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Best mutual funds to invest for 10 to 15 years

I want to invest the FD amount to earn better returns.
I am 27 years old. I am a government employee. I have been investing in the following mutual funds through SIP:

SBI Bluechip Fund: Rs 2,000 per month
Mirae Asset Emerging Bluechip Fund: Rs 2,000 per month
L&T Emerging Businesses Fund: Rs 1,000 per month

I also have a fixed deposit of over Rs 10 lakh. An LIC policy of Rs eight lakh and I have been investing Rs 5,000 per month in a PPF account since September 2014.

I want to invest the FD amount to earn better returns. Can you suggest me some investment options? Can I invest a lumpsum in a multi cap or balanced mutual fund? My financial goal is to purchase a property or a flat. Please suggest me some good funds for a long-term, say, 10 to 15 years.
--Vishnu Muralidharan

Ashish Modani, Founder, SLA Financial Solutions, responds:

Firstly, you are overloaded with debt-based investments like FD, PPF and even an LIC policy. It is advisable to stop paying premium for your LIC policy, as investment and insurance should not be mixed. Best would be to take a term plan instead.

Risk and return go hand in hand and risk goes down with time. So, if you have at least three years, you can look at funds like balanced advantage funds from ICICI, Kotak and Axis mutual funds. Switching to balanced funds or multi cap (multicap) funds is advisable only if you have a horizon of at least five to seven years.

You can continue with your current investments. Don’t try to chase funds for better returns. You can add Axis Small Cap Fund and Kotak Standard Multicap Fund for an additional SIP. All the funds you are investing are good for a period of 10 to 15 years. Many investors do not continue investing in the same mutual funds for a long period. They either switch to the so-called better performing funds or redeem their investments when the markets go through a “Perfectly Normal Bear” phase. If you continue in a disciplined manner, you will eventually make loads of money.
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