Hello Basu Sir, I’ve been reading your blog and I’ve some queries which you can address. 1.) I’m 25 years young curently working with Bank of India and my goal is to earn 1.25-1.5 crore in next 15 years. I’ve just started investing in MFs and my target period is 15 years. Just like you i’m also a long term investor and as you advised in your articles I’ve selected these funds( all these funds are direct sip and growth based) :-
1) Mirae Bluechip ( Large Cap) (started with 5k)
2) L&T Emerging Business (Mid Cap) ( strted with 5k)
3) Franklin India smaller companies ( Small cap) (started with 5k)
4) Aditya Birla Tax96 ( ELSS) ( started with 1k)
5)BOIAXA Tax Advantage Fund (ELSS) ( started with 2k)
Right now I can invest 20k monthly. so I need your kind advice in what ratio should i allocate my 20k among these mutual funds to achieve my goal. I’ve already invested around 1.5 lakh in tax saving FD with 7.25 % return with 5 year lock-in period. To be frank I’m no longer interested in investing more in debt instruments for time being. Should i increase my sip investment every year because as salary increases so do I need to increase my share and by what percent like 5 or 10% or this much amount will be fine ? 2.) When my 3 year lockin period of ELSS expires, what should I do ? Continue with those same ELSS for next remaining target year or should i redeem those ELSS and invest all the money in some new ELSS or any fund giving good returns at that time. 3.) Thanks for your insurance articles. Earlier I was planning to buy LIC Jeevan Anand Plan for sum insured worth 50 lpa for both the insurance and investment purposes. But when I came across your article and realised that the LIC offers meagre 6-6.5 % return, I’ve dropped the idea. Now I’m going with term insurance worth 50 lakh till the age of 60 from maxhealth. 4.) I want your expert advice on Thematic investing. I was unable to find any article on your blog on it. Currently Fyers is offering thematic investing claiming they offer much better returns than Mutual funds. I’m an aggressive investor but have zero knowledge on this new concept. I’ve been buying shares also with short to medium term goal (max 3 years). Can you offer any insight on Thematic investment. From what I’ve read on the net is that it’s very risky. Whether I should try investing small amount there or not?
- It is purely our decision to increase or decrease the investment. But if you are capable of investing more, then try to invest now.
- You have to review the funds once in a year. Based on the fund performance you have to take the call.
- Go with term life insurance period of up to your retirement.
- I am not a fan of any theme based investment. Hence, I can’t guide you on this aspect.
1.) Thanks just one more query right now I can invest 20k monthly so in what ratio should i split my 20k among these 5 funds ? 4k equally among 5 funds or in what ratio.