Hi, I want to know which SIP is good for next 5 years....? I can Invest monthly 1.5 Lakh's.

Ans: I have no idea about your age, future financial goals, your risk profile and your existing investments. So, while giving one suggested solution to you, I’m assuming that you’re young (less than 40 years of age), are open to equity investing, have a long term horizon of at least 7 years or more and would have the nerves to not get unduly perturbed if markets go temporarily down.

Very first point to note is that when you write that you’re investing for 20 years, please do imbibe it into your thinking too that you’re in it for a very long term. Typically, investors change their investing horizon as per the market conditions – if markets remain good, they’re long term players, if markets turn down, they start exiting in panic and become short term players. Please remember that markets will always give great returns only if you ‘spend time in the markets, rather than try timing the market’.

Since you’re just 37 years old, you have a huge age advantage (those younger have even more advantage!) – use it to your benefit. I have no idea about your other investments, your future financial goals and your risk profile (implying how much volatility are you comfortable with in the markets).

So, I’m just giving you a high-equity portfolio which is a long term portfolio but needs to be reviewed and maybe rebalanced every year. I’m also assuming that you have no other funds or equity.
The portfolio that I would suggest is:-
1. Large Cap - 20% of SIP amount - HDFC Index Fund
2. Flexicap – 20% - Parag Parikh Flexicap Fund
3. Midcap – 20% - Kotak Emerging Equity Fund
4. Aggressive Hybrid – 20% - Canara Robeco Equity Hybrid Fund
5. Small Cap – 20% - SBI Small Cap Fund

In the above portfolio, the last, Small Cap category, will be very volatile and you will need to get used to it. If you’re not up to its gyrations, stick to first four with 25% allocation each.

Ans: The details of how much you already have in equity and debt allocation are not provided. But assuming that you are investing in equity funds for a minimum period of 5 years and probably longer, you can do a monthly SIP of chosen Rs 10,000 amount into Largecap Index Funds or Flexicap Funds. Even one fund is sufficient though if you want, you can invest Rs 5000 each in one scheme from both fund categories.

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: Investing regularly is a commendable habit, and you're doing great dedicating 10,000 Rs every month. As a Certified Financial Planner, I understand the importance of choosing the right investment avenue.

Mutual Funds through Systematic Investment Plans (SIPs) can be a wise choice. They offer diversification, professional management, and the flexibility to invest small amounts regularly. Additionally, they suit investors aiming for long-term wealth creation.

When it comes to SIPs, it's crucial to consider your risk appetite, investment goals, and time horizon. Opting for actively managed funds can be advantageous. Unlike index funds, actively managed funds have the potential to outperform the market, thanks to skilled fund managers who actively select investments.

Moreover, investing through a Certified Financial Planner can offer personalized advice and ongoing support. They can assist in selecting suitable funds, monitoring your portfolio, and making necessary adjustments based on market conditions and your changing financial circumstances.

While direct funds may seem appealing due to lower expense ratios, they lack the guidance and expertise provided by financial professionals. Regular funds, accessed through a Mutual Fund Distributor with a CFP credential, offer personalized service and assistance, ensuring your investments align with your financial goals.

Remember, investing is a journey, and it's essential to stay committed and patient, especially during market fluctuations. Regular review of your portfolio and making adjustments as needed can help you stay on track towards achieving your financial objectives.

Keep up the excellent work with your monthly investments, and may your financial journey be filled with success and prosperity.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: To build Rs 15 lakh in 5 years, invest Rs 18,000–20,000/month in a mix of large-cap, flexi-cap, and mid-cap mutual funds. For personalized fund selection and strategy, consult a Certified Financial Planner (CFP) & Mutual Fund Distributor (MFD) like us.

Contact us:

K. Ramalingam, MBA, CFP
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment