Lump sum 7L and somewhere like 15k every month, how to invest?

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As the title says, 7L cash in the bank and savings of 15k every month, how to invest?

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For how long you want to invest?

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For 7 lac.
1. MF+ Equity(Large Cap)- 50% ( Always read T&C Risk hai toh ishq hai)
2. FD/RD- 50%
FOR 15000/-
1. SIP- 50%
2. Do personal Business/Invest in you-50%

#Nachoo wink

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What is the timeframe for which u what to invest? Risk tolerance?

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When you say 7L in saving, you mean your savings become 0 once you invest 7L? As in liquid cash, because usually it is recommended to have 6 months liquid cash for emergency fund and such. Please clarify.

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billubakra wrote:

What is the timeframe for which u what to invest? Risk tolerance?

15 yrs. Risk tolerance moderate.

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rak007 wrote:

When you say 7L in saving, you mean your savings become 0 once you invest 7L? As in liquid cash, because usually it is recommended to have 6 months liquid cash for emergency fund and such. Please clarify.

7L to invest

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Nachoo_NK wrote:

For 7 lac.
1. MF+ Equity(Large Cap)- 50% ( Always read T&C Risk hai toh ishq hai)
2. FD/RD- 50%
FOR 15000/-
1. SIP- 50%
2. Do personal Business/Invest in you-50%

#Nachoo wink

MF over Nifty/Index?

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Nachoo_NK wrote:

For 7 lac.
1. MF+ Equity(Large Cap)- 50% ( Always read T&C Risk hai toh ishq hai)
2. FD/RD- 50%
FOR 15000/-
1. SIP- 50%
2. Do personal Business/Invest in you-50%

#Nachoo wink

Which SIP?

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OnceUponADime wrote:

15 yrs. Risk tolerance moderate.

Invest 1.5L in PPF at once.
Some part in fd and for the rest open a MOD account and start a sip in equity from there. This has high risk but you can decrease it by investing in debt funds too. Plus for the next years keep on investing 1.5L in PPF.

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OnceUponADime wrote:

MF over Nifty/Index?

Do you know the difference amongst the terms that you have mentioned brother?

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OnceUponADime wrote:

Which SIP?

There are many…. Search it.
Mirae Asset, Axis blue chip, Icici Pru blue chip, and many more.
Check history of each before investing.
#Nachoo wink

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OnceUponADime wrote:

15 yrs. Risk tolerance moderate.

Invest 3 Lac in Bank FD
invest 4 Lac in Liquid Fund
(setup SWP on this liquid fund to switch 10K monthly to Multicap Equity Fund…don’t invest in more than 2 funds )
Additional 15K (10K can go into Equity and 5K into Bank FD)…

Once your liquid fund is NIL…move FD money into Liquid fund

In short 20K towards equity via SIP route , don’t do lump-sum at this stage and 5K towards bank FD

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Sudarshan61 wrote:

Invest 3 Lac in Bank FD
invest 4 Lac in Liquid Fund
(setup SWP on this liquid fund to switch 10K monthly to Multicap Equity Fund…don’t invest in more than 2 funds )
Additional 15K (10K can go into Equity and 5K into Bank FD)…

Once your liquid fund is NIL…move FD money into Liquid fund

In short 20K towards equity via SIP route , don’t do lump-sum at this stage and 5K towards bank FD

Sorry new to investing so excuse my lack of understanding. Here is what I understood: So push 4L into SWP with withdrawal rate of 10k/mo. Invest that 10k into some Multi Cap fund like Axis or Parag (2 funds). Right?

And with 15k, put 10k into MF like Axis Bluechip and 5k into FD (not sure if I can add monthly once FD is made).

Then once that 4L runs out from SWP. Use FD money towards SIP monthly.

Did I get it right?

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OnceUponADime wrote:

Sorry new to investing so excuse my lack of understanding. Here is what I understood: So push 4L into SWP with withdrawal rate of 10k/mo. Invest that 10k into some Multi Cap fund like Axis or Parag (2 funds). Right?

And with 15k, put 10k into MF like Axis Bluechip and 5k into FD (not sure if I can add monthly once FD is made).

Then once that 4L runs out from SWP. Use FD money towards SIP monthly.

Did I get it right?

Yes….. perfect
Recurring FD for the 5K that I mentioned…That way you always have some contingency money(although you are ok with 15 years but always have some fund in FD or liquid )

Follow this plan review fund performance once in 2-3 years…
readjust Equity/Debt allocation after say 12 years ..

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Sudarshan61 wrote:

Yes….. perfect
Recurring FD for the 5K that I mentioned…That way you always have some contingency money(although you are ok with 15 years but always have some fund in FD or liquid )

Follow this plan review fund performance once in 2-3 years…
readjust Equity/Debt allocation after say 12 years ..

