POSTED BY July 17, 2014 11:09 pm COMMENTS (3)
ONHi,
I’ve been trying to understand the implication of the budget rules (debt fund taxation) to determine whether STP or ULIP is the right way to invest. I currently have a lumpsum of 10-12L available for investment and am not sure which is the right approach to use to enter equity/balanced mutual funds.
Any guidance you can provide will be highly appreciated.
Thanks!
2021 © Jagoinvestor.com All Right Reserved
Hi Hemanth,
I was referring to STP since I had a lump sum available now. However, not sure if it is still an effective way of entering mutual funds (balanced/large cap) with the exit load and the new tax rules.
So would appreciate guidance in choosing between the 3 options:
– Lumpsum investment in mutual funds (5L each in HDFC prudence and another large cap fund)
– Invest in debt fund of same house and set an STP to transfer 50K monthly into the schemes mentioned above
– Leave the funds in the bank A/C and invest 1L into each of the funds to create SIP over 5 months
Regards,
Neha
Hi Neha,
Before answering this, can you please answer my 3 queries.
a. Do you have contingency fund in place
b. Do you have life insurance.
c. Do you have health insurance……
Don’t invest in any ULIPs…. never ever…..
Do you mean SIP or STP ?