BackI need ₹50 lakh for my daughter's wedding in 7 years. How do I invest in MFs?
It is advisable to create a portfolio through SIP investment in the Large & Mid Cap, Flexi Cap, Mid Cap and Value category of equities.
PremiumI am a 49-year-old doctor presently doing private practice. I have an adequate investment in PPF, FD, and NPS. I wish to invest in mutual funds for the next 7 years to generate a corpus of 50 lakhs for my daughter's marriage through the SIP route. Kindly advise me of mutual funds and the SIP amount to be invested on a monthly basis to achieve this corpus amount.
-Kumar Nigam
To create a corpus of Rs. 50 lakhs, you need to invest ₹40,000 per month through SIP over the next 7 years assuming 12% CAGR returns on the investment. It is observed that the equity delivers superior return over a longer time horizon. Hence, it is advisable to create a portfolio through SIP investment in the Large & Mid Cap, Flexi Cap, Mid Cap and Value category of equities. You can think of dividing the SIP amount equally among Axis Growth Opportunity Fund, HDFC Large & Mid Cap Fund, UTI Flexi Cap Fund, Parag Parikh Flexi Cap Fund, Kotak Emerging Equity Fund, Nippon India Growth Fund and IDFC Sterling Value Fund. This way your portfolio will be diversified across the category, geography and AMCs. It is advisable to review the portfolio atleast once in a year.
I am 46 years old and I recently sold a property for ₹12 lakh. Now, I want to invest this money in a way to get monthly income. Where should I invest?
-Ramesh
In our opinion, the most suited investment avenues for you to receive the regular income along with capital preservation are RBI floating rate bonds and highest rated corporate FDs i.e. Bajaj Finance and Mahindra & Mahindra Financial services. The interest rate being offered on RBI Bonds is 7.15% whereas the highest rated Corporate FDs for 3–5-years tenure offers interest rate in the range of 6.4-6.5%. You can think of equally dividing the corpus between these two avenues.
Sanjiv Bajaj, Joint Chairman and MD, Bajaj Capital. Queries and views at mintmoney@livemint.com
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