Smart Investment – Invest with 100% safety of capital and Potential to earn better returns Mutual Funds. Have you Invested Smarter than this?
One of my friend has never been a fan of investing in mutual funds or equity but he was looking to do some investment few months back. I suggested him a good strategy to investing and he is now making 15% returns on his capital and that too without any risk of loosing the capital. You are amazed but it’s true and I termed it as Smart Investment.
Before I share I would like to give the credit to one of the reader of the blog Girish Arora. He is also in the same situation as my friend few months back but there is a difference that my friend was not into mutual funds but he is very much looking to get into it. So instead of explaining him once again privately I thought I would share the same with all my reader to see and even follow it.
Let us take the example of Girish and his question was:
I need to invest Rs 10 lakh in mutual funds. Could you suggest which ones to invest in presently.I do not have any portfolio at the moment and am new to this .
Thanks for your feedback. I have gone through your ebook and found it to be very informative. Please advise should I buy 10 different funds as suggested in your ebook by investing say 1 lakh in each fund as lumpsum or is it a better idea to take an sip of say rs 5000 for each fund for a period of 3 years.( keeping in view that the mutual fund prices are quite high at the moment ). So is it a good time to invest lumpsum or SIP.
Now like Girish many people are looking to get into equity as an investment and the best option in current market situation should be to remain on the safer side because market is not giving any indication of either breaking up or breaking down.
Invest the total amount (10 lakh for Girish) in some Fixed Deposit of some bank and have the option of interest getting deposited month on month or quarter on quarter into your bank account. ICICI and HDFC Bank have such schemes. Now invest that interest amount into a SIP of a Mutual Fund.
Note: Fixed deposit should not be locking, which means your money should be liquid to do some more lump-sum investment in few days if you see signs of crack in the market.
Advantages
- Safety of capital
- Potential to earn better returns as SIP accumulates
Disadvantages
- You start very small amount in mutual fund’s and so start is very slow and laggard.
Alternative Approach
I have no idea about Girish risk profile or his likeness towards safe investment but like me if you are not a fan of Fixed Deposit you can have 25% of your investment as lump-sum investment into the best funds and follow the above procedure for 75% of your investment.
Further See – What should be your Investment Strategy?
dear friend can you advise me to invest in smart forex singapur base comp. pl advise how it safe
Saban, I am not sure if I understand where you plan to invest and so I will not be able to suggest you much.
Hi Shabbir,
I am just beginning to invest in Mutual Funds and Equities. I stumbled upon your site while doing my research on the net. Your blog is very informative and provides excellent advise. Thank you very much for sharing your knowledge and experience with others.
Best regards,
Akshita
Akshita, Thanks for the wonderful feedback
Hi Shabbir,
Once again I need your valuable advise.
I want to invest a total of about Rs 1.2 Crore in funds.
I can commit 50% of this total for 6 months and the balance 50% for 1 year.
My Hsbc Bank is suggesting to invest in Reliance MIP but I am not convinced.
Can you suggest a better option keeping in mind that I will require half the funds back after 6 months and the balance half after 1 year.
Regards
Girish Arora
Girish, If you invest in any open ended equity fund your money will always be liquid and you can withdraw them any time. I would not prefer to invest in the monthly income plan but would rather prefer the best performing funds. I have them in my ebook and I would opt for dividend option as that would mean my income if any I get is also Tax free.
Hi Shabbir
Just to clarify my earlier post :
The total amount i need to invest is about Rs 1.2 crore.
Out of this I will require about 20% in 4 months time and another 30% in 6 months time and the balance 50% after 12 months for my ongoing commitments.
So the investment needs to be liquid. As I said my bank -HSBC is suggesting to put it in Reliance Mip Plan.
Your valuable suggestion is required. Is this the best way forward or I can do better by investing in some other funds.
I am already following your advice on investments in Tax Saving Funds and have benefited greatly.
Thanks & Regards
Girish Arora
Dear Shabbir
I need to invest Rs 1 Crore in India preferably in a debt fund with easy liquidity.
My bank is suggesting me to put the money in Reliance Mip plan.
