I want to invest Rs30,000 in an equity fund for a lock-in of two years. Please suggest a lucrative fund with a higher rate of return and more risk factors.

Shivaram Vishwanathan

You may choose to invest in Sundaram BNP Paribas SMILE Reg or Reliance Regular Savings Equity fund for the time period mentioned by you.

It is difficult to say which is the most lucrative fund, but going by the portfolio and analysis of past performance, these schemes look good.

I have two questions. First, I want to invest in State Bank of Mysore, State Bank of Travancore and State Bank of Bikaner every month in a systematic way. Please advice. Second, I have got 100 shares of Fortis Health at Rs86. I have got an offer from the company to subscribe to a rights issue for 40 shares or more at Rs110 a share. Please advice on whether I should subscribe to it.

Harpreet Sahni

Regarding your first query, I think there are better options available. However, if you have decided to invest in these for your own reasons, then you may set aside a sum and plan your investments for the short term only.

Regarding your second query, I think it may not be a great idea to invest in this stock, basically for two reasons.

First, the current market price is below the offer price. Second, post-listing of rights shares, there would be equity dilution and prices would adjust downwards. So you may avoid this issue.

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