Top 10 mutual funds to invest
Here is a list of top 10 mutual fund schemes handpicked by ET Mutual Funds.
However, an online search would often take them to online sties which list mutual fund schemes based on their performance over a very short period. Sometimes, schemes from a single category may dominate the list because it is the flavour of the season. In short, most of these questions and searches are in vain. Even if one finds a list that looks appealing, the conviction is very low. No wonder, many investors keep wondering whether they picked up the right schemes even after investing in them for a few years.
That is why ET Mutual Funds decided to come with our own list of Top 10 mutual fund schemes. We have picked up two schemes from five different categories -- large and mid cap, multicap, value, ELSS or tax saving schemes and aggressive hybrid schemes – which we believe should be enough for regular mutual fund investors. Here is the list of schemes. For more details look at the table below.
- ICICI Prudential Equity & Debt Fund
- Motilal Oswal Multicap 35 Fund
- L&T Tax Advantage Fund
- ICICI Prudential Bluechip Fund
- SBI Magnum MultiCap Fund
- Aditya Birla Sun Life Tax Relief 96
- L&T India Value Fund
- SBI Bluechip Fund
- DSP Equity Opportunities Fund
- Mirae Asset Emerging Bluechip Fund
Equity-oriented hybrid schemes or balanced schemes are also ideal for novices to the stock market. These schemes invest in a mix of equity (minimum 65 per cent) and debt, and they are relatively less volatile than pure equity schemes that invest the entire corpus in stocks. Equity-oriented hybrid schemes are the best investment vehicle for investors looking to create long-term wealth without much volatility.
A regular investor looking to invest in the stock market need not look beyond mutlicap mutual funds or diversified equity schemes. These schemes invest across market capitalisation based on the view of the fund manager. They invest mostly in largecap and midcap stocks, with a small allocation to smallcap stocks. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these schemes.
Some investors want to play extremely safe even while investing in stocks. Largecap schemes are meant for such individuals. These schemes invest in top 100 stocks and they are relatively safer than other stocks. They are also relatively less volatile than midcap and smallcap schemes. In short, you should invest in largecap schemes if you are looking for modest returns with relative stability.
What about aggressive investors looking to take extra returns by taking extra risk? Well, they can bet on midcap schemes that invest mostly in medium sized companies. These schemes can be a bit volatile, but they also have the potential to offer superior returns over a long period. You can invest in midcap schemes if you have a long-term investment horizon and an appetite for higher risk.
Looking for an equity mutual fund SIP portfolios to start investing to create wealth over a long period? Here are recommended equity mutual fund SIP portfolios for three different risk profiles - conservative, moderate, aggressive - and three different basket of SIP investments. For more, read: Best mutual funds to invest in 2018.