Best mutual funds for a 46-year-old investor

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Better late than never, I am 46 years old and my principal savings until now has been in PF and EPF. I also have invested in a house which has another three year’s loan pending. I am planning to start investing in mutual funds. I want to invest at least Rs 20,000-25,000 per month to start with for long term view of at least 10 years. Please give me a couple of best funds to invest.

–Gokul Natarajan

You have to be extremely careful about your mutual fund investments as you are starting your investments at a crucial phase in your earning life. Don’t go by stories of investors who made crores in a short period of time. Don’t get carried away and start investing in products you don’t know anything about. Such investments often make you poorer. Always remember that you can invest in equity mutual funds to earn better after-tax and inflation-beating returns over a long period. However, this is possible only if you choose mutual funds that match your goals, investment horizon, and risk profile. It is also equally important that you continue with your investments irrespective of the market conditions. Many investors stop or sell their investments in a bad market phase. This results in a loss of opportunity to create wealth.

If you do not understand anything about investing or mutual funds, you should seek professional help. You can find a reliable mutual fund distributor in your locality or you can hire the services of a fee-only advisor or a financial planner. Don’t opt for help from friends and colleagues because they may not offer the best advice.

Do you want to create wealth over a long period of time without taking too much risk? Then you can choose large cap mutual funds. If you have a moderate risk appetite, you may opt for flexi cap funds. We will not recommend risky investment options for you since you are starting with mutual funds. Gain experience and knowledge before taking more risks.

Best large cap mutual funds
Best flexi cap mutual funds

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