MF Investment plan through SIP: Short-listed funds

[yogesh-tiwari]

Now on Liquid funds pls check on moneycontrol.com and other sites are really they only giving 6-7%?????

Hi Praveen,

Let me quote an example for you from moneycontrol.com
As per them 5 star liquid fund these days is LIC MF Liquid Fund (G)

Please check the returns below.

Absolute Returns (as on Aug 11, 09)
Period Returns (%) Rank #
1 mth 0.4 3
3 mths 1.3 7
6 mths 2.9 4
1 year 7.9 6
2 year 17.2 5
3 year 26.4 3
5 year 41.7 2
# Moneycontrol Rank within 65 Money Market Schemes

Mind you this return that you see is what your money would have gained, had you invested in this fund given years ago.i.e. Rs 10000 invested 5 years back would have become Rs 14170 thats barely 8% annual return. It is not that it gave 41.7% return 5 years ago..then 26.4% return 3 years ago...and so on.

Liquid fund are mostly invested by institution/companies to maintain their cash. Retail investor rarely invests in such funds.

If somebody still wants to buy liquid instrument..then instead of going to a MF..he may directly purchase liquidbees etc from market. Again, that too depends upon personal preference.

Hope this answers your question.

Regards
Yogesh Tiwari

 

[mfnovice]

So is this a good allocation:-

IDFC Premier Equity Plan A - Rs 8000 per month
HDFC Top 200 - Rs 5000 per month
DSPBR Equity - Rs 5000 per month
A Gold ETF - Rs 2000 per month

Or should I add another fund in the mix?

Thanks for your advise!

 

[yogesh-tiwari]

So is this a good allocation:-

IDFC Premier Equity Plan A - Rs 8000 per month
HDFC Top 200 - Rs 5000 per month
DSPBR Equity - Rs 5000 per month
A Gold ETF - Rs 2000 per month

Or should I add another fund in the mix?

Thanks for your advise!

I 'd give a GO AHEAD to this one...:thumb:

Regards
Yogesh Tiwari

 

[mfnovice]

Thank you for assisting me with clear facts in the decision making process

Couple of more questions:-

1. Now, I am thinking to take SIP for a year and then re-evaluate after that. Is this a good approach?

2. Also, if after a year I determine to change to a different fund, should I leave my units in these funds or sell them? What would you advise? I guess this would depend on the market condition at that time?

3. I am also planning to invest few lakhs right now since I have it. Would debt/liquid fund or FD or balanced fund be better choice?

 

[yogesh-tiwari]

Thank you for assisting me with clear facts in the decision making process

Couple of more questions:-

1. Now, I am thinking to take SIP for a year and then re-evaluate after that. Is this a good approach?

2. Also, if after a year I determine to change to a different fund, should I leave my units in these funds or sell them? What would you advise? I guess this would depend on the market condition at that time?

3. I am also planning to invest few lakhs right now since I have it. Would debt/liquid fund or FD or balanced fund be better choice?

1.One year would be too small a timeframe for re-evaluate a fund, until you have made enough/satisfactory gains(well, incase I make losses, I 'd continue it, so that It averages out and then after sometime, when I make some profit..I ll exit the fund at the earliest...Losses should not discourage us to exit a fund, rather it should make us cautious, to exit at right time)..consider it for around 2-3 years.

2.Incase you are making profit, let it run in profit, with a trailing stoploss..exit it completely/partially and stop your SIP. Right, Let market decide how long you want to stay in the fund.

3.At this point a balanced fund is a better options. However, at any given time...your investment allocation should always be determined by the time, when you need that money back.
Say you dont need that money for

Another 5+years..Equity based MFs should be your choice.
Another 3-5 years...Balanced fund should be your choice.
Less 3 years..Debt/FD

Again, above holds true for many but may vary as per individual's risk appetite.

Regards
Yogesh Tiwari

 

[mfnovice]

Thanks for your response.

I want to invest some money in debt funds. Should I invest at once in debt funds or should I do SIP in debt funds as well?

 

[mfnovice]

Hi,

Please reply. If I want to have some debt as part of my portfolio, can I invest a lump sum money in some good debt fund?

Thanks!

 

[mfnovice]

Hi Yogesh or other experienced members, Please respond!

Thanks!

 

[mrindia]

Hi Yogesh or other experienced members, Please respond!

Thanks!

No need 4 SIP in debt fund. U may go lumpsom
mr india

 

[mfnovice]

How are following mutual funds for SIP investment:
UTI Opportunities-G and UTI Dividend Yield-G

I am thinking to start monthly SIP with following funds:-
IDFC PREMIER EQUITY PLAN A (Rs 8000)
DSPBR EQUITY (Rs. 5000)
One of UTI Opportunities-G/UTI Dividend Yield-G (Rs. 5000)

Experienced investors, please advise this newbie.