I have invested in HDFC Hybrid debt, Reliance Hybrid Bond fund, ICICI Regular Savings Fund and Franklin Ultra Short Bond Super Institutional(largest portion). This is 43% of my investments in mutual funds. Bank Fds constitute 60% of my savings. Should I invest more in debt funds for the tax advantage? Should I choose a different fund?
Your debt portion of investment depends on your financial goals. Without knowing much about those, it is hard for me to guide BLINDLY.
I dont have any immediate requirement. Just keeping my money in FDs so thought if it”s better to go for liquid or ultra short funds for tax efficiency. Is it ok to remain invested for more than 3 years in such funds?
But I want a time horizon at least how many years you want to hold. Yes, debt funds have an advantage over FDs if your holding period is more than 5 years. In that case, park 1/3 in Liquid Fund, 1/3 in Ultra Short Term Debt Funds and another 1/3 in Arbitrage Funds (taxation of Arbitrage Funds will be like equity funds).