Money will never come as bulk. But, no enormous effort required making bulk money. The only requirements are correct idea and disciplined approach. I have indented this article to those who have very less savings each month but want to build a solid portfolio for long term. This idea included all required factors like goal, risk profile, age and balancing.
There are belief and complaints from people who has very less savings in the month that, they don’t have enough money to invest to build a core portfolio. That is an entirely wrong thought. This belief coming from the grate myth, an investor required plenty of money to start investing and build portfolio. Even an ordinary person with very limited monthly savings can build a very effective and solid portfolio once if he read this article and follow the suitable method.
In India, an average person can save Rs.2000/- per month. Compare to dollar it is 50 dollar per month. Whether the savings is in rupees or dollar or any other, doesn’t matter. Idea and disciplined approach is matter. Please find below the options available to build a good investment portfolio with as low as Rs. 2000/-. This will help you to clear your doubts as well as move forward to start your investments.
I have reached to the following option by considering the risk profile and balancing needs of an investor.
If you are willing to take risk, you have 2 options
1. Invest Rs.2000/- monthly to a well performing equity fund using SIP (systematic investment plan) feature available with all mutual fund investments OR,
2. Start 2 equity mutual funds with Rs.1000/- each using the same SIP method.
For those who has MODERATE risk taking capacity, have 4 options
1. Start an RD (Recurring Deposit) with a bank for Rs.1000/- monthly and an equity fund with Rs.1000/- monthly using SIP feature OR,
2. Start an Equity MF and Balanced fund with Rs.1000/- each as monthly SIPs OR,
3. Start a balanced fund with 2000 monthly OR,4. Start 2 balanced fund with Rs.1000/- each in monthly SIP mode.
If you are a person with low risk profile, you too have 4 options
1. Start an RD with Rs.2000 monthly with a good bank OR,
2. Start an RD with Rs.1000/- monthly and start a debt mutual fundwith Rs.1000 monthly SIP mode OR,
3. Start a debt mutual fund with Rs.2000 monthly SIP mode OR,
4. Start 2 Debt mutual funds with Rs.1000/- each in a monthly SIP mode.
It is not recommended to continue with single SIP with one or two funds for more than 2 or three years. Instead, Start a SIP for next one or two years with one or two mutual fund and after completion of the same, start another two funds. This will give you a good portfolio of different funds in your portfolio as well as you can select various funds and able to avoid laggards.Hope all of you like this article. I am awaiting your feedbacks. Please critique and comment freely! If there is a step I missed or that you think needs to be tacked onto the end, please let me know and I’ll add it.