Divya, how to choose a financial advisor for SIP investments?

Ans: Hi Sunny Chirom

With such a long horizon you must invest in aggressive bets to attain the future goal amount you are targeting like mid-caps and small caps. Additionally, also have a portion of a large cap funds to provide stability to your portfolio.

Since you did not mention the target amount, it’s not possible to state the amount of SIPs to be done.

Ans: SIP, or Systematic Investment Plan, is a method of investing in mutual funds where you regularly invest a fixed amount at predetermined intervals, typically monthly. It's a disciplined approach to investing that helps in wealth creation over the long term.

When you express interest in investing through SIPs, the first step is to understand your financial goals. Are you saving for retirement, a child's education, buying a house, or something else? Knowing your objectives helps in tailoring the investment strategy to meet your specific needs.

Next, we'll discuss your risk tolerance, which refers to your comfort level with the ups and downs of the market. Based on your risk profile, we'll recommend mutual funds that align with your preferences, whether you prefer conservative, moderate, or aggressive investments.

Your investment horizon is also crucial. SIPs work best for long-term goals, typically five years or more, as they allow you to benefit from the power of compounding and ride out market fluctuations.

Once we have a clear understanding of your goals, risk tolerance, and investment horizon, we'll recommend a diversified portfolio of mutual funds across different asset classes, such as equity, debt, and hybrid funds. Diversification helps spread risk and optimize returns.

Regular reviews of your SIP investments are essential to ensure they remain aligned with your goals and market conditions. We'll monitor your portfolio's performance and make adjustments as needed to keep you on track to achieving your financial objectives.

If you have any questions or need further clarification, feel free to contact me through my website. I'm here to provide personalized guidance and support you on your investment journey.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: you have amazing timeline with you and these all stocks looks good, keep the good going but use discipline and invest every month at any cost. dont look at the price of the stock but keep investing. the wealth would be awsome for your daughter. best of luck.

Ans: Hello;

My suggestion would be it is better to do a SIP into mutual funds as compared to direct stocks, for long-term.

Because in case of direct stock SIP your are exposed to concentration risk, also you may have to keep track of market and industry headwinds for the stock apart from tracking it's performance regularly.

It is much better to entrust that job to a fund manager at a reasonable cost and owning a basket of well researched stocks through mutual funds.

Ultimately it is your decision.

Happy Investing!!

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.