Systematic Investment Plan

[yodlee99]

Hi,
I am a beginner at investing via SIPs in MF and I am 34 years old. I have just started these SIPs and donot have immediate need for money and so I can stay invested long term (10yrs+).
1) Please comment about my choice of funds - 80% in equity (60% in large cap + 20% midcap) and the rest 20% in debt MF.
HDFC Top 200 G - Rs. 5000 pm
Birla SF Frontline equity G - Rs. 5000 pm
DSPBR Top 100 G - Rs. 5000 pm
ICICI Prudential Discovery G - Rs. 5000 pm
Canara Robeco Income G - Rs. 5000 pm

2) However, I have planned it in such a way that SIPs get deducted on the same date every month and I think I should have them separated throughout the month. Is there a way I can do that without incurring any costs in icicidirect.

Thanks!

 

[nikrod]

Hi,
I am a beginner at investing via SIPs in MF and I am 34 years old. I have just started these SIPs and donot have immediate need for money and so I can stay invested long term (10yrs+).
1) Please comment about my choice of funds - 80% in equity (60% in large cap + 20% midcap) and the rest 20% in debt MF.
HDFC Top 200 G - Rs. 5000 pm
Birla SF Frontline equity G - Rs. 5000 pm
DSPBR Top 100 G - Rs. 5000 pm
ICICI Prudential Discovery G - Rs. 5000 pm
Canara Robeco Income G - Rs. 5000 pm

2) However, I have planned it in such a way that SIPs get deducted on the same date every month and I think I should have them separated throughout the month. Is there a way I can do that without incurring any costs in icicidirect.

Thanks!

A Very good choice of funds. Your portfolio is really a good and balanced one. As per changing SIP dates, I don't think you can do it without breaking existing SIP's. But please do ask ICICIDirect about it. Anyways having SIP's on same day won't make big difference in long term.

Remember to monitor performance of funds in your portfolio. If a particular fund performs poorly for consecutive 2-2.5 years, sell it and switch money to some other good fund. You can take help of Value Research & MorningStar ratings to judge whether your funds are still good.

 

[nikrod]

One more note - You can also consider portfolio rebalancing after every year or every 2 years. For example your current portfolio ratio is 80% Equity - 20% debt. Say after 2 years it becomes 85%Equity & 15% debt due to bull run, you can sell some equity part & buy debt to rebalance it to 80-20.

 

[yodlee99]

Thank you for the suggestion about changing the funds as per the resulting gains every 2 years and also altering the equity-debt ratio as time goes by.
I had contacted icicidirect regarding change of SIP dates. All that I have to do is to cancel the old SIP and enter new SIP and there is no penalty for canceling SIP. Just wanted to let everyone know about that.

A follow up query on SIP date: Is there a way I can invest on days of the month when the NAV drops first time by more than say, 2% ? Can we set such triggers as of now? Ideally, we want to do SIP on the day when the NAV is lowest that month, however we cannot know that. Instead, is it possible to trigger SIP based on % drop in NAV ?

Thanks again!

 

[rrmhatre72]

Hi,
I am a beginner at investing via SIPs in MF and I am 34 years old. I have just started these SIPs and donot have immediate need for money and so I can stay invested long term (10yrs+).
1) Please comment about my choice of funds - 80% in equity (60% in large cap + 20% midcap) and the rest 20% in debt MF.
HDFC Top 200 G - Rs. 5000 pm
Birla SF Frontline equity G - Rs. 5000 pm
DSPBR Top 100 G - Rs. 5000 pm
ICICI Prudential Discovery G - Rs. 5000 pm
Canara Robeco Income G - Rs. 5000 pm

2) However, I have planned it in such a way that SIPs get deducted on the same date every month and I think I should have them separated throughout the month. Is there a way I can do that without incurring any costs in icicidirect.

Thanks!

Try this.

1. You have five funds. So select five different dates for each fund. e.g HDFC on 1st of every month, Birla on 8th, DSP on 15th ICICI on 22nd & Canara on 28th.
2. If above is not OK then try to have five SIP for same fund. e.g. you are planning for 5k SIP in HDFC. Instead of that plan 5SIP with 1k each for HDFC.
Every SIP will have dates as 1st,5th, 10th 15th & 22nd etc...

Dates suggested here only for example. Every scheme will have different SIP dates.

 

[corpsegrinder]

Hello Everyone,


My first post in this forum and definitely not the last !

Planning to start a couple of SIPs just to get tax rebates. I am planning to go for ELSSs like HDFC Taxsaver and Sundaram BNP Paribas Taxsaver / ICICI Prudential Taxplan by investing ~5k per month.

Now, i read somewhere here that the SIPs have to end by March 31, 2011 so that the current DTC apply.
Could you please elaborate on
* Is it a good/right time to start the SIP
* What shall i check before starting the SIP i.e end date
* Is my choice of ELSS SIPs good enough or maybe you could suggest alternate ones.

Thanks in advance !!

 

[rajivnc]

Hello Everyone,


My first post in this forum and definitely not the last !

Planning to start a couple of SIPs just to get tax rebates. I am planning to go for ELSSs like HDFC Taxsaver and Sundaram BNP Paribas Taxsaver / ICICI Prudential Taxplan by investing ~5k per month.

Now, i read somewhere here that the SIPs have to end by March 31, 2011 so that the current DTC apply.
Could you please elaborate on
* Is it a good/right time to start the SIP
* What shall i check before starting the SIP i.e end date
* Is my choice of ELSS SIPs good enough or maybe you could suggest alternate ones.

Thanks in advance !!

1) First of all no need of more than one ELSS, so select ONLY one ELSS.

2) this is the right time to start ELSS SIP. When you apply for the SIP, the Last date/Month column can be March 31 2011. This is just to overcome the fear of ELSS may be avoided from tax saving investments after DTC.

3) Check the http://new.valueresearchonline.com/ for 4/5 star rated ELSS and make a decission.

 

[corpsegrinder]

@rajivncthanks for your prompt reply.

Another thing which i heard, don't know if its true but for ELSS which have 3 year lock-in period, the lock-in period extends every month. So actually, if my last SIP was deposited on Mar 31 2011 then the entire amount will remain locked in till mar 31 2014 ??

 

[San Yad]

@rajivncthanks for your prompt reply.

Another thing which i heard, don't know if its true but for ELSS which have 3 year lock-in period, the lock-in period extends every month. So actually, if my last SIP was deposited on Mar 31 2011 then the entire amount will remain locked in till mar 31 2014 ??

I dont think so.

Any of your installments +3 years is the eligibility to redemption of that much units only.

Yes, the last installment that you did SIP on Mar 31 2011 must remain locked till 31 March 2014.

Happy Invesitn

 

[rajivnc]

@rajivncthanks for your prompt reply.

Another thing which i heard, don't know if its true but for ELSS which have 3 year lock-in period, the lock-in period extends every month. So actually, if my last SIP was deposited on Mar 31 2011 then the entire amount will remain locked in till mar 31 2014 ??

Yes, Your each SIP will be locked for 3 years. So after 3 years you can withdraw your first months installment. After 3 year 1 month you can withdraw your 2nd month like that it goes. Always keep in mind ELSS are for long term investment [ie 5-10 years].