SIP monthly investment

#1
Dear Sir,
I am 37 year old and I started my mutual fund investment from March 2017.

Below are the MF I am investing on monthly basis.

1. ABSL Small & Midcap Fund Growth-DIRECT - 2000
2. ABSL Frontline Equity Fund -Grow-DIRECT -2000
3. ABSL Advantage Fund - Growth-DIRECT- 1500
4. ABSL Advantage Fund - Dividend-DIRECT -Reinvestment - 2000
5. Kotak Emerging Equity Scheme- Growth -2000
6. HDFC Top 200 fund- Growth -2000
7. Franklin Templeton MF-2000


Kindly need an advise:

1) The above are good MF schemas? Or do I need to change
2) If I need to change please advise which are good
3) I am planning to increase the SIP amount additional 15000 monthly, Can I add in existing funds or do I need to select a new funds.

Thanks in advance.
 
#2
1. Answer to "Where to invest money" depends upon your goal.

2. Avoid dividend reinvestment plans. NEVER NEVER NEVER invest in it. IMO, always go with growth. If you need regular income then you can sell few units and get the money.

3. Check the ranking of MF scheme in moneycontrol.com and select top ranking schemes. Review atleast once in 6 months.

4. If you have long term plan then ELSS may be good option as there is tax benefits. Few non-ELSS schemes may give you better return even after taxes. So compare before buying.
 
#3
Your ELSS investment in mutual funds can help you put your hard-earned money to good use in a way that you save on taxes and also create long-term wealth. Here is an example of how it works.

Let us assume that the net asset value of your ELSS is Rs 30. If you have Rs 1,50,000 that you can invest under Section 80C, you can buy 5,000 units of the ELSS. As you are in the highest tax bracket, you will get an exemption of 30% on this investment. To simplify the example, we are ignoring surcharge and cess. So, on an investment of Rs 150,000, you get a tax rebate of Rs 45,000. So, your effective investment in the ELSS comes down to Rs 1,05,000.

ELSS funds have averaged an annualised return of around 13.8 per cent over the past three years. So, assuming an annual return of around 13 per cent, the NAV of the fund has appreciated to Rs 43 at the end of three years. Therefore, the value of your investment has increased from Rs 1,05,000 to Rs 2,16,000 in three years. This is nearly double of your investment and illustrates the power of compounding, combined with tax savings in ELSS. (Source: Angel broking blog)

Coming back to your portfolio, I see an annualised return of around 15% for your investment which is slightly above the industry average, So i conclude that the investments are good enough. Try getting into more equity based funds for better returns and more balance to your portfolio
 
#4
Your ELSS investment in mutual funds can help you put your hard-earned money to good use in a way that you save on taxes and also create long-term wealth. Here is an example of how it works.

Let us assume that the net asset value of your ELSS is Rs 30. If you have Rs 1,50,000 that you can invest under Section 80C, you can buy 5,000 units of the ELSS. As you are in the highest tax bracket, you will get an exemption of 30% on this investment. To simplify the example, we are ignoring surcharge and cess. So, on an investment of Rs 150,000, you get a tax rebate of Rs 45,000. So, your effective investment in the ELSS comes down to Rs 1,05,000.

ELSS funds have averaged an annualised return of around 13.8 per cent over the past three years. So, assuming an annual return of around 13 per cent, the NAV of the fund has appreciated to Rs 43 at the end of three years. Therefore, the value of your investment has increased from Rs 1,05,000 to Rs 2,16,000 in three years. This is nearly double of your investment and illustrates the power of compounding, combined with tax savings in ELSS. (Source: Angel broking blog)

Coming back to your portfolio, I see an annualised return of around 15% for your investment which is slightly above the industry average, So i conclude that the investments are good enough. Try getting into more equity based funds for better returns and more balance to your portfolio
It's a bit misleading when companies claim 'tax benefits of 46k' when investing in ELSS.

The main point to note here is, the government allows 150,000 to be deducted from your net income to be taxed ( 80C ) . Of course you can get Rs 150,000 worth of ELSS in an year to cover that entire exemption amount. But for most people, they are already having other investment/savings options which are included in 80C, like PF, LIC, PPF etc. Leaving aside PF contributions which are mandatory, I do agree ELSS are the next best choice for 80C investments ( LIC term plans hardly cost 10-30k per year, avoid endowment plans , and PPF is contrary to popular belief a very poor choice of investment given the 15 year lock in period )

Overall, expect better returns with ELSS compared to PPF and LIC, but dont fall for the '46k savings' claim.
 
#5
Systematic Investment Plan is a mode of investment where one can invest fixed amounts of money on a regular basis. Many prefer SIP investments chiefly because they lack the surplus money to invest. A systematic investment plan (SIP) allows investors to put any amount starting with as less as 500 per month into the selected mutual funds in a periodic manner (on a monthly or quarterly basis).
This mode of investment works to generate wealth in the long term, by making use of the magic of compounding. The earlier you start your investments, the longer is the time you have to compound money. Another thing to consider is that since the investments are made at regular intervals, the impact of market volatility is negated to a great extent.
SIP helps combat volatility
SIP
is the route to take if you are looking for ways to beat the market volatility. As illustrated below, you automatically buy more units when the market is low and less when the market is high, thus averaging out the purchase cost over time.
In times of volatility, we have seen how people normally tend to stop the investment and even resort to withdrawing the accumulated amount. One needs to keep panic at bay when the markets are volatile and continue investing in SIP. Wait for the result to bear fruit in the long run.
For example, let’s evaluate a situation where the NAV price has fluctuated between Rs. 100 and Rs. 123;
You can see, how for Rs. 5000 get to buy 50 units at a NAV of Rs.100. This goes down to 40.7 units when the NAV goes up to Rs.123. However, with SIP investment the average cost for the investor is only Rs.110.80. Thus, you get to average out the purchase price over a period of time.
Why Start SIPs Early?
The earlier you start, the easier it gets for you. The amount you need to invest to achieve a particular financial goal will also reduce if you start early. Let us see how compounding works.
 
#6
Optimal Returns for mutual funds can be calculated when a person is making systematic investment plan. Here various financial sites like Kotak MF provides inbuilt calculators which provides the people about optimal returns.
 

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