FINANCIAL PLANNING THROUGH MF

POSTED BY Maheshkumar S Ghuge ON January 12, 2012 4:57 pm COMMENTS (6)

Dear Manish,

I am 31 yr old & planning to start investment in following MF (All in Growth option ) through SIP for my Son’s (3 month old ) higher education & my retirement with the span of 20 + years.

My goal is 1.5 Cr fund accumalation.

1) Fidelity Equity Fund – 1500 Per Month.
2) Franklin India Bluechip Fund – 1500 Per Month.
3) ICICI Prudential Focused BlueChip Equity Fund Retail – 1500 Per Month.
4) Reliance Equity Opportunities fund – 1500 Per Month.
5) Birla Sunlife Dividend Yeild Plus – 1500 Per Month.

Kindly Advise

Regards
Mahesh Ghuge.

6 replies on this article “FINANCIAL PLANNING THROUGH MF”

  1. Dear Mahesh, When we are planning from here i.e. in the year 2012 for next 15 to 20 years, there is no guarantee of 15 to 20% sustained growth. Reason –

    We are at present developing country & as we ‘ll move ahead on the growth curve & as & when we ‘ll become developed country, the growth ‘ll tapered off to lower levels, that’s why I assumed an avg. growth rate of 10 to 12%.

    There is more to it – if we assume 10-12% but actually are getting 15-20%, we ‘ll be happy & ‘ll reach to our goals early but for reverse i.e. assuming high & getting low, we ‘ll never reach to our goals as well as we ‘ll feel cheated for such low performance.

    Thanks

    Ashal

  2. Dear Srivatsan Ganesh, there is nothing wrong for the Flexi SIP for an informed investor. For an ordinary investor, simple SIP is the way forward. Start a SIP based up on your current cashflow. Increase the SIP amount as & when cashflow permits.

    Marketing tracking is needed to utilize to implement Flexi SIP & that’s where the devil lies. Due to continuous down turn in the market, investor may switch off completely to the idea of SIP itself, forget Flexi one.

    Thanks

    Ashal

    1. srivatsan ganesh says:

      Hi ashal,

      By going for flexi – sip he is not going to lose anything ., He can pay the same amount which he mentioned in the beginning and no need to set anything every month ., Do you think he will be the same person like tdy (with little knowledge(not pointing person above) in market) after investing some hard earned money in MF.
      Surely people will be looking sensex (not too often) to check the value of their stocks/NAV .,
      They will get some idea abt it in future , at that time if u have an option to increase ur Sip it will be a good one.,
      You will not pay even a single penny for this VAS ., so its good to try
      Sorry if i said somethin wrong ., am not as experienced as you ., just wanna share my thoughts

      Regards,
      Sri

  3. srivatsan ganesh says:

    Hi ,
    Like ashal said , your funds selection is good ., I will add one more Hdfc top 200 🙂

    Yes ofcourse you have to invest more to reach your target and you can increase it in future 🙂
    My recommendation will be to go and start an account in FundsIndia for flexi-SIP which will give you the added advantage of increasing your SIP amount whenever you feel like market is down 🙂
    Generally MF’s are for people who find it difficult to predict market or who wants safe investment (comparing to stocks) ., so this flexi-sip is a benefit to get both of them.

    Regards
    Sri

  4. Dear Maheshkumar, Some quick nos. for you.

    If your MFs earn @ 10% return over 20Y period, the 7500 Rs. mly investment ‘ll become 57L+ Rs.

    @12% same amount ‘ll become 75L Rs.

    @ 10% to reach 1.5C, you need to invest 20K mly

    @ 12% to reach 1.5C, you need to invest 15K mly

    Your fund selection is good. Please do not feel bad & keep investing. As & when your cashflow permits, increase your SIP amounts.

    Thanks

    Ashal

    1. Maheshkumar S Ghuge says:

      Thanks Anshal for your suggestion.But fr u answer i am scared that by investing in MF if some one will get only 10% to 12% avg return (My assumption was 15% to 20% yr avg return in long term),then it is better to stic with convential investment such as Bank FD,PPF,NSC etc.Am I right or wrong?

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