Hi, I started with a SIP of Rs 10K from the year 2016 in mutual funds. I just want to know what is the highest maturity period for the MF and what i can expect with this SIP amount at the time of maturity with highest period.

Ans: Investment in mutual funds is subject to market risk and each fund comes with a risk-o-meter. It is pertinent that you assess your risk profile and accordingly invest in mutual funds.

Equity funds are good for long term investments; however, they are high risk investments.

You may consider Axis ESG Equity Fund (Growth) and Motilal Oswal Focused 25 Fund (Growth).

 

Ans: Hello, along with the category the time duration of your investment is also important
Your fund category can be 50% small cap and 50% mid cap with an investment horizon of 20 years

Ans: Starting to invest while still a student is a fantastic initiative, setting the stage for solid financial habits in the future. Investing doesn't always require a substantial amount; even small, consistent investments can make a significant difference over time.

Given that you're a student without a regular income, it's essential to invest an amount that you can comfortably afford without straining your finances. Consider starting with an amount as modest as Rs. 500 to Rs. 1,000 per month. This amount might seem small, but the consistency of investing is more crucial at this stage.

Think of it like planting a sapling; you don't need to pour gallons of water every day, just a little regularly. As you start earning and your financial situation improves, you can gradually increase your SIP amount.

Remember, the power of compounding works best with time. Starting early allows your investments more time to grow, much like a snowball rolling downhill, gathering size and momentum as it goes.

Lastly, choose funds that align with your long-term goals and risk tolerance. Happy investing!

Ans: We don't have information about your risk appetite. But assuming that it is at least moderately aggressive, then you can start investing in a combination of largecap index funds, flexicap funds, and midcap funds. Unless you are planning to invest a large amount every month, just limit the number of schemes to 2-3 funds as these give sufficient diversification.

Note (Disclaimer) - As a SEBI RIA, I cannot comment on specific schemes/funds that are provided or asked for in the questions in the platform. And the views expressed above should not be considered professional investment advice or advertisement or otherwise. No specific product/service recommendations have been made and the answers here are for general educational purposes only. The readers are requested to take into consideration all the risk factors including their financial condition, suitability to risk-return profile and the like and take professional investment advice before investing.

Ans: Given your investment goals and time horizon, here's a suggested investment plan:

Retirement Corpus:

Allocate a significant portion of your SIP amount to large-cap, multi-cap, and diversified equity funds.
Large-cap funds offer stability, while multi-cap and diversified equity funds provide growth potential.
Gradually increase SIP amounts annually to keep pace with inflation and salary increments.
Child Education Corpus:

Diversify your SIPs across large-cap, multi-cap, balanced, and thematic funds.
Large-cap funds offer stability, while multi-cap and balanced funds provide growth potential with lower volatility.
Thematic funds can be considered for specific sectors or themes with growth potential, but exercise caution due to higher risk.
Combined SIP Allocation:

Allocate SIP investments based on your risk tolerance, investment horizon, and financial goals.
Balance the allocation between retirement and child education based on priority and time horizon.
Gradually increase SIP amounts annually to align with your financial goals and growing expenses.
Review and Monitoring:

Regularly review the performance of your SIP investments and adjust asset allocation if necessary.
Seek advice from a financial advisor to periodically assess your progress and make any required adjustments to stay on track with your goals.
By following a diversified investment approach and gradually increasing your SIP amounts over time, you can work towards building a substantial corpus for both your retirement and your child's education.