I am 22 year old girl and want to start investing in mutual funds. Is it advisable to start with a high NAV AMC.
Ans: Congrats for taking this step at this age. If you remain consistent, invest with a minimum 5 years’ horizon and do not get swayed by market fluctuations, you will create wealth the way you may not be able to think of right now.
Start with monthly SIP initially and if fine with you, make a 100% equity portfolio. I would recommend the allocation of following categories of funds for SIP for you, one fund per category (total 4 funds):-
1. Index Fund – 40%
2. Flexicap Fund – 20%
3. Large & Midcap Fund – 20%
4. Asset Allocator Fund – 20%
How to choose the fund? Go to any website like moneycontrol.com or valuresearchonline.com and simply choose a 5-Star fund, necessarily the best fund of the above categories. Then choose a direct investing platform and go ahead with investing.
High NAV is immaterial in mutual fund investing. It is no criteria to choose a MF.