Sir I am a retired person have retirement money want to invest in mutual funds by way of SIPs. Please let me know how to approach to invest in good mutual funds.

Ans: Through ELSS, Rs 1.5 lakhs under 80 CC can be invested per annum.

The scheme that can be considered is Axis Long Term Equity Fund (Growth).

 

Ans: Hello and thanks for writing to me. As your goal is long term & assuming that you are fine with taking risks, you can consider starting SIP's of Rs.5,000 each in:

1-Edelweiss NIFTY 100 Quality 30 Index Fund
2-DSP Quant Fund
3-SBI Focused Equity Fund
4-UTI Flexi Cap Fund
5-Tata Ethical Fund

Do note that periodically rebalancing your portfolio is essential to ensure you are on the right track. Stepping up your SIP's every year will help you reach your goals faster.

Ans: Hello Mayur & thanks for writing to me.

As your investment tenure is long term, you can consider starting SIP's in below equity funds:

1-Edelweiss NIFTY 100 Quality 30 Index Fund: Rs.500
2-DSP Quant Fund: Rs.500
3- UTI Flexi Cap Fund: Rs.500

You can invest in mutual funds thru a mutual fund distributor or several applications available online or on the mutual funds' website. Stepping up your SIP's every year by 10% or more will help you create a larger corpus.

Ans: Ajaz! I'm here to guide you through the basics of mutual fund investments and SIPs to help you make informed decisions about your financial future.

What are Mutual Funds?
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets.
They are managed by professional fund managers who make investment decisions on behalf of investors.
Mutual funds offer various types of funds catering to different investment objectives, risk profiles, and time horizons.
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan (SIP) is a disciplined approach to investing in mutual funds.
It allows investors to invest a fixed amount regularly, typically monthly, in a mutual fund scheme of their choice.
SIPs offer benefits such as rupee-cost averaging and the power of compounding, making them an effective way to build wealth over the long term.
Steps to Start SIPs:
Set Financial Goals: Identify your financial goals, such as wealth creation, retirement planning, or education funding.

Risk Assessment: Assess your risk tolerance based on factors like age, income, financial commitments, and investment objectives.

Select Suitable Funds: Choose mutual fund schemes that align with your financial goals and risk profile. Consider factors like fund category, performance track record, fund manager expertise, and expense ratio.

Start SIP: Open an investment account with a mutual fund company or a registered distributor. Complete the necessary KYC (Know Your Customer) formalities.

Choose SIP Amount and Frequency: Decide the amount you want to invest monthly and select the SIP frequency (usually monthly). Start with an amount that is comfortable for you and gradually increase it over time.

Monitor and Review: Regularly monitor the performance of your SIP investments and review your portfolio periodically. Make adjustments if needed based on changing market conditions or financial goals.

Benefits of SIPs:
Disciplined Investing: SIPs instill discipline in your investment approach by ensuring regular investing irrespective of market conditions.
Rupee-Cost Averaging: SIPs allow you to buy more units when prices are low and fewer units when prices are high, averaging out the cost of investment over time.
Power of Compounding: By starting early and staying invested for the long term, SIPs harness the power of compounding to grow your wealth exponentially.
Conclusion
Mutual fund investments through SIPs offer a convenient and effective way to achieve your financial goals. By following the steps outlined above and staying committed to your investment plan, you can build wealth steadily over time and secure your financial future.

If you have any further questions or need assistance in choosing suitable mutual funds, feel free to reach out. Happy investing!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in