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A Balanced Start

New long-term investors should begin with SIP investments in balanced funds…

I am 39 and want to start SIP investments for 5-10 years. Please suggest the most ideal funds that I can invest in to start with? I want to accumulate Rs 25 lakh in ten years.
- RK Singh

If this is your first mutual fund investment, you are a bit late to join the investment bandwagon. However, you can make up for it by investing regularly through SIPs in mutual funds. If your investments in mutual fund earn an annualised 12 per cent, you can achieve your goal of accumulating Rs 25 lakh in ten years by investing Rs 10,800 every month. The same can be achieved if the funds earn 15 per cent with Rs 9,000 a month contribution.

It appears to be your first mutual fund investment and we suggest you go with a balanced fund to start with to experience mutual fund investing and understand how your investments grow over the next six months. You can start investing in funds such as HDFC Prudence or Reliance Regular Savings Balanced fund. You can later move to a large-cap fund such as Franklin India Bluechip or DSPBR Top 100 Equity.

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