Financial Guidance - SIP advice
Srujani Panda / 16 Dec 2011
1- My investment plan is for 10-12 years, to achieve a corpus of Rs 60 lakh for my grandchild’s education.
2- I wish to continue to invest Rs 20000 per month through SIPs.
3- Please recommend/suggest a portfolio plan for me.
I sincerely thank you and the management of DSIJ for the prompt and valuable services you provide to your readers.
- P P Dhamangaonkar
Answer:
| Goal | Grandchild’s education |
| Time Horizon | 10-12 yrs |
| SIP | Rs 20000 p.m. |
| Target Corpus | Rs 60 lakh |
| Risk Profile | - |
With the information you have provided, I suggest that you build a moderate-aggressive portfolio of investments in order to achieve the desired corpus of Rs 60 lakh for your grandchild’s education in the span of 12 years. Your planned SIP of Rs 20000 is sufficient for this purpose.
Therefore, with a moderate-aggressive risk appetite, 65 per of your SIPs can go into equity schemes, while 35 per cent can go into debt instruments.
A major chunk of the equity portion can be directed into Large-Cap funds like the HDCF Top 200 Fund and the ICICI Prudential Focused Bluechip Equity Fund. These are the top performing funds that have delivered a CAGR of 28 to 30 per cent over the past three years, and being Large-Cap oriented, would provide a sense of relative stability to the portfolio.
In order to accelerate growth in your portfolio, the remaining portion can be invested in HDFC Equity Fund and IDFC Premier Equity Fund, as these are aggressive funds, yet have a consistent performance track record.
The remaining 35 per cent can be invested in debt funds like the Templeton India Short Term Income Plan or Templeton India Low Duration Fund, which currently have a yield-to-maturity of 10.08 per cent and 9.89 per cent respectively – this refers to the interest rate being earned by the bonds in their portfolio (pre-expenses). Put together, these will create a moderate-aggressive portfolio.
Therefore, with a moderate-aggressive risk appetite, 65 per of your SIPs can go into equity schemes, while 35 per cent can go into debt instruments.
A major chunk of the equity portion can be directed into Large-Cap funds like the HDCF Top 200 Fund and the ICICI Prudential Focused Bluechip Equity Fund. These are the top performing funds that have delivered a CAGR of 28 to 30 per cent over the past three years, and being Large-Cap oriented, would provide a sense of relative stability to the portfolio.
| Absolute Returns (%) | CAGR (%) | |||||
| Scheme Name | 3 Months | 6 Months | 9 Months | 1 Year | 3 Years | 5 Years |
| Benchmark | ||||||
| BSE Sensex | 2.0084 | -11.4911 | -9.2927 | -15.4396 | 21.1471 | 3.5138 |
| Diversified Large-Cap | ||||||
| HDFC Top 200(D) | 0.1503 | -11.4721 | -8.1032 | -16.3859 | 28.0167 | 10.7644 |
| ICICI Pru Focused Bluechip Equity-Ret(D) | 4.055 | -6.4453 | -2.3777 | -7.5583 | 30.3793 | |
In order to accelerate growth in your portfolio, the remaining portion can be invested in HDFC Equity Fund and IDFC Premier Equity Fund, as these are aggressive funds, yet have a consistent performance track record.
The remaining 35 per cent can be invested in debt funds like the Templeton India Short Term Income Plan or Templeton India Low Duration Fund, which currently have a yield-to-maturity of 10.08 per cent and 9.89 per cent respectively – this refers to the interest rate being earned by the bonds in their portfolio (pre-expenses). Put together, these will create a moderate-aggressive portfolio.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.