January 12, 2013 2:43 pm
I want to invest 3000/- pm for next 3 years with moderate risk. where should I invest? In Balanced funds, liquid fund or some other. note I am aleady investing into tax saving funds.
Dear Rajan, you want to invest 3K mly. After 24th month, the invested money ‘ll be taxable in all cases, no matter you are investing in Debt fund or Eq. fund. So you can not escape the Tax Axe in total. Considering the fact that with each passing month, remaining time ‘ll go down, I ‘ll not recommend even balanced fund for your moderate risk profile. Please invest the money into long term debt funds (Income funds or Gilt funds or may be MIPs with a tint of Eq.).
also, it should have good post tax returns.. tax should not eat up my returns…
which is why debt funds have been suggested. A balanced fund with more than 65% equity
will give tax free returns (if there are returns) but is not recommended (except maybe a small%) since there is big lose of capital risk involved. This is there in debt funds as well but significantly lower
Choose debt instruments like income funds. Gilt funds and some amt in a balanced fund. Not too much as the equity component will be risky for 3 years
dont invest in liquid funds they are for very short term and for keeping emergency cash with low risk
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