Suggestion on Mutual fund selection for house downpayment goal ?

POSTED BY Vishal Sharma ON September 6, 2014 6:39 pm COMMENTS (4)

I have few goals in my list. One of the major goal is buying house which requires a down payment amount of around 8-10 Lac. Goal: Build 10 Lacs corpus in 3 yrs.

Risk: I can go for High risk funds an looking for aggressive plan. Based on my goal I have selected few Mutual funds.

1. Axis Long Term Equity Fund
2. Quantum Long-Term Equity
3. ICICI Prudential Focused Blue Chip Equity Fund – Regular Plan – Growth
4. HDFC Mid-Cap Opportunities Fund – Growth 

Please let me know Whether these mutual funds will fulfill my need? Suggest any other mutual fund which will perform better? How much amount do I need to invest in monthly in SIP? Any other better option than mutual fund? Thanks in advance.

4 replies on this article “Suggestion on Mutual fund selection for house downpayment goal ?”

  1. Vishal Sharma says:

    Thanks Sumit for your reply and suggestions.

    Hemanth – Thanks for your reply. I have Includes ‘Axis Long Term Equity Fund’ fund to save tax.
    I have one question. What is Direct plan and regular plan of mutual funds?

    1. Hemanth Chandra says:

      Check out this article to know the difference.

      https://www.jagoinvestor.com/2013/04/direct-plan-in-mutual-funds.html

  2. Hemanth Chandra says:

    For a 3 year goal, it is not at all recommended to invest in Equity Funds….You can consider balanced funds to an extent.

    Still if you wish to invest in equity funds, one suggestion for you….

    ‘Axis Long Term Equity Fund’ fund is an ELSS…. so it has a lockin of 3 years….. If you invest in SIP, every individual SIP investment will have a lockin of 3 years and you will not get all the investment amount in 3 years…. so if you want to invest in “Axis Long Term Equity Fund”, you can invest in ‘Axis Equity Fund’ with the same objective and “Axis Long Term Equity Fund”…. except the 3 year lock in for ELSS…..

    Also, better invest in ‘Direct’ plans of mutual funds instead of ‘regular’ plans if you have the convinience to do so….

  3. Sumit says:

    Hi Vishal,

    All the funds you have selected are good, but to accumulate 10 lac in 3 years –> your SIP amount have to be 22500/month considering aggressive rate of return 15% per annum.

    And for such a SIP amount, I would add 1 more small-midcap fund in the list, I would 1 more from the following list, if I were you.

    Axis Midcap Fund
    IDFC Premier Equity
    SBI Emerging Business Fund.

    Thanks
    Sumit

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