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Equity Investments Have Some Risk

Investing for 5-10 years for capital appreciation

I am looking to invest Rs. 2000/- for a very long time of around 5 to 10 years via SIPs in various mutual funds. Following is my expectations in priority:

1. Looking at a capital appreciation.
2. Can take a downturn and will stay invested - but not a capital loss.
3. This is primary to build a corpus for my family.

Can you please suggest which mutual funds should I invest in right now to achieve the above objectives?
-    Mitesh Vora

Investing systematically into equities for the long term will help you in accumulating capital. Also, since your investment tenure will be long, the intermittent volatility of equities will be nullified to a large extent. But, investments in mutual funds do not come without undertaking risk. Mutual funds do not guarantee returns and may even lead to capital loss.  For equity funds, you may choose to invest in any one of these: HDFC Top 200, DSPBR Equity, BSL Frontline Equity. However, if you cannot undertake the risk of capital erosion, you may better look for other investment avenues such as banks fixed deposits. Fixed deposits provide guaranteed returns and ensure capital protection.

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