As the market scales new peaks, mutual fund investors are left wondering if their fund portfolios will deliver in the future. The high valuations pose a dilemma for both new investors and regular SIP investors. For instance, if you are looking to invest a large sum, then a diversified equity fund may not be the right choice. These funds will deliver higher returns than pure debt funds, but will be less volatile than pure equity funds, as they invest in debt and arbitrage instruments. For a slightly long time horizon of say, 4-5 years, a dynamic equity fund would be a better alternative to a traditional equity scheme, Chauhan adds.

Source: Economic Times July 24, 2017 00:56 UTC