Minimum risk and maximum returns | Value Research Although highly volatile, equity funds can provide highest returns if you continue investing for long term
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Minimum risk and maximum returns

Although highly volatile, equity funds can provide highest returns if you continue investing for long term

I am a 26-year old IT professional. I want to invest Rs 15,000 every month. What is the best investment option with minimum risk and maximum return.
-Ajay Pandey

Among mutual funds, equity funds can provide highest returns if you continue investing for long term. However, these funds also face highest volatility with daily market movements.

Since you are a first time investor and risk averse we advise you to invest in hybrid or balanced funds. These funds invest at least 65 per cent in equity and the rest in debt.

The equity allocation of these funds gives them the opportunity for high growth, while the debt component provides a cushion when the equity component fails to perform. However, these funds may look dull, compared to pure equity funds when the markets soar, as they don't fully invest in equity. But they are the best bet of investors looking for a mixture of safety, income and capital appreciation.

Therefore choose two good balanced funds and invest in them through SIP.




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