Dear Sir,
SIP (Systematic Investment Plan) is nothing else but programmed or systematic investing that you do for a defined timeframe. This disciplined sort of investing is a great way to build a good investment portfolio to some extent. The goal of an individual investor while he's investing via SIPs and accumulating his savings into equity should be to diversify as much as possible and finally get a reasonable return for his investments. The main advantage of SIP way of investing is cost averaging.
One can select good performing mutual fund schemes, keeping in mind the individual's age and risk appetite, financial responsibilities, earning potential etc. Based on these criteria one could either invest in pure equity mutual fund (mid-cap, large-cap etc), Debit Funds or in a 'Hybrid: Equity oriented' where a minimum 60 per cent of the assets will be in equity, the balance in debt. If finds this too aggressive, one could consider the 'Hybrid: Debt-oriented Conservative' category where a maximum 25 per cent will be allocated to equity.
Mutual Fund investments are subject to market risk, so one should be very careful while selecting the schemes and fund houses. Also, the schemes selected should match with their financial goal and risk appetite. It is not advisable to invest in Mutual Funds for short term gains (except liquid or money market funds). The Mutual Fund investments should be for a medium to long term ( above 3 years). It's a bad idea to be putting your long-term savings into a sector or thematic fund or very aggressive fund except you are willing to take high investment risk. Also, avoid IPOs
The following are some of the good schemes for investments
1. HDFC Top 200
2. HDFC Equity
3. Franklin India Bluechip
4. DSPBR Top 100 Equity
5. Reliance Equity Opportunity
6. HDFC Prudence (Debt Fund)
Don't put your entire money in one scheme, please split into smaller portions and diversify among good schemes. If you are willing to take some risk, then only it is recommended to invest in mutual fund schemes especial equity schemes. The schemes to be invested should be selected based on their long term performance, good track records and credibility of the fund house etc.
Please take the help of an expert Financial Planner before you make any investments.
Best Regards
Prakash Nair
Cc: pnair1966@yahoo.com
Sent: Thursday, May 24, 2012 5:13 AMDear Mr.Nair,
I have been reading your mails regularly which are very useful in TODAY's world.
I have a request. I guess many friends (of WMC) would be interested in knowing the best (and
safe)way to invest on monthly basis like SIP in mutual funds.
Kindly suggest the good schemes.
Regards
M.Krishnamoorthy
Chennai
www.keralites.net          |
To subscribe send a mail to Keralites-subscribe@yahoogroups.com.
Send your posts to Keralites@yahoogroups.com.
Send your suggestions to Keralites-owner@yahoogroups.com.
To unsubscribe send a mail to Keralites-unsubscribe@yahoogroups.com.
Homepage: www.keralites.net
No comments:
Post a Comment