October 22, 2014 12:09 pm
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?
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.
When you say “Mutual Fund for 3 years”, I hope that you are not talking about equity or equity oriented (balanced) funds.
Your email address will not be published. Required fields are marked *
Please subscribe me to your Email Newsletters
This site uses Akismet to reduce spam. Learn how your comment data is processed.
Download Our FREE Ebook!
Available only for first 100 people today
New here? Create an account