MUTUAL FUND SIP ADVICE

POSTED BY SREEKANTH ON June 9, 2012 10:47 am COMMENTS (18)

DEAR ALL

Iam investing 20k per month SIP FOR THE LAST 2 MONTHS.
HDFC CHILDREN GIFT FUND : 5K
2 UNITS PER MONTH ON GOLDBEES : 5.8K
2.5 K EACH ON IDFC PREMIER EQUITY, ICICI PRUDENTIAL, BIRLA SUNLIFE FRONT LINE EQUITY, DWS GLOBAL AGRICLUTURURE

IAM 39 YEAR OLD WORKING FOR MNC
PLEASE ADVICE IS IT OK.
SREEKANTH.B

18 replies on this article “MUTUAL FUND SIP ADVICE”

  1. Jig says:

    Dear Sreekanth,
    Be Calm and have patience.
    These guys are so far helped hundreds of ppl and their intention is also towards true helping. So they are trying to get more n more info from your end first.

    Well You said your goal is to achieve corpus of 40 lac.
    Now ques will be :
    1. How long you wana invest?
    2. Is this the current value or corpus value at end of investment
    3. How is your risk apetite so You can consider the yearly investment return.

    Ex:
    Monthly SIP of 5000 , 20 Yr investment,( with No increase per year) and expecting 12% return, your corpus would be 4323147 after 20 Yrs. ( Risk apetite will decide the different instrument of investment in your PF and accordingly you can expect return on investment)
    Now is that your goal or you are thinking some other way? thats why more inputs are required from your end.
    If thats your goal, you need only one good diversified fund for monthly investment of 5K in that. why nifty,sectorial fund and what they are doing in your PF thats the ques:

    Thanks
    Jig

    1. SREEKANTH says:

      Dear Jig, Thanks for your reply.

      The details are already provided and iam providing again.

      1. 20k per month SIP.
      2. Investment period : 10 Years.
      3. Corpus after 10 years expectation or Goal : 40 Lacs.
      4. Investment of 20k per month started from the last 2 months.
      5. Iam an NRI.

      Queries.

      1. Whether these 5 Investments of 20,000 per month are good enough to achieve the goal.
      2. Any modification required.
      3. whether i will get more than 40 lacs.
      4. what is the money value after 10 years.
      5. can i put that 40 lacs in SBI PPF after 10 years so that i will get monthly pension.

      please give the detailed reply ok

      with regards
      B.Sreekanth

      1. SREEKANTH says:

        Thanks Ramesh,

        atleast you have come on my way and cleared some doubts, Fantastic, to repeat you are in my way and near to my thoughts.

        i do confirm as follows.

        1. 7.5k towards IDFC,ICICI, BIRLA is good as per your suggestion.
        2. DWS AGRO is suggested by my fund manager,tulasi who has studied and i have blindly done for it.
        3. my daughter and my family likes gold and in addition Gold is increasing day by day hence invested in Gold Bees.
        4. Hdfc children gift fund growth is invested on thinking about my daughter for 10 years, i mean for higher education. you are right.

        For my pension, i have 10k pe rmonth. please guide is it ok to get 20 LACS after 10 years, if nothing is guaranteed, what is the need for investment.

        can i propose for HDFC BANK RD for 10k per month for 10 years? that will give gauranteed returns.

        Please suggest ?

        Thanks & regards
        B.Sreekanth.

        1. Ramesh says:

          Bank RD for 10 years. Really bad idea. (reply format in your style!)

          1. SREEKANTH says:

            Thanks Ramesh on the Bank RD perspective.
            as per you 7.5k per month SIP is good investment ( ICICI, IDFC,BIRLA).
            I want to invest the same for 10 years.

            =90,000*10=900,000.

            How much returns i can expect. more than Bank RD? Please let us know.

            Thanks & regards
            B.Sreekanth

            1. Ramesh says:

              More likely to be more than bank RD. But to pinpoint it is futile.

              You do need to learn a lot about how different assets behave. Read and learn, please (for you own sake).

