I want to invest Rs 5,000 per month through SIPs. My time horizon is three years. Can you please suggest some funds?
— Navneet Mishra
In a three-year timeframe, you will be safe to consider investing in large-cap and large- and mid-cap funds. These are funds that mostly invest in large-cap stocks which are not extremely volatile and are secure with their return performance. You can consider funds such as Franklin India Bluechip, ICICI Prudential Growth or IDFC Imperial Equity Plan A from the large-cap funds or HDFC Top 200, Fidelity Equity or Birla Sun Life Frontline Equity Plan A from the large- and mid-cap category for the core component of your portfolio.
This article was originally published on January 20, 2011.