Hi,
I am 29 yrs old and want to start investing in mutual funds via the SIP route.
I have a long term horizon and have short-listed few MF’s in the Large – Mid cap Equity diversified funds to start off with –
1. Quantum Long Term Equity – D
2. Canara Robeco Equity Diversified
3. UTI Opportunities
4. HDFC Top 200
5. UTI Dividend Yield
I want to start by investing Rs 2000/- each per month in 2 funds. With increase in income, will look at adding a pure Large cap or a Balanced fund.
I have a few doubts/questions that I was hoping to get clarified in this forum:
1. What is the difference between a ‘Dividend’ and ‘Growth’ plan for a fund (For e.g. Canara Robeco Equity diversified – Growth and Dividend)? Which is beneficial for a long term investor (5-7 yrs)?
2. What are the tax implications of MF investing (Capital gains etc.)? And would I need to track my capital gains during annual tax calculation exercise?
3. There seems to be a huge difference between 3yr/5yr ‘Returns’ Vs. ‘SIP Returns’ (as per Value Research fact sheets). Isn’t this a negative aspect of SIP investing?