What should be my duration of STP to equity mutual funds

I would like to invest 60 lakhs, with distribution of Balanced 34, Debt 16, Equity 10. Target is to generate 40k per month SWP after one or two years. Currently looking at HDFC Balanced, Principal Balanced, ICICI Prudential Balance for balanced funds, BS Equity Fund, MOSt Focused Multicap 35 for equity and SBI Magnum Gilt Fund long term, UTI Gilt Advantage Long Term for debt funds. What should be my duration of STP for balanced and equity. Could you please review and provide your suggestion?

Aug 23, 2017 by Srinivas, Bengaluru | Mutual Fund

Your idea of accumulating a corpus in diverse category of funds to draw SWP after 1-2 years is good. Drawing Rs 40,000 monthly from an investment of Rs 60 Lakhs is also fine as it comes to approx annual 8%.

You have also selected good funds from balanced fund and equity fund categories. However, your selection of debt fund is not correct as you have selected GILT funds which could be volatile. As your investment horizon is 1-2 years you should select short term debt funds. Please check this link to select top performing short term funds - https://www.advisorkhoj.com/mutual-funds... As you can see, HDFC Medium Term Opportunities Fund and ICICI Prudential Banking and PSU Debt Fund could be good choices from this category.

If you want to do STP to equity and balanced funds, the maximum horizon should be 9-12 months considering that markets are in good shape and very long term STP may not help.

Hope you find the above useful. Thanks for writing to Advisorkhoj !

View All Queries

You haven't found the answer for your queries? Do post your queries to us.
POST A QUERY