Thank you. Does this plan works out better than buying stocks? Cheers.

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OnceUponADime wrote:

Thank you. Does this plan works out better than buying stocks? Cheers.

Yes for person who can’t keep track of stocks
One can also pick good stock and do a SIP in that (i.e buy some quantity every month ) instead of SIP in MF..

With stock one of the biggest challenge is to study those companies..keep track of it..pay additional demat/brokerage every year…not worth the efforts for the amount you want to invest I say…..plus it becomes risky affair as U will invest in just handful of stock vs MF which will like 30+ stocks in its portfolio

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Buy a property of around 25-30 Lakhs. 7 Lakh down payment and rest in EMI of 20 years. Make sure to take a loan that allows part and full prepayment without penalty. Put it on rent and use the rent to pay a part of the EMI.
Rent will keep moving up. Your monthly savings will also increase. So keep making part re-payments even 3-4 years and you will be loan free in about 10-12 years. The value of your property will also increase significantly in that time.

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panchabhut wrote:

Buy a property of around 25-30 Lakhs.
7 Lakh down payment and rest in EMI of 20 years.
Put it on rent and use the rent to pay a part of the EMI.

Bad idea…
1. Rentals yeild are like 2%
2. Loan interest rate will be like 7% and can increase in future..
3. No guarantee that property rates will rise as they did in past..(plus lot of govt policy which can reduce the prices like increase in FSI)…please don’t compare price appreciation of last 10-20 years…same won’t happen now..
4. Most difficult to liquidate in case of emergency.
5. Not to forget all the money that gets wasted in taxes/registration/bank loan processing etc etc

Anyone who thinks property investment is good idea…think why does builders sell new flat..why don’t they keep it for themself.. give them for rent and sell it as old property after 10-20 years…😈

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panchabhut wrote:

Buy a property of around 25-30 Lakhs. 7 Lakh down payment and rest in EMI of 20 years. Make sure to take a loan that allows part and full prepayment without penalty. Put it on rent and use the rent to pay a part of the EMI.
Rent will keep moving up. Your monthly savings will also increase. So keep making part re-payments even 3-4 years and you will be loan free in about 10-12 years. The value of your property will also increase significantly in that time.

Properties are good in investment but I dont want any loans.

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Sudarshan61 wrote:

Bad idea…
1. Rentals yeild are like 2%
2. Loan interest rate will be like 7% and can increase in future..
3. No guarantee that property rates will rise as they did in past..(plus lot of govt policy which can reduce the prices like increase in FSI)…please don’t compare price appreciation of last 10-20 years…same won’t happen now..
4. Most difficult to liquidate in case of emergency.
5. Not to forget all the money that gets wasted in taxes/registration/bank loan processing etc etc

Anyone who thinks property investment is good idea…think why does builders sell new flat..why don’t they keep it for themself.. give them for rent and sell it as old property after 10-20 years…😈

Agree on bad liquidity point. It takes long time to sell plus intersted buyer takes time to finish the full payment even once the deal is done, have to wait for full funds.

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Sudarshan61 wrote:

Yes for person who can’t keep track of stocks
One can also pick good stock and do a SIP in that (i.e buy some quantity every month ) instead of SIP in MF..

With stock one of the biggest challenge is to study those companies..keep track of it..pay additional demat/brokerage every year…not worth the efforts for the amount you want to invest I say…..plus it becomes risky affair as U will invest in just handful of stock vs MF which will like 30+ stocks in its portfolio

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Sudarshan61 wrote:

Invest 3 Lac in Bank FD
invest 4 Lac in Liquid Fund
(setup SWP on this liquid fund to switch 10K monthly to Multicap Equity Fund…don’t invest in more than 2 funds )
Additional 15K (10K can go into Equity and 5K into Bank FD)…

Once your liquid fund is NIL…move FD money into Liquid fund

In short 20K towards equity via SIP route , don’t do lump-sum at this stage and 5K towards bank FD

Few questions-
1. Can one start SWP’s from a liquid fund to multiple funds? If yes then how?
2. Is liquid fund right now a good idea considering the YTM of a liquid fund is even less than a bank fd?
3. Good time to increase SIP amount if one has a little savings in a bank account? Not a good time to go all in for sure.
4. If someone missed the march bus, then what’s the good time to enter the stock market? This is like timing the market, but if someone has seen say RIL @ 900 it is very hard to buy it at 2x the same amount.

Out of context checked the S10 note lite, we discussed about it in some other thread. Good phone but plastic build is meh.

