I am 43 and want to invest Rs 6 lakh for five years. I don’t want to take too much risk. Where should I invest this amount?
Naveen Kukreja CEO and Co-founder, Paisabazaar.com replies : Given your low risk appetite and the rich valuations of mid- and small-cap companies, it is advisable that you spread your investments across a large-cap (50%), a multi-cap (25%) and a balanced advantage fund (25%). These funds carry lower risk compared with their mid- and small-cap counterparts. For your large-cap investment, you can consider the following funds: ICICI Pru Bluechip, Reliance Large Cap and L & T India Value. HDFC Capital Builder Value, Franklin India Focused Equity and SBI Magnum Multicap are good multi-cap options, while ICICI Pru Balanced Advantage and Motilal Oswal Dynamic are good balanced advantage schemes. Invest in the direct plans of your chosen funds as these will help generate higher returns compared with their regular plans.