Seeking Suggestions for Monthly SIP of ₹7000 at Age 25

[BVCBVC is verified member.]

hein!
I started my investing journey when I was 23, and now I am 29 but I was a noob back then.
The only good thing that happened in current times is the power of the communities i.e Twitter, TF etc.
Back then we didn't have many resources.

6 years of investment matters a lot at the later stage of life. Hope you have accumulated maximum returns, because these 6 years, market had excellent run.

 

[m4b]

Ha ha. Same happens for everyone. Better late than Never. In fact you have started at good stage than many.

Yep but fucked it up for the first 2-3 years.
I want companies to provide basic classes for financial markets and Taxes in the first job.

 

[m4b]

6 years of investment matters a lot at the later stage of life. Hope you have accumulated maximum returns, because these 6 years, market had excellent run.

Lost opportunity for first 2-3 years 🤣 🤣 🤣
At least learned my mistakes though. Now it is going good.

 

[rohit_]

@rohit_ Good that you have stepped your feet in the investing journey.

I can't suggest any MF but I can provide you with resources to learn and gather knowledge to create a strategy on your own instead.

If you understand the world of MF then it's fine.

I am definitely interested in learning more and would appreciate any resources you can share with me.

 

[BVCBVC is verified member.]

Lost opportunity for first 2-3 years 🤣 🤣 🤣
At least learned my mistakes though. Now it is going good.

Those lessons are more valuable than the profit we make 😋because no one teaches them. Everyone tells how to make profit (which happens occasionally) and no one tells how to handle the loss.

 

[m4b]

I am definitely interested in learning more and would appreciate any resources you can share with me.

By far the best resource on the internet.


First, go through this playlist. After that, I will provide some tools to research and compare various mutual funds.

 

[am11]

in debt which fund is better there are also many categories in this liquid, short-term, gilt etc. and better than fd?
@LootMaxxer @am11 @Tejo @Dragon_slayer

In Debt category, Short Term Fund, Corporate Bond Fund and Banking and PSU funds can be good options to get returns similar to (or slightly better than) FD over a 3 year period. If you want to park your money for the short term, liquid funds are a good option. Dont go for long lerm options on debt funds (such as gilt etc) as for long term, you have equity funds.
Again keep your asset allocation aligned to your goals. For example if you are already investing in debt instruments such as PPF, FD etc there is no requirement to have debt funds in the portfolio. You can only keep equity funds.
All depends on goals and risk appetite.

 

[vivdwive]

Hello,
I am 25 years old and planning to start a monthly SIP of ₹7000. I have chosen the following allocation and would appreciate your suggestions on whether this is a good strategy or if any changes are needed:

Parag Parikh Flexi Cap Fund: 2,500 INR (35.71%)
Mirae Asset Mid Cap Fund: 1,750 INR (25%)
Quant Small Cap Fund: 1,000 INR (14.29%)
UTI Nifty Index Fund: 1,000 INR (14.29%)
SBI Contra Fund: 750 INR (10.71%)

Looking forward to your valuable feedback and suggestions!
Thank you!

Hello Rohit, since you are quite young and trying to start with a decent amount of Rs.7k, I would suggest from the funds you are thinking , put -
3k in small cap fund
2k in mid cap fund
And
2k in the nifty index fund and you are good to go...
You should try to accumulate these with some lumpsumps in between and then diversify to others as u progress financially. Good luck

 

[rohit_]

Hello Rohit, since you are quite young and trying to start with a decent amount of Rs.7k, I would suggest from the funds you are thinking , put -
3k in small cap fund
2k in mid cap fund
And
2k in the nifty index fund and you are good to go...
You should try to accumulate these with some lumpsumps in between and then diversify to others as u progress financially. Good luck

Okay, Thanks 🙏

 

[rohit_]

In Debt category, Short Term Fund, Corporate Bond Fund and Banking and PSU funds can be good options to get returns similar to (or slightly better than) FD over a 3 year period. If you want to park your money for the short term, liquid funds are a good option. Dont go for long lerm options on debt funds (such as gilt etc) as for long term, you have equity funds.
Again keep your asset allocation aligned to your goals. For example if you are already investing in debt instruments such as PPF, FD etc there is no requirement to have debt funds in the portfolio. You can only keep equity funds.
All depends on goals and risk appetite.

