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Risky Investments

Invest in risky funds through a full market cycle to get the best out of them. Review them annually…

I am 30 years old. I plan to invest via SIPs of Rs 2,000 each in HDFC Midcap Opportunities, ICICI Prudential Focused Bluechip Equity, IDFC Premier Equity Plan A and SBI Magnum Emerging Businesses. My goal is to generate wealth in the long run. I am looking to invest for 15-20 years. I understand that this portfolio of funds would have above-average risk associated with it. What would you recommend?
— Rishabh Goel

Given that you understand the risk that comes with these funds and are willing to assume it, you have selected excellent funds to invest in. You're also following the right method in terms of investing via SIPs. However, you shouldn’t consider holding these funds for the entire period of 20 years. You should stay invested in them through a full market cycle to get the best out of them, but you should systematically and regularly move your money to less volatile funds as well. Periodically reviewing your investments – at least once a year – will prove to be rewarding.

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