Re: [ISG:275768] Re: How to take advantage of peaked out high interest rates

[Viswanathan KS]

Rajivji

All the three funds mentioned by you are debt based funds. If held for a year and redeemed attract LT Cap Gains Tax which presently

amounts to 10% w/o indexation and 20% with indexation

On Thu, Dec 15, 2011 at 1:12 PM, Rajeev Goel <rajee...@gmail.com> wrote:

Some research:

Kukkuji recently mentioned that he is invested in birla govt long term sec  & icici income fund and also in HDFC  high interest short term funds.

As I am sitting on cash and don't want to invest for an year, exploring opportunities for the same.

Basic question - Are these better than FD ?  FD tax will be at higher slab (30%) but for MF it should be tax free (if held for 1 year) or short term tax.

Is dividend option better than growth ?
Just like MF, can we sell it earlier than an year if need be?

Please help me select a good scheme.

Thanks and regards,
Rajeev

Icici direct has a huge list of Birla govt long term MF: I think he meant these:

BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LTD     BIRLA SUN LIFE GOVT. SECURITIES FUND - LONG TERM - DIVIDEND     Debt     Medium and Long-term     *****     11.4540     14-12-2011     5,000.00     1,000.00            
BIRLA SUN LIFE ASSET MANAGEMENT COMPANY LTD     BIRLA SUN LIFE GOVT.SECURITIES FUND - LONG TERM - GROWTH     Debt     Medium and Long-term     *****     29.9409     14-12-2011     5,000.00     1,000.00    

And Icici income fund:
ICICI PRUDENTIAL MUTUAL FUND     ICICI PRUDENTIAL INCOME PLAN-GROWTH     Debt     Medium-term     **     32.8324     14-12-2011     5,000.00     500.00            
ICICI PRUDENTIAL MUTUAL FUND     ICICI PRUDENTIAL GILT FUND-INVESTMENT PLAN - GROWTH     Debt     Medium and Long-term     ***     34.7711     14-12-2011     5,000.00     5,000.00            
ICICI PRUDENTIAL MUTUAL FUND     ICICI PRUDENTIAL GILT FUND -INVESTMENT PLAN -DIVIDEND HALF YEARLY     Debt     Medium and Long-term     ***     12.6661     14-12-2011     5,000.00     5,000.00    

HDFC high interest short term fund:
HDFC ASSET MANAGEMENT COMPANY LIMITED     HDFC HIGH INTEREST FUND - SHORT TERM PLAN - DIVIDEND OPTION     Debt     Short-term     *     10.5841     14-12-2011     5,000.00     1,000.00            
HDFC ASSET MANAGEMENT COMPANY LIMITED     HDFC HIGH INTEREST FUND - SHORT TERM PLAN - GROWTH OPTION     Debt     Short-term     *     20.5654     14-12-2011     5,000.00     1,000.00

On Thu, Dec 15, 2011 at 12:45 PM, Rajeev Goel <rajee...@gmail.com> wrote:

hi All,

Starting a new thread on this topic.

Can we assume interest rates have peaked ?
Is it wise to deploy funds in debt related mutual funds ? below is the list I received from Icici bank recommendation.



And their presentation is attached.

My understanding is that as interest rates increase, the value of fund decreases. But now that it has peaked, fund value should increase.
Also if mutual fund is held for 1 year, there should be no tax as it is long term ?

regards,
Rajeev

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--
"Invest in Knowledge, Share with Others, Grow Together"
Group Home Page: http://groups.google.co.in/group/investmentsupergrowth/
New Home Page: https://groups.google.com/forum/#!forum/investmentsupergrowth
 
ISG is an open forum for expressing views. Members recommending stocks may have positions thus having vested interest in the same. Individual members are requested to do their own research and/or consult a certified financial planner before making decisions with respect to buying and selling stocks or derivatives.
 
ISG, it's owner and moderators do not take any responsibility for the views expressed in the forum and any consequences including financial, legal or otherwise resulting from actions based on such views.