I have a six month old child and I would like to invest for her future with Rs 2,000 every month for the next 10-15 years. Please suggest funds that I can invest in.
Amrita Pawar, Pune
It is a good move to start saving from now for your six month old child and the best way to do that is to invest in mutual funds regularly through systematic investment plans. For instance, if the amount Rs 2,000 that you plan to invest every month earns an annualised 12 per cent return, you can expect to build a corpus of Rs 10.09 lakh in 15 years or Rs 13.5 lakh if it earns 15 per cent returns. As you are a first time investor, you could consider investing this money in balanced funds such as ICICI Pru Balanced or ICICIC Pru Balanced Advantage, which are most suitable for first time investors. Both have a proven track record and performance history, but do make it a habit to track your investments once a year to evaluate the progress and if there is any need for change in fund selection as a fund that is good today may not be so forever.
