I am 30 and want to start SIP of Rs 1,000 each in 5 to 6 purely equity based schemes. I have lump sum investments of Rs 10,000 each in TATA Infrastructure, Reliance Diversified Power Sector for the past three years. I believe in high risk and high returns, please suggest funds accordingly.
–Tausif Mushtaque
Your current investments are in funds with narrow investment mandate such as power and infrastructure, which does reflect your aggressive investment stand. Such investments pay off well, if closely monitored as you need to redeem such investments to profit and earn high returns.
At Value Research, we believe in investing systematically for long-term wealth creation. We feel this can be achieved by regular and disciplined investing. You can do so with a core and satellite portfolio allocation into funds that will offer both stability and the necessary upside to the portfolio. You can have 2-3 funds as core holdings comprising large-cap and large- and mid-cap funds, with the satellite component with sector funds that you have to achieve long-term wealth appreciation. This way, the investments have the ability to absorb shocks as well as have the potential to earn higher returns over various market cycles.
This article was originally published on December 30, 2010.
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