Wondering which mutual fund to invest in? Learn why and how to select the best performing mutual funds to meet your investment objectives.
Today, mutual funds have become a popular investment avenue and a preferred choice for people in India. It is because mutual funds get professionally managed and have been fetching attractive returns from the past two decades for the investors. The mutual fund performance is continuously monitored by the fund managers to ensure fund performance and get lucrative returns for the investors. Picking the right mutual fund is like picking the right life partner. A wrong selection might leave you stressed and wipe out your wealth. Moreover, market volatility makes it even more difficult to measure the performance of the mutual fund. People want to invest in a good mutual fund scheme or a few good ones that will give them the best returns on their investments. Though many investors place a lot of importance on "good schemes", most of them have no clue what makes a good mutual fund scheme. It is wise to emphasise on the right scheme instead of a good scheme.
Mutual fund companies often advertise funds that have performed well recently. They may give little consideration to where the fund invests in, what risks the portfolio took to achieve those returns and how the fund may fit into your investment plan. You should always start by applying a simple screening process to narrow down the available choices. This helps to ensure that the mutual fund scheme that you consider is aligned with your investment goals and risk-return expectations.
Below listed are the four criteria that you should be looking at before selecting the best performing mutual funds.
A mutual fund is still a financial product that is not considered safe as per many Indian investors. The delayed returns and fear of losing money makes mutual funds a scary mode of investment for some people. However, the truth is far from reality. While it is a fact that mutual funds are not completely risk-free, it doesn’t mean you will lose your money. There are specific reasons why some people lose money in mutual fund investments.
It is not possible to entirely avoid risk when you are investing in mutual funds, be it equity or debt. However, you can make risk tolerable by selecting the right mutual fund scheme. All you need to do is choose schemes that match your investment goals, risk profile and investment horizon. It may sound like a simplistic approach, but it has helped many investors to create wealth to meet their long-term goals.
Which are best performing mutual funds? Or which are best mutual funds in India? Many new entrants who want to start investing in mutual fund, begin their investment journey with a similar query.
It is advisable to invest in a multi-cap fund which invests across all market capitalisation. Invest in growth option and avoid investing in dividend option to let your investment grow over a period of time. Aggressive hybrid schemes are one of the best investment options for very conservative equity investors looking to create long-term wealth without much volatility.
Below is the list of best performing mutual funds to invest for 10 to 15 years’ horizon.
You may be confused and may have multiple questions when you invest in a mutual fund. However, mutual fund investments are not as difficult as it is often considered to be. All you need to do is to keep in mind a few tricks. It is important to stay active, not just at the time of selecting the best performing mutual funds, but throughout the term of the investment.
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