Ask Money Today: Which are the best mutual funds for a 24-year-old?

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I am 24 years old. I have just started working, got my first job in a fashion studio. I believe I am a risk-taker, though I have not invested earlier. I want to invest in equity funds now. I do not have any loans. I will be earning Rs 28,000 per month. Kindly help me with a list of best equity mutual fund schemes to start my investments. I can invest Rs 15,000 to 18,000 per month.  Also, what is a tax-saving mutual fund? Do I need to invest in it?

-Teena P

By Divam Sharma, Co-Founder, Green Portfolio, SEBI Regd. Portfolio Management Services

Congratulations on your decision to start investing early in your professional career. I have split your investment suggestions to equity, debt and hybrid funds. Debt funds can be used in case of any emergency, while equity funds can be continued for long term.

You can invest in the following mutual fund schemes equally:

  • Axis Bluechip Fund (G)
  • Kotak Emerging Equity Fund (G)
  • Tata Smallcap Fund (G)
  • Nippon India Value Fund (G)
  • ICICI Pru Sensex India Fund (G)
  • HDFC Gilt Fund (G)
  • Aditya Birla SL G Sec Fund (G)
  • Kotak Debt Hybrid Fund (G)

Equity mutual fund investors should think about reducing their risk through ensuring right selection of funds, professional advice, continuous tracking and rebalancing of their portfolio.

Tax saving mutual funds, also called as ELSS funds are ones that allow you a tax deduction of upto Rs 1,50,000 under Section 80C from your income slab while calculating your taxes. These funds have a locking period of three years and invest in equities.

Going by your current income bracket, you would not be required to invest in tax saver (ELSS) schemes, You may consider these funds as your income grows and it becomes taxable.

Even before you start to invest, you should consider taking term insurance and Mediclaim insurance for yourself.

Also, you should track your mutual fund’s factsheet on a monthly basis and should rebalance your portfolio whenever required.

You can also consider taking advice from a SEBI registered Investment Advisor for planning your financial goals and calculating your risk profile before investing.

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at We will get your queries answered by our panel of experts.)

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