Magic of Mutual Fund SIP

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

Page 1 of 101
Financial Planning
Home
About
Media
Old-Articles
Free E-Course
Services
Submit Query
Investing is not a Number Game,

it is a "MIND GAME"
Download this FREE ebook & be a successful investor.
Name: Email:
Your name...
Your email address...
Download Now
Magic of Mutual Fund Systematic Investment
27
tweets
shares
tweet
http://www.tflguide.com/2011/02/systematic-investment-plan-mutual-fund-sip-best.html
Share
2/5/2012
Page 2 of 101
Plan (SIP)
IDFC Infra Bonds
Get tax deduction upto Rs. 20000. Issue
closes by 25th Feb. Apply now
www.idfcinfrabonds.com
Systematic Investment Plan in Mutual Fund is commonly named SIP is really getting popular in India. Systematic
Investment Plan is such a beautiful tool, which if used properly can help you to achieve all your financial goals. Some
time back we wrote Do you really understand Systematic Investment Plan which is one of the most popular article of
TFL, but readers requested that they want to read more about basics of Mutual Fund SIP. So here it is..
This Article will cover
Magic of SIP
What is Systematic Investment Plan (SIP)
Advantage & Benefit of Systematic Investment Plan
Best Systematic Investment Plan in India
Systematic Investment Plan Presentation with Facts & Figures
SIP Presentation with Examples & Analogies (I like this one )
Systematic Investment Plan (SIP) Calculator Must Use
2/5/2012
Page 3 of 101
What is Systematic Investment Plan?

We all have various financial obligations. Some of them like daily needs, school fees, etc involve the major outgo of
your cash. Others like trip for your family or buying a fancy gizmo entails a one time payments for which money can
be relatively easily collected. But for long term goals like retirement or purchasing a home require you to save and
invest for many years. Yet irrespective of the amount involved and the time horizon, planning and investing money
systematically and regularly enables you to sail through these obligations. A SIP could prove to be a simple and
effective solution toward achieving these goals.
A SIP is a method of investing in mutual funds, by investing a fixed sum at a regular frequency, to buy units of a
mutual fund schemes. It is quite similar to a recurring deposit of a bank or post office. For the convenience, an investor
could start a SIP with as low as Rs 500; however this amount may differ from one fund house to other.
Benefits of Systematic Investment Plan

1)
What is your equation to investments:
EARN->SPEND->SAVE OR EARN->SAVE->SPEND
The first is a wrong way of investing. You should be saving in a disciplined manner and SIP enables you to follow the
second, which is the correct equation of investments.
2) Power of compounding: SIP make sure that you are not only benefited on your investment but you also get
returns over the interest which in overall will result generating greater returns.
3) Easy, Flexibility and Liquidity: SIP is easy to start, manage and stop. It gives you flexibility to choose a desired
scheme or to with draw in parts. And with conditions you have the money for contingency and emergency use.
4) You can also do SIP in ELSS (Equity Linked Saving Scheme) to save tax under section 80 C.
To check complete list of benefits you must read this article Benefits of Investing Systematically.
Best Systematic Investment Plans in India

Mutual Fund
Scheme Name
Birla Sunlife
Equity Fund
DSP BR Equity
Fund
Franklin India
Blue Chip Fund
HDFC Equity
Fund
HDFC Top 200
3 Years
5 Years
10 Years
12 Years
Investment
Investment
Investment
36000
60000
120000
% Amount % Amount % Amount
26 51990
17 92033
29 570925
Investment
144000
% Amount
27 847695
30
55142
22
103852
32
656368
28
890730
28
54785
20
98935
29
549491
27
860441
39
61979
26
112626
34
721916
32
1142897
34
57909
24
109045
33
706670
2/5/2012
Fund
ICICI Prudential
Growth Fund
Reliance Growth
Fund
Reliance Vision
Fund
SBI Magnum
Global Fund
Sundaram Growth
Fund
Tata Pure Equity
Fund
Page 4 of 101
25
51186
16
90158
25
437115
22
616589
29
54014
21
100716
38
901404
35
1407815
25
51789
17
91941
33
677154
31
1078457
29
54249
16
88337
31
607379
26
793162
24
50576
15
88069
25
458342
22
617858
27
52625
19
95385
29
554004
25
727228
*Calculations are done on 1st day of 2011 Monthly Investment of Rs 1000

I will again say Best comes after postmortem report you should see them as Top Systematic Investment Plans in
Last 10 Years or just Systematic Investment Plan Comparison.
Calculations are done on Rs 1000 per month investment to keep things simple. If you would like to calculate for Rs
5000 or Rs 10000 you can multiply the amount by 5 or 10.
Systematic Investment Plan Presentation

If you like facts & figures check this SIP presentation by DSPBR Mutual Fund
Systematic investment plan
2/5/2012
Page 5 of 101
If you like stories & analogies check this presentation by TATA Mutual Fund
Mutual Fund Sip
2/5/2012
Page 6 of 101
You can Download Systematic Investment Presentation ppt

Wasnt that simple, and this is the reason we call SIP a SIMPLE INVESTMENT PLAN.
Systematic Investment Plan Calculator

Important Points:
1.
2.
3.
4.
Figures are in Dollar($) but you can treat them in Rupees.

In Compounding Keep it Annually
Notice in last years how fast your assets grow.
Try 2 things to check impact of Power of Compounding:
Take interest 5%(Insurance Endowment Plans), 8%(your debt investments) & 12-15%(Diversified Equity Mutual
Funds)
Take 15 Years & 30 years
Simple Savings Calculator
2/5/2012
Page 7 of 101
Starting balance($):
Monthly Deposit ($):
Interest rate (%):
Compounded:
Monthly
Number of years:
Calculate
Determine how much savings from a deposit.
Was this article helpful?? If you have some query feel free to ask.
You might also like:
Child Future Plan

Complete Guide
Power of 12 in
2012
Bond & Debt Fund

Guide
How to make
money with Credit
Cards !
Short Movie:
Saving is not
enough, invest your
money
LinkWithin
44
51
NAV
Drive up your Net Asset Value. with us! Investing
Advice for Beginners.
www.Sharekhan.com
IDFC Infra Bonds

Get tax deduction upto Rs. 20000. Issue closes by
25th Feb. Apply now
www.idfcinfrabonds.com
Trading on Mobile
Trade on-the-go with Metatrader App Forex,
Commodities, Indices, CFDs.
www.4xp.com/Mobile
Bajaj Life Insurance

100% premium paid invested from 6th year, 98%
for the first 5 years
www.bajajallianz.com/life-insurance
2/5/2012
Page 8 of 101
Tagged as: Calculator, Mutual Fund, Presentation, SIP, Systematic Investment Plan
Subscribe for TFL Weekly Guide
Do you believe in - An apple a day keeps the doctor away?
Similarly, TFL Guide is your weekly apple, keeping you financially fit.
Subscribe now and get Basics of Financial Planning E-Course FREE.
Your name...
Subscribe
{ 319 comments read them below or add one }
1 Sanjay Jain February 7, 2011 at 12:25 PM

Hi Hemant
Very nice article & second presentation is awesome.
Reply
2 Hemant Beniwal February 8, 2011 at 10:02 AM

Thanks Sanjay Are you gaining something from TFL??
Reply
3 Ashish February 7, 2011 at 8:22 PM

Is there a reference where one can compare SIP returns (like you have showed)? Dont
remember seeing it in ValueResearch or other such sites.
Are top SIP going to be different than top fund in respective category?
Reply

Hi Ashish,
2/5/2012
Page 9 of 101
You will not find SIP Return Comparison in any of the research sites. You can find SIP
return for single fund for single period then you have to combine all of them. Its
actually time consuming.
I dont believe in best SIP, best Mutual fund list is just top performing SIPs of past.
(which does not guarantee they will outperform their pears in future)
Regarding your question yes top performing SIP can be different from top performing
mutual fund.
Reply
5 ashish October 22, 2011 at 7:56 PM

i m new to sip pl. guide me how to start
Reply
6 Gurdial February 8, 2011 at 11:12 AM

Excellent work Hemant. I was really put off by MF returns after going through
ValueResearch. Your article is really an eye opener as to how averaging through constant SIP
can give stellar returns.
Keep these gems coming.
Reply

Gurdial Thanks for complement.
Yes thats the reason SIP is so powerful investment tool.
Have you shared this article with your friends may be we can open few more eyes
before night
Reply
8 Munish February 8, 2011 at 1:30 PM
2/5/2012
Page 10 of 101
HI Hemant ,
Thanks for the article really a brief and wonderful presentation . I have a question? in SIP or
mutual fund the money compounded monthly , quarterly or annually? Like we get in our
banks. I dont have any idea on this.
Reply

Hi Munish,
Thanks for asking this superb question.
As far as I understand it is daily compounding but for calculation & comparison we take
yearly compounding.
Reply
10 paritosh February 8, 2011 at 4:23 PM

HI HEMANT
U R LIKE SACHIN TENDULKAR !
WHENEVR WE THINK THAT LAST ONE WAS YOUR BEST ARTICLE.
U COME UP WITH EVEN BETTER NEXT TIME.
KEEP IT UP N THANX FOR EDUCATING AND SAVING US.
I WILL LIKE TO ASK ONE QUESTION.
ENTRY TIME IN SIP DOES NOT MATTER BUT DOES EXIT TIME MATTERS?
SUPPOSE AFTER 3-4 YEARS IF MARKET IS ON HIGH AND WE ARE GETTING GOOD
RETURN SHOULD WE EXIT FROM THAT FUND,EVEN THOUGH WE DID NOT NEED
MONEY AND PUT THE MONEY IN BALANCE FUND?
JUST WANT YOUR EXPERT OPINION.
Reply
11 Hemant Beniwal February 9, 2011 at 1:49 PM

Hi Paritosh,
There is nothing called best be it particular mutual funds, my post or even my blog
someone always holds a better thing next door.
2/5/2012
Page 11 of 101
Exiting from your investment should depend on your financial planning & asset
allocation strategy. You can read about basics of asset allocation in the Behavioral
Finance Guide.
Reply
12 Smart Singh February 8, 2011 at 8:14 PM

Hemant,
Great article. However, Ill add a caveat. I have done extensive research on SIPs. And I
realized that buy more at less argument for Rupee-Cost Averaging doesnt hold any water.
A return comparison of RCA with Lumpsum would always tilt towards lumpsum in the long
run, on an average.
Equity markets return more than debt on an average. So the time you stay out of markets
(through RCA) drags the average performance down for RCA.
You could have a look at following links about dollar-cost averaging.
Links
The most important part about SIPs is the discipline they bring, and how they soothe the
nerves of a jittery investor.
Reply

Hi Adheesh,
When we are talking about SIP we are talking about people who are earning regularly &
they want to invest regularly we are not talking about people who are holding cash in
their savings account & then doing SIP.
Even in case of STP period should not be more than 1 year. Hope we are on same page.
Reply
14 Smart Singh February 9, 2011 at 2:32 PM

Yeah, we are on the same page; the page with title SIPs are great
But professionals should be aware of the fact that Rupee Cost Averaging is not the
2/5/2012
Page 12 of 101
best feature of SIPs.

Reply

Hi Adheesh,
Great you counted RCA as a feature And I dont believe in BEST. We are on
the same para.
Keep Sharing.
Reply
16 Jashanpreet Singh February 9, 2011 at 8:41 AM

Nice article..top job! Can you please advice which is the best SIP to invest according to
current markets condition?
Thanks
Reply

Hey Jashanpreet,
As such there is no best SIP according to current market situation.
You can choose on fund in large cap & other in mid cap from above list & start your SIP.
Reply
18 ANIL KUMAR KAPILA May 31, 2011 at 6:54 PM

Hi Hemant
If you include one and two years SIP returns also for the funds included in the list
you will find that many of these funds have given negative or very low returns.On
the other hand there are many other funds which have given better SIP returns in
2/5/2012
Page 13 of 101
the last one or two years.Will it not be better to junk some of these funds and opt
for better performing funds which are not in this list?
Reply
19 srinivsu February 9, 2011 at 9:50 AM

sir,
Happy for this good association.sir !In the abcence of entry load, low commissions to
mutualfunds agents, how to find a good one ?
thanks
Reply

Same here Srinivsu
How to find good SIP or good Advisor
Reply
21 Rayan Fernandes February 9, 2011 at 5:59 PM

Dear Hemanth,
Great article. Keep up tha good work.
Reply

Thanks Ryan,
I think its your first comment here keep sharing your views.
Reply
23 Nikhil Shah February 14, 2011 at 12:13 AM

2/5/2012
Page 14 of 101
Hi Hemant..
Good Article..Keep it up..
If you update Some Rolling chart In CAGR of HDFC TOP 200 Fund or Franklin Blue chip
Fund 1Yrs ; 3rd Yrs ; 5th Yrs ; 9th Yrs ; 10th Yrs ;13 Yrs and 15Yrs..
it will give you very clear picture of Fund How is perform in Downside or upward side..
Thanks
Nikhil Shah
Reply

Thanks Nikhil
I will definitely show rolling returns in some future article.
Reply
25 nandu February 14, 2011 at 11:48 AM

Hi Hemant..
I am very new to this area..
so want to know how to be a part of SIP
from whre i hve to start.
is it a monthly investment ????
Reply

Hi Nandu,
Good that you asked this question just adding few basic points. If you have any specific
query feel free to ask.
Steps to start a SIP
2/5/2012
Page 15 of 101
1) Define the date: different mutual fund companies give lot of options but the common
ones are 1st, 7th, 10th, 15th, and 20th of the month.
2) Ascertain your investment horizon and amount
3) Choose a scheme: shortcut is to consult a Financial Planner.
4) Fill in the SIP application form: there will be common application form and a SIP
Auto Debit form (in case you wish the amount gets deducted from your account) or SIP
registrations form (in case you bank or location is not servicing the auto debit facility
and you want to give post dated cheques).
5) Documents: with the above mentioned form you also need to attach a copy of your
KYC.
Reply
27 nandu February 14, 2011 at 12:16 PM

very much thnkss for ur advice .
Reply
28 S.SHIVASWAMY February 15, 2011 at 1:18 PM

Can anyone enlighten me on the methodology adopted for computing rate of return on SIP.
Rate of return on are mentioned as .5654% p.m.7% Debt Fund and as .8735% on 11% Equity
fund is mentioned in one of the FPSB workbook.
Reply

