10 years 12L to invest

TracerBullet

Well-Known Member
#91
HDFC is one I am sure I will choose, icici prud is another, rest I don't know. The 12L I have, in all certainly I will do an FD for the same, and use the interest as monthly payout and add that to my 35-40K monthly investment. The 35-45K on monthly investment is what I have to diversify, so with that amount, 25K in high risk and rest 15-20K in medium and low (debt) should make sense (Hope so .. :) ). How exactly I will do it ... still have no idea. But as and when the time comes will share my details and the final portfolio.
There is risk in selecting stocks yourself and in not having enough diversification. Unless you have the expertise and a proven plan, it would be much better to invest in reasonable mutual funds. Instead focus on how to make/save more money in your own area.
Yes everyone loves HDFC, but that is not a portfolio and future is always unknown. It likely will remain a great stock but blue chips can also falter and you will not know when to take/not take action and you cant depend on anyone for that - no one but you. Emotional mistakes in ups and downs is another factor.
Better do sips in mutual funds instead and invest directly to reduce cost.
 
#92
OK .... Fair Enough. Just one Q. You would prefer Mutual Funds (ELSS) over say ULIP for a long term, 10 years in this case and why. I don't love HDFC but whichever investment site I go to, be it policy bazar or moneycontrol, I see HDFC on top 3 to 5 ... lol ..... even though I have no clue what all the jargon means on those sites .... .lol

Also can anyone tell me what the difference between "Absolute Returns, Annualised Returns, Category Avg"

Regards
Samret Singh
 

ashishchauhan

CFG | IFA | AMFI Certified MFD
#93
Hi ashishchauhan

Really appreciate your effort in this and taking time to explain things. Very balanced and sane advice you have provided. I still have 2-3 months before I make the actual investment. I have more or less understood how to diversify the funds, however which actual companies to go for is the confusion,

Below is what I have finalized as of now......

HDFC is one I am sure I will choose, icici prud is another, rest I don't know. The 12L I have, in all certainly I will do an FD for the same, and use the interest as monthly payout and add that to my 35-40K monthly investment. The 35-45K on monthly investment is what I have to diversify, so with that amount, 25K in high risk and rest 15-20K in medium and low (debt) should make sense (Hope so .. :) ). How exactly I will do it ... still have no idea. But as and when the time comes will share my details and the final portfolio.

Advice from gurus here like you has been really helpful. Hope luck favours, lets see... :)

Regards
Sammy
Hi @sam9s
since you had 2-3 months for deciding your actual investment, so actual and correct advice can be given on that time considering all market factors because your investment growth will be directly proportional to markets and studying mutual funds with respect to market at that point of time considering their future growth (not past performance) is very important.
Either it is HDFC or ICICI Pru or any other all had 15-20 mutual funds under their belt, so deciding and selecting mutual fund by doing proper research at various factors is very important, if dont't want to loose some percentage of return in long term.
A 40k sip @15% for 10y will give 1.05Cr whereas a same sip @ 13% will give 95L. So every % of return counts.
2-3 points more want to mention-
1. Switching portfolio from conservative to medium or aggressive or vice versa is also very important. MF investment depends on market, so as a investor your risk profile should depend on market. Investing at market high or after long runup being conservative with 70% capital is good but investing at lower mkt being conservative is bad. Right now the mkt is corrected. Investing in FD are not good everytime if you are getting better opportunity. 12 lakhs can be used in much better way through MF if you understand markets.
2. So this is the time to invest aggressively. Hope you had heard Buy low and sell high. And right now MF are on sale, those who take the right opportunities makes good money.We at this time are investing heavily in MF sale and aggressively accumulating units of MF with proper planning.
3. In tech advance world, now it had become very easy when to switch/buy and sell. So, it should be done at right time with proper advice.
Whenever you are ready ping me once here as it will be better to suggest at that time.

Regards,
Ashish Chauhan
CFG| IFA & AMFI Certified MFD.
 
Last edited:

TracerBullet

Well-Known Member
#94
OK .... Fair Enough. Just one Q. You would prefer Mutual Funds (ELSS) over say ULIP for a long term, 10 years in this case and why. I don't love HDFC but whichever investment site I go to, be it policy bazar or moneycontrol, I see HDFC on top 3 to 5 ... lol ..... even though I have no clue what all the jargon means on those sites .... .lol

Also can anyone tell me what the difference between "Absolute Returns, Annualised Returns, Category Avg"
ULIP has insurance built in which is not needed and they used to have high costs. I would use ELSS for tax savings (or PF if it already covers it) and rest can put in diversified Mutual funds with reasonable long term record. There is nothing wrong with buying HDFC etc, i only say that you will need to have the required skills to manage this and it can quickly go out of hand and behavioral issues can cause issue. Averaging a mutual fund is much safer and probably the right thing to do vs averaging a falling stock which may not recover.

I prefer not to switch too much as long as fund manager is same and/or returns are reasonable.
Mirae has been consistently very good and then HDFC/ICICI/IDFC/Franklin etc all have decent funds. IDFC is not doing as well recently having a midcap bias but its fund manager, Bhasker, has a very good record at sundaram and UTI.

Importantly, dont try to be oversmart and dont try to chase recent high flying Mutual funds. Buy and hold with Sip + extra buys on large falls ( but can fall even more - always ) should be enough for a long term portfolio.

You can google for all the terms, annualized returns is what the fund made on average every year compounded. Category avg is the average returns of all mutual funds in that category. Absolute should be total returns without compounding.

Edit - i may have misread that you were looking into buying individual stocks like HDFC aftetr having read earlier suggestions, was just looking to warn on possible issues ( not specifically for HDFC stock). HDFC mutual fund etc are all fine ..
 
Last edited:
#95
Hi @sam9s
A 40k sip @15% for 20y will give 1.05Cr whereas a same sip @ 13% will give 95L. So every % of return counts.
20Y or 10? Sip calculator gives me 1.1C for [email protected]% with 40k/Month. I am sure you meant 10 and not 20.
Investing in FD are not good everytime if you are getting better opportunity. 12 lakhs can be used in much better way through MF if you understand markets.
Whenever you are ready ping me once here as it will be better to suggest at that time.
Ok cool I was only opting FD to have something on a very safer side and rest per month investment I can take a complete risk on. This is because I know nothing about investments and the market and how it works. Total noob, so I might not be in a better position to know where, what, how and when of the MFs, if you know what I mean. So FD was just to have something on the safer side. That's all.
None the less when I will be about to actually invest, I definitely will ping here and update the thread so that gurus can suggest me of a best course of action at that exact time .. :)
Regards
Sammy
 

ashishchauhan

CFG | IFA | AMFI Certified MFD
#96
20Y or 10? Sip calculator gives me 1.1C for [email protected]% with 40k/Month. I am sure you meant 10 and not 20.

Ok cool I was only opting FD to have something on a very safer side and rest per month investment I can take a complete risk on. This is because I know nothing about investments and the market and how it works. Total noob, so I might not be in a better position to know where, what, how and when of the MFs, if you know what I mean. So FD was just to have something on the safer side. That's all.
None the less when I will be about to actually invest, I definitely will ping here and update the thread so that gurus can suggest me of a best course of action at that exact time .. :)
Regards
Sammy
yes it is 10Y not 20Y i corrected it...
Ping here when you are ready
 

Zerodha – Open Paperless Account

Open online account with Zerodha. Free delivery trading and Max Rs 20 for Intraday, F&O, Currency and Commodity Trading. Intraday High leverage with MIS, CO and BO.

Name:Phone:
Email:City:
State:
Are you a day trader?