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MutualFundInvestmentAdvice MutualFundInvestmentStrategies +4 RelatedQuestions

How do i allocate Rs 5 lakhs in mutual funds so as to Whichisthebestmutualfundforonetime

get maximum benets? Time horizon for my investment,timehorizon10to12years?

investment can be taken as 5 years from now. Needadvice:Isitworthtoinvestinthisfundfora

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Mutualfundinvestingmadeaseasyasbuyingmovietickets. Iam55yearsoldandIhavenowanamountofRs33

2Answers theendoftwoyearsforhigherstudies.Icaninvest
Shailesh Mahajan, I advise people on investing in MFs
Invest in MFs, pleaseadvisebestmutualfund?

>> for minimum 5 years

>> in 5-star-rated Balanced or MultiCap Mutual Funds MoreRelatedQuestions

>> taking the monthly SIP route.

I would NOT recommend lumpsum investments in MFs. But investments only
through monthly SIP. 5Followers
I would NOT recommend direct investments in shares(=stocks) at all, as it is Very

Under the current market situation, I would recommend investment in 5-star-rated

Balanced MFs taking the weekly/monthly SIP route.

The following text (it is almost like a quick training program) will help you in
understanding how to become rich in a very systematic manner without losing your

Some inputs on saving before investing:

Most of the young people in India today, spend their entire earnings on trying to show
o their wealth by splurging on the latest mobile phones, latest watches, latest bikes,
latest cars, latest gadgets, expensive restaurants. to impress their boy/girl
friends & the society in general.

Almost everything is purchased on loan with monthly EMls with Very High Hidden-
Interest-Rates. So, they live beyond their means and thus save almost nothing.

So, the best way to save money is to lead a reasonably simple life like the
Billionaire Mr Warren Buet and our own Billionaires, Infosys founders, like Mr
Murthy & Mr Nilekani.
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Most of the people think,

>> (Monthly Earnings minus Monthly Expenses) = (Monthly Savings)

In reality (as per the Billionaire Warren Buet), it should be,

>> (Monthly Earnings minus Monthly Savings) = (MonthlyExpenses)

So, you should FIRST put your money in savings (=investment) on a monthly
basis and THEN start spending for the month from the balance money available
to you after your monthly systematic savings/investments.

Assuming that you start saving using the simple tips stated above.

Then the next question is: How to invest?

1. Invest in PF, ELSS to save taxes.

2. The best investment is to buy your rst house by taking housing loan from an
organization like HDFC.

3. Before or after buying your own house, you should invest whatever extra
money you have

a. in AAA-rated Bank or Company FDs or NCDs (if you want the money
in less that 5 years) and

b. in Equity Oriented 5-star-rated Mutual Funds (if you can keep the
money invested for minimum 56 years). This investment in MFs should
be donetaking the SIP route as explained below.

Invest Rs. X,000 per month (SIP) in each or some of these MFs:

>> For Tax Saving:

Axis Long Term Equity Fund | Invest Online (This is ELSS for tax saving & is
also a very good investment.)

>> Hybrid / Balanced Equity Oriented MFs (Very Low Risk, with doubling of
investment in about FIVE years)

>> In this order of priority:

SBI Magnum Balanced Fund | Invest Online

L&T India Prudence Fund

>> Once you are familiar with investments in MFs, you may also like to make
investments in MultiCap MFs.

All are good for Long-Term (=more than 5 years) investment.

More explanation in paras below.

I am giving below some basic inputs on how to make safe investments in Mutual
Funds on a monthly basis and how to double your money every 45 years.

What are Mutual Funds (=MFs)?

When we invest directly in the stock market, we purchase shares of AsianPaints,

Infosys, ITC, Nestle, TCS. But, as we are not experts, many times we buy & sell
shares (=stocks) at wrong prices which lead to unexpected losses. 1
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So, instead of shares, wise people purchase MFs. Each MF is managed by a Fund
Manager who is an expert in buying & selling of shares. So, when you buy a mutual
fund worth Rs. 10,000/-, the Fund Manager buys many shares worth total Rs. 10,000/-
making sure that he is buying them at the right price. So,when you buy an MF, you
dont have to worry about buying individual shares. The Fund Manager does it for

MFs typically give about 15% TAX-FREE returns per year in the long run. In other
words, if you invest in Mutual Funds for 45 years, then your invested money will
double in 45 years. (In Bank/Company Fixed Deposits, Recur... (more)

Upvote 4 Downvote Comments 2+


Hetal M Kukadiya, Designated Partner at HKVK


Greeting !!

Please refer below link and articles of below website. Its Good analysis of mutual

Be Peaceful !!!


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RahulSinhaupvotedthisJan29 HemantSinghcommentedonthisJan30 AnswerwrittenSep6

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