Hi Shivaswamy,
Can you share exactly what you have read in workbook.
Reply
30 hyderalis February 15, 2011 at 3:51 PM
2/5/2012
Page 16 of 101
Thanks Hemant,
New to your site & this investing field. Both the PPT are awesome. I was thinking of investing
my money but dont know where to go & find. I was reading economic times & found this
SIPs article which attracts me to think, so i was just surfing on net to find more of this &
finally found your site which is really helpful. My age is 23 & im very determine to invest in
mutual funds which is a perfect go-through to understand the market scenario. I also wrote an
email to ET to guide me into this sips. But from now onwards ill be heading to your site to get
all the basic info on stocks, mfs, etc.
Thanks.
Reply

Thanks Hyder for sharing your views. Just one advice dont look for direct stocks for
investments invest through mutual funds.(see I have saved your thousands of rupees if
you follow this)
Reply
32 hyderalis February 16, 2011 at 12:23 PM

Yes Hemant, Id like to know more about SIPs can you do a follow up article on
how? what? where? documents etc..need for opening SIPs account.
Reply

Sure give me some time. Also read one of my comments I have talked about
steps.
Reply
34 Mani February 16, 2011 at 1:29 PM

Hi Hemant,
2/5/2012
Page 17 of 101
The article was too good and all the more I liked was in the 2nd ppt, wherein youve said in
one of the examples that, despite student getting low marks in Geography, but due to her
consistent good marks in her previous tests, managed to round off well on an overall basis and
made to the next level.
Eventhough Ive learnt these so called minute things when I was in teens, but never
implemented it when we stepped into the real world.. Now, I regret more for not starting an
early SIPs..
Anyways, thanks once again for refreshing our memories and to showing us that lessons like
these once learned will def managed to hold us in a good stead thru out our life
Mani
PS: BTW, Im not receiving an Email alert of whatever new articles are being posted in this
website Is that possible for you to check whether my email is registered in your group list.
Thanks
Reply

Thanks Mani
I have checked you have just registered
Reply
36 arman February 21, 2011 at 7:51 PM

My age is 27 years. I have a surplus of Rs. 1.5 Lacs & would like to make my first entry into
Stock Market through Mutual Fund SIP of say Rs. 5000/-. Since presently the money is lying
in Savings A/C earning 3.5%, whats the way ahead? How about STP? But I dont have any
knowledge how STP works & whether its advisableKindly suggest the best parking option
from where I can deposit into Mutual Fund SIP. Thanks.
Reply

Hi Arman,
2/5/2012
Page 18 of 101
STP is similar to SIP with just one difference in case of SIP amount moves out of your
bank & in case of STP its first parked in a debt fund & then transferred to equity fund.
You can choose funds from the list in article.
Reply
38 arman February 23, 2011 at 7:10 AM

Thanks for the Heads Up. I would like to know a few more things
1. Whether I have to invest in the same fund house for STP to work, &
2. Whats the tax treatment of any gains from such Debt Fund at the time of
transfer to SIP?
3. Are Debt Funds & Liquid Funds the same? Actually I know they are notWhich
would be a better option in my case?
Thanks.
Reply

Hi Arman,
Find my inline Reply:
1. Whether I have to invest in the same fund house for STP to work, &
> Yes
2. Whats the tax treatment of any gains from such Debt Fund at the time of
transfer to SIP?
> You can opt for dividend reinvestment option in any Liquid Plus or Ultra
Short Term Fund
3. Are Debt Funds & Liquid Funds the same? Actually I know they are not
Which would be a better option in my case?
> Liquid Funds are part of Debt Fund you can choose funds from Liquid
Plus or Ultra Short Term Fund
Reply
40 arman February 25, 2011 at 7:40 AM
2/5/2012
Page 19 of 101
Thanks for all the enlightenment. One more query regarding SIP &
LTCG, actually need confirmation:
I know in case of ELSS, 3 year Lock-in is for each SIP/Installment. Is it
the same way for calculating 1 year period for LTCG. If you can explain
with an example, it would be great. Actually I want to know how LTCG
is calculated in case of a Mutual Fund SIP.
Thanks.
Reply

Hi Arman,
Yes it works this way what actually you are thinking.
First in first out(FIFO)
Ex if you have invested Rs 1000 & got some units 1st jan 2011(25
units) & 1st feb 2011(20 units)
on 15th Jan 2012 you sell all units:
LTCG will be applied on 25 Units(completed 1 year) Taxfree
STCG will be applied in 20 Units(less than 1 year) 15% tax on gains
if any
Reply
42 arman February 25, 2011 at 5:58 PM

Thanks a lot for the example. Great Man!
Reply
43 Sukhpal Singh February 23, 2011 at 8:31 PM

I wish to start a SIP of Rs 2000 PM for a period of 3-5 years. Please advise me the best equity
funds or others.
Reply

2/5/2012
Page 20 of 101
Hi Sukhpal,
Best fund is just illusion you can select any 2 fund from the list mentioned in the article.
(Have one large & one mid cap)
Reply
45 Ronak Shah March 1, 2011 at 12:58 PM

Hello Mr. Hemant
it is really great to get such collective and meaningfull info regarding MF SIP here. sir my age
is 26 and i want to invest 10000RS per month through SIP. please suggest some good alotment
with best schems.
Regards
Ronak Shah
Reply
46 Hemant Beniwal March 1, 2011 at 11:31 PM

Hi Raunak,
You can choose any 4 funds from the list 2 large cap & 2 mid cap.
Reply
47 vikas March 1, 2011 at 8:48 PM

hii am a small investor.iwant to invest in SIP.which sip will best to me if i invest rs 1000
every month for 10 years.plz mention why this plan is best for me.
Reply

Hi Vikas,
Best fund is just a post mortem report you can choose any 2 funds from the above list.
2/5/2012
Page 21 of 101
Reply
49 Pankaj Malhan March 2, 2011 at 12:06 PM

Dear Hemant,
I have invested a good amount in four equity funds in the last 4 years by SIP.I do not have any
more money to invest at this stage. How you think I can take advantage of market volatility in
the future, as once I have exhausted all my funds, I do not have SIP to take advantage of the
future market declines.
In other words, what should be the strategy after the SIP is stopped, should I just stay
invested, or can I some how gain some extra returns.
I have invested in all four balanced funds so asset allocation is already being done by the fund
manager to keep 65: 35 ratio all the time.
Reply

Hi Pankaj,
Hold it inactivity is the friend of long term investor.
Reply
51 Rahul March 5, 2011 at 2:48 PM

I am also a new person having idea to invest in Share Market. I found good discussion on SIP
plans, thanks to all of you.
Can anybody suggest me current SIP plan to invest for 5 to 7 years.
Once I could get any new & concrete information about SIP plan, will definately share.
Reply

Hi Rahul,
As you dont have any idea about SIPs my suggestion is start with 1-2 funds.(small amt)
2/5/2012
Page 22 of 101
Keep learning & at some later stage make a proper portfolio linked to your goals.
Reply
53 vishal jaiswal March 17, 2011 at 12:27 PM

Hi Hemant
Great man.. Thanks so much I was going to invest Samridhi Plus(LIC), but as per your
article, It is worth Thanks.. Thanks .. Thanks
Currently I have SIPs of
Reliance Tax saver Growth -1000 pm,
SBI Magnum -500 pm,
HDFC Tax Saver Growth- 1000 PM
DSW -1000 PM,
DSP BR- 1000 pm,
Canara Bank 1000 PM
can you please advise , if they all are good or I have to swich from any of these.
Thanks
Vishal
Reply

Hi Vishal,
You have just mentioned names of AMCs & not funds.
Reply
55 SWAMY April 11, 2011 at 12:32 PM

Dear Hemanth Sir,
Today only i visited this great informative site for investors. All articles are very informative
and excellent. Thanks for your valuable analysis and information.
I am 33 years old. I can invest monthly 5000, can you please suggest best investment options
2/5/2012
Page 23 of 101
based on my age. I dont know how to invest in SIPs. Please guide me.
Thanking you in advance.
Swamy.K
Reply
56 Hemant Beniwal April 11, 2011 at 9:59 PM

Hi Swamy,
You can start with HDFC Top 200 & DSP BR Equity once you learn basics than start
some serious investments.
Reply
57 Sisir April 11, 2011 at 11:39 PM

Hi,
Thanks a lot for the valuable information.I want to start investment in SIP 5000 p/m.What is
large & mid cap.can you mention few names.
What do you mean by serious investment?
regards
sisir
Reply
58 Hemant Beniwal April 12, 2011 at 9:33 AM

Hi Sisir,
In large cap you can start with HDFC Top 200 & in Mid Cap go for DSP BR Small &
Mid Cap Fund.
I wrote serious investment as he is 33 & already lost some good years for saving. Or in
other words time is not with him.
Reply
2/5/2012
Page 24 of 101
59 Sisir April 13, 2011 at 9:33 PM

Hi Hemant,
Thanks for the info.Anyway i am also 33.Can you please suggest how to invest at
this stage?
Regards
Sisir
Reply

Hi Sisir,
I already told you in my last message
You can also open PPF ac. with post office or SBI bank.
Reply
61 Jaswant Singh April 15, 2011 at 11:28 AM

i want to invest 500 per month in SIP scheme can you tell me about return and time some
things
Reply

Hi Jaswant,
I am not sure what actually you want to ask.
Reply
63 Vikas kumar April 19, 2011 at 12:28 AM
2/5/2012
Page 25 of 101
hii,
thanks for this nice article sir. I am a student of MBA. I want to start SIP by my savings of
part time job (tuitions). I want to start with rs.1000 for 3 yrs Is it possible?
Reply

Hi Vikas,
Dont invest in equities if your horizon is only 3 years. Go for balanced funds or MIPs.
Reply
65 Navnath Junghare April 19, 2011 at 11:10 PM

HiHemant,
Nice article! Im 27 yr old bachlor with monthly income of 35k.Till now I havnt done any
investment. So to start up plz tell me where & how much should I invest,Or should I consult
advisor?
Thank You
Navnath
Reply

Hi Navanath,
Hiring an advisor will be good choice but before that I will suggest to learn basics of this
game. Start small amount in SIP so that you get some taste of equities also open PPF
A/c its a no brainier & best debt investment.
Reply
67 Navnath Junghare May 4, 2011 at 7:00 AM

Hemant,
2/5/2012
Page 26 of 101
Thanks for the reply. For starting Im considering HDFC Top 200 & DSP BR
Equity Fund from the list you mentioned in this article. Does these two funds good
& enough? & for how many years I should invest in these funds?
Regards,
Navnath
Reply
68 Hemant Beniwal May 5, 2011 at 8:11 AM

Hi Navnath,
Its good to hear that you are following our suggestion but dont follow them
blindly as need of 2 people will never be same so how solution can be same. But
as far these funds are concerned they are exceptional performers in the past.
They are enough or not will depend on size of your goals and investment
amount but as you have mentioned its just your beginning you can stick to
these funds. Time horizon of your investment should decide that for how long
you should invest in any mutual fund you can consider withdrawing it or
changing your strategy when you are 4-5 year from your goal.
Reply
69 Navnath Junghare May 26, 2011 at 8:47 AM

Hi Hemant,
For debt, Im considering investing in FMP for 2 years(How much return
I should expect?) & in HDFC Taxsaver fund. As I already opted for two
equity funds, is it necessary to invest in more than one ELSS fund for
returns? Also instead of opening PPF account Im considering increasing
my EPF contribution.
Let me know your view please.
Thanks & Regards,
Navnath
Reply
70 Nitish Kumar April 24, 2011 at 1:22 PM

2/5/2012
Page 27 of 101
Hi,
Thanks for the great information. Just a small query, if ones horizon is long term like about
10 to 15 yrs, then what type of funds should one go for. Also does it make more sense to keep
switching funds to maximize returns.
Reply

Hi Natish,
For such a long horizon you should stick to good diversified equity funds. Dont switch a
lot it will negative impact on your returns.
Reply
72 haamim April 24, 2011 at 1:23 PM

Well, the article was indeed an eye opener..n the presentation was a motivating one.. Gee
Thankx..i m indeed thinking of goin for a SIP!!!
Reply

Great Haamim
Reply
74 Ankit April 24, 2011 at 5:45 PM

Hi Hemant,
Nice elaborative article,it helps in understanding basics!I have question related to ULIP.
I am 25yrs old bechalor. I started with a ULIP plan in Jan-2008,A.P of 15k.It covers Life
insurance of 3Lac.I have already crossed the mandatory period of premium pay which is
3years.Do you suggest me to continue with policy?If yes,shall I continue to pay A.P or should
keep policy as is?
2/5/2012
Page 28 of 101
Reply

Hi Aniket,
My suggestion will be to surrender this policy but check surrender charge & tax
implication before doing the same.
Reply
76 VINAY April 28, 2011 at 6:56 PM

I FOUD IT VERY INTERESTING AND CAN NOT EXPECT MORE INFORMATION.
EVEN A LAYMAN CAN UNDERSTAND IT EASILY. THANX FOR SUCH
INFORMATION.
Reply
77 Hemant Beniwal May 1, 2011 at 9:25 PM

Thanks vinay for appreciating our effort.
Reply
78 Sumit Kumar May 2, 2011 at 8:08 PM

Hi Hemant
I came to know of this recently and I find it quite easy to understand. Thank you for your
your kind effort for the Novice user like me.
From your articles I came to know that a Term Plan with Equity SIP and PPF is the best
combination. Currently I am 23 yr old and working in Railways. So I am already attached
with NPS. My monthly income is nearly 32K.
1) I want to know if I take Equity with SIP in quarterly mode how long will I have to invest
money in that particular fund. Is it that I have to invest only for 4 times (Quarterly SIP) in a
year and then in the next financial year I can invest in some other equity fund. I am planning
to invest about 40k per year.
2) In the quarterly mode is it that I can invest at any time within the 3 month period.
2/5/2012
Page 29 of 101
Thanks
Sumit
Reply

Hi Sumit,
Its good to know that you are seriously taking your investment at this young age. I can
assure you if you keep thing on track you will build huge wealth before retirement. You
have raised a good point regarding quarterly SIP most of the investor thinks that it can
be done only monthly. Theoretically you can do this way that you invest 4 installments
this year in fund & next year in some different pay but practically this strategy will not
have much benefit. My suggestion is to start with a diversified portfolio of 3-4 funds.
Regarding dates of SIP that will be fixed & you have to invest on same date every
quarter.
Reply
80 Sumit May 6, 2011 at 8:44 PM

