Mutual Funds

Your Fund Portfolio

Parvatha Vardhini C | Updated on August 04, 2019 Published on August 04, 2019

I am 34 and work in a private firm. My monthly salary is ₹18,000. I want to start investing 15 per cent of my monthly salary in mutual funds for 10-15 years. I request you to kindly suggest where and how to safely invest in mutual funds.

Vijay Rajendran

While equity mutual fund investments are subject to market risk, debt mutual fund investments are subject to credit risk or interest rate risk. Thus, they are not entirely safe. However, there are certain categories of funds that may be relatively safer.

Assuming ₹18,000 is your take-home pay, you can invest ₹2,700 a month. Since you have a 10-15-year horizon, you can invest in aggressive hybrid funds, a safer choice among equity-oriented funds.

These funds invest at least 65 per cent of their portfolio in equity to give a leg-up to returns when markets go up. At the same time, they invest up to 35 per cent in debt to cushion downsides when markets fall. Go for ICICI Prudential Equity & Debt Fund in this category, a scheme with a good track record of performance.

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Published on August 04, 2019
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