Starting SIP…

POSTED BY Yogi ON October 20, 2011 6:44 pm COMMENTS (2)

Hi,

Though action month of Jaagoinvestor is over, I am still trying to take few actions on my investments.

I am studying about SIP funds and have few queries:

1. What does it mean by Large/Mid/Small Cap?
2. What should I lookout for when I am selecting a fund to invest in?
3. How to identify if its high risk fund or not? [i.e. exposure to equity and all] 4. I want to plan it for 10 years, but like 2 years then replan/rework on investments (amount fund etc) and again 2 years and so on till 10 years. How shall I decide which will be 5 best funds for short (5 years) and long term (10 years) investments?

Thanks,

Yogi

2 replies on this article “Starting SIP…”

  1. Yogi

    1. Large cap funds invest primarily in Large companies , which are big in size .. in saem way .. mid cap invest in middle size and small cap invests in small size ..

    The risks are higher in lower size companies and also the potential returns are very high ..

    2. You should look at the risk of the fund and how much you can take it ,for a normal person who is average risk taker .. Large cap Equity funds are suggested like HDFC top 200 or HDFC Equity

    3. The name says it all .. Most of hte funds have “Large” , “Mid” and “Small” in name .. if it does not have ,.. see the sector and size allocations of the fund on sites liek valueresearch or moneysights.com

    4. You can never do that .. you are trying to find an answer to a unrealistic thing .. if you dont want to look at your funds for long term like 10 yrs . then i would recommend putting money in an Index fund , a pure index fund based on nifty ..

    By why are you getting stopped by putting money in funds which would require a review in 2 yrs .. the review will take 1 hour . dont you think your financial life deserves that much attention from you ?

    Manish

  2. Abhishek says:

    Hi Yogi,

    Good to hear that u have decided to take action. Since you have too many basic questions. I would recommend use google for ur basic questions OR meet a good advisor/planner in person to understand the answers to your questions.

    Regards
    Abhishek

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today