Chat Transcript

  • Amit Trivedi

    Feb,14,2018, 14:00 hrs

    Equity investments simplified

    Amit Trivedi , Author & Founder, Karmayog Knowledge

  • guest: I want to plan my retirement & child education , please sugget how much i need to invest. my goal for retirement plan is : 1 crore ( 28 years from now) child education 50 Lacs ( duration 18 years from now ) Investment already done: monthly SIP --5000 ( 1000 for each MF mentioned below) Aditya Birla SL Dynamic Bond Fund-Reg(G) HDFC Mid-Cap Opportunities Fund(G) ICICI Pru Balanced Fund(G) Mirae Asset India Opportunities Fund-Reg(G) SBI BlueChip Fund-Reg(G) Term insurance : 1) HDFC life insurance --1 crore 2) LIC endorment plus -- 32000 ( yearly EMI) 3) NPS --50000

  • Amit Trivedi:

    At the outset, congratulations for the approach to investing - setting the financial goals and then planning investments to achieve those. While you continue your SIP for the same amount for the whole term in the selected schemes, I guess the SIP amounts may not be enough. I also assume that you understand this. What you can do is increase the SIP amount everytime you get a raise in your salary - hopefully this should happen every year. My suggestion would be to first allocate a large part of the raise towards your SIPs and then think of spending the money. All the best

  • SR8OHfXK5c: Is it the good time to invest in small/mid cap equity fund?

  • Amit Trivedi:

    If you are trying to find out what will happen in the immediate future after you invest your money, please do not even try. It is impossible for anyone to correctly tell you whether the markets would go up or down in the near term. However, if you have a really long time horizon and are able to remain calm even if the portfolio value drops drastically, investing in good quality mid / small cap equity funds is not a problem. Some of the companies from these two segments eventually become bluechips of tomorrow. That should reward the investor who stayed through the tough times.

  • guest: Hello, I\`m a 26yr old student currently invested in a diversified portfolio consisting of - DSP BR Small and MidCap fund, ICICI Top 100 fund, Reliance Small Cap Fund, Kotak Select Focus Fund, Mirae Asset Emerging Bluechip, and L&T India Value Growth fund via SIP route. My aim is mainly wealth creation and im in the market for 8yrs. Could you kindly comment on the portfolio and any recommendations if needed?

  • Amit Trivedi:

    Based on your question I understand your goal is to create wealth through your portfolio in 8 years. If I have understood this correctly, I guess your time horizon is too short. Second, what is the meaning of wealth? How much amount would it mean? Creating wealth is a wish. A goal must have a specific amount. Investing in a well managed mutual fund regularly through SIP is always a good idea. Just keep the time horizon proper.

  • guest: i am having lumsum rs. 15 lakhs in account, my time horizone is 10 years and goal is 80 lakhs . is this possible to creat large corpus in 10 years. by STP frankling short term income to Frankling smaller (equity) 20000/- monthly STP created 80 lakhs in last 10 years, i also kw that dont compared past performance for present return. but still confused !! i dont want to miss next 10 years opportunities. what should i do ? should i do STP for 20000/ for next 10 year or split lumsum 50% amt in diversifed or balance scheme for 10 years?

  • Amit Trivedi:

    If you are not going to add anything to this investment in the future, your expectations are very high. Turning Rs. 15 lakhs to Rs. 80 lakhs in 10 years would mean your investments have to deliver more than 18% per year. That is a tall order. However, If you can invest some money regularly and keep increasing your monthly investment every year, the goal should be possible to achieve. Having said that, and borrowing from your own lines "past performance cannot be compared ...", what you have got in the past was very high compared to what you should expect going forward.

  • T0bfcy9IMM: Presently I am investing in Reliance Top 200 Fund and Canera Robock through SIP. Whether good decision.

  • Amit Trivedi:

    Investing in well managed mutual funds regularly, i.e. through SIP is always a good idea provided you have a regular cash flow to invest and that your time horizon is long. At the same time, whether an investment is good or not should be judged on the basis of whether it helps you reach your own financial goals. Nothing else matters.

  • nalaaa22 : Sir, Recently I redeemed my Mf and have a lumsum 17 lakhs, which short term Liquid fund to invest although dont have requirement for money now but afraid of equity market now.

  • Amit Trivedi:

    I assume you would want to go back to another equity fund when your fear subsides. In such a case, please select the equity fund that you would consider investing in and invest this money in the liquid fund managed by the same fund house. However, I would request you to consider the following: You said that you have got out of equity fund because you are afraid right now. What would cause the fear to go away - market prices going up from here or going down from here? Please think about this very seriously. I have seen many who have got out of equity due to fear only to come back at higher prices since each fall has increased the level of fear. It doesn`t help getting in and out of equity markets due to one`s emotions.

  • guest: I want to invest around 1 Lac of Rupees in mutual fund with short term benefits. please advise me the mutual funds which can give me good returns in short term.

  • Amit Trivedi:

    Define "short term" and define "good returns". If your time horizon is less than three months and you want safety of capital, consider liquid funds. In case if your time horizon is longer than 3 months but less than a year, you may look at ultra-short-term debt funds. However, in both these cases, the returns would be closer to bank fixed deposits.

  • guest: What is best portfolio and asset allocation to invest 15 lac in one go

  • Amit Trivedi:

    There is no one-size-fits-all solution. It all depends on your unique situation. You got to understand your own financial goals, your risk appetite and time horizon, without which any solution would be a disappointing one.

  • guest: i want to invest 2.0 Lacs in MF can u guide me the best 4 to 6 MF for investment

  • Amit Trivedi:

    it is impossible to know what is "best", since it is such a subjective term. If you want to know schemes that have delivered very high returns in the past, please remember that past performance may not be repeated in future. And if you want to know which schemes would deliver highest returns in the future, it is a futile exercise. Understand your own goals and find investments that help you achieve those.

  • guest: I have to invest rs 5 lac one time in equity mutual funds for the shorter period of 1 to 2 years. In which funds i will invest to reap maximum returns?

  • Amit Trivedi:

    Consider ultra-short term funds or short term bond funds