I want to invest Rs 1 lakh in mutual funds. Should I invest in different schemes?
Praveen Rao, Vizag
You appear to be a first time investor and in a hurry. When investing, you need to keep in mind the following – investment objective, time frame to invest for and the risk that you can take with your money. As a beginner, it will be good to start investing in balanced funds, which invest in a predefined proportion between equity and debt. Funds such as ICICI Pru Balanced and ICICI Pru Balance Advantage are a good option. If your risk appetite is higher, you could even invest in a fund like ICICI Pru Focused Bluechip which has the potential growth. However, it is not clear if you are looking for a one time Rs 1 lakh investment or a regular investment of Rs 1 lakh. Ideally, when investing in equity funds, you should do so regularly through systematic investment plans, which are not only convenient, but also a smart way to invest for the long run.