Need Advice: Parking & Investing Surplus Cash 💰
Hey folks 👋 Apart from my emergency fund in FD, I currently have around ₹30L surplus cash that I want to invest. Given that the market is near all-time highs, I’ve started cautiously with an HDFC Nifty 50 Index Fund and don’t want to deploy everything at once. Wanted your advice on:
Where’s the best place to park free cash short-term? (liquid / overnight funds?)
Does it make sense to park money in liquid funds and STP into equity MFs gradually?
Any good MF suggestions for someone relatively new to investing?
Would love to hear how you all approach this 🙏
Pick some arbitrage fund, you mentioned you are already investing in a HDFC fund, pick their arbitrage fund and setup a STP from the arbitrage fund to the hdfc index fund.
Arbitrage fund is treated as equity so lesser taxes while returns will be similar to a liquid fund
Also this makes sense if you are in the higher income tax brackets, if you aren't chosing liquid debt fund might be beneficial as they are taxed at slab rate when you sell
Yes I was thinking same
Bro 20% short term gains tax when switching out from arb. What's the point. Unless market crashes extremely heavily.
If you have inside info about the market crash, then you're better off making a futures trade.
So just lumpsum it into equity if you want equity returns over long term
Debt funds are tax inefficient nowadays
Choose Arb funds, or hybrid funds
Any specific fund you can suggest
Gold. Bitcoin.
Both are at all time high, seems bit risky...
Nirmala tai wants to know your address
Just dont chase high return, invest in something safe you will thank me later
