I am 23 and have savings of Rs 2.5 lakh which I am interested in investing in some high risk and high return fund as currently I have no financial responsibility.
Vinay Purohit, Bhopal
Since you are young, you should save regularly through systematic investment plans than lump sum investments. By investing a fixed amount at predetermined intervals, the trouble of figuring the best time to invest is eliminated, which offers an efficient way to ride market volatility. While you are willing to take risks with the hope of earning higher returns, you should also fix an investment time frame for which you plan this investment. You can consider investing in a fund like ICICI Pru Balanced Advantage. It is a good fund that has done well during both the down and up cycles of the stock markets. But, make sure to track the progress on your investments to evaluate their performance at least once a year and alter the fund selection if need be.
