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What are the best Mutual Funds to invest and type of Mutual Funds

I have been reading almost most of the articles on your website and has finally helped me to decide on investing in Mutual funds. I want to know from you if I decide on Rs. 10000 SIP per month how should I utilize it and what would be your suggestion where to put this amount and for how much tenure. Also, so far I have put some amount in Liquid funds/ debt funds but after new budget have to decide on that amount too as it will be taxes and indexation benefit is removed till 3 yrs. Your suggestions would be of great help.

Jul 31, 2014 by Ankit Talesara, Udaipur  |   Mutual Fund

Happy to note that you like our articles and decided to invest in Mutual Funds. The answer to your queries will be as follows –

1. SIPs - You can invest in two diversified equity funds – Rs. 5,000 each. There is a vast number of diversified equity funds to choose from. However, some popular and time tested funds are – HDFC top 200 Fund, HDFC Equity Fund, Birla Sunlife Frontline Equity Fund, Franklin India Bluechip Fund, Franklin India Prima Plus Fund and so on.

SIPs should be done with a long term view. Therefore, I suggest you do not give any ‘End Date’. Go for ‘Perpetual’ SIPs as you always have the option of stopping/ closing the SIPs anytime you wish.

Another suggestion would be – In case you also want to save taxes under section 80C, then instead of doing SIPs in Diversified Equity Funds you should go for “ELSS’ funds. However, in this case each instalment will be locked in for three years. You can choose from Axis Log term Equity Fund, HDFC Tax Saver, Franklin India Taxshield and so on.

2. Debt / Liquid funds – Liquid funds are for parking your surplus cash, therefore, even after paying tax the current returns are higher than Savings Bank Account of banks. To avail Long Term capital gains Tax benefit from debt funds, you will now have to invest for three years. Suggest, you may go for FMPs with maturity period of three years and more.

Are you connected to any Mutual Fund advisor in Udaipur? If not, let us know – will connect you to someone registered with Advisorkhoj.com

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