Ask ET Mutual Funds: Where can I invest Rs 12,000 per month for maximum returns?

I am 24 years old and currently investing Rs 12,000 per month in an RD. Now, I want to switch to mutual funds from RD. Kindly suggest a portfolio which can help me earn maximum returns in the coming five years. I have moderate risk preference.
– Gaurav Aggarwal

Abhishek Gupta, founder and chief financial planner, Moat Wealth Advisors, responds:
Firstly, I congratulate you for thinking about investing at a young age. Considering your moderate risk preference and five-year time horizon, I would recommend you to start an SIP in balanced equity funds. These funds have 65 per cent of the corpus invested in Equity stocks and rest in debt instruments. They work best for a first-time investor and are less volatile than a 100 per cent equity fund. You can consider dividing the money in Birla Sun Life Balanced 95 Fund and DSP BlackRock Balanced Fund.


ET Mutual Funds adds: Please also check our recommended mutual fund portfolio.

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