Sir, I am new to mutual fund investment. Some news paper articles draw my attention…I searched on net and found your articles most reliable. Since then I have been following you. RISK, I mean diversified equity funds from 5 different fund houses where I wish to SIP about 2000/- each per month. please correct me if I am wrong.
Priyam-Forget about what newspaper articles showing. First understand your requirement and financial goals. Understand your expected return. Never ever think that if the fund is currently giving returns of around 20% or 30% means it will be same for future. Also, these star ratings change frequently. Hence, don’t depend on their research.
Coming back to your investments, whether the basic things are at place? Like, term insurance, health insurance, accidental insurance or emergency fund. Once these are place, then try to identify your goals. Enter into equity if your financial goals are long term in nature like 5+ years. Regarding funds, they are already listed in my blog. You can start investing. Do remember that don’t invest all your investable amount into equity. You must at least manage equit:debt in ratio of 70:30.