I would like to know a fund to invest Rs 3,000 – Rs 5,000 in SIP for my 7-year old daughter.
Abhijit Kumar Roy, Kolkata
For a beginner a balanced fund is a good start, with more than 65 per cent of its assets in equities. It regularly balances the equity to debt ratio in its portfolio. If you are looking to create a corpus for your daughter’s education, which will be at least another ten years, you could consider investments in ICICI Pru Balanced or ICICI Pru Balanced Advantage fund, which are both funds with a long-term performance history to go by. As a caution, you may wish to move your investments to a debt fund as you approach closer to the year when you need the funds for your daughter’s education. Likewise, review the performance of the fund at least once a year to check its progress and how it is faring compared to its peers.
