Want to invest in mutual funds but don’t know how to go about it?
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Get all your mutual fund related queries answered by our expert, Manoj Nagpal, managing director and chief executive officer, Outlook Asia Capital, on our show Mutual Fund Corner.
Q: 30-year-old Arun Yadav writes to us from Gujarat. I want to invest Rs 20,000 per month in SIP. Please advise.
A: Four thumb-rules for constructing a SIP portfolio:
Have a tenor for at least 10 years.
Choose funds with higher volatility measured by standard deviation.
Use a mix of multicap funds and maybe some midcap funds to add more risk/return.
Choose funds with different investment styles.
Given this framework, you can consider the following four funds:
Motilal Multicap 35.
Aditya Birla Equity Advantage Fund.
Kotak Contra.
DSP MidCap Fund.
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