Am I investing in right mutual funds for my kids'education?
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Motilal Oswal Long Term Equity Fund: Rs 5,000 (ELSS)
Mirae Asset Tax Saver Fund: Rs 6,000 (ELSS)
L&T Emerging Businesses Fund: Rs 4,000
Could you please review my fund selection and suggest me good funds for the remaining Rs 5,000. I am planning for children’s higher education.
I am 30 years old and have two seven-month old boys.
MS Shabbir, founder and managing director of SenSage Financial Services, responds:
I am assuming that you pay income tax and you are investing for long-term financial goals. My first advice to you would be to invest Rs.12,500 per month through SIP in Equity Linked Savings Scheme. You may also invest in Kotak Tax Saver Regular Plan and Mirae Asset Tax Saver Fund for this purpose.
The remaining amount of Rs 7,500 can be split into a large cap fund and multi cap fund. We recommend HDFC Top 100 Fund under the large cap category and Kotak Standard Multicap Fund or Parag Parikh Long Term Equity Fund under the multi cap category. You can invest Rs 5,000 and Rs 2,500 in these schemes respectively.