I recently entered the work force and can spare Rs.5, 000 every month, which I wish to, invest in mutual funds. Is three years a good time frame to start investing for? What funds can I invest in? - Vishal Naik, Pune
Congratulations on your new job. It is commendable that you are looking out at investing the surplus that you have than spending it on the latest gadget. Three years is a good investment time frame to start investing in diversified equity mutual funds. We suggest you consider investing in mutual funds through systematic investment plan (SIP).
It is for people like you that we developed the OLM Elite. The ‘Beginner’ category helps investors such as you to start investing in mutual funds. These are funds that are less volatile and some of them also offer tax savings under Section 80C. The funds that you could consider include Canara Robeco Balance, Franklin India Taxshield, HDFC Balanced, ICICI Pru Balanced and SBI Magnum Taxgain. You could start with any one or two of the suggested funds and continue investing for three years. Do ensure that you periodically review the performance of these schemes.
