50% in Liquid funds and 50% in Equity funds – Is this correct approach ?

POSTED BY Gopinath ON September 15, 2013 9:24 pm COMMENTS (9)

Dear Ashal,

Please note that I am planning to start investments in Mutual funds and currently am  investing in PPF(only in the month of April to utilize the interest effectively) and RD (for short-term plan).

My Take home salary is Rs.35000.  After deducting my house expenses + other expenses, PPF and RD, am left with Rs. 7000/month.

So, could you kindly suggest me how i can go about investing this amount in MF? Please note that i am going through some articles regarding mutual funds and i have only little knowledge about it currently.

Whether i can divide this amount and put 50% in Liquid funds and 50% in Equity funds?

Kindly,Let me know your thoughts on this, as this inputs from you will be of great help for my planning.

Thanks and Regards,

Gopinath.

 

 

 

 

9 replies on this article “50% in Liquid funds and 50% in Equity funds – Is this correct approach ?”

  1. ashalanshu says:

    Dear Gopinath, out of the 5, please select only 1 fund and invest in that. this ‘ll keep the things simple and in case after 3-4-5 years, you find that fund is not performing well, you can decide easily, where to switch.

    Thanks

    Ashal

  2. Gopinath says:

    Hi,

    This 5 funds (Large-Cap) are ranked topped in long term perfomance funds.
    So, kindly suggest whether i can go ahead by investing in any of this funds.
    I believe “Expense Ratio” is a crucial factor that has to be considered.
    Also, could you kindly advise me on the other factors that i need to consider before taking a decision on this.

    HDFC Top 200
    ICICI Prudential Top 100 Inst I
    DSPBR Top 100 Equity
    SBI Magnum Equity
    Franklin India Bluechip

    Regards,
    Gopinath.

  3. Gopinath says:

    Hi Ashal,

    Thanks for the inputs.

    Regards,
    Gopinath.

  4. ashalanshu says:

    Dear Gopinath, if the money is meant for PPF, please do not put it at risk in an Eq. fund. Please put all the money in a liquid fund. Regarding plain SIP in Eq. funds, please start investing directly with AMCs.

    Thanks

    Ashal

  5. Gopinath says:

    Dear Ashal,

    Could you provide your inputs on this.

    Regards,
    Gopinath.

  6. Gopinath says:

    Could you kindly let me know the next steps that i need to take to start investing in MF? Also, i am planning to do MF in SIP basis for long term planning and its not for short term gains(ie.1 year/6 months)

    Regards,
    Gopinath.

  7. Gopinath says:

    Dear Ashal,

    Thanks for the update. Yes, I have already made emerging funding of Rs.72,000 (my 6 months expenses approximately Rs.12,000/month) and have deposited in savings a/c.

    Regards,
    Gopinath.

  8. ashalanshu says:

    Dear Gopinath, please do note, before jumping into Eq. please make sure you have sufficient emergency funding.

    Thanks

    Ashal

  9. Gopinath says:

    Could you kindly provide your inputs on the above query?

    Regards,
    Gopinath.

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