I am stuck in a very confusing situation, i.e whether to invest in debt mutual fund or equity mutual fund ?
following assertions have raised my doubts:-
-Currently(as on 26th November 2014), markets seems to be a bit overvalued(p/e ratio of sensex being 18.4 and Nifty 21.4)
-In debt mutual fund , whether directly or indirectly, tax will be charged on interest earned by the mutual fund every year ?
-Having the age of 19 years, my risk taking capacity is very high and I want to stay invested for a long period of time (more than 7 years)
Please help me solve my problem with reasons