Sir,
I want to invest 15-18 lakhs at a time for 12-15 years (interest should be credited on maturity with initial investment). what is the best option between fixed deposit and mutual fund? If mutual fund will be the best option then please suggest me which type of mutual fund investment is required under which AMC?
1 Answers
Hi,
Saving in a Fixed Deposit for Longer period is not a great choice. Kindly read:
http://www.relakhs.com/avoid-fixed-deposits-rds-for-long-term/
As your investment horizon is > 10 years, investing in Equity oriented products is a better option, both from returns and taxation view point.
Suggest you to invest in liquid funds and then create STPs (Systematic Transfer Plans) to a balanced fund + Diversified Equity fund + a Mid-cap fund. Kindly be aware of the fact that the redemptions from debt fund are treated as normal redemptions hence there will be tax implications.
For example: HDFC Liquid fund (debt fund) -> STP to -> HDFC Balanced fund for the next 12 months or so.
Read:
http://www.relakhs.com/best-mutual-fund-scheme-risk-ratios/
http://www.relakhs.com/mutual-fund-direct-plans-vs-regular-plans/
http://www.relakhs.com/top-15-best-mutual-funds-schemes-2016-sip-lumpsum/
http://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/
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