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Ans: Hi Samreen, as you want a balanced fund with stable returns, you can consider investing in:

1-ICICI Balanced Advantage Fund -Rs.2 Lakh
2-HDFC Balanced Advantage Fund-Rs.2 Lakh
3-Tata Hybrid Equity Fund-Rs.1 Lakh

After 5 years, you can start systematic withdrawal plans to pay for your sons education.

Ans: Hello Samreen,

Thanks for reaching out! Based on your query, it's important to consider the recent changes introduced by the Finance Bill 2023 and the increasing interest rate cycle.

With the amendment classifying capital gains from debt mutual funds as only short-term capital gains, it's essential to factor in the tax implications on your investment.

Considering the current market scenario and your investment amount of INR 5,00,000, I would suggest a diversified approach to spread your investment across different types of mutual funds, which would help you manage risk and achieve potential returns.

Equity Funds (60%): Invest around INR 3,00,000 in equity mutual funds to benefit from market growth in the long term. Look for large-cap, mid-cap, or multi-cap funds that have a consistent performance history.
Debt Funds (30%): Allocate around INR 1,50,000 to short-duration debt funds. These funds invest in fixed-income securities with shorter maturity periods, making them relatively less sensitive to interest rate changes.
Hybrid Funds (10%): Invest the remaining INR 50,000 in hybrid funds, which invest in a mix of equity and debt instruments. This would provide you with a balance of growth and stability.
Please remember that these are general suggestions, and it's crucial to assess your financial goals, risk tolerance, and investment horizon before making any decision. I recommend consulting with a financial advisor or doing your research to select the best-suited mutual funds within each category.

Happy investing!

Ans: Hi Samreen, thank you for writing to me. As you have a corpus of Rs.5 Lakh, you can start Systematic Transfer Plans by first investing in liquid or overnight funds and then instructing the AMC to redeem some debt funds and invest in equity funds.

If you can state your objectives and your risk appetite for me to recommend schemes and frequency.