MF Selection – Review

POSTED BY love_shreysharma ON June 22, 2012 8:31 am COMMENTS (5)

HI Manish/Forum Members,
Need Advice on MF selection.

I am in my early 30s with no liabilities (home loan, etc.). I am married and have 3 yrs old kid.
My total savings are 10L in FD and 2L in gold with 2-3 lakhs (combined/total) in PPF, PF, and EPF.
I have not been exposed to equity but would like to start with Mutual Funds.

For now, I could invest 45K pm for next six months, and after that 15K pm for next 14.5 years. Below are the funds I have shortlisted –

1) HDFC prudence – 15 K ( for 6 months) and then 5 k for 14.5 years
2) Fidelity Equity Fund – 15 K ( for 6 months) and then 5 k for 14.5 years
3) SBI Magnum Emerging Businesses Fund 15 K ( for 6 months) and then 5 k for 14.5 years.
My goals are –

1) 5L in 2 years from now (foriegn trip)

2) 10L in 3 years from now (car)

3) 75L in 15 years from now (child education)

4) 75L in 22 years from now (child marriage)

Pls. advice if I could reach my target with the above strategy/approach.

Also, to add
A) I am not planning to invest any more in FD but PF, EPF, etc. would continue.
B) For retirement, I have retirement home, and some ancestoral property worth 60 L (today’s price) with some rental income starting in year 2022 equivalent to 18k pm in todays term/value. Plus PF, Gratuity, and EPF
Your inputs would be highly appreciated.
Thanks
Shrey

5 replies on this article “MF Selection – Review”

  1. love_shreysharma@yahoo.com says:
    June 23, 2012 at 10:30 pm

    Thanks Ashal.

    Good Point, yes, postponing trip does makes sense. You do have a different perspective.
    Thanks for the review and suggestions.

    it would remain 2+1…

    May be, this is a stupid question, but how do I select the debt fund? I am a beginner, so pls, ignore my lack of knowledge.

    Thanks Again.

    Reply
    1. Ashal Jauhari says:
      June 24, 2012 at 6:09 pm

      Dear Shrey, here are the debt funds to be used for this Debt fund – STP – Eq. fund route.

      Templeton Floating rate retail
      Quantum Liquid fund
      HDFC Floating Rate Income ST Retail

      Thanks

      Ashal

      Reply
  2. Ashal Jauhari says:
    June 22, 2012 at 8:50 am

    Dear Shrey, what’s your exact age, spouse’s working or not, actual salary, mly living expenses, emergency funds, exact current assets & investments, life & health insurance, can you postpone your foreign visit for 2-3 years to make it after 2017 at least? “ll you remain with a 2+1 family size or it may go for 2+2?…………………………

    In case you are not comfortable to share more personal data in this open forum, you may mail to me directly.

    Thanks

    Ashal

    Reply
    1. love_shreysharma@yahoo.com says:
      June 23, 2012 at 12:25 pm

      Hi Ashal,
      Thanks for the reply. I have answered most of the q’s you have asked in the query itself. You might have overlooked it.. would appreciate if you could go thru the query again, and share your thoughts on the MF selection.

      Spouse is not earning..

      BTW, didn’t understand ur concern/question and suggestion on foreign trip..

      Thanks
      Shrey

      Reply
      1. Ashal Jauhari says:
        June 23, 2012 at 5:51 pm

        Dear Shrey, Regarding that foreign vacation, there are 2 things – 1 your child is very young & S/he may not enjoy that much. Although you did not clarified but in next 2Y or so, you may go for a family size of 2+2 that’s why I asked to postpone.

        Regarding a direct answer for MFs, my take ‘ll be –

        Franklin India Bluechip
        Quantum Long term Eq.
        HDFC Prudence

        I w’d like to use debt fund – STP – Eq. fund route for you

        Thanks

        Ashal

        Reply

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