BackLong-term return expectations from equity should be realistic
At the time of planning your investment for any objectives, it is suggested to keep return expectations a bit conservative or realistic as equities may not be able to consistently give 15-20% return every year
PremiumI would like to know which fund houses scheme should I invest in as per below details:
One time Investment in debt / any other Instrument - 18 Lakh (Invest via STP Route - 40,000 to 50,000 monthly as per below shared Caps)
Risk Appetite - Moderated
Expected CAGR - 12% to 20% for the given time horizon
Large Cap - 5 + Yrs STP around 10,000 to 12,000 monthly
Multi Cap / Hybrid Fund - 5 + STP around 10,000 to 15,000 Monthly
Mid Cap - 3 Yrs - STP around 5,000 to 8,000 monthly
Small Cap - 2 Yrs - STP around 5,000 to 8,000 monthly
Please advise the funds or proper allocations.
- S.R.
It is always good to diversify your investment, from your query it is clear that you plan to do the same. Before going to the funds where you can invest lumpsum and STPs, few important points related to investing that may help you in future as well. Ideally, over the long term, you can expect equities to earn around 12% from your investment. Hence, at the time of planning your investment for any objectives, it is suggested to keep return expectations a bit conservative or realistic as equities may not be able to consistently give 15-20% return every year. At the same time, it is better to invest across different fund houses to diversify the risk, you may like to restrict the investment allocation in a fund to around 15% at the time of investment. You may consider investing in the following funds to diversify across different funds and fund houses:
-UTI Nifty Index Fund – Rs.10,000
-Mirae Asset Large Cap Fund – Rs.8,000
-Parag Parikh Flexi Cap Fund – Rs.9,000
-Canara Robeco Emerging Equities Fund – Rs.9,000
-DSP Midcap Fund – Rs.8,000
-Kotak Smallcap Fund – Rs.6000
-Investing through STPs in equity is a good way to invest regularly as you also get the benefit of investing in debt at the same time. You can invest lumpsum in Ultra Short Duration or Liquid Funds of the above AMCs and then set up STP into the above-suggested equity funds.
- Answer by Harshad Chetanwala, founder MyWealthGrowth.com
(Have personal finance queries? Email us at mintmoney@livemint.com)
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