Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.
ET Wealth
11,419.25-177.65
Stock Analysis, IPO, Mutual Funds, Bonds & More

Best mutual fund scheme for a moderate equity investor

If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

ET Online|
Updated: Jun 19, 2019, 09.42 AM IST
0Comments
Getty Images
income group
I am 22 years old. I just started working. I am looking to invest around Rs 10,000 every month in mutual funds. My risk appetite is moderate to conservative. I have already gone for a Rs 4,500-SIP in Mirae Asset Emerging Bluechip Fund. Kindly recommend me a plan for the remaining Rs 5,500. I have a long investment horizon since I am investing for wealth building rather than a specific goal.
--Janseet Singh

We always advocate goal-based investing. If you can identify your future financial goals, it would be better to quantify them after providing for inflation and taxes and put together an investment plan to achieve them. This strategy would ensure that you reach your goals without fail.

If you are a moderate investor with a long-term investment horizon, you should consider investing in multi cap mutual fund schemes. Multi cap mutual funds invest across market capitalisations and sectors and they are considered ideal for equity investors with a moderate risk appetite. Here are our recommended multi cap mutual fund schemes: Best multi cap mutual fund schemes to invest in 2019

Mirae Asset Emerging Bluechip Fund is a topper in the large & mid cap mutual fund category. Though the scheme is a good performer, it may not be suited for your risk profile. Since large & mid cap schemes are mandated to invest 35 per cent of the corpus in mid cap stocks, they can be risky and volatile. That is why they are recommended to investors with a higher risk appetite. You should take a re-look at your risk profile (if need be, take an online quiz) and make sure that the scheme matches your risk profile. If it doesn’t, you should start investing in a multi cap scheme.

You may sell your investments in Mirae Asset Emerging Bluechip Fund after a year if you want to avoid paying short-term capital gains tax. Short term capital gains are added to the income and taxed according to the income tax slab applicable to the investor. Equity mutual funds held over a year qualify for long-term capital gains tax of 10 per cent on gains of over Rs 1 lakh in a financial year.
0Comments
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service