Question about debt fund gains

#1
Hi,


I recently invested Rs. 65 Lakh in Reliance Dynamic Bond-Growth Plan on 8th April, 2013. I got around 411413.236 units at 15.799 NAV. I checked the NAV today, after like 2 months and the NAV is 16.53 which means the current value of my investment is approx. 68 Lakh.


I want to withdraw the interest and re-invest in this/another fund. I know the interest will be taxable but it's still good enough keeping in mind that after like 12 months these debt funds give 10-12% interest. So here's what I want to ask you guys:

1. If I withdraw the interest amount(roughly 3 lakh) at this time, will it have any negative impact on the principal amount(65 Lakh) in the future? Or will it reduce the gains/interest on principal amount in the future?

2. If this(and some other funds) fund is giving more than 20% return at this time, how does it become less than 15% after 12 months or so? Because that's what most of the bankers/investment managers told me that the average return is 10-12% per annum, not more than 15%.

Looking forward to hear from you :)

P.S. Mods, if this is not the right category for posting this thread, could you please move this thread to the appropriate category? Thanks!
 

Similar threads

Broker Special Offers

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?