I am 30 years old. I want to start investing Rs 10,000 per month in mutual funds via SIP. To start with, my time horizon is 3 years. I have chosen the following for an SIP of Rs 2,000 each: HDFC Equity, Sundaram Capex, SBI Magnum Contra, Reliance Equity and BSL Top 100.
- RohanFrom your suggested list, we would go with HDFC Equity and Magnum Contra. The objective of Magnum Contra is to primarily invest in undervalued scrips which could be out of favour at the time of investing but are likely to show attractive growth over the long term. Please look at the answer given to Amit Mehra in this section, concerning this very fund.
Instead of BSL Top 100, a better option would be DSPBR Top 100 Equity.
Instead of Reliance Equity, consider Canara Robeco Equity Diversified or Quantum Long Term Equity. Sundaram Capex is a thematic fund. We suggest you avoid it.
We have assumed that you have debt investments elsewhere and you are seeking advice solely on your equity portfolio. If not, do have some exposure to debt. In that case, drop a fund from the 'Large & Mid-Cap' category and pick a debt fund (Canara Robeco Income).
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This article was originally published on July 22, 2010.
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