I want to invest in mutual funds for 3-10 years. What category of funds should I invest in?

I am 25 and can invest `25,000 per month. I want to invest in mutual funds for 3-10 years. What category of funds should I invest in? Please suggest schemes.

The 3-10 year time period is too broad to provide a fixed asset allocation. Start with 35 per cent in equity and increase up to 70 per cent if your time frame is closer to 10 years. To invest, consider HDFC Balanced (20 per cent), SBI Bluechip (30 per cent), Birla Sun Life Dynamic Bond (30 per cent) and DSP BR Income Opportunities (20 per cent). Add a mid-cap fund, such as HDFC Midcap Opportunities, when you increase your equity component.
(Answered by: C R Chandrasekar, CEO and Co-Founder, FundsIndia.com)


I am a US citizen, with an Overseas Citizen of India (OCI) card and moved to India in May 2015 to work here. Can I invest in mutual funds?

As a general rule, OCI card holders are treated on par with nonresident Indians by mutual funds based in India. So you ought to be able to invest. However, in order to avoid the onerous compliance requirements under US Foreign Account Tax Compliance Act, many mutual funds prevent citizens from the US-Canada too, from investing in some cases. In case you have honed in on your list of preferred funds, I would suggest you first check whether they accept investments from US citizens. There are eight funds which accept such investments.
(Answered by: Jayant R Pai, CFP and Head of Marketing, PPFAS Mutual Fund)