For the last few years, mutual fund returns have not been rewarding but with the resurgence in market which is just 2% away from breaking lows of this year and the discipline SIP investment provides, mutual funds for a longer tenure is undoubtedly the best choice.
Also, as per experts the cost of education rises at double the rate of actual inflation, so if your son or daughter is take a course which currently cost Rs. 25 lakh then 15 years down the line it will be valued at over Rs. 1.5 crore or even more, considering inflation in education to be 10-15% annually.
Now, how should your portfolio mix be decided such that returns over a tenure are both rewarding as well as does not nudge you to check upon your allocation is discussed here with some of the best category funds where you can consider investment:
1. UTI Sensex ETF:
To a new investor, the index fund category provides exposure into large cap stocks such as in the current index fund with allocation in stocks such as RIL, HDFC Bank, Infosys. The ETF is a 5-star CRISIL rated fund with expense ratio at just 0.07 percent. 3-year annualized return from the fund have been over 9 percent. And the mutual fund risk-o-meter puts it under the moderately high risk category.
2. HDFC Corporate Bond:
This fund with above average performance among peers. The expense ratio is 0.61 percent. The scheme over a year has yielded 11.51 percent. One can start a SIP in this fund is Rs. 500. The fund has investments in G-securities, CDs, T-Bills.
3. Canara Robeco Equity Hybrid Fund:
This is also a 5-star rated fund and SIP in the fund can be started for as less as Rs. 1000. 1-year return from the fund has been over 12 percent. The fund's portfolio comprises Infosys, RIL, HDFC Bank, ICICI Bank, TCS, HUL among others. The aggressive hybrid fund is also a moderately high risk fund.
4. Axis Bluechip Fund
This large cap fund is 5 star rated by CRISIL and commands an expense ratio of 1.7 percent. Investors can start a Rs. 500 SIP in the fund and over a 3-year and 5-year tenure, the fund on an annualised basis has yielded returns to the tune of 16.39 and 35%, respectively.