Friday, December 18, 2009



A HouseWife Mrs.SA wrote :
Dear Sir,
You are doing a great job with your blog. I have learnt a lot from your blog. Even though I am afraid of Equities, your writing has given me confidence to invest in Mutual Funds, to be begin with.

I'm a home maker & can save Rs.500/- every month. I want to invest this amount
systematically every month for next one year & want good return after 5 years.
Now my question is which option is the best for my investment. I don't
want to take high risk.

Thanking You,


Dear Soma Madam,
I have stopped giving FREE advise both online and offline. I am charging a minimum of Rs.1000 for each advise. But I am making an exception in your case because of your status as a Housewife and also because of your small investment amount.
But note this is a one off exercise. Next time, you will have to pay me for any advise.

My Advise :
Being a Housewife with very little invesible amount and also with your low Risk taking ability, you are better off investing in Large Cap Funds and/or Balanced funds.
I feel 500 is too little. But something is better than nothing. Even with this 500, I will try to get you not only Good Low Risk Funds, but also good diversification.
My advise would be to split your 500 into 3 parts and invest as under :
250 * 1 in Sundaram Select Focus Fund
150 * 1 in Reliance Regular Savings Fund ( Balanced )
100 * 1 in SBI Magnum Balanced Fund

This way, 50% of your investment is going into Balanced Fund and the rest 50% into Large Cap Fund and you are getting into 3 different AMCs.
I encourage you to continue to use the SIP way as this is the BEST way to invest and also make maximum returns on your investment.

With you all the best.
Srikanth Shankar Matrubai,

Also visit


  1. Dear Sir,

    I come across this blog. Excellent to view all your suggestions and more informative.

    I am K.Rajesh working in an IT concern. I am 25 years old. Want to invest 10,000 pm (My salary 25,000) in the ELSS Taxsavers via SIP.

    1. Pls give me the split ups to invest in several funds.
    2. Is it good to invest total 10,000 pm in a single fund (HDFC Taxsaver). Is it dangerous? I thought few funds 2 or 3 enough in the portfolio. Is it a bad idea?
    3. To start the SIP and to invest monthly, whom we have to contact. OR via DP account.

    Please Reply.


  2. Dear Rajesh,
    thank you for your kind words. I would be more than willing to advise you. But as you, I have my Charges for it. Please pay the same and you will get your Advise.
    Srikanth matrubai


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