Mutual funds that will give fair returns even if the market crashes

I am 23 years old and I am new to mutual funds. I want to invest around Rs 8,000 per month for the next six to seven years. I have a moderate to high risk appetite. Can you suggest some good mutual fund schemes that will guarantee fair returns even if the market crashes? I have been hearing that the bubble will burst anytime soon.

-- Tejkaran Singh

Dinesh Rohira, Founder & CEO, 5nance.com, responds:

I would advise you to refrain from unwarranted news and rumors that keeps floating in the market, which is not relevant at the end of the day. You are most likely to see swings in the market or in your investments on a short-term basis. But a wrong decision can undermine your long-term objective. You should avoid getting distracted by short-term volatility. Don’t buy any news or rumors which comes by and seek a professional’s advice.

You should also understand that returns are not guaranteed in mutual fund schemes. Returns are always subject to market risk. Having said that, over a long-term, market can deliver decent returns irrespective of the short-term volatility. These are my recommendations:


HDFC Capital Builder Value Fund (G): Rs 2,000
Aditya Birla Sun Life Pure Value Fund (G): Rs 2,000
SBI Magnum Multicap Fund (G): Rs 2,000
Mirae Asset Emerging Equities Fund (G): Rs 2,000