Will these mutual funds offer high returns with safety?


I am investing Rs 3,000 through SIPs in four mutual fund schemes for the long term:

Canara Robeco Bluechip Equity Fund
ICICI Prudential Equity & Debt Fund
UTI Flexi Cap Fund
Tata Digital India Fund

I am investing for my children’s education. I would continue to invest for 10 years or more. I want moderate to high returns with safety.
–Senthil Kumar

We always ask investors to invest in mutual funds that match their goals, investment horizon, and risk profile. You are investing for a long term goal and your risk prOfile seems to be conservative since you are looking for safety, too. You have to remember that equity schemes are risky and volatile, especially in th/e short term. However, over a long period of time you can hope to get higher returns from your equity investments.

You are investing in a large cap scheme, aggressive hybrid scheme, flexi cap funds, and IT sector fund. Large cap schemes and aggressive hybrid schemes are in line with your conservative risk profile. Flexi cap funds are meant for moderate investors. IT sector funds are highly risky and volatile. That is why they are recommended only to experienced investors with an aggressive risk profile.

It is always better to have a target for your long-term goal. For example, how much will college education cost in 10 or 15 years? You should find the current cost and how much it will cost due to the impact of inflation. This will help you to invest the required amount to achieve your target.

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