Need advice on Investing 1 cr+ in MF
Posted: Sun Jun 12, 2016 10:28 am
Hi,
I am going to save a considerable amount of money in next 2-3 years (more than 1 crore). I have been regularly investing till now in MF and have got good returns.
There's just so much debate going whether the current stock market is a bubble because of printed money and FII driving up the asset price without earnings justifying it and a burst is imminent. The current PE is around 22.
Should I do what the gurus of long term investing say to close one?s eyes and keep doing SIP (this means SIP of 3-4 lac per month).
I am really not sure of putting so much money at current valuations. There?s no point investing in markets at such valuation.
I am thinking of timing the market (which I know is frowned upon by long term investment gurus). I am thinking of putting 30% of my monthly saving in MF and hold remaining in cash (debt based mf or any equivalent). Once market gets to reasonable level like PE of 18 and below then 80% of my monthly saving goes to MF. Once and if it gets to below 17-16, then go 100% along with putting the saved cash (70% and 20% which I saved before) also.
This 2-3 years of earning is probably equal to my 10-12 years of my normal earning, and my desire is to to get the best value for it. I would rather wait and put this money at some reasonable valuation rather than putting it at the current levels. I do not want to time the market to extremes as no one knows if 2008 will come again or not. But I feel that for this amount of money, it?s better to wait and put it at some reasonable valuation of PE 18 and below instead of the current levels. After I resume my normal Indian level earnings, I will go back to my old ways of monthly SIP
Pls note that I am young and whatever I invest, I will hold it for long term as I don?t have any immediate future needs. Pls do not suggest real estate as I have a personal inclination towards equities , and already have an apartment that is all paid off and hence do not want to put more money in real estate.
I am going to save a considerable amount of money in next 2-3 years (more than 1 crore). I have been regularly investing till now in MF and have got good returns.
There's just so much debate going whether the current stock market is a bubble because of printed money and FII driving up the asset price without earnings justifying it and a burst is imminent. The current PE is around 22.
Should I do what the gurus of long term investing say to close one?s eyes and keep doing SIP (this means SIP of 3-4 lac per month).
I am really not sure of putting so much money at current valuations. There?s no point investing in markets at such valuation.
I am thinking of timing the market (which I know is frowned upon by long term investment gurus). I am thinking of putting 30% of my monthly saving in MF and hold remaining in cash (debt based mf or any equivalent). Once market gets to reasonable level like PE of 18 and below then 80% of my monthly saving goes to MF. Once and if it gets to below 17-16, then go 100% along with putting the saved cash (70% and 20% which I saved before) also.
This 2-3 years of earning is probably equal to my 10-12 years of my normal earning, and my desire is to to get the best value for it. I would rather wait and put this money at some reasonable valuation rather than putting it at the current levels. I do not want to time the market to extremes as no one knows if 2008 will come again or not. But I feel that for this amount of money, it?s better to wait and put it at some reasonable valuation of PE 18 and below instead of the current levels. After I resume my normal Indian level earnings, I will go back to my old ways of monthly SIP
Pls note that I am young and whatever I invest, I will hold it for long term as I don?t have any immediate future needs. Pls do not suggest real estate as I have a personal inclination towards equities , and already have an apartment that is all paid off and hence do not want to put more money in real estate.