Hello Sir. Pls suggest a few mutual fund sectors for investing 10 lakhs in SIP for a investment holding period 20-25 years. Goal is wealth creation and risk apatite is medium. Thanks

Ans: Hello and thanks for writing to me. As your investment horizon is long term, you can consider investing in a mix of flexi cap funds, small cap funds & mid cap funds.

Ans: You can divide it into 3 parts.
1. Largecap & Midcap
2. Flexicap
3. Small cap

Ans: Investing with a long-term horizon like 20-25 years provides a good opportunity to harness the power of compounding and potentially achieve significant wealth creation. Here are some sectors or categories you might consider for your SIP investment of 10 lakhs:

Large Cap Funds: These funds invest in large, well-established companies that are leaders in their respective industries. They generally offer stability and steady returns over the long term.
Multi-Cap Funds: These funds provide diversification across market caps, including large, mid, and sometimes small-cap stocks. They offer flexibility to the fund manager to capitalize on opportunities across the market.
Mid & Small Cap Funds: While riskier than large-cap funds, mid and small-cap funds have the potential to deliver higher returns over the long term. They are more volatile but can be rewarding if you have a long-term perspective.
Sectoral or Thematic Funds: If you have a particular interest or belief in a specific sector like technology, healthcare, or infrastructure, you might consider investing in sectoral or thematic funds. However, these should be a smaller portion of your portfolio due to their higher risk.
Balanced Advantage Funds: These funds dynamically manage equity and debt allocation based on market valuations. They aim to provide stable returns with lower volatility over the long term.
For a medium-risk appetite and a long-term horizon, a diversified portfolio with a mix of large-cap, multi-cap, and a small portion of mid & small-cap funds could be a suitable strategy. Remember, it's essential to review your portfolio regularly and make adjustments as needed based on market conditions and your financial goals. Consulting with a financial advisor can provide personalized advice tailored to your needs.