I want to invest around Rs 10 lakh in stocks and MFs for long term. I am new to equities, how to go about it? (2024)

FAQs

Which mutual fund is best for 10 lakh investment? ›

Among flexi-cap funds, you can go with Parag Parikh Flexi Cap fund or Franklin India Flexicap. For midcap exposure, consider Motilal Oswal Midcap Fund or Kotak Emerging Equity Fund. For small caps, invest in Axis Small Cap Fund or Nippon India Small Cap.

However, the thumb rule is to have a diversified portfolio with 4 to 5 different types of funds.

ETFs have lower expense ratios. Mutual funds have higher management fees. ETFs are passively managed, which means the fund mirrors a particular index, making them less risky and transparent. Mutual funds are actively managed, which means fund managers invest in securities based on their analysis and market outlook.

The majority of mutual funds can be classified into four primary categories: Bond funds, Money Market funds, Target date funds, and Stock funds. Each category possesses distinct characteristics, risks, and potential returns. Below is a comprehensive enumeration of mutual fund types.

If you have a particular strategy or want diversification within your portfolio, then investing in multiple mutual funds can be a good idea. Diversification implies spreading your investments across different asset classes, industries, and geographical regions to reduce your overall risk.

Key Takeaways. A ₹10 Lakh investment plan helps in setting and achieving financial objectives, diversifying investments, and growing wealth over time. It involves allocating the sum across various instruments, such as mutual funds, stocks, or bonds, to achieve financial goals.

What is the 8 4 3 rule in SIP? ›

As per this thumb rule, the first 8 years is a period where money grows steadily, the next 4 years is where it accelerates and the next 3 years is where the snowball effect takes place.

The answer will depend on your expense pattern. If your monthly expense is ₹25,000 post-retirement, having 1 crore can be sufficient. But, if you plan on having additional expenses, you must build a larger corpus.

Invest ₹10 Crores in a Fixed Deposit (FD) and opt for monthly interest payout to receive a substantial amount depending on the interest rate. Utilise this amount to meet recurring expenses or invest in similar tools to maximise your returns.

How to accumulate a Rs 10 crore corpus in 10 years? Assuming an expected return rate of 12 per cent per year, an investor would need to invest Rs 4.34 lakh per month in equity funds through SIP to create a corpus of over Rs 10 crore in 10 years.