Ask ET Mutual Funds: How long should I wait for good returns from Prima Plus?

I invested Rs 1 lakh as a lumpsum in Franklin India Prima Plus Fund (Growth). How much time I have to wait for good returns from this fund?

--Saurabh Chawla

You have not mentioned when you made this investment in Franklin India Prima Plus Fund. So, we can’t evaluate its performance during your holding period. It is a good multicap fund with a great track record. Its performance over one-, three- and five-year periods is also impressive.

Anyway, you should always invest in equity mutual fund schemes with an investment horizon of at least five to seven years. If your goal is further away, you can hold on to your investments even longer. Equity funds offer superior returns than other asset classes over a long period. You can hope to get double-digit post-tax returns over a long period.


Also, instead of committing the money in a lumpsum, try to stagger your investments over a few months to average your purchase cost and maximise returns.

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