Once they make up their mind about investing in equity mutual funds after months of procrastination, many investors stumble on the next hurdle: which equity mutual fund should they invest.Should I invest in small cap schemes that have superb returns in the last year? Is there a common sense approach to cross this hurdle?Well, many investors come across Equity Linked Savings Schemes (ELSS) or tax saving/planning mutual fund schemes during their year-end tax-planning exercise. It is their first encounter with an equity mutual fund scheme.According to mutual fund advisors, it is the best possible introduction since ELSSs have a major advantage over other equity schemes. This strategy will also boost returns from them.In short, ELSS is a worthy candidate to be your first equity mutual fund. So, it is better to go for 100 per cent equity, with a safety net.Largecap schemes invest in very large companies.

Source: Economic Times November 10, 2016 10:39 UTC