Is it a right time to invest in bulk in Mutual Funds ?

I am an Army Officer. I am investing on behalf of my mother who is recently widowed in order to secure her future and augment her income as well as ensure good returns to increase the corpus for my daughter's future. Please advise. My corpus is Rs 20 lakhs. thank You. M Ghosh

 

Ghosh ji,

Please accept my sincere condolences on your loss. May God give your mother the strength needed to get through this.

The markets are terrible now and will worsen before stabilising.

I wouldn't recommend going with mutual funds for your mother. You could consider some fixed income - bonds, liquid funds and annuity plans.

For your daughter's future, you can certainly look at equity funds. And if you're comfortable, you'll get a lot of bluechip stocks to look at from a long term perspective.

Do consider the taxation and any schemes available for senior citizens. Consulting a professional financial planner would be a good start.

 

What do you recommend by which I could beat inflation ? Bank FDs are not helpful.

 

Savings rates will only go down. You could consider the bond issues by various govt bodies for a secured and fixed income. Equity linked funds will be good to go with for participating in growth. But they won't perform unless the economy and markets revive. A liquid fund would be good in current markets.

I don't say a buy or sell normally, but I'll bet my money on SBI now. The downside is limited. You can also look at Infosys. This, only if you'd like to take the direct equity route.

 

BB,
Mr. Ghosh has no experience of the Stock Market. He is a army officer (on duty i presume). So he may not get enough time to study the Stock Market. Further, he wants to invest his mother's money.

In these circumstances, it would not be proper for him to enter the share market with his mother's money.

I think, he should take the Mutual Fund route. Since the markets are down at present, he can invest in good quality mutual fund schemes at low NAV. Multi Cap Funds and Large Cap Funds preferably. A small investment in Midcap Funds and Small Cap funds. Since the corpus is large, he will also have to invest in Equity Linked Saving Schemes to save tax.

If his mother is senior citizen, he can also consider the Senior Citizen schemes.

 

BB,
In an interview to ETNOW, Dhirendra Kumar, CEO Value Research, has recoomended a few Mutual Fund Schemes, which he feels are likely to perform in 2016.

MULTI CAP FUNDS
Mirae Asset India Opportunities
Franklin India Prima Plus
ICICI Prudential Value Discovery

LARGE CAP FUNDS
Kotak 50
ICICI Prudential Focussed Bluechip
Religare Invesco Business Leaders

MIDCAP
BNP Paribas Midcap
Mirae Asset Emerging Bluechip
HDFC Midcap Opportunities

BALANCED FUNDS
ICICI PruBalanced Adantage
Tata Balanced
Franklin India Balanced

TAX SAVING
Birla Sunlife Tax Plan
Reliance Tax Plan
Axis Longterm Equity
Franklin India TaxShield

Would you recommend any of these schemes to Mr. Ghosh. Your views please.

 

i'd rather not say anything because we take the direct equity route and the only MF we had was Morgan Stanley Growth Fund (the 90's) and the famous US-64 scheme and i grew up with exposure to equities but yes, Dhirendra Kumar & Value Research are a good name in MF advisory

but for the 2nd purpose stated by Mr Ghosh - corpus for daughter's future - i'll stick my neck out and say if he is comfortable with direct equity exposure - there will be a problem of plenty in the markets

Sovereign Gold Bond Scheme 2016 Jan 18, 2016 to Jan 22, 2016

 

100% Agreed. SIP is BEST Way to invest.

100% Agreed. Mutual fund route is BEST route. Even other investors should avoid direct stocks. Diversified MF portfolio is safest way to invest.

Dhirendra Kumar is leading expert with sensible view and conservative. IMHO Mirae Asset Emerging Bluechip is best in midcap space. Franklin India Prima Plus is also very good option for investment.

 

Do you expect Gold to rally in the future? The returns on "Soverign Gold Bond Scheme" are linked to gold prices. So if gold performs SGBS will give good returns.

Secondly, remember that he wants to invest his mother's money and not his own earned money. So safety also is important. You can take high risk with your own earned money but if are required to invest some other person's money (somebody close to you), you have limitations.

 

Sroutaji, you are advising "Even other investors should avoid direct stocks. Diversified MF portfolio is safest way to invest.". Strange. Surprising. For Mr. Ghosh or investors who do not have any experience of the share market, this advice is 100% correct. First use the MF route, make some money, gain some confidence and then enter the stock market slowly (offcourse after studying the market).

 

when the next QE begins, the cycle starts again - easy money, everything goes up, gold could be a good bet, i only put it up because a little portion in Sovereign Gold Bond (underlying asset is gold & sovereign guarantee - you can debate it) could be considered giving our obsession with gold as a nation

 

My view is SIP is better because all world economy is not settled ,
CHINA Problem , Europe Problem Greece and other European countries problems ....

for medium to long term SIP is better with 4-5 fund schemes only
some aggressive growth and some Moderate and some liquid funds is better

 

It is an excellent time to invest. But please invest with a 5-15 year horizon and not less. You can also get some useful advice on www.faujifinance.in

 

Mr. Ghosh has not commented on the comments posted in the thread created by him. He should post his likes or dislikes on these comments. He should also post his experiences in investing.

 

i am not an expert, but i will say go with best mutual funds . hdfc has started a new plan -retirement savings fund that may be good for your daughters future finance needs.
Dont invest money in lumpsum. invest in atleast 5 parts and also in 4 funds.that will reduce risk.mothers needs can be met by investing in liquid funds. some exposure 20% to direct equity will be ok.
make sure you buy best companies like aditya birla fashion, TCi , DCB but only for long term - 10 years.
all the best

 

My 10 cents ....
No expertise ... No time to track ... so Direct Equity out of Question ...

For Mother : Balanced Equity Fund with the option to switch % allocation between Aggressive and Conservative mode. ( Switch Aggressive when market is depressed like now and Conservative when market Euphoria )

For Daughter : SIP on Four performing MFs - Blue chip, Mid Cap, Debt Speciality & Hybrid

 

Hi M Ghosh,i am Vinay Sawant from Mintwalk, Mutual Fund SIP is good way for long term returns. we have our App called as Mintwalk on Android and IOS ,we have website too,we provide way for people to invest into their dreams or mutual funds,You dont have to worry about WHERE WHEN HOW to invest,everything is taken care of depending on your tax bracket and risk attitude, and we have zero brokerage, Reach me on
vinay.sawant@mintwalk.com, contact no 9769711499
Ms Rashmi Nandanvar contact no 9892319650

 

Hello Mr Gosh. My sincere condolence for your loss.

I understand that you want to invest the money in order to fight inflation. However, I won't suggest you to go for lump-sum investment (one big investment). Systematic investment plan (SIP) will be better option right now as this will distribute the market risks and uncertainities. Moreover, this will ensure that you will enough cash, in case you get better market opportunites in future.

I hope this is useful.

 

I am engineering professional , i am a beginner in the mutual fund( lump sum/sip), i have set some goal to get achieved in three years and as calculation of Rs. 40000/month to invest in SIP.
Suggest me the correct portfolio to achieve the goal.

 

Scripbox.com !!!!!!!?