Okay, Thanks 🙏

 

[Mritunjay]

It's great that you've started investing! At this stage, don't worry too much about where you put your money. Just avoid investing in ULIPs (I did) or regular mutual funds. Your investments will really matter when your accumulated net worth is three times your annual income. Until then, focus on working on your core skill or business. I'm not saying you shouldn't invest right now, just to prioritize building your primary skills or business.

 

[rohit_]

By far the best resource on the internet.


First, go through this playlist. After that, I will provide some tools to research and compare various mutual funds.

Okay 👍
Thanks 🙏

 

[rohit_]

It's great that you've started investing! At this stage, don't worry too much about where you put your money. Just avoid investing in ULIPs (I did) or regular mutual funds. Your investments will really matter when your accumulated net worth is three times your annual income. Until then, focus on working on your core skill or business. I'm not saying you shouldn't invest right now, just to prioritize building your primary skills or business.

Okay 👍 , Thank you for the suggestions. 🙏🏻

 

[rohit_]

By far the best resource on the internet.


First, go through this playlist. After that, I will provide some tools to research and compare various mutual funds.

I just finished watching the informational video. Thank you for sharing. Do you have any additional tools besides the ones mentioned in the video? If so, please provide them. Thanks again.

 

[m4b]

I just finished watching the informational video. Thank you for sharing. Do you have any additional tools besides the ones mentioned in the video? If so, please provide them. Thanks again.

Have you finished the whole playlist?

 

[rohit_]

Have you finished the whole playlist?

Yes, finished entire playlist at 1.5x speed.

 

[m4b]

Yes, I have finished the entire playlist at 1.5x speed.

Respect++
Yep, I think you are good to go now.
Now with the learning check the MFs that you have mentioned.
Deep dive into their style of investing, Active/Passive, Tracking Error, alpha, beta, turnover ratio, peer comparison, overlap, performance, benchmark etc.
Use moneycontrol and value research.

 

[rohit_]

Respect++
Yep, I think you are good to go now.
Now with the learning check the MFs that you have mentioned.
Deep dive into their style of investing, Active/Passive, Tracking Error, alpha, beta, turnover ratio, peer comparison, overlap, performance, benchmark etc.
Use moneycontrol and value research.

Okay, bro 👍🏻. Once again, thanks for sharing the link to such an informative video. 🙏🏻

 

[metal_heart]

I am 25 years old and planning to start a monthly SIP of ₹7000

Congratulations on the start of journey. As much as early start is important, staying discipline is even more.
However, for 7K you have selected too many funds. Start with Flexi cap & Index Fund, and later when you are ready to invest more; add diversity to it.
At one point of time I had almost 20 funds, now its just 5-6. So add more in lesser fund for better growth.

But for me, I think that I wasted 7 years (from age 18)

There would always be if & but. You could have started at 18/20/22/25. Don't fret much on that. I started investing at 27. If I look back now, i dont see that I should have started at say 22or25, but rather I see that I should probably have saved a bit more; may be that 2-3k extra.

but there is no end to the wishes.

I was 23, and now I am 29 but I was a noob back then.

Everyone is noob at some point of time. Capacity to take risk, is what makes that difference. I started when youtube was almost non-existent. I used to read/refer moneycontrol

 

[m4b]

Okay, bro 👍🏻. Once again, thanks for sharing the link to such an informative video. 🙏🏻

Yea no need to say thanks! Now you would probably understand why @Dragon_slayer suggested to invest in Nifty50