I need your advise to invest in debt funds. I already have considerable equity exposure. The aim is to save this money for my daughter’s education (in approximately 10 years from now). I am primarily looking for accrual (something similar to a fixed deposit) with tax efficiency but open to duration (with very low risk). Can you please recommend 3-5 funds where I can put this money, for say 3, 5, 7 and 10 years? I was thinking of the following funds but need your expert advice: ICICI Pru Banking and PSU Fund, Franklin India Income Opportunity Fund, and H DFC Medium-Term Opportunities Fund.
—Shabbir Ali R.V.
Long-term portfolios can have allocation to debt funds as part of an asset allocation strategy. If your investment horizon is longer than, say, 5 or 7 years, then it would not be a good idea to have an all-debt portfolio since your returns could be quite sub-optimal in that situation.
