best MFs for different durations

POSTED BY Ajinkya Darshane ON June 22, 2012 8:18 pm COMMENTS (3)

plz suggest best mutual funds for the following durations in order to gain optimum returns, ( FDs are not tax effective for people who are in 30% slab)

1. 6 months

2. 1-2 years

3. 2-3 years

4. 5 years

3 replies on this article “best MFs for different durations”

  1. Ajinkya Darshane says:

    thanx BanyanFA…

    i always thought that financial planning should be started from short term to long term..dont know whether it is a right thought…pleasde throw some light on it…

    btw which bond fund would u like to recommend? birla dynamic bond fund? it has net assets of alomost 5cr+ .(do u think that it is an important factor in selecting debt fund?)

    which funds would u recommend for MIP and balance fund catergory?

    my choice – MIP- HDFC MIP long term
    – HDFC balanced/ HDFC prudence(this is slightly tricky to chose between these two)

    1. Dear Ajinkya, the basic query is already answered by dear BanyanFA hence not elaborating it more. Regarding financial planning thing – Yes your thinking is in right direction.

      Birla Dynamic bond fund is a good fund.

      MIP – HDFC MIP LTP is again one of the best in business.

      Balanced – Off late HDFC Balanced is performing far better than Prudence but my choice ‘ll still be Prudence.

      Thanks

      Ashal

  2. BanyanFA says:

    Ajinkya,
    I am glad you asked this question as diff MFs are suited for diff time horizon.

    1. 6 months – Only Liquid Funds – If you are in 30% slab, then go for HDFC Cash management TAP with Dividend reinvestment option to bring own your Tax liability from 30% plus to 15%

    2. 1-2 years – Combination of Liquid Funds (20%) and Bond Funds (80%).

    3. 2-3 years – Combination of Bond Funds (20%) & MIPs (80%)

    4. 5 years – Combination of MIPs (20-40%) , Balanced Funds (30-50%) and Equity (20-30%)

    Regards
    BanyanFA

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