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What should be the frequency of transferring systematically

Lot of thanks for providing valuable guidance on financial matters. Sir, all advise not to put lump sum amount in any MF schemes and it should be spread to get ideal averaging like SIP. Please let me know if I want to invest Rs. 5.00 Lakhs in some balanced fund, in how much time period the money should be transferred or put in the fund through instalments. Is it through weekly, fortnightly or monthly instalments to get ideal averaging?

Sep 20, 2016 by Vinay Vashisht, Chandigarh  |   Mutual Fund

There are no set rules for transferring or investing funds systematically.

Financial advisers rightly suggest to invest systematically so as to benefit from rupee cost averaging. Therefore, if you do not want to invest in one go then you can do the following -

1. Invest Rs. 5.00 Lakhs in a liquid fund and do weekly STP in the balanced fund over a period of time. Say, if your investment horizon is 5 years and above then you may transfer the entire amount in 2-3 years. Again, there are no set or standard rules here, therefore, you will have to apply your own judgement.

2. The other way is to do weekly SIP or choose 4-5 SIP dates in a month and do SIP in the balanced fund which you have decided to invest in.

Hope the above helps. Thanks.

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