What are the best Mutual Funds to invest and type of Mutual Funds

Happy to note that you like our articles and decided to invest in Mutual Funds. The answer to your queries will be as follows –

1. SIPs - You can invest in two diversified equity funds – Rs. 5,000 each. There is a vast number of diversified equity funds to choose from. However, some popular and time tested funds are – HDFC top 200 Fund, HDFC Equity Fund, Birla Sunlife Frontline Equity Fund, Franklin India Bluechip Fund, Franklin India Prima Plus Fund and so on.

SIPs should be done with a long term view. Therefore, I suggest you do not give any ‘End Date’. Go for ‘Perpetual’ SIPs as you always have the option of stopping/ closing the SIPs anytime you wish.

Another suggestion would be – In case you also want to save taxes under section 80C, then instead of doing SIPs in Diversified Equity Funds you should go for “ELSS’ funds. However, in this case each instalment will be locked in for three years. You can choose from Axis Log term Equity Fund, HDFC Tax Saver, Franklin India Taxshield and so on.

2. Debt / Liquid funds – Liquid funds are for parking your surplus cash, therefore, even after paying tax the current returns are higher than Savings Bank Account of banks. To avail Long Term capital gains Tax benefit from debt funds, you will now have to invest for three years. Suggest, you may go for FMPs with maturity period of three years and more.

Are you connected to any Mutual Fund advisor in Udaipur? If not, let us know – will connect you to someone registered with Advisorkhoj.com