I'm a student who wants to invest


Hello Fpguru,
I'm a student and I want to invest in mutual funds. I can invest up to Rs 2,000/- rupees a month for the next months. I want to keep the money invested for 2-5 years. I wanted to know which equity mutual funds I should go for.



Dear Anuj,


Thanks for visiting our website & asking us a question. It’s nice to see that young students like you have started the habit of savings. This is a very good habit which will reap you dividends in the long run. Though you have started this good practice, to achieve the best results you need to channelize these savings into the right investments. The right investment can be chosen by keeping in mind your time horizon. Shorter the time for money to be invested, less risk you can take; longer the time horizon, more aggressive can be the investment.

Looking at your time horizon of 2-5 years, we would suggest you to invest in certain specific Mutual fund schemes. These are Equity large cap schemes & Equity balanced Schemes. As the time period mentioned by you is not too specific i.e. 2-5 years which is a big variation, we would suggest more of Equity balanced schemes as they tend to have good exposure to debt instruments as well. This means that you will good exposure to equity as well as sufficient exposure to debt too. You can keep some money in Large cap schemes as well but in both these schemes you should aim to be invested in for atleast for 3 years. If 2 years is your target then we suggest debt-oriented schemes, which will provide moderate returns with safety of capital.

Hope this solves you query & keep up the habit of saving!


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