I make investments round ₹50,000 monthly through SIP. These are the funds I put money into:
Equity
Parag Parikh Flexicap: 12,000
UTI Flexicap: 8,000
Quant Active: 7,500
Edelweiss US Technology FoF: 5,000
Motilal Oswal S&P 500 Index Fund: 3,000
Mirae Asset Emerging Bluechip: 2,500
Canara Robeco Emerging Equities: 2,500
Debt
DSP Banking & PSU: 2,500
Axis Banking & PSU: 2,500
ICICI Corporate Bond: 2,500
IDFC Short Term: 2,500
I put money into quite a lot of debt funds as a result of principal quantities ought to stay intact, and these debt investments needs to be liquid sufficient after I want them. I’ve been investing since final yr.
—Name withheld on request
There are fairly a couple of issues that you’re doing proper so far as your funding goes. It is nice to see that you’ve got already began your funding in mutual funds. The funds that you’re investing in by means of SIPs are good and have completed nicely for buyers throughout totally different market cycles.
You could contemplate assigning monetary aims to those investments, it’s at all times higher to outline your monetary targets after which make investments in keeping with these targets. The readability on whenever you want the cash and the way a lot will assist to make your funding extra environment friendly.
From the general portfolio perspective, the SIPs that you’re doing are good for medium- to long-term monetary targets.
While the danger on debt funds is far lesser in comparison with fairness funds, you might be investing in debt funds the place the typical maturity is between 1 to 2 years and 4 years for ICICI Corporate Bond Fund at current. In debt funding the longer the maturity, the upper is the rate of interest danger on the funds. It is as a result of, at any time when there’s a change within the rate of interest, there’s an affect on the value of the bond. The longer the maturity, the upper is the affect on the value of the bond. Usually, buyers who want to make investments for medium- to long-term aims put money into the form of debt funds you might have invested in.
In the approaching future, you may contemplate including SIPs in these fairness funds the place the current allocation is low. This will provide help to diversify throughout totally different sorts of funds in addition to totally different fund homes too.
—Harshad Chetanwala, founder MyWealthGrowth.com
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