              Please do not take advice of a 9 year old for financial planning. What does her liking gold has anything to do with your retirement financial planning? think yourself.

              Do you think, you will continue to earn the exact same amount of money throughout the next 10 years? If not, why will you NOT increase the SIP/lumpsum, etc? If yes, your 20 lakhs after 10 years are nearly equal to 10 lakhs in today’s terms, and after 20 years=5 lakhs in today’s terms. If you can live on 5 lakhs after 20 years, enjoy because you must be really really frugal. Beyond 20 years, I do not have the stomach to calculate. 🙂

              Ramesh

        2. Dear Sreekanth, can you notice from dear Ramesh’s reply, we are still clueless for your financial actions. The most shocking part to me – you invested blindly as your own reply based upon the recommendations of that fund manager (I think it’s a relationship manager from your bank).

          By the way, can you visualize the impact of inflation down the line after 10-15-20 years? The 20L or 40L amount seems enough for today but down the line it may not remain so.

          A direct reply in terms of good – ok – bad for your investments is already given by dear Ramesh, hence not adding more to confuse you.

          Thanks

          Ashal

  2. Dear Sreekanth, can you tell me – What this DWS GLOBAL AGRICULTURE is doing in your portfolio?

    Please ask yourself, are you investing for a/few goal/s or just for sake of investing.

    First of all please identify your goals. then quantify these goals & then only allocate money towards investments to reach to these goals.

    By the way you forget to tell the name of IPRU AMC’s fund. It shows a bit of nervousness in you. You are not sure of what you are doing & for what purpose. My dear friend, first of all sit in peace & think with a calm mind. If you feel I’m teaching or preaching too much, please accpt my sorry in advance but I really want to help you.

    Thanks

    Ashal

    1. SREEKANTH says:

      Dear Ashal, Thanks for your reply. to give the complete details.

      5k on HDFC Children Gift fund : ( For my Daughter who is 9 years Old)
      5.8k ( 2 units per month) on Gold Bees
      2.5k each on Birla Sun life Front line equity, IDFC Premier equity ( Growth), ICICI Prudential Discovery Fund ( Growth), DWS Global Agribusiness OFF Shore fund ( Growth).

      Goal : Investment for minimum 5 to 7 years for having a Good Corpus.

      This is been advised by one of our Fund Manager, hence Invested.

      Hope this Info is sufficient.

      Please guide now. Iam an NRI.

      Thanks & regards
      B.Sreekanth.

      1. Ramesh says:

        Have there been any reasons given for this portfolio? This query does not mean that the present portfolio is good or bad.

        1. SREEKANTH says:

          dear ramesh, as you might have seen 20k per month is my present SIP.

          Iam ok to spend 10k per month more. please do suggest the funds accordingly.

          Tenure : 10 years from now.

          Thanks & regards
          B.Sreekanth.

      2. Dear Sreekanth, can you define your good corpus? Is it 5L or 10L or 50L or 1C? One of our Fund manager – Can you elaborate on this?

        I’m still unable to understand the presence of that DWS fund in your portfolio. I’m also agree with dear Ramesh that we are not commenting on the quality of the portfolio – good or bad, but want to know your own understanding for your own money invested in different instruments.

        Thanks

        Ashal

        1. SREEKANTH says:

          Dear Ashal and Ramesh, iam still not getting the good advise from you guys.

          as informed 20k SIP per month for 10 years is my goal.

          Investment : 25 LACS. Corpus expected : 40 LACS.

          Is the diversification good or not so that my goal can be met ? please study in detail and give us the feedback on each fund i have purchased.

          Give comments on all the 6 Funds i have added in the SIP.

          Please give the advise not by putting negative marks OK.

          Hope you understand

          with regards
          B.Sreekanth

          1. Dear Sreekanth, A plain answer for your basic query, if your above portfolio keeps earning 10% yly return, you can reach to your target corpus of 40L Rs.

            The queries raised by me are still unanswered from your end (DWS fund, your fund manager) hence I can’t comment any more regarding your portfolio structure. If you think I’m being negative to you, well I’m sorry if you feel so. Our intention is to help you by extracting as much info as possible from you to help you understand the worth of every single rupee you are investing.

