I have been investing via SIPs for the past 2 years in Reliance Banking fund. Should I continue or not? I would also like to know if I should go for Sahara India Parivar’s 15-year fixed deposit scheme. Would it be reliable?
-Mohammed Alam
If you are investing in only one fund, then a banking fund isn’t the right fund for any investor. For that matter, no sectoral or thematic fund can be a good way to begin investing in mutual funds. We would suggest that you invest regularly in a good balanced fund. If you can assume more risk, go for a good multi-cap fund. You shouldn’t invest in Reliance Banking where you will see a high amount of ups and downs.
Coming to your second question, you have numerous options to choose from if you are looking for a guaranteed-returns fixed investment. You can invest in post office MIPs, NSC or bank fixed deposits. All of these investments would be low on risk. You can choose any of them instead of going for Sahara India Parivar’s fixed deposit. Risk shouldn’t be negotiable beyond a point, and hence, Sahara India’s deposit may not be a great choice.
This article was originally published on February 14, 2012.
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