June 22, 2012 8:18 pm
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
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)
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.
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%)
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