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Future Perfect

Invest for the long-term by cutting out the short-term market noise

I have Rs 20,000 a month to invest. Looking at the current state of the market, where should I invest?
- Ankur Bhatia

For a long-term investor the level of the market should not be a deterrent to invest. That you have Rs 20,000 a month to invest will go a long way over a 10-15 year investment time frame for you to get the most out of systematic investment as well as the power of compounding. You should look for a mix of funds that comprises large-cap funds such as Franklin India Bluechip or IDFC Imperial Equity Plan A and multi-cap funds such as Templeton India Equity Income or Quantum Long-Term Equity Fund. These are funds that are consistent and have a long track record and performance history. For your investments to build long-term wealth, make sure that you track these funds’ performance at least once every six months.



Well diversified
  Category  Fund Rating  3 Yrs Returns (%)
HDFC Top 200 Equity: Large-cap & Mid-cap ***** 13.46
DSPBR Micro Cap Equity: Mid-cap & Small-cap ***** 6.18
IDFC Premier Equity A Equity: Mid-cap & Small-cap ***** 10.58
DSPBR T.I.G.E.R Equity: Infrastructure **** -2.14
Reliance Regular Savings Equity  Equity: Multi Cap **** 6.61
Data as on 24 January, 2011 Ratings as on 31 December, 2010


This article was originally published on January 25, 2011.

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