I want to invest Rs 5,000 every month for my son's future. What is the kind of funds that I can invest in?
It is encouraging to see your interest in saving money for your son's future. Your son will need the capital that you plan to create for him when he is about to leave school or college which are a long way to go. When investing for the long-term of over 8-10 years, you would be better of investing in a large-cap fund. These are mutual funds that invest in large-cap company stocks and are generally stable with their returns regardless of the direction the market takes. You should consider investing in large-cap funds such as Franklin India Bluechip, IDFC Imperial Equity Plan A or ICICI Prudential Growth. All of these are 5-start rated by Value Research and have a long and proven performance history.
You can use the systematic investment plan option when investing in any of these funds. However, do remember to track the performance of your investment at least once a year and make any necessary course correction. For instance, if a fund is not performing, you may be better of moving your investments into a better fund.