Lumpsum Investment for 6 Lakhs in MFs

[nautynut]

Sure, you can go ahead with these 3 funds. I suppose you have FDs in nationalised banks or post office deposits which are safe & stable. If not, then keep 1-2 lakhs from your 6 lakh corpus in them.
In fund names like DSPBR Top 100 equity Inst or Rel Eq Opp Inst, "Inst" means "Institutions" with large funds (in crores), investors like us can only invest in funds with names ending in "Reg" or "Retail".

I suppose you will be doing STP into these 3 funds so that you don't have to time the market. You should invest in the debt funds and do weekly STP (instead of monthly for better rupee cost averaging). The amount that you would transfer depends on your investment period. Suppose you are planning not to redeem within 5-10 yrs (long term), you can transfer entire amount within 1 year.
2 lakhs / 52 weeks = 3846 Rs approx.

1) Invest Rs.2 lakhs in DSPBR Savings Manager Fund Aggressive & STP to DSPBR Top 100 Equity Reg Fund (Growth).

2) Invest Rs.2 lakhs in HDFC High Interest Fund Short Term Plan & STP to HDFC Top 200 Fund (Growth). Start with 1 month delay as the fund has 0.1% exit load if you STP or redeem within 30 days.

3) Invest Rs.2 lakhs in Reliance Short Term Fund & STP to Reliance Equity opportunity Fund -Retail (Growth).

Hello yodlee99,

Hope things are well at you end. I have finalized on all the 5 star rated funds and I am finally going to go ahead with the plan of investing. I would just require a few more clarifications. The plan is to go ahead with INR 2 Lakhs each in:

1. HDFC Top 200
2. HDFC Equity
3. DSPBR Equity

As you mentioned above, I should go ahead with the STP option instead of one time investment in order for better rupee cost averaging. Please suggest how to approach to start the STP and will it have any entry/exit load in each of above funds? Is it possible to have the STP for lesser than 52 weeks?

Thanks much for your help in advance. I appreciate it.

P.S: I hope my portfolio is looking fine considering the time horizon of 5-7 years.

Regards,
Nautynut

 

[yodlee99]

Your portfolio is fine, except at the end you will have 4 out of 6 lacs with HDFC. Instead try Reliance Regular savings fund (balanced) which is a multi-cap fund with large cap tilt and some in debt. That way, you have spread out between fund houses, across caps and also have a little higher % of your portfolio in debt. In bull market, its better to have higher debt contribution which you can change to Reliance Regular savings fund (Equity) when market consolidates. You can either start your STP now, or wait for a consolidation... i will leave that to your gut feeling.
As mentioned in my earlier message, invest in liquid/short term fund and do weekly STP on various days of the week. Invest for 1 year initially, and check with us to see if you need any changes in your portfolio. Good luck!

 

[nautynut]

Your portfolio is fine, except at the end you will have 4 out of 6 lacs with HDFC. Instead try Reliance Regular savings fund (balanced) which is a multi-cap fund with large cap tilt and some in debt. That way, you have spread out between fund houses, across caps and also have a little higher % of your portfolio in debt. In bull market, its better to have higher debt contribution which you can change to Reliance Regular savings fund (Equity) when market consolidates. You can either start your STP now, or wait for a consolidation... i will leave that to your gut feeling.
As mentioned in my earlier message, invest in liquid/short term fund and do weekly STP on various days of the week. Invest for 1 year initially, and check with us to see if you need any changes in your portfolio. Good luck!

Thanks yoddlee99. I see that it is not advisable to go with same AMC in my portfolio. Would it be ok to go with Reliance Regular Savings Fund (Equity) to start with now?

Also, I would do the STP as following for next 52 weeks:

1. HDFC High Interest Fund Short Term Plan - STP - HDFC Top 200.
2. DSPBR Savings Manager Fund (Aggresive) - STP - DSPBR Equity.
3. Please Suggest the Debt MF on it - STP - Reliance Regular Savings Fund (Equity)

Thanks!

Regards,

Nautynut!

 

[yodlee99]

This looks better now. U can use Reliance Short Term Fund for parking your money. Watch out for the timing. As of now, almost all of the stocks look pricey and the NAVs are high. When the markets consolidate in a few days/weeks/months time, one is guaranteed to see a dip.. maybe not much. When a new investor sees a negative return, it sometimes affect their psyche. How do I know? Been there, and gone through that If you are ok with it, go ahead and start STP.
Or else, just park your money in the 3 liquid funds. Sell your equity now, enjoy hanging out and don't visit any online forum until the markets consolidate.
Just my thoughts....

