What should I do with Rs. 5 lakh?

[mfnovice]

SIP is best - invest small amount regularly. But what if I have a lumpsump money of Rs. 5 lakh that I have that I want to invest rather keeping it idle.

Please advise!

 

[findvikas]

Start making a portfolio and add blue chips on every decline

Power
IT
Banking

..are my preferred sectors for next 2-3 years and it can give you atleast 50-75% returns.

This is the folio that I created 1 month back and is already up 16%

the advantage of this folio is that it gives you almost 75% money you invested as margin amount which you can use for daily trades (not positional but intraday) and generate more money.

The disadvantage of this folio is that all are big boys and they move the SENSEX up/down... if sensex goes down your folio will directly reflect that but same will goes to upside move... I would say... buy this folio on every decline and hold till sensex touch 17-19k and book some profit... you will be able to get 50% easily.

Experts here can correct me if anything is wrong

 

[mfnovice]

Thanks.

Should I invest a half of money in stocks. And then other half in a liquid/debt fund and STP from that fund to equity diversified fund?

 

[mrindia]

Thanks.

Should I invest a half of money in stocks. And then other half in a liquid/debt fund and STP from that fund to equity diversified fund?

Hello!
It all depends on ur risk appetite. Stocks r definitely risky & one should invest only if one has proper knowledge about them. O'wise opt 4 STP.
mr india

 

[ajinkys]

my mom has 3lakhs at disposal and we have to pay home loan installment of 21k per month and some 3.70 lakh is remaining , any smart way or best possible use of that without involving any risky investment !? anything that might give monthly or yearly or half yearly returns will do .

 

[asterix24]

my mom has 3lakhs at disposal and we have to pay home loan installment of 21k per month and some 3.70 lakh is remaining , any smart way or best possible use of that without involving any risky investment !? anything that might give monthly or yearly or half yearly returns will do .

Could you give more details about your mom? Is she working and Is she dependent only on this income? Does she have any other source of income?

Without risk, I can advise MIPs but you can also consider FDs which are returning some excellent returns. If you wish completely safe returns, consider Post Office MIP scheme.

Happy Investing !!

 

[vijayakishorebabu]

May i know why MIP is advised first? what are the advantages of MIP when compare to FD?

 

[comm4300]

prepay your Home loan. With home loan interest rates rising, it becomes prudent to pay off your debt first then invest later.

 

[asterix24]

May i know why MIP is advised first? what are the advantages of MIP when compare to FD?

MIP invest a portion of the portfolio into equities. I have seen allocations as high as 20-25% and this can give some attractive returns. However, FDs have a fixed return, which by the way is pretty decent. You can definitely consider FD in the current scenario, but if your horizon is long-term consider MIP.

Another reason is for potential monthly returns for the lady (mother) which for a long term is more advantageous with MIP.

Happy Investing !!

 

[asterix24]

prepay your Home loan. With home loan interest rates rising, it becomes prudent to pay off your debt first then invest later.

An excellent and prudent financial advise. I completely agree with this philosophy with a twist. Do ensure that your contingencies are taken care off. Any excess is always disastrous. Prepaying home loan while jeopardizing short and mid term goals is not prudent as well as investing heavily with outstanding home loans. The key is to strike a good balance!!!

Happy Investing !!