Is it the right time to invest in mutual funds for my daughter's future?

I am willing to buy mutual fund for Rs 50,000, considering this is the best time to invest for my daughter’s future. Investment window is 10-15 years. My risk appetite is moderate to low. Please suggest a scheme. I would also like to invest in a debt fund for five years. Suggest a good debt fund.
-Shreyashi Chakraborty

It seems, you are new to mutual funds. Mutual funds allow you to invest a small amount regularly to build a corpus for your long-term financial goals. Ideally, you should identify your long-term goals, find their current cost, and provide for annual inflation to find your target corpus to achieve your goals. This will help you to find out how much you need to invest every month to reach the target.

For example, suppose the college fee is Rs 10 lakh now. Assuming an annual inflation of 8%, the same course would cost around Rs 31.72 lakh after 15 years when your daughter will be ready for college. That means, you will have to invest around Rs 6,290 every month to build a corpus of around Rs 31.72 lakh in 15 years. Note, we have assumed an annual return of 12% for the calculation.


You may invest Rs 50,000 over a few months in a large cap mutual fund (if your risk profile is conservative) or large cap mutual fund (if your risk profile is moderate). However, consider investing a small sum regularly to build a large corpus for your daughter over a long period.

Best large cap mutual funds to invest in 2020

Best multi cap mutual funds to invest in 2020

It is not possible to recommend a debt scheme for you as you have not shared your risk profile with us. The debt mutual fund space going through a rough phase currently. So, it is extremely important to choose a scheme based on your risk profile.