I have been investing Rs 500 through SIP in multiple mutual fund schemes. I want to start an additional SIP for 10-20 years. Where should I invest for long-term. Tax saving is not my objective.
When you are investing for long term, say 10-20 years, the fear is that you may end up investing in too many funds. The negative point about investing in too many funds is that your money would be spread in too many actively managed funds and the returns would average out. It is better to select few good funds and invest regularly. Also, you cannot invest for 20 years in any market linked product without follow up. Fund managers change. It is not necessary that a fund which is performing well would also be a good fund three years down the line. So, review your funds every two-three years.
For your investment requirement of 10-20 years balanced fund should not be an option because you have already seen the ups and down of the market and not a new investor. You should invest in a multicap fund and if you can assume a little risk, which you can, you should also invest some part in a midcap or smallcap fund. But you may see volatility in them. And it is important to invest even when there is a fall in the market. So, invest in two to three multicap and one to two mid or smallcap funds. Invest regularly and review them every two-three years.