Are SIPs a great way to begin investing in mutual funds?

I’m a 31-year-old officer working for the Government of India, incomes ₹60,000 per thirty days. I’ve examine mutual funds and want to begin investing by way of month-to-month SIPs. I’ve simply began with an aggressive hybrid fund – Canara Robeco Equity Hybrid (SIP of ₹2,000 per thirty days, with a plan to proceed it for 5 years). My goal is to take a position about 25% of my wage. Kindly counsel if the strategy is true and in that case, MF schemes that will be acceptable for me to put money into. I have already got an outgo of ₹12,000 per thirty days in PPF and NPS.

—Name withheld on request

It is sweet that you’re planning to take a position a wholesome proportion of your month-to-month revenue in SIPs. Please just be sure you can maintain this degree of investments on a unbroken foundation.  In phrases of the place to take a position, an fairness hybrid fund is an effective place to begin, particularly since you might be investing for 5 years. For the remaining ₹13,000, you possibly can proceed alongside related traces for equity-debt proportion. 

I’m a 40-year-old with a month-to-month wage of ₹70,000. I’ve two daughters of ages 7 and a pair of. Please counsel some finest mutual funds for funding for training and marriage and for SIP.

—Surender

Let’s take your elder daughter and assume you might have 10 extra years to save lots of and make investments for her training. If we additional assume that training prices ₹10 lakh in in the present day’s cash, you would wish to save lots of and make investments ₹9,000 per thirty days to achieve this aim in 10 years. For your youthful daughter’s training, you’d equally want to save lots of and make investments ₹6,000 per thirty days (provided that there are 15 extra years for her larger training). So, you’re looking at doing a SIP for ₹15,000 for each your daughters’ training targets, put collectively. 

In phrases of investments, you possibly can break up ₹12,000 equally between HDFC Index Fund, Parag Parikh Flexi-cap Fund, and Axis Midcap Fund, and make investments the remaining ₹3,000 in IDFC Corporate Bond Fund.

Srikanth Meenakshi is founder, Primeinvestor.in.

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