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    Am I investing in the right mutual funds for my kids’ education?

    Synopsis

    If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

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    I have invested a lumpsum in the following mutual funds:
    L&T Emerging Businesses Fund: Rs 10 lakh (invested 6 months back)
    ICICI Prudential Equity & Debt Fund: Rs 5 lakh (invested 2 months back)
    Kotak Emerging Equity Scheme: Rs 5 lakh (invested 1 month back)
    DSP Equity & Bond Fund: Rs 5 lakh (invested 2 months back)
    My investment horizon is 10 to 15 years. I am investing for my kids education and their marriage. Are my investments good?
    --Prince Rajkumar


    Subir Jha, Founder, BuckSpeak, responds:

    I don’t see anything wrong with your choice of schemes. In any case, these are extremely early days of your investment and the schemes should be given a longer rope ( minimum 2-3 years ) , before you consider even evaluating them . Equity investments are volatile by nature and hence one needs lots of patience if you want to reap the benefits of higher- than- inflation returns.

    Things You should consider
    • Annualized Return
      for 3 year: 7.47%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.2 Years
    Things You should consider
    • Annualized Return
      for 3 year: 3.25%
    • Suggested Investment
      Horizon: >3 years
    • Time taken to double
      money: 4.1 Years
    In case, the ups and downs give you too many jitters, you could consider adding one or two debt mutual fund schemes in your portfolio. Also stop monitoring your equity portfolio on a daily/weekly basis. It serves no purpose , except making you feel nervous

    (If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)
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