I have received ₹10,000 as a gift for my son who is just 10 months. I do not need this for another 10 years. I plan to use it later for his studies. Should I opt for a balanced equity fund or a hybrid fund?
Since you have an investment horizon of 10 years, it is always better to invest in equity. This strategy will help you to create wealth as the equity has the potential to offer superior returns than other asset classes over a long period. We recommend equity-oriented balanced funds to the first-time investors in the stock market. These funds invest in a mix of equity (minimum 65 per cent) and debt. They are less volatile than pure equity mutual funds because of this asset allocation. The debt part of the portfolio provides a cushion in times of volatility in the stock market. Here is our list of best balanced schemes.