I’m a 27-year old working professional. I haven’t invested in mutual funds as yet, but I would like to start now. I can invest up to Rs 3,000 every month. I have a long-term horizon in mind, but no fixed goals. Please tell me how I should begin.
-Anonymous
It is good to see a young person like you interested in investing in mutual funds. As far as investing is concerned, there is never a good or bad time to begin. You should start saving up when you can, and the earlier you start, the better it will be for you.
Since you are completely new to fund investing, we would suggest you begin a systematic investment plan (SIP) in a good balanced fund. Such a fund has exposure to both equities and debt, which gives you the benefit of high returns during market upswings and added protection during downturns.
Here are three well-performing balanced funds that you can choose from: Birla Sun Life 95, Tata Balanced and HDFC Prudence. Pick the one you like and get started.
This article was originally published on February 01, 2012.
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