Mutual Fund Investment Advise as I am a beginner.

Hi Pankaj, I just started earning and would like to invest in some Mutual Fund where in I can get a Tax Benefit.Please advise... I Have gone through to the questions asked previously and zeroed in HDFC Tax Saver Plan but I have to invest 10,000 to 12,000 P.M., would it be right to invest that whole chunk in one plan or should I split my investments? If I need to Split my investment, please suggest me any other plan? Also if you can brief me on the procedure of the How to start investment ?

Thanks Akhil

asked Nov 05 '11 at 16:28 by Akhil 1111

Tax saving mutual funds would only be available till this financial year end (March, 2012), as after that direct tax code comes into force which has removed this investment from tax saving.

There won't be much difference if you invest whole amount into a top equity linked tax saving mutual fund or split into top 3-4, as most of them invests in same underlying stocks.

If you want to split into multiples, you can choose from top funds like Canara Robeco Equity Tax Saver, HDFC Taxsaver, Franklin India Taxshield, DSPBR Tax Saver and Fidelity Tax Advantage.

As there are only five months left in this financial year, you won't be able to run SIP for this investment so you would invest lump-sum for 10-12,000 every month yourself on a fixed date, say on 10th every month.

I would advise you to go through below pages also:

  1. How to transact in Mutual Funds online
  2. How to open a Systematic Investment Plan

answered Nov 06 '11 at 14:39 by Pankaj Batra 5.2k320


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Asked: Nov 05 '11 at 16:28

Seen: 1,720 times

Last updated: Nov 06 '11 at 14:39