hi,I want to invest some money in mutual funds,I have few doubts in my mind and want those to clear before?

begin my inning:
I want to put some money in sip and some money in lump sum,please advise weather i should put more money in few funds or should i put small money in many good funds for long term benefit?(means should i put the money in many cos. or should i put same amount in fewer cos.?)
Is this the correct time to start?
please guide me.

6 Replies to “hi,I want to invest some money in mutual funds,I have few doubts in my mind and want those to clear before?”

  1. I guess you are asking specifically about Indian Markets.It is really difficult to time the market and predict whether it is the correct time to start.But its always good to start than to wait.Start by investing small amount of your money in some good cos.You can opt to select some good fund houses which offer nice SIP schemes.

  2. SIP (systematic investment plan) is a good way to invest. When stocks are expensive you will buy less, and buy more when they are on sale (cheap). With SIP it’s always the rigt time to start.

    And by your concerns it seems you want to make sure you are diversified.

    Keep in mind that a mutual fund is already diversified, most mutual funds will have over 50 stocks in it already. Therefore all you need is a couple of mutual funds and it’s like owning over 100 if not hundreds of companies. I would suggest picking 3-5 mutual funds.

    Look into NO LOAD mutual funds (these are normall sold directly from the mutual fund company and you do not pay a commision). Since commission can be around 5% you’ll already be ahead of the competition.

  3. This time is correct time for SIP.
    (1) Always do SIP IN Longterm & Different company.(Small amount).
    (2) Portfolio >must be diversified.
    (3) Always consult with a NSE & AMFI certifyed advisor.

  4. you need to do a lot of reading and research and learn about different types of investments – no one here can answer your question in less than 5000 words

  5. Best thing to do is to do SIP in following for atleast 3 years
    SBI Magnum Contra fund
    HDFC Growth fund.

    You can also consider UTI ULIP / LIC ULIS for 10 to 15 yrs.

  6. Good egiig Anu

    Instead investing in lumpsum go for SIP

    Before selecting the funds just have a look at the past performace of the funds (3-5 years)
    There is no load in any of the mutual funds.
    You can always stop your SIP instalments anytime midway and take your investments elsewhere in case you want to shiff out.
    Presently the exit load is 1% for less than a year investments.
    Try to limit your investments to 3-5 AMCs.

    Have a good day

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