Seeking advice to invest in MF

POSTED BY Ayyalusamy ON April 1, 2012 11:20 am COMMENTS (5)

Hi,
This is Ayyalusamy, NRI currently in UAE. I was searching over net to find out the tips on MF invstment and fortunately get into this forum which really impressed me. I just ordered your book \”Jago Invstor\” thru Flipkart. Now my question is:
I would like to start invest in MF through SIP. Suggest some good schemes available to acheive long term benefit by considering the personal details below.
My details:
Age: 36
No of dependants:3
Short term commitment: No
Existing saving pattern: Real Estate & Bank FD (Approx: 30 lacs)
Insurane : Have a term plan for 20 Lacs
Annual income for 2012 : 20 lacs
Planned investment in MF for 2012 : 2 Lacs
Previous MF exposure: No

5 replies on this article “Seeking advice to invest in MF”

  1. Dear Ay yalusamy, for that real estate are you running any home loan? For that 3 dependents I assume you are having a family of We 2 Our 2. May I know both children are Son or D’ter or a son & a D’ter? Asking such personal questions for the reason that for a typical Indian family, the marriage expenses for a d’ter means a lot.

    Please increase your insurance cover immediately as rightly pointed out by dear Manish.

    Thanks

    Ashal

    1. Ayyalusamy says:

      Thank you for swift reply.

      I will increase my insurance cover soon. I just completed my home loan. My daughter is elder and about 9 yrs old and son is just two yrs old.

      1. Dear Ayyalusamy, Please fix a figure that you w’d like to use for education & career expenses of your d’ter after 10-12 years down the line. Similarly, put a figure for your Son. This ‘ll give you an Idea, how much money you need after 10-15-20 Y?

        Once a target is there, you may start moving in to the direction of your target.

        Thanks

        Ashal

  2. Hi,

    Would suggest you to get covered approximately, Try to take a cover from the place(country) where you expect to stay till your retiral or objectives achieved. Its is not worth taking a cover in India and staying in UAE, because in any unfortunate occurrence in UAE your family would not get any insurance value as you are on a foreign land.

    If your horizon to invest in equities for 5 yrs plus, Start of with Sip in HDFC Equity and DSP BR Equity.
    Hdfc Equity is a Diversified equity, this would give you an exposure to varied sectors and
    DSP BR Equity is a value style fund, this would give you an exposure to those stocks which are trading in market below there actual values. (To explain this it is like buying gold today at 20000 price while its actual value is 28000)

    Regards!

    Ajay

  3. I think the first thing you need to do is your insurance planning .. Without doing any calculations , I can suggest a 1 crore or 1.5 crore term plan to you, next time you visit India, get a term plan . thats the first thing

    Next, as you dont have any previous mutual funds investing experience, right now you can invest in Balanced funds . Just start 5k or 10k SIP in HDFC Prudence and see if you get comfortable with it in next 6 months . Then you can increase your exposure later .

    Manish

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