Financial Planning (MF investments)

Hi, Do you need to withdraw this investment in 5 years from now?  May I know your investment time-frame?? (or) is this for wealth accumulation in long-term??

Thanks for quick response Sreekanth. yes this is for long term wealth planning. May be will need around 30 lakhs after 4 years

BTW, is it advisable to retain huge corpus in FD's?

Hi, Though FDs give fixed and guaranteed returns, not advisable to invest for longer period, as they are not tax efficient and may not beat inflation rate (low real rate of return). If your investment objective is wealth accumulation and time-frame is around 5+ years, you may consider hybrid funds, like equity oriented balanced funds. You may first pick Liquid funds and then move a fixed amount from them to Equity oriented balanced funds over the next 6 to 12 months, and may remain invested in balanced funds for 4 to 5+ years..You need to set up Systematic Transfer Plan. Ex : Lump sum investment in HDFC Liquid fund and STP to HDFC Balanced fund. For short term goal (Rs 30 Lakh in 4 years), you may consider a Short term debt fund or conservative MIP Fund. But, kindly be aware of the risks associated with equity and debt funds.  Suggested readings : https://www.relakhs.com/avoid-fixed-deposits-rds-for-long-term/ https://www.relakhs.com/real-rate-of-return-inflation-adjusted/ https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/ https://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/  

Hi, For an investment horizon of around 5 years you may pick couple of consistent performers from Balanced fund category. In case if you longer time-frame, you may pick one balanced fund, one diversified equity fund and one mid-cap fund. Kindly read : https://www.relakhs.com/best-mutual-fund-schemes-2017/ https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/