<p>SIP in equity mutual funds could be most suitable for him. Since his time horizon is long, he can adjust to the volatility of returns. Also, since he is contributing to EPF and have term insurance cover, any potential risk could be managed better.</p>
<p>Avoid sector funds. Don’t give 100% small cap. It’s better to have a mix of multicap, midcap and may be a small amount in small cap funds.</p>
<p><strong><em>Disclaimer:&nbsp;</em></strong><em>Every investor is different. There could be multiple solutions to the same case. Apply your own judgement and prudence.</em></p>