Hi Hemant
Thanks for the information.
Reply
81 Girish B May 4, 2011 at 11:20 AM

Hi Hemant
It is a very valuable information you have provided about SIP. However I have a query. Is it
worth to go for a SIP in a fund where the NAV price is very high . say hdfc equity where nav
is around Rs 200? Does it matter on the number of units which I am getting while investing in
SIP
Reply
2/5/2012
Page 30 of 101
Hi Giresh,
This is 3rd time that I have received this query I am writing one article on same will
publish it today or tomorrow.
Reply
83 A. Misra May 16, 2011 at 8:19 PM

Sir
Is any SIP granted any I.Tax benefit to the investor?
Reply
84 Hemant Beniwal June 18, 2011 at 12:57 PM

Hi A. Mishra,
You can start it in ELSS Fund.
Reply
85 Mayank Gupta May 19, 2011 at 12:27 AM

SIP in Mutual funds is like a snail but in a long run create your wealth with the power of
compunding
Reply

Good thought Mayank
Reply
87 prashant chaudhary May 27, 2011 at 3:11 PM

Dear hemant,
no doubt your article is very very valuable for beginners
2/5/2012
Page 31 of 101
please clarify, should i invest per month 2000/- via SIP in 1-2 mutual funds stated by you in
the article or invest quarterly/half yearly equivlent amount , which one will be more benificial.
i am a salaried employee.
Reply

Thanks Prashant
You can start in any of the 2 funds mentioned in above list.
Go for monthly option your income is monthly most of your expenses are monthly
so why not have investments on monthly basis.
Reply
89 kamalesh thapa May 28, 2011 at 11:34 AM

i recently read this article & i guess i am one of those guys who is gonna get a great help from
this as i was looking for investment options.certainly this help us to understand each & every
small or big details about SIP minimize our risks. . thanks man
Reply

Thanks Kamlesh
Must share it with your friends.
Reply
91 ANIL KUMAR KAPILA May 31, 2011 at 7:14 PM

Hi Hemant
In the table of best SIPs only the name of the scheme is given.If in the description it is also
mentioned whether the scheme is large cap, mid cap, small cap or flexi cap, it will help the
investor in making a selection.
Reply
2/5/2012
Page 32 of 101

Great Suggestion
Next time I will try to implement it.
Reply
93 ajmal June 4, 2011 at 3:01 PM

Hi Hemant,
Thanks a lot to share such an insight into the subject of SIP.
I am new to this, always wanted to invest through SIPhave fnally taken a plunge, have
started with Reliance Equity Fund & Reliance Gold Savingsalthough i plan to get few more
Mutual Funds into my kitty, but there is always a question that comes to my mind how
much time should one invest or should i say(since am a salaried individual) how often should
one review the SIPs?? regards
Reply

Hi Ajmal,
You can start sips in 4-5 funds & keep reviewing it on half-yearly basis. But must start
learning about investments & other personal finance topics.
Reply
95 Swamy June 4, 2011 at 5:40 PM

Dear Sir,
First many thanks to you for how you are educating people who are interested in their future
financial plan. Great Sir. Can you please tell me, till date i dont have any financial plans, by
reading this article, interested in invest in SIP. How and where can I start, I dont have any
demat account. Can I pay online monthly to any SIP?
Thanking you,
Swamy.K
2/5/2012
Page 33 of 101
Reply

Hi Swamy,
There is no requirement of Demat for mutual fund investments try to find out an
advisor in your locality or reach out nearest branch of private sector bank. They will
assist you in filling your form & may also guide you. Make sure they dont sell you any
investment related policy.
Reply
97 kaushal June 6, 2011 at 1:07 AM

Hi Hemant,
Very very informative,useful, and interesting article.Pl keep on writing and sharing such types
of information with us.Also may I request you ,to mail few more companys mutual funds
(SIPs) whose past performance were attractive and future is bright, and also are suitable for
investment as per your experience and idea.
Thanks!!
Kaushal
Reply

Hi Kaushal,
I have already shared a long list I think you can start SIP in 3-4 funds of your choice.
Reply
99 Parag Sane June 9, 2011 at 11:11 PM

I want to start investing in SIPs starting with Rs 5000 per month and taking it to 10000 per
month.
Looking at a horizon of 5 years which fund will give me max returns.
I have medium risk appetite.
2/5/2012
Page 34 of 101
Reply
100 ANIL KUMAR KAPILA June 10, 2011 at 9:50 AM

Hi Parag
Since you are investing in mutual funds for the first time and you have a medium risk
appetite and medium time horizon, you can start your SIPs in one or two balanced funds.
Reply
101 Manoj June 21, 2011 at 4:20 PM

Hi Hemant,
I am 26 yrs old and I have started investing Rs. 1000 each monthly SIP in these 3 diversified
funds :
HDFC TOP 200 (Large cap category)
DSP-BR small n midcap (Small n Midcap category)
Fidelity Equity fund (Multicap category)
I want you to tell me how is my portfolio..
My second question is that I have also started investing Rs. 4000 ELSS SIP in HDFC tax
saver. If from next financial year, ELSS is not considered as tax saving then what will be the
option for me to invest in equities for tax saving and if equities will not be considered as tax
saving then should I invest some amount in PPF and increase my SIP in the above 3
diversified funds or have one more diversified fund in my portfolio?
Reply

Hi Manoj,
Your fund selection is good continue it.
Regarding DTC lets wait but continue your investment ELSS.
Reply
103 Vijay July 1, 2011 at 4:13 PM
2/5/2012
Page 35 of 101
Hi Hemant:
Id like to start investment in SIP. Before that I made some preliminary calculations:
1) Calculated my present monthly expenses (~20K)
2) Projected that figure 15 years hence, for the future value of monthly expenses (~63K) using
8% Inflation Rate
3) To earn that amount per month, I calculated the Corpus amount (Rs. 1,26,88,683) required
which when invested at 6% Interest Rate gives me 63K per month.
4) To achieve that Corpus amount , I calculated how much amount I have to invest monthly
(in SIP) at an investment rate of 15%. I got an amount of Rs. 19K approx.
a) Am I correct in my assumptions and calculations?
b) I plan to invest this amount equally in 4 SIP Plans HDFC Top 200, Franklin Blue Chip,
DSR Black Rock & one more SIP. Id like to hear your comments and suggestions regarding
my plan.
c) I plan to invest for 15 years as Im 44 now and am planning for my retirement fund.
d) At present I invest in ICICI Lifetime Pension II Plan (Rs10K per year), MetLife Ultimate
Option A (60K Per Year), apart from PPF (12K Per year)
Need your valuable advice.
Regards
Vijay
Reply
104 Manoj July 18, 2011 at 1:44 PM

Hello Mr. Vijay,
I would like to inform you that we have read enough articles on ULIP insurance n
pension policies n came to know that those policies are not enough to meet our retirement
goals. So if you have decided to go with mutual fund SIPs then its a good decision.
Proper fund selection is also an important part to enter in equity. So all the above funds
that Hemant suggested are very good.. One thing you need to look at is that you need to
have proper diversification of funds.. large cap, multi cap and small n mid cap fund..So if
you go with HDFC top 200 as large cap fund then in multi cap category go with reliance
equity opportunities fund and/or fidelity equity fund and in small n mid cap category go
with DSP-br small n midcap fund or IDFC premier equity.. remember that 30-40% of
investment in small n mid cap category is important as these funds will give very good
returns in long run.It is also important to have proper company diversification. And
considering your age I would also suggest you to have a balanced fund like HDFC
Prudence fund which will control your portfolio when the market is down.
2/5/2012
Page 36 of 101
Reply
105 Manoj July 4, 2011 at 10:59 AM

Hello Hemant,
My dad is a retired person n is 63..He told me that he wants to invest Rs. 1000 SIP equity per
month from his pension which he thinks he has in excess for around 5 yrs or more and is
happy to get any returns better that govt schemes. I told him that SIP investment for 5 yrs is
perhaps not enough as many of the financial advisers do not suggest to invest in SIP for just 5
yrs..I told him to invest for at least 8 yrs..Then he said ok.. I also told him that you should not
be worried too much with the market fluctuations..He said ok for that as well.. I suggested him
a balanced fund i.e HDFC Prudence fund whose track record has been very good over the yrs.
I want your opinion on this Hemant.. Shall he proceed further with the HDFC Prudence fund
or you can suggest any other fund?
Reply
106 playboy July 13, 2011 at 1:58 PM

Hi Hemanth,
I am impressed with your articles. But I do have some concern regd the selection of mutual
fund or equity suggested by you.
I do agree that SIP brings discipline, rupee cost averaging, interest compounding etc. But
the main thing is choosing the right fund.
If the fund is not performing great, it does not make sense to invest in SIP even for 10 to 15
years.
I could see that no where you are mentioning that. Please correct me if I am wrong, I
understood from your articles that you ask to go for SIP irrespective of fund (i.e how it
performs) as nothing is best for you. But I think that is not right procedure.
The same thing for equity, not all shares of the companies will go up even if we keep for long
term (10 to 15 years) if the company is not performing good.
Thanks,
Playboy
Reply
2/5/2012
Page 37 of 101
107 ANIL KUMAR KAPILA July 13, 2011 at 8:01 PM

Hi Playboy
I think you have not understood the article correctly.Below the table of SIPs prepared by
Hemant he has clearly mentioned that the table is meant for comparison only based on
the past performance of the funds.Hemant is right when he says that no fund is best
because no fund remains best for ever.There are always ups and downs in the
performance of a fund throughout its life cycle.The fund which may appear to be best
today may not remain best tomorrow.Moreover the selection of a fund is not decided
solely by its present or past performance.While selecting funds for SIPs the presence of
other funds in the portfolio has also to be considered.Recommendation for a fund for SIP
can not be given in isolation.That is where the role of a financial planner
comes.Moreover it has been proved that over a long period of time even a fund which
may appear to be giving average returns has the potential of giving decent returns.
Reply
108 gautam singhania July 16, 2011 at 5:02 PM

hi
great article. it really helps us new investors get a good picture. i am 28 yrs and want to invest
rs 6000 per month in a sip. looking at hdfc mid cap oppurtunity fund . also i am a bit confused
as do new funds like this one having low nav of 15 rs is better choice than hdfc top 200 fund in
long tern of 20-25 yrs as investment is fixed and i will be getting lesser units in top 200 as nav
215 rs than mid cap as nav 16rs .
Reply

Hi Gautam
Since you are a new investor, it is better for you to invest in two or three good large cap
or large and midcap funds.NAV does not play any role in the selection of funds.Only the
long term performance of the fund should be considered.
Reply
110 Manoj July 18, 2011 at 1:25 PM

Hello Gautham,
2/5/2012
Page 38 of 101
As Anil n Hemant said NAV high or low does not matter..What matters is the
performance of the fund over the years under good times n tough times.. Many financial
experts say that for a person in his portfolio..there should be minimum 2 funds n
maximum 4-5 funds n proper diversification of funds like multi cap, small n mid cap and
large cap is required.HDFC top 200 is a large cap fund and HDFC midcap opportunities
is a mid cap fund.. I would suggest you to have one of these 2 funds because both these
funds are managed by same fund manager. So if you go with HDFC mid cap
opportunities..it is an excellent mid cap oriented fund and in large n multi cap category
of funds you can have fidelity equty fund and reliance equity opportunities fund..This
should complete your fund portfolio and in long run you will easily achieve your goals..
Reply
111 uday July 17, 2011 at 2:50 AM

Hi,
I have recently started two SIPs, Reliance Growth Fund and HDFC TOP 200, both Rs.5000
each and planning to continue for 15 years depending upon the future performance.
I would like to have one more. Kindly suggest the best one.
Reply
112 ANIL KUMAR KAPILA July 17, 2011 at 10:57 AM

Hi Uday
If you read the posts carefully you will get the answer of your question.Hemant has
already mentioned that best comes only after post mortem report. So please invest the
additional amount in one good large cap fund based on present and past performance
and keep on monitoring the future performance of the funds in which you invest.
Reply
113 Manoj July 18, 2011 at 10:59 AM

Hello Uday,
Reliance Growth fund is an OK fund and HDFC Top 200 is a very good fund..Both are large
cap funds..Most of the financial experts say that one needs to have proper diversification and
30-40% of your investment should be in small n midcap funds as well.. So I would like to
suggest you to have a small n midcap fund like DSP-BR small n midcap fund or IDFC
Premier equity.. Both of these funds have been best performers under this category.. This will
2/5/2012
Page 39 of 101
complete your fund portfolio.. Also re think your strategy with reliance growth
fund..Continue with it till it performs well or else switch to reliance equity opportunities fund
which has been a magnificent fund in the last 5 years.
Reply
114 CA Karan Batra July 19, 2011 at 5:30 PM

SIP is one category of investment which every individual should be investing in.
Try to invest atleast 10% of your monthly salary in SIP
Reply
115 Hemant Mittal July 21, 2011 at 12:33 PM

HI Hemant,
I am 30 yrs of age and looking for investments in short and long terms and so choose SIP.
Your article has motivated me that what I have choosen is good. However I wanted to know if
step taken by me is good enough.
I have started SIP from this year (March 2011) and invested Rs 5000/- in 4 different funds as
adviced by ICICI MF Advisor. I have currently opened it for 3 years but I am planning to
extend it for 10 years. I wanted to know from you if the funds selection is good enough and
how much do you project its value will be after 3 and 10 years ? If you feel any of the fund is
not good what you suggest me to do?
1. IDFC Premier Equity Fund Plan A Growth : Rs. 2000/month
2. ICICI Prudential Focused Bluechip Equity Fund Retail Growth : Rs. 1000/month.
3. ICICI Prudential Discovery Fund- Growth: Rs. 1000/month.
4. ICICI Prudential Dynamic Plan Growth : Rs. 1000/month.
Looking ahead for your advice.
Thanks
Hemant Mittal
Reply

Hi Hemant Mittal
2/5/2012
Page 40 of 101
Firstly I would like to point out that a person who is connected with a particular fund
house can not be called an advisor. His job is to increase the business of the fund house.
You should take the advice of an independent financial advisor. All the funds you have
taken are good but it is advisable not to have more than one fund from the same fund
house.For the sake of diversification and safety you should retain only one fund from
ICICI Prudential fund house and replace the two funds with similar funds of other fund
houses.
Investment in equity mutual funds is done for long term goals of more than five ears.No
body can predict short term return of three years.
Reply
117 Manoj July 22, 2011 at 11:11 AM

