I can invest Rs 4,000 every month and would like to invest in mutual funds which can give me a return of at least 15 per cent every year.
Rahul Juneja, Chandigarh
The sum that you can invest in mutual funds will depend on how much you save each month after meeting your living expenses regularly. Investing systematically in mutual funds through the SIP route is advisable for the regular investments which have the dual benefit of power of compounding and averaging of the acquisition cost on investments. You should be also aware that mutual fund investments are not risk free and there is no guarantee on returns when investing in them. Taking a 3-5 year investment time frame you should start investing in a balanced fund such as ICICI Pru Balanced or ICICI Pru Balanced Advantage and asses the progress made by your investment in this before adding funds from other categories to diversify your mutual fund portfolio.
