I have a teenage son who is very bright. I want to invest for his studies. Can you suggest any funds that will help give me good lump sum money for his college expenses?

Considering your son is in his teens, you must focus on investing in a way that protects your capital. This is because with only a few years before you son enrols into a college, you can’t afford to take risks with the money you accumulate for your son’s education.

Hence, limit your equity exposure to 10-15% and invest the rest in debt-funds that are relatively safer than equity funds.

This shift from growth in wealth to capital protection is critical as the 3-4% extra that equity investments can potentially give is not worth the risk. A sudden downturn in the equity markets can reduce your corpus by 5-6% and upset your financials.