Is one-time SIP better than bank FD?

POSTED BY bkmurthy ON October 22, 2014 12:09 pm COMMENTS (2)

Would it be wise to invest 5 lakhs as lumpsum in HDFC mutual fund (growth) for 3 years in place of bank e-STDR which attracts 30% tax on interest?

2 replies on this article “Is one-time SIP better than bank FD?”

  1. Lokesh Jain says:

    Hi BK Murthy ji,

    The plain answer is NO to your question as you have a definite time limit. And as you know, Nobody can time the stock markets. You cannot estimate as in 3 years from now where exactly the markets would be, but in case of FD you definitely know your maturity amount.

    One time investment in Equity oriented Mutual funds is not suggested. In fact, there is an alternative to that. You can invest one time in Debt fund and from there on, do an STP (systematic transfer plan) in equity mutual fund (in HDFC Growth fund in your case, if you want to).

    Hope, the above answer clarifies and answers your query.

  2. Viren Phansalkar says:

    When you say “Mutual Fund for 3 years”, I hope that you are not talking about equity or equity oriented (balanced) funds.

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