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Do you have ten lakh rupees in hand and want to invest it on long term basis? Let’s see what are the best plans for that. If you don’t need the money for the next 10 or 15 years, you can invest it in equity mutual funds and extreme hybrid funds.
While equity funds are risky in the short term, they offer better returns in the long term. Once you decide to take a risk, you don’t need to risk everything. Invest in conservative growth funds with less risk. They work great.
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Two of the best categories for that are large cap mutual funds. Another is extreme hybrid bunts. Large-cap funds are companies with a market capitalization of over Rs 20,000 crore. Like an elephant, even if it walks slowly, it will not stop.
You can invest 50 per cent of your money in large cap mutual funds comprising such companies and 50 per cent in hybrid funds comprising a mix of corporate equity and debenture investments. If I am not risk averse and will remain committed to my goals despite market volatility, I can invest in plexi cap funds. It will also include medium and small company shares. The risk is slightly higher. Also the return will be more.
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The market is currently at a peak. So make sure to invest piecemeal in market declines rather than accumulating Rs 10 lakh in one go. The risk of investing in this way is spread and our cost of investment is also low. If a 50-year-old invests Rs 10 lakh in these funds and leaves them for the next 10 years, if it grows at 10 percent annually, he will get around Rs 25 lakh. At the age of 60, it can be converted to a fixed interest yielding scheme like Risk Free Senior Citizen Savings Scheme, Pradhan Mantri Vaya Vandana Scheme.
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