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Safe Investing

Moderate risk takers should not consider SIP investments over lump sum ones…

I am a conservative and safe investor looking for nominal returns in investments over the next 2-3 years. I am interested in investing up to Rs 5 lakhs in mutual funds. I want your advice on funds that I can invest in?
- S K Bansal

For a moderate risk taker you should not be considering lump sum investments at all. Regular and systematic investments in mutual funds go a long way towards wealth creation and you should be considering that. You can park the lump sum that you have in a liquid fund and consider regular systematic transfer plans to initiate regular investments.

Consider investing in a large-cap fund such as DSPBR Top 100 Equity or Franklin India Bluechip or large- and mid-cap funds such as BSL Frontline Equity or HDFC Top 200. All these funds have a proven performance track record that one can invest in. And remember, tracking the performance of the funds you hold is important; make sure you track the performance of these funds at least once a year.



This article was originally published on April 26, 2011.

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