I am 53 years old. I have not done any investment yet. Can you please guide how I can start? I can invest upto Rs 5,000 monthly. want some good SIP and mutual fund

Ans: You may start with Axis ESG Equity Fund - Growth.

 

Ans: Hello Saumya, it's great to hear about your interest in starting a SIP to build your wealth at such a young age. With your monthly income of 37k, investing 5000 Rs in SIP is a prudent step towards your financial goals. Let's explore your options for mutual funds and portfolio diversification.

For your SIP investment, considering your age and risk appetite, you may opt for a diversified equity mutual fund. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, providing growth potential over the long term. Since you're starting with a moderate investment amount, you can consider starting with a single diversified equity fund initially.

Now, regarding diversification, it's essential to spread your investments across different asset classes to reduce risk. Alongside your equity SIP, you may also consider allocating a portion of your savings to debt mutual funds or fixed deposits. Debt funds offer stability and regular income, balancing the volatility of equity investments.

Moreover, considering your long-term financial goals, it's wise to diversify geographically as well. Investing in international funds or global ETFs can provide exposure to foreign markets, further diversifying your portfolio and reducing dependency on the domestic market.

As you progress and your income increases, you can gradually increase your SIP amount and diversify into more mutual funds across various categories. Regularly reviewing your portfolio's performance and rebalancing it based on your financial goals and market conditions is crucial for long-term success.

Remember, investing is a journey, and it's essential to stay committed and patient. Consulting with a Certified Financial Planner can provide personalized advice tailored to your financial situation and goals, helping you make informed investment decisions.

Starting early and being consistent with your investments will play a significant role in achieving your financial aspirations. Best of luck on your investment journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: It's fantastic that you're considering mutual fund investments for your financial future. Let's craft a strategy to invest your lump sum amount of ?10 lakhs and set up a SIP of ?20,000 per month.

Investing the Lump Sum Amount
Diversification
Diversifying your lump sum investment is crucial to manage risk and maximize returns. Consider allocating the amount across different types of mutual funds based on your risk tolerance and investment goals.

Asset Allocation
Allocate a portion of your lump sum to equity funds for long-term growth potential. Additionally, allocate a portion to debt funds for stability and capital preservation.

Fund Selection
Choose funds with a proven track record of consistent performance and aligned with your risk profile. Opt for a mix of large-cap, mid-cap, and multi-cap equity funds, along with quality debt funds.

Setting Up SIPs
Monthly Contribution
A SIP of ?20,000 per month is a significant commitment and can help you achieve your financial goals over time. Ensure that the SIP amount is comfortably affordable and does not strain your monthly budget.

Fund Selection
Select SIPs in mutual funds that complement your lump sum investments. Maintain a diversified portfolio with exposure to various sectors and market caps to spread risk.

Consistent Investing
Commit to regular and disciplined investing through SIPs, regardless of market conditions. Stay invested for the long term to benefit from the power of compounding and rupee-cost averaging.

Monitoring and Review
Regular Assessment
Monitor the performance of your mutual fund investments periodically. Review your portfolio at least once a year and make adjustments if required based on changes in market dynamics or personal financial goals.

Rebalancing
Consider rebalancing your portfolio if the asset allocation deviates significantly from your target allocation. Realign your investments to maintain the desired risk-return profile.

Conclusion
By investing ?10 lakhs lump sum and setting up a SIP of ?20,000 per month in mutual funds, you're taking proactive steps towards building wealth for your future. Stay committed to your investment plan, and consult with a financial advisor if needed to ensure your investments are in line with your financial goals.

If you need further assistance or have any questions along the way, feel free to reach out. I'm here to help you navigate your investment journey and achieve financial success.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Hello;

What is purpose of investment (retirement planning, kid's education house purchase)?

What is the time horizon (number of years)?

Based on your response, I can recommend you suitable options.

Thanks;