Invest Rs 2000 Per Month in Mutual Funds: A Comprehensive Guide

Dear Roy,

Investing Rs 2000 per month in a mutual fund can be a strategic move towards achieving financial goals over a horizon of 7 to 10 years. However, to make an informed decision, it's important to consider several factors, including your time horizon, risk appetite, and financial goals.

Equity Funds: Ideal for Long-Term Investors

Equity funds are one of the best types of mutual funds you can invest in over a long-term period. They offer the potential for higher returns compared to fixed deposits, making them suitable for investors looking to grow their wealth over a time horizon of 7 to 10 years. If you need more personalized financial planning, feel free to reach out to us. We are here to assist you better.

Follow these steps to start your investment:

Identify Your Time Horizon: Determine how long you can invest. Long-term investments (more than 7 years) are generally better suited for equity funds. Evaluate Your Risk Appetite: Assess how much risk you are willing to take. This will guide you in choosing the right fund that aligns with your comfort level. Consider Fund Options: Here are some excellent fund options based on your parameters:

Recommended Funds for Long-Term Investments

For a long-term investment horizon, consider the following funds:

Franklin India Smaller Cos Fund Mirae Asset Emerging Blue-chip Fund Tata Prisma PE Fund Icici Prudential Focus Blue-chip Fund

Best Mutual Funds in Equity

For those who are investing in the equity market, here are some of the best mutual funds:

IDFC Focused Equity Fund Kotak Select Focus Fund LT Emerging Businesses Fund

For More Balanced Portfolios

If you have a moderate risk appetite, you may want to consider balanced funds or large-cap funds. Some options include:

SBI Magnum Multicap Fund ICICI Prudential Value Discovery Fund Reliance Bluechip Fund UTI Master Share Fund ICICI Prudential Focused Bluechip Equity Fund

Choose the Right Scheme Based on Your Risk Appetite

Depending on your risk appetite, you can choose from the following schemes:

Small Cap or Midcap Funds for a higher risk and higher potential return. Balanced Funds for a moderate risk appetite. Arbitrage Funds if you want to avoid risk while still benefiting from the tax benefits of equity funds.

Start Your Investment Today

To start your investment journey with Rs 2000 per month, here are some diversified equity schemes to consider:

SBI Magnum Multicap Fund (G) ICICI Prudential Value Discovery Fund (G) Reliance Bluechip Fund (G) Large Cap Schemes such as SBI Magnum Equity Fund (G) and UTI Master Share Fund (G). ELSS (Equity Linked Savings Scheme) Funds like Axiz Long Term Equity (G), Reliance Tax Saver (G), DSP BlackRock Tax Saver Fund (G), and HDFC Long Term Advantage Fund (G).

Happy investing!

Sincerely,
AympeR Markets