Topic: Fast growth mutual fund with systematic investment plan (SIP) to grow my money in 3 years

This message was edited 1 time. Last update was at 02/04/2009 14:18:39

Hi all,

I am 26 & I haven't started my savings yet..I am planning to invest through SIP. Which one is best? I need to take the money back in 3 years.

Please advise !!!

Thanks,
Karthik

This message was edited 1 time. Last update was at 14/04/2009 12:08:24

Karthik,

* SIP, Systematic Investment Plan, is a regular investment option that is available in mutual funds. The other investment option comparable to SIPs is the recurring deposit schemes from Post office and banks. Basically, under an SIP option an investor commits making a regular (monthly or quarterly) investments in a particular mutual fund, at the then prevailing price of the fund (i.e., NAV)

* The SIP option is available with both equity and income types of funds
* Advantages of SIP are:

1.Regular investment, don’t need a lump sum
2.Rupee cost averaging, don’t need to worry about timing the market
3.Can enter with a very low amount of investment
4.Liquidity, redemption is possible easily, unlike FDs
5.Diversification benefits of mutual funds

* Minimum SIP investment needed is Rs500/per installment. However, recently Reliance has launched a Rs100 SIP, and ICICI has launched a Rs50 SIP

Therefore, depending on your risk tolerance and time horizon of investment (i.e. 3 years), you can decide the mutual fund category to invest in. You can choose good large cap equity funds (Sunadaram BNP Paribas Select Focus Fund or DSP BlackRock Top 100 Equity Fund) or balanced funds (DSP BlackRock Balanced Fund or tata Balanced Fund) based on their performance track record. Check this link for the various mutual funds scheme comparison

hi, I'm 27 year & i want to invest in mutual funds SIP plans.
please suggest me who is the best plans in sort term investment. blow 4 year.

Hi,

To invest in Mutual funds you need to have 3 - 5 years horizon at the minimum. As your time target is 4 years, you can invest in good balanced funds or at most some large cap funds. Here are some good pocks:

A) Balanced Funds:
1) HDFC Prudence
2) DSP Blackrock Balanced

B) Largecap
1) DSP BlackRock Top 100
2) ICICI Focussed Bluechip

You can buy any of these online. Know more https://sites.google.com/site/buymutualfundsonline/

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