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High Returns at High Risks

Invest in these mid- and small-cap funds if you're willing to assume the risk associated with them

I can save ₹10,000 every month. I wish to invest in a risky portfolio for around three years. Please suggest some funds.
Sandeep

An aggressive investor, willing to assume risk, to earn substantial returns, should build a portfolio of mid- and small-cap funds. However, do bear in mind that this can be a very risky strategy, especially for a period of 3 years when anything can go wrong. You should be ready to accept your investments going down in value, which is something that can never be ruled out. If you understand the risks associated with such a risky strategy, invest in mid- and small-cap funds like Axis Midcap, BNP Paribas Midcap, Mirae Asset Emerging Bluechip and Franklin India Smaller Companies. These are the kind of funds that can go up substantially in value, but can be very disappointing if the markets turn bad.



This article was originally published on June 10, 2014.

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