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Aggressive Investing

Risk is inevitable for high returns in investment

I would like to invest for a time frame of two to three years and want the highest possible returns. Will investing in mid-cap funds help me as I think they are performing better than most equity funds? If the answer is yes, then which are the good funds to invest in?
-Narendra Rami

High returns come with a high degree of risk attached. Mid-cap funds are volatile in nature. They are capable of delivering higher than large-cap funds, but it must be kept in mind that their volatility is on either side. So don't be surprised by their down side because, when the markets are unfavourably oriented, they will fall harder too. There are aggressive funds in the market that show extreme reactions to the market movements. If you have the risk appetite to bear the volatility they come with, you can go for them.

You can choose from funds like DSPBR Opportunities, Kotak Opportunities or Sundaram BNP Paribas Select Focus. These aggressive picks capitalize on opportunities in the markets. They are extremely rewarding when the markets are doing well, but also fall heavily when the markets tank. It would be better if you set a target return for yourself and exit these investments once you achieve the set targets. But be prepared to take losses as well.

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