I wish to invest 60 Lacs in 6 Equity MFs for 10 Lacs each for 20 years or more

I have Rs. 60 lac which I got through capital gains through sale of property. I wish to invest all the amount in 6 equity MF's of 10 lac each in the next bear market for 20 or more years and do SWP of Rs. 5000 in each fund after 1 yr as I have no other income. I am 50 years old with wife and 2 sons studying college. I am also considering selling all the units in the next bull market and vice versa. I already invested 10 lac in 1st week of march 2016. Not interested in keeping money in SB AC and doing SIP. Kindly advise on whether it is the right thing to do? 1. ICICI Pru Val Disc Fund Direct Growth, 2. Franklin India High Growth Companies Fund, 3. Uti Midcap Opp Fund, 4. DSPBR Micro Cap, 5. Franklin India Smaller Companies Fund, 6. HDFC Midcap Fund. Kindly advise?

Jul 20, 2016 by Siva Kumarraju, | Mutual Fund

It is heartening to note that you do not want to keep money idle in bank account and invest in mutual funds for the long term.

The funds selected by you are all top performing but the last 4 funds – DSPBR Micro Cap, Franklin India Smaller Companies and HDFC Midcap Fund – are mid and small cap funds. The first two are diversified equity funds. Please note that mid and small cap funds are risky than diversified equity funds, therefore, the investment horizon for these funds should ideally be more than that of diversified equity funds. You are aged 50 and of your risk profile is moderately high to very high then investing in these funds makes sense as you have an investment horizon of 20+ years.

Availing SWP for your regular withdrawal is a good idea. Have you read our articles on SWP? If not, please have a look at the following –

https://www.advisorkhoj.com/articles/Mutual-Funds/SWP:-ICICI-Prudential-Balanced-Fund-can-be-a-good-option-for-regular-returns

https://www.advisorkhoj.com/articles/Mutual-Funds/Best-Mutual-Funds-SWP-returns:-Superb-performance-by-ICICI-Prudential-Value-Discovery-Fund

View All Queries

You haven't found the answer for your queries? Do post your queries to us.
POST A QUERY