Sitting on huge cash pile; Invstment ideas pls

[savkar]

Sitting on huge cash pile; Investment ideas pls

Friends,
Few months back i liquidated all my SIP/MF/Gold/Stock assets to invest in property market. But due to extreme high rise i have dropped the idea.

So for the last 2 months i am sitting on a huge cash pile (approx 9 Lakhs) which i want to invest. i waited for the market to take a dip, but that aint happening for sometime now.

Can you suggest some good investment for the same and can you comment on my plan (apart from above 9L, i have always parked 2L in cash for emergencies)

~15% in gold bees
~15% in PSU ETF
~15% in large cap MF
~15% in mid cap MF
~30% in large cap stocks (But market i feel is overheated so not sure)

5K a month in nifty ETF SIP
5K a month in large cap SIP
5K a month in mid cap SIP

My main objectives are long term but low lockin period, high liquidity as in the future i might venture into property market again

Thanks

 

[sumosanammain]

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[savkar]

Which part of India are yu from? where you get property for 9 lakhs? Here in pune, many properties have that amount as stam duty itself, forget mumbai, where its much more

Mumbai ! There is something called as 'loans' :rofl:

Plan was to make a 10-12L down payment and take rest as loan. Also land is available within 10L in various parts including pune (near mulshi, lonavala) etc

 

[surfingminds]

Hmm dear better invest direct in good companies and Mutual funds through SIP STP into HDFC Equity/Top 200, Reliance Growth , HDFC prudence and park 20 % only when their is some correction use 1 year to complete deploy your money but do it in correction phase of market which is due as every one suggest.

I hate investment in properties not due to safety or returns but personal believe, Land is abudent still population grows and black money enters into it which is again controlled by agents, And i don't feel happy to have my name on 7/12 of a perticular land u should only buy if you wanna stay that too you should evaluate the price if its worth or else live on rent. buying for investment is not my cup of tea.

I remember i leased one property 2000 per month in a city a brand new the owner was paying 4000 per month install ment and i was enjoying its by just paying 2000 rental to him. U just calculate as the owner was in impression that future the value will increase no doubt it may increase.. Keep mumbai and pune out of this.. keep core areas where rates are very high out of this and you will realize that theirs a lot of land and property what returns it has given in last 10 years i am sure it will not give in future 10 years so forget that way of analysis buy if its worth you have to think more gone are the days when this commodity or asset was undervalued its on bubble it will not burst but atleast their is less scope to inflate further.

 

[seetharamank]

dearfriend u can invest in debt funds that too shorttermfunds which is more profitable than bank fd`s &takeback the capital in a very short term since intrest rates are on the raise

 

[sumosanammain]

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[drsambu123]

Re: Sitting on huge cash pile; Investment ideas pls

Friends,
Few months back i liquidated all my SIP/MF/Gold/Stock assets to invest in property market. But due to extreme high rise i have dropped the idea.

So for the last 2 months i am sitting on a huge cash pile (approx 9 Lakhs) which i want to invest. i waited for the market to take a dip, but that aint happening for sometime now.

Can you suggest some good investment for the same and can you comment on my plan (apart from above 9L, i have always parked 2L in cash for emergencies)

~15% in gold bees
~15% in PSU ETF
~15% in large cap MF
~15% in mid cap MF
~30% in large cap stocks (But market i feel is overheated so not sure)

5K a month in nifty ETF SIP
5K a month in large cap SIP
5K a month in mid cap SIP

My main objectives are long term but low lockin period, high liquidity as in the future i might venture into property market again

Thanks

Hi You have to decide clearly which way u want to go. U r in dilemma. ur main aim is to buy land. but ur feeling is that prices r high. Also u r thinking that equity has gone up. Remember onething corrections in realty or equity may not happen. though many people say correction in equity market will occur or due.. I dont agree with them. may be minor corrections like 5% may occur.. If you wait for that and if it doesnt happen u will miss the bus clearly.
So decide first reality or equity
if u decide Equity and MFs go for Debt + STP to MFs... transfer ur money over 10-15 months to 3 or 4 5 star rated equity diversified funds and stay for atleast 3-5 years
happy invessting

Time we stay in the market is more important than timing the market

 

[rajivnc]

Mumbai ! There is something called as 'loans' :rofl:

Plan was to make a 10-12L down payment and take rest as loan. Also land is available within 10L in various parts including pune (near mulshi, lonavala) etc

Do you really want to become a slave of Banks ? If yes, go for loans.

Keep in mind, real estate properties belongs to the asset class which is most difficult to liquidate. You may find it very difficult to sell that property when you have and emergency situation.

Can you please calculate how much the land property in the area you are planning to buy appreciate in the last 10 years ? Lets try comparing that w.r.t equity returns.

 

[yodlee99]

It looks like stock market, gold prices and pretty much everything is due for a correction now. It had been in the top of my mind for the last few months now. The question always is how much and when ?
Ideally, I would suggest you to put the cash in a few good debt funds and transfer them to the equity diversified fund within the same mutual fund house by STP. You can invest now and start the STP immediately or wait for the market to go down and then start STP.
But, as other fellow members have identified, the larger issue seems to be whether you want to buy a property or not. If you have answered that question to your satisfaction, go ahead with your investment ideas.

 

[palka]

There is something called as 'loans' :rofl:

As far as my understanding goes, one should not leverage oneself for investment purposes. A basic rule of safety. when we leverage and invest we are being greedy. And greed seldom goes unpunished. My 2 p.