Please suggest the best way to invest in a mutual fund and whether SIP is a good idea. I plan to invest Rs 5,000 per month. The investment duration should be for around three years and after that I should be able to redeem my investment.
- Sandip Mishra
We have always maintained that the best way to invest in an equity fund is to do so systematically via a systematic investment plan (SIP). However, you should be a little more open to holding your investment for more than three years. If you have a three-to-five year time frame in mind, then consider equity. At the end of three years, there is no telling how the market may be but if you give yourself some flexibility, it will surely help in availing better returns. Since you want to invest Rs 5,000, we suggest you go with two funds. Furthermore, we also recommend that one of them be from the 'Hybrid: Equity oriented' category and the other from the 'Equity: Large Cap' category.
| ||||||||||||||||||||||||||||||
This article was originally published on April 02, 2012.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
