Invest in Existing Schemes

I want to invest one lakh in Sbi Tax Advantage Nfo and Magnum Tax Gain for tax benefits and good returns. Please advice.
-Dipak, Almora
SBI Tax Advantage is a 10 year closed ended new fund offering. It is advisable to invest in an on going tax saving scheme like Magnum Tax Gain which has a good performance history. Some other tax saving funds that you can opt for are Birla Sun Life Tax Relief, Sundaram Tax Saver or HDFC Tax Saver.

Is it worth investing in Principal Large Cap now?
-Ravi Kanetkar
Principal Large cap is an unrated equity diversified funds. The fund has been an average performer. You should look to invest in some well rated equity diversified fund with a long proven track record.

Is it advisable to invest Rs 500 each in Reliance Vision & Reliance Diversified Power sector fund as SIP? Please advice.
-Raj
This is a good combination but you should note that Reliance Vision is a diversified equity fund whereas Reliance Diversified Power is a sectoral fund (hence riskier). Choose a sectoral fund only if you have a high risk appetite.

I want to invest around Rs 40,000 in a good fund for a period of 1-2 years. Tax rebate is required.
-Rohit
If you wish to avail of the tax benefit, invest in tax saving mutual funds. Take note that these funds would have a lock in period of three years. Some good tax saving funds are Magnum Tax Gain, Birla Sun Life Tax Relief, Sundaram Tax Saver and HDFC Tax Saver.

I am investing in ICICI Prudential Life Insurance (ULIP), in maximiser (Growth) fund. My policy is almost 3 years old. Should I continue this policy for few years (i.e. 2-3 years)?
-Ajay Jagtap
ULIPs have high associated costs and are complex products. After three years you can exit from this policy and invest in some well rated equity diversified mutual funds in a phased manner via SIP.

I want to invest Rs 1 lakh in mutual funds. Please tell me top 3 funds.
-Neeraj
You can choose any three from Reliance Vision, HDFC Equity, Birla Frontline Equity or Sundaram Select Focus. These funds are well rated and have been consistent in their performance over years.

I want to invest Rs 10,000 per month for 10-15 years .My age is 43 yrs. Kindly suggest.
-Gautam Choudhury
Opt for two funds for SIP of Rs 5000 each. Well rated funds like DSP ML Top 100, Reliance Vision, HDFC Equity, or Sundaram Select Focus can be good picks.

What is a Sip?
-Abhey
SIP (systematic investment plan) is a hassle free way of investing a fixed amount in a mutual fund scheme of your choice every month/quarter. This helps you automatically average the cost of your purchase over the long term. It is the most advisable way of investing in equity mutual funds.

Please recommend funds to invest. My age is 63.
You should create a balanced portfolio with 60 per cent equity and 40 per cent debt (assuming a medium risk level). Invest in equity diversified funds like Reliance Vision, HDFC Equity or Sundaram Select Focus via SIP. For debt, choose well rated funds like ICICI Pru Long Term or Kotak Flexi Debt.