New to Mutual Funds

POSTED BY shashank ON June 21, 2012 2:27 pm COMMENTS (3)

Hi
I’m planning to start monthly SIP 2500 each of 2 funds 1) DSP black rock top 100 ‘large cap fund ‘ and 2) hdfc balanced fund ‘equity oriented hybrid fund ‘ for long term ( more than 5 years )

Suggest me whether it is good start or any changes are required ??

regards
shashank

3 replies on this article “New to Mutual Funds”

  1. BanyanFA says:

    Shashank,
    Excellent start – well done. As Ashal mentioned, you need to keep your nerves of steel and continue to invest irrespective of any downfall !

    Just another minor tweak you could make. Balanced funds are combination of Equity & Debt. You may want to invest only in 100% Equity funds and invest any balance amount into PPF account / PF (incase you are employed). The rationale behind it is – the debt portion in Balanced funds attracts fund management charge of over 1.5%. Debt shouldn’t earn over 8- 10% in long term. After Fund management charge, that further reduces. Why not invest in a guaranteed return tax free PPF ?

    Regards
    BanyanFA

  2. Dear Shashank, Please keep investing irrespective of market level. That’s the main source of profit to you.

    Thanks

    Ashal

  3. Ramesh says:

    Very good.

    Keep learning and investing.

    Ramesh

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