I have a monthly surplus of ₹5,000. I want to invest the money in equities. Could you please suggest a few funds? My investment horizon is around three to five years.
- Rajesh
We recommend investing in equity mutual funds only to those with an investment horizon of at least five years. Equity can be extremely risky in the short term. If you can invest the money for five years, you can consider investing in a top-rated equity-oriented balanced scheme. We normally ask first-time investors to opt for balanced schemes. They invest in a mix of equity (at least 65 per cent) and debt. They are less volatile than pure equity funds because of this asset allocation strategy. They are ideal for investors who want to grow money without exposing themselves to a lot of volatility.
Here is our list of best balanced schemes.