POSTED BY June 24, 2013 12:05 pm COMMENTS (7)
ONDear Ashal and FFC,
I am expecting 5-6lacs from PF/gratuity in 2 months after leaving my current job. I am planning to invest in debt instrument for duration 3 months to 15 months (should be flexible i.e. able to redeem if required; even more than 15 months tenure for some amount).
I checked Liquid, Short, Ultra short, Income and Gilt but confused which option(s) shall I opt, whether growth or divident pay/reinvest and how much of amount should I allocate?
I already have Term, Health ins plan; also SIP of 15k/month and emergency fund around 2L. Tax bracket: 20%.
Could you please assist/guide me?
Thanks in advance.
2021 © Jagoinvestor.com All Right Reserved
Dear Ashal,
Did you mean all the lump sum (or by STP) amount in QLTEF ?
Thanks
Sandeep
Dear Sandeep, who is stopping you to put this amount into Eq. MFs (QLTEF) as you want to invest for long term?
Thanks
Ashal
Thanks Ashal and FFC!!
I dont want to withdraw this amount as its more beneficial for retirement but transfer takes more time. Currently there is no immediate requirement of this amount as I have enough emergency fund.
So, Is there any instrument (other than FD/PPF/transfer to other PF account) where I can invest this amount for long term e.g. till retirement or more than 5-10 yrs? (current age is 36yrs)
(P.S. I already invested in Quantum Liquid – STP – Quantum LTE)
Thanks in advance.
Dear Sandeep, as you are not sure of the time frame. a pure vanilla liquid fund like Quantum Liquid fund should be the choice for you.
Thanks
Ashal
Thanks FFC!
I am expecting comparatively better return than FD (considering TDS on FD).
As mentioned above, I would prefer some amount (2-3 lacs) to invest more than 15 months (may be 2-3 yrs). which option would be better; both return and taxation point of view?
I would look at the importance of the goal and therefore risk I could afford.
if the goal is crucial and only 2-3 years away I will go with ultra-short term funds 6-7%
If I can afford a little more risk then I will go with an income fund (well established fund house and low risk profile) like Templeton India.
If you want something which may redeemed in 3 months or 15 months then a liquid fund (growth) has liquidity with no penalties. An ultra short term fund may also be okay although it has a slightly higher risk.
Don’t worry too much about returns.