Hello Mr. Mittal,
Your top 3 funds are very good. Even though your fund exposure is mostly in ICICI
funds, the 2 funds i.e focussed bluechip is a large cap fund and discovery fund is a
midcap-multicap combo fund. Both these funds invest your money in different
diversified ways. So you can stick to these 2 funds. IDFC Premier equity is excellent
midcap fund as well. Only change you need to make in your portfolio is exit from
Dynamic plan n invest in another large cap fund i.e HDFC Top 200 fund. This will give
proper balance to your portfolio and also provides you with proper company
diversification.
Now the question here is you need to distribute your money in a balanced way in these 4
funds. Many of the financial experts say that 30 40% exposure should be in midcap and
small caps and above 50 % should be in large caps. But you have around 60% exposure
in mid and small caps which is a bit risky even though your time horizon is for 10 years.
so I suggest you to distribute your money in this way :
1) IDFC Premier equity 2000 /2) ICICI Prudential Focused Bluechip 1000 /3) ICICI Prudential Discovery Fund 500 /4) HDFC Top 200 1500 /This completes your portfolio diversification very well..
Now coming to your 2nd question about returns. It is not possible to predict returns but
we can certainly make assumptions. So if you are investing Rs. 5000 for 10 years then..
With an Avg of 12 % returns you will get Rs. 11,61,695 /With an Avg of 15 % returns you will get Rs. 13, 93,286 /So Mr. Mittal, this just my point of view..You need to take final decision. If you want to
2/5/2012
Page 41 of 101
look at some other funds.. you can select from the above mentioned list by Hemant Sir.
Reply

Hi Manoj and Mr Mittal
You can also see the latest post on this subject in which some guidelines have been
given for selecting equity mutual funds.
Reply
119 Shamshad.M.M July 23, 2011 at 6:50 PM

Hai,
I can invest 7000 monthly through SIP and I can be an aggressive investor,so
can you just give me a rough figure to make my port folio ? please let me know
how much amount i have to invest in each caps ..
thanks.
Reply

Hi Shamshad
I think you should invest Rs 2000/- each in large cap and large cap and
midcap and midcap and Rs 1000/- in multicap.
Do not forget to track your funds.
Reply

Hi Anil bhai,
So can i short list my portfolio as ;
1 DSP BlackRock Top 100 Equity 2000/Month
2 HDFC Top 200 2000/ Month
2/5/2012
Page 42 of 101
3 IDFC Premier Equity Plan A 2000 /Month

4 Reliance Equity Opportunities Ret 1000 / Month
Reply

Hi Shamshad
You have selected very good funds for your portfolio.Start your SIPs in these funds
immediately and stay invested for a long time.No not bother for short term ups and
downs.Good luck!
Reply
123 Shamshad.M.M July 24, 2011 at 11:22 AM

sure Anil bhai.my investment period will be 15-20 + years .as iam going to marry
on Januarymy goals will be depending upon that
Reply
124 Munish Singh July 24, 2011 at 11:11 AM

Hi ! everyone.
These are my investment folio let me know is there any modification required.
HDFC TOP 200 ->> 2000/monthly SIP.
HDFC Equity ->> 2000/monthly SIP.
ICICI DYMANIC (G) ->> 2000/monthly SIP.
ICICI Pru Focused Blue Chip Equity (G) ->> 2000/monthly SIP.
HDFC Prudence >> Planning to start a SIP of 1000
IDFC Premier Equity Plan A (G) ->> Planning to start a SIP of 1000
Regards,
Munish
Reply
2/5/2012
Page 43 of 101
Hi Munish
All funds in your portfolio are very good.The only issue is that it has not been properly
diversified as you have more than one fund from two fund houses in your portfolio.This
increases your risk.Normally the portfolio should have only one fund from each one
house.
Reply

Hi Munish ,
As Anil bhai said ,you can diversify your port folio by changing some funds;
- Instead of HDFC Equity you can go for Reliance Equity Opportunities Ret ,
- Instead of one ICICI fund you can go for DSP BlackRock Top 100 Equity.
Other good funds are -Franklin India Bluechip,Fidelity India Growth,Birla SL
Dividend Yield Plus and UTI Dividend Yield and i think minimum monthly
payment for IDFC Premier Equity Plan A (G) is 2000.
Reply
127 munish singh July 25, 2011 at 9:08 AM

Mr. Anil & Mr. Shamshad
Thanks a lot , for correcting me Now I understand what your concern is and where Iam
wrong. Really a wonderful experience of using TFL where i get the right direction to invest.
Reagrds,
Munish K. Singh
Reply
128 Shamshad.M.M July 25, 2011 at 10:53 AM

Hai Munish ,
Credit goes to Hemant Bhai,he is the man behind TFL.without any doubt i can say that
iam getting all these knowledge from him and Anil.
Keep visiting TFL and share it with your friends.
2/5/2012
Page 44 of 101
Regards,
Shamshad.M.M
Reply

Hi Munish
It is good to know that you have understood what to do.The key is to remain away from
people who are miss selling.
Reply
130 munish singh July 26, 2011 at 3:35 PM

I am completely agreed with you.
Reply

Thanks! Munish
Reply
132 kaushal July 27, 2011 at 6:09 PM

Hiii Hemant, Thanks for writing useful articles about various investment schemes.I want to
invest money in SIPs for 5 to 10 yrs,and have short listed few ones ,which are :HDFC Top 200
Fund, Birla Sunlife Equity Fund ,DSP BR Equity Fund,SBI Magnum Global Fund,Franklin
India Blue Chip Fund.In your suggestion are these SIPs are safe and beneficial ? Pl also
suggest that I want to invest in Gold ETF,how will it be this investment ?
Thanks in advance for your valuable advice !!
Kaushal Sharma
Reply
2/5/2012
Page 45 of 101
Hi Kaushal
Please read the post Best Mutual Fund For SIP.This will help you in constructing your
portfolio.
Reply

Hii Anil
Actually this article is not clear to me and I want to know in nutshell.
Pl suggest me to construct the portfolio.
Thanks !!
Kaushal Sharma
Reply

Hi Kaushal
The portfolio of equity mutual funds is constructed to meet your long term
goals such as kids education, retirement etc.You must have a corpus in mind to
achieve your goals.Depending on the corpus required you have to decide the
amount which you have to invest every month.Then you have to invest that
amount in four or five funds which will form your portfolio.Select one large
cap fund, one large cap and midcap fund, one multicap fund and one midcap
and small cap fund from the categories given.Invest around 70% of the
amount in large cap and large cap and midcap fund and the balance in the
other funds.Start your SIPs and remain invested as long as you can.Do not
bother about short time ups and downs in your portfolio.
Reply

Hii Anil
Thanks for your valuable suggestions.I am Ex soldier aged 37 yrs and get
monthly pension about 10000 Rs PM, and get 35000Rs PM from salary.I
have invested money in RD, MIS & FDs but that gives very less profit, off
course have highest security. Now I want to invest around 400000 lacs
RS ,which I had received from my last service.Pl suggest me the areas of
investment,particularly with specific name of SIPs and also name(s) of
term plans of insurance and amount and period of plan as per your
2/5/2012
Page 46 of 101
suggestion.Also pl suggest me that how will be the Gold ETF for

investment purpose.
Thanks !!
Kaushal Sharma
Reply

Hi Kaushal
It is not desirable to make any lump sum investment in equity
mutual funds.You can divide the lump sum amount available with
you in monthly installments and invest it over a period of around
one year in monthly SIPs.Up to 10% of your investment you can
have in gold.
Reply
138 Hemant Beniwal July 28, 2011 at 8:41 AM

Hi Anil/Kaushal,
SIP is a great way to invest but that doesnt mean one should
not invest lumpsum in equity markets. My suggestion to
Kaushal is he can invest part of amount as lumpsum & rest
through Systematic transfer plan. (6-12 months)
Reply

Hi Hemant
Thanks!
Reply
140 munish singh July 28, 2011 at 9:19 AM

Thanks Hemant,
even this thought comes in my mind to invest lumsum
2/5/2012
Page 47 of 101
amount but as in your article it is mentioned that it wont

be a good decision. So can i also do the same. One more
thing
1. Like for example i started SIP in ICICI fund with folio
no.
of 1233456/78 . After one year I got a good incentive or
some return from other investement . So would it be a
good idea to invest those returns in that SIP folio lumsum.
Regards,
munish k singh
Reply
141 ANIL KUMAR KAPILA July 28, 2011 at 9:31

AM
Hi Munish
As for as folio number is concerned normally you
should have only one folio number of a fund house
and you should do all your investments in the same
folio number.It does not matter whether you invest
lump sum or through SIP.
Reply
142 munish singh July 28, 2011 at 2:17 PM

oh! gr8888 . I was really confused . Now every
thing is clear.
143 David August 3, 2011 at 1:01 PM

Hi Hemant,
Very very good article
Could you please advise which SIPs should I invest in which would give me some good
returns
Regards,
2/5/2012
Page 48 of 101
David
Reply
144 ANIL KUMAR KAPILA August 3, 2011 at 9:14 PM

Hi David
Please read the post Best Mutual Fund for SIP for answer.
Reply
145 playboy August 4, 2011 at 8:39 AM

Hi David,
I think you have read other posts as well. You need to have realistic financial goal in
mind along with the period of time to achieve that goal. It helps you to plan to achieve
the goal and the amount you need to invest regularly.
Hemanth suggested few mutual funds which are good to invest in sip method. Please
choose among them and do not worry about markets ups and downs and invest your
money to achive your financial goal. Please keep in mind that you should have long term
goal in order to invest in Equity and also be realistic, i.e expect approx 12% to 15%
returns per annum in equity.
The reason I am saying this is that your query says that Some good returns. Hence I
am suggesting you to have finanical goal in place. If you are already having that, then it
is very good.
Happy investing to achieve your goals.
Regards,
PB.
Reply
146 David August 4, 2011 at 11:58 AM

Hi PB,
I am fairly new in the SIP so thanks for the advise. I plan on investing in long term basis (10 to
15 yrs if applicable) and have the following options in mind
2/5/2012
Page 49 of 101
HDFC TOP 200 = RS 5000/month

DSP BR Equity= RS 5000 / month
HDFC Equity= RS 5000 / month
Please advise if the above selections are appropriate. Also will it be available for an NRI.
Regards,
David
Reply

Hi David
As mentioned in the post Best Mutual Fund for SIP your portfolio should have one large
cap fund, one large and midcap fund,one multi cap fund and one mid and small cap
fund.Although both the funds of HDFC mutual fund selected by you are very good, it is
better if you select each fund of different fund house for better diversification and
reducing risk.
Reply
148 sudheesh nair August 13, 2011 at 3:33 PM

hi,
pls. advice me on the investment funds available to invest Rs.10,000/- every month in a SIP.
investment period will be between 10 to 15 yrs and will be purely equity based.
Reply

Hi Sudheesh
Read the post Best Mutual Fund For SIP.
Reply
150 Saurabh August 16, 2011 at 10:54 AM

Hi Hemant,
2/5/2012
Page 50 of 101
i m 22 yrs old my income is 22k permonth

this month i had invest in
1) HDFC top 200 1000/- mnth
2) IDFC premier equty 1000/- mnth
3) HDFC tax saver 1000/- mnth
4) DSP balckrock balanced 500/- mnth
Please guide me on this,is this okay , and please suggest me some more plans for investments
and i would like to invest more 5k per month but gradualy , & i need to save 60000 more
under 80c plz guide me on dis..
I had already invest in dsp balckrock natural res & reliace reg saving 10000/- respectivly
lumpsum in yr 2009 so shall i continue with dis or can i go for redumption option?
please guide me for my financial planing for future
Waiting for ur reply, thanks
Reply

Hi Saurabh
It is good to know that you have started investing in mutual funds and you want to invest
Rs5000/- per month more. However it is important to know whether you are investing to
meet some long term goal or just investing by randomly picking up some funds.
Reply
152 Saurabh August 17, 2011 at 8:27 AM

Hi Anil,
thanks for your early reply
Yes, the amout which i have invested in all above funds(which i mentioned above coment) is
for long term like 5 yrs, and does that invesment financialy sound? Please let me know this
also if not then I will roll back my funds.
And next 5000 i would like to invest for short term so guide me on that
Thanks
Waiting for next reply
Reply

Hi Saurabh
2/5/2012
Page 51 of 101
The definition of short term and long term is different for different people.For the purpose of
investment a time horizon of less than three years can be considered short term.In the short
term we can see a lot of volatility in the market.Hence it is advisable to invest only in debt for
short term.Time period of three to five years can be considered as medium term.For medium
term you can consider investing in hybrid funds.For a time horizon of more than five years
you can consider investing in pure equity funds.
Reply
154 Saurav Dasgupta August 17, 2011 at 2:42 PM

Nice artice, some of my doubts are now cleared about SIPs. will read all the comments once
reaching home i will first get my KYC done.. by the time can you seggest me how to get a
good financial planner.
Reply
155 Hemant Beniwal August 17, 2011 at 7:26 PM

Hi Saurav,
Check this
http://www.tflguide.com/2010/12/how-to-choose-your-financial-advisor.html
Reply
156 Sunita August 20, 2011 at 11:29 AM

Dear Sir,
I want to invest Rs. 1,00,000/- for future of my baby
please advice best investment plan
Reply

Hi Sunita
Instead of looking for some investment plan you should construct a portfolio of three or
four good equity mutual funds and invest the amount in them.
2/5/2012
Page 52 of 101
Reply
158 Shikha August 20, 2011 at 3:52 PM

Wow..!! indeed a great help to beginnersI am 25 year old salaried person. Though, planning
for investment one year later, but i hope i didnt lose much of the time. I m so delighted to start
with my investment plans..!! Many thanks to Hemant and Anil. Presentations are
awesome!! this one is my fav blog from now. will visit it often. I hav already told every
single gud thing about SIP to my parents and wud spread the news to my friends too to go
through ur site. Once again thank you so much
Reply

You are welcome Shikha.It is good to know that you are starting with your investment
plans.Best of luck.
Reply

hi Anil, I have one doubt regarding PE ratio, does it really help to consider PE ratio
while investing in MFs. Please can you clarify
Reply

Hi Shikha
If you are planning to start investment in mutual funds to meet your long term
goals please read the post Best Mutual Fund For SIP.This will help you to
construct your portfolio.Just follow the core and satellite approach.The funds
selected for each category are based on the present and past performance.You
do not have to consider any other factor like PE ratio etc.
Reply

