Please suggest some funds.
Short term Plan to invest 6k in MF & 2k for pension (Long term)
Planning to purchase a land after 5 years, I can invest 6k monthly.
Pension plan through any MF 2k monthly.
Biju-For short term goals like 5 years, I suggest to use short-term debt funds and arbitrage funds. For long term goals like creating corpus for your retirement or pension, I suggest you to go for two funds. One is Franklin India Bluechip Fund (Large Cao) and HDFC Midcap Opp Fund or Franklin India Smaller Companies Fund (In Small/Midcap category).
Dear Sir,Thanks for your valuable input,I need to invest in both debt & arbitrage funds ? or any one type. Pl’s suggest short-term debt funds and arbitrage funds suitable for me.Other queries are.. – Which is the best method to purchase Funds ? Visiting Banks or through online.- How about Bank RD – ? is short-term debt funds and arbitrage funds are better than RD ?
Biju-Invest in both the funds equally. You can use the ICICI or IDFC Arbitrage Fund. In short-term debt funds, you can use Franklin short term income plan or HDFC Short Term Opp Fund. If you are confident of managing the funds then go for DIRECT mode (visiting mutual fund companies directly). If not comfortable then chose the option which suits to you like Bank or Online (because both works as middlemen). Debt and Arbitrage Funds have an advantage over RDs when it comes to taxation.
Thanks for your reply..If i invest 6K SIp for 5 years in Debt & Arbitrage how much tax i can save compared to RD.
Both can give you around 8% (pre-tax returns). The advantage of arbitrage fund is, it is treated like equity investment and fully tax-free. Debt funds invested for more than 3 years considered as long-term and taxed at 20% with indexation benefit. However, FDs interest earning taxed according to your tax slab.
Thank u very much.