If you are investing only for five years, we would ask you to invest in safer options. If you don’t want to take risks, you should invest in debt mutual funds. Debt mutual funds invest in debt securities. They are relatively safe and they can offer marginally higher returns than bank deposits. If you are ready to take risks, you can invest in balanced advantage schemes. These schemes decide the equity allocation based on the market conditions. They are safer than pure equity schemes. We would not recommend pure equity schemes with an investment horizon of five years. Invest in them only if you have an investment horizon of at least seven years. However, stick to safer options like large cap schemes and flexi cap schemes. Don’t chase returns and get into risky options like small cap schemes, sector schemes, etc. These schemes are meant for aggressive investors who are ready to take risks and face volatility.
Best Large Cap Funds to invest in 2022
Best Flexi Cap Funds to invest in 2022