Do you suggest SIP or lump sum investments

Thanks for the kind words about Advisorkhoj. Please see our point-by-point replies to your queries as follows -

1. We suggest both - SIP and lump sum. SIP is suggested as you might have monthly investible surpluses. one time investments can be suggested if you have a lump sum amount in hand. However, even if you have a lump sum amount in hand you might be worried about the market levels. Therefore, you can invest the lump sum in a liquid / ultra short fund and transfer to balanced funds or large cap funds through weekly STPs in the next 12 - 15 months.

2. As your risk profile is moderate you should not invest in mid cap funds. Large cap funds and balanced funds could be good for you. There is no fixed ratio in which one should split the investments between two category of funds. Having said that, you may go with 50-50% allocation.

3. The suggested portfolio based on your risk appetite can be - Large cap funds (SBI Bluechip Fund, Birla Sun Life Equity Fund and Kotak Select focus Fund) and Balanced Funds (ICICI Prudential Balanced Fund, HDFC Balanced Fund and SBI Magnum Balanced Fund)

4. The funds selected by you are all good but Mirae Asset Emerging Bluechip Fund, being a mid cap fund is not suitable for your risk profile. Again, split of investment percentage can be equal. For example if you are investing in 4 funds, let it be 25% in each.

5. Our final suggestion is that your investment horizon should be minimum 5 years if you invest in large cap and balanced funds.

Hope you find our suggestions useful.

Thanks for writing to Advisorkhoj.