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Sudarshan61 wrote:

Bad idea…
1. Rentals yeild are like 2%
2. Loan interest rate will be like 7% and can increase in future..
3. No guarantee that property rates will rise as they did in past..(plus lot of govt policy which can reduce the prices like increase in FSI)…please don’t compare price appreciation of last 10-20 years…same won’t happen now..
4. Most difficult to liquidate in case of emergency.
5. Not to forget all the money that gets wasted in taxes/registration/bank loan processing etc etc

Anyone who thinks property investment is good idea…think why does builders sell new flat..why don’t they keep it for themself.. give them for rent and sell it as old property after 10-20 years…😈

Investment is individual decision. So what appeals to one may not appeal to another.
I bought my first property in 2004, for about 10 Lakhs. Put in 1 lakh of my own and took a loan of 9 Lakhs. The present rental income of that property now is 20k and I have repaid the balance loan in 2016. After adjusting tax payable, I have net 16K inflow from this property.
Bought my second property in 2012 for 23 Lakhs. took loan of 17 Lakhs and rest own investment. For last 2 years, I have part-repaid 2 Lakh loan every year, usng the surplus from 1st property. Present EMI is 12K and rental income is 15K. So the EMI is more than covered by the rental benefit.
I do not intent to sell them at present but the total market value of both together is about 1.5 Cr.
I now plan to go for 3rd one and use the surplus of the first two to fund the EMI partially.
But yes, the statutory warning is applicable in any form of investment, past performance is not an indicator of future growth. And that applies to all market linked investments, including SIP, Indexed funds and Share Market.

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Sudarshan61 wrote:

Bad idea…
1. Rentals yeild are like 2%
2. Loan interest rate will be like 7% and can increase in future..
3. No guarantee that property rates will rise as they did in past..(plus lot of govt policy which can reduce the prices like increase in FSI)…please don’t compare price appreciation of last 10-20 years…same won’t happen now..
4. Most difficult to liquidate in case of emergency.
5. Not to forget all the money that gets wasted in taxes/registration/bank loan processing etc etc

Anyone who thinks property investment is good idea…think why does builders sell new flat..why don’t they keep it for themself.. give them for rent and sell it as old property after 10-20 years…😈

Karmas to you bhai!
You have made very valid points and every new investor must read it.

Buy property only if you plan to stay there and not for rentals!

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OnceUponADime wrote:

I see people suggesting buy 1 index every month. So maybe its like Nifty 50 right? But when i tried to but on zerodha it says its an indices and cant be bought. So what do people mean when they say buy index every mo?

Start investing in BankBees. It is ETF based on Bank Nifty!

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billubakra wrote:

Few questions-
1. Can one start SWP’s from a liquid fund to multiple funds? If yes then how?
2. Is liquid fund right now a good idea considering the YTM of a liquid fund is even less than a bank fd?
3. Good time to increase SIP amount if one has a little savings in a bank account? Not a good time to go all in for sure.
4. If someone missed the march bus, then what’s the good time to enter the stock market? This is like timing the market, but if someone has seen say RIL @ 900 it is very hard to buy it at 2x the same amount.

Out of context checked the S10 note lite, we discussed about it in some other thread. Good phone but plastic build is meh.

1. Yes. Should be under same Fund house
2. Last 1 year return of liquid funds are around 4.5 (Higher than most saving accounts). I would compare Liquid funds with saving account interest rates..
3. No.
4.If you are entering via SIP mode(MF)..its always the right time..One cant time the market. But one can surely add more SIP/equity when market corrects..so always keep some liquid to take benefit of such opportunities

Yes. S10 lite is good phone …but plastic …btw how many use phone without any case toungueout

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Sudarshan61 wrote:

Bad idea…
1. Rentals yeild are like 2%
2. Loan interest rate will be like 7% and can increase in future..
3. No guarantee that property rates will rise as they did in past..(plus lot of govt policy which can reduce the prices like increase in FSI)…please don’t compare price appreciation of last 10-20 years…same won’t happen now..
4. Most difficult to liquidate in case of emergency.
5. Not to forget all the money that gets wasted in taxes/registration/bank loan processing etc etc

Anyone who thinks property investment is good idea…think why does builders sell new flat..why don’t they keep it for themself.. give them for rent and sell it as old property after 10-20 years…😈

We bought a plot 4-5 years before
It’s cost is now almost 2X
I don’t think my money would have been increased with such rate  in bank

I suggest to buy property in tier 2/3 as compared to tier 1

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Kim_Jong_jun wrote:

We bought a plot 4-5 years before
It’s cost is now almost 2X
I don’t think my money would have been increased with such rate  in bank

I suggest to buy property in tier 2/3 as compared to tier 1

Plots are surely better investment than house if brought at good place at reasonable price

You are lucky that your plot has not been encroached by someone till now.

Missing