            Thanks

            Ashal

        2. SREEKANTH says:

          Dear Ashal, thanks for your reply. i following is for your classification.

          1. Fund manager means, one person named Mr. Maturi Tulasi from Hyd, India suggested me this DWS Fund with other 3 funds and i have taken it. i dont know about this site before 2 months. he works for AXIS Bank and Fund manager and supporter for some of my other colleagues. iam an NRI ok. he is an advisor to tell which fund is good.

          my questions are still un answered.

          1. whether all my six SIP MFs are good or any change is required to achieve the corpus more than 40 LACs after 10 years.
          2. after 10 years which is the good option to put so that i will get Pension.
          3. clearly specify about each MFs out of 6 MFs purchased by me in the following way : Good, bad, not bad, OK.

          Please help
          regs
          Sreekanth.

          1. Dear Sreekanth, I’m happy for the fact that now you are opening up. I was not asking for the exact name of the person but I was more interested to know the core of the recommendations & your own understanding for the things you are doing.

            By the way, you said – Retirement after 10Y from this 40L Rs. corpus – Is it your final requirement or do you intend to use this as supplement for your income? One more thing – you stated the discussion with child education planning & now the retirement thing is there, within the same 20K Rs. mly investment. Please check where do you want to move? All of us are ready to help you.

            Before advising the goodness or badness of your existing investments (funds) we want to make sure for your destination. Hope now you are comfortable with continuous queries from us. 🙂 🙂

            Thanks

            Ashal

        3. SREEKANTH says:

          Dear Ashal , Thanks. however still iam getting only queries from you but no answer about my 6 funds are good , bad, not good, ok.

          let me make my stand clear.

          This 40 LAC Surplus is for my suppliment to my income. i mean like monthly pension in case of any bad situation. if i can put in some monthly pension option i can receive some monthly pension.

          With all these dig in queries. please answer atleast now.

          1. Ramesh says:

            Ok, I will try and sort things out for you.

            1. HDFC Children’s Gift fund: There are two such funds. One is Investment fund which invests 40-60% in equity (so less aggressive and not tax-friendly). The other is Savings fund which invests 0-20% in equity (a predominantly debt plan, which is less good for long term). But since we do not know, what is the basic thought-process behind the recommendation, we cannot really say, if these funds are good for your 9 year daughter. Whether this money is for higher education starting somewhere around 16-17 years or is it for her own usage, which will happen when she is around 23-25 years, etc. End Verdict: Cannot say (with reasons).

            2. GoldBees. Since I do not really think Gold is investment grade for a long term portfolio – I give it Bad. But if you think, this gold is for your daughter (I don’t think, daughters will like gold ornaments 15-20 years down the line, but this is just my thought), then it is OK. Verdict: One way or ther other, depending upon your reason which you haven’t given yet.

            3. The IDFC, ICICI and BSL MFs are good for long term investment. What have you (or your manager) considered if these schemes do not work well in next 3-5 years. Verdict: Good

            4. DWS Global Agribusiness. What is this fund doing in your portfolio escapes me, without a proper logic. In my opinion, there should be a place for International oriented equity funds. But sectoral funds are better only if someone knows about them strategically. I do not know what is the reason for this fund. Verdict: I don’t know.

            Do you plan to increase the amount of investments in these funds or other funds, etc? Because unless you do it, your final corpus would not be sufficient to have a Real Return.

            Moreover, the fund for your children’s account is really not for your retirement. Similarly, the reason for the gold investment. The rest 10k is woefully short. How you are calculating them into your retirement corpus is beyond me.

            Regarding 40 lakhs after 10 years. There is no guarantee that you will get 40 lakhs after 10 years (not with these funds, or with any other equity funds). You may get them in 5, or you may get them in 25 years. We cannot really say. Equities do not give your returns in a straight line manner. So, how will next 10 years behave cannot be determined.

            Hope this covers your queries.
            Ramesh

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