A mutual fund for daughter’s education
If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.
Equity mutual funds are ideal to achieve long-term financial goals like children’s education. However, since you are starting late and have only five years to achieve the goal, you should play it safe. It will not be safe to invest in pure equity mutual funds since your investment horizon is only five years. You may go for aggressive hybrid schemes. These schemes invests in a mix of equity and debt and because of this mixed portfolio they are relatively less volatile than pure equity schemes. You have not mentioned your risk profile. We are assuming that you are ready to take some risk and invest in equity mutual funds. Aggressive hybrid schemes invest 65 per cent of their corpus in stocks. That makes them risky. If you are not okay with the risk, you may consider investing in conservative hybrid schemes that invest mostly in debt and a small part in stocks.
Best aggressive hybrid schemes to invest in 2019
Best conservative hybrid schemes to invest in 2019