Thanks for your blog.
My goal is after 12 years. In both the options I would not redeem money before 12 years.
I have 2 options,
Start SIP at ₹15k for next 12 years
Total amount invested would be ₹21 lakh in next 12 years.
OPTION 2 :
Start SIP at ₹35 k for next 5 years.
After then I may /may not be able to continue SIP .
In that case, I may have to stop SIP but keep invested upto goal period which is 12 years .
Total amount invested would be ₹21 lakh in next 5 years.
My queries are:
1)In both the options ,amount invested is the same, be it for 5 years period or 12 years period.
So,what would you suggest if one has money ,just invest it but keep invested upto goal period ,
Continue SIP through out upto goal period ?
If one has to invest ₹12500/month,₹1.5 lakh /year for tax relief,
How many maximum ELSS funds should be choosen ?
I have choosen 3 ELSS funds, and portfolio overlap between those is 15 %.
Or should we stict to maximum 2 ELSS funds only ?
If you are capable of investing more then investing Rs.35,000 for 5 years is best as it gives more compounding opportunity for your money rather than the other option. As per me, I might have selected a single ELSS to keep my portfolio simple.
Thanks for your reply.
1)Would you suggest investing in a single ELSS fund even if SIP in ELSS is at ₹12500 /month ?
Just out of curiosity ,I am asking as I am not an expert in this field,
If one has choosen 3 ELSS funds seeing that they are not overlapping more than 20 % , if one ELSS fund not performing well in comparison to best of category,then other two ELSS funds would compensate for it,and if 2 ELSS funds not performing well in comparison to best of category ,then 3 rd ELSS fund would compensate for it
1)What is your opinion regarding this ?
2)If you have to choose one ELSS fund among these 3,Which fund would you have choosen ,
A)birla sun life tax relief ’96 fund
B)DSP black rock tax saver fund
C)Motilal Oswal long term equity fund
3)What is your view especially about Motilal Oswal long term equity fund ,giving attractive return but is a new fund so should we avoid it if time horizon is 12 years ?
- Diversifying in different asset classes is major thing like debt and equity rather than diversifying in 100 funds within same asset. How can you assume that one or two funds underperform then others can compensate you?
Many funds now giving an attractive return. But you have to check it the downside protection like how they protect when the market start to fall.
Thanks for reply.
Do you want to say there is no extra advantage of keeping 3 ELSS funds in portfolio ,rather keep it a single ELSS fund even if SIP at ₹12500 but choose fund who has performed well consistently ,has good track record even in bear market rather than be greedy for recently launched fund giving attractive return, or adding more ELSS funds ?
Even such a single fund would work .
Thanks for reply.
Do you say a single ELSS fund is enough even if SIP at ₹12500 rather than choosing 2-3 ELSS funds
, Instead choose 1 ELSS fund which has performed well even in bear market, and has long track record rather than be greedy for recently launched giving attractive return fund,
Or adding more than 1 fund to get extra benefit ?
Even 1 fund would would work.
The fund you invest today WILL NEVER BE TOP RATED FUND FOREVER. You have to review once in a year. Along with that, check the underlying portfolio of the funds you are investing. If there is a higher degree of overlap, then no point in having many number of funds.