10L per month to invest in Mutual Funds. Recommended Strategy?

#1
New to Traderji community.

I have built a decent amount of wealth with my business (in a different sector other than finance).

My current holdings:
Fixed Deposits: 75L
Mutual Funds: 10L

Liabilities:
Property loan of 2Cr (9% rate of interest)

However, I am looking to grow my money at a much higher rate than what the rate bank FDs are offering currently (6-7%). Currently equity markets are down which presents an ideal situation to invest in Mutual funds. Also, I currently do not have the time to manage a stocks portfolio because of my full time business. I would like to invest on a monthly basis and forget about it for the next 5 to 10 years (hoping to get returns of CAGR more than 13%)

So, Currently I have ~ 10L rupees to invest per month (depending on business performance but can consider 10L as average per month).

How do I invest these funds to be spread across different instruments? (Medium Risk profile)

Some strategies I can think of:
  • Instead of investing a lump sum at one time per month, setting up a daily SIP of 30,000 across equity and debt mutual funds. (75% Debt, 25% Equity) thereby averaging any ups and downs in the market.
  • Putting a part of current investment amount into making part loan payments
  • Greater allocation to equity and lesser to debt
  • Liquid mutual funds instead of FDs
Would be great to hear some other strategies from experienced posters in this forum.
 

UberMachine

Well-Known Member
#2
It is much better to invest in index funds since you won't be watching your portfolio closely. It is one of the best available approaches for hands-free approach. And your amount of 10L per month is quite big (assuming you would be doing it every month for the next few years) and an index fund could easily create a lot of wealth.

A much better approach would be to consult a professional investment adviser and assess your risk profile and future contingencies since the amount invested is large.

Never
  1. Invest in a single (or 2 or 3 stocks). Diversify.
  2. Invest in stocks based on tips or other recommendations
  3. Invest in options or futures
  4. Invest for short term gains (liquid cash)
The never points are made in the assumption that you are new to stock markets.
 

siddhant4u

Well-Unknown Member
#3
Invest in Nifty and Bank Nifty ETF's They track movement of NIFTY 50 and BANK NIFTY respectively. Judging by what you do, you won't be able to track the market ups and downs every time. You can look at end of day index values and if market has gone down for 3-4 days or week, invest in lumpsum on top of your regular investment.

You could divide some risk into Debt fund and even other Blue Chip funds.

None of the options are risk free though.
 

afin

Rocky Mountain Doomsday Guy
#4
Invest in Nifty and Bank Nifty ETF's They track movement of NIFTY 50 and BANK NIFTY respectively. Judging by what you do, you won't be able to track the market ups and downs every time. You can look at end of day index values and if market has gone down for 3-4 days or week, invest in lumpsum on top of your regular investment.

You could divide some risk into Debt fund and even other Blue Chip funds.

None of the options are risk free though.
I am not sure of ETF investments bhai.
 

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