I am new to mfs I would like to invest lumpsump amount of 1 lac and also like to start sip. Please suggest some funds.
Riya-Without knowing the time frame it is hard for me to suggest.
Time frame would be 3 years
Riya-Stay away from mutual funds. Simply use Bank RDs.
Any specific reason for tht
Riya-Equity mutual funds are meant for long term investment. Personally I feel anything less than 5 years is shorr term, 5-10 years medium term and 10+ years as a long term. Debt funds are good tax efficient only in case your holding period is more than 3 years. But in your case you specifically mentioned 3 years. Hence, considering the volatility and tax efficiency, I suggested Bank RDs over debt or equity mutual funds.
Thanks for your information. As I am beginner in mfs I didn’t knw but I can invest for a longer period of time
Riya-Be specific of your time, then choosing products is easy. Otherwise, you may enter into wrong product.
Thanks for ur advice sir. I would like to invest for a period of 5 years.
Riya-Then to the maximum invest around 20% to 30% in equity and rest in short-term debt funds.
Thank you I will follow ur advice. Can u suggest some short term debt funds
Riya-You can use Franklin India Low Duration Fund or HDFC Short Term Fund.
Thanks for ur suggestion I Wil be investing as per ur guideline.