Which funds should I buy for a 20-year time horizon?

1. I am 30 years old. Which funds should I buy for a 20-year portfolio?
2. In mutual fund asset allocation, we often see that apart from equity, there are a few other components like money market, cash/call, net receivable/payable. What do these terms mean?

- Pachal, Jhansi

Transcript: If you need to save tax, invest in a tax-saving fund. You can invest 150,000 per year in this type of fund.

If you are a first-time investor and don't need to save tax, invest in a balanced fund.

If you are an experienced investor and don't need to save tax, invest in one or two multi-cap funds.

Invest using SIPs and as your income increases, increase your SIP instalments.

This article was originally published on June 27, 2017.