MIP Vs Long Term Debt Fund

Hi, Any specific reason or purpose for holding Rs 30 Lakh in a Savings account? You may find below articles useful. Kindly revert to me with your queries; http://www.relakhs.com/best-debt-mutual-funds-india-top-debt-funds/ http://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/ http://www.relakhs.com/best-arbitrage-funds-returns/  

Hello Shrikanth - Thank you for your reply. Last 3 years I had been so busy at work and travel, did not get time to do financial planning and hence accumulated 30+ Lakhs in bank s/b. I have a reasonably well diversified Equity and balanced mutual funds. Given my age and tax efficiency this s/b money I wanted to transfer to a low risk, capital protection, 3+ years horizon long-term debt fund. I am looking at following funds for long-term debt category (wanted to avoid MIP & Arbitage), please advice if you recommend them. Include top 5-6 long-term debt recommendation from your side too.

• HDFC High Interest - Dynamic (G)
• DSP-BR Strategic Bond-Inst (G)
• HDFC Dynamic Bond – Regular Plan (G)
• ICICI Pru Long Term Plan G)
• UTI Dynamic Bond Fund (G)
• IDFC Dynamic Bond Regular Plan (G)
• Reliance Dynamic Bond (G)
• BNP Paribas Flexi Debt - RP (G)
• L&T Flexi Bond - IP (G)

Let me know Thanks Ananth

Hi, On risk parameter, MIPs have higher risk compared to debt funds as they invest around 5 to 15% of fund corpus in Equities. So, if you are ok with it, then you can invest in MIPs with a time-frame of 3 years.  The main advantage with Arbitrage funds are they are tax efficient ones if held for more than 12 months. So, if you are in high tax bracket you may consider to invest some percentage of your investible surplus in Arbitrage funds. IDFC, ICICI , HDFC from the above list and Birla Dynamic bond funds are some of the well performing long-term / dynamic debt funds.