Systematic Investment Plan

[ARMHM]

Originally Posted by sehribabu

I have been investing in mutual funds since almost a year or so but in lumpsum amounts instead of SIP's.. I have many funds including some good tax saver funds like hdfc tax saver and sbi tax advantage

SIP's are a total new concept to me.. Are there any SIP's which allow flexible amounts.. Lets say 4000 in one month, 5000 in the second month and so on?
I have a medium risk appetite and plan to invest 30-40K in the coming six months..

Dont go for SIP. Instead if you realy like to invest like SIP then you can do it on your own. That way you are not forced to invest a certain fixed amount every month. You can invest as much as you like or as little as say 500/- or 1000/- Rupees every month in any star rated fund. I call this my flexible SIP. Even bad fund will give you a decent return over a long term if you invest regularly.
Good Luck.

[Vicky78]

BAd funds will give you bad returns SIp or other wise.

SIP is a tested and proven methodology of investing.

[justsayraj]

Originally Posted by ARMHM

Dont go for SIP. Instead if you realy like to invest like SIP then you can do it on your own. That way you are not forced to invest a certain fixed amount every month. You can invest as much as you like or as little as say 500/- or 1000/- Rupees every month in any star rated fund. I call this my flexible SIP. Even bad fund will give you a decent return over a long term if you invest regularly.
Good Luck.

At times it works for you as you may probably time the market correctly. But most of the times it proves wrong. Moreover, it is difficult to time the market.

[sehribabu]

Originally Posted by ARMHM

Dont go for SIP. Instead if you realy like to invest like SIP then you can do it on your own. That way you are not forced to invest a certain fixed amount every month. You can invest as much as you like or as little as say 500/- or 1000/- Rupees every month in any star rated fund. I call this my flexible SIP. Even bad fund will give you a decent return over a long term if you invest regularly.
Good Luck.

thanks for your suggestion.. but going for a new folio number each month will be a bit clumsy and i will need to pay more for application processing each time.. In addition each time going to the fund office is a hassle..
Is this SIP scheme saving me any money.. Need your advice

[NiceWeather]

Dear Financial Gurus,

I am planning to buy some MFs, I need your advice:
I want to buy MFs in two phases: first aggregate (bulk) level and second as SIP

My investment horizon will be two-five years.

Questions: Is it good time to buy MFs at bulk level (say 50 K)? If yes then which one to target in core level?

Should I buy MFs directly from source or via agent (Kotek,etc.)? I have an account with Kotek

Overall, I am thinking to make a portfolio of MFs using SIP e.g.

Sectorial - 10K /month
DSP (T.I.G.E.R)

Equity Diversified-10K/month
Magnum Contra
HDFC Equity
DSP ML Equity or Birla Sunlife Equity

Balance-10K/month
HDFC Prudence

Thanks,
NiceWeather

[justsayraj]

Yes, for long-term investing, you can start now.

I would stay away from sectoral/thematic funds, intead pick another large-cap fund. Kotak-30 or DSP ML top 100.

[sudoku1]

Originally Posted by NiceWeather

Dear Financial Gurus,

I am planning to buy some MFs, I need your advice:
I want to buy MFs in two phases: first aggregate (bulk) level and second as SIP

My investment horizon will be two-five years

THOUGH i m not a guru......but looking @ the primary mkt horizon....i think u should xpose only 25% of ur funds as of now

[Vicky78]

It is always a good time to invest in equity mfs via sip
& always a bad time to invest in equity in lump some.

From your picks

DSP ML Tiger
Magnum Contra
DSP ML Equity
HDFC Prudence

DSP ML tiger can be very volatile as it is an aggresive fund. If you want your portfolio to be less aggressive you can pick Kotak 30

[sehribabu]

though i am not a expert in mf investment, i know one thing clear that markets are going to see lower levels from here on.. basically diversified equity funds will be seeing more lows from here on( crude prices, high inflation, early elections are some triggers to watch for)..
You can start a SIP plan right now and fix a target for yourself and sell off wnehenver you achieve it.This approach has worked for me in the last year..

Its not good to go for a lump sum 50K investment right now.. You can diversify between equity and non-equity investments( gold, fd, nsc etc).

If you go direct, you save 2.25% of your money.. So you shouldnt consider other options.. If you invest online, its difficult to get a statement from your bank..

Best of luck and Happy investing..

[Vicky78]

1. Now or ever it is never a good time for lump some investing. Always SIP!!
2. Setting a target and selling a MF is a very bad idea. MF is not a stock. it is simply a long term saving insturment. You can end up exiting too early or too late if you plan to trade in MFs. Be prepared to stay for five years in equity mfs.