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POSTED BY ON July 7, 2014 7:11 pm ONE COMMENT
1. Please let me know what is better to do. MF or SIP? I heard SIP is better as it is average the gain or loss. Please give me any link if you have in Jagoinvestor.
2. My agent asked to take following funds.
1) Birla sunlife 100 fund 2) Hdfc growth fund 3) SBI magnum fund 4) L & T largecap/ mid cap fund
He says for SIP minimum is 1000 rs. Is that true? he says if I take back money after 1/2 yrs then also the interest would be tax free 10 10(D). Is that true?
Please help
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Hi,
Before investing in Mutual Fund, you need to first understand the concept.
As you said which is better MF or SIP, it should actually be “which is better lump sum investment or through SIP” in both case you are investing in some selected scheme of a mutual fund.
Once you gain knowledge about MF, you yourself can decide which scheme from which fund house is better for you. Do not go simply by the suggestion of your broker. It is your money and you need to know where and why it is getting invested. If you loose, your broker is not going reimburse you for the loss.
As of now, any profit generated on the money invested in equity MF scheme for more than one year is not liable for income tax. So if you are going by SIP route, each of your SIP amount has to remain invested for 1 year minimum (to avail tax benefit), else you pay a fix income tax @15.45% on profit made.
Equity MF investment should not be considered for a small period of 1-2 years, rather go for debt schemes (taxation would be different).
Ashish