Hi i want to invest lumpsum amout after knowing the disadvantages of bank FD.
I have read better to choose STP than direct lump sum in mutual fund.
For SIP its easy there are top 10 funds on many wesbites but stp is different
Kindly show me steps of swp plan and how can i choose fund?
6 Answers
Hi,
Kindly opt for mutual funds if they meet your requirements and are suitable for achieving your investment objectives/goals, and not just because of disadvantages of other options.
Kindly note that SIP or STP are modes of investments and not products.
Like SIPs, you can just pick a debt fund and an equity fund, and consider setting up STP for the required duration.
Do note that STPs are considered as normal redemptions and the gains (if any) can be subject to taxes.
Same is the case with SWP. The type of fund that you would like to set up an SWP depends on your investment objective, time-frame and risk profile.
Hi thank you for the explanation. I want to invest for 3-5 year and the goal is just to create wealth from my lump sum amount.
Can you give me simple example of fund A to fund B for SWP
Hi,
If your goal is accumulation of wealth then you need to opt for Growth option, why would like to withdraw amount through an SWP??
Really sorry i mean i was asking about example of STP
Can you give me simple example of fund A to fund B for STP
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