2/5/2012
Page 53 of 101
Thank you Anil, i ve gone through that web page too. Must say that
helped me lot to make my portfolio, yea i m following core satellite
approach and playing on conservative side, keeping 65-70% in core.
Made a list of all contact address, where i could approach on the decided
fund houses. I guess it will take time to start upon all the MFs investment
plans i ve made. I ll do that one by one. For the beginning I ve decided on
four diff fund houses, two large caps and one large and mid cap, and one
multicap. Will fill in 1-2 tax saver MF too. Lets c how it works out. Please
feel free to provide your valuable suggestions that would add on my
future plans and make it lot better..!!
Reply

Hi Shikha
You are doing fine.You can also check contact address of registrar
and transfer agents of different fund houses.Most of the fund houses
are serviced by CAMS and KARVY.You should not forget to
mention your email ID on the application forms.Once your emailID
is registered with registrar and transfer agent you will automatically
get your account statements via email whenever any transaction
takes place.Moreover you can also get your portfolio statements via
email.
Reply
164 Shikha September 17, 2011 at 1:07 PM

thanks Anil, i have invested 30% of my monthly income in
SIPs. Of this amount, 64% I have invested in DSP black rock
and Franklin blue chip. The rest (36%) i have invested in
canara robeco tax saver and fidelity tax saver. Will you please
suggest me that do i need to increase this 30%?? Because
earlier i had also planned for investing in IDFC premier and
HDFC top 100, but then dropped the idea, as i am new to
investments. please reply
Reply
165 ANIL KUMAR KAPILA September 17, 2011 at 1:58
2/5/2012
Page 54 of 101
PM
Hi Shikha
One must try to save as much as one can. If you can save
more than 30% of your income then it is very good. Since
you are new to investments I would suggest you to have
proper asset allocation first. As you are 25 years old you
should have around 25% in debt and 75% in equity. If
you have already invested in debt as per your asset
allocation then you can consider investing your additional
savings in diversified equity mutual funds.
Reply
166 Shikha September 17, 2011 at 6:16 PM

thanks anil, i guess that 1:4 ratio of debt:equity is
for total savings and not total income!! am i right?
Reply
167 ANIL KUMAR KAPILA September 17,

2011 at 6:47 PM
Hi Shikha
Yes this is the allocation of your assets which
you create from your savings. Here debt is
needed to meet your short term requirements
and equity is meant for long term wealth
creation. I have not included property and gold
which can be your other assets. After having a
portfolio of diversified equity mutual funds
exposure to gold can be considered later on.
Gold should not form more than 10% of your
portfolio.
168 Saumya August 26, 2011 at 9:26 PM

Sir
Thanks for publishing such articles. Indeed your articles are very informative.
2/5/2012
Page 55 of 101
I am 22 year old salaried executive and a novice in this field. I want to know that SIP is to be
done on monthly basis or it can be done on quarterly, half-yearly or yearly basis as well.
Though I save some amount per month but I have to keep it for emergency. But I can invest
money that I will get as bonus or incentive (but that will be twice or thrice in an year) or
surplus out of emergency fund.
Or I may start 2 monthly SIP Rs 1,500 each and invest more as and when more money is
available. So please advice, which way can I do. Can I do any one of the two ways or only one
of two is possible.
Secondly, SIP is done for a fix amount say Rs 2000 and the unit price (NAV) is Rs 240 so you
will get 8 units, what is about balance Rs 80, how it is account for.
Thanks
Saumya
Reply
169 ANIL KUMAR KAPILA August 27, 2011 at 9:00 AM

Hi Saumya
Since you get your salary every month it makes sense to save something every month and
go for a monthly SIP although other options are also available.To begin with you can
start monthly SIPs in large cap and large and midcap funds.
You can add multicap and midcap and small cap funds to your portfolio later on
whenever you have more funds available. You can add to your existing funds any time by
way of small lump sum investments.
It is not necessary that NAV or the allotted units have to be in whole numbers.
Reply
170 Shirish August 30, 2011 at 2:22 PM

Hi Hemant,
Thanks a ton for all ur articles.
I am 30 yrs old. I am working in a SW industry. I am new to this kind of investments. My
current savings/investments are in the form of LIC Policies and PF.
LIC Policies: 55k per annum (after 20 yrs I am going to get a sum of around 9 lacs)
PF: 70k per annum.
I dont think its a good investment from a long term perpespective.
2/5/2012
Page 56 of 101
I need some suggestions on investing the money to have a good returns for my childerens and
at my retirement.
Regards,
Shirish G.
Reply

Hi Shirish
It is good to know that you have now decided to invest to meet your long term
goals.Please read the post -Best Mutual Fund For SIP and start investing in equity
mutual funds.
Reply
172 scout221ha September 6, 2011 at 1:04 PM

Hi Anil,
Im a student with about 1000-2000Rs to spare every month. Im looking at a long term
investment of about 10 years. From what ive gathered SIP seems like the best option. I heard
the word midcap & largecap mentioned in some of the previous comments, i dont really know
what that means. I would greatly appreciate some advice as i am new to investing and a
complete illiterate on the subject.
Reply
173 ANIL KUMAR KAPILA September 6, 2011 at 8:35 PM

Hi Scout221ha
Words largecap and midcap are derived from market capitalisation. 2972 stocks are
traded on BSE. 78 largest companies account for about 70% of total market cap, 216
mid-sized companies account for the next 20% of total market cap, 2678 smallest
companies account for the bottom 10% of total market cap.
Equity mutual funds with more than 80% of assets in large cap companies are called
large-cap funds.
Equity mutual funds with 60 to 80% of assets in large cap companies are called Large &
midcap funds.
These types of funds are synonymous with stability and low volatility. Hence you can
select one or two funds of these categories for your investments.
2/5/2012
Page 57 of 101
Reply
174 Satish Laxne September 7, 2011 at 2:14 PM

hai,
Im interasted (SIP) plans so please sagest me best co.& plans.
replay me.
thanks.
Reply

Hi Satish
Please read the post- Best Mutual Fund For SIP.
Reply
176 Kirubakaran September 7, 2011 at 5:16 PM

Dear Sir,
Thank you very much for your valuable article. My monthly salery is Rs.18000/pm. Yearly
8000 pay in LIC Bema Gold Scheme. Mothly Rs.2000 invest in HDFC Top 200 and DSP BR
Top 100 Equity -Growth Scheme.
Pls kindly help to me this is enouf for my future retirement statge or can i increase amount in
Mutual fund.
Pls kindly help to me. am new investor in Mutual fund.
Awaiting your reply sir
Reply

Hi Kirubakaran
The funds selected by you are good. If you can save more then you can always increase your
investments in these funds.
Reply
2/5/2012
Page 58 of 101
178 Pratima September 13, 2011 at 4:39 PM

Hi Hemant,
Whenever I say my husband that I want to start SIP he tells me to go for tax saving SIP, I
have heard lot about SIPs and financial goals we can achieve through that I am really
interested in starting SIP but always confused between tax saving SIPs and normal ones can
you please guide
Reply

Hi Pratima
Tax saving can not be the only reason for starting SIPs in mutual funds. Moreover from
next year you are not going to get any tax rebates on your investments in tax saving
mutual funds and your money in these funds is going to be locked for three years.
If the objective of your savings is to meet your long term goals then investment in equity
mutual funds through SIP route is the best approach.
Reply
180 Ashwini September 13, 2011 at 5:31 PM

Thanks for providing information in simple way.
Reply
181 Nikhilesh September 17, 2011 at 11:31 PM

Hello Hemant,
I hav Rs. 50000. want to invest for 2 years. please suggest where could I?
Also I want to invest Rs.2000 Per Month on SIP. So please suggest which SIP should i look
forward too.
Regards | Nikhilesh |
Reply
2/5/2012
Page 59 of 101
182 ANIL KUMAR KAPILA September 18, 2011 at 11:53 AM

Hi Nikhilesh
Your investment horizon of two years is not suitable for investment in mutual funds. You
can consider investing in bank deposits. For investment in equity mutual funds you have
to remain invested for a minimum of five years.
Reply
183 Nikhilesh September 18, 2011 at 5:01 PM

What about SIP?
Reply

Hi Nikhilesh
You have not mentioned any investment horizon. If it is around five years you
can invest in a balanced fund like HDFC Balanced Fund.
Reply
185 mithilesh kumar September 20, 2011 at 7:26 PM

hi..
1st off all heartily congratulation to hemant,anil.
dear sir,
i am 28 year old.my monthly income is 20k.
i want to invest 4000-5000 Rs. per month.
my plan is
2000 Rs per month in ppf,
1000 Rs. in hdfc top 200,
1000 Rs. in hdfc equity fund,
500 Rs. in DSP BR equity fund,
500 Rs. in Reliance growth fund.
for long term.its suitable or not?
another question is here sir i am going for long term ie 10-15 year for these SIP then any lose.
please guide me.
kind regard
2/5/2012
Page 60 of 101
mithilesh kumar
Reply

Hi Mithilesh
For investing Rs 3000/- per month so many funds are not required. You can consider
investing in these two funds.
1 ICICI Prudential Focused Bluechip Equity
2 HDFC Midcap Opportunities.
Reply
187 jitendra singh September 22, 2011 at 3:14 PM

Sir,
Really very good article.
Thanks
Reply
188 Yogesh September 24, 2011 at 8:11 AM

Hi,
Firstly I would like to thanks for this nice article.
I also want to invest in SIP but I have one query regarding the date of each month. Which
date of the month is better to choose while investing in SIP. Is it better to invest around 25th of
each month just before expiry because normally market fall at that time ?
Please advise.
Thanks in advance.
Reply

Hi Yogesh
When your investment horizon is long and you invest through monthly SIP, the date of
SIP is not important. Nobody can time the market.
2/5/2012
Page 61 of 101
Reply
190 badri prasad deshmukh September 25, 2011 at 9:10 PM

Sir,
Please guide me,
i am polcy holder BSLI platinum Premier life term 10 pay 10. but i am 1st primium paid 08
march 2010. next primium due on march 2011. some problem occuer due to primium not paid
by me. pl suggest me to be continue to same plan and what are procedure to be continue and
also suggest for what are document to be required for contineue.
Please advise.
Thanks in advance.
Reply
191 Amit September 26, 2011 at 1:05 AM

Hi Hemant,
My age is 27, recently married. I can easily invest 25000 /- Per month. I am planning to invest
5000/- every month for 15 years for my Child Education in SIP, 5000/- every month for 20
years for my Child Marriage in SIP, 5000/- every month for 25 years for my retirement in SIP,
5000/- every month for 20 years as a insurance premium & 5000/- every month for 10 years in
SIP for investment. Kindly Guide me is it the right decision of mine ? or if not, then kindly
recommend me the same ? Also tell me which are the best MF to invest ? Also i will be in
need/require of good amount of money after 15 years..So kindly Guide me????
Reply
192 SABU September 26, 2011 at 9:19 PM

sir i had invested in sbi magnum global , emerging business , equity funds for 5 years through
sip of 1000/- per month is it ok
Reply
193 SABU September 26, 2011 at 9:19 PM

sir i had invested in sbi magnum global , and emerging business , equity funds for 5 years
2/5/2012
Page 62 of 101
through sip of 1000/- per month is it ok

Reply
194 Amit September 27, 2011 at 4:38 PM

Dear Anil,
By investing 5180/- per month for 25 years at a inflation of 6 % & expected rate of return
12%, i will get 98 Lacs after 25 years. Now Please tell me what will be the taxes on the interest
generated ? I have heard that the tax is near about 30% on the interest generated. Is it right ?
If it is so then the 98 Lacs will reduce to 72.00 Lacs. So, 72 Lacs is the amount which i will get
after 25 years for my use after deducting tax from the interest generated, which we can say the
cash in hand.Is it right ? Please guide me
Reply

Hi Amit
If you remain invested in equity mutual funds for 25 years the wealth you generate comes
under long term capital gains. Right now there is no tax on that.
Reply
196 Amit September 27, 2011 at 8:17 PM

Hi Anil,
Thanks but if we invest for 15 Years in equity mutual funds then What ? If i invest
for 15 years then will i come under the tax provision or not ?
Reply

Hi Amit
The Income Tax Law as it stands today is that if you remain invested in equity
mutual funds for more than one year you are not liable to any income tax. It is
extremely unlikely that the Government will levy any tax in future. However,
no one can predict what will happen in future.
2/5/2012
Page 63 of 101
Reply
198 GAYATRI September 27, 2011 at 5:08 PM

It was a very enlightening experience to go through your blog while i was surfing through
google to know what and where to invest , SIP seems to be a good options , my question is i
want to start my saving with a small amount for now since i have other priorities to take care
of so can i start with an amount as small as 1000/- rs if yes then where should i invest and for
how long for good returns. Kindly advice
Reply
199 GAYATRI September 27, 2011 at 5:08 PM

HOPE TO HEAR FROM YOU SOON
Reply

Hi Gayatri
If your investment horizon is more than five years and you have risk appetite then you
can invest in some balanced fund like HDFC Balanced Fund.
Reply
201 Munish Singh September 29, 2011 at 3:32 PM

Anil Ji,
I have a 50000 amount in hand except all my saving got it as a bonus this year . I want to
invest it lumpsum in HDFC equity existing SIP folio as market is very down at the moment
and i can leave it for nxt 10 yrs. Kindly guide me Iam doing right to create a better return or
should i go for other option.
Regards,
Reply
2/5/2012
Page 64 of 101

Hi Munish
Apart from HDFC Equity Fund there must be some other funds in your portfolio. Instead of
parking the entire amount in one fund it will be better to distribute the amount among three
or four funds to spread your risk.
Reply
203 Melissa D'Silva October 1, 2011 at 4:59 AM

hello Anil sir,
I am a ty b.com financial marketing student and i am makin a 100 mks project on sipcan u
help me with the history of SIP or how it has evolved over the years. any other kind of
information is also be appreciated. also if you have any particular ideas on how to go about
the project the please let me noe. ill be really grateful.
thx
regards,
melissa
Reply
204 ANIL KUMAR KAPILA October 1, 2011 at 1:59 PM

Hi Melissa
To get the history of SIP and how it has evolved you can look for resources using Google
search. Articles on SIP regularly appear in personal finance magazines like Mutual Fund
Insight, Outlook Money, Investor India, Mint Money etc.You can also look at Business
Sections of newspapers. Most of these magazines have their Websites where back issues are
available. If you share your email ID I can forward you the articles I come across.
Reply
205 Umesh October 1, 2011 at 7:43 PM

