Need help regarding Financial Planning.

[ramki067]

Hi guys,

I'm sure everybody has done this. Wanted to know a secure fund to invest in SIP, i'm planning to invest around 10k/month. Please suggest me some very reliable options available and what amount can i expect in around 10 years time.I've heard about SBI Mutual fund, HDFC Growth fund. How reliable and worthy are these two?

Thanks,
Ramki.

[muralisk]

Am glad to hear that you are interested in investing in equities through SIP and targeting to do so for a long time.

Before I could suggest or answer your questions, it would help if you can let us know your objective for investing, your risk appetite and if there are any short term and long term goals that you would like to take care of from the returns that you would be getting from these investments.

Now coming to you question on how much to expect in the next 10 years, would be very difficult to say, but you can try and find out what was the returns for the past 10 years. Check this site for calculating past SIP returns. Mutual Funds : SIP Calculator.

[ramki067]

Thanks muralisk. My objective is to accumulate around 40 lakhs in around 10 years time which would help me to buy a home as my wife is non-working i thought investing in a secure SIP would be make my dream come true.

Thanks,
Ramki.

[SAHIR.KITTUR]

I recently started investing in a scheme with Corporation bank, Rs. 11000/- per month for 10 years, return at the end is Rs. 2020000/-. The returns maybe less, but risk free.

[phamilyman]

For investment like that, my HONEST (and which i've gotten family to invest in) advice is to just keep buying reliance (RIL) every month. You CANT go wrong. plus no exit costs!

What you need to consider instead is that property overall will match/rise faster than sensex over a 10 year period. It may be good to take a minor loan from friends/family (6L total say 2L from you, 4L from parents/friends/family) - buy that dream house now. Rest pay in EMI.

esp if you're an IT guy - go onsite, make some money and plough all of it into downpayment - that might be the easiest way out compare to a SIP.

Else that 40L flat may be 200L in ten years if not more. You cannot definitely match it with a risk free plan.

PS: Your earnings would only be in the range of 20L as said by Murali. 40L by investment of 1.2L for 10 years does not add up and may not be realizable.

[deepakhon]

Originally Posted by phamilyman

For investment like that, my HONEST (and which i've gotten family to invest in) advice is to just keep buying reliance (RIL) every month. You CANT go wrong. plus no exit costs!

I agree with you on this one. I am no fan of Reliance in anything other than their MFs. Their MFs have always yielded me good returns so far. I am not good at investments, so, I can be wrong. But so far, it has done good for me.

[harjeev]

Hey Guys
I know the debate over security vs safety can never be decided either ways, but this is what I have ben doing for the past 12 years

I have been been investing in the stock markets since I was 18 years old!!!
on my 18th birthday I bought 50 shares of Reliance!!! At that time it was around 120 ish levels!!
Since that time it has given countless dividends, given 1:1 bonus one time and in 2005 I got shares of 5 different companies.

This decision gave me confidence and since 2005 I have been an active investor in the stock markets. Now not a trader but an investor

Each month I set aside x amount of money from my income. Now this can be X+1 or X+10 but never X-1. X is the minimum I set aside and this is the first cheque I issue when I get my salary!!!
I keep accumulating this money and whenever I sense the time is right I buy shares directly from the stock exchange!!! I dont buy on hot tips or or from trade journals, but just go with my gut instinct and buy when I feel good companies, blue chips are on sale. Like they were last year around Sept-Dec08. And since that time I have not bought or sold even 1 share, just been accumulating x (jan)+ x (feb) and so on. And waiting for the next big crash or the next big sale on Dalal Street!!!

I may loose out on regular up's and downs but at least I am one of few who almost caught the bottom and took the ride all the way to the top.

1 share for example Tata Steel I bought @ 175 and today its 395, went upto 475 or or. Still at today's price I am making 125% profit, not to mention 16/- per share dividend that ill get which come to a little more than 9% TAX FREE!!!

My thought is 'Why should I give my hard earned money to someone else and he get's to keep a cut each year irrespective whether the portfolio makes a profit or a loss, the fund manager get's to keep a Asset Maintainence Fees. And I have no say in what they are doing!!!'
Does not sound good to me!!!

Just my thought, and Ill know a large percentage of the investing people do not and will not agree with me but its been working for me for the past 14 years and I am sure that it should work 14 years to come!!!

Also I forgot to mention, that from the outside it appears very difficult and like rocket science!!! But its quite easy
Just buy & hold works...
Warren Buffett is one name that has made money by this strategy for the past 4-5 decades!!!

[srikant]

This would be a helpfull thread to some like me who dont know anything about investment. Gurus please put in info to help us.