Can I invest Rs 20 lakh in SBI Equity Hybrid Fund?

Can I invest Rs 20 lakh in SBI Equity Hybrid Fund for five years? I don't seek regular income. I want Rs 20 lakh to increase as per the rate of returns. What is the safest way to increase the principal investment apart from bank fixed deposits?
--Rohan Mukherjee

SBI Equity Hybrid Fund is an equity-oriented aggressive hybrid fund that invests around 65% in equity. As you know 65% equity is risky. It is not at all the 'safest' investment. The market fluctuations would be definitely felt in any equity-oriented scheme. Including equity hybrid funds.

Safest schemes would be debt schemes. Overnight schemes and liquid schemes would be the safest option. However, they will offer only modest returns.


You should invest in equity schemes only if you have the necessary risk appetite and time horizon. Seek the help of a mutual fund advisor. He will help you to assess your risk appetite and find out whether you are mentally prepared to invest in an equity fund or equity-oriented fund. Do not chase returns. You might regret it in future.