Hi Ulhas , I am at 38 now and want to invest long term in Mutual Funds for creating a good corpus at 12 years from now on and can invest up to 40k per month. Kindly suggest me the funds to ahead with. Thanks in advance.
Ans: Hello Navis and thanks for writing to me. As your time horizon is 12 years, you can consider starting SIP's in:
1-SBI Focused Equity Fund: Rs.8,000
2-DSP Quant Fund: Rs.8,000
3-Kotak Small Cap Fund: Rs.8,000
4-HSBC Midcap Fund: Rs.8,000
5-UTI Small Cap Fund: Rs.8,000
I am recommending a mix of small and midcap funds for now, as they have the potential to outperform large cap funds over your time horizon, though can be riskier to invest in compared to large cap funds.
After around 8 to 9 years, you can stop your SIP's in these funds and then consider investing in large cap funds and hybrid funds.
Periodic rebalancing is essential to ensure you are on the right track. Stepping up your SIP's by 10% or more every year will help you create a larger corpus.
I also recommend you consult a financial planner who can expertly guide you on how to structure your investments based on your risk appetite, short, medium & long term goals and your investment horizon.