Best mutual funds to invest for my newborn

I have a newborn child this month. I want to invest Rs 2,000 per month in a mutual fund. I want returns after 18 years, that is, for child's graduation needs. I am ready to bear any risks, I need more returns over long period of 18 years. Can you please suggest the mutual funds that will give me more returns over a long period.
--Omkar Jalireddy

Since you have a long-term investment horizon and an appetite for risk, you may consider investing in equity mutual fund schemes to build a corpus for your child's education. However, you have not mentioned your risk profile. It is extremely important to choose a mutual fund scheme based on your risk profile.

For example, if you are a conservative equity investor, you should choose an aggressive hybrid scheme or a large cap mutual fund schemes to fund the college corpus for your child.


Best aggressive hybrid schemes to invest in 2019
Best large cap mutual fund schems to invest in 2019

If you have a moderate risk appetite, you should invest in multi cap mutual fund schemes.

Best multi cap mutual fund schemes to invest in 2019

If you have an aggressive risk appetite, you may consider investing in mid cap or small cap mutual fund schemes.

Best mid cap mutual fund scheme to invest in 2019
Best small cap mutual fund schemes to invest in 2019

It is a great idea to start investing Rs 2,000 for your child's higher education. However, a better strategy would be to find out the current cost of the college fee and provide for inflation to identify a realistic target corpus. For example, if the course fee is Rs 10 lakh now, you would need around Rs 40 lakh for the same course after 18 years, considering an annual inflation of 8 per cent. To create a target corpus of Rs 40 lakh after 18 years, you need to invest Rs 5,225 every month. We are assuming that your investment would fetch an annual return of 12 per cent.