I am 25 years old earning Rs 25,000 every month and plan to invest Rs 5,000 every month through SIPs. Which is the best fund to invest in?
—Arijit Mullick
Since you are obviously starting out, why don’t you consider a balanced fund, which invests in equity and debt? We suggest a fund from the ‘Hybrid: Equity oriented’ category. You can look at Canara Robeco Balance or DSPBR Balance. You can also invest in another equity fund. You can do a systematic investment of Rs 2,500 in each fund. From the ‘Equity: Large & Mid cap’ category, you can consider Fidelity Equity or HDFC Top 200.
However, we do not know the time frame of your investment and we are assuming that it is for the long term. If you need the money within the span of three years, then equity would not be the right avenue.
You can select funds (pick up the ones that are rated well and have a good track record vis-à-vis its peers) from the Fund Select feature on our website to build a portfolio. Review the performance of the funds in your portfolio once every year to make changes.
This article was originally published on February 08, 2012.
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