The Best Mutual Funds to invest your money in and enjoy high returns
Posted: May 03, 2016
Investors who are keen to see their wealth grow over a long period of time should invest in top performing Mutual Funds. The expertise of Fund Managers helps one decide on the most ideal mutual funds. The CRISIL rating of the preferred funds, their past performances, the level of risks involved and one’s personal objectives also must be given due consideration.
At the very start, Investors must have a clarity about the objectives of investing in long-term mutual funds. They must assess their financial status and needs at the time of their investments and should realise that their funds will be locked-in for a long term.
Seeking the help of Fund Managers, experts in this domain, will augur well for investors. Fund Managers often guide investors to invest in SIP Mutual Funds as the money is allocated proportionately across securities in a manner that protects the investments from economic upheavals.
Investors must have a grip of how to keep a constant vigil over their investments and also understand the timing of switching investments from one Fund to another if the occasion so demands.
Investors need to be mature enough not to take irrational decisions in the event of a volatile economic situation and redeem their funds. Mutual Funds always generate interesting returns in the long run.
Some of the best performing Mutual Funds (SIP Large Cap) are:
- SBI Blue Chip Fund
- UTI Equity Fund
- UTI Top 100 Fund
The above funds invest more than 75% in Large Cap stocks and are defined as Large Cap Funds. The average annual rate of interest per annum is 17.1%.
Best performing Large & Mid Cap Funds:
- Franklin India Flexi Cap
- BNP Paribas Equity
- Franklin India Prima Plus
The above funds have maintained an average annual return of 15%
Best Mid and Small Cap Funds:
SBI Magnum Mid CapFranklin India Smaller Companies FundBNP Paribas Mid Cap Fund.
The above have delivered a consistent average return of 29% in a year.
Funds which involve investing at least 65-80% in equity and the remaining in debt are defined as Balanced Funds. Some of the top performers which have shown a continued annual return of 14% in one year are:
- HDFC Balance Fund
- SBI Magnum Balance Fund
- TATA Balance Plan A
ELSS Mutual Funds give investors tax benefits under Section 80C of the Indian Income Tax Act. The average return of 21% in a year given by some of the top performers in this category include:
- Axis Long-term Equity Fund
- Franklin India Tax Shield Fund
- IDFC Tax Advantage Fund
Mutual funds which invest in government bonds, corporate deposits and fixed deposits are known as Debt Income Funds. These are best suited for cautious investors.
Top performers in this category are:
- Franklin India Income Opportunity Fund
- Tata Dynamic Bond Fund Plan B
- ICICI Prudential Long-term Fund
Being a successful mutual fund investor, author speaks about how Mutual Fund's sip helps people to invest less and earn more in this article. This article highlights the systematic investment plan calculation methods to make more money within