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Best mutual funds to invest for a child's education

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

ET Online|
Sep 11, 2019, 02.02 PM IST
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I want to start investing for my child's education. The time frame is 10 years and I am looking for Rs 20 lakh. What is the best possible option as I am new to this investing.
--Rumana Begum

If you are new to mutual funds and do not understand much about investing, you should seek the help of a mutual fund advisor. New investors need a lot of guidance in the beginning and they also need a lot of reassurances during market downturns. Only a mutual fund advisor near you would be able to offer you such personalised advice and help.

For long-term investments, equity mutual funds are considered ideal. However, equity mutual funds are highly risky and volatile. Investing for a long period would help one to navigate risk and volatility better and pocket good returns. But it is extremely important to choose a mutual fund scheme that suits your risk appetite and continue with your investments irrespective of the market conditions.

New investors are typically asked to invest in aggressive hybrid schemes or large cap mutual fund schemes. Aggressive hybrid schemes invest 65-80 per cent in stocks and 20-35 per cent in debt. The mixed portfolio helps to reduce the overall risk and volatility. This is why these schemes are considered ideal for new investors.

Another option is large cap mutual funds that invest in very large stocks or top 100 stocks by market capitalisation. These schemes are also relatively less volatile than other pure equity mutual funds. Best aggressive hybrid schemes
Best large cap mutual funds to invest
(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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