FINANCIAL ADVICE – MF Portfolio

Hi, For Liquidity purpose : Can you afford to take little bit of risk by investing in Debt funds or other debt oriented securities? Is safety of capital a must? As of now, there are better funds than HDFC Equity & UTI balanced funds. You may consider investing Rs 14 Lakhs through STPs (Systematic Transfer plans) for say next 1 to 2 years, in balanced fund, mid cap fund and multi cap funds. Ex : HDFC or TATA balanced fund, HDFC midcap opportunities fund and ICICI Value discovery or Franklin Prima plus fund. In case, you can afford to take more riks, do consider a small cap fund like Franklin Smaller companies fund. Read: https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/ https://www.relakhs.com/mutual-fund-portfolio-overlap-comparison-tools/ https://www.relakhs.com/best-mutual-fund-schemes-2017/

THANK YOU SIR FOR YOUR PROMPT REPLY.  SIR,1)FOR LIQUIDITY PURPOSE I WANT SAFETY OF CAPITAL.SO PLEASE SUGGEST FUNDS ACCORDINGLY. 2)WHERE SHOULD I INVEST INSTEAD OF HDFC EQUITY AND UTI BALANCE FUND FOR 20 YEARS TIME FRAME? 3)SIR, YOU SUGGEST FOR STP BUT SIR WHERE SHOULD IN INVEST PRIMARILY TO GET THE BENEFITS OF STP? 4)SHOULD I STOP THE UTI MID CAP SIP AND RUN THE HDFC MID CAP OPP SIP?

Hi, 1 - Kindly note that even Debt funds are associated with certain type of risks. So, if you understand them, you may consider Liquid fund + Arbitrage fund + some money in FDs. Read: https://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/ https://www.relakhs.com/best-arbitrage-funds-returns/ 2- I have suggested funds in previous comment. 3 - STP can be from Liquid fund to Equity fund from same fund house. Ex : HDFC Liquid fund to HDFC balanced fund. 4 - As of now, you may continue your holding in UTI fund.

SIR, THANK YOU FOR GUIDANCE. SIR, I GO THROUGH A NEWS RELATING TO THE SHARPE FALL OF TAURUS DEBT AND LIQUID FUNDS. HERE I HAVE QUESTION THAT IF I WILL  PLAN TO INVEST RS.450000 IN HDFC LIQUID FUND AND TAKE   A STP FACILITY FOR HDFC BALANCE FUND FOR 25 YEARS THEN WILL IT MAKE ANY PROBLEM IN FUTURE?

Hi, Kindly note that Debt funds too are associated with certain type of risks. But the probability of getting negative returns on debt funds is lower than equity funds.