Mutual Funds Investment – Debt fund & Equity funds

Hi, ICICI Prudential Regular income fund is Hybrid-Debt oriented fund. The returns generated by this fund in the last 3 and 5 years are around 11% & 9% respectively. May I know your investment objective for choosing this fund?  You may go ahead with your lump sum investment plan. You may consider investing the lump sum in few installments on the days when markets fall. (or) You may consider setting up Systematic Transfer Plans from Liquid debt funds to the respective equity funds. For ex - HDFC liquid fund to HDFC balanced fund. Kindly note that the STP redemptions are treated as regular redemptions and taxes (if any) are applicable. Read: http://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/ http://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/

Dear Harleen, Kindly note that 'Switching to a direct plan from the existing regular plan will be treated like a normal redemption only.' So, you need to watch out for any taxes on capital gains. Most of the mutual fund houses have stopped levying exit load on switching to direct plan from the regular plan of the same scheme, but you should check whether your fund house also follows the same policy or not. Suggested article: https://www.relakhs.com/mutual-funds-taxation-rules-capital-gains-tax-rates-on-mfs-fy-201516/ https://www.relakhs.com/direct-mutual-fund-plans-buy-online/  

Dear Harleen, If you are choosing same Leger Folio under the same Direct plan then it should not of any issue. Are you investing through fund house website or through any online platform?

You may kindly verify it with your online provider. If they are distributors then mostly you are investing in a Regular Fund.

Hi, In reply to your PVT query ; Are you referring to NOMINATION facility? If you are investing through broker/online distribution platform, you can contact them and add nominee to your investments. In case, you are investing through fund house websites, most of them do provide an online facility to add nomination details through their portals...  

Hi, ICICI Pru Regular Income is a Hybrid - debt oriented fund. One can expect returns of around 6 to 9% from this fund for a period of say 3 to 5 years. Do note that debt funds are tax efficient than FDs. The overall interest rate scenario is in downwards slope. Related article : https://www.relakhs.com/debt-funds-types-benefits-risk-vs-return/

Hi, Advisable not to expect double digit returns from debt funds.

Hi, You may have a look at MIP funds. Kindly read : https://www.relakhs.com/best-monthly-income-plans-india-mutual-funds/

Hi, Are you referring to HDFC MIP LTP? If so, I will pick ICICI MIP 25 fund over HDFC LTP fund.  

Hi, You have asked from 'returns' viewpiont hence it is....  

Hi, MIP aggressive funds can be chosen if one has a moderate risk taking ability and investment time-frame is atleast 3 to 5 years. ICICI prudential regular income fund is a Debt oriented - conservative hybrid fund. Most of the funds have more or less similar expense ratio. I prefer better returns even if my fund as slightly higher expense ratio.

Dear Harleen, Kindly do not churn your portfolio based on short-term non-performance of a Fund. If invested in Equity funds, kindly be ready to accept the volatility.