11 Replies to “I want to invest rs 5000 in mutual funds.so which mf will be good.This is first time i am starting investing.?”

  1. Invest in Nationalized Banks such as Indian Bank, State Bank etc.,. The money will be safe. You can also save money in Recurring deposit

  2. There are a number of websites that can offer professional advise. Before you jump in I strongly recommend that you check out “who”is managing the fund and analyse the track record in terms of growth verses return against other MF’s in the market. If its over-performing then yoiu need to look at the diversification of how the funds are being placed.

    As a rule to first time investing, always invest in a low risk fund that normally invests in CDs and treasury notes with a yield of 5% per annum. Beware if the terms and conditions though cause you might pay a penalty if you cash in early.

    best of luck and good day!

  3. If you are investing for the first time… just a piece of advise…!!
    If you are a salaried employee, it makes sense that you invest in a tax saving mutual fund, since you get the benefit of a tax rebate as well as better returns.
    Given the current stock market scenario i would recommend you invest in “Magnum Tax Gain Scheme” fund.
    This year they have declared a 110% dividend, and have shown consistent performance over the last few years.
    The other Tax saving mutual funds being “HDFC Tax Saver (D)” and “Birla Tax Relief 96” funds.
    To get an in-depth knowledge on Mutual Funds log on to http://www.moneycontrol.com or http://www.sharekhan.com.

  4. Sorta wait a bit. Things are going down in price. Ultimately, look for expense ratios and fees. No-load and low expense ratios give a better return. Look around at how the mutual fund is distributed %stock %bond…. More bonds the less volitile, for the most part. what companies they are investing in like AT&T or Nestle… I can’t tell you but I can give you something to look for. $ 5,000 is just enough to start one mutual fund balance. Also, look at the dividends it gives. Good Luck to you!

  5. Hi,
    If you could have given some more details it would have been better. Normally salaried people go in for mutual funds with tax savings option. This may not be the best mutual fund. But the thing is that it offers tax savings is important. among all the tax savings form mutual funds are the best. I my self have few varieties of mutual funds. Last year I took HDFC’s tax saver mutual fund, it gave me close to 20% returns for one year. So i would say that you can go in for that or for Franklin Templeton. though i don’t have it but I heard that it is also doing good. if you are not looking at it for tax purpose then you can even go in for SBI’s mutual funds. But just don’t go in the figures provided by the agents. As they are not really correct. icici’s mutual funds are also doing good if you want to consider that you can go for that.

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