Help with mutual and debt fund, can i invest in these?

POSTED BY sharath83 ON September 25, 2014 7:36 pm COMMENTS (4)

Hi,

My personal details:

My age: 31 years
My sister: 25 years, currently studying

Martial status of both: Not married

My income – 60,000 Rs

Expenses – 20,000 Rs per month

Am planning to start an investment for three things mainly, one for retirement and another for house purchase (flat probably) and marriage expenses.

Investment as follows (as suggested by my financial advisor), but need 2nd opinion:

Mutual fund (long term – 5-7 years or more):

1) Franklin India Bluechip fund
2) ICICI Prudential Dynamic fund

Debt fund (short term – 3-5 years):

1) HDFC Prudence fund
2) ICICI Prudential balanced fund (Equity 10% and Debt 90%)

Am planning to invest 10,000 Rs every month, that is, for Mutual fund 5,000 Rs and debt fund 5,000 Rs, and planning to top-up the price on every financial year, by 10-20%. I want to know if:

1) These suggested investment for mutual fund and debt are good? How is their performance?
2) These amount are sufficient for the above mentioned mutual and debt fund as a beginner?
3) This plan for retirement, house purchase and marriage expenses, a better option as an investment?
4) Is increasing the investment every year, is a good idea?

Will be very helpful to get an reply. Thank you for taking time and going though the above.

4 replies on this article “Help with mutual and debt fund, can i invest in these?”

  1. sharath83 says:

    Thanks Hemanth and Sumit for the reply….i will check on the midcap funds.

  2. Sumit says:

    1) The Debt funds you chosen is actually balanced fund, where E:D ratio around (60-70):(40-30). Anyway balanced funds are also good for short term goals.
    But for long term goals link retirement planning you can also include one small midcap funds like following:

    IDFC Premier Eq fund/ Axis Midcap/HDFC Midcap
    2) your SIP amount depends on your goal amount.
    3) For long term equity is always best option, it has the potential to beat any fixed income product/and inflation in longer run. Sensex produced 30X in 30 years, 40X in 40 years.
    4)Obviously you have to increase your SIP amount based on your goal.

    Know what should be your asset allocation here:
    http://www.behealthyinvestor.com/asset-allocation/

    Thanks
    Sumit

  3. sharath83 says:

    Thank you for the reply….will check on the mutual funds basic…..but i was expecting some more answer and also based on few of my questions.

  4. Hemanth says:

    FYI…. Debt fund is a type of mutual funds. The funds which u have mentioned as mutual fund are equity funds.

    These funds are good and have good track record.

    You can check their performance on valuresearchonline.com or moneycontrol.com

    You have to increase your investment every year….

    Please go through old articles in the main jagoinvestor site and understand the basics of mutual funds. Then only start investing in them or else you might end up in loss.

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