An experienced investor with a time horizon of 10-15 years can invest directly in multi-cap funds, says Dhirendra Kumar
My son is going to turn 4 and I want to invest Rs 1.2 lakhs for his higher education. I have experience in investing, as I have been investing in some equity funds for long. For my son, I have already selected four aggressive hybrid funds- Mirae Asset Hybrid Equity, Canara Robeco Hybrid Equity Fund, BNP Paribas Substantial Equity Hybrid and SBI Equity Hybrid. Should I invest the Rs 1.2 lakh equally in these four funds or should I focus only on two-three funds? Also, how long should I stay invested in these funds before transferring the same to any large-cap or multi-cap fund?
New investors are generally not familiar with the ups and downs of the market and get worried easily by the downturn of the market. Hence, such investors should opt for aggressive hybrid funds to start their investment journey. However, since you are an experienced investor and won't be requiring this money for the next 10-15 years which is a good enough time frame for investment, you can go for a multi-cap fund directly. Choose one-two multi-cap funds and keep investing in them through SIPs.