I am a central government pensioner. I want to invest some of my retirement kitty in mutual funds for eight to 10 years. Please advice good equity/debt/balanced funds. Is there any limit that one can not invest more than ₹2 lakh in a financial year?
- Rajiv Kumar
Since you have a long investment horizon, you can consider investing a small part of your retirement corpus in equity. It is true that equity carries risk, but you can reduce the risk to a great extent if you are prepared to stay in the market for a long term.
We typically recommend balanced schemes to first-time investors in equity. This because we have noticed that many newcomers to the stock market tend to panic when they see the value of their investment fall drastically during a bad market phase. Balanced funds address this problem to a great extent. Since these funds invest in a mix of equity and debt, they don't fall as drastically as pure equity schemes during a bad phase in the market. The debt part of the portfolio softens the blow during difficult phases.
Here is our list of best balanced schemes: Click Here
No, there is no upper limit on investments in mutual funds in a financial year.
This article was originally published on October 12, 2015.
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