Good Afternoon Sreekanth,
You are doing wonderful job of educating people in personal finance stream and I highly appreciate all your effort. I'm following your blog and Facebook page, which really helps people like me and many more. I have recommend your blog to couple of my colleagues and friends here.
After read your couple of post, I have got huge motivation to do big time investment in my career. here my questions with regards to my investment objectives.
1) I have invested in Axis long term equity fund - Regular plan in 2014 Jan for 99850 Rs. Now its grown to 135+k. As this invested lock period completed. Now I have chosen following three funds, can you please suggest which one I should pick for my next financial year investment in 80c.
Reliance Tax shield fund (D)
Franklin india tax shield (D)
ICICI Tax saver fund (D)
actually I decided to invest only in direct fund after reading one of your blog :).
2) I'm getting my chit amount 5 lakhs by this month, I would like to invest in debt fund as I'm planning to buy some plot in near future. So can you please suggest some good short term funds with some reasonable return(12%14). Investment horizon less then 2 years. Also I want to invest this lump sum money in 5 different funds. Last but not least without exit charges and tax.
3) Regarding ELSS investment what you would you suggest lump sum investment or SIP. I find SIP would difficult as I have to wait actually four years to get whole invest to cash.
Regards
Gopalakrishnan
2 Answers
Best Answer
Dear Gopalakrishnan,
Thank you for your appreciation and motivating words!
1 - Given a choice, I will invest additional sum in Axis LTE and Franklin Tax shield fund / Birla Tax relief 96 Fund.
2 - Kindly have a realistic expectations from Debt oriented funds. They rarely can generate returns of around 12% and that too in couple of years.
You may consider options like Short Term Debt funds or MIP Conservative funds. But kindly be aware of the risks associated with them.
Ex : SBI MIP Floater or Franklin Low Duration Fund.
3 - I too prefer investing 2 to 4 installments in a Financial year in ELSS fund rather than SIPs. If your 80c quota is not full, you may make few lump sum investments in this month / March, thanks to some correction happening in the markets.
Related articles :
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/
https://www.relakhs.com/200-day-moving-average-dma-mutual-funds/
Thank Sreekanth for your swift response, Can you please suggest or guide how to choose best short term funds MF?
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