Mutual fund queries answered by Sridevi Ganesh CFPCM, SEBI Registered Investment Adviser, Chamomile Investment Consultants
I want to go for an SIP with a monthly investment of around Rs 3-4 k. Could you please suggest me something? --- Sandeep
While investing in mutual funds, ask three questions to yourself: (1) What is the purpose of this investment, (2) What is the expected return out of this investment, and (3) How long I can hold or When do I need this money?
If you do not have an answer to any of these 3 questions, do not invest. If you are young and want to hold it for a longer time, say 20 years or more than 7 years, you can choose equity funds. Again, if you want to look at the performance every year, then pure large cap or large and mid cap fund will be more suitable. If you do not worry about the year on year movement of NAV, then a multi cap or midcap fund will do for you. If you are a first time investor, try balanced funds. Mutual funds' return is not made while investing, it is made at the time of exit. Hence you should know when to exit.
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