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Subbu's Solution

I am 25 years old and have just started two monthly SIP`s of Rs 1,000 each, in ICICI Prudential Focused Bluechip and Birla Sun life Frontline Equity fund. I have also started a recurring deposit of Rs 2,000. I can further invest Rs 3,000-5,000 a month. Where should I invest?
It’s great that you are thinking of saving and investing when most people of your age are only busy spending! You’d have about 3 decades of investing time and if you keep a disciplined approach, most of your life goals should be met smoothly with your investments. Presently you have allocated 50-50 to equity and fixed income respectively. Typically for your age this ratio can be 75-25. Gold is also a must-have for any long term portfolio. So you could invest about 5% of your total amount in a Gold ETF if you have a demat account, else in a Gold Savings Fund. The rest – 20% can be in a liquid fund and an RD. The equity investments could be among 2-3 diversified fund & mid cap equity funds. It is important that you choose the individual funds right and also maintain your portfolio balance among different asset categories. While choosing equity funds it is important to see the process followed by the fund manager. Do not look at the near term returns of the fund, but look at the fund returns over long periods and in different situations. Moreover you could also consult a financial advisor to suggest you a scheme.

Disclaimer:

Subbu's Solution is authored by I. V. Subramaniam. I. V. Subramaniam is a director of Quantum Asset Management Company Private Limited. The responses expressed here are strictly for information and explanation purpose only. The responses are meant for general reading purpose and not to be considered as an investment advice / recommendation. The responses are not intended to be an offer or solicitation for the purchase or sale of any financial product or instrument or units of the Mutual Fund. Readers are advised to seek independent professional advice and arrive at an informed investment decision before making any investments. The Sponsor, The Investment Manager, The Trustee, their respective directors, employees, affiliates or representatives shall not be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way from the information contained in the responses.

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Please visit - www.QuantumMF.com to read Scheme Specific Risk Factors. Investors in the Scheme(s) are not being offered a guaranteed or assured rate of return and there can be no assurance that the scheme's objective will be achieved and the NAV of the scheme(s) may go up or down depending upon the factors and forces affecting securities markets. Investment in mutual fund units involves investment risks such as trading volumes, settlement risk, liquidity risk, default risk including possible loss of capital. Past performance of the Sponsor / AMC/ Mutual Fund does not indicate the future performance of the Scheme(s). Statutory Details: Quantum Mutual Fund (the Fund) has been constituted as a Trust under the Indian Trusts Act, 1882. Sponsor: Quantum Advisors Private Limited. (liability of Sponsor limited to Rs. 1,00,000/-) Trustee: Quantum Trustee Company Private Limited. Investment Manager: Quantum Asset Management Company Private Limited (AMC). The Sponsor, Trustee and Investment Manager are incorporated under the Companies Act, 1956.

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