POSTED BY April 28, 2013 3:09 pm COMMENTS (8)ON
I like to thank Manish for providing JI platform to ask my query , thanks to Ashal who guided me always and Pattabiraman for providing different fund calculators. Here my question:
1) I want to invest in liquid fund ( for 3 to 5 yrs )
i done some calculation with help of Pattabiraman Step By Step Guide To Choosing Mutual Fund and i came with 5 funds : they are :
|script name||risk grade||return grade||ex ratio||s.d||Sharp ratio||beta||alpha||r aquare|
|BNP Paribas Overnight-G||AVG||ABOVE AVG||0.44||0.13||18.78||0.04||2.37||0.05|
|Baroda Pioneer Liquid -G||AVG||ABOVE AVG||NIL||0.12||20.34||0.04||2.38||0.04|
|Tata Money Market Plan A- G||below avg||high||0.26||0.11||22.86||0||2.46||0|
|Union KBC Liquid-G||AVG||ABOVE AVG||0.16||0.12||19.83||0.04||2.38||0.04|
I had found that Tata Money Market Plan A- G And Union KBC Liquid-G are top 2 out 5 fund doing good.
1) Which one is good out of 2 or any suggestion to invest apart from above mentioned Funds
2) I Read manish article https://www.jagoinvestor.com/2008/11/difference-between-equity-debt-and.html stating that the tax rate for liquid and money market funds is 28.32%. Im confused about this statement. for Eg if invest 500rs through SIP every month for a period of 5 yrs then how much tax deducted from after i with draw ??
3) I even read http://www.valueresearchonline.com/story/h2_storyView.asp?str=22069 stating that In case you do plan to hold the investment in liquid fund for over a year; opt for the growth option to benefit from the indexation benefits. what is indexation benefits ?
Thanks and Best Regards