Best fund options for a short term perspective!!

POSTED BY meeyush ON February 17, 2012 6:58 pm COMMENTS (4)

Dear ALL,

Thanks to the guidance provided by jagoinvestor forum even my family is getting aware and proactive. My mother working in a national bank has alwyas been doing conservative investments. She has 6 years remaining to retire and wants to invest in mutual funds with the perspective of 6 yrs. What are the best funds for her and what is better SIP or STP??
thanks again

4 replies on this article “Best fund options for a short term perspective!!”

  1. meeyush@gmail.com says:

    thanks everyone. I have read that investing lumpsums have given better performance than SIPs in the span 1-2 years. What are your views on it?? Therefore I had asked if we do a STP at 3monthly basis of 30 k or do a SIP of 10k per month, which one would be better in terms off performance??

  2. BanyanFA says:

    Six years to retirement gives you a good option to go with some portion of investments into Equity SIPs. However, please do not encourage her to divert 100% of her funds into equity. Looking at her age and the approaching retirement, she should have no more than 50% of her monthly savings being diverted into Equity.

    The breakup can be :

    70% Large Caps – HDFC Top 200, DSP BR Top 100, BSL FrontLine Equity
    30% Mid & MultiCaps – ICICI Pru Discovery, HDFC MidCap Opportunity, HDFC Equity, Reliance Growth type of funds.

    Make sure that by the time she approaches her 2nd last year toward retirement, you should slowly do a STP into a Liquid Fund over a 2 year period.

    Regards
    BFA

  3. TheZionView says:

    6 years is a 1 1/2 cycle in market. I would advice if it is a lumpsum to put it in balanced fund like HDFC balanced or HDFC Prudence and gradually move out at end of 5th year to debt schemes like FD or liquid fund

  4. Abhishek says:

    Hi

    STP is if you have a lumpsum amount. looks like you have a lumpsum. You can invest in HDFC Top 200 Fund, HDFC Midcap Opportunities, ICICI Focussed Bluechip and ICICI pru Discovery and use the FLEX STP.. You shud get a good return in the next 6 years.

    Regards
    Abhishek

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