The Mutual Fund Show: Here's Your Five-Year Investment Strategy

As Prime Minister Narendra Modi is set to be sworn in for a third stint in office, it’s time to plan your investments over the next five years.  

Query 1: I want to invest Rs 60 lakh in mutual funds for the next 3-5 years. Please share fund recommendations and investment strategy.

Name: Bharti Gupta I Age: 56 years

Arnav Pandya: If you plan to extend it over 2-3 years, by the end of the investment period, it would be advisable to opt for a hybrid fund and spread the investment over 5-6 months to average out the costs. Considering the time frame of 3-5 years, a Balanced Advantage Fund would be a suitable option.

Query 2: I want to initiate a Rs 10,000 SIP and I'm aiming for Rs 2-3 crore returns. As an aggressive investor, what funds do you suggest?

Name: Rahul I Age: 35 years

Arnav Pandya: If you want such high returns, you have to increase your investment amount and invest at least Rs 20,000. Invest in equity funds. A mixture of large-, mid- and small-cap funds can be chosen.

Query 3: I would like to switch my SBI Contra Fund and SBI Focused Fund to some better performing funds. What funds can you recommend?

Name: Rajaram I Age: 64 years

Arnav Pandya: You can switch to an HDFC Focus Fund if you want to reduce the risk itself.