InvestorQ : How about investing in SBI focused Equity fund?
Anusha Savla made post

How about investing in SBI focused Equity fund?

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IIFL Expert answered.
1 month ago
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It is not a good idea to randomly pick a mutual fund scheme for investing. Key information such as risk profile, investment horizon, and financial goals for which the investment is being planned is missing in this case. It is also not known if the investor is new to the equity markets or an expert in investing.

Please note that focused equity funds generally adopt a concentrated approach for generating returns for their investors and therefore they carry high risk. Thus this category is recommended to those experienced investors who have a high-risk appetite with an investment horizon of at least 5 years. However, in this case, if the investor is new to equity investing or has just started to invest, it is recommended to start with index funds and /or hybrid category funds such as:

UTI Nifty Index Fund – Growth

ICICI Prudential Balanced Advantage Fund – Growth

Thus an investor with a higher risk appetite and an investment horizon of at least 5 years only should look to invest in equity or equity-oriented mutual fund schemes. However, before that, the investor is advised to undergo a risk profiling exercise and choose the investment instruments suitable to his / her risk profile, investment period, and realistic financial goals of life.
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