Suggestion on parking money received from Post office investment maturity

POSTED BY Jai ON January 22, 2014 6:20 pm COMMENTS (7)

Folks – I will have around 1 Lac available in coming months due to maturity of postal MIS. My investment horizon is 3-4 years. Pls advice if I should look for a debt, balanced fund or another fixed invest instrument like bank of post. Also, pls advice any specific fund. Thank You.

7 replies on this article “Suggestion on parking money received from Post office investment maturity”

  1. ashalanshu says:

    Dear Amit, you may opt short term fund as post tax return for you ‘ll be higher here against FDs.

    Thanks

    Ashal

  2. kuntal says:

    Hi Amit,
    It does not really matter, as the difference is negligible in short term debt funds. What matters more is that the investment is in secure companies with minimum risk of default. So choice of AMC company is more important than fund itself.
    Choose a company of your choice (I prefer Franklin Templeton,but HDFC is also fine),
    see what short term debt fund they have, and invest. Simple.
    Thanks,
    Kuntal.

  3. Amit AB says:

    Thanks Kuntal. One question though, while browsing other threads on this forum, I see HDFC High Interest Fund – Short Term Plan recommended for similar scenarios. Can you pls advice if Templeton India Short Term Incomeor HDFC is better fund?

  4. Amit AB says:

    This is intended to be used towards school admissions for my daughter.

    1. rahul123 says:

      A debt fund or FD will serve the purpose.

      You know that there is a certain outflow of cash after 3-4 years and it is related to your child’d future. See the performance of market over last 3 years (assuming similar case for next 3-4, market might not give any good positive returns)Why to gamble with child’s education?

      Thanks,
      Rahul

  5. ashalanshu says:

    Dear Amit, what is going to be end use of the money after 3-4 years?

    Thanks

    Ashal

  6. kuntal says:

    Hi Amit,
    You can go for short term debt fund (eg. Templeton India Short Term Income-Growth)
    for a time horizon of 3-4 years, specially if u r in 20% or 30% tax bracket.
    Thanks,
    Kuntal.

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