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Investing For a Beginner

A long-term investor can start by investing in balanced funds

I want to start investing through a systematic investment plan (SIP) for a long-term investment. I wish to start by investing Rs 2,500-3,000 per month for the next 20 years and I am open to equity funds too. Please advice about some good schemes that I should invest in and how I should balance my portfolio by investing in more than one scheme.

- Nitin Parikh

Since you are investing for the long-term, equity should be your chosen instrument. For starters, you can start by investing in one or two well-rated balanced funds like HDFC Prudence, FT India Balanced. A balanced fund with its 65-35 equity-debt ratio would automatically keep your portfolio balanced. Later on as you increase the quantum of investment you may add pure equity diversified fund and debt funds to your portfolio.


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