Hello, i am 38 YO, i am planning of moving 20 lacs lumpsum from FDs to Mutual Fund. Also i want to start a monthly SIP of 10k. Kindly suggest.

Ans:

Ans: You can consider Axis ESG Equity Fund (Growth), DSP Focus Fund (Growth), ICICI Prudential US Bluechip Equity Fund (Growth), Parag Parikh Flexi Cap Fund (Growth), SBI Magnum Globad Fund (Growth) and DSP Quant Fund (Growth).

 

Ans: we cannot suggest any mutual funds on this platform, if your target is for 10yrs then would suggest to pick a good combination of mid and small cap fund.

Ans: Hello Mainak, embarking on a journey of systematic investment planning at 45 shows your commitment to securing your financial future. Your decision to invest 15k/month for the next decade is a testament to your foresight and determination. But which mutual funds could serve as the sturdy vessels to navigate this journey?

As a Certified Financial Planner, I appreciate your desire for growth opportunities. Mutual funds, with their diversified portfolios, can offer just that. But remember, choosing the right funds requires careful consideration. Think of it as planting seeds; each fund should align with your risk tolerance and financial goals.

Consider funds with a track record of consistent performance and sound management. But also, don't overlook the importance of staying informed and periodically reviewing your investments. Just as a gardener tends to his plants, nurturing your investments with care can lead to bountiful harvests in the future.

So, let's explore funds that match your aspirations, ensuring your financial garden flourishes over the next decade and beyond.

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