Dear Sir,
I want to invest Rs.1 lakh per annum for 5/10 years.In which MF it is best to invest? Please respond.Thanks.
I think that is an extremely wrong question to ask (I learnt it the hard way). No matter how much money you have to invest, you should always evaluate it based on some criteria and ask yourself these questions e.g.
* What is my risk appetite? - Am I ok to lose 50% of my investment? Can I afford to stay in the market after 3 years
* Financial goals - Marriage/Child education. Once you reach your goal then exit and reevaluate your goals and invest in other instruments
For e.g. my dad has very low risk appetite at his age. He would rather earn less for the next 5 years than invest in a risky instrument.
All MFs will provide *some* return at the end 5 - 10 years, but if the markets turn your corpus will actually reduce and if you need money at that particular time, you may not get it.
So its all about having the mental aptitude to say "I will invest 1 lakh annually in a small caps and I am ok with not touching that money for the next 10 years"
MFs are not like FD, they will not always grow.
Just my $0.02.