Am I doing the right investments?



Hi Fpguru,


I had earlier invested 24,000, during the 2006 - 2007, in SBI Magnum tax Gain - Dividend & HDFC Growth (both combined) and now want to redeem from these schemes to a better performing one. I've chosen HDFC CMF Ultra Short Term debts to move my earlier invested amount as I may need them sometime sooner. I've also chosen following MFs to start my new investments: Franklin Templeton Tax Shield (G) Franklin Templeton BlueChip (G) HDFC Mid cap opportunities (G). Could you suggest better options. I'm 28 and I've structured these schemes to add on wealth in a long term (approx. 20 yrs). I shall start with few more in the near future (within 2 yrs) as my income grows and as I'd get new financial goals.




Dear Miss Gayathri,

We thank you for visiting our website & asking us a question. You have asked us a question regarding your investments.

It’s nice to see you have been investing regularly & understand the importance of time horizon in investments.  With these principles entrenched you will defiantly be a successful investor. You are doing the right thing in shifting your previous investments in equity oriented schemes to an ultra short term fund as your required funds soon. As soon as you feel you need use your investments for a goal within one year, this is the step to take. Redeem from equity shift to debt or liquid.

As far as your new investments are concerned, as the time horizon is 20 years, equity defiantly should be invested in. Along with schemes you have mentioned you may opt for DSP BR Top 100, HDFC Top 200, Reliance Vision or BSL Frontline Equity. If tax-saving is a concern, then HDFC Tax saver is what you can look for. We suggest you to consult your own financial advisor & read the Mutual fund offer document before investing. Also do keep in mind opt for Growth option in all schemes as you have a long term horizon.

Lastly do keep reviewing your investments annually. Without monitor & review investments tend to stagnate.

Hope this solves your query!


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