I am 28 years old and want to invest for around 20 years in an equity mutual fund. I am willing to go with an SIP of Rs 5,000/month. Suggest a stable fund company which can be trusted for 20 years and survive till then.
- Pavan G
We do appreciate your determination to start investing early and do so consistently. Even if you do not increase your investment limit above Rs 5,000, though we strongly recommend that you do so every year, you would end up with Rs 49,95,739 at the end of 20 years, based on a return of 12 per cent per annum.
You asked for a recommendation on a stable fund company, by which you implicitly imply a scheme recommendation too. You can be sure that no fund company is just going to collapse or disappear. The market regulator, the Securities and Exchange Board of India (SEBI), does a good job of protecting investors' interests. There have been buy-outs in the past where the schemes are transferred to the new owner, but no collapses which have left investors in a quandary.
We suggest that you invest in any two diversified equity schemes from the selection given, do an SIP of Rs 2,500 in each. It would be wise to opt for a large-cap fund and a large- and mid-cap fund.
This article was originally published on August 17, 2010.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
