I WANT TO INVEST Rs. 20,000 P.M. IN MY DAUGHTER'S NAME FOR NEXT 5 YEARS . SUGGEST GOOD MF SCHEMES.

Ans: Equity schemes are best suited for creation wealth in long run and the suitable schemes are as under ( Can start SIP of Rs. 500 in each of these 4 funds)

- UTI Equity Fund - Growth

- Axis Focused 25 Fund - Growth

- Motilal 30 mid cap fund – Growth

- LIC MF Large cap fund - Growth

Ans: Hello Value Investor. Considering your requirement and goal , I would suggest to consider flexi cap, mid cap , small cap and Large & mid cap categories for long run investment portfolio.

Ans: Hello Aparajita and thanks for writing to me. As your daughter is young, she will reap the benefits of compounding.

You can consider beginning monthly SIP's in:
1-Edelweiss NIFTY 100 Quality 30 Index Fund-Rs.1,000
2-SBI Focused Equity Fund-Rs.1,000
3-Kotak Small Cap Fund-Rs.1,000
4-SBI Magnum Mid Cap Fund-Rs.1,000
5-HDFC Nifty 50 Index Fund-Rs.1,000

You also can consider stepping up your SIP's every year to create a larger corpus. Periodical rebalancing is essential to ensure you are on track to achieve your financial goals.

Ans: Praveen, investing for your grandchild's future is a noble endeavor, akin to planting a tree whose shade they'll enjoy. Given the long-term horizon, equity mutual funds could be a promising avenue for wealth creation, as they have historically outperformed other asset classes over extended periods.

Firstly, consider a well-diversified large-cap fund. These funds invest in established companies with a track record of stable growth. They can offer a blend of growth potential and stability, much like the trunk of a sturdy tree providing the core strength.

Next, a mid-cap fund could be a worthy addition. Mid-cap companies are like the branches growing outwards, offering higher growth potential than large-caps but with a bit more volatility. They add diversity and can boost returns over the long term.

Lastly, a flexi-cap fund provides the flexibility to invest across market caps, allowing the fund manager to capitalize on market opportunities. Think of it as the leaves of the tree, adapting and reaching out to the sun for optimal growth.

Remember, the key is consistency and patience. Regularly nurturing and reviewing your investments will help them flourish over time. Always consult with a financial advisor to ensure your investments align with your goals and risk tolerance.