Mutual fund - Q & A Forum

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Deepak asked 8 years ago

Hello srikanth, Thanks for your blog. 1) I want to invest in 5 different funds from 5 different AMC. I have a lumpsum amount, if I invest in only 1 debt fund, and withdraw desired all 5 SIPs' monthly money through SWP ,say on 15 th of every month,which would be deposited in my saving account, And then if I keep my all SIPs' date on 20 th of every month . What would you say about this ? 2)what do you suggest, liquid fund or ultra short duration fund for STP ? Thanks.

3 Answers

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Sreekanth Staff answered 8 years ago

Hi, Instead of SWP, you can prefer STP right? You may pick Liquid funds to do STP to Equity funds.

Deepak replied 8 years ago

Thanks for reply.
Why I was thinking about SWP over because

In STP I would have to invest first in 5 liquid funds.Then STP into 5 equity funds.

In SWP I have to invest only in one debt fund.
And through SWP all SIP’s monthly amount would be saved in saving account, Then SIP.
I am asking out of curiosity
1)What may be your reason to choose STP over SWP ?
2)Does every AMC has liquid fund ?

Thanks.

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Sreekanth Staff answered 8 years ago

Kindly read : https://www.relakhs.com/best-mutual-fund-schemes-sebi-norms/

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Sreekanth Staff answered 8 years ago

Hi, It is a matter of convenience and make it a automatic process. If you have to pick 5 equity funds kindly check their portfolios overlap and take a decision. Yes, almost all AMCs have Liquid funds. (STP/SWP ? - No thumb rule. It can be as per your convenience). In both cases, watch out for Tax implications. Related article : https://www.relakhs.com/mutual-funds-capital-gains-taxation-rules-fy-2018-19/