Thanks for your blog.
If I have lumpsum amount ,I invest in one ultra short duration fund(ultra short term fund),then I withdraw desired monthly money for all 5 SIPs which all are from different AMCs through SWP, say on 15 th of every month
And I keep my SIPs’ date on 20 th of every month, so SIPs would be deducted from saving account on 20 th.
Why this ?
Other wise I would have to invest in 5 different ultra short duration funds to make STP possible because all 5 funds are from different AMCs.
What would you say about this strategy ,or do you suggest something ?
May I know the reason for this investment and also the time horizon?
Thanks for reply.
This is goal based investment for child’s education,time horizon is 12 years
If I go for STP,I would have to first invest in 5 different AMC’s debt funds as all 5 funds are from different AMCs ,and STP to desired funds.
Reason behind using only one ultra short term debt fund is for convenience.
Say I invest in only one ultra short term fund, withdraw desired monthly money for all SIPs , say on 15 th of every month,
It would be saved in bank account,
And keep my all SIPs’ date on 20 th every month.
In future also ,If I have surplus money, I may invest in that only ultra short term debt fund,
And apply this strategy for this goal or other goals.
Other reason for this strategy is un certainity in cash flow,
And use that only ultra short term debt fund as a parking platform for money.
What would you say about this strategy, or Do you suggest something else ?