I am planning to invest ₹9,000 every month via an SIP in three to four mutual funds to generate wealth over a period of five years with minimum risk. I am looking to save taxes under section 80C and I want capital growth in three to five years. Kindly suggest some good MFs which cater to my need and also how should I distribute the SIP amount among three to four mutual funds. Moreover, I am curious about the potential performance of four mutual funds (listed below) in terms of my requirement/objective/time horizon/tax applicability on returns.
- Suvankar Dasgupta
Try to keep your investment very simple. Invest in a maximum of one or two tax saving schemes through the SIP route. These schemes have a mandatory three-year lock-in period, but it would be better if you invest in them with a slightly longer investment horizon. We recommend investing in equity only to those who can wait for at least five years. Your choice of schemes is good. Axis Long Term Equity Fund has been an impressive performer. Though new, IDBI Equity Advantage also has fared well.
This article was originally published on August 13, 2015.
Ask Value Research 
New episodes every Friday 
New Process Alert 
Seems like you've uploaded a wrong QR code. Please upload the QR code downloaded from MF Central platform.
