I want to take advantage of the recent correction in market and invest Rs 1 lakh in mutual funds. I have no liabilities as such and want to invest this money for long-term. Can you please guide me with some good names?
I can tell you some good names but before that I would like to caution you. Don't bank on the bad times of the market. Bad times can get even worse. So I would suggest you to follow some key principles. In the best of times, you should be spreading your investment. And in the worst of times also, you should be spreading your investment. Spreading your risk by averaging your investment is very important.
As you are saying this money can remain invested for a long time, I am assuming a minimum of 5 years. So, there are two suggestions. If you have never invested before in market-linked products, choose a balanced fund (aggressive hybrid) and spread this investment over 4 or 5 months. Do some averaging. Don't invest all the money tomorrow morning. And if you have experienced the market before and are happy about this decline, or if you can withstand the decline, then invest in a multicap fund. By experiencing the market, I mean someone who has stayed invested in equities for 2-3 years and have seen at least one downfall.
If I have to choose two balanced funds for you, I would say ICICI Prudential Equity & Debt Fund and HDFC Hybrid Equity Fund. For multicap funds, I would say, Mirae Asset India Equity and SBI Magnum Multicap will be good choices.