Dear Sir,
I need to start SIP for time horizon of 4 years.Pl. suggest the mutual fund category suitable for this time period. My risk profile is moderate.As Debt funds are suitable for 1 to 3 years duration & Equity funds are suitable for than 5 years duration. I am confused to select the fund category suitable for 4 years.
Is there any dead line indicated by SEBI for fund restructuring? Shall I wait till restructuring to invest in the fund category suggested by you OR start investing.
3 Answers
Hi,
SEBI has recently suggested some more new amendgments to the original re-categorization guidelines. Looks like, this entire process may take some more time. Suggest you to start implementing your investment plan.
You may consider options like Short term Debt funds, conservative MIP funds, some portion in Equity savings funds etc.,
Ex : Franklin Low Duration Fund, SBI MIP-Floater, ICICI Equity income fund / ABSL Equity Savings Fund etc.,
Related articles :
https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/
https://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/
Dear Sir,
Thanks for the reply. Shall I consider Equity balanced fund apart from suggested funds by you.Any problem to invest in balanced fund for 4 year og time horizon?
Hi,
The key-point to note is, equity oriented balanced funds can invest >65% of the corpus in Stocks (direct equities), hence they have higher risk than debt/MIP funds.
The longer the time you remain invested, higher the probability to get decent risk adjusted returns.
https://www.relakhs.com/best-balanced-mutual-fund-schemes-review/
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Dear Sir,
Thanks for the reply. Shall I consider Equity balanced fund apart from suggested funds by you.Any problem to invest in balanced fund for 4 year og time horizon?