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Mutual Funds

Discussion in 'Mutual Funds' started by 4barima, Jul 15, 2017.

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  1. 4barima

    4barima Member

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    Hi Mr. Shabbir,


    Based on your advice I have rejected my bank's recommendation to invest in ULIP. I am planning to move around Rs. 30 Lakhs to Liquid funds with ICICI bank and go the STP route to Mutual Funds. I intend on having equity to debt ratio of 60:40 in two to three Mutual Funds. I am pushing 66 years of age and have an investment horizon of 7 to 10 years, basically for legacy planning. Additionally, I am also contemplating on investing in direct equity a sum of Rs. 5 Lakhs through Karvy Financial Services Co. They are based in Hyderabad.

    Your advice on the above, fund house, equity exposure & debt to equity ratio in mutual funds will be much appreciated.


    Regards


    Mohammed Abdulbari
     
    4barima, Jul 15, 2017
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  2. drjlbansal

    drjlbansal Member

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    Dear Abdul,Invest only in balance fund and a multicap fund.As your investment period is 7-10 years.Direct equity can give good return but with underlying risk.
     
    drjlbansal, Jul 15, 2017
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  3. shabbir

    shabbir Administrator Staff Member

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    Possibly one of the best decision you may have taken because the return was less than the savings account interest rate.

    I am not an advisor but more of equity investor but your plans look ok to me.

    Never. Invest in direct funds and not through any brokers because you are unnecessary paying 1% as expense to them without any benefit that you get from them.
     
    shabbir, Jul 16, 2017
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  4. bhat64

    bhat64 Apprentice

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    Congrats for ditching ULIP! I am not an investment advisor but my opinion is that at your age unless you really know the direct equity route really well just stay away from it and the accompanying risks and tension that may come with it. If you want have a small 10 percent exposure. I were you I would have 2 equity diversified multicap MFs and a couple debt funds like liquid or ultra short term funds and a couple balanced funds so a total of around 5-6 funds and lead a stress free life


    Sent from my iPhone using DIY Technical Analysis mobile app
     
    bhat64, Jul 16, 2017
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  5. 4barima

    4barima Member

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    Thank you Mr. Bansal, your advice is much appreciated. I have not had exposure to Direct Equity, wanted to give a shot at it. Do you think it is the right time for it with the sensex at its all time high.
     
    4barima, Jul 16, 2017
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  6. 4barima

    4barima Member

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    Thank you Mr. Bhat for your concern for me and kind response. This is really appreciated. Your advice make sense.
     
    4barima, Jul 16, 2017
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  7. 4barima

    4barima Member

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    Thank you Mr. Shabbir for your advice as well. Its much appreciated.
     
    4barima, Jul 16, 2017
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  8. suhel_b

    suhel_b Member

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    This is why this space is created. Hats off Shabbir .
    It's very strange that though banks knows that everyone is aware about stupidity of ULIPs , they still try to sell it to people!!!



    Sent from my iPhone using DIY Technical Analysis mobile app
     
    suhel_b, Jul 23, 2017
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  9. shabbir

    shabbir Administrator Staff Member

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    Thanks and yes the noise in the finance domain leads me to my blog and this community website.
     
    shabbir, Jul 23, 2017
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