high return mutual funds

Grab the Benefits of the Market!!! Invest in Mutual Funds!

The sudden hit of Sensex beyond the milestone index of 60,000 has become the buzzing matter among Indian investors. The consistency in growth and return in several stocks, bonds and mutual funds has increased the probability of a less volatile and stable market in which the investors can believe. After the trauma of the 2nd wave of COVID 19 in India, the market is gaining its strength. So, it is high time to grab the benefits of the market through investing in several schemes of mutual funds.

We know very well that mutual fund investments are subject to market risk. When the market provides a consistent return, so many investors refrain from investments from the fear that the market might fall again. On the other hand, there are prospective investors who choose a bull market to invest in because a bull market ensures that the condition of the economy is favourable and the market has more potential to rise.

The Sensex index hit 61,305.95 today (14 October 2021) at the end of the week. It crossed the historical index of 60,000 for the first time on 24 September 2021, less than a month ago. In the meantime, it has fallen for a few days but it came back once again and is on rising till the date. The present scenario proves that the Indian market has regained its stability. The small and medium cap companies (as per the present market capitalisation) are rising almost simultaneously with the large-cap companies.

Mutual Fund is the most reliable way when you think of flexibility and high return simultaneously. Despite the volatile market during the COVID 19 phase in 2020 and 2021, most of the funds proved themselves capable enough to fight in any hard situation. Even there have been few funds that we’re able to secure more than 50% annual return. So, one thing is very clear, mutual funds were able to scatter the risk factor when the market was volatile. Because the mutual fund portfolio follows diversification so that the investors get a standard return even when there is a bear market.

So, it is quite clear that mutual funds are able to bring you high returns in the bull market. The market is able to provide you with a post-positive return in this condition. Market’s staying with the historical index of 60,000 for a longer period assures you the probability of handsome return in the coming period of time. To be able to catch the benefits of the market, we may consider the following while investing:

Invest in mutual funds rather than stocks. When you have a chance to lose capital for a specific stock, mutual funds comparatively lower the risk factors through diversification.
Invest for the long term. at least for a three years’ locking period for a desirable return.
Though most investors invest in equity mutual funds, it is better to keep 20-30% of your investments in other funds like focussed funds, hybrid funds, or debt funds.
Determine your risk appetite and investment horizon wisely before choosing any fund.
Read fund related documents carefully before you proceed with investments.

You can grab the benefits of the market when you invest sensibly and wisely. To determine the level of benefit you can get from the present market a sincere study on the market condition of the present and the past is essential. You may consult an AMFI registered mutual fund distributor for more information.

Top 5 Equity and Debt Mutual Funds in the Present Market

Top 5 Equity and Debt Mutual Funds

Equity mutual funds are very popular to the present days’ investors for the flexibility of the schemes, funds’ liquidity, high return possibilities and so many other reasons. On the other hand, debt mutual funds are trusted by the investors for the security and consistency in return. Determining the top 5 equity and debt mutual funds in the present market condition depends on several factors. Only a short term return does not evaluate the quality of a mutual fund to be on the top. Otherwise, the top 5 equity funds can not be compared with the top 5 debt funds because the return and risk factors of both the funds are completely different. You need to determine what are the top 5 funds according to your investment goal, and risk appetite. If you want to diversify your investment portfolio, you may have a glance at all the funds that top the lists.

We have prepared separate lists of the top 5 equity funds and debt funds according to their category so that you can easily find the best one for you. For choosing the top five funds in the lists, we have considered few factors like CRISIL ranks (only 4 & 5 rated funds are chosen), AuM, consistency of their return in the last five years, etc. Investors are always encouraged to invest in different types of funds according to their investment goals, risk appetite for maintaining a diversified investment portfolio.

Top 5 Equity Mutual Funds

Sl. No	Equity funds	CRISIL Rank	AuM (Cr)	1 year return	3 years’ return	5 years’ return
1	Mirae Asset Emerging Bluechip Fund – Direct-(Large & Mid Cap Fund)	5	20,615.27	68.02%	25.41%	22.77%
2	Quant Active Fund – Direct Plan – Growth (Multi Cap Fund)	5	1050.80	82.64%	30.82%	24.78%
3	Canara Robeco Bluechip Equity Fund – Direct Plan – Growth (Large Cap Fund)	5	4,271.67	54.08%	61.68%	18.90%
4	Quant Tax Plan – Direct Plan – Growth (ELSS)	5	368.44	89.62%	32.54%	25.13%
5	SBI Focused Equity Fund – Regular Plan – (Focused Fund)	4	19,429.10	63.27%	21.42%	18.97%

