Investment Guidance Required (33 M)

[eliza16]

Hi Everyone, I need your kind advice (33 M).

I am planning to start my investment journey now. Due to certain personal and family commitments - till date I could only save about 10 L overall, which is woefully low considering the investment / savings amount which I have seen folks post in this sub.

From now on, I can invest around 1-1.2 L per month and would need your advice what would be the best way to do so (Monthly Salary - 2.4L post tax). Since I have never invested in MFs, could you also suggest me few good options to start my SIP journey and ideal breakup of allocation.

I don't have any immediate goals for large expenditure. However, I would like to buy a house in about 7/8 years from now.

Thank you in advance.

 

[captjohnsheridan]

@eliza16 I would say never compare yourself to others, you would always get overwhelmed, and its never too late to start anything.

Now coming to the real thing.

1. Get your Risk appetite right, would you want to be an aggressive investor who targets, high returns, in the range 20%-25%, then your portfolio would comprise volatile stocks and indxes, or mf's, these can be small to mid cap company stocks, mf's or indexes.
2. Always research and then invest, dont follow someone's suggestion of a stock or mf, blindly, do your own dilligent research on that topic, read article, books, news, talk to more people, and then take a decision.
3. Be consistent, and market will reward you.

Happy Investing. I have a feeling you would do good.

 

[eliza16]

@captjohnsheridan Thank you for your advise.

Currently I am looking at a high risk investment plan and would prefer to focus on MF investment via SIP route. I did some basic research and saw that it's advisable to start with 4 MFs at maximum to avoid over-diversion, having each of 1 Index MF, 1 Flexi-cap, 1 Midcap, 1 Small Cap MF in the ratio of 40%, 25%, 25%, 10% respectively.

Wanted to check if this seems to be a decent way to start.

 

[captjohnsheridan]

@eliza16 Yes you're on right track, i've read in multiple forums, people have mixed opinions about the number of mf's to operate for diversifying your portfolio, i personally dont want to go beyond 5, for the ratio in which the fund to define, i have a fixed amount going into sip every month in 3 elss funds, and then at will i decide if i want to increase/decrease or constant divide between, index/small/mid/flexi/other funds.

 

[eliza16]

@captjohnsheridan Okay, this is certainly helpful advise.

May I know which platform are you using for MF investment? Or do you invest directly via the AMC websites.

 

[captjohnsheridan]

@eliza16 I use Zerodha Coin, the UI is simple, and efficient, funds can be filtered/screened and you can see scheme documents as well. I've seen a surge in people opting for groww, but i feel its personal preference.

I would not recommend investing in individual AMC houses, although i have some friends who do that, and my own gf does it, only reason, i need all my investments in one place that i can track easily.

 

[meljmurray]

@eliza16 There is no age as to when you start your investment journey.

The earlier, the better. But hey, it's never too late.

You can start by investing in equities.

For your age and risk profile,

Your allocation of your corpus typically should be -

80% Equity, 5% Commodities (SGBs / Physical Gold)
5% Mutual Funds, 10% Liquid Cash (Emergency Fund)

I have come to realise that more than 90% of the people around me don't know how to manage or allocate capital the right way, either in equities or other asset classes.

I have taken the initiative to start a newsletter to impart whatever knowledge I have from being in the Equity Markets for almost 10 years now and being in the crypto market since 2020.

Will be talking about how one can build a portfolio from scratch, do portfolio allocation the right way, deep dive analysis on stocks in India and US by fundamental analysis and technical Analysis going through Annual reports, Balance sheets etc and putting it in concise format.

If you are looking forward to starting your financial journey and getting better at it sooner.

Subscribe to my newsletter. It's free.

I plan on having different verticals within my newsletter.

1) Market Bytes : Quick update on market performance for that week.

2) Insights : Which would cover Sector Analysis, basics of investment series, and little to everything.

3) Deep Dive Analysis : Deep research on individual high growth potential stocks.

And planning to incorporate more in the future.

If this resonates with you, consider subscribing.

Newsletter - Contrarian Portfolio

Hope this helps. If you have any questions, feel free to DM/ask me here.

Cheers.
Good luck.