I am 28 and want to invest Rs 2,000 in a midcap fund for five years. Please suggest a fund.
Anmol Kumar, Bhopal
You come across as a first time investor, who wants to invest for the long-term with growth in mind through systematic investments in equity mutual funds. For someone new to investing, a midcap fund may not be the best fund to start investing, as investments in these funds are risky. This segment of the market is subject to a lot of volatility and carries downside risks. For a new investor, it would be appropriate to start investing in a balanced fund. You could consider investing in ICICI Pru Balanced and ICICI Pru Balanced Advantage fund, which have a proven track record of performance history to go by over different market cycles. Once you experience investing in this fund for a few years, you could then consider investing in midcap funds depending on your risk taking abilities.