I wish to invest in mutual funds thro SIP. What is the procedure to start with. To whom we
should contact to apply,
(a) a bank like HDFC for HDFC funds, ICICI Bank for ICICI funds and such like, (but what
about non banking funds) (b) a stock broker who deals in equity or (c) an agent who deals in
2/5/2012
Page 65 of 101
financial instruments like insurance, postal savings etc. (d) or online sites (are they safe and
reliable).
Do we have to pay any brokerage and such charges. I remember, that some new charges were
imposed on new investors sometime back. Can you please let me know about these charges etc.
Thanks
Umesh
Reply
206 ANIL KUMAR KAPILA October 2, 2011 at 6:44 AM

Hi Umesh
You can directly approach KARVY and CAMS registrars and transfer agents for
mutual funds. Fund houses can also be contacted. No charges are applicable when you
invest directly.
Reply
207 jaimin solanki October 7, 2011 at 1:35 PM

hello Anil,
I am 26. And I am new to this field. I am engineering professioanl & I dont have any basic
idea behind this investment in MFs and SIPs..
Can you please let me know how I can start investing in SIPs. And what is the procedure for
that? And Is there any need to open Demat Account??
And Please suggest that Can future/projected performance of the companies vary? and if
so, Howmuch it can vary??
Thanks in advance
Jaimin Solanki
Ahmedabad..
Reply
2/5/2012
Page 66 of 101
Hi Jaimin
I am also an engineering professional. One can learn basics of financial planning very
easily by reading personal finance magazines.
You have to first construct a portfolio of diversified equity mutual funds. Please read the
post Best Mutual Fund For SIP.
You dont need any demat account for investing in mutual funds. You can go to Mutual
Fund Houses and tender your application there. You will also be required to fill
application for KYC for which a photograph, PAN copy and address proof are needed.
After you start your SIPs you have to monitor the performance of all the funds in your
portfolio as the performance of a fund can deteriorate with time.
Reply
209 Jaimin Solanki October 7, 2011 at 2:46 PM

Thanx Anil,
It was really helpful..
What is KYC??
And from where can I invest in these MFs & SIPs? Is there any online trading site
or any particular suitable site, where I can do this business safely?
Reply

Hi Jaimin
KYC stands for Know Your Customer. Without this no investment can be done in any mutual
fund. You can tender your KYC application at UTI Technology Services or HDFC Mutual
Fund house. You can also approach CAMS and KARVY for investing in mutual funds.
Reply

Anil,
It was really helful guidance. Ill definately share this article with my frineds.
Thanks again.. Thx a lot..
2/5/2012
Page 67 of 101
Reply

Dear Anil,
I have visited & registred on one site fundsindia.com please tell me your views
about this..
Reply
213 Munish Singh October 8, 2011 at 10:27 AM

Dear Mr. Hemant & Anil,
I have also this question in my mind about investing through the site fundsindia.com need
your opinion about its genuineness to start investing .
Regards,
Munish Singh
Reply
214 Umesh October 8, 2011 at 1:25 PM

Hi
Which is the best option in terms of tax savings i.e. which of the three options saves us
maximum income tax, dividend, reinvestment and growth.
Thanks
Umesh
Reply
215 Shashi October 15, 2011 at 5:01 PM

Dear Sir/Madam,
I want innvest Rs 25000/- per month in SIP & 10000/- Per month in ETF Gold for 3 to 5 Year
2/5/2012
Page 68 of 101
pease guide me. Im waiting for ur reply.

Reply

Hi Shashi
While investing the most important thing is to have proper asset allocation among the various
asset classes like equity, debt and gold. Normally exposure to gold should not be more than
10%. I have no idea about your investment in debt. Moreover investment in equity mutual
funds is to meet your long term goals for which investment horizon has to be more than five
years. For investment horizon of three to five years you should have some exposure to debt
and some to balanced funds like HDFC Balanced Fund.
Reply
217 simanchal ratha October 16, 2011 at 11:46 PM

can you please tell me the AMCs or funds that accept subsequent deposits of 500/- through
internet banking . i do not want to make sip and want to invest periodically with as low as
500/- each time as my subsequent deposits .
Reply

you seem to have ignored my question . reason not known
Reply

Hi Simanchal Ratha
There are more than thirty fund houses and hundreds of funds. It is not possible for
anyone to keep such information on his finger tips. You can get this information only
from fund houses.
Reply
2/5/2012
Page 69 of 101

I do not think you as :any one: that is why i put you the question . You can take
time . It is not possible for a layman like me to search fund houses for this
information .
thanks
Reply

Hi Simanchal Ratha
As far as I know most fund houses insist on minimum lump sum investment
amount of Rs 5000/-.Even in the case of monthly SIP in most funds it is Rs
1000/-. Only a few funds permit a monthly SIP of Rs 500. Please get fact sheets
of funds in which you want to invest to get the desired information.
Reply
222 Amit October 17, 2011 at 1:37 PM

Hi Dear,
1. Recently i had started investing Rs 6000/- Per Month (Sip) in ELSS HDFC Tax Saver (G) . I
want to invest for at least 10 years continuously. Please guide me is it the right fund to invest ?
or should i Change it ?
2. I had also started Sip of ICICI Prudential Regular Gold Fund of 6000/- Per month. I want
to invest for at least 10 years continuously. Kindly guide me about this fund also? Is it the
good fund to invest ?????
Reply

Hi Amit
I would like to inform you that from next year you are not likely to get any income tax rebate
on your investment in HDFC Tax Saver Fund. If your purpose of investment is only tax saving
then you can avail this benefit only till March next year.
Normally your investment in gold should not be more than 10%. If you do not have any other
investment in diversified equity mutual funds then it is better to have a portfolio of equity
2/5/2012
Page 70 of 101
mutual funds first before starting your investment in gold.

Reply

Dear Anil,
My purpose is not getting Income tax rebate. My purpose is investment only.
1. Kindly tell me Is HDFC TAX Saver Fund is good Fund to invest it in for 15 Years.?
2. In Gold case, 10% of What ?
Reply

Hi Amit
While investing you should have proper asset allocation in different asset classes like
debt, equity and gold. A typical allocation will be 60% equity, 30% debt and 10% gold.
If tax saving is not your goal then there is no point in investing in a tax saver as tax
savers have a lock in period of three years. It is better to construct a portfolio of
diversified equity mutual funds.
Reply

Dear Anil,
Moreover, except these two funds, i have still the surplus money to invest in Diversified Equity
Mutual Funds. If u recommend i can start one more Sip very easily in Diversified Equity
Mutual Funds without disturbing these two . Is my investment in ICICI Prudential regular
gold Fund & HDFC Tax saver is not good Decision????Please guide me what should i do as i
m very much confused ?????
Reply

Hi Amit
2/5/2012
Page 71 of 101
Please read the post Best Mutual Fund For SIP for selection of funds.
Reply

Hi Anil,
Till today, i had paid only one month SIP for both funds. Can you please guide me how i can
change from these funds ? As in HDFC Taxsaver there is a locking period of three Years, so
can i still change it now ? & if i stop these funds & start new one, will i get back my Rs.
12000/-????
Reply

Hi Amit
If you exit from a fund before one year there is some exit load involved. To avoid that you can
just stop the SIPs in these funds and dont go for redemption if you do not need money now.
You will be able to get the amount invested in HDFC Tax saver only after the lock in period is
over.
You can switch from ICICI Prudential Gold Fund to ICICI Prudential Focused Bluechip
Equity Fund and from HDFC Tax Saver to HDFC Midcap Opportunities Fund. For this using
the existing folios you have to give new SIP applications.
Reply

Is there any Charges for Switching ? Will the money that is already invested in the funds
automatically carries over to the new funds ?
Reply

Hi Amit
You can check the charges from the fact sheet of the fund. In switching many options are
available which you can find from the fund house.
2/5/2012
Page 72 of 101
Reply

Dear Anil,
As HDFC Tax saver has lock in period of three years, so can i switch to HDFC Mid Cap
Opportunities before completing 3 years ?????
Reply

Hi Amit
No you can not.
Reply

Hello,
Can i switch From ICICI Pru. gold fund to ICICI Focussed Bluechip fund ? Will the money
that is invested in ICICI pru. Gold fund automatically carries in to ICICI Focussed Bluechip
fund.?????
Reply

Hi Amit
Normally if you exit from a fund before one year some exit load is applicable which you can
check from the fact sheet of the fund. Hence my suggestion will be to just stop SIP but remain
invested in the fund. In any case some exposure to gold is fine.
Switching option is available in all the funds where lock in period is not applicable.
Reply
236 yashuhanda October 19, 2011 at 2:28 PM
2/5/2012
Page 73 of 101
Dear Mr Hemant,
I have read your articles on TFL guide. They are really helpful to me in planning my goals.
Sir, i have some queries regarding my current investments, please suggest if they are good or i
need to withdraw.
1. HDFC SL CREST premium(50000/-) jave paid one premium & about to pay second.
2. Kotak mahindra super advantage (30000/-) yearly. paid 2.
Please put some light on these investment.
Regards
Yashu Handa
Reply
237 yashuhanda October 24, 2011 at 2:40 PM

Please reply sir
Reply
238 Amit October 21, 2011 at 11:41 AM

Hello Dear ,
I have read your articles on TFL guide. They are really helpful to me in planning my goals.
Sir, i have some queries regarding my some more current investments, please suggest if they
are good or i need to withdraw.
1. HDFC SL CREST premium(50000/-) jave paid one premium & about to pay second.
2. Kotak mahindra super advantage (30000/-) yearly. paid 2 premiums already.
Please put some light on these investment.
Regards
Amit Singla
Reply

Hi Amit & Jashu Handa
It is interesting to see the same question being asked by one person under two names. It
is better to seek advice before investing. You can take the free course being offered by
Hemant.
2/5/2012
Page 74 of 101
Reply

Dear Anil,
Me & Yashu Handa are working together & very good friends, so thats y we asked
the same question to you. Moreover, yashu asked you first this question & when u
havent reply then i posted the same one.
Reply

Dear Anil,
Kindly please guide us. your help will be highly appreciated
Reply

Hi Amit
It is not clear to me what type of guidance you need. In case you want to
know about financial planning please go through all the posts of Hemant.
Regarding insurance it is better to have term insurance if you have
dependents. ULIPs are very costly products and must be avoided.
Reply
243 Amit October 25, 2011 at 9:34 AM

Dear Anil,
We just want to know that should we go further with these
investments or we should stop these investments ?
Reply
2/5/2012
Page 75 of 101

Hi Amit
Investment and insurance should not be mixed.
Reply
245 vivek October 23, 2011 at 7:58 PM

Hi dost,
I need your help and expertise suggestion to take a call on, I would like to start SIP in order to
reach my financial goal for next 10 years, i would request you to suggest me which are the
mutual funds (Equity diversified or balanced )that i can invest (SIP) in order to get at least
15% please suggest me, should be at lower risk but returns min of 15%
Thanks
Vivek
Reply

Hi Vivek
All mutual fund investments are subject to market risks. If your risk appetite is low
dont expect a minimum of 15% returns. In general large cap and balanced funds are
less risky. But your return expectations have to be realistic. Please read the post Best
Mutual Fund For SIP.
Reply
247 Vikas Gor October 24, 2011 at 11:12 AM

I wat to invest 2000/- in SIP for next 10years
Please guide me
Vikas
Reply
2/5/2012
Page 76 of 101

Hi Vikas
Please read the post Best Mutual Fund For SIP.
Reply
249 Amit Ranjan Sahu October 27, 2011 at 1:02 PM

Hi,
I have taken a term insurance from LIC. I have started investing in MF SIPs of
Rs. 2000 in HDFC Top 200 G
Rs. 2000 in DSP BR Top 1000 Equity G
Rs. 1000 in BSL Div Yield Plus G
I however would like to increase the allocation. I have a target of buying a house in the next 6
years time, which would cost me close to 50 lakhs. Kindly suggest the allocation, and any other
fund for investment.
Regards,
Amit
Reply

Hi Amit
Your fund selection is good.You can add one mid and small cap and one multicap fund to
your portfolio.
Reply

my portfolio is like this
hdfc midcap opp 1500
idfc sterling eq 1000
sbi emerging bsns 1500
dspbr microcap 1000
dspbr smal&mid 500
2/5/2012
Page 77 of 101
religr sml&mid 1000

reli eqity opp 1000
rel banking 1000
icici fmcg 500
sbi fmcg 500
reliance pharma 1000
although my funds do not encompass any largecap fundsis there any wrong with these funds
for a period of 2/3 yeras
Reply

and anther one i forgot MIRAE ASST EMER BL CHIP 1000
Reply

Hi Simanchal Ratha
Investment in equity mutual funds is done with an investment horizon of a
minimum of five years. In the short term you can lose your money if you invest in
these funds. Moreover you should not be investing in more than four or five funds.
While selecting funds you should not have more than one fund from a fund house.
Absence of core makes this portfolio very risky.
Reply

sir
what is core ? pl make me learn sir .
besides what i have observed that in last five years midcap/multicaps have
given more returns in comparison with their large cap counterparts .
Fundmanagers seem to be more flexible in selecting stocks when they have to
choose from BSE 500 than BSE 100/200 . perhaps this is the reason why sbi
emerging business still is on the top .
i may be holding some wrong ideas . kindly make me understand .
Reply
2/5/2012
Page 78 of 101

Hi Simanchal Ratha
Please increase your investment horizon if you are serious about investing
in equity mutual funds. In the short term you may lose a lot of money by
investing in equity mutual funds. Large cap and large and midcap funds
provide stability to your portfolio and form core. Other funds come in
satellite of your portfolio. Exposure to more funds in satellite makes your
portfolio highly risky. Proper diversification across funds and fund
houses is required mainly to spread your risk. Over diversification by
having more funds of the same fund house or similar funds of different
fund houses has the potential to reduce your over all returns.
While selecting the funds dont go for flavour of the season. Select funds
from a fund house with consistent track record. For selection of the funds
read the post Best Mutual Fund For SIP.
Reply
256 Raja October 31, 2011 at 4:57 PM

