April 12, 2013 7:22 pm
I would like to invest 5k every month on some good debt fund. Can you please suggest any good one.
I dont mind to split 2.5k into 2 debt funds.
Thanks in advance
Dear RV, there is only one liquid fund from Quantum AMC. In case of Liquid funds, as the underlying assets are very short term maturity papers, the risk is very low. Liquid funds are a bit non liquid when you compare to a plain SB account but this is compensated by the higher return you are getting over SB account.
I fall into 30% tax slab. Also do you have any specific Quantum Liquid funds. Since I’m new to this world dont like to see some heave failures.
Some websites on the info of these funds would be helpful.
I would suggest L&T Liquid for short term and BSL Dynamic Bond Ret-G for long term. Try to go for direct option if convenient to you
For 40k, you didn’t mention the time for which you want to invest.
I am hoping that you have an appropriate equity allocation already
Dear RV, for 1Y need you may opt a liquid fund like Quantum Liquid. For 3Y or more, you may opt Dynamic funds like Birla Dynamic or SBI Dynamic. Regarding the 40K amount, if you are in 10% tax slab, you may opt for FD due to simplicity for you. Else you may invest the same in Quantum Liquid fund for better tax adjusted returns.
I’m sorry for missing the duration: Below are some I’ve thought
Short Term: 1 Year
Long Term: about 3 years.
Also I’ve got some surplus of 40k which I’m planning for a FD. If you can suggest a better option to FD then I would like to think about it.
Without knowing the duration of investment no recommendation can be given
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