Need suggestions regarding SIP investment (MF Schemes)

Q & A Forum › Category: Investments › Need suggestions regarding SIP investment (MF Schemes)

harish0305 asked 9 years ago

HI Sreekanth , Before i ask my question would like to extend my thanks for the effort you are putting to helping people to get financially literate. Its really a great effort from your side. I was initially confused with many articles across web and in many websites. But your blog acts a one Stop Shop for all the financial queries and personalized suggestions. The level of clarity and adeptness you provide in each and every answer is commendable and definitely to be applauded. Here is my Question.

Amount - 3 Lakhs Lumpsum already available
Time Horizon - 3 Years
Risk : Moderate to High
Me , Family and Parents are covered by insurance.
Since Market is high , i am really confused how to invest Lumpsum in MF's. Please give me your advise.

Existing SIP's running are as below ( PM : Per Month) Birla SL - MNC Fund Reg (G) - 2000 PM HDFC - Equity Fund (G) - 2000 PM ICICI Pru - Value Discovery Reg (G ) - 2000 PM BIRLA MIP II WEALTH 25 PLAN GROWTH-2000 PM HDFC BALANCED FUND - REGULAR PLAN - GROWTH-2000 PM ICICI PRUDENTIAL BALANCED FUND - GROWTH-2000 PM TATA BALANCED FUND - REGULAR PLAN - GROWTH-2000 PM SBI BLUE CHIP FUND - REGULAR PLAN - GROWTH-2000 PM Franklin India Smaller Companies Fund GROWTH-2000 PM Mirae Asset Cash Management-Reg(G)-50 K Lumpsum STP to below fund Mirae Asset India Opportunities Fund-Reg(G)-2000 PM Mirae Asset Emerging Bluechip-Reg(G)-2000 PM HDFC Medium Term Opportunities Fund(G)-50 K Lumpsum BIRLA MIP II WEALTH 25 PLAN GROWTH-2000 PM Other than this i have few FD's in Govt Banks ,which actually form large part of my portfolio. So from further on i am increasing my EQUITY portfolio. Thanks a Lot, Harish

3 Answers

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Sreekanth Staff answered 9 years ago

Dear Harish, Thank you for your appreciation and motivating words! May I know any specific reason for investing large part of your portfolio in FDs? Are you planning for any major investment? Most the listed Equity/Hybrid funds are good ones. But investing in too many funds that too from same fund category may not be really beneficial. Kindly read : https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ May I know your investment objective for this Rs 3 Lakh lump sum investment?

harish0305 replied 9 years ago

Thanks for the Reply , Honestly speaking those FD’s were put in last 10 years during the starting of my career , when i am not married not much worried about finance and infact no idea about mutual funds and didnt really educate my self of thier benefits. I left my finance to my father who follows more traditional and conservative approach in investments. Accidentally i took some SIP’s 3 years before and after few i realized that these are really good provided invested in right funds. then on I started researching in web and came across your blog which i found very educative.
The point also here is i am somehow resistant to move some part of FD’s to MF side . Can you give me some approach to move some funds to MF side ? probably some 50 % of FD’s.
Secondly , Regarding the 3 L investment there is no specific goal as such but will go for wealth generation .

Thanks
Harish

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Sreekanth Staff answered 9 years ago

Dear Harish, If so, you may part the lump sum amount (Rs 3 lakh) in your existing balanced fund and MIP fund. FDs to MFs : You may consider setting up Systematic Transfer Plan from Liquid fund to equity funds for next 12 months or so. You may invest lump sum amount in Liquid funds and then set up STPs every month/periodically to equity funds. For ex : HDFC Liquid fund to HDFC Balanced fund.

harish0305 replied 9 years ago

Thanks a lot Sreekanth on your Advice. !!..Will do the same…Just read your blog on Personal Finance and principles . Its very Honest and Clear. Keep Rocking !!..

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Sreekanth Staff answered 9 years ago

Thank you dear Harish! Happy Ganesh Chathurti !

harish0305 replied 9 years ago

Thanks Sreekanth Garu !!..and Vinayaka chavithi subhakankshalu to you and your Famliy…