Looking for safe funds with a higher return potential

I want to invest Rs 50,000 in 10 mutual funds for the long term. Please suggest some safe funds that will offer higher returns. I can take 50 per cent risk?
-- Manyam Krishna Sridhar

It seems, you are new to mutual funds. If you are not familiar with investing in mutual funds, you must consult a seasoned mutual fund advisor in your locality before investing. New investors need a lot of handholding and only an advisor near you would be able to offer you such help regularly.

Here are a few pointers: Most advisors typically recommend equity mutual funds to investors with a long-term financial goal. Equity schemes are risky because they invest in stocks. However, they have the potential to offer better returns than other assets over a long period.


Safe investments would offer you only modest returns. If you want higher returns, you should take risk. But make sure you have a higher appetite before investing. If you do not have a stomach for risk, stick to safe investments and be happy with modest returns.

You should try an online quiz to figure out your risk profile. Your definition of your risk-taking capacity – can take 50 per cent risk – is vague.