Sir I am 34 year old My 02 Child what Iam Mutual fund start the SIP monthly/Qutraily pay then u give me advice what type start of investment for next 15 year

Ans: You may consider the below funds:

- Samco Flexi Cap Fund - Growth

- Axis Esg Equity Fund Regular Growth

- Uti Flexi Cap Fund – growth

- Hdfc Index Fund - Sensex Plan -Growth

While selecting a mutual fund, define your goal and then decide on the category that is best suited.

Once that is done, look for schemes in those categories with HIGH quality Portfolio and Moderate to High margin of safety.

Ans: Please find few top rated schemes for your consideration:

Equity - Multi Cap Fund:

1. UTI Equity Fund – Growth
2. Axis Multicap Fund – Growth

Equity - Large Cap Fund:

1. UTI Mastershare Unit Scheme - Growth Plan
2. LIC MF Large Cap Fund-growth

Equity - Mid Cap Fund:

1. MOSL Midcap 30 Fund – Growth
2. DSP midcap – growth

Equity - Small Cap Fund:

1. Kotak Small Cap Fund – Growth
2. Axis Small cap Fund - Growth

Equity Focused Fund:

1. Axis Focused 25 Fund Growth
2. MOSL Focused 25 Fund Growth

Ans:

Below funds can be considered:

• Parag Parikh Flexi-cap fund
• Samco Flexi Cap Fund
• HDFC Index Fund – Sensex plan
• UTI Flexi cap Fund

For Selection of mutual funds, look at the portfolio of the scheme and if it looks fine than the margin of safety needs to be determined. If this is difficult to ascertain take the help of AMFI registered mutual fund distributor.

Ans: You have a stable job with a net salary of Rs 45,000. You are already committed to chits, which takes up a significant portion of your income. With two children, who are just one month old, you’re thinking ahead. You want to plan for their future, especially for when they turn 22 years old.

Evaluating Your Current Commitments

Chit Fund Involvement: You’re investing Rs 25,500 in regular chits. While chits offer liquidity, they may not be the best for long-term wealth creation. The 1% interest is relatively low compared to other investment options.

Remaining Salary: After paying for chits, you have Rs 19,500 left. This amount needs to cover your living expenses and potential investments.

Starting SIPs and Mutual Funds

Starting Small: Begin with SIPs that fit your budget. Even starting with a small amount, say Rs 2,000 to Rs 3,000 per month, can make a difference over time.

Choosing the Right Funds: For long-term goals like your children's education, consider equity-oriented funds. These have the potential to grow significantly over 22 years.

Avoid Index Funds: Index funds track the market but lack flexibility. Actively managed funds can adapt to market changes and may offer better returns.

Planning for Your Children's Future

Goal-Based Investing: You want income when your children turn 22. This aligns with their higher education. SIPs in equity mutual funds can help build a solid corpus over time.

Increase Investments Gradually: As your income grows or once you complete your chit obligations, increase your SIP contributions. This will boost your investment corpus.

Regular Fund Reviews: Work with a Certified Financial Planner to review your investments regularly. This ensures they are on track to meet your long-term goals.

Understanding the Drawbacks of Direct Funds

Limited Guidance: Direct funds may seem cheaper but require active management by you. This can be challenging without financial expertise.

Benefits of Regular Funds with CFP Guidance: Investing through regular funds managed by a Certified Financial Planner provides expert advice. It helps in selecting the right funds and managing risks.

Maximizing Your Savings

Emergency Fund: Ensure you have an emergency fund. It should cover at least 3 to 6 months of your expenses. This can protect your investments in case of unexpected financial needs.

Avoid High-Cost Debt: If possible, avoid high-interest loans or debt. Focus on investing your savings in growth-oriented options like mutual funds.

Final Insights

You’re on the right track by planning for your children’s future. Starting SIPs in equity mutual funds can help you build a substantial corpus over the next 22 years. Keep your goals in mind, and invest steadily. Gradually increasing your SIP contributions and working with a Certified Financial Planner will ensure your investments are aligned with your objectives.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in