How many mutual funds I should choose if I have to do 10k SIP ?

POSTED BY Dev ON January 20, 2014 1:20 pm COMMENTS (7)

I need suggestion on my investment :

1. I have 2 lacs in SB account, Where to invest? I am in 30% slab and already got more FDs.

2. Need SIP plan for 10k monthly and willing to go for long term (10 years).

3.  Basic query on choosing SIP funds, Should i include on Balanced Fund(debt fund) also part of Large cap ,mid and small cap.   I am confused on this combo selection for 1ok SIP.

How many funds should be in a SIP for 10k commitment.

7 replies on this article “How many mutual funds I should choose if I have to do 10k SIP ?”

  1. AJ PlanRupee says:

    @Dev
    “Where should i invest 2 lacs for 3-5 years of time frame.”

    Here goes your answer:
    – 1 Lac can be invested in Triple Indexation funds that are available these days. These funds are nothing but FMP (Fixed Maturity Plan) with around 27 months maturity. By investing 27 months in this fund, you will be able to claim Triple Indexation which in all likelihood will make your income (capital growth of this 1 lac) TAX FREE.
    – Rest 1 lac can be invested in income funds like ‘Templeton India Corporate Bond’ or ‘Birla Sun Life Medium Term Plan’.

    Hope this helps.

  2. Sibin says:

    For 30% tax bracket, 3-5 years time frame Any long term debt fund will be good to invest 2 Lakhs

  3. Dev says:

    Thanks sumit, for the suggestion of portfolio.

    Where should i invest 2 lacs for 3-5 years of time frame.

  4. Sumit says:

    Hi Dev,

    Well as Ashal mentioned there is nothing called universal correct/ideal combination for funds, it always depends on your risk profile, goal amount, comfort level etc.

    One way to make a portfolio could be as follows:

    1) 1 large cap
    ICICI Prudential focused blue chip

    2) 1 large-mid
    Quantum Long term equity fund

    3) 1 small-mid
    IDFC Premier Equity/Or ICICI Pru Discovery/ Or SBI Emerging Business fund

    4) 1 balanced
    SBI Magnum balanced/ ICI pru balanced

    Thanks
    Sumit

  5. ashalanshu says:

    Dear Dev, do you want to create your own life or follow the ideal life of lord Rama? Just for your information, there is nothing called Ideal. The definition of Ideal ‘ll change with times.

    thanks

    Ashal

  6. ashalanshu says:

    Dear Dev, what ‘ll be the time frame for your 2L Rs. to remain invested. For 10K Rs. please opt only 2 funds with 5K each SIP.

    Franklin India Bluechip Fund Growth option
    Quantum Long Term Eq. Fund Growth option

    Thanks

    Ashal

    1. Dev says:

      Hi ashal,
      I am keeping 3 years is time frame for 2L investment.

      Regarding 2 funds which you suggested, both are seems to be large cap funds.

      What i have read from the websites that , 1 large cap, 1 mid cap,1 small cap and 1 balanced fund should be ideal for SIP portfolio.

      Can you please explain why 2 funds enough, and ideally how many funds required, is there any logic involved in choosing funds for long term portfolio

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