SIP Portfolio Design

[jamesisback]

Hi ,

I have just started investing in Birla MNC fund (G) @ 1000/ Month SIP for 5 years.

I want to invest 5000 per month as SIP in MFs.

Requesting all to suggest some good high return funds and help me setting my target portfolio to achieve 4-5 L after 5 years..

Risk Profile - Moderate.

Thanks in advance

 

[nifty.trader.game]

hi

try debt fund.

 

[jamit_05]

Hi ,

I have just started investing in Birla MNC fund (G) @ 1000/ Month SIP for 5 years.

I want to invest 5000 per month as SIP in MFs.

Requesting all to suggest some good high return funds and help me setting my target portfolio to achieve 4-5 L after 5 years..

Risk Profile - Moderate.

Thanks in advance

I have a suggestion. Something which is simpler, transparent, will give a lot more control in your hands and more scope for returns as the expenses are less. But it is a path less taken.

***SIP in Nifty ETFs***

Most MFs do not manage to beat the Index even on gross measures. After deducting all expenses involved, NOT ONE single MF beats the Index.

So, if one invests in the leading and most liquid index directly does he not get an edge?

It is a less trodden path hence better.

******************

PS: I could talk about investment strategies, but that is secondary.

 

[adg123]

I have a suggestion. Something which is simpler, transparent, will give a lot more control in your hands and more scope for returns as the expenses are less. But it is a path less taken.

***SIP in Nifty ETFs***

Most MFs do not manage to beat the Index even on gross measures. After deducting all expenses involved, NOT ONE single MF beats the Index.

So, if one invests in the leading and most liquid index directly does he not get an edge?

It is a less trodden path hence better.

******************

PS: I could talk about investment strategies, but that is secondary.

Do you mean NIFTYBEES-EQ ?

 

[jamit_05]

Do you mean NIFTYBEES-EQ ?

Yes, instruments like Niftybees. This one is managed by Goldman and is probably the oldest one. There are many other ETFs based on Nifty. I suggest that one should look for liquidity and then the expense ratio to decide which one to buy.

 

[adg123]

Yes I see, but I think liquidity is the prime problem in NiftyBees. Today it is in Zero open interest and volume only 6955 @Rs.637.11 (Also BID-Ask spread>Rs.1)

can you please elaborate which one is best?

 

[jamesisback]

But the ROI of NIFTY BEES ETF is not much ?

 

[jamesisback]

Good decision @jamesisback. nifty.trader.game has made a very good suggestion of debt fund. If you are satisfied with Birla's customer service and host of plans then I would suggest you with Birla Sun Life dynamic bond fund. It is a debt and money market fund which allows free withdrawal of your investments and the redeemed amount will be credited to your bank a/c within one working day. It has high liquidity and low risk.

Thanks ! But the absolute return of this fund is - 3% for the last year.. and is 1 star rated by money control ?

 

[LondonVisitor]

I have a suggestion. Something which is simpler, transparent, will give a lot more control in your hands and more scope for returns as the expenses are less. But it is a path less taken.

***SIP in Nifty ETFs***

Most MFs do not manage to beat the Index even on gross measures. After deducting all expenses involved, NOT ONE single MF beats the Index.

So, if one invests in the leading and most liquid index directly does he not get an edge?

It is a less trodden path hence better.

******************

PS: I could talk about investment strategies, but that is secondary.

I agree to this point. I have been investing in MF since 2006 in several schemes. 9-out-10 schemes have given annualised return of less than 10% and half of them at 2%-4%. Bank FD/RD would have given higher returns.

 

[jamit_05]

There is one popular value investing method designed by Joel Greenblatt.

The method says:
1. Pick the index you want to invest in and Buy and hold the 10 stocks with lowest PE.
2. You may sell the stock, if its PE increases and is not in bottom 10 anymore or the stock is out of the index.

Its strengths:

1) Its Nice and simple (most important)
2) Enormous stability.
3) You always end-up buying cheap, which is half the battle won.

I applaud this method, for one more very powerful reason:

When you buy the stock that cheap its dividend yield ratio is high. Hence, dividends itself give returns comparable with returns from MFs.