This is my first investment in mutual funds. How should I go about in investing Rs 50,000 in a year in mutual funds with good and safe returns?
As a first time investor, there are a few things that you need to keep in mind—investing regularly through SIPs is the best way to invest than in lump sum. So, split the Rs 50,000 to say Rs 4,000 every month to invest. Next, you need to select funds that have a performance history and track record to find a place in your portfolio.
For a new investor, we suggest you consider investing in a balanced fund. These funds are stabile in their performance and insulate the returns from market volatility. Invest in a systematic and regular manner in these funds to get into the habit of investing and experience the performance of your investment in them. You can consider investing in funds such a HDFC Prudence or Reliance Regular Savings Balanced. Both the funds are highly rated by us and have been good performers.