I want to start investing Rs 18,000 a month in mutual funds. I’m looking for moderate risks and higher-than-average returns. Should I consider funds like HDFC Prudence, HDFC Equity, ICICI Prudential Discovery and HDFC Top 200?
-Abhijeet Narayan
It’s a good idea for someone young to get started in such a methodical way. But before you begin investing in funds, you should develop a belief for systematic investing. You shouldn’t get fazed by a 10-15 per cent decline in the value of your investments, which is a possibility in the current market situation. Hence, we would suggest that you invest in only balanced funds for the 1st year. After one year, once you’ve understood how mutual funds work and how volatile the markets can be, you can work on a more sophisticated plan of adding equity funds to your portfolio. But for the first year, choose 2-3 well-performing balanced funds and invest in them regularly.
This article was originally published on June 06, 2012.
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