Hi Manish,
I have been following your blog for a while and using the tips and suggestions given by you and other experts who participate in your forums, I have shortlisted a few MFs. My objective is to use SIPs for the next 5 years with the aim of generating a corpus for using as downpayment for purchasing property.
After calculating current and increasing expenses, current annual commitments, tracking them for almost a year, forecasting my income a bit, I have come to the conclusion that I can safely park around 30K each month for the above purpose. This amount is also in the lower range of EMI that I would pay if I bought a house today – but I don’t have enough for downpayment right now.
Since FD is more appropriate for bulk amounts and I only get access to 30K at a time, I chose SIP. Also, I do not want lockin – if I get a good bonus 😉 and decide to buy in 4 years, I should have access to my money without losing the profit.
I don’t really have a target corpus in mind, this amount and strategy is purely based on what I can shell out right now and the fact that I do not want to put this money at risk (my wife will shoot me since she just wants me to collect the money in a savings account!).
When my income increases, I’ll probably put more money in the fund that is performing better or in another fund.
Selected Funds:
- HDFC Prudence Fund
- HDFC Balanced Fund
- FT India Life Stage FoF 40s
I wish to put 10K monthly in each of them. I have other shares and Equity oriented SIPs, but I wanted to go for safer funds since I want my capital to be protected. Over 5 years, I ‘hope’ that I will get a fair return and any short term losses will be madeup.
Questions:
I know that you don’t prefer to comment on individual funds, so I will not ask if my choice is right, I leave that to other forum members *hint* *hint* 😉
Instead, if you could comment on the type of funds I selected or suggest others that might be more suitable, that would be awesome. Of course, if my whole strategy is wrong, do suggest the best plan of action.
Also, what type of return should I expect from these funds? Looking at all the numbers in the sites has me confused; I am unable to predict what is a combined SIP return to expect.
I have a feeling, even the above funds have a moderate risk, are there others that offer similar returns at lower risk?
thanks,
Sameer