Taking a call on lumpsum investments for 10 years, one can essentially invest in large cap and equity diversified funds, advises Harsh Roongta, CEO of apnapaisa.com. According to him, balanced funds like HDFC Prudence or a Reliance Regular Saving Balanced Fund would be best if the investor is looking for a 5 year term.
Below is the edited transcript of the interview on CNBC-TV18. Also watch the accompanying video.
Q: Investor can invest Rs 30,000 as lumpsum in mutual funds. He doesn't have health insurance. He has been insured through his company. He earns around Rs 10 lakh per annum. How should he allocate the money?
A: With the kind of income that you have, unless you have a lot of assets, the Rs 60 lakh cover that you have is not sufficient. You probably need to enhance that to about a crore or so and obviously you know the way to do it is through an online term plan clearly.
As far as this Rs 30,000 lumpsum is concerned, you have a long-term view. If you have a 10