I wish to invest lump sump amount of 7 lacs in equity mutual funds for long term (7-10 years). I have been considering investing this amount in debt funds and then transferring to equity funds through STP each month. However, I am not clear about the tax treatment for each STP transaction. Is it fruitful to invest through STP when there will be a STT on each transaction?
If yes, which are best Debt Mutual Funds where I should invest so that I can transfer money to equity over a period of 1 year?
What asset allocation you are following for this investment between debt and equity?
I wish to invest this money in 70 % equity (Large cap, mid cap and Balanced/Hybrid) and 30% debt. Thanks for quick response.
Hi, I am waiting for your response. Please guide me with this investment.
Better to increase your debt to around 40% to 50% and rest in equity (large cap and mid cap ONLY). If you are doing proper asset allocation and your goal is more than 5+ years, then why not lump sum?
Invest debt portion in one go. Regarding equity, spread this for around 5-6 months MANUALLY rather than STP.