What do you think. Is their a better option.
Regards
Girish Arora
Excellent advise.
This is the first time I am going to invest in Mutual Funds and am very keen on it.You assumed correctly, I am not a big fan of Fixed Deposits but am willing to take risk. So I will take your advise and invest 25 to 30 % of mycapital in all the 12 to 13 funds as lumpsum and will keep investing the balance as sip.
Thanks Again.
Dear Shabbir,
Your booklet was quiet useful in creating enthusiasm into beginners like me and has really infused much knowledge and skill and please accept my kudos and encomiums for your guidance and spirit.
Well, I am happy to share with you the news of profit made about 26,000/= out of investment 1,60,000/= in just 3 months. I just want to know your valuable opinion and advise on my scaling this achievement, like say, average or good or yet to be improved like that. I need your feedback and suggestion.
Thanks,
R.Kesavan.
kesavan7777@yahoo.com
Kesavan, its party time and I would say don’t be greedy when it comes to booking profits. Greed will be your best enemy
Shabbir,
Why do you not consider Sundaram PSU opportunities? Is there a specific reason for the skip?
Sathish, there is nothing specific but I do not buy on the theory of PSU’s doing well over others
Hey
I ad bought Amaraja batteries @ 57.75. Should i book my profit now or should i wait for some more time?
And what is ur view about Suzlon and RPower?
I dont track that stock but if you have good profits take it partially atleast and don’t get into Suzlon or RPower as of now.
Thanks for your reply. Yes, you are right. I missed that. Because of the split my loss is just few thousands in both Larsen and Reliance Industries. Any suggestion for Reliance Capital, Adlabs and Reliance Communication.
Adlabs I do not track but you should not be holding RelCom Long enough. Capital I am neutral
Excellent content – as you always provide and inspires me to come again and again.
dear sir
i find it very difficult to identify buy and sell signal
from the prices and screen.
can anyone help me to identify well in advance to reduce the heavy losses in intraday trading.
thanks
bkm
Yes. Avoid Trading as I haven’t seen many people make a fortune out of it.
What are your views about Sundaram PSU Opportunity Fund. Shall i invest in it?
Skip for me Paresh
I was bitten badly in the stock market crash of 2008. Had made following investments during Jan-March 2008.
Larsen and Turbo @ 3400 – Total loss of 2 lacs as if today
Reliance Capital @ 1700 – Total loss of 1.24 lacs as if today
Adlabs @ 794 – Total loss of 60K lacs as if today
Reliance Industries @ 2000 – Total loss of 70K lacs as if today
Reliance Communication @ 680 – Total loss of 60K lacs as if today
Any strategy to come of this mess will be highly appreciated
Manish
I dont see you should have any loss in
Larsen and Turbo @ 3400
Reliance Industries @ 2000
Because they are currently trading at half the price you purchased and it had a split in between nullifying your losses. Let me know if I am missing something
shabbir sir,thank ful for ur advise earlier for partial profit booking. whats ur outlook on new nfo of fidelity india value fund and sundaram psu opp fund?awaiting for ur reply…….
Sunil, I am not a Fan of PSU but see http://shabbir.in/fidelity-india-value-fund/
Thanks
Your comments and feedback is highly appreciated.
Cheers
The pleasure is all mine. 😀
Thanks Shabbir
Excellent advise.
This is the first time I am going to invest in Mutual Funds and am very keen on it.You assumed correctly, I am not a big fan of Fixed Deposits but am willing to take risk. So I will take your advise and invest 25 to 30 % of my capital in all the 12 to 13 funds as lumpsum and will keep investing the balance as sip.
Thanks Again.
Note : I am unable to find Nav of DSPBR Lynch Tiger Fund.
The ones listed are simply DSPBR Tiger Fund. Is it the same or two different funds.
Cheers
Both are same. viz DSPBR Lynch Tiger Fund and DSPBR Tiger Fund.
Also I have seen very few who are fans of FD’s
Remember to take a note of the point I mentioned and you should be able to take out the money of FD fast as that would help you to get more money into equity each time some correction happens