The S&P BSE Sensex touched the 82,700 level, while the Nifty50 rose above the 25,300 level in early trade on Monday.
Sameer Mahajan, an alien Mutual Funds The reader seeks advice to invest Rs 10 lakh and raises critical questions on how best to invest this sum and which instruments would yield the highest returns.
We spoke to Girirajan Murugan, CEO of FundsIndia, who recommended a systematic approach to lump sum investment.
It suggests an initial capital investment of 20%, followed by a phased rollout of the remaining 80% over six months through a Systematic transfer plan (PTP-S).
For high-risk investors looking for long-term wealth creation, Murugan advises a portfolio heavily skewed towards equities, complemented by debt and gold for diversification. He stresses the importance of diversifying within equities using various investment styles such as Quality, Value, Mid/Small Cap and Momentum, citing top mutual funds such as UTI Flexi Cap Fund and ICICI Prudential Value Discovery Fund for a well-rounded portfolio.
Consultation –
Sameer Mahajan:Please advise the best investment strategy Invest Rs 10 lakh in a lump sum for optimal returns.
Giriraj Murugan:To invest a lump sum in stocks, we follow a lump sum investment strategy where you can invest 20% immediately and stagger the remaining 80% over a 6-month weekly STP.
Sameer MahajanShould I invest in stocks, mutual funds or any other instrument? What are the best funds available? My risk tolerance is high.
Giriraj Murugan:If the goal is long-term wealth creation, we would suggest a portfolio with predominantly equity exposure, 70-100% in equities, and remaining exposure to debt and gold.
For equities, we prefer to diversify the stock portfolio based on investment styles, mainly Quality, Value, Blend, Mid/Small Cap and Momentum.
Below is an example of how we think about constructing a portfolio.
Quality – UTI Flexible Capitalization Fund
Worth – ICICI Prudential Value Discovery Fund
Mix – Parag Parikh Flexible Equity Fund
Mid/Small Cap – Franklin Prima Fund and Kotak Small Cap
Impulse – 360 One Quant Fund
(Disclaimer:The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of The Economic Times.
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