Top 5 Debt Mutual Funds

Sl. No	Debt funds	CRISIL Rank	AuM	1 year return	3 years’ return	5 years’ return
1	Aditya Birla Sun Life Banking & PSU Debt Fund – Regular Plan – Growth (Banking and PSU Fund)	4	18,124.91	5.91%	8.98%	7.76%
2	Sundaram Banking & PSU Debt Fund – INSTITUTIONAL – Growth (Banking and PSU Fund)	4	998.30	3.79%	7.79%	6.85%
3	Nippon India Corporate Bond Fund – Direct Plan – Growth (Corporate Bond Fund)	5	3,861.90	7.19%	8.30%	7.85%
4	DSP Strategic Bond Fund – Direct Plan – Growth (Dynamic Bond Fund)	5	709.09	5.57%	10.51%	7.67%
5	Edelweiss Government Securities Fund – Regular Plan – (Gilt Fund)	5	99.03	8.50%	11.89%	8.93%

Disclaimer: These lists of top five mutual funds are based on research in several factors like the CRISIL score, Asset Under Management (AuM), 1-5 years’ consistent returns and growths etc. For the convenience of the new investors, the lists of the top five have been prepared in several segments. This will help inexperienced investors to find out reliable mutual funds according to their own investment goals and risk appetite. However, this representation is on the basis of subjective findings, the lists of top five mutual funds in several segments might differ in several contexts. During the ti e of COVID 19, Market appears to be volatile in some cases, but the investors need to keep their patience for the desired outcome. You may consult an AMFI registered mutual fund distributor for experts’ advice and guidance.

*Information as of 17 September 2021

*Source of data: moneycontrol.com

Best Performing Mutual Funds in the Present Market

Best Performing Mutual Funds

Mutual funds being the buzzing words in the investment market, everyone seeks to find the best performing mutual funds. But the concept of the best performing mutual funds does not depend on a single factor; an investor needs to verify a few essential things to determine which mutual fund is performing well in the market. Apart from verifying the percentage of return in the last few years, a company’s profile, number of schemes, and its Net Asset Value (NAV) are equally important. The following things become determining factors for assessing best performing mutual funds in the market.

CRISIL Rank: CRISIL rank is globally recognized for evaluating a mutual fund’s performance in all segments. CRISIL rank depends on the factors like scope of return, nature of the portfolio, volatility, quality of assets, risk factors, liquidity analysis, etc. After analyzing all such factors over a period of three to ten years. Rating is given between 1-5, the more a company is rated, the more a company is supposed to be worthy of investment. The top 10% of companies that perform well in all segments are rated 5; whereas the 10% from the bottom line are rated 1. Some of the 5 & 4 rated top-performing funds* in the present mutual fund market are Mirae Asset Emerging Bluechip Fund – Growth (5 star), Aditya Birla Sun Life Tax Relief 96 – Regular Plan – Growth ELSS (4 star), ICICI Prudential Focused Equity Fund – Retail – Growth (4 star), Edelweiss Large and Mid Cap Fund – Regular Plan – Growth (4 star), Kotak Equity Opportunities Fund – Growth (4 star), IDFC Large Cap – Regular Plan – Growth (4 star), DSP Midcap Fund – Regular Plan – Growth (4 star), Sundaram Rural and Consumption Fund – Growth Sectoral/Thematic (5 star), SBI Infrastructure Fund – Growth (4 star), etc.

Net Asset Value (NAV): Net Asset value is a parameter that an investor must check before investing in a mutual fund. Total assets controlled by an Asset Management Company is known to be Asset Under Management (AuM). NAV is determined by subtracting the price of total assets minus the total liabilities and then divided by the number of units. The NAV, as well as AuM of an AMC, gives an idea about the present market value of the fund. For instance, the total Asset Under Management of Mirae Asset Emerging Bluechip Fund – Growth (as of 27 August 2021) is 19,567.86 and it says that it is a large fund to invest in.

Return: Return is the most important thing for investment and it is the only factor that we seek. Mutual fund returns are subject to market risk, but a sincere investigation about a scheme and its past performance help to overcome the risk. Only seeing the immediate return is not a good idea. An investor should see the return of a mutual fund over the weeks, months, and years to see how consistent the fund is. Mutual funds providing consistent moderate returns are more trustworthy than mutual funds having big ups and downs. The diversity of a fund scatters the risk factor and provides a comparatively consistent return over the period. A mutual fund investing in equity or debt is prone to more risk than a mutual fund that combines equity and debts in its fund.

This guidance will help the new and existing investors who want to ensure the best return out of mutual fund investments. Return in the Mutual Fund during this COVID 19 situation might be volatile. But the investors are advised not to lose hope because India is bravely fighting back with the situation. Otherwise, you can gain when you invest online in any fund during