Mutual fund investment through SIP

Shri 1
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I want to statr SIP in Mutual fund. Rs. 5000 per month for 25 Years. So I contacted a Certified Financial Adviser. He advise me to do SIP of Rs.1000 in HDFC Top 200 and Rs. 4000 in Fedility Tax Advantage (G) for ELSS. He told me that there will be service charge of 1% of my total investment per year. And also asked for further meeting charge. (only fist meeting is free of cost) Now my question is 1. Are these funds good enough for my financial planning ? 2. Should I invest through him and pay service and meeting chagre ?

Pl. Suggest me.

sip mutual-fund investment
2 Answers

HDFC Top 200 is a good fund for long term investment. You may also choose from Birla Sunlife Frontline equity fund, DSP Blackrock Top 100 fund and Reliance Regular Savings – Equity

For tax saving purpose, you may choose from Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.

I don't think that suggestions by your CFP are sufficient for financial planning. A portfolio for long term must have mix of equity, debt, gold/silver based investments.

You can create your portfolio with following components:
Mutual Funds MIP + Post Office MIS + PF - 30%
Liquid (Fixed Deposits + Liquid MF) - 10%
Gold - 10%
Equity MF+Shares (50%)

Apart from investments you must get term insurance, personal accident and disability rider, critical illness cover, house (plus costly items) insurance, medical insurance for you and your family.

Pankaj Batra5212

There is no need to pay him service and meeting charges if he not qualified enough to do financial planning. You can research directly if you have time and do investments yourself.

Pankaj Batra5212
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