Again, I want to start SIP for 20K per month. Can you please suggest the funds name where I should invest. I am looking for short term ( 1 to 2 years).

Ans: The top rated schemes across Equity schemes at fair value are as under, you may invest as  also invest as per your requirement or even create a basket of funds…

Multi Cap:

• Motilal Oswal Multi Cap 35 – Growth
• UTI Equity Fund – Growth

Mid Cap:

• DSP Mid Cap – Growth
• SBI Magnum MID CAP FUND - GROWTH

Focused:

• Axis Focused 25 – Growth
• SBI Focused Equity Fund - Growth

Large & Mid Cap: Tata Large & Mid Cap Growth

Large Cap:

• LIC large cap fund – growth
• Mirae Asset large cap – Growth
• Axis BlueChip fund - Growth

Small Cap:

• Kotak Small Cap – Growth
• Axis Small Cap - Growth

Ans: start with a large cap mutual fund any 4 + star rated one

Ans: Kickstarting Your Investment Journey at 23: A Smart Move!
Investing ?5,000 per month through SIPs for 20 years is a fantastic decision at your young age! Here are some ideas for potential SIP investments, but remember, this is not financial advice:

Building a Diversified Portfolio:

Equity Funds: Consider investing a portion in equity funds that offer growth potential over the long term. Actively managed equity funds involve experienced fund managers who try to pick stocks to outperform the market. Actively managed funds come with higher fees compared to passively managed funds. You can explore Large-cap, Mid-cap, or Flexi-cap funds based on your risk tolerance.

Debt Funds: Invest a portion in debt funds for stability and to balance your portfolio's risk profile. Debt funds can provide regular income and help manage volatility.

Here's a Sample SIP Allocation (you can adjust based on risk tolerance):

60%: Large-cap or Multi-cap Actively Managed Equity Funds for long-term growth.

20%: Mid-cap Actively Managed Equity Funds for potentially higher growth (with higher risk).

20%: Debt Funds (short/medium/long-term) for stability and income generation.

Important to Remember:

Do Your Research: Research actively managed funds and choose those with a good track record and a reputable fund house.

Review Regularly: Review your SIPs at least annually to ensure they remain aligned with your goals and risk tolerance.

Seeking Professional Guidance:

Personalized Plan: A Certified Financial Planner (CFP) can create a personalized SIP plan considering your risk tolerance, investment goals, and future needs. They can suggest specific actively managed funds based on your risk profile.
By starting early, staying invested for the long term, and potentially consulting a CFP, you can be on track to achieving your financial goals!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Selecting the Right SIP for Your Investment: A Comprehensive Guide

Understanding SIPs:

Systematic Investment Plans (SIPs) offer a disciplined approach to investing in mutual funds. By investing a fixed amount at regular intervals, investors can benefit from rupee cost averaging and the power of compounding.

Assessing Your Investment Goals:

Before selecting a SIP, it's crucial to identify your investment objectives, risk tolerance, and investment horizon. Are you investing for short-term goals like buying a car or a house, or is it for long-term wealth accumulation, such as retirement planning?

Matching Funds to Objectives:

Based on your goals, you can choose from a variety of mutual fund categories, including equity funds, debt funds, or hybrid funds. Each category offers different risk-return profiles, catering to diverse investor preferences.

Investment Horizon and Risk Profile:

For a SIP of Rs 20,000 per month, your investment horizon and risk profile play pivotal roles in fund selection. Equity funds are suitable for long-term wealth creation, but they come with higher volatility. Debt funds, on the other hand, provide stability but lower returns.

Recommendation:

Considering your investment horizon and the potential for wealth accumulation, investing in diversified equity funds through a SIP seems appropriate. These funds invest in a mix of large-cap, mid-cap, and small-cap stocks, spreading risk across different market segments.

Benefits of Active Management:

Opting for actively managed funds allows skilled fund managers to capitalize on market opportunities and navigate volatility effectively. Their expertise in stock selection and portfolio management can potentially enhance returns over the long term.

Disadvantages of Index Funds:

Index funds, while cost-effective, may not always outperform actively managed funds. They are restricted to tracking specific indices, potentially missing out on opportunities for alpha generation through active stock selection.

Consultation with a Certified Financial Planner:

Seeking advice from a Certified Financial Planner (CFP) can further streamline your investment decision. A CFP evaluates your financial situation, risk appetite, and goals to recommend suitable funds aligned with your objectives.

Conclusion:

In summary, for a SIP of Rs 20,000 per month, investing in diversified equity funds through active management offers the potential for long-term wealth creation. However, it's essential to consult with a CFP to ensure alignment with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in