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'I Want To Do Rs 10k SIP For Kids'

By rediffGURU ULHAS JOSHI
Last updated on: July 04, 2024 10:06 IST
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Do you have mutual fund queries?
Please ask your questions here and rediffGURU Ulhas joshi, Head -- Sales, Rank MF, (external link) a mutual fund investment platform, answers your Mutual Fund queries.

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Illustration: Dominic Xavier/Rediff.com
 

Anonymous: Hi Sir, I am 26 years old and currently having salary of around 1LAC per month having term plan of self, health insurance of self and parents and ppf and nps savings. I am planning investment in mutual funds with an amount of 25000 every month in each of small mid and large. Please suggest me a better approach to distribute between them and kindly suggest me funds as well sir I'm a beginner with less experience in this MF.

Hello & thanks for writing to me. As you want to invest in a mix of small, large & mid cap funds, you can consider starting SIPs in Multi Cap Funds, which by mandate have to invest in large, mid & small cap companies.

Investing in such funds will ensure that you have adequate exposure across market capitalisations.

Ravi: Hello sir... This is Ravi kumar. Age 34. Now i have 1 lakh Rupees. Now i want invest in mutual funds for my retirement. The question is where to invest? Only one index fund or 50% in index fund, 25% in mid cap and remaining 25% in Small cap? Or in your view diversification? So Please give me good suggestion?

Hello Ravi & thanks for writing to me. As your time horizon is long & goal is retirement, equity is suitable for you.

You can consider investing the 20% of your corpus in a large & mid cap scheme (these are different from large schemes), with 40% in a small cap and 40% in a midcap fund.

With your age & time horizon, having a large exposure to mid & small cap funds has the potential to generate higher returns.

Prateek: Hello Sir, I want to invest 30k per month in MF was planning to do it in Flexi, Mid, Small with 10k each for next 10-15 years. Can you please tell me if this is the right approach or should i divide the 10k amount as well, i.e., 5k each of 2 flexi cap, 5k each of 2 mid cap, 5k each of small cap. Or should I invest in other type of MF as well? Also can you also please suggest the MF?

Hello & thanks for writing to me. As your goal is long term, equity funds will be a suitable option.

You can consider investing in a mix of Flexi Cap, Mid Cap & Small Cap funds 2 schemes in each category thru SIPs.

Stepping up your SIP every year will help you create a larger corpus.

Rupali: I am 40 years old, I want to invest 6000 monthly. I am based in Thane, kindly guide me how can I invest this money to get maximum return.

Hello Rupali and thanks for writing to me. I am assuming that you are investing for the long term.

You can consider starting SIPs in equity funds as follows:

  • Rs.2000 SIP in Multi Cap Funds
  • Rs.2000 SIP in a Flexi Cap Fund
  • Rs.2000 SIP in a Small Cap Fund.

Annual step ups will help you create a large corpus.

C: Sir I want to invest 8k to 10 k every month for my 2 kids who are 4 years old for long term for 15 to 20 yrs please suggest good mutual funds I want to diversify in large, mid cap and small cap

Hello & thanks for writing to me. As your time horizon is long & the goal is to build a corpus for your children over 15 to 20 years, you have rightly chosen equity schemes.

You can consider starting SIP's of equal value amounts in:

1-Axis Flexicap Fund

2-Kotak Smallcap Fund

3-Canara Robeco Emerging Equity Fund

4-SBI Bluechip Fund

5-ABSL Multicap Fund

Stepping up your SIPs by 10% or more every year will help you build a larger corpus. It is essential to periodically rebalance your portfolio to ensure that you are on the right track.

  • You can ask rediffGURU Ulhas Joshi your questions HERE.

General disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.

Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

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