Many people who have never invested in mutual funds plan to start in the new year. If so, how long have you been investing in a mutual fund? If so, don’t start your investments with a search on the internet for “top 10 mutual funds.” A lot of new mutual fund investors ask this question when they start investing. They ask their friends and coworkers or some mutual fund forums about it, too.
SOURCE: IPO INFO
But the search for the best schemes has a lot of problems. To understand why to read this.
There are some websites that have already made lists for you to look at. Most of the time, schemes are chosen based on how well they did in the short term. In some cases, only one type of scheme might be at the top of the list because that’s what people are interested in at the time. Some people may use a bad method.
Some people don’t go any further than collecting the names of the top funds because looking for the top funds is their favorite thing to do. A doubt about the truthfulness of the names always stops them from going to see the show. For this reason, many people keep going to mutual fund forums for years even after they start investing.
To help people find the best mutual fund schemes, ETMutualFunds came up with a list of the top 10 of each fund type. Two of the five different types of equity mutual funds that we have chosen are aggressive hybrid, large-cap, mid-cap, small-cap, and Flexi cap schemes. We think that these types of funds should be enough for most people who invest in mutual funds. Read to the end to make sure you pick the best scheme for your needs.
Here is the list of top 10 schemes:
1. Axis Bluechip Fund
2. Mirae Asset Large Cap Fund
3. Parag Parikh Long Term Equity Fund
4. UTI Flexi Cap Fund
5. Axis Midcap Fund
6. Kotak Emerging Equity Fund
7. Axis Small Cap Fund
8. SBI Small Cap Fund
9. SBI Equity Hybrid Fund
10. Mirae Asset Hybrid Equity Fund
People who want to invest in these schemes should think about these things before they do it. Find out about each category and see if it fits your investment goal and risk level.
People who are new to equity mutual funds should invest in aggressive hybrid schemes, which used to be called balanced schemes or equity-oriented hybrid schemes. 65% to 80% of these schemes invest in stocks and bonds (20-35). Because they have a mix of stocks and bonds, they are thought to be less risky than pure equity schemes. If you’re a very conservative equity investor who wants to build long-term wealth without a lot of risk, aggressive hybrid schemes are the best option for you.
Some people who invest in stocks also want to be safe. Large-cap schemes are for people like this. This means that these schemes invest in the top 100 stocks. They are safer than pure equity mutual fund schemes. They are also less risky than mid-cap and small-cap schemes. You should invest in large cap schemes if you want to make a little money but also keep your money safe.
Flexible cap mutual funds are not the only way to invest in the stock market if you are a regular equity investor who doesn’t want to take a lot of risks ( or diversified equity schemes). Each fund manager chooses which stocks and sectors to invest in based on his or her own opinion. If you are a regular investor, you can make money when stocks rise in any of these schemes.
What about people who want to make more money by taking more risks? How about mid-cap and small-cap schemes? Mid-cap schemes invest mostly in medium-sized businesses, and small-cap funds invest mostly in smaller businesses in terms of market capitalization. This is how they are different from small-cap funds. These schemes can be risky, but they also have the chance to make more money over a long time. You can invest in these mutual fund groups if you have a long-term investment horizon and are willing to take on more risk.
Finally, any search that starts with “best” isn’t likely to give you the best answer. You should always pick a scheme that fits your investment goal, time horizon, and risk tolerance.
The best thing to do if you don’t understand these basic mutual fund ideas or if you’re completely new to mutual funds and investing is to ask for the help of a mutual fund advisor.