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Go Long With Equities

Equities are risky only when you invest for short periods. For long periods, equities can be highly rewarding

I want to invest in a low-risk mutual fund. I will require the invested money after 15 years. I can invest up to Rs 2,000 every month. Please advice.

Conventional thinking says that for a period as long as 15 years, you should be investing in equities. Equities are risky if you invest for a short period, but the risk gets lesser if you invest for 10-15 years.
However, the general perception is that people face losses if they invest in equities, but this is not entirely true. If you keep investing systematically, then the risk of losses gets lesser. You can face losses from equities when you invest a big lump sum amount in an expensive share or fund.
If you think you can invest regularly for the 15 years, then you can approach your investments in 2-3 ways. Firstly, the riskiest equity investment can be a multi-cap fund, which can give you the highest returns. If you want a low-risk equity investment, opt for a monthly income plan (MIP) that has only about 10-15 per cent exposure to equities. And if you want an investment that falls between these two extremes, go for a balanced fund. Such a fund invests 60-70 per cent of its assets in equities, and the rest in fixed income.
Whichever investment vehicle you choose, keep in mind that if you invest regularly for 10-15 years, the risk associated with equities becomes extremely low and they turn out to be most rewarding.

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