I’m 45 years old and want to invest Rs 2,000 a month in a mutual fund via the SIP route. I want you to suggest a mutual fund. My time horizon is of about 4 years.
-Krishnendu Bhatacharjee
Four years is not a long period when it comes to equity fund investments. We say this because if you look at the past 4 years, an SIP investment in an equity fund wouldn’t have translated into anything meaningful. Hence, we would suggest a fairly conservative approach, like the growth pan of an MIP. These funds typically have a 15-20 per cent exposure to equity, which translates into marginally superior returns than a bank recurring deposit in a more tax-efficient manner. Some MIPs that we recommend are DSP BlackRock MIP, Canara Robeco MIP, UTI MIS and Birla Sun Life Monthly Income.
This article was originally published on April 16, 2012.
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