Which is a good mutual fund to invest a small amount

Good to hear that you want to start investing in mutual funds by investing a small amount. However, you have not mentioned your risk profile and the investment horizon. We suggest that you should always invest in mutual funds based on your risk taking ability and the investment horizon even if the amount is small.

In absence of the above two information, we are giving below some scheme names based on few risk profiles and the investment horizon. You can choose the appropriate schemes from different categories based on your risk profile –

Moderate risk profile – You can invest in a mix of balanced funds and large cap funds. From Balanced Funds, you can consider investing in ICICI Prudential Balanced Fund, DSP BlackRock Balanced Fund, Reliance Regular Savings Fund Balanced option and DSP BlackRock Balanced Fund.

From Large Cap funds, you can consider to invest in SBI Bluechip Fund, Birla Sun Life Frontline Equity Fund and Kotak Select Focus Fund.

Moderately high risk profile – Diversified equity funds can be considered. Birla Sun Life Advantage Fund, Mirae India Opportunities Fund and SBI Magnum Multi-Cap Fund are some of the good funds in this category.

High risk profile – You can consider investing in Mid & Small Cap Funds. For example – Mirae Asset Emerging Bluechip Fund, Birla Sun Life Pure Value Fund, Reliance Small Cap Fund and L&T India Value Fund.

As mentioned earlier, you can choose schemes as given in the respective risk categories or may even consider investing in a mix from the large cap, balanced, diversifies and mid & small cap categories based on your understanding of the risk. However, for investing in any of the categories, your investment horizon should be minimum 5 years.

You may contact a mutual fund advisor in your city who might help you with your investments.

Hope the above helps! Thanks for writing to Advisorkhoj !!