How To Choose A Superior Return Mutual Fund…!!
An investor always eager to get higher returns, whether they invest in mutual funds, stocks or bonds and other instrument. An investor invests either of these assets depending upon their investment style, risk factor and time. Mutual Fund is one of the best mediums of investment, if you are new to the capital market. As investor always has the choice between the relative stability and long-term growth plan. It is a great idea to invest in the mutual fund, as you get the dual benefits of low-cost investing and rupee cost averaging. It has given excellent return over the past year, much to the investor delight.
An investor investing through the SIP has been able to get the benefit from market inefficiency. It is always recommended by any financial advisors to maintain a good balance of Large cap, Mid Cap and Small Cap to avoid the volatility of the equity market in the long term. An investor should not blindly follow the top performers in terms of returns of previous year, one must follow all other factors before investing.
Aligning your investment objective:
Before investing in any mutual fund, an investor must look out for their investment objective. Further an investor must look out for their respective mutual fund, which align with their investment objective. It will help you to track the progress of your investment, but also whether they are meeting your objectives or not.
Creation of own portfolio with realistic goals.
It’s better if an investor should create its own portfolio or with the help of fund manager with realistic goals in mind. There are several factors that need to be considered such as individual risk tolerance, desired returns and style of the chosen mutual fund. Historical performance is another critical aspect that helps one understand if the fund’s return is consistent with its investment thesis. One should always pick funds with low expense ratio and exit load. An investor should always look upon the fund manager profile, as well as his/her experience with the fund house.
So, before investing, an investor should have an ideal cushion of both debt and equity mutual fund. Debt funds will provide an investor the necessary cushion against any kind of market volatility, while the equity funds will provide the investor larger returns.
It is one of the top-rated mutual fund schemes, offered by one of India leading AMC’s- ICICI Mutual Fund. It is mainly an open-ended scheme which mainly invests in large cap stocks. This scheme has given more than 10% to 15% return, outperforming the Nifty 100 benchmark which has provided returns of 10% to 13.7%.
SBI Blue-chip Fund:
SBI Blue-chip fund is part of one of India’s biggest Mutual Fund i.e. SBI. This fund invests almost 80% of their capital in large cap stocks. Over the past few years, the fund has provided good returns. Overall, the performance of the SBI blue chip fund is quite good recently. More so, the expense ratio of the fund is very low- 1.97%.
Kotak Monthly Income Plan:
It is a debt oriented conservative plan and good for the conservative investor. The fund has given consistently good returns as they mainly invest in debt-oriented instruments. Most of the investment in these funds goes to government securities and bond. Historically, it has provided a return between 6 to 8%.
Mirae Asset Emerging BlueChip Fund:
Mirae Asset Emerging Blue-chip fund is mainly a mid-cap fund, which provides the investor the opportunity to invest in the emerging companies. These emerging companies have a potential to grow as a well-established company. The fund house has provided 33% annualized return in 5 years and beaten all its peers.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.