A: If I have to put my money, I will divide first between safe assets and risky assets and within safe assets I will go for tax free bonds and debt mutual funds and especially in today's environment where interest rate cycle is on the higher side, I will go towards long duration mutual funds. As and when interest rate cycle starts easing off I will shift them into shorter duration mutual funds but I will manage my duration bet by mutual funds rather than tax-free bonds even the tax-free bonds are liquid, I would like to hold them till maturity unless and until something dramatic happens on the credit side and I will adjust my portfolio duration through debt mutual funds.
On the other hand, on the equity side today there are various mutual funds which are available where I can do my regular investment. So, irrespective of market cycle I will continue with my SIPs and then I will wait for corrections in the market either in stocks or investments in mutual funds where I will put lump sum money wherever I believe market have become cheaper. I will wait for opportunities which will come into the market especially because of the crisis in the global markets or local markets. Whenever I see a bad headline appearing in the newspaper I will be more than happy to put my money into work by buying things cheaper than what otherwise I would have bought.
On the real estate side, I will be focused on those emerging areas of the various cities where city center is likely to expand over a period of time. So I will try to build my portfolio in a manner where in the near-term the safe assets will give me my returns and in the medium-term to long-term the risky assets will give me capital appreciation and I will ensure that on a tax adjusted basis, I pay as much minimum tax as possible under the rule of taxation. So that my post tax return is superior.
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