If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts. ET Online|Updated: May 31, 2019, 04.16 PM ISTGetty ImagesIs Reliance Nivesh Lakshya good fund to invest for the long term. I am 47 years old, and I can invest the amount for seven to eight years.–Shilpi Das
Since you have not offered any other details, it is not possible to offer a personalised advice. Here is some general advice. Reliance Nivesh Lakshya is a long-term debt scheme. However, it is a new scheme. It is yet to complete a year.
A word of caution about long term bond funds. You should keep in mind that long term debt funds are extremely sensitive to interest rate changes. When RBI is cutting rates, these schemes perform very well. However, they start losing big when the RBI starts hiking rates. That is why it is extremely important to time your entry and exit in these schemes. If you think you can do that, you may invest in it. Another long duration fund with a long performance record is ICICI Prudential Long Term Bond Fund.
Even though everyone is betting big on RBI to cut rates this year, most mutual fund advisors and managers are still recommending short duration mutual funds to individual investors. If you think you can’t take the extra risk and volatility in long duration fund to earn extra returns, you may consider investing in short duration mutual fund schemes.
Here are our recommended short duration mutual fund schemes:
Best short duration mutual funds to invest in 2019
Also, since you have a long term investment horizon, you may consider investing in equity mutual funds schemes. Provided, you have a high risk appetite. You may consider investing in aggressive hybrid schemes or large cap mutual fund schemes.
If you are a newcomer to mutual funds, seek the help of a mutual fund advisor before proceeding further.
(If you have any mutual fund queries, message us on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.)Also ReadCan I invest in Reliance Nivesh Lakshya Fund?CURRENT SCOREHIGH SCORE:0Commenting feature is disabled in your country/region.Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service
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