Hi,
Please tell me about Met smart platinum scheme please advice me any scheme for long term
SIP monthly i can invest 10000 Max.
Am 33 years please suggest some good Risk coverage insurance plan
Reply
257 Dr.Sanjay November 2, 2011 at 8:39 PM

hi
im planning for SIP for my child.
I want to invest 1000/- PM for 10 yrs
can u please tell me a good plan for this purpose
itll be ur gr8 help for me
as im very new to it.
thanks a lot
sanjay
Reply
2/5/2012
Page 79 of 101
258 ANIL KUMAR KAPILA November 3, 2011 at 5:59 AM

Hi Dr. Sanjay
What is your goal of investment? Rs 1000/- appears to be a small amount for meeting any
goal.
Reply
259 Narinder Parihar November 7, 2011 at 10:42 PM

Dear Sanjay,
im planning for SIP for my child and want to invest 2500/- PM for 10 yrs
can u please tell me a good and type of plan for this purpose, what is gold plan.
Im very new in this field.
thanks a lot
sanjay
Reply
260 ANIL KUMAR KAPILA November 8, 2011 at 12:02 PM

Hi Narinder
Avoid children plans and have a portfolio of diversified equity mutual funds.
Reply
261 Ani November 13, 2011 at 5:46 PM

Dear Anil,
Excellent site and I appreciate your patient responses to all.
Im staying outside India and would like to invest 10-15 K per month for 3-5 years split in 2-3
SIPs. May you please suggest an one point contact who can guide me through and get the
investment started immediately? Id prefer it be done from Kolkata.
Thanks
Reply
2/5/2012
Page 80 of 101

Hi Ani
Your status outside India as well as the purpose of investment is not clear. Some countries
dont like people residing there investing in India. Investing in Indian mutual funds requires
KYC compliance. Selection of funds depends on investment horizon. For investing in equity
mutual funds your horizon should be more than five years preferably around ten years during
the current difficult times. In the short term there is a possibility of losing your money.
Your short term investment should only be in debt. For medium term you can go for balanced
funds.
Reply
263 RAJ November 15, 2011 at 3:24 PM

hi,
i am RAJ 23yr old.just one year before i started my career in soft company.
my salary is 24k per month..so i planned to invest 10k(per month) for 10 years in sip.
so shall i go with 2 large cap and 2 large & mid cap or one in large cap,
one in large & mid cap, one in multi cap and one in small & mid cap.and i
have selected few funds according to these categories.
large>ICICI Pru Focused Bluechip Eqty (G),DSPBR Top 100 Equity Reg,Franklin India
Bluechip
large @ mid>HDFC Top 200,Birla Sun Life Frontline Equity,Fidelity Equity Fund
(G),,Fidelity India Growth Fund (G),UTI Opportunities,UTI Dividend Yield
multi>Quantum Long Term Equity,HDFC Equity,DSPBR Equity
small and mid>IDFC Premier Equity Fund,ING Dividend Yield,BSL Dividend Yield Plus-G
i m very much confused about it..so give me a suggestion plz..
Reply

Hi Raj
There is no need to ask the same thing at three places. I hope you got your answer.
Reply
265 Anudeep November 17, 2011 at 10:15 PM
2/5/2012
Page 81 of 101
Hi,
Kudos for such an excellent article. After reading the benefits I would like to invest in SIP. I
am 25 years old and earning 50k per month. I would like to invest 10-15k per month. I want to
know:
1. Whether I should go for a single SIP or split it?
2. In case of a split how many large cap and mid cap plans?
3. Is it more profitable if you go for longer tenures like 10,15 years compared to 5 years?
4. Which gives more stability: Large cap or Mid cap?
Cheers,
Anudeep
Reply

Hi Anudeep
Invest in four to five funds to spread your risk. Diversify across fund houses and types of
funds.
Select one large cap, one large and midcap, one multicap and one mid and small cap.
Longer tenures can give higher returns and reduce short term risk.
Large cap funds provide stability and mid and small cap funds have a potential to give
higher returns.
Reply

Hi Anil,
Thank you so much for the prompt reply.
As I am not well versed with SIP plans can you please suggest me some from the
Best Systematic Investment Plans in India list in the article along with which plan
falls in which cap category.
Cheers,
Anudeep
Reply

2/5/2012
Page 82 of 101
Hi Anudeep
Reply
269 Anudeep November 19, 2011 at 11:35 AM

Hi Anil,
I read the post and I must say it is an excellent article.
I am actually bit of an SBI man but could not find any of its plan in the
article. Can you please tell me SBI Magnum Global Fund falls in which
cap category?
Regards,
Anudeep
Reply
270 ANIL KUMAR KAPILA November 19, 2011 at 6:44 PM

Hi Anudeep
While selecting funds for your portfolio only top rated funds based
on present and past performance of good fund houses should be
selected. SBI Fund house does not have a high rating as it has very
few good funds. SBI Magnum Global is a mid and small cap fund
with three star rating. When so many five star rating funds of this
category are available, it does not make any sense to invest in this
fund.
I would like to tell you that while investing it is not good to be
attached to a particular fund house. Diversification across various
fund houses is a must to spread your risk.
Reply

Hi Anil,
Thanks so much for the insight. I have decided to invest in the
following plans:
2/5/2012
Page 83 of 101
LargeCap Funds := Amount

ICICI Prudential Focused Bluechip Equity : 5k
LargeCap & MidCap Funds :=
HDFC Top 200 : 5k
MidCap & SmallCap Funds :=
Birla Sun Life Pure Value : 2k
MultiCap Funds :=
Reliance Equity Opportunities Ret : 2k
I will be extremely grateful if you can give some comments on
the above portfolio.
Regards,
Anudeep
Reply
272 ANIL KUMAR KAPILA November 20, 2011 at 6:24

AM
Hi Anudeep
Your fund selection is very good. In the mid and small
cap space IDFC Premier Equity and Birla Sunlife
Dividend Yield Plus currently enjoy a higher rating than
Birla Sunlife Pure Value. So you can perhaps look at one
of these funds.
I would also like to mention here that it is quite possible
that the funds which are highly rated now may lose their
rating in future. So it is not correct to sit tight on your
portfolio after starting your investments. It is important
to keep a track of your funds and review the performance
of all funds in your portfolio at least once a year so that
you can weed out any non performing fund before it is too
late.
Reply
2/5/2012
Page 84 of 101

Hi Anil,
Thanks again for such a wonderful reply.
Ideally for how long should I invest in the above
portfolio? Maybe 10 years?
What is your opinion about SBI Magnum
Emerging Business (G) plan? It is ranked 1 in
Small & Mid Cap by moneycontrol.com.
Cheers,
Anudeep
Reply
274 ANIL KUMAR KAPILA November 20,

2011 at 1:01 PM
Hi Anudeep
Investment horizon of ten years will be fine.
SBI Magnum Emerging Businesses is a good
fund with a four star rating. IDFC Premier
Equity and Birla Sunlife Dividend Yield Plus
Funds have a five star rating. Top 10% funds
come under 5 five star rating and next 22.5%
come under four star rating.
As I have already mentioned these ratings can
change with time. Hence tracking your funds
after starting investments is the key.
275 Sam November 22, 2011 at 6:03 PM

Hi Hemant,
I am staying away from India for the last 3 4 years and i am 27 years old. I have 3 basic
questions.
1) I am planning to invest two bonds 5000 for 5-6 years and 10000 for 15 years. Please suggest
me the best way for doing.
2) Also can you please suggest whether you can only make articles or can also work as a
2/5/2012
Page 85 of 101
adviser in case if want to invest from you.

3) By going through the comments i have hear somany new words like Debt funds, Equity
funds. also i have read that debt funds will give less returns but secured.. where as equity
funds will give more returns but not secured is it correct.
Reply
276 Sam November 22, 2011 at 6:05 PM

sorry for the Typos..
Reply
277 S Arora November 27, 2011 at 10:22 AM

Sam,
As you are staying outside India. I am sure you wouldnt have any setup in India.
Normally start up will require one time process like KYC, PAN etc.
As NRI, I will not prefer to invest in bonds, as we have lot many restrictions on
investments and then high Tax Rate.
I will suggest invest in MF (incase you are not good in stock market). Again, first
time process is big long but once everything is setup, it easy to maintain and tracked
down.
I am NRI, i started investing around mid 2011. I went through sharekhan to set up
accounts, KYC etc. Now, i have online access to all MF & Stocks so i control them
on internet.
You may find information on equity & Debt fund on moneycontrol.com. They have
a blog where you can find more information.
Reply
278 sam November 28, 2011 at 4:57 PM

Thanks Mr. Arora,
I have PAN and was having a DEMAT account in India. I wanted to know the
2/5/2012
Page 86 of 101
best way to get some knowledge on all the technical terms and want to start
invest. as you have suggested i was going through various blogs but felt like it
would be better taking a session from Advisor is kindof useful.
Reply
279 Resh November 24, 2011 at 3:24 PM

Hi Hemant,
Could you please tell me that if I invest 10000 this year in ELSS and lock for say 5 years from
this year(2011),then should I pay 10000 every year till the fifth year ?
So for this year investment ,I can get a tax exemption.But consecutive years what would be the
case and how should I go about?
Need your valuable guidance!
Reply
280 Rakesh Kumar November 27, 2011 at 12:42 PM

Hi Anil/Hemant,
I am 30 years old. My goal is for 2 crore rupees in 20 years. I am investing SIP 4000/- in
HDFC Top 200 and 2000/- in Reliance Regular Saving.
Please suggest, which more fund I should select and how much amount need to invest to
achieve my goal.
Reply
281 Anil Kumar Kapila November 28, 2011 at 3:30 PM

Hi Rakesh
Your aim should be to save as much as you can and invest in a portfolio of diversified equity
mutual funds in a systematic manner. For selection of funds read the post Best Mutual Fund
For SIP.
Reply
282 Sandeep December 1, 2011 at 5:49 PM

2/5/2012
Page 87 of 101
Hi
I am 30 years old am looking for SIP Plans have gone through your above list
Am planning to invest 1000 each in 3 plan .Pls suggest whether i should go for it
1)HDFC Equity Fund 2)Reliance Growth Fund 3)SBI Magnum Global Fund
want to invest 1000 in each funds for period of 10yrs + ..or you can suggest me. One more
request how should i go and buy this sip plan pls suggest
Regards
Sandeep
Reply
283 Anil Kumar Kapila December 1, 2011 at 6:02 PM

Hi Sandeep
Please read the post- Best Mutual Fund For SIP.
Reply
284 Hemant Beniwal December 1, 2011 at 6:16 PM

Hi Sandeep,
30 is a perfect age to start serious investing & SIP is a great way to invest. But you should
not limit your horizon to 10 years investments should be linked to the goals. If your
planned retirement is at age of 55 your investment horizon should be 25 years or even
more. If you talk about individual funds that you have selected they all have delivered
decent performance. But as a portfolio they are not right combination HDFC equity is a
Multi Cap Fund & others are mid cap Fund. As you are young you can take such risk
but as you are a new to the Mutual Fund World you should replace a Midcap Fund with
Large Cap Fund.
Second issue is selection of SBI Magnum Global this clearly shows how a fund enters a
clients portfolio with a short term good performance. My suggestion is you should
rethink on your portfolio selection Read
http://www.tflguide.com/2011/07/best-mutual-fund-for-sip.html
You can buy these SIPs through some local agent, your bank or even directly from asset
Management Company.
Reply
285 Raghava December 7, 2011 at 9:01 PM
2/5/2012
Page 88 of 101
Hi,
Thanks for sharing the valuable knowledge.
I am 32 years old, investing 1000 each month from Mar 2010 in the plan Reliance Regular
Savings Fund Equity Plan Growth Option. I hope it is not giving the good returns (i guess
its current value is not good). Could you please suggest whether i need to continue in this plan
(or) advice me the other best Reliance plan if exists (or) Best to exit from it and start a fresh
SIP investment in any well grown Plan
thanks & regards
Raghav
Reply
286 Hemant Beniwal December 8, 2011 at 9:34 AM

Hi Raghava,
Thats true Reliance Regular Savings Fund is not performing good in last 1 year it has
given -20.5% returns but multi cap category has given -16.8% & Sensex is down by
15.3%. In equity market, where the game is of inches this difference looks like miles. But
do you know whats the actual problem with Reliance Regular Savings Fund thats
YOU. Why? Because your focus is on best fund which is just a myth. You have asked
advice me the other best Reliance plan if exists (or) Best to exit from it. So I will reply
to this answer next year same date because it easy to see in past & tell which was the
best performing fund.
Do you know Average Equity markets in US have given return of 9.14% from 1991 to
2010 but what investor got was just 3.27%. Can you guess why this happened? Because
people were looking for BEST FUNDS & not concentrating on other factors which are
more important like portfolio construction, asset allocation & most important your
behavior.
Reply
287 Md fahim akram December 8, 2011 at 9:36 AM

Dear sir,
I am Fahim, 26 year old, my salary is 22k. Only seven year remains in my current service.
I am investing my savings monthly through SIP in folowing funds.
1. 4000 GPF
2. 2000 SERVICE INSURANCE
3. 1500 ICICI PRUDENTIAL LIFETIME SUPER MAXIMISER from last 5 years.
3. 2000 IDFC PREMIER EQUITY G
4. 1000 HDFC EQUITY G
2/5/2012
Page 89 of 101
5. 1000 ICICI DISCOVERY G

Please guide me, what can I do for best returns.
I think to buy RELIANCE GOLD SAVING FUND, by replacing discovery fund.
Thank you!
09249600000
Reply

Dear Fahim,
Why you are saying that only 7 years are left in your retirement are you working in
merchant navy.
Reply

Dear Fahim,
There is no need to replace discovery to buy some gold fund But you should check
expenses of ICICI PRUDENTIAL LIFETIME SUPER
Reply
290 Md fahim akram December 8, 2011 at 2:39 PM

Pls reply me.
Reply
291 sanjay December 8, 2011 at 4:47 PM

hi
im planning for SIP for my child.
I want to invest 1000/- PM for 10 yrs
can u please tell me a good plan for this purpose
itll be ur gr8 help for me
as im very new to it.
thanks a lot
2/5/2012
Page 90 of 101
sanjay rawat
Reply
292 Md fahim akram December 8, 2011 at 11:17 PM

Dear sir,
Actual I am a defence personnel.
After 7 years I want to do civil jobs as railway and banking.pls sugest me.
Thank you!
Reply
293 Prabhakar singh December 10, 2011 at 1:55 AM

sir,
I am new comer for plan to start mf sip of Rs/-4000 in four different fund for 10 years.
Please sagest me for which fund is batter
Reply
294 ANIL KUMAR KAPILA December 10, 2011 at 12:54 PM

