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POSTED BY ON January 13, 2013 2:34 pm COMMENTS (3)
Hi Maneesh, i want to invest 10000/ per month through SIP. can u please advise, for another 3-5 years i can take high risk.
Shall i also consider RD or gold scheme for another 5000/-rs investment? if yes, then in Gold what will be a good option for a layman, i don’t understand gold much.
thanks in advance n good day.
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Dear Prashant, why do you want to invest for 3-5Y only & not beyond that? Please define your high risk.
Thanks
Ashal
I feel debt mutual funds in India is a good long term investment option. I have myself invested in some of the debt mutual funds via DBS bank India and would like to share that I derive good returns from them. Some advantages are that they offer investors the opportunity to earn an income or build their wealth through professional management of their investible funds. Hence, I would recommend you to invest in debt funds other than gold or rd.
http://www.dbs.com/in/personal/investments/debt/debt-mutual-fund.aspx
For a 3-5 years period debt funds are more tax efficient than gold or RD
Gilt funds, income funds or monthly income plans.
For equity choose a good large-cap fund and invest 60-70% of equity component you can invest there. then choose a mid- and small-cap fund and invest the rest if the equity component.
For example if you can invest 10000 each month and can invest in equity to about 60% then
6000 goes to MFs. Out of this 6000 put 60-70% in the large cap fund.
Franklin Indian Blue Chip is a good large cap fund
Quantum long term equity is a good large and mid-cap fund
IDFC premier equity is a good mid and small cap fund
alternatively you can choose a balanced fund like HDFC prudence or Balanced (70-80%) and
choose the mid-and small-cap fund (30-20%)
you can use this to see how to select a MF
http://freefincal.wordpress.com/step-by-step-guide-to-choosing-a-mutual-fund/
Although you can take high risk 3-5 years is still a short period to expect great market returns.
Risk appetite is more relevant for long periods. For short durations most of your investment must be in relatively safe instruments and a small component which takes some risk to get returns.