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POSTED BY ON January 28, 2012 4:18 pm COMMENTS (5)
Hi Manish,
Ashal and others pls advise…
My friend wants to invest Rs 9 lakhs in Hdfc Prudence fund..Time horizon is 4 years..He has 3 options…
1.Invest Lumpsum in HDFC Prudence as per his agents advise..
2.Should he invest lumsum or should he go for a SIP of Rs 18750 per month for 4 yrs years?
3..Inves these Rs 9 Lakhs in HDFC liquid fund and do STP (systematic transfer plan ) of Rs 18750 per month to HDFC Prudence for the next 4 yrs.
and lastly should he opt for growth option or divident reinvestment…
Pls suggest what option shud He take and any other advise?
Thanks
Shiraz
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Dear Shiraz, is it he (the person) who is calling the shots or the agent is giving all these options? In my view if the person @ age 65, is already have a decent investments in bank FDs & other debt products, the Cap. Protection funds are not good. A smaller part of the over all portfolio should be invested in Eq. via balanced funds or MIPs in a controlled manner to earn a kick in return over debt part, which is major part of the portfolio.
Thanks
Ashal
Hi Ashal
Thanx a lot for ur prompt and timely advise..
He is considering investing around 4 to 5 Lakhs in Birla sun life capital protection fund series or Axis Capital Protection Fund series…for 3 years…How r these funds ?
Thanx
Dear Shiraz, In the light of the info that the person is a retired one & age 65+, My take ‘ll be –
Out of those 9L Rs. Invest 6L Rs. in HDFC MIP Long Term Plan growth option. Invest remaining 3L Rs. in HDFC High Interest short term fund growth option & initiate STP of 1K daily into HDFC Prudence. So weekly investments ‘ll be 5K & eithin next 1Y+ some more weeks, his full money ‘ll be invested in the HDFC Prudence fund. Once the investment is over from Debt fund to Prudence. Just do nothing & sit tight for rest of the 3Y term. After the planned 4Y term is over, redeem only that much amount as he required from HDFC MIP & not from HDFC Prudence. The Eq./ part of Prudence ‘ll provide kick in return. The Debt part of MIP ‘ll provide the safety to the portfolio of this 9L Rs. along with the debt part of Prudence.
Thanks
Ashal
Hi Ashal
Well he is my father’s friend around 65 years old…He has shifted his investments from equity to Debt as he has retired …He has this surplus money of Rs 9 lakh and wants to make some money out of it by investing for 4 years ….Hence he was advised HDFC Prudence as it is a balanced fund…
He was investing lumpsum as advised by the agent…but I told him to consider other options which I have mentioned in my question…
Pls see the question again and give ur advise …
Thanks a lot…
Dear Shiraz, What about his other investments? Why only 4Y & not 7Y or 10Y or more? Any specific goal after 4Y? What’s that goal? The reason of opting HDFC prudence & not other pure Eq. funds? Age, current income, expenses, emergency funds, insurance, loan liabilities??????????????????
Please answer all of the above & many more from your friend’s own perspective.
Thanks
Ashal