Mutual fund invest 8 lakh rupress

Hi

I want to invest 8 lakh in Mutual Funds in one go . I am interested in debt fund , Liquid fund , short term fund.
So less risk and normal gain .

Can you please advise is it safe to invest such huge amount in mutual fund . If yes . Please suggest any funds.

Regards,
Vivek Chauhan

Like they say, MF is subjected to market risk. Yes, markets are volatile and there is a risk of losing your money in the short run, however, if you give your MF investments time, then I’m certain you will reap its benefits.

I’ve been investing in MFs for over 12 years now, and I’ve experienced a YOY return of close 14-15%.

Check out - https://coin.zerodha.com/, we have recommended 3 funds, and all of them have performed fairly well.

Assuming your age < 45 and risk appetite<moderate , then I would suggest to invest in balance funds (50% exposure), pure debt funds (35%),and for liquidity purposes put remaining money in liquid funds. For little bit aggressive you may go for multicap funds. But I am assuming that you will be investing for at least 5 to 8 years. If you want to be super safe side then you may consider about arbitrage funds.

Please make a 1 or 2 year SIP. And distribute it in different types of mutual funds.

Hi Sadhu ,

Sorry I forget to mention that I a not looking for long term investment with this 8 L money. I want to invest for 1 years for now.

my expectation of return >8.00 % and safe as Fixed Deposit,

Regards,
Vivek Chauhan

Ok so in that case I may suggest you to go for liquid funds or ultra short term funds, historically they have given around 7 - 9 % returns and it very safe (But not as much as Fixed Deposit). One fund I recommend but you should use your own rational for investing:

Franklin India Ultra-Short Bond Fund - Super Institutional Plan (G)

Here is historical return of this fund:
Franklin Ultra sbf

2 Likes

Thank you Sadhu …

@sabyasachi_sadhu Can Retail Investors invest in the Super Institutional Plan ?

This fund is for anybody.

@sabyasachi_sadhu - I read your suggestions , these questiona are in my mind if you can shed some light on these-

  1. Why bond funds are returning so low in 2017 and 2018 as compared to previous years ?

  2. Is there any chances of interest rates going up in near future?

  3. I started SIP in bond funds 8-9 months back and my total interest is 1.5 % , should I exit or remain invested ? Is it like I have bought these bond funds at chaper price (low NAV, eg Reliance gilt- 24.06 ) and once interest rates will increase , NAV will funds will increase and I will gain drastically ?

it does not really make sense to have a SIP in a debt fund.one should invest in debt fund if they have lump sum amount. in present situation liquid fund and short to ultra short funds are doing well as interest rate rising.if you are investing in debt to be on super safe side then go for long term gilt fund. but then if you are investing for long term(3-9 years) why not invest in large cap fund or balance fund with some risk.you stand a chance to get better return.that’s just my opinion you need to decide on your own what best for you.

I have done SIP as a saving measure , to save on monthly basis. I have done in place of RD .

Yes I am looking for long term investment (3-5 years)

I am invested in -
UTI Dynamic Bond Fund - Direct Plan, Reliance Gilt Securities Fund - Direct and ICICI Prudential All Seasons Bond Fund - Direct Plan

I am started SIP 10 months back but my overall gain is extremely low i.e 1% .

Please suggest

@rohan029

Why?

Why are you investing in debt in a growing economy like india?

you are losing money.

That’s probably because market was beaten by lots of events, both domestic and global. For instance, Budget 2018, US Federal Rate, Polling, etc. But stay invested, Mutual Fund is not like shares, MF will always come back when the events are cleared, India is economically growing strong.