What are the low-risk equity funds for investing as a student?

Siya

Hi

I am a 3rd year student. I am currently earning 15k through freelance work. Now I want to invest this money. I know that the risk factors involved in PPFs and FDs are very low, but they also have very low returns. And I want some good, decent returns. So suggest me where I should invest. Should I invest in stocks or in mutual funds, as I don’t want to put my money at risk?

Ritika

Mutual funds are the best option for you at this age compared to direct stocks. Mutual funds give you better growth and have a low risk factor, and it is better than FDs or PPFs. You can start with a SIP in a diversified equity mutual fund, which can help you grow your money over time.

Kiara

I wanted to start investing in mutual funds with a 7K SIP right now. Which is the best approach? Should I diversify this in 4–5 funds or in the same fund I should invest in? I don't want to take more risk. And in which funds should I invest?

Siddarth

@Kiara It's always better to diversify your funds to get better exposure to different sectors and a low-risk factor. So you should definitely diversify your SIP into different mutual funds.

The best funds to invest right now are:

Large-cap equity funds.
Flexi Cap Funds.
Hybrid funds.

All these funds will give you stable growth on a low-risk basis.