Want to make Rs 5lac by investing Rs 2k PM is it Possible????

[savkar]

I forgot to mention 1 thing. i took the growth funds for your calculations and hence their returns were maximum. I tried divided funds now and their returns are much lower.

Another thing to remember is, more than period, it is the rate of growth of economy that matters for such returns.

Let me give my example:
i started investing in SIP in jan 2008. now the returns are close to 40%
i also invested in some SIP In may 2009. their returns are barely 5%.

Why such a huge difference ?
In first case, funds were picked as the sensex was going down and those same funds gave back excellent returns. the sensex went down 100% and came back up 100%

in second case the sensex has hardly risen, it went up by 15-20%

so maybe in the future in next 5 years the sensex should reach around 40K or it should go down to around 10K and back to 20K to get somewhere around the returns you want :thumb:

Thnk you bro for taking so much pain for me God bless u:thumb:
Now as per my experience I know mkt is never one sided and ups and downs are there and track record of dividend of these two funds show that If I use dividend of these funds to avg in all good correction which comes at least once every year I can get more units at lower rate
I did that for many of my friends earlier too but my purpose of posting here is to check what are my mistakes as I know most of you guys knows more then me Lets see what is in store but all i know is strategy is so far fool proof as used practically for last 3 years Now one request can u check all dividends and add them for averaging in thee two scenerio?????????
Bro I know its too time consuming but take ur time and if possible pls do it for benefit of all Thanx in advance god bless us all:thumb:

 

[praveen taneja]

I forgot to mention 1 thing. i took the growth funds for your calculations and hence their returns were maximum. I tried divided funds now and their returns are much lower.

Another thing to remember is, more than period, it is the rate of growth of economy that matters for such returns.

Let me give my example:
i started investing in SIP in jan 2008. now the returns are close to 40%
i also invested in some SIP In may 2009. their returns are barely 5%.

Why such a huge difference ?
In first case, funds were picked as the sensex was going down and those same funds gave back excellent returns. the sensex went down 100% and came back up 100%

in second case the sensex has hardly risen, it went up by 15-20%

so maybe in the future in next 5 years the sensex should reach around 40K or it should go down to around 10K and back to 20K to get somewhere around the returns you want :thumb:

Thnk you bro for your reply but let me do some homework to give everyone reply but as mkt is not going to hit 8000 soon bro and more sideways more return with few corrections in it:thumb:

 

[savkar]

ur most welcome.
i have seen lot of these statements from ppl who bought mutual funds

1. yaar ka ghatiya return diya
2. yaar chaar (4) saal hogaye, hardly kuch badha hai
3. i dont understand MF, so sab paisa nikal diya

People fail to understand that MF more or less reflects the index (sensex or nifty). timing is equally important.

btw i had invested in 7 MFs since jan 2008. i liquidated all of them in apr 2010 as i thought that markets are overheated (i saw property rates in mumbai increase at the rate of 25 rs psf per day since feb 2010, signs of chinese property bubble, no consistent reports of US growth)

i will reinvest in some MFs again as the markets have gone down in last few weeks

Thnk you bro for your reply but let me do some homework to give everyone reply but as mkt is not going to hit 8000 soon bro and more sideways more return with few corrections in it:thumb:

 

[veluri1967]

Praveen,

You have choosen 5 years period with dividend option.

I hope you will receive your first dividends only after one year, if i am not wrong. That means, you will have a chance to take the advantage of investing in dips after 1st year. Is not it?

In other words, your portfolio is just at the mercy of nifty or fund managers at least for full one year.

For curiosity, what would be your option, if the nifty sours very high in the next 9 months until your 1st year dividends are received, then dips and dips and dips though not rapidly but at a steady phase.

 

[praveen taneja]

Praveen,

You have choosen 5 years period with dividend option.

I hope you will receive your first dividends only after one year, if i am not wrong. That means, you will have a chance to take the advantage of investing in dips after 1st year. Is not it?

In other words, your portfolio is just at the mercy of nifty or fund managers at least for full one year.

For curiosity, what would be your option, if the nifty sours very high in the next 9 months until your 1st year dividends are received, then dips and dips and dips though not rapidly but at a steady phase.

