For long-term investments, begin with a balanced fund. Pick short-term bond funds for shorter timeframes…
31-Aug-2012 •Research Desk
I want to invest in 2 mutual funds, one for the long-term and one for the short-term. In which funds should I invest? -Ghanshyam
If you're investing in mutual funds for the first time, choose 1 or 2 balanced funds for your long-term investments. When you choose a fund, look for ones that have a long history of consistent performance. Some good balanced funds to pick from are DSP BlackRock Balanced, UTI Balanced and Birla Sun Life 95. After a couple of years, once you have a fair idea of how fund investing works, you can move to relatively less risky equity funds. For the short-term investment, pick a short-term bond fund that will give you better returns than a bank fixed deposit and your money will be more liquid. If the money you're investing is relatively large, it will be more tax efficient as well.
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