A Systematic Transfer Plan (STP) is often the preferred way to invest in an uncertain equity market such as the present one. You invest a lump-sum amount in a debt fund and then give an instruction for transferring a fixed sum every day, week or month to an equity fund of your choice. The debt and equity schemes must be from the same fund house. So, which type of debt fund should you opt for? Most fund houses offer a bouquet. From the most conservative overnight and liquid funds to slightly risky ones such as short-term bond schemes, several options are available.
I have Rs 12 lakh in surplus. Should I prepay my home loan or invest for monthly income of Rs 25-30k?
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