MF queries answered by Rohit Shah, SEBI Registered Investment Adviser, Founder & CEO at Getting You Rich

I have an FD maturing in a week. The maturity value is Rs 1 lakh. If I have to invest on a long-term basis (10 years horizon), what are the options available in MF and Equities? - Dinesh Thakur
We assume that you have a suitable risk appetite for equity investments. Mutual funds are a better instrument to take exposure in equities. You can look at 3-4 diversified equity mutual funds. Within this, balanced fund category is recommended for you as it helps with debt exposure, mid & small size stocks component & periodic rebalancing. You may consider Rs 30,000 each in HDFC Balanced Fund & Tata Balanced Fund from this category. You may invest Rs 40,000 Franklin India Bluechip Fund to invest in large companies. Periodic review of fund relative performance to similar category funds is recommended)

I have just retired. My bank has advised me to invest in HDFC Prudence Funds, however, I am not too sure whether I should invest in "growth" for a period of 3 years or more, or invest in "dividend" pay out for a year. Please advise. - Stephen Gomes
Investing in a growth option is recommended. The returns in your fund grow better with the compounding effect. When you take the dividend, you may just keep money in the savings bank account or FDs where the long term returns are likely to be less on a tax adjusted basis. We assume that you have suitable risk appetite for investing in equity MF & you have no immediate need of cash flow from this investment. Based on your amount of investment, you may like to invest in 3-4 funds. Investing in a single fund is not recommended. Equity MF investment with an outlook of at least 5 years is recommended.

I have 2 daughters of 8 yrs and 1 yrs respectively. I have invested Rs 1 lakh each invested for both in 'Sukanya Samridhi Yojana'. I have Rs 5,000 per month for investment. Should I consider keep putting in Sukanya Samridhi Yojana or invest in MF? If MF, then which is good SIP MF? - Sanjay Kumar
Investing in Equity MF is likely to create more wealth in the long run. For Rs 5,000 per month you can invest in two diversified equity mutual funds. To include debt exposure, to invest in mid & small size companies & to have periodic rebalancing the balanced fund category (equity aggressive) is recommended. You can look at Tata Balanced Fund & HDFC Balanced Fund. Keep in mind that Equity investment needs a higher risk appetite. You should periodically review your fund's performance relative to similar category funds. Keep in mind that the existing Sukanya Samridhi Yojana accounts will need a minimum investment of Rs 1,000 a year to continue.