I am 25 and want to invest Rs 20,000 in non-tax saving mutual funds. Please suggest a suitable fund. I will need the money in 10 years
– Ankur Bhutani
Since you are young, you should save regularly through systematic investment plans than lump sum investments. By investing a fixed amount at predetermined intervals, the trouble of figuring the best time to invest is eliminated, which offers an efficient way to ride market volatility. For a 10-year time frame, consider large-cap funds such as Franklin India Bluechip or IDFC Imperial Equity Plan A or invest in large- and mid-cap funds such as Birla Sun Life Frontline Equity Plan A or HDFC Top 200. They are 5-star rated with a proven track record. A combination of these two categories of funds is also an option worth considering. Make sure to track the progress on your investments to evaluate their performance at least once a year and alter the fund selection if need be.