Most new mutual fund investors ask this question when they begin their investment journey. But are they easily included in the list? Would the magic list make them rich? Well, the answer is complicated.
For example, try an online search. Mostly it will take you to some website with ready-made lists. Most of the time, schemes may be shortlisted on the basis of their short-term performance. Sometimes the graphics of a class can dominate the list because that's the flavor of the season. Some may follow a faulty methodology.
Look at another scenario: friends or colleagues may provide some names, but those schemes might not be suitable for your goals and risk profile.
Some people never go beyond collecting the best names because searching for the top funds becomes their favorite hobby. Constant doubts about the correctness of names always get in the way. It's no wonder so many investors continue to visit mutual fund forums for authenticity even years after they have started investing.
That's why Business2Business.co.in decided to put together a list of the top 10 mutual fund plans. We choose two charts from five different categories: Strong Hybrid, High Price, Mid Cap, Small Cap, and Multi-Cap Schemes, which we think should be sufficient for regular mutual fund investors. There are caveats - read carefully to make sure you choose your best shot.
Here is a list of the top 10 charts:
- ICICI Prudential Equity & Debt Fund
- Mirae Asset Hybrid Equity Fund
- Axis Blue Ship Fund
- ICICI Prudential Bluechip Fund
- L&T Midcap Fund
- DSP Midcap box
- L&T Startup Fund
- Small Capital Fund HDFC
- Motilal Oswal Multicap 35 Box
- Kotak Standard Multicap Fund
Here are some tips to keep in mind when reversing these charts. First, find out which category is suitable for your investment objective and risk profile.
Aggressive hybrid charts (or pre-balanced or equity-oriented hybrid charts) are ideal for newcomers to mutual funds. These schemes invest in a combination of equity (65-80%) and debt (20-35). Due to this mixed portfolio, it is considered to be relatively less volatile than pure stock charts where the entire group invests only in stocks. Aggressive hybrid charts are the best investment vehicle for very conservative equity investors looking to build long-term wealth without too much volatility.
Note that the ICICI hedge fund has underperformed for a while, the final quarter planned for last month. It was in the third quarter before that. We are watching them closely as they are on our list of hybrid fund recommendations. We will update it every month.
Some investors in stocks want to play safe even when investing in stocks. Big hat schemes are for these people. These schemes invest in the 100 largest stocks and are relatively safer than other mutual fund programs. It is also relatively less choppy than medium and small hedge charts. In short, you should invest in large-cap schemes if you are looking for modest returns with relative stability.
The average equity investor (someone with a moderate appetite for risk) looking to invest in the stock market needs to look no further than multi-capital mutual funds or diversified stock plans. These schemes are invested in market capitals and sectors, depending on the point of view of the fund manager. A regular investor can benefit from the rise in any of the sectors and share classes by investing in these charts.
What about bold investors looking to earn additional returns through additional risk? Well, they can bet on lists of medium and small companies. Midsize capital schemes invest primarily in midsize companies and small funds invest in smaller companies by market value. These charts can be volatile, but they also have the potential to offer higher returns over a long period of time. You can invest in these types of mutual funds if you have a long-term investment outlook and an appetite for the increased risk.
Looking for SIP mutual fund portfolios to start investing and building wealth over a long period of time? Here are our SIP mutual fund portfolios that we recommend for three different risk profiles (conservative, moderate, and solid) and three different baskets of SIP investments. For more information, read: Best SIP Portfolios for Mutual Funds
Finally, any search that begins with "best" is unlikely to provide you with a better solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile.
If you don't understand these basics or are completely new to mutual funds and investing, you should always seek the help of a mutual fund advisor.
Note that some of these charts on the recommended list may underperform for a time. They are also part of our recommendations in their respective categories. We monitor these charts closely and update their performance every month as part of our monthly updates.
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