Investing for Daughter's marriage

I' m long term invester through mf via sip n top up time to time when market got corrected 5-6 pc from high i have --rel growth rel.regular saving hdfc top 200 Hdfc prudance birla front n mid cap mainly n one sectorial fund rel banking i m 50 years old n have invested in mf since 2004-5 till i have invested 14L n have handsome gain today i need my money after 4 -5 years for my daughter's marriage at present i have very little responsibility n can invest 30k every month more. pl check my portfolio n advise me--when we start withdrawl , can invest more 1-2 years 30-40k every mone in the above mf or any other pl advise my son got job in this years n start to invest in mf for next20-25 years n start with very small amount --rs 3000pm pl dvise mf for him

thanks

Ramesh Sahu

Dear Ramesh, To create a corpus specially for your D'ter's marriage, here is my take.

First calculate what 'll be your expenses, if marriage is 2day in 2010? Say the figure comes out around 10L Rs. Now calculate down the line after 5 years, what 'll be the expenses due to impact of inflation say @ 7% rate. For example the figure comes out around 15L Rs. so that's your cut off point for exclusive corpus with a exclusive goal.

The moment, your current fund value reaches that cut off point, redeem at least 50% of your holdings & invest the same in debt funds. I.e. out of your 15L fund value redeem at least 7-8L Rs. & invest the same in debt funds. On the other hand, keep on investing your fresh SIPs in the funds chosen by you.

When the goal is just one year away, redeem sufficient amount from the funds to create the final corpus with out any problem & invest the same in debt fund.

Regarding your choice of funds, I w'd like to replace Birla Midcap with Quantun LTEF.

For your son, you may ask him to invest 1K Rs. each in following funds thru SIPs

HDFC Top 100
DSP Eq.
Quantum LTEF

Thanks

Ashal