Single fund or split investment - Your advice please

[log1102]

Hi,

Am a noob here as you can see from my post count. Excellent forum, learnt a lot looking through.

I would like to start investing through SIPs. Initially, I have decided to invest Rs. 5000 pm. Would you advise a single fund or split the money between funds? Any advice on which funds would be welcome as I am new to this. My investment horizon is 5 years plus.

Thanks in advance.

 

[asterix24]

Dear friend,

I would suggest 2 options for you:

1) Invest in a pure large-cap / large & mid-cap fund with Rs. 5000 invested as 5 different SIPs of Rs. 1000 each on different dates of the month.

Recommended funds:
HDFC Top 200, DSPBR Top 100, IDFC Imperial Equity (in order of preference)

2) Invest 2 funds across different multi-caps with equal allocation of Rs. 2500 on different dates of the month.

Recommended funds:
HDFC Top 200 & DSPBR Microcap / IDFC Premier Equity (OR)
DSPBR Top 100 & ICICI Prudential Discovery (OR)
HDFC Top 200 & ICICI Prudential Discovery

Happy Investing !!

 

[jatin_gala]

never ever put your whole money in single fund (unless you are extremely lucky).

I would agree with asterix24, you should go with 5 funds (5 different AMC's would be better).

 

[xxdiesel]

Please note that asterix did not recommend 5 funds. He suggested 5 different SIPs to leverage rupee cost averaging. The number of funds recommended is 2-3.

 

[jatin_gala]

hmmmm


as per me you should go with 5 different funds with different portfolio styles
like
one large cap/diversified
one balanced
one midcap
two sectoral

 

[asterix24]

aren't you over-diversifying for a small amount of Rs. 5000? The amount of growth of only Rs. 1000 in one fund and returns as compared to management of 5 different funds is not worth it.

I feel at max. 2 funds should be more than sufficient for Rs. 5000 investment and as when the person desires to increase their holdings, they can go for newer funds.

Happy Investing !!

 

[log1102]

Dear friend,

I would suggest 2 options for you:

1) Invest in a pure large-cap / large & mid-cap fund with Rs. 5000 invested as 5 different SIPs of Rs. 1000 each on different dates of the month.

Recommended funds:
HDFC Top 200, DSPBR Top 100, IDFC Imperial Equity (in order of preference)

2) Invest 2 funds across different multi-caps with equal allocation of Rs. 2500 on different dates of the month.

Recommended funds:
HDFC Top 200 & DSPBR Microcap / IDFC Premier Equity (OR)
DSPBR Top 100 & ICICI Prudential Discovery (OR)
HDFC Top 200 & ICICI Prudential Discovery

Happy Investing !!

never ever put your whole money in single fund (unless you are extremely lucky).

I would agree with asterix24, you should go with 5 funds (5 different AMC's would be better).

Please note that asterix did not recommend 5 funds. He suggested 5 different SIPs to leverage rupee cost averaging. The number of funds recommended is 2-3.

aren't you over-diversifying for a small amount of Rs. 5000? The amount of growth of only Rs. 1000 in one fund and returns as compared to management of 5 different funds is not worth it.

I feel at max. 2 funds should be more than sufficient for Rs. 5000 investment and as when the person desires to increase their holdings, they can go for newer funds.

Happy Investing !!

Thank you guys for your prompt replies.

From what research I have done, I am biased towards HDFC 200, so I think Asterix's advice is sound WRT HDFC and IDFC/ICICI. I think I will go with 2 funds, HDFC and ICICI. Thanks again.