Need help on lumpsum investment

Q & A Forum › Category: Investments › Need help on lumpsum investment

Amogh asked 9 years ago

Hi Sreekanth, I am 35 yrs old and unmarried man. I have been investing in mutual funds since 2 years in below mentioned mutual funds every month. Canara robeco emerging equities – 5k HDFC balance funds -Direct growth– 3K ICICI Focused bluechip fund -Direct growth – 5K ICICI value discovery fund -Direct growth – 5K ICICI balanced fund -Direct growth – 5K Tata balanced fund -Direct growth – stopped SIP and planning to withdraw due to bad performance. DSP BR tax saver fund -Direct growth - 100000 lumpsum - started this year for tax saving and long term goal. Apart from this I have around 20 Lacs of savings in FDs which I am planning to shift to equity funds through STP from debts funds. I am moderate risk taker for 3-5 year duration. I have emergency fund kept aside. I have 4 questions here.

Are these funds good to continue?
Is it good idea to invest 20 Lacs in ICICI short term debt fund or ICICI saving fund instead of ICICI liquid fund for STP (better returns than liquid fund)?
Can I assign STP above mentioned 3 icici equity funds from single icici debt fund?
Is there any better strategy/options to invest 20 lacs to get better returns with moderate risk?

It will be great help if you review my above portfolio and provide your guidance regarding addition or change in my portfolio. Thank you Amogh

2 Answers

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Hi, 1 - Yes, you may continue with the listed funds. 2 - Consider Liquid fund for STPs, as short term debt funds can be riskier than liquid funds. 3 - Yes, you can assign STPs. 4 - May I know your investment horizon and objective(s) for this lump sum investment? (Rs 20 lakh). Related articles : https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/200-day-moving-average-dma-mutual-funds/

Amogh replied 9 years ago

Hi Sreekanth,

Thank you for your prompt response.

Regarding 4th answer, I would say, my investment horizon is more than 5 years and objective is wealth creation as I have linked my goals with equity funds for long term investment (SIP).

I do not intend to invest 20L in lumpsum way but want to distribute among equity funds through STP to avoid market high.

I need your advice on –
is it safe to invest whole amount in one debt fund or should I divide it in more debt funds like hdfc and CRMF?
So that I’ll be able to shift money in equity funds in staggered manner but much earlier than single debt fund. Please advice if this strategy is helpful.

Also please suggest if I need to add any type of MF which is currently not present in my portfolio.

Thank you
Amogh

0 Vote Up Vote Down

Sreekanth Staff answered 9 years ago

Dear Amogh, Diversification among debt funds for STP may not be required, as I am assuming that you may distribute the lump sum amount in next 12 months or so. May be one or two liquid funds can be more than enough. Kindly note that STPs can be done between/among the funds that belong to the same AMC. Your portfolio is fine.

Amogh replied 9 years ago

Thanks a lot Sreekanth for all your valuable guidance.