Building a portfolio through SIP

[harrywatson66]

I would have thought so along with other believers in nudge. However, this paper by John Beshears, James Choi, David Laibson and Brigitte C. Madrian says not really. They conduct a laboratory experiment amongst Harvard University Staff and do not find evidence that people make better financial choices:
We use an experiment to estimate the effect of the SECs Summary Prospectus, which simplifies mutual fund disclosure. Our subjects chose an equity portfolio and a bond portfolio. Subjects received either statutory prospectuses or Summary Prospectuses. We find no evidence that the Summary Prospectus affects portfolio choices. Our experiment sheds new light on the scope of investor confusion about sales loads. Even with a one-month investment horizon, subjects do not avoid loads. Subjects are either confused about loads, overlook them, or believe their chosen portfolio has an annualized log return that is 24 percentage points higher than the load-minimizing portfolio.

 

[URPradhan]

Hi

I have just started my SIPs like below and also want to invest a lump sum of 4L.
Could you plz suggest me more few funds for additional SIPs and also for lump sum investment ?

1. HDFC Top 200 - G: 4000/month
2. IDFC Premier Equity Fund - Plan A - G: 2000/month
3. <please suggest for 2000/month>
4. <please suggest for 2000/month>

Thank you.

 

[nikrod]

Hi

I have just started my SIPs like below and also want to invest a lump sum of 4L.
Could you plz suggest me more few funds for additional SIPs and also for lump sum investment ?

1. HDFC Top 200 - G: 4000/month
2. IDFC Premier Equity Fund - Plan A - G: 2000/month
3. <please suggest for 2000/month>
4. <please suggest for 2000/month>

Thank you.

You can consider Reliance Regular Savings Equity, DSPBR Equity, Birla Sun Life Frontline Equity, Franklin India Bluechip and Reliance Growth for two kore SIPs. Since you already have 1 SIP in large cap & 1 in mid cap fund, choose your funds in way to balance out large & mid caps.

As for the lump sum investment, do you want to invest it in equity funds, hybrid or debt funds?

For Equity funds, go via STP route. You can invest lump sum in debt funds.

 

[URPradhan]

As for the lump sum investment, do you want to invest it in equity funds, hybrid or debt funds?

For Equity funds, go via STP route. You can invest lump sum in debt funds.

Which will be good for me assuming low risk appetite. Wife is insisting for bank FDs but as now bank FDs have low interest rate and there will be again tax on interest, I want to opt for other methods, but SECURED ones

 

[nikrod]

Which will be good for me assuming low risk appetite. Wife is insisting for bank FDs but as now bank FDs have low interest rate and there will be again tax on interest, I want to opt for other methods, but SECURED ones

You can consider debt funds. They usually give returns on par with FD's, but are better on tax front. If you fall in 30% or 20% tax bracket, go for debt funds. Otherwise go for Bank FD's, PPF or NSC's.

You can also consider company FD's or NCD's which give better returns than Bank FD's but contain more risk.

You can also park your money in debt funds for a year or so and invest in bank FD's when intrest rates eventually rise.

 

[URPradhan]

You can consider debt funds. They usually give returns on par with FD's, but are better on tax front. If you fall in 30% or 20% tax bracket, go for debt funds. Otherwise go for Bank FD's, PPF or NSC's.

You can also consider company FD's or NCD's which give better returns than Bank FD's but contain more risk.

You can also park your money in debt funds for a year or so and invest in bank FD's when intrest rates eventually rise.

Thank you for your tips/suggestions.
Can you please suggest me few good Debt funds ?

 

[nikrod]

Thank you for your tips/suggestions.
Can you please suggest me few good Debt funds ?

Some good medium term debt funds are

Canara Robeco Income
Birla Sun Life Dynamic Bond
Fortis Flexi Debt
ICICI Pru Long Term Regular
Sahara Income