Key Points
Go for liquid funds, short duration debt funds or a sweep-in savings account which puts the money above a specified threshold in fixed deposits to earn slightly better returns..
Investors with a high risk appetite and long-term investment horizon of more than 5-6 years should go for equity mutual funds, advises Kukreja..
For instance, if you have Rs.3 lakh to invest, identify the flexicap fund you wish to invest in, put that amount in a debt scheme of the same fund house and then start a systematic transfer of Rs.20,000-25,000 into the equity scheme..
A tip from mutual fund adviser Deepti Goel of Alpha Capital: If you already had invested in debt funds before the new tax rule came into effect from 1 April, avoid using those schemes for the systematic transfer..
Instead of putting it into an equity fund at one go, they will invest in a debt fund and start a systematic transfer plan of Rs.20,000 into the equity scheme...
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