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Mutual fund

jayesh (accountant) (361 Points)

03 October 2011

Dear Sir,

My monthly INcome is 12000/- and i ready to invest in MUtual fund per month rs.1000 to 1500 but no any idea to which mutual fund better for my investment so pls advice

thnks & regards

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5 Replies

Vishal Agarwal (CA Final Student) (31 Points)
Replied 03 October 2011

you can find out on moneycontrol.com

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CA VISHAL RANA,CS,B.Com,AMFI (Chartered Accountant in Whole Time Practice) (4354 Points)
Replied 14 October 2011

Jayesh you should take Systmetic Investment Plan(SIP) as monthly installments....it give u proper return as well as less risky

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 22 October 2011

If you are planning to invest your money in equity funds, there are plenty of options in front of you. Broadly the equity funds can be categorized into index funds, diversified funds and sectoral or thematic funds.

Your friend could have told you index funds are safe and cost effective. Your colleague could have told you, infrastructure is going to be the next big theme. So invest in infra funds. As an investor you are confused with the information overload and would like to choose the right type of fund for you. I will unveil this to you today.

https://holisticinvestment.in/diversified-vs-index-fund

When committing mutual funds SIP you need to take into account a few things. One of the most important is to decide on committing SIP for short term or long-term.

You may find the answer in the below link.

https://holisticinvestment.in/mutualfund-sip

Regards,

Ramalingam K, MBA, CFP,

Chief Financial Planner,

Holistic Investment planner private Limited,

Www.holisticinvestment.in

Rakesh Solanki (NA) (28 Points)
Replied 25 October 2011

If you want go for a monthly investment plan then I would suggest you to go for SIP. SIP or Systematic Investment Plan involves making fixed payments monthly over a particular period of time and eliminates the need for having a huge initial capital. SIPs are the best way to invest in mutual funds as they would spread your investments over a long time and protect you from the daily volatility/fluctuations in the market. You can invest directly into SIPs of your choice, but a stock broker can help you find the right SIP scheme that will meet your financial goals. I would suggest going through a reputed stock broker if you are new to mutual funds investment.

Ramalingam K (Founder & Director - Holistic Investment Planners (P) Limited) (21077 Points)
Replied 11 November 2011

In the addtion to what said you may check following points before choosing an Investment broker or on line platform.

A Checklist on Selecting the Investment Broker/Agent/Executor

Investment broker need to provide you a consolidated report periodically. He should be able to give you different type of reports like absolute return report, annualized return report, profit/loss report, dividend report, transaction report, Investment Summary report. You may need detailed report at times and you need a summarized report at times. You may want to check the total dividend received for a particular period by requesting a dividend report. Your auditor may request a report for the total investments made during the year. Before engaging him, ask for these kinds of different types of dummy/sample reports.
The broker need to send you a capital gain report comprising both short term and long term capital gains. You may need this during the advance tax payment time and at the time of filing the income tax returns.
If the broker provides an online access to your investment portfolio, then you should have provision in your online access to generate these reports.
All these services, the broker need to provide you without any cost as he is getting paid by the mutual fund companies in the form of commission. Also, we are looking from him, only transaction facilitation not investment advice.
Some brokers seek for power of attorney from their clients for easy transaction facilitation. You could have read about the Big Names in the financial services industry have created problems for their customers with this power of attorney. So avoiding power of attorney and having the control on your side, keeps you on the safer side.
If you are engaging an investment executor having a wide network such as banks, you need to know your Relationship manager will be changed frequently. So it is better to know at least 3 persons from your broker firm. Interact with them at least once in a quarter.
Income tax Scrutiny: income tax dept at times may ask you about the details/sources for some investments. You could have made an investment 6 year back and withdrawn the same 3 years back and reinvested the redemption proceeds in another scheme. Your broker must be able to give you this past history even after 6 years. He should maintain records even for the closed investments. This is something which is very important for a HNI client.

Regards,

Ramalingam K, MBA,CFP

Chief Financial Planner,

HOLISTIC INVESTMENT PLANNER PRIVATE LIMITED.

www.holisticinvestment.in