I have Rs.15 lakhs invested in short-term debt fund. Where should I invest this amount for long term? I'm 54 years old.
- Manika Nandan
If this long term is defined as 10 years or more then the right way will be to invest this amount gradually over a span of one to one-and-a-half year in an equity income fund. It is a very conservative equity allocation fund where one third of the money is invested in equity and the rest in arbitrage and fixed income. So it is almost like a short-term debt fund plus equity composition. It will give you slightly more return in a more calibrated way. This is after assuming that this money has to remain invested forever and one just wants to optimize the return.
Three years from now when you would have had first-hand experience with your investments in terms of understanding the volatility and the benefit of the fund to match inflation, then you can also consider switching to a balanced fund.
This article was originally published on March 07, 2019.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