 

[nautynut]

This looks better now. U can use Reliance Short Term Fund for parking your money. Watch out for the timing. As of now, almost all of the stocks look pricey and the NAVs are high. When the markets consolidate in a few days/weeks/months time, one is guaranteed to see a dip.. maybe not much. When a new investor sees a negative return, it sometimes affect their psyche. How do I know? Been there, and gone through that If you are ok with it, go ahead and start STP.
Or else, just park your money in the 3 liquid funds. Sell your equity now, enjoy hanging out and don't visit any online forum until the markets consolidate.
Just my thoughts....

Thanks yoddlee99. You are a champ!:clapping:

 

[surfingminds]

Dear Nauty nut and friends

I have put all my money in Reliance FMP giving almost 7.25 PA for 3 months fixed tenure.
I expect market to correct and do the STP as planned earlier


I find balanced fund like hdfc prudence or reliance regular savings balance option should be core of your folio, Also when market are high better to enter these balance funds after checking percentage allocation of their equity and debt if fund manager is smart he must have moved most of money to debt and when market corrects will move to equity

best of luck
regards

 

[yodlee99]

Thanks
This is the time to enjoy a holiday trip, hit the gym or start learning yoga. Or you may start a new hobbie that u have been thinking about! When u visit family, every one will enjoy talking about stocks and the killing they made or about to make etc. Enjoy the talk but sit tight. Just my suggestions.
I always wonder why do people not book profits now? Equity based MFs are just like stocks. Even if you don't have to time it perfectly, it makes some sense to book profits regularly.
I know what you would say, fund manager is supposed to do that. They would, but only to certain extent.
Is it not true that a SIP is supposed to take care of it? True, it does to certain extent. But i think, you can increase your earnings by just pausing your SIP during such a bull phase.

PS: I might be wrong and the market may not slide back at all. Or consolidate just a few points... i think you will always get another chance to enter when u keep your moolah intact now. The bears will always come after the bulls in some form or the another, IMHO. Let me go for my strawberry milkshake with ice toppings .. bye now

 

[nautynut]

Thanks
This is the time to enjoy a holiday trip, hit the gym or start learning yoga. Or you may start a new hobbie that u have been thinking about! When u visit family, every one will enjoy talking about stocks and the killing they made or about to make etc. Enjoy the talk but sit tight. Just my suggestions.
I always wonder why do people not book profits now? Equity based MFs are just like stocks. Even if you don't have to time it perfectly, it makes some sense to book profits regularly.
I know what you would say, fund manager is supposed to do that. They would, but only to certain extent.
Is it not true that a SIP is supposed to take care of it? True, it does to certain extent. But i think, you can increase your earnings by just pausing your SIP during such a bull phase.

PS: I might be wrong and the market may not slide back at all. Or consolidate just a few points... i think you will always get another chance to enter when u keep your moolah intact now. The bears will always come after the bulls in some form or the another, IMHO. Let me go for my strawberry milkshake with ice toppings .. bye now

I see a lot of stuff between the lines you said in your post Anyways, do let me know what will be the exit load if I do STP as planned above? Is there a criteria of 1 year or less than a year which would decide the STP exit load?

I hope your dessert was cool!

 

[nautynut]

Thanks
This is the time to enjoy a holiday trip, hit the gym or start learning yoga. Or you may start a new hobbie that u have been thinking about! When u visit family, every one will enjoy talking about stocks and the killing they made or about to make etc. Enjoy the talk but sit tight. Just my suggestions.
I always wonder why do people not book profits now? Equity based MFs are just like stocks. Even if you don't have to time it perfectly, it makes some sense to book profits regularly.
I know what you would say, fund manager is supposed to do that. They would, but only to certain extent.
Is it not true that a SIP is supposed to take care of it? True, it does to certain extent. But i think, you can increase your earnings by just pausing your SIP during such a bull phase.

PS: I might be wrong and the market may not slide back at all. Or consolidate just a few points... i think you will always get another chance to enter when u keep your moolah intact now. The bears will always come after the bulls in some form or the another, IMHO. Let me go for my strawberry milkshake with ice toppings .. bye now

Hello yodlee99 and the respected members,

Happy new year!

I hope you are doing well. I held back my investment plans last year but now I am ready to invest through STP in 52 weeks for the next 7-8 yrs or more. Please suggest if the following portfolio would be ok to go ahead:

1. HDFC Top 200 - 3 Lacs
2. DSPBR Equity - 2 Lacs
3. Reliance Regular Savings Equity - 2 Lacs

I am not sure regarding the investment in DSPBR Equity now as it shows low ranking this time. Instead, would it be ok go ahead with DSPBR Top 100? Please suggest.

Thanks for your time!

Regards,

Nautynut!

 

[chiliaGalpach]

Hello all

Hi, I am newbie.This is my frist post ...lol.
say hi to all.