Dear All,
I have a goal of having 300000 with in 6 years for one of my goal… and i feel this tenure would be enough for repeaing benefits out of Equity Markets.
Also, at the same time i am planning to make tax planning using this money in Mutual FUnds… not sure on DTC (let me rethink when it comes).
I have gone through Canara, Reliance, HDFC, Quantam and ICICI Prudential Tax Plan Mutual Funds…
I personally feel all of these are heavily invested in Large Cap stocks… however, being in stock markets for quite a while i feel the Interest rate cuts (which might take place this year) and the rreforms to continue…. this is a good time for not only frontline stocks but Mid and Small cap companies to rally and make new highs…
Hence i feel Reliance tax Saver which has highest Mid and Small Cap composure to be my choice of Fund. However, i completely agree that this poses a significant risk if Markets tumble down…… But this goal i am setting for Capital Aprreciation and not for (or not viewing only) Capital Protection.
I will not be bothered about few hick ups here and there.
This Fund is invested highly in Automobile, Engineering and Financial rest others focus on Financial sector the most. I feel if the financial sector is to get new life into it it will take automobile as well with it… hence giving this Fund a double advantage…
This is my small analysis… i would encourage people to cut this analysis and let me know if i am thinking the right way.