Which mutual funds should I invest in for the next 30 years?

Please recommend a few good mutual fund schemes for investment for the next 20-30 years. I can set aside 1,000-3,000 per month. 

—Name withheld on request 


Your decision to start investing every month in mutual funds for the long term will help you build a good corpus over the years. Mutual funds are the best way to invest your money as they are managed by professional fund managers. 

The 20 to 30 years horizon is very long term and this does allow you to take some additional risks to generate higher returns. Having said that at this stage, you can start investing in a blend of funds that invest in well-established large companies along with growing mid-sized companies too. In the beginning, it is not the amount of investment, but how disciplined you are with these investments is all that matters. All those who have built their portfolio in MFs started small and kept increasing the investment amount as they progressed in life and career. You can follow the same. Gradually, you should plan to increase the monthly investment as you grow in your career. 

You can consider investing in Canara Robeco Emerging Equities Fund, ICICI Prudential Bluechip Fund and Kotak Emerging Equity Fund. These funds will help you invest in a good mix of large and midcap companies. Even though you are investing for the long term, you must  review your portfolio every six or 12 months just to see how your investments are progressing. 

The suggested funds have done well over the years and have a good track record. But there could be phases where funds go through tough times, it happens with most of the funds. At that time, understanding their consistency is important in taking the right decisions. Regular reviews will help you to understand these aspects . 

It is not always necessary to rebalance or churn your portfolio during reviews. You should come out of a fund if it continuously underperforms for more than two quarters or if it changes its objective. 

Harshad Chetanwala is co-founder at MyWealthGrowth.com.

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