I need 50 lakh for my daughter’s wedding in 7 years. How to invest in MF?
I am a 49 year old doctor who is currently in private practice. I have adequate investment in PPF, FD and NPS. I want to invest in mutual funds for the next 7 years in order to generate a corpus of 50 lakhs for my daughter’s wedding via the SIP channel. Please inform me of the mutual funds and the SIP amount to invest monthly to reach this corpus amount.
To create a corpus of Rs. 50 lakhs, you need to invest ??40,000 per month via SIP over the next 7 years assuming a 12% CAGR ROI. It is observed that stocks offer a higher return over a longer time horizon. Therefore, it is advisable to create a portfolio through a SIP investment in the Large & Mid Cap, Flexi Cap, Mid Cap and Value share classes. You can think of dividing the SIP amount equally between Axis Growth Opportunity Fund, HDFC Large & Mid Cap Fund, UTI Flexi Cap Fund, Parag Parikh Flexi Cap Fund, Kotak Emerging Equity Fund, Nippon India Growth Fund and IDFC Sterling Value Fund. This way your portfolio will be diversified across category, geography, and AMCs. It is advisable to review the portfolio at least once a year.
I am 46 years old and recently sold a property for ??12 lakh. Now I want to invest this money so as to get monthly income. Where should I invest?
In our opinion, the most suitable investment avenues for you to receive regular income as well as preservation of capital are the highest rated RBI Floating Rate Bonds and Corporate FDs namely Bajaj Finance and Mahindra & Mahindra Financial Services. The interest rate offered on RBI bonds is 7.15%, while the highest rated corporate FDs with terms of 3-5 years offer an interest rate between 6.4 and 6.5. %. We can think of dividing the corpus equally between these two avenues.
Sanjiv Bajaj, Co-Chairman and Managing Director, Bajaj Capital. Queries and views at [email protected]
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