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POSTED BY ON January 4, 2014 7:21 pm COMMENTS (6)
I am reading your first book – “16 personal finance principles every investor should know”. Done with two chapters. Fortunately I purchased a term plan..in just the nick of time. I do understand now why the typical insurance cum investment products are food for nothing.
But how can I search products which will give me 12%,CAGR? This is per your examples in the book. I Want to start investing 5k in such products. Like accumulating 1 crore per your table in the book.
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Dear Endee, what’s so special in 1Crore figure? Why it’s your target amount? Why are you chasing 12+% return?
Thanks
Ashal
Hi Endee77 – After reading “16 personal finance principles every investor should know” i am sure you are aware of the possible risks involved in investing in Mutual Funds. I am sure no one is trying to misguide you here and the inputs are based on their experience with investing in Mutual Funds. Please take an informed decision on whether you want to invest in mutual funds, if yes then which on -> Duration(Preferably long duration(5+ years)).
All the funds come with colour codes so that you can pick funds based on your risk Appetite.
Blue: The blue colour coded box will be used to indicate low risk. Instruments such as fixed maturity plans, gilt funds and income funds will carry a blue colour code as these are the safest MF instruments. These instruments are ideal for anyone looking for a fixed and safe source of income
Yellow: The yellow colour coded box will indicate medium risk. All hybrid products such as monthly income plans (MIPs), balanced funds and unit-linked insurance plans which typically invest in both equity and debt products will be given a yellow colour. These instruments are ideal for those who seek diversification between debt and equity; a reduction in risk without a substantial reduction in the returns
Brown: The brown colour coded box indicates that one’s money is being put into a high-risk instrument. All equity funds such as diversified funds, sectoral funds, index funds, large-cap funds and small-cap funds will carry a brown colour code as these have a significant risk component and are prone to market fluctuations.
All the very best…
Regards,
Venkat
Dear Endee777,
There is no guarantee of returns for any financial product.
Investment in equity/MF is very very risk. You may loose all your investment or you may get returns which are lower than the FD returns.
Make decision based on your requirement/goal and risk profile.
Don’t invest your money in equity/MF because somebody is telling you to invest in MF (because the said funds are good funds), don’t undermine the risk in it.
If these funds would have given guaranteed 12% return then people would have stopped investment in FD (safely 8 to 10 percent in PSU banks) and diverted their money in MF.
There is one thread at the last page of this forum, started in 2010 (about best MF for investment in midcap for 5 year), you can check the performance of those funds over 3 years and can understand how foolish is to invest in the MF just because somebody is saying so. Study market yourself and make decision.
“Long term” investment will not necessarily give good return for any MF.
And even if you want to invest in these MF’s i will advise you yo wait till the 2014 election results. If there is no majority to UPA/BJP then market may remain at current level or less than it for next 3-5 year (this is my view).
Thanks,
Rahul
ICICI Prudential Focused Bluechip Equity Fund (G) is enough no need other mutual funds.
If you are a beginner i would suggest
HDFC Prudence – Balanced Fund
The other funds are Equity Diversified which have performed well,
UTI Equity Fund (G)
ICICI Prudential Top 100 Fund (G)
Canara Robeco Equity Diversified Fund (G)
ICICI Prudential Focused Bluechip Equity Fund (G)
HDFC Top 200 (G)
How ever i would suggest that it be goal based and the duration of investment.
Venkat
I belive one or two balanced mutual fund would give you such % of return in long term (10+ years)