I have around 4 lacs and I am planning to have them locked in for 5 yrs and hence interested to park it in MF.
Please suggest what is a better fund to have purchased? Is HDFC Equity fund good?
Please advice.. Thanks..
Raje-First of all, NO EQUITY FUNDS. Second option is, avoid any long term debt funds also. Instead I only suggest you to use short-term debt funds and Arbitrage Funds.
Thank You for the suggestion….Can you please advice on any of the short term debt funds or arbitrage funds please
Raje-You can use HDFC Short Term Fund or Franklin India Low Duration Fund. In Arbitrage Funds, you can use ICICI’s Arbitrage Fund.
Thank you very much..is it HDFC Short Term Opportunities Fund (G) you are referring to ? And arbitrage is ICICI Prudential Equity Arbitrage Fund – Direct Plan (G) or ICICI Prudential quity Arbitrage Fund – Direct Plan (D) ? Just wanted to make sure i am thinking correct as locking more funds..what is your advice on HDFc equity or HDFCcapital \sbi bluechip or icici value discovery for 20% said fund allocated pbly for some more tenure? is it of to have this way?
Raje-Yes, your understanding is correct for HDFC. Regarding ICICI, chose Growth option than Dividend Option (D). No equity for the time horizon you are planning.
Great Thanks Basu
Basu, but HDFC Short Term Opportunities Fund (G) is a debt fund and hence will be taxable guess…JUst wondering for any other tax free fund after tenure…Is it fine to go for balanced fund for 5+ yrs which is tax free ?
Raje-Whether your requirement is safety (as time horizon is just 5 years) or tax free return? In my view, considering time frame you have in mind, I suggest no equity. Rest is left with you to decide.