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Mutual funds for a newcomer to earn 15%

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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Last Updated: Mar 31, 2020, 04.51 PM IST
I am a beginner. I am willing to start my investment journey now. Can you suggest some suitable mutual funds for me? I am interested to invest in index funds, large cap funds, and multi cap funds. My investment horizon is 15 years. My risk profile is moderate. I want to earn 15% returns over a long period and also wants to gain in the short period (7 years).
-Abhishek Tomar

If you are a newcomer and do not know much about mutual funds, you should seek the help of a mutual fund advisor before proceeding further. As you know, the stock market is going through a troubled phase and a newcomer may find to tough to navigate it on his own in the coming days.

We normally recommend aggressive hybrid schemes or large cap mutual funds to newcomers. These schemes are relatively safer and less volatile than other pure equity mutual fund schemes, and considered ideal for conservative equity mutual fund investors. A well-informed moderate equity investor, on the other, can invest mostly in multi cap mutual fund schemes. These schemes invest across market capitalisations and sectors according to the view of the fund manager. If you want to see the best schemes in these categories, you may read: Best mutual funds to invest

Mutual funds do not assure returns. Based on long-term historical returns, many experts assume 10-12% returns form equity mutual funds over a long period. However, you should note that returns may not accrue every year in a steady manner. There might be periods of very high returns, followed by volatile markets or periods of negative returns. However, at the end of 15 years, you may hope for an annual return of 10-12% returns.
(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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