The benefit of liquidity is available in all open-ended schemes, except ELSS schemes
We are a newly married couple and would like to plan our finances. We are paying a car EMI and are looking at buying a house in the near future. Which funds should we invest in for good returns? We are looking for a small lock-in period, higher liquidity and a monthly plan.
Rohit Maggo, Faridabad
The benefit of liquidity is available in all open-ended schemes, except ELSS schemes, which have a lock-in of three years. You can choose to invest using the systematic investment plan (SIP) offered by all mutual funds. This allows you to invest small amounts periodically and also gives you the advantage of rupee cost averaging. The type of schemes you select will depend upon your ability to take risk and your investment horizon. Invest in equity funds only if you have a reasonably long-term investment horizon.