regarding choosing a correct MF

POSTED BY prakash arumugam ON January 19, 2012 12:27 pm COMMENTS (4)

hi guys,
my savings every month is 6k, i have planned to invest 2k every month in ICICI prudential balanced fund or ICICI prudential MIP 25…can any one suggest me

1.what i am doing is rite or wrong,should i change the company which i have opted…

2.if i have invested how to track the profit percentage, if it is high can i withdraw it so that i could gain more, am i rite guys? if not correct me

3. guys can i get tax benefit for the amount which i invest every year.

4.one more information is i have planned to invest 36000rs in PPF account every year…

thanks in advance.

4 replies on this article “regarding choosing a correct MF”

  1. Dear Prakash, Please do not invest other than in PPF. Invest remaining amount in a simple product like bank RD. For next 6 months at least. during these 6 months read all the articles on http://www.jagoinvestor.com, increase your own financial knowledge & come back here again on this forum & I bet you, you need not to ask this question again.

    The next 6 month time investment in reading ‘ll be a life time investment, that I can assure you.

    Thanks

    Ashal

    1. prakash arumugam says:

      thanks ashal…will do it….

  2. Ramesh says:

    Investing in equity and equity-hybrid funds (growth option) are tax-free after completion of 1 year, while all other funds (debt/hybrid debt/fund of funds/gold fund etc) are taxable (though more efficient than FD for high tax bracket people).

    You need to have a proper comprehensive financial plan, and not a haphazard plan of selecting a MF and playing around. All your decisions should ideally be according to a written plan with sound reasoning.

  3. VIGNESH BASKARAN says:

    Hi

    Your age and your risk appetite is required in selection of the funds. I guess that u are conservative investor as u have selected balaced fund.

    1. Generally SIP in mutual fund for long term wealth creation…In your savings of 6k based on the risk appetite u can choose the equity and debt.. Instead of choosing ICICI prudential balanced fund U can go for either hdfc balanced or hdfc prudence which is having a very long track record.Remaining amount you can have in RD . (dont know ur risk appetite). Based on ur risk taking capacity have a fixed alocation. Dont forget to have emergency fund .

    2.This is not stock to play entry and exit game. select a fund . Just track it whether it is not goi below the benchmark index and. tht s enough. U need to have long term horizon to create more wealth in mutual funds.

    3. there are especially some special tax saving mutual funds called as ELSS which is the one and only funds having tax benifit till this financial year.(2011-2012).you wont get any tax benifit on investing in the above selected funds.

    4.Ppf investment is always good. go ahead.

    Happy investing!!!!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today