Best Mutual Funds to Buy
Mutual Funds - An enviable channel for long-term investments!
The high standard of living has rung many an alarm bell in Indian households to invest their money for increased growth of capital in the years ahead. While property remains an undisputed investment, it doesn’t serve other purposes of a family’s needs. These could be financing the higher education of their children, additional expenses of aged parents as well as a host of other family-related expenses.
Mutual Funds have become a preferred choice for investments despite the high risk accompanying them because they assure long term appreciation and maximum returns. The different types of Equity Funds include:
- Small Cap Equity Funds – Small capitalization of more than $300 million & less than $200 million
- Mid Cap Equity Funds – Investments to the tune of $2 billion- $10 billion are made in mid-size companies
- Large Cap Equity Funds – Capitalization of more than $10 billion
Mutual Funds allow you to invest with small amounts and enjoy high returns. The Fund Managers assist you to invest your money in diversified portfolios which minimize the risk element and assure you attractive returns despite any sudden anomalies in the economy.
The Systematic Investment Plan (SIP) in Mutual Funds helps secure your future in an arresting manner. You have to make a mandatory investment of a pre-determined amount at regular intervals which could be weekly, monthly or every four months.
Some of the best Mutual Funds to buy are the ones which are rated by the CRISIL Mutual Fund Rankings Methodology. The ratings are based on the premise of various factors viz; liquidity, asset size & quality, concentration and the risk-adjusted returns. Any scheme ranked at the No. 1 position is an affirmation of extremely good performance.
Some of the Large-Cap industries you can choose from are:
- BNP Paribas Equity /fund (Growth)
- Franklin India Oppor. (G)
- Kotak Select Focus Fund – Regular (G)
- SBI Blue Chip Fund (G)
Small & Mid Cap industries:
- DSP-BR Micro Cap Fund (G)
- Mirae Engineering Bluechip Fund (G)
- Reliance Small Cap Fund (G)
Diversified Equity:
- L&T India Value (G)
- UTI MNC Fund (G)
- ICICI Pru Value Discovery Fund (G)
These are a few amongst many others which are ranked as No. 1 by CRISIL.
You can also buy Balanced Mutual Funds (L&T Prudence Fund) – Growth, SBI Magnum Balanced Fund (G) and Debt Long Term/Debt Short Term, Ultra Short Term Debt/ Gilt Long Term/ MIP Aggressive and Liquid.