Portfolio suggestion for a beginner

[ljlijash]

Hi I am a 25 year old software engineer from trivandrum. I am married and have a 8 month year old daughter. I earn about 35,000 per month(net pay) and plan to invest some amount. my expenses would amount upto about 20,000 oer month(7000 - house rent, 7000 - personal loan emi and 6000 other expenses).

Please suggest me a good investment option as I really am an amateur in this filed. I am interested in MF, Gold ETFs. My primary objective would be to pay off my PL(has no pre payment penatly) ASAP. The last emi is due on 01/01/2014 which would relieve me of an extra 7000 more to invest.
Within 5 years I would like get a house of my own and that would be my second objective.

Please do help me out !!! I am desperate to start saving.

 

[ljlijash]

28 views and still no reply... Please guys

 

[DiwaliCrackers]

you can invest urs saving into diversify MF through SIP

 

[yodlee99]

Welcome onboard MF investments.
As far as getting started, I would suggest reading regularly in www.valueresearchonline.com.
I would let you know that MFs are for longterm investments (5 years+) that can minimize the ups & downs in stocks, but cannot rule it out. Keep 3-6 months of your monthly income for emergency purposes in a local bank savings account. Also, get a term policy for your life insurance so that your family is saved, in case something were to happen to you. For medical ins, i suppose you have 1 from your employer.
For MF, you can go with these 4 consistent funds: HDFC Prudence, Reliance Regular savings equity, DSPBR Equity, Birla Sunlife Frontline Equity plan A. When you can increase the monthly investments, you can add 1 midcap fund like IDFC Premier equity plan-A.
As always, use SIP to invest every month on different dates. Initially, invest for 1 year and check back with us next year for any course correction. Shoot if you have any questions.
Good luck!

Hi I am a 25 year old software engineer from trivandrum. I am married and have a 8 month year old daughter. I earn about 35,000 per month(net pay) and plan to invest some amount. my expenses would amount upto about 20,000 oer month(7000 - house rent, 7000 - personal loan emi and 6000 other expenses).

Please suggest me a good investment option as I really am an amateur in this filed. I am interested in MF, Gold ETFs. My primary objective would be to pay off my PL(has no pre payment penatly) ASAP. The last emi is due on 01/01/2014 which would relieve me of an extra 7000 more to invest.
Within 5 years I would like get a house of my own and that would be my second objective.

Please do help me out !!! I am desperate to start saving.

 

[ljlijash]

Now that was a really good piece of advice .... thanks ... What about investing in Gold ETFs? Or is it better to go in for physical gold ??

One doubt though - "As always, use SIP to invest every month on different dates" - why different dates ??

And as I told earlier, I would like to clear my PL of 2 lakhs within 1 year ... Whts the best possible way guys ?

 

[rananjay00007]

you can hedge your equity portfolio with investing in gold etfs...as far my personal view says that gold never losses its shine. you are looking for a five year timeframe then do not
be confused with the dates........sip investment are very good for longer timeframe.........

well when you recieve your salary then immediatly fill your sips...............further some amount must be kept in liquid funds like in bank .in an imergency you can use this fund,,since you have a daughter .......imergency situation like diseases can come any time

 

[yodlee99]

Now that was a really good piece of advice .... thanks ... What about investing in Gold ETFs? Or is it better to go in for physical gold ??

One doubt though - "As always, use SIP to invest every month on different dates" - why different dates ??

And as I told earlier, I would like to clear my PL of 2 lakhs within 1 year ... Whts the best possible way guys ?

You can go for some investment in gold ETFs which can be held in a demat account without any worries about storing/security etc (unlike a physical gold bar). As of now there are no SIPs for any ETFs and you have to buy yourself. Keep <10% in gold ETFs. Historically, there is a negative correlation between the values of major global currencies and major stock indices to the value of gold. In my humble opinion, gold prices have never gone up so much so fast and no one really understands it much.

SIP on different dates of the month for better cost averaging.
If I were you, I would try and clear off all the personal loans at the earliest possible thereby reducing the high interests that are charged. If this is housing loan, there are tax implications to it and I would refer you to a CA to do some math. Once you clear off all the loans, I would suggest you to continue investing in the 4 funds suggested earlier and add on 5th fund, and redistribute equally among the 5. We don't need more than 5 funds for ease of tracking.

 

[seetharamank]

You can go for some investment in gold ETFs which can be held in a demat account without any worries about storing/security etc (unlike a physical gold bar). As of now there are no SIPs for any ETFs and you have to buy yourself. Keep <10% in gold ETFs. Historically, there is a negative correlation between the values of major global currencies and major stock indices to the value of gold. In my humble opinion, gold prices have never gone up so much so fast and no one really understands it much.

SIP on different dates of the month for better cost averaging.
If I were you, I would try and clear off all the personal loans at the earliest possible thereby reducing the high interests that are charged. If this is housing loan, there are tax implications to it and I would refer you to a CA to do some math. Once you clear off all the loans, I would suggest you to continue investing in the 4 funds suggested earlier and add on 5th fund, and redistribute equally among the 5. We don't need more than 5 funds for ease of tracking.

welsaid any investment is the surplus amount that can be left as investmentfor longer period so that geomentrical effect takeplace in growth &max five funds is also excellent idea