Where should I move my fixed deposit money

My 50% of investment is currently in bank FD and I would like it to move money from it to Equity and debt market. Keeping my investment commitment of minimum 5 years, I am planning to invest in Equity market in recommended fund. My question is on Debt funds. Which one should I go for - Gilt fund, Credit opportunities for investing for 2-3 years. Which one should I go for my short term needs (1 year). Please recommend?

Jul 15, 2017 by Vaibhav, Johannesburg | Mutual Fund

From your query, we found that you want to invest in equity and debt funds by closing the fixed deposits. Your query is which category of debt funds should you invest in apart from investing in equities?

Please note that there are various category of debt funds suiting each investors requirement of investments from one day to many years. This also depends on your investment objective.

However, you have not clearly mentioned your investment horizon. In one place you have mentioned 5 years and also mentioned 2-3 years in another part of the query. Therefore, we are giving our suggestions for both the time frames -

5 years - Instead on investing in equity and debt funds separately, invest in balanced funds. Balanced funds invests up to 65% in equities and rest in debt instruments. By investing in balanced funds, not only you can enjoy the best of both worlds - equity and debts - you also earn tax free returns. Long term capital gains in case of balanced funds/ equity funds are tax free. Dividends earned from balanced funds are also tax free.

Some of the top performing balanced funds are - ICICI Prudential Balanced Fund, SBI Magnum Balanced Fund, DSP BlackRock Balanced Fund and HDFC Balanced Fund.

However, if you want to invest separately in equity funds, diversified equity funds could be good option. Birla Sun Life Advantage Fund, SBI Magnum Multi-Cap Fund and Mirae Asset India Opportunities Fund could be good choices in this category

3 years - Do not invest in equity funds unless your investment horizon is 5 years. For 3 years, you can invest in long term debt funds (also known as income funds). ICICI Prudential Long Term Fund and UTI Dynamic Bond Fund are good funds in this category.

At the end of your query, you have mentioned investment requirement for 1 year. For this purpose you can invest in liquid or ultra short term funds. Some of the good funds in this category are - Birla Sun Life Cash Plus, HDFC Cash Management Treasury Advantage Fund and ICICI Prudential Ultra Short Term Fund.

To know more about debt funds, do read here -

https://www.advisorkhoj.com/smf...

To select top performing funds, check here -

https://www.advisorkhoj.com/mutual-funds...

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

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