i have 2 lakh , in which M.F should i invest for high return

Ans: Short duration debt and Hybrid Balanced advantage are categories suited for this time horizon. Schemes to consider are as under (Rs. 4 lakhs each)

1. HDFC short Term debt fund -- Growth
2. ICICI Pru short term fund -- Growth
3. Union Balanced advantage fund -- Growth
4. Tata Balanced advantage fund - Growth

Ans: Hello Raghu and thanks for writing to me. Assuming you retire at 65 and your portfolio compounds at around 13%, you will be able to create a corpus of around Rs.1.5 Crore after investing Rs.20,000 every month.

You can consider starting monthly SIP's in:
1-Edelweiss Nifty 100 Quality 30 Index Fund-Rs.5,000
2-UTI MNC Fund-Rs.5,000
3-SBI Focused Equity Fund-Rs.5,000
4-Kotak Equity Fund-Rs.5,000

If you can step-up your SIP's by 10% or more every year, you will be able to create a larger corpus for retirement.

You should also rebalance your portfolio periodically to ensure that your investments suit your risk preferences. I recommend you seek help from a professional financial planner.

Ans: Investing 4 lakh for a two-year horizon to further grow your wealth is a thoughtful endeavor. Since you already have a substantial investment in mutual funds, including tax-saving ones, you're well-versed in the benefits of long-term investing.

For this short-term goal, consider allocating your funds to debt instruments or conservative hybrid funds. Debt instruments like short-term bonds or fixed deposits offer stability and predictable returns, making them suitable for shorter investment horizons. Conservative hybrid funds, blending both equity and debt, provide a balance between growth potential and risk mitigation.

Prioritize capital preservation and liquidity when selecting investments for this goal. Evaluate the risk-return profile of each option and choose investments that align with your risk tolerance and financial objectives.

Remember, even short-term investments require careful consideration and planning. Consult with a Certified Financial Planner to devise a strategy tailored to your needs and ensure your investments serve your goals effectively. With prudent decision-making, you can grow your wealth steadily and achieve your financial aspirations.

Ans: I commend your decision to invest in mutual funds to secure your financial future. With 4 lakhs in hand, you're taking a step towards building wealth and achieving your goals. Have you considered the power of expert guidance? A Certified Financial Planner can provide personalized recommendations based on your risk appetite and investment horizon, helping you navigate the vast landscape of mutual funds.

Active funds managed by skilled professionals offer the potential for growth and income generation, steering clear of the passive approach. By opting for regular funds with the assistance of a Mutual Fund Distributor, you can benefit from their insights and experience, ensuring a smoother investment journey.

Remember, investing is not just about numbers; it's about planting seeds for your dreams and nurturing them over time. It's about finding alignment between your financial aspirations and the strategies that best suit your needs. Let's embark on this journey together, crafting a roadmap that not only grows your wealth but also enriches your life.

Ans: That's great! Having Rs. 2 lakhs saved is a fantastic first step. Now, let's explore how to invest it wisely to grow your wealth.

Understanding Your Goals

The best investment option depends on your goals. Here are some questions to consider:

Short-Term Goal (less than 3 years): Are you saving for something specific soon?
Long-Term Goal (more than 3 years): Are you saving for retirement or a big purchase?
Short-Term vs. Long-Term Investing

Short-Term Goals: For short-term needs, prioritize stability. Fixed deposits or debt funds offer lower risk and predictable returns.

Long-Term Goals: For long-term goals, consider equity mutual funds. They have the potential for higher growth but can be more volatile in the short term.

Actively Managed Expertise

Actively managed funds have experienced fund managers who make investment decisions to try and outperform the market. This approach can be beneficial compared to passively managed funds, which simply mirror an index.

Benefits of a CFP

A Certified Financial Planner (CFP) professional can create a personalized plan for you. They can help you:

Choose the Right Investment: Select an option that aligns with your goals and risk tolerance.
Start an SIP: Set up a Systematic Investment Plan (SIP) for regular investing and benefit from rupee-cost averaging.
Regular Plan vs Direct Plan

Regular plans with a CFP professional can offer some advantages over direct plans. A CFP can:

Save on Costs: Help you potentially minimize investment expenses.
Stay on Track: Guide you through market ups and downs to keep you invested.
Remember:

Investing is smart, but there's no one-size-fits-all answer. A CFP can create a plan considering your goals, risk tolerance, and investment horizon.

Ready to take the first step? Pls discuss your goals with a CFP and find the perfect investment option to grow your Rs. 2 lakhs!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in