SIP MF for the period of 2 years for 2000?



i want to invest some little money and planning to go for SIP MF for the period of 2 years for 2000 pm. so i want to ask that is it the righ time to go for SIP. i m planning to invest in HDFC and IDFC 1000 pm each. for 2 yrs and apart from this i have a SIP if 40000(total) for tax savings for 6 months

SIP MF for the period of 2 years for 2000?
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3 Replies to “SIP MF for the period of 2 years for 2000?”

  1. great idea with few flaws. you have not mentioned which Funds of HDFC and IDFC you plan to invest.
    both the guys have equity and debt and hybrid and theme funds.

    it is also important to be clear of risk category and the goals. actually two years is a very short time to invest into MF. increase that period to 5 years with a marginal increase each year. plz do a review every 6 months.
    i would suggest HDFC equity and IDFC premier as both are large cap stocks and in business for some time.



  2. Sharad,

    Good Decision.

    One of the key objectives of SIP is that we can not time the market and we should enter over a period of time in order to get the benefit of Rupee – Cost averaging. In light of this, there is nothing called a good time or a bad time to invest in SIP.

    However, when I look at your question, you have mentioned that you are looking at a 2 year horizon. In my view, 2 years is too short a period for SIPs to deliver its best potential. While over the next two years, if there are reasonable gains in the market, SIPs will give good returns. However, stock market cycles are seen to be longer sometimes and hence, if you enter with a 5-10 year horizon there will be far more benefit for you.

    Happy investing

    Fundu Vishy – Your ‘Mutual’ Friend
    Follow me on twitter @funduvishy
    I blog @ http://blog.powermf.com





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