How do I invest 30 lakh rupees in Indian equity wisely for at least 5 years?
1st rule ; Don't put everything in lump sum . Scatter the investments in a span of 12 months
2nd rule : If Age is on your side , Invest 60% in Equity , 30% in Debt and 10% in Gold as asset allocation.
3rd rule: Investing in equity - Large cap 40% , Multicap - 30% , Midcap - 15% , Smallcap - 15%
4th rule : Invest lump sum in short term debt fund and do systematic transfer plan to equity funds
5th rules : Can buy around 10 lacs of direct equity in large cap stocks or invest that amount in below ETF
6th rule : Follow these equity MF while putting high value SIP
*Tested mutual funds based on different parameters : Rolling returns consistency of 1yr , 3yr , 5yr , Std Dev , Sharpe ratio , Fund Manager and Expense ratio.**
Below SIP recommended.
All of them higher 4 or 5 star rated funds from CRISIL or Value research
1.More diversification on to large cap funds and value /flexicap funds as smallcap/mid cap are highly valued.
2.Higher mix towards US funds since NASDAQ /International markets are less expensive now.
Proposed SIP
1 UTI Nifty Index fund -30%
2 ICICI Pru Discovery Fund -20%
3 SBI Large and MidCap fund -10%
4 Parag Parikh Flexi Cap fund -20%
5 Motilal Oswal Nasdaq 100 FoF -10%
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