Please suggest 3 MFs for an investment of 10000 pm for longtime - wealth creation for grand son or daughter
Praveen
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.