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Top mutual funds to invest in large cap and mid cap stocks
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Synopsis
Every week, guest experts answer queries from readers of ET Wealth on various topics ranging from tax to investments to insurance and more.
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I want to invest Rs 5 lakh in a lump sum but am not able to decide if it should be in the equity market or a simple LIC endowment plan. Please advise.
Naveen Kukreja, CEO and Co-Founder, Paisabazaar.com, replies: Choose equity mutual funds over endowment plans. Typically, endowment plans have a policy term of over 10 years and the rate of returns generated over such a long term, including various bonuses, have been significantly lower than that generated by well-performing equity mutual funds. Over the long run, you should be able to generate a much larger corpus through equity mutual funds than endowment plans or fixed income instruments. The liquidity offered by equity mutual funds is also much higher than endowment plans. Plus, one should always keep their investment and insurance needs separate. If you do not have ad