My(Self + Spouse) monthly surplus after the expenditure is 25000/- Should I invest directly in "Liquid Mutual Funds" without entry and exit load or in "SIPs" Please suggest me as to how can I diversify my funds in MF so that I reach my goals. Regards Neelofer
Hi,
Glad to know that you have identified your goals and then working on your Investment plan. But before creating your 'investment plan' , kindly check if you (self+spouse) are adequately insured or not (life & health insurance overages).
Read:
Short Term goal - You may consider investing in FDs, RDs and liquid/ultra short-term debt funds.
Read:
Long Term goals : You can consider investing in on ELSS fund for wealth accumulation + tax saving under section 80c. Read:
Kindly note that there won't be any Entry load on MF investments.
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