I just sold my apartment and I need to invest my cash. What is the best way to invest considering tax and current market situation?Asked
Investment in a particular fund is primarily a function of the return and risk appetite of the investor, which in turn is governed by the investment objective of the investor. It is advisable to invest the funds in a mix of debt and equity funds to avail the benefit of diversification, by earning more returns and at the same time taking lower risks.
Investment in a particular scheme or a portfolio of schemes will be governed by the investment duration. For a short duration, debt funds are advisable. For a longer investment horizon, equity funds may be a better option. However, actual investment shall be dependent on the investment objective, among many other factors.
Various mutual fund schemes are given : here.
Balanced funds can be a good option to invest an amount to the tune of ₹1 crore. Balanced funds are those funds in which the capital of the investor is diversified across different financial instruments such as stocks,bonds,debt securities, etc to limit the risks. These funds are also known as hybrid funds.
Investor may invest in Gilt funds, to invest in a low risk fund. Gilt funds are those mutual fund schemes which are floated by asset management companies or AMCs with exclusive investments in various government securities only. Government securities include central government securities, state government securities and treasury bills. The gilt funds provide to the investors, the safety of investments made in government securities and better returns than direct investments in these securities through investing in a variety of government securities yielding varying rate of returns.
This is what I would recommend:
1. Invest in safe debt fund - example, park your money portfolio on Groww (listed below)
2. Do a STP (sell and invest) in equity portfolio for long term over next 12 to 24 months (check example portfolio below)