Hi , I have 2 Lakh as lump sum amount , i do not wish to put lump sum in MF as it has more risk so i am thinking to invest the same in SIP. this amount i want to invest as 3000 per month SIP in MF. which two funds i should choose for good returns and lesser risk. I already have 2 Elss funds (AXIS Long term & ABSL 96) . AXIS is doing good but not ABSL.
please suggest what can be better way to invest this 2 Lakh. i would like to use this money for my daughter after 10-20 yrs.
Who told that SIPs are RISK FREE? Why you arrived that 2 funds are required?
I feel i need to put more effort to analyse the mark for lump sum investment as i need to be sure i invest my lump sum at low NAV. In SIP i can still have option to stop SIP if fund not performing well. Understand both has risk but in SIP we have some control over money what we can spend.
two different kind fund covering different kind of sector will help in a way that it is least possible that all market go down as same point at least one SIP will give me return if another cant.
that is what my understating. I would like to have your opinion on how should i ideally spend money ?
In Lump sum i need to analyze the market and make sure that i invest money at low NAV and there are chance that NAV can go up in long term. I put my all money at one time at one particular NAV however in SIP i still have some control where if fund is not performing well i can stop SIP and invest in another plan. understand both has risk but in SIP i can still have some control over money which is still with me.
two fund covering different segment of market will help in a way that at least i can assume that not all sector will go down for long period at least one fund will give me returns.
may be my assessment is wrong so i would like to have your opinion on it? how should ideally i should invest to have good return and min. risk like investing in balanced fund?
For your information, market will not differentiate between your lump sum or SIP. Once your money grow, then it treats the same way like the money you accumulated or through lump sum. Hence, what matters is the ASSET ALLOCATION based on your time horizon.
Fist identify the time horizon of the goal. Do the asset allocation accordingly and jump into invest. However, for debt you can go with lump sum. For equity, you can spread this for 3-4 months to invest manually.
thanks, My goal is 1 lakh for 15 yrs and 1 lakh for 20 years. actually i am least interested in manual investment.
If your goals are more than 10+ (15 and 20 years) and also if you did proper asset allocation then why to worry about the current MARKET trend? SIP is the trick used by SELLERS. Rest left with you to decide.