Help for starting MF investment

#1
Dear Experts,
I want to start saving money using Mutual Funds. I want to create corpus 1.2 to 1.5Lac in next 1 to 1.5(max) year.

Would like to seek advice from expert on how to invest properly, which Mutual Fund should i choose? How much should i invest per month to achieve my goals. Please Advice me.

I can invest upto 5000/month.
If it is not possible to create that much corpus, please tell alternatives also.
 

suri112000

Well-Known Member
#2
Bank FD can fetch you 6% per annum. Further, it has a fixed time limit to get you return. There is almost 100% guarantee of your capital and interest.

Mutual funds have no guarantee of your desired return or capital. Further, if you put a time limit ie one year, it has no edge of making that much return. If you donot have a timelimit, there is a possibility of making better returns than bank FDs here. I stress the word Possibility. Often seasoned trader coin the term as probability.

Bank FDs provide assured return with capital protection in a fixed time.
Mutual funds donot provide assured return. In mutual funds your capital is not protected especially in a fixed time frame.

If you have a time horizon of 10 years from now, you can invest in Mutual Funds otherwise go for bank FDs.
 

MSN1979

Well-Known Member
#3
Bank FD can fetch you 6% per annum. Further, it has a fixed time limit to get you return. There is almost 100% guarantee of your capital and interest.

Mutual funds have no guarantee of your desired return or capital. Further, if you put a time limit ie one year, it has no edge of making that much return. If you donot have a timelimit, there is a possibility of making better returns than bank FDs here. I stress the word Possibility. Often seasoned trader coin the term as probability.

Bank FDs provide assured return with capital protection in a fixed time.
Mutual funds donot provide assured return. In mutual funds your capital is not protected especially in a fixed time frame.

If you have a time horizon of 10 years from now, you can invest in Mutual Funds otherwise go for bank FDs.

nicely explained suri ji.

If you are still interested in MF, compare funds. Big companies have a MF booklet which will have hundreads of funds with yoy performance report, get hold of that booklet by simply walking into any of bajaj /motilal/sharekhan etc etc fund manager houses. compare returns of each fund. The funds who usually have performed well in past with regular performance are likely to do better. When market corrects NAV also adjust next day accordingly. You can maximize MF returns if you tweak your investments to market crash or even a small correction.
 
#4
If you are still interested in MF, compare funds. Big companies have a MF booklet which will have hundreds of funds with yoy performance report,
That's the problem with MFs. There are literally thousands of funds, you will find more funds than the scrips listed on BSE. Too many to choose from. And even when you decide on something, they will come up with the standard disclaimer "Past performance is not a guarantee of future performance".

I wish the regulators exercised more control over the number of mutual funds.
 
#5
Bank FD can fetch you 6% per annum. Further, it has a fixed time limit to get you return. There is almost 100% guarantee of your capital and interest.

Mutual funds have no guarantee of your desired return or capital. Further, if you put a time limit ie one year, it has no edge of making that much return. If you donot have a timelimit, there is a possibility of making better returns than bank FDs here. I stress the word Possibility. Often seasoned trader coin the term as probability.

Bank FDs provide assured return with capital protection in a fixed time.
Mutual funds donot provide assured return. In mutual funds your capital is not protected especially in a fixed time frame.

If you have a time horizon of 10 years from now, you can invest in Mutual Funds otherwise go for bank FDs.
I think that the Post Office FDs are better than the bank FDs. The post office is 100% indemnified by the Government of India, so better in terms of capital protection.
 

MSN1979

Well-Known Member
#6
I think that the Post Office FDs are better than the bank FDs. The post office is 100% indemnified by the Government of India, so better in terms of capital protection.
post office fd and NSC fetch u 8.50 return, yes that's better but MF is way better. Let me show u the trick how to get better returns in MF (nothing new)

1. Calculate amount you want to invest in MF
2. Select MF based on past performance and sectors they invest in
3. Start allocating 10% capital each time market correct or crash, this method gives u a chance to invest during 10 dips. your nav will be better when the market bounces back. So with a total investment of 2.5 L I would invest 25000 every time market corrects.

this way the return is 3-4% better then investing blindly.
 
#7
Dear Experts,
I want to start saving money using Mutual Funds. I want to create corpus 1.2 to 1.5Lac in next 1 to 1.5(max) year.
Would like to seek advice from expert on how to invest properly, which Mutual Fund should i choose? How much should i invest per month to achieve my goals. Please Advice me.
I can invest upto 5000/month.
If it is not possible to create that much corpus, please tell alternatives also.
It's narrow possible. But little modification needed to make it possible to make it very much possible.

If you invest Rs. 5,000 per month, then in next 1.5 years, your total investment is Rs. 90,000. Now, if the fund gives around 18% (assumed as average), then your corpus will be at Rs. 1,02,863.
Now if you could add 1,000 per month to the monthly SIP (Rs. 6,000/- SIP), then there is high chance to meet your goal (Rs. 1,23,000 at assumed 18%)

The reason I used 18% as assumption is because some funds gives 15%, and others give 30%, so I assumed to the least average as possible)
Now what about fund?

Here are my recommendations:
HDFC Small Cap Fund (Diversified Fund) - CAGR 35% since last year
Reliance Small Cap Fund (Small Cap Fund) - CAGR 25% since last year [Riskier than HDFC Small Cap]
SBI Bluechip Fund (Large Cap) - CAGR 15% since last year [Less risk than HDFC Small Cap]


There is alternative way than Rs. 6000 SIP, you can invest lumpsum amount of Rs. 1,00,000 (prefer Rs. 1,08,000), and there is high chance to meet the goal (lumpsum is little riskier than SIP).

I hope you get the idea. Happy Investing!
 
#8
Dear Experts,
I want to start saving money using Mutual Funds. I want to create corpus 1.2 to 1.5Lac in next 1 to 1.5(max) year.

Would like to seek advice from expert on how to invest properly, which Mutual Fund should i choose? How much should i invest per month to achieve my goals. Please Advice me.

I can invest upto 5000/month.
If it is not possible to create that much corpus, please tell alternatives also.
It is a feasible idea to invest around 5000/month in mutual funds. First of all, you need to decide a few things like your risk capacity which means how much risk are you willing to take. Go for equity if your can bear high risk, Debt funds for low risk and hybrid(balanced) funds for moderate risk. Then decide whether you want to take the help of a service distributor or directly through AMCs. See the past performance of the mutual fund which you select. Investing through SIP is a good option. And if you want the alternative then Fds are a good option too as they will give fixed return.
 

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