Are you looking up the "top 10 mutual funds" online? When beginning their investment adventure, the majority of new mutual fund investors pose variations of this question to friends, coworkers, or in certain mutual fund communities. But looking for the best plans frequently causes investors more confusion. Don't misunderstand us. Let's elaborate.
Most of the time, an internet search would direct you to websites that already had lists created. The majority of the time, the schemes may be shortlisted based on how well they perform immediately. Sometimes, because a particular category is currently popular, the schemes from that category may dominate the list. Some people might use a bad method.
Some people stop at gathering the names of the best funds since finding the best funds has become their favourite past time. They are constantly held back by a nagging scepticism regarding the validity of the names. It seems sense that many investors frequent mutual fund forums years after they begin investing in search of approval.
ETMutualFunds made the decision to provide a list of the top 10 mutual fund schemes in light of this. We believe that two of the five categories of equity mutual fund schemes we have chosen—aggressive hybrid, large cap, mid cap, small cap, and flexi cap schemes—should be sufficient for regular mutual fund investors. There are warnings, so make sure you choose the best plan for you by reading all the way through.
Here is the list of top 10 schemes:
- Axis Bluechip Fund
- Mirae Asset Large Cap Fund
- Parag Parikh Flexi Cap Fund
- UTI Flexi Cap Fund
- Axis Midcap Fund
- Kotak Emerging Equity Fund
- Axis Small Cap Fund
- SBI Small Cap Fund
- SBI Equity Hybrid Fund
- Mirae Asset Hybrid Equity Fund
You should bear the following advice in mind before investing in these programmes. Learn more about each category first, then decide if it fits your risk tolerance and investing goals.
For people new to equity mutual funds, aggressive hybrid schemes—also known as former balanced schemes or equity-oriented hybrid schemes—are the best option. These programmes invest in a combination of loan and equity (65-80%). (20-35). They are seen as being significantly less volatile than pure equities schemes because of their mixed portfolio. The greatest investment vehicle for extremely cautious equities investors wanting to build long-term wealth without much volatility is an aggressive hybrid plan.
Even when investing in equities, some equity investors prefer to be safe. Such people are the target audience for large cap schemes. These mutual fund schemes are somewhat safer than other pure equities mutual fund schemes since they invest in the top 100 stocks. Additionally, they have a lower volatility than mid-cap and small-cap schemes. In conclusion, if you want to invest in large size schemes and find moderate returns with some consistency, you should.
Regular equity investors (those with a moderate appetite for risk) looking to make stock market investments don't need to look past flexi cap mutual funds. These plans invest across sectors and market capitalizations according to the fund manager's judgment. By investing in these plans, a regular investor can take advantage of the upward trend in any of the industries or groups of stocks.
What about risk-taking investors who are hoping to earn higher returns? They may wager on midcap and smallcap projects, I suppose. In terms of market capitalization, mid cap schemes often invest in medium-sized firms whereas small cap funds do the same. These strategies have the potential to provide higher returns over a lengthy period of time, but they can also be volatile. If you are willing to take on more risk and have a long-term investment horizon, you can invest in these mutual fund categories.
Finally, it's improbable that any search that begins with "best" would provide you with the finest answer. Always pick a plan that aligns with your financial goals, time horizon, and risk tolerance. Always seek the advice of a mutual fund advisor if you are completely new to investing or if you do not understand the fundamentals of mutual funds.
