I am 29 and wish to invest around Rs 5,000 a month in mutual funds through SIPs to fund my child’s education and my retirement. Please suggest an MF.
— S Aithala
It is encouraging to note that you wish to start saving for your son’s education. You have time for both your financial goals —son’s education and your retirement. You should go for a portfolio with large- and mid-cap stocks such as HDFC Top 200, Fidelity India Growth or Birla Sun Life Frontline Equity Plan A. All these funds are 5-star rated and have a proven track record. As you approach your financial goals, say a few years before you need the money for your son’s education or as you approach the corpus that you had in mind; move it to debt-focused funds to cushion any wild swings in equity returns. Hence you will have the discipline to track the performance of your portfolio and balance it from time to time.
This article was originally published on January 03, 2011.
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