Dhirendra Kumar suggests a combination of short-duration and hybrid funds for short and long terms, respectively
I'm a new investor who wants to invest in mutual funds for both the long and short time frames. But I'm not able to choose the appropriate fund. Kindly advise.
For long-term goals, a new investor like you should opt for an aggressive hybrid fund and must stick to it for at least a period of three years. However, it is beneficial if you stay invested for much longer periods - five or more years. These funds invest 65: 35 in equity and debt, respectively. The debt portion protects during a market fall, while the equity portion helps a novice get used to the market and experience volatility. Do not go for an all-equity fund at the beginning of your journey.
You can consider SBI Equity Hybrid Fund and Mirae Asset Hybrid Equity Fund for the same. However, more importantly, start your investment journey and not think much, as most of the time is lost just in thinking.
Further, do not invest at one go; rather spread your investment and invest systematically through an SIP (systematic investment plan). This will prevent you from catching a market high and further help in averaging your purchase cost.
For your short-term goals, do not move beyond a short-duration fund. Do not consider equity funds for short time frames.