Dear All
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 |
| Quantum | ABOVE AVG | AVG | 0.36 | 0.16 | 11.94 | 0.04 | 1.88 | 0.03 |
| 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
Jeetu Ojha