Bro first of all want to clear my curiosity of u all that I am a financial consultant since long and I have noticed from my customers funds that people who took investing date as 28 got max return:thumb:
SIP is name of a system in which one can avg his cost and if we take ur example mkt go high and high till 9 mnth and in last 3 mnth it dip n dip ok
then i hink even if mkt fell by 40% my loss wont b above 23% of my avg cost approx but is it going to b like this continuously 5 mnth I dont think so:clap:
Stock mkts fell after every 8 years and next fall is in 2014-15 if u see data of stock mkts good correction after 8 year of cycle of correction
I am not doing tukka in this system and not at mercy of fund managers as I am using there dividend for reinvesting and avging units bought at higher rates but anyway thnx for cautious note:thumb:

 

[praveen taneja]

ur most welcome.
i have seen lot of these statements from ppl who bought mutual funds

1. yaar ka ghatiya return diya
2. yaar chaar (4) saal hogaye, hardly kuch badha hai
3. i dont understand MF, so sab paisa nikal diya

People fail to understand that MF more or less reflects the index (sensex or nifty). timing is equally important.

btw i had invested in 7 MFs since jan 2008. i liquidated all of them in apr 2010 as i thought that markets are overheated (i saw property rates in mumbai increase at the rate of 25 rs psf per day since feb 2010, signs of chinese property bubble, no consistent reports of US growth)

i will reinvest in some MFs again as the markets have gone down in last few weeks

Bro first of all MF are not attached to nifty or sensex only
as you can see data i n my thread MF are selling continuosly for last few weeks and now when FII selling they are doing bottom fishing or u can call it portfolio switching:thumb:
all volatality is in mkt due to FII , HNI and DII they earn regularly and switch portfolios before one can understand due to money power
So all I am doing is Hathi ki poonchh pakad ke latak rahaa hoon for my dream come true:lol:

 

[nikrod]

Bro first of all want to clear my curiosity of u all that I am a financial consultant since long and I have noticed from my customers funds that people who took investing date as 28 got max return:thumb:
SIP is name of a system in which one can avg his cost and if we take ur example mkt go high and high till 9 mnth and in last 3 mnth it dip n dip ok
then i hink even if mkt fell by 40% my loss wont b above 23% of my avg cost approx but is it going to b like this continuously 5 mnth I dont think so:clap:
Stock mkts fell after every 8 years and next fall is in 2014-15 if u see data of stock mkts good correction after 8 year of cycle of correction
I am not doing tukka in this system and not at mercy of fund managers as I am using there dividend for reinvesting and avging units bought at higher rates but anyway thnx for cautious note:thumb:

How about choosing different SIP dates spread throut the month? I personally have 5 different SIPS spread accross the month (dates - 5, 10, 15, 18, 21). Opinions welcome.

 

[praveen taneja]

Actually bro in end of month mostly mkt end in some profit booking due to NAV setting by MF and DII so i took 28th and tried it give max return
IN RMF there are only 4 dates to chose2,10,18,28

 

[praveen taneja]

Friends I want to make Rs 500000/ by investing in MF SIP only in two funds Reliance Growth fund and Reliance vision fund that too in dividend option:clap:
Investment size is Rs 1k pm in both funds
Reason for chosing dividend option is getting profit out and reinvesting that Tax free return on every correction Is it Possible????? lets see
My first Investment for April is on 20/04/2010
Reliance Growth fund =Rs 1000/
Units 18.145 @55.1101
Reliance Vision Fund = Rs. 1000/
Units 24.262 @41.2167
Date I chose for SIP is 28th of every month and time frame is 5Years when My son would be in college and I need money then for his higher studies
I would post my Fund value on 15th and on First of every month:clap:
Lets see is this Possible:thumb:
God bless us all

My second instalment
Reliance growth Fund Rs 1000/ Units now36.757 avg cost 54.411 current NAV53.728 current cost 1974.90
Reliance Vision Fund Rs 1000/ Units now 48.950 avg cost 40.858 Current NAV 40.505 current value 1982.74:thumb:
God is gr88888888

 

[rrmhatre72]

Hi PT,

This is really good that I have come across this thread. I was planning to start SIP from next week. Appreciate your advice.

1. I was investing in Mutual funds through SIP from last five year. I redeem all of them at March end. (Fortunately market was on its peak at that time). Now I have ~3L available which I want to invest. I was expecting market to come down ~4500 range to invest that money in MF in one shot. Now two queries.
a. Is nifty level 4500 realistic in coming couple of months?
b. Should I go one shot investment or SIP mode for this 3L?

2. Anyway I want to start fresh SIP for 5k/month. My selected fund are HDFC top200,Reliance regular saving, HDFC prudence, Reliance diversified power, TATA infrastructure (OR ICICI infrastucture). I plan to invest for 8years. I need your opinion on following.
a. Is fund selection good for 8 years or I need to change it?
b. I had always invested in growth option. You are suggesting dividend option. Will dividend option hold good for these funds with your logic?
c. Do fund house allow switching from one fund to another. e.g If I feel market is overheated & I want to switch money from HDFC top200 fund to any debt fund of HDFC & come back to HDFC top200 when I feel down fall is over in the market. Is it possible without affecting SIP? ( I know Ulip has this facility but not aware about MF houses)
d. If point "c" is possible then will it give same results which you are planning through dividend option SIP?
e. How much corpus i can expect after 8years from this?
d. I understand taking month end SIP date is good option to have better returns. I hope this is aplicable for all fund houses (Not only Reliance)