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Best mutual funds to invest for five years

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 12, 2019, 09.57 AM IST
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I am 27 years old and I can take moderately high risk. I am already investing in the following schemes through SIP:
Principal Hybrid Equity Fund - Rs 2,000
Mirae Asset Emerging Bluechip Fund - Rs 1,000
I want to invest additional Rs 2,000. Could you please suggest some funds where I can invest? I can stay invested for five years.
--Sreeraj Thamban


We typically ask equity investors with moderate risk appetite to invest mostly in multi cap mutual fund schemes with an investment horizon of five to seven years. You are currently investing in an aggressive hybrid scheme and large & mid cap scheme. The aggressive hybrid scheme is normally recommended to conservative equity investors with a five year investment horizon. Large & mid cap mutual fund schemes are suitable for an investor with aggressive risk appetite as these schemes invest at least 35 per cent of the corpus in mid cap schemes. Investments in mid cap stocks are risky and they can also be volatile. You also need an investment horizon of at least five to seven years to invest in these schemes.

If you can hold on to your investments at least for five to seven years, you may consider investing in one multi cap mutual fund scheme. Since you are investing a small amount, you just need to invest in a multi cap scheme. Here are our recommended multi cap schemes: Best multi cap mutual funds to invest in 2019

However, if you cannot extend your investment horizon and want to stick to your horizon of five years, you should stick to aggressive hybrid schemes. Here are our recommended aggressive hybrid schemes: Best aggressive hybrid mutual funds to invest in 2019

You should seek the help of a mutual fund advisor. Only an advisor would be able to offer your tailor-made advice after obtaining your personal details.
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(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.)

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