Ultra-short-term debt funds are the best bet for immediate goals


I am 27, live in Mumbai, and earn 48,000 a month. After expenses of 25,000, I have been investing 1,000 each in three SIPs since June 2017: Aditya Birla Sun Life Frontline Equity Fund – Dividend – Regular Plan; Franklin India Flexi Cap Fund – Growth; and HDFC Prudence Fund – Regular Plan – Growth. These funds come to about 99,000. I also have an emergency fund of 266,000. Based on this information, kindly advise me on the following:

a) Are the funds I am investing in performing well, or should I shift?

b) Is it advisable to hold an emergency fund in a bank?


c) What should be my financial plan for marriage in 2022 and to buy a 1 BHK house in Mumbai?

e) I have taken a loan of 1 lakh from a friend, which I am repaying at 5,000 per month. Is there a fund using which I can repay faster and also earn some money in return?



Your current saving potential is about 23,000 after monthly expenses of 25,000. Your savings are of 3,000 and loan repayment is of 5,000, which leaves a balance of 15,000 that is not being saved. This, too, needs to saved in an investment plan.

The immediate need is to create a corpus for your marriage expenses. As the funds are required within a year’s time, you cannot take a risk with the money and can start investing in an ultra-short-term debt fund or can even start a bank recurring deposit. Likewise, most of your emergency fund corpus can also be invested. After marriage, you will need to re-evaluate your expenses and start investing for long term to buy a house in Mumbai.

As regards the loan, you can use the existing funds for its repayment and start monthly investment for the long term in an equity fund that can be an aggressive investment.


You are currently invested in large-cap, flexi-cap and hybrid equity funds. All these have been good performers over the last year but have been average performers over the last few years except for the hybrid, which is more consistent among the three. You may consider changing the large-cap and flexi-cap funds with ones such as Canara Blue-chip Equity. Mirae Large-cap in the large-cap space and Mirae Emerging Blue-chip in the large and mid-cap category can be considered for starting monthly investments. You can also add a mid-cap, where Kotak Emerging Equity is a good option.

Surya Bhatia is managing partner of Asset Managers.


Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.


Never miss a story! Stay connected and informed with Mint.
our App Now!!

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook


We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News


Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More