2018 financial resolution: 10 mutual fund portfolios for first-time investors
Disclaimer: This story is for informational purposes only and should not be taken as investment advice.
If you are a first-time investor you probably need guidance on where to put your money and how much of it. Mutual funds are flexible and liquid investments that can be redeemed at any given time, with the exception of ELSS or Equity Linked Savings Scheme funds.
Choosing the right type of mutual funds is described as the first step to begin investing in mutual funds, according to a ClearTax, a financial consultancy firm, report.
“Broadly speaking, for the first-time investors a balanced fund or debt fund (dynamic bond fund or income fund) would be a good option to begin with. These are funds that will give you better-than-FD returns,” ClearTax said.
Through a carefully calculated process, investors will have to narrow down searches for portfolios that suit individual risk appetites.
“Select a fund on the basis of its long-term performance. A fund that has earned good returns over different time periods would be a better choice than a recent outperformer,” ClearTax said.
With this in mind, four wealth managers cited by ET Mutual Funds, suggested these portfolios for the first-time investors:
- Reliance short term fund
- Aditya Birla SL Frontline Equity
- Mirae Asset India Opportunities
- HDFC Balanced fund
- HDFC Short Term Opportunities
- SBI Magnum Multicap Fund
- Canara Robeco Balanced Fund
- ICICI Prudential Balanced Advantage Fund
- Kotak Select Focus Fund
- Birla Sun Life MIP II Wealth 25
Do keep in mind that these funds and the allocation of money to each was decided after careful consideration of individual investors.