It would be in the interest of new investors entering the stock markets to invest in diversified equity funds, which offer them the necessary exposure and possible gain on their investments. Many of them are also looking at ways to save on taxes; the funds recommended include a healthy dose of equity-linked savings scheme (ELSS). Balanced funds and ELSS offer the perfect choice to the first time investors to experience equity investing. The ELSS comes with a three year lock-in and balanced funds follow a dynamic asset allocation between equity and debt, demonstrating investment discipline.
