I have recently been paid a decent severance package as part of a worldwide layoff exercise. I am 41 and have another 17 years of service to go. Meanwhile, I would like to invest Rs10-13 lakh in such way that it is absolutely safe while also guaranteeing some returns. Is there an option other than bank fixed deposits for such an investment?
Other than debt-based financial instruments, there are no other investment options that could guarantee you some returns and are safe. Mutual funds and stock market investments are always subject to market risk and may thus affect the returns. You may consider government bonds and debt-based mutual funds for your investment needs.
I recently invested in HDFC Top 200 Fund, Birla Sun Life Frontline Equity Fund, DSP BR Top 100 Equity Fund and Reliance Diversified Power Sector Fund through systematic investment plans (SIPs). I’m investing for three-five years. What do you think of my current investment? I also want to invest in two more funds. Which funds should I opt for? I do not want to take high risk but I do have an appetite for average risk. Also, should I go for SIP or lump-sum investment in mutual funds? Is it the right time to invest in infrastructure funds?
Your present investment looks good and is likely to yield you decent returns. If you need to add more schemes then I would prefer SBI Magnum Contra Fund—G and Sundaram BNP Paribas Select Midcap funds in the current scenario. Since you have already invested in schemes that have their major investment in frontline stocks, it would be better to diversify your portfolio. Regarding investment in infrastructure funds, it would be a good idea to consider Tata Infrastructure Fund or the Reliance Infrastructure Fund.
About investment mode, I always prefer SIPs as they distribute your risk of investment. And since your investment horizon is long, it would make sense to go for SIPs.
I have no knowledge of the markets nor invested in them. I want to invest in SIPs of Rs1,000 per month for two years. Which fund should I invest in?
Chandan Kumar Singh
You may start an SIP in DSP BR Top 100 Equity Reg-G Fund for two years. I hope this fund might give you decent returns with lesser risk.
Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.