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Mutual funds for a new investor

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Last Updated: Mar 04, 2020, 02.29 PM IST
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I have just started my career. I am 28 years old. I want to invest Rs 4,000-5,000 every month in mutual funds. Suggest me some schemes. My risk appetite is moderate.
Also, suggest some LIC policy for benefit of up to Rs 10 lakh in 10 to 12 years.
-Avinash Landge

If you are a long-term investor with a moderate risk appetite, you should invest mostly in multi cap mutual fund schemes. Multi cap mutual funds invest across market capitalisations and sectors/themes based on the outlook of the fund managers. These schemes are considered ideal for regular investors looking to invest in stocks because of their diversified portfolio.

Here are our recommended multi cap mutual fund schemes: Best multi cap mutual funds to invest in 2020

Do not look at life insurance products from LIC or any private insurance players as an investment option. If you have any financial dependents, you need an adequate life insurance cover. It is not negotiable. The basic idea is that if something happens to you, your family should be able to maintain their living standards with the proceeds of your life insurance policy. However, you should never buy a life insurance product with investment element in it for an adequate life cover. Such products are expensive and you would never be able to buy a large insurance cover. That is why you should always opt for a pure term insurance plan to buy a large life insurance cover. You can pay a small premium and get a very large life cover with a term plan. If something happens to you, your family would get the cover amount. If you outlove the policy, you do not get anything.

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