Hi Prabhakar Singh
Please read the post-Best Mutual Fund For SIP.
Reply
295 Sujith December 11, 2011 at 6:57 PM

Hi Hemant,
Nice to hear from you about SIP with such a beautiful & informative presentation
I am 27 & have planned to Invest regularly in SIP of 7K per month. Also i have 1.5 Lacs with
me which i can invest effortlessly to any of the good investment firms.
Can you suggest how to go for this ?
Need your suggestions where to invest ?
2/5/2012
Page 91 of 101
Regards
Reply
296 ANIL KUMAR KAPILA December 14, 2011 at 10:46 AM

Hi Sujith
Reply
297 ratnakarreddy December 12, 2011 at 4:43 PM

Hi sir,
i am following your article, it is really very very helpful to me and it is having valuable stuff
and i would like to ask you one questions about investing the money in mutual fund in SIP
manner.
As of now i understood that it is good to invest in HDFC TOP 200 and now i am thinking that
is it good to invest money in the mutual funds when, the Sensex floating on 16k or its better to
wait till Sensex reaches 20000 points .
i am planning to invest monthly 2000 in this scheme for long term period like 20 to 30 years,
suggest me please me.
With Regards
ratnakarreddy
Reply

Hi Ratankar,
Go ahead & make your investment.
Reply
299 varun December 13, 2011 at 6:31 PM

my age is 23 .so what best combination of investment should i take so as to get 2 crore in 15
years..
2/5/2012
Page 92 of 101
Reply
300 ANIL KUMAR KAPILA December 14, 2011 at 10:41 AM

Hi Varun
Nobody can suggest you without knowing your income, expenses, savings, risk appetite,
dependents etc.
Reply
301 Anudeep December 26, 2011 at 10:10 PM

Hi,
I am 25 years old and earning 50k per month. I have started investing 18k per month in SIP in
various types of funds.
I know that a portfolio should have a balance of equity and debt funds. As equity is taken care
of, I would like to know the best debt funds available in the market. A little guidance will be
helpful.
Regards,
Anudeep
Reply
302 Hemant Beniwal December 28, 2011 at 8:50 AM

Hi Anudeep,
You can start with some Short Term Fund like Templeton India Short Term.
Reply
303 Rajeshkanna December 29, 2011 at 9:58 AM

Hi I am M/39 , now i want to invest in SIP , can i know which is good M.F to invest , give at
least 4 , 5 ., also could u suggest any other scheme to invest and details.
Reply
2/5/2012
Page 93 of 101
304 varun January 2, 2012 at 6:40 PM

hi anil/hemant my income is 25k unmarried .as market is very low so cant we invest directly
into equities per month 2000 or 3000 rs or its good to go for any mutual fund because so many
people told me that your saving will be almost double in 3 years almost every share is at its
low..please suggest me 2 mutual funds where should i start .and to whom we have to
contactshall i go by any broking firm or what..thankswhat should be my overal money
if i invest 3000 per month for 10 years in sip..and what we have to do if we dun wan to
continue through the 1 fundafter how many years we can take back our money
Reply
305 Anoop January 10, 2012 at 11:38 AM

Hi Hemant,
First of all, I would like to give you guys a heartfelt thanks for providing such gr8 knowledge
in such simple language. I have just started my career 3 mnths back and was looking for
planning my finances when i happened to come to TFL. Thank God for that. Ive gone
through ur E Course and most of ur articles. And now Ive taken a term plan, a family floater
med insurance and planning to start SIP from this mnth. Im planning to start with 5k/mnth
and increase to 10k in 1 yr. I also wanted to put SIP in ELSS, but waiting for it to become
clearer after DTC. Im 27/ professional, married looking at long term investment (15- 20
yrs+). I would be glad if you could comment on my selection of MFs/ my approach.
DSPBR Top 100
ICICI Prudential Focused Bluechip
HDFC Top 200
IDFC Premier Equity Plan A
Birla Sunlife Pure Value
Thanks in advance and once again Hats off to the TFL team for sharing your expertise on
such a platform.
Reply
306 S Arora January 10, 2012 at 12:17 PM

Dear Anoop,
Your selections of MF are good. Please replace Birla Sunlife Pure Value with Birla
Sunlife Dividend Yield Fund.
Best of Luck
SA
2/5/2012
Page 94 of 101
Reply
307 Anoop January 11, 2012 at 8:33 AM

Thanks Aroraji for your suggestion.
Will do that.
Reply
308 Pritesh January 10, 2012 at 12:30 PM

Hi Hemant,
I have few queries regarding SIP in mutual funds.
1. Are the SIP schemes come with lock in period?
2. If I start an SIP (Rs. 1000) from January-2012 and plan for 3 years of
horizon then I will have to pay last installment in December-2014. Can I
withdraw all my earned amount in January-2015? If yes then What will
be tax implication in this case?
Reply
309 B. K. SINGH January 11, 2012 at 10:27 PM

i am a beginner in investing. i want to know how get maximum of my hard earn money.
Reply
310 Amjad January 22, 2012 at 8:33 AM

Hi Guys,
I have cash in saving A/C upto 1 lakhs, which i may need for my disposal in leas that 2-3
months, how can i use thsi in relation to an SIP or u have anyother option.
Thanks
Reply
2/5/2012
Page 95 of 101
311 Sowmi Narayanan January 23, 2012 at 2:23 PM

Dear Hemant,
I would like discuss this article along with the other one Eighth Wonder of the World against
investing in PPF.
Q1) I am wondering where is the concept of compounding comes in SIP and it works just
based on the Rupee Cost Average rule only. I think Reinvesting the profit / interest is NOT
considered as Compounding. SIP yields good returns because of the volatility nature of equity
markets. This gives best returns only if there is extreme volatility and if the market goes with
minimal volatility you end up in less profit. Also even in SIP we need to make a close
monitoring and come out of it once we reaches our targeted returns. Otherwise there is chance
that our profits will get eroded in a quick time and you need to wait minimum 3 to 4 years for
the Rupee Cost Averaging happens again. I personally experienced this. No mutual fund
company declares interest compounding interest annually like PPF.
Q2) On the other side if you take PPF this removes all of the above issues like close monitoring
etc and I believe only PPF alone gives the real benefit of compounding besides tax benefits. No
other instruments exists to match this. Do you think any other financial instruments / methods
exists to give the same return as if i invest Rs 1000 every month for 25 to 35 years in PPF
continuously.
Q3) Also is there is any mutual fund exists for more than 25 years like PPF? The reason
behind this question is i have seen many good funds like Magnum contra , reliance vision ,
growth are all considered to be the best mutual funds across the globe but if you see their
current ratings it all dropped to three str ratings. I am not sure whether the fund houses will
keep them or close them in next few years. So even it i performs the power of compounding
may get abruptly get closed by the fund houses. But in PPF the probability of happening this
would be very less and this scheme exits already for more than several decades.
I sincerely request you to validate my thoughts and provide clear directions on this topic with
your detailed analysis.
Cheers
Sowmi
Reply
312 Hemant Beniwal January 31, 2012 at 5:31 PM

Hi Sowmi,
Please find my reply to your questions
2/5/2012
Page 96 of 101
Q1. You rightly said but how we can compare 2 products returns are always mentioned
in CAGR (compounded annualised growth rate). Just think of school days when we were
asked to compare length of train with length of car or any other measurement. So when
we have to compare returns of 2 investment products compounding can be used.
Secondly what is compounding? Compounding is getting returns on returns on this basis
equities have daily compounding.
For Eg if you invest Rs 100 today & you get return of 1% on 1st feb, your money will
turn into Rs 101. Next day you returns will get returns on 100+1 so this is compounding.
Q2. PPF is a awesome long term debt investment but we cant compare it with equity
returns.
http://www.tflguide.com/2011/03/important-charts-to-make-wealth.html
Q3. If you would like to avoid fund management risk you can invest in Index funds or
ETFs.
Hope I clarify.
Reply
313 Ranjna January 24, 2012 at 4:15 PM

Hemant Ji ,
Plz put your comment on sowmi matter. I am planning to start the SIP but by reading this
again stopped and confused.
Regards,
Reply

Dear Hemant,
I am surprised why none of my questions are answered so far by you. I know there is NO
FREE LUNCH in this world and we can not ask solutions in the open forum like this. I fully
agree it is unethical and not a professional way too. In my view so far i havent asked anything
similar to this and even in the above article i compared PPF against Equity SIP concept
because I really got confused and i feel we need to remove some misconception. Otherwise we
all end up like Ranjana. Hope you agree.
Cheers
Sowmi
Reply
2/5/2012
Page 97 of 101

Hi Sowmi,
Actually I am stuck with some work & not getting any time to reply queries/comments. I
will reply to all pending queries by Sunday.
Reply
316 Rupali Jaiswal February 1, 2012 at 11:52 PM

thank you hemant.. for subscribing and helping..i also want to become a good
financial planer and want to make other people life financially better.i did mba in
finance. pls give me your valuable guidelines to fulfil my dream,my vision.,i
alsowant to that should we invest in gold fund or gold etf ? what is the difference
between them.and which have more returns?
Reply
317 deshmukh January 26, 2012 at 8:35 PM

i have hdfc insurance standerd plan for 15 yr, i think to be contineu are close after 3 yr. pl
suggest..
Reply

I am surprised why this group is reluctant to discuss the topic / questions i have raised earlier.
why we are so reluctant to explore the best way to reap the power of compounding even after
knowing it. I request the group members to explore their own resources and contacts and
provide their views for my above questionsposted on Sowmi Narayanan January 23, 2012 at
2:23 PM. Thanks.
Reply

Hi Sowmi,
I have replied your question.
2/5/2012
Page 98 of 101
It is not that I dont want to reply your questions but I have limited time there are still
126 comments that are un-replied & may be 20-30 emails I told you that I will reply
your queries by Sunday but unexpectedly there were 100 new comments on latest
articles.
Reply
Leave a Comment
Name *
E-mail *
Website
Notify me of followup comments via e-mail

Submit
Notify me of new posts by email.

Subscribe & Get
1. WEEKLY Updates
2. Personal Finance E-Book
Your name...
Subscribe

Popular
Recent
Comments
Tags
Popular Posts
2/5/2012
Page 99 of 101
LIC Jeevan Ankur
Returns are just 1.53%
NHAI and PFC Tax Free Bonds
Best Mutual Funds to Invest in 2012 in India
2/5/2012
Page 100 of 101
Which
is the best ELSS Mutual Fund for 2012?
Simple Tax Planning Guide

Join TFL on Facebook

The Financial Literates
on Facebook
Like
1,190 people like The Financial Literates.
Parul
Sunil
Shubham
Hardik
Ranjit
Saikat
Sanjay
Shajahan
288 followers

NAV
2/5/2012
Page 101 of 101
WordPress Admin
Random Posts

Recent Comments

8 Most Important Mutual Fund Questions

New Pension Scheme (NPS)
What are your plans with bonus pay?
?
Best Mutual Funds to Invest in 2012 in India - 192 comments

LIC Jeevan Ankur Returns are just 1.53% - 139 comments
HDFC Life Click 2 Protect - Me Too - 66 comments
Apollo Munich Optima Restore - it's different! - 58 comments
Disclaimer
All the content on this blog (tflguide) is solely for the readers general information. This blog
contains our personal commentary on issues that interest us. Nothing on this blog is intended
to be a personal advice and reader is himself/herself responsible for their decisions. Before
acting on any of the information provided, consult your financial advisor. Read More
Copyright 2009 - 2012 | The Financial Literates-All Rights Reserved. | Sitemap | Archives
Designed by ThesisCustomizationService
2/5/2012

Magic of Mutual Fund SIP

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Magic of Mutual Fund SIP

Загружено:

Авторское право:

Доступные форматы

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

Investing is not a Number Game,

Your email address...

Magic of Mutual Fund Systematic Investment

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

What is Systematic Investment Plan?

Benefits of Systematic Investment Plan

What is your equation to investments:

Best Systematic Investment Plans in India

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

*Calculations are done on 1st day of 2011 Monthly Investment of Rs 1000

Systematic Investment Plan Presentation

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

You can Download Systematic Investment Presentation ppt

Systematic Investment Plan Calculator

Figures are in Dollar($) but you can treat them in Rupees.

Simple Savings Calculator

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

Determine how much savings from a deposit.

Child Future Plan

Bond & Debt Fund

IDFC Infra Bonds

Bajaj Life Insurance

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

Your email address...

{ 319 comments read them below or add one }

1 Sanjay Jain February 7, 2011 at 12:25 PM

2 Hemant Beniwal February 8, 2011 at 10:02 AM

3 Ashish February 7, 2011 at 8:22 PM

4 Hemant Beniwal February 8, 2011 at 10:13 AM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

5 ashish October 22, 2011 at 7:56 PM

6 Gurdial February 8, 2011 at 11:12 AM

7 Hemant Beniwal February 9, 2011 at 9:11 AM

8 Munish February 8, 2011 at 1:30 PM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

9 Hemant Beniwal February 9, 2011 at 9:03 AM

10 paritosh February 8, 2011 at 4:23 PM

11 Hemant Beniwal February 9, 2011 at 1:49 PM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

12 Smart Singh February 8, 2011 at 8:14 PM

13 Hemant Beniwal February 9, 2011 at 1:44 PM

14 Smart Singh February 9, 2011 at 2:32 PM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

best feature of SIPs.

15 Hemant Beniwal February 9, 2011 at 3:23 PM

16 Jashanpreet Singh February 9, 2011 at 8:41 AM

17 Hemant Beniwal February 9, 2011 at 1:36 PM

18 ANIL KUMAR KAPILA May 31, 2011 at 6:54 PM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

19 srinivsu February 9, 2011 at 9:50 AM

20 Hemant Beniwal February 9, 2011 at 1:37 PM

21 Rayan Fernandes February 9, 2011 at 5:59 PM

22 Hemant Beniwal February 9, 2011 at 6:45 PM

23 Nikhil Shah February 14, 2011 at 12:13 AM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

24 Hemant Beniwal February 14, 2011 at 12:19 AM

25 nandu February 14, 2011 at 11:48 AM

26 Hemant Beniwal February 14, 2011 at 11:52 AM

Systematic Investment Plan | Mutual Fund | SIP | Best Presentation

27 nandu February 14, 2011 at 12:16 PM