Should I stop my existing Recurring Deposits and invest in mutual funds ?

POSTED BY Rajiv94 ON April 21, 2014 2:20 pm COMMENTS (7)

I need to ask below two questions :-

1. I have 2000 Rs already invested in 2 MFs of diff type. I am tempting to invest 1000 Rs more.

Can you please suggest – should i invest this additional amount in existing categories and type MF i am investing in or i should invest it in the some other New MFs ?

2. I have RDs running with Banks. What would be the better step, stopping that Rds in between and start the same amount investing in MFs in place of it? My Goal is long term wealth creation with MFs and may be short term horizon of 3 years to repay Home Loan and other neccessities of life with RDs. So, what you suggest me shoul i do?

Thanks once again for your expert advice and suggestion.



7 replies on this article “Should I stop my existing Recurring Deposits and invest in mutual funds ?”

  1. ashalanshu says:

    Dear Rajiv, as the home loan ‘ll run for 20Y, please compare the results for a matching period. Can you get more juice out of your money if you remain invested for such long period? Instwad of directly pointing to any particular fund, I’m leaving it for you as home work.



  2. ashalanshu says:

    Dear Rajiv, can you not create more from the amount you intend to repay?



    1. Rajiv94 says:


      It sounds good to hear that.
      But please tell me in detail how to do that. If MF, which type of MF and name of that MF to be precise that I can start with.
      I must say it is a great idea if it can get materialize but on the other side it’s not sure shot that I will be creating more from that amount.

      As of now, aim putting nearly 10000 RS in RDs for short and long term.
      So, if you will guide by some example I will definitely start doing now

      Thanks once again with your valuable suggestions and guidance.

  3. Rajiv94 says:

    Hi Ashal

    I wanted to repay the Home Loan just to get the Monkey off my back.. i mean to get rid of psychological burden of debt. i know it giving me Taxation benefit but otherwise in the long rung if i see the amount i will repay back would be nearly double in 20yrs.
    What you suggest.


  4. ashalanshu says:

    Dear Rajiv, why do you want to repay your home loan?



  5. Viren Phansalkar says:


    If you have short term goals, you should invest in RDs and FDs (liquid fund is preferred from taxation point of view).
    For long term goals, invest in equity MFs.

    I guess, you have selected correct vehicles, now you have to concentrate on the amount needed for the goals.
    My understanding…. let us wait for the experts.

    1. Rajiv94 says:

      Thanks Viren for replying to my question and sharing with me your views.

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