Ask our experts – November 2023

Investment queries

I am 26 years old and new to investments. A friend suggested I start investing through mutual funds. I do not know much about them or how to get started, but I want to invest in mutual funds. Can you help me? Which are the best mutual funds I can invest in?

It’s a good thing that you made the decision to begin investing early in life. Before venturing into the investing world, you should do your risk profiling i.e., evaluate your willingness and ability to take risks, then set clear investment goals and also determine a realistic duration for which you wish to invest in. There are various categories of mutual funds like equity-oriented, debt-oriented and hybrid, which offer a wide variety of schemes to choose from. A basic understanding of why you are investing will help you select the mutual fund category first and the schemes therein. It is good to systematically invest in equities.

As you are a novice investor, you may choose to start investing in the multicap category for a minimum of five years. You can eventually research and select the most suitable mutual fund categories based on your various financial goals.

Below are our recommended Multicap funds:

CategoryScheme NameSIP CAGR %
3 Yr5 yr10 yr
MulticapNippon India Multi Cap Fund(G)29.8826.6417.79
MulticapMahindra Manulife Multi Cap Fund-Reg(G)22.9925.39 —
MulticapBaroda BNP Paribas Multi Cap Fund-Reg(G)18.2821.0615.47
MulticapSundaram Multi Cap Fund(G)18.5320.4716.31

CAGR as of 16-Oct-23.

To view our detailed MF recommendations, turn to page number: 36

I have been investing in two SIPs since 2020. Over the years my salary has increased, and I wish to invest more. Please advise on how I can go about it.

Going by the time period you have mentioned, we believe you have reaped good returns from your SIP investments over time. SIP is a simple investment strategy that helps you invest in a disciplined manner for wealth accumulation over a period to meet financial goals. Another key aspect of SIP investing is to periodically increase the investment amount, at least in line with the growth in the income or the inflationary trends.

You can increase the SIP amount in the existing mutual fund schemes, by using the same auto-debit mandate if it has headroom for accommodating the increased SIP amount. Please contact your financial advisor for assistance.

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