I am a NRI, for my Debt portfolio considering debt funds average return of 7 to 8% + tax, I am wondering whether to invest in debt funds or park in FD account ? Thanks
I am planning to invest 25 thousand per month to build up my retirement portfolio, duration is 20 years. So for I have invested 70 % in the following direct growth funds
SBI blue chip Rs 5000
HDFC Hybrid equity Rs 3000
ICICI prudential Equity and Debt fund Rs 7000
and SBI samll cap fund Rs 2500.
The remaining 30% I am wondering whether to park in debt fund as monthly sip or to save as lump some in FD once a year or increase the sip amount in my balanced fund. I am expecting minimum of 7 to 8 % for debt fund and 12 to 13% for equity fund.
Considering the current trend, I suggest you to use 40:60 between debt and equity. For equity, use one large cap , one mid cap and one small cap in the ratio of 50:30:20. For debt, use Ultra Short Term Debt Fund.
Thank you very much, your articles are very informative and easy to understand.