How to choose funds for STP? - FOR NRI's

#1
Hello Fellow NRI's

I am an NRI, my surplus every month is not fixed and varies significantly.

Can you please share your experience on -

1. Is it a good idea to park x amount of money in the NRE account and than direct SIP every month? Or is it better I go for STP type of investment?

2. I would like to know your opinion on how to choose the best funds for STP investments? Which type of fund is better for parking the money and which type of funds is good for regular transfer (to which the fixed sum is to be transferred regularly)?

My investment horizon is long term. I am confused 'coz my understanding is that for debt fund NRI's pay more tax right... so is it a good idea to choose an equity fund to park the money and if so, which type of equity fund, for example, like Large Cap-Core, Large Cap-Satelite, Small/Mid Cap- Core, Small/Mid Cap - Satelite etc etc.

Many Thanks

H
 

yodlee99

Active Member
#2
I had suggested these to another NRI friend here: http://www.traderji.com/mutual-fund...208-nri-uk-mutual-fund-investment-advice.html

When ever you have some lumpsum amount in hand, you can follow this regimen.
Transferring from debt fund into a equity fund of the same mutual fund house (AMC) is NOT considered as selling the unit. Thats why the concept of STP came about. However, some debt funds have Exit load (For eg., HDFC Hi interest short term plan fund charges ~ 0.1% if u sell or do STP within 30 days).

There is no Exit Load if you STP from Reliance Short Term Fund to say, Reliance Regular Savings equity fund from 2nd day onwards.

Invest in DSPBR Savings Manager Fund(Aggressive)& STP to DSPBR EQUITY Fund.

Invest in HDFC High Interest Fund Short term plan & STP to HDFC Top 200 or Prudence Fund.

Invest the rest in IDFC MMF - TP - Plan A & STP to IDFC Premier EQUITY Fund.

Hope this is clear. Good luck !
 

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