[S_U_N]

Originally Posted by null

Want to put invest around Rs. 3 Lakhs into a debt fund for lock-in period of 3 FY years (from now, i.e, March-2014 to April/may-2016) to take advantage of the tax benefits compared to FD. Not sure if I should go for long term debt or short term debt funds (since short term debt fund returns look better than long term fund, but I am looking for a longer term here).

1. Any specific recommendations for debt plans? OR alternate options?
2. Also, should go through ICICI Direct (where I already have my money/Account) or go for direct plans? Any other headaches for direct investment?

For debt funds, you have to pay tax for Long Term capital gains (10% without indexation or 20% with indexation). This is if you hold for at least 12 months. I am not sure why you want to hold for 3 years. There is no other tax benefit there.

You may split the money in three equal parts and put in three different sectors or based on market cap.
Also consider Franklin US opportunities fund (equity, but from taxation point of view, it is debt in India). I am please with the performance.

You can review the performance after 12 months.

[sgiitk]

Almost any dec ent fund will do. Go for Long term / Medium Term Funds. I prefer IDFC SSIF / Templeton.

[SmartCat]

Go for "dynamic" debt funds - here, the investment manager decides where he should put your money based on how he sees the current interest rate scenario. The fund manager might even distribute your funds equally between long term and short term securities.

I'm invested in Birla Sunlife Dynamic Bond Fund and IDFC Dynamic Bond Fund.

Go through ICICIDirect.com since you have an account with them already.

[S_U_N]

Originally Posted by smartcat

Go through ICICIDirect.com since you have an account with them already.

Just note that ICICI Direct charges for every SIP transaction (another member mentioned that in this thread a few pages ago).

[abdriver2000]

Originally Posted by MaxTorque

Taking SIP decisions considering such short term changes won't really work. Before taking such decisions we should consider a period of at least six months. If I am in your place, I would have continued with the SIPs. By the way you are investing in which fund..?

My query was more related to continuing my SIPs or should I wait for 2-3 months since the market may cool off if the election results are not what is expected.

I have been SIPping since last 6 years and usually tweak it once a year. From a long term perspective, it should not matter for 2 months.

My current SIP are:

DSP BlackRock Top 100 Equity-Growth - 6K pm
UTI OPPORTUNITIES FUND - GROWTH - 6K pm
ICICI Pru Focused Bluechip Equity Fund Reg Plan Growth - 6k pm
HDFC PRUDENCE FUND - GROWTH - 5K pm
SBI Emerging Businesses Fund-Growth - 8K pm

Total 31K pm - Can go upto 35K pm

So now there are 2 questions:
1. Should I continue SIP from April or from June?
2. Any changes to the above list considering the market levels?

[MaxTorque]

Originally Posted by abdriver2000

So now there are 2 questions:
1. Should I continue SIP from April or from June?
2. Any changes to the above list considering the market levels?

In my opinion, you have selected some of the best funds. Unfortunately DSPBR Top100 and HDFC Prudence funds must be negatively impacting your portfolio. It's a good time to redeem those investments and park the funds in some good liquid funds and start systematic withdrawal plans in some good multi-cap funds. As of now your portfolio is biased to large cap funds, which is safe but may slightly drag the returns.

Now coming to your queries.

1. You can continue the SIPs as those two months may not make much impact.
2. I have already answered above.

[ghodlur]

Experts,

Is it a good time to invest in FMP's? Any good FMP's I should be looking at. Interested in a year duration. Or it is worthwhile to park the fund in a FD. I will be needing the amount in March 2015 for my son's thread ceremony expenses.

[sgiitk]

@ghodlur; You may be a bit late, since March 31 is almost here. Most FMPs come up in the latter half of March with Maturity around April of the following year. The idea is that you get indexation for two years, so the tax liability is zero or near zero. You can do the same with any debt fund with the flexibility of exiting at your discretion, and also marketability if you need the moolah earlier.

[MaxTorque]

Originally Posted by ghodlur

Experts,

Is it a good time to invest in FMP's? Any good FMP's I should be looking at. Interested in a year duration. Or it is worthwhile to park the fund in a FD. I will be needing the amount in March 2015 for my son's thread ceremony expenses.

You may check this link for upcoming FMPs.

http://www.fundsindia.com/content/js...=nfo&show=more

You may have to visit their office personally to complete the formalities so that the units allocation happens before 31st March to get double indexation benefit.

[sgiitk]

Saw a chap on TV. They are projecting the $ at under Rs.57.50 by the end of May. so any off shore fund is dicey. Also, every reason to expect the duty on Gold to be reduced very soon. So Gold is also out (exchange rate + duty).

[S_U_N]

Originally Posted by sgiitk

Saw a chap on TV. They are projecting the $ at under Rs.57.50 by the end of May. so any off shore fund is dicey. Also, every reason to expect the duty on Gold to be reduced very soon. So Gold is also out (exchange rate + duty).

Yes, my earnings on US opportunities fund is wiped off. But I am investing more as well, so, hopefully, I should gain profit again in the future.

[amtak]

Guys, Now that we are in a new financial year, I plan to invest atleast 4-6 k additional over the existing MF's that I have. Any recommendations? I am already invested in ICICI Focused Blue chip (G). UTI/BSLI? Any recommendations for ELSS and Pro's and cons?

[MaxTorque]

Originally Posted by amtak

UTI/BSLI? Any recommendations for ELSS and Pro's and cons?

Why are you going for an ELSS scheme? It is basically meant for tax saving under Sec-80C (in which maximum one lakh exemption can be availed). Normally a home loan principle amount and company PF contribution will be sufficient enough to claim this benefit. If at all it is not reaching the One lakh mark, prepay home loan and reach the maximum exemption level.

If you are still considering an ELSS fund go for Axis MF or BNP Paribas Tax Savers. ICICI also has a good fund but you already invested in another ICICI fund.

Experts please correct if I am wrong.

[amtak]

Dear MaxTorque,

I am open to options. I am pretty novice in terms of investments. What do you recommend instead of ELSS. I dont even mind part ULIP and Part MF. I am just confused, which ULIP should i select and which MF to consider. Apart from this, if there are any other recommendations that I should be looking at?

Also, when we redeem our MF's how do we pay the tax? Or it is already paid in the form of TDS?

[ghodlur]

Originally Posted by amtak

I am pretty novice in terms of investments.
Also, when we redeem our MF's how do we pay the tax? Or it is already paid in the form of TDS?

When you do any kind of investments always have a goal in mind. Investment depends a lot on age and risk taking abilities. If you have still a long way to go to enter the 50's, then equity is still the best option for returns.

IMO, if you havent started SIP in a Gold ETF, you can start now. If not then invest in a 5 star rated mutual fund preferably in Large & midcap handling mutual funds. Names that comes to my mind are Birla Sunlife Front line Equity mutual fund, HDFC top 200, DSPBR top 100 etc.