Why equity funds including large-cap and mid-cap funds are inappropriate for periods of three years or less. Why consider balanced funds for periods of 5-8 years.
Edited highlights
1:08 Ashutosh Bairagi has invested in the ELSS of Axis, Reliance, DSP, Birla Sun Life mutual funds
1:15 He wants to invest Rs 10,000 in SIP in debt and mid-cap fund to diversify his mutual fund portfolio. He has a time horizon of three years
1:34 Three years is too short for investing in equity funds since there is often fluctuations in the value of investments in this period which might unsettle you
1:57 A better way would be to figure out the need for which you are trying to make this investment
2:08 3-4 years might just be good enough for a debt fund
2:18 If the need for something like child's primary school admission, you might not want to take high risk of equity funds and debt funds might work better for you
2:36 In the investments of about 5 years, the equity component can come in
2:44 There you can look at balanced funds like HDFC Balanced Fund and L&T Prudence
2:57 If you are looking at equity funds, we suggest you look at large--cap funds and have a horizon of 8-10 years
3:22 In case of large-cap equity funds, we suggest Aditya Birla Frontline Equity Fund
3:53 Even for mid-cap funds, have a tenure of 8-10 years
3:56 We would suggest Sundaram Select Midcap if you are looking at a mid-cap fund
