First time Mutual Fund investment

POSTED BY Ashesh Bharadwaj ON May 20, 2012 9:42 am COMMENTS (14)

I have recently opened an account with
How does the following plan sound for monthly investment through SIP?
Large Cap
HDFC Top 200 – Rs 10,000
DSP BR Top 100 Equity – Rs 10,000
Mid Cap
Birla Sun Life Dividend Yield Plus – Rs 15,000
ICICI Prudential Discovery – Rs 10,000
I am not overloading this post with information so if you find that you require any other information to give the suggestion kindly let me know 🙂

14 replies on this article “First time Mutual Fund investment”

  1. “@ 10% inflation rate for education, that 10L Rs. now ‘ll become a 42L Rs. figure in 2027.

    For retirement, @ 9% inflation, the yly figure in 2035 ‘ll be 29L Rs. & ‘ll keep on increasing.”

    @Ashal those are quite large numbers. Do not feel like going out for dinner this weekend 😉

    So the key is to keep saving while beating the inflation, right?

  2. Ramesh says:

    What exactly do you consider yourself? A stock or a bond.
    A stock is one which has irregular income (as you have mentioned), which canbe balanced by having bond/debt portfolio.

    A bond is one which has a regular income, which should be balanced with having a stock-oriented portfolio.

    Regularly check how your overall portfolio is performing (including your own work + investment portfolio) and whether the asset allocation is one which is optimal for you.

    Read more, understand and invest wisely.


    1. Thanks Ramesh for helping me to identify my position. This is something I am confused about but then I never thought much about it till now.

      1. Ramesh says:

        There have been lot of threads regarding investment portfolio advise and other things, but they are scattered throughout this forum. I am sure, you can either download this whole site or going through it online (as per your requirement), and get a lot of info.

        Once, you have got through the incubation period, you can read some good books (the lists have also been provided).

        I do not want to link all these (since you are in the field of search optimization and related stuff) :p

        It is never too late to start. You can make up really fast.

        1. Thanks Ramesh for the encouraging words. I am certainly looking around for the relevant info. Getting wiser each day 🙂

  3. Jig says:

    when u come to decision of investing through these SIPs, i would suggest keep your sip amount less than 10000. U can even break them in 2 to 3 for different dates for vanish charges as well as market volatility. Its just my personnel view.

    1. Thanks Jig, I will keep that in my mind.

  4. Ashesh,

    Before you think of surrendering your existing policies or invest into any of these MF.
    You should first go for Term plan if you dont have one.

    Roughly a term plan of 10 times your approx gross yearly income. Split into two providers.

    regarding Home : What is the interest rate you are paying for your home. How much has been the gain.(notational for now).

    Please provide these info. For now looking at your fund selection. If i was you i would have opted of IDFC premier equity instead of the funds you have choosen in Midcap.

    1. Thanks wealthucreate for the reply.

      I will take the term plan before surrendering the policies.

      My home loan rate was running at 13.75% about which I talked to the bank. Most likely I will opt the option of paying .5% of principal (9K) and bring down it to 10.5% float rate. Here is the other thread where I have written about it in detail:


      Regarding the suggestion for mid cap can you please share why would you choose IDFC premier equity over the other two?

  5. Dear Ashesh, what are your other assets & investments, age, family size, income, expenses, financial liabilities……………………..

    Please have a look for that home loan query also.



    1. Dear Ashal,

      Thanks again for being so helpful.

      I am a 37 year old male with around 50,000 monthly budget to invest. I am looking for a long term investment. I am a freelancer so the income risk is high, I do not know how to take that into account while investing but as long as I am having a good flow i want to invest it optimally.

      My goals are Child Education (2027 – 10 lacs) and Retirement (2035 – 60 years – 4 lacs/yr).

      As for investments I have many LIC polcies which I am going to surrender soon. I will get back around 2-3 Lacs. I have purchased a home for investment purpose for which around approx. 17lac is outstanding.

      I have opened a PPF account few days back and deposited 1 Lac.

      So PPF + Home and MF is what I am planning as my investments.

      I am a newbie in personal finance so it might be possible that any of the above does not make sense at all,

      1. Dear Ashesh, that 10L education figure is the future amount or current value that is to be inflated? Same for that Retirement thing?

        As you are a free lancer my take ‘ll be to go for a single prem. Term plan instead of a regular prem. as you are not sure of your future earnings.

        Please answer for above questions & we ‘ll discuss more.

        Hope my continuous queries to know more about your situation is not irritating you. If you feel so, I’m sorry in advance. In my opinion, advises given on zero or little knowledge about your current situations & related things, ‘ll not do good for you, so I’m trying to get maximum data from you.



        1. Dear Ashal, Sorry if I fell short in expressing my gratitude. There is no question of me getting irritated, on the contrary I thank you again for being so helpful.

          The amount I have mentioned is at the present value (would require to take inflation into account for future).

          Thanks for the one time payment suggestion for term insurance.

          1. Dear Ashesh, @ 10% inflation rate for education, that 10L Rs. now ‘ll become a 42L Rs. figure in 2027.

            For retirement, @ 9% inflation, the yly figure in 2035 ‘ll be 29L Rs. & ‘ll keep on increasing.

            Please update with your views.



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