SIPs for Education & Retirement
Ali On Content / 03 Aug 2009
If you have the time and wherewithal, you must check whether the fund you wish to invest in has delivered risk adjusted returns above its peer group. This information is available in the public domain through magazines and websites.
Q. I have designed a systematic investment plan for child education, retirement, etc. through the following diversified mutual funds totalling Rs 8,000 per month for a period of 10 to 15 years. Every 3 years, the SIP will be reviewed, if the return is above 15-20%, then the same fund / scheme will be continued for further period. I am an NRE working woman aged 33, husband’s age 39, 3 children (two daughters of 5 years and 3 years age and one son of 3 years age). Long term plan designed for 15 years. I want to accumulate Rs 58 lakh in 15 years with my SIP investment of Rs 14.40 lakh. Is my expectation reasonable? Are these fund houses / funds good from long term point of view?
* HDFC Top 200 – Growth fund – Rs 1,000 per month
* DSP Blackrock Top 100 Equity Fund – Gr – Rs 1,000 pm
* Franklin Prima Plus Fund – Growth – Rs 1,000 per month
* ICICI Prudential Infrastructure Gr Fund – Rs 2,000 pm
* Sundaram Select Mid Cap Growth Fund – Rs 1,000 pm
* Reliance Growth Fund – Rs 1,000 per month* Reliance Diversified Power sector fund – Rs 1,000 per month.
- Mrs John M Varkey, on email
A. Mrs. Varkey, yes, you are likely to accumulate a similar amount in the period. But to increase the likelihood, would you be willing to increase the SIP to about Rs 10,000? You must also be aware of the need for your savings. (That is, why do you need Rs 58 lakh? What is the product or service you wish to buy with the sum? What is the inflation impact on the present price of the goods?) It will help you fine tune your strategy. Instead of keeping an absolute number as 15% to 20% gains for evaluating the funds, you must also study the schemes’ relative performance to their peer group and also to the benchmark index before making a decision to change the scheme. If you have the time and wherewithal, you must also check whether the fund has delivered risk adjusted returns above its peer group. This information is available in the public domain through magazines and websites. Your choice of funds is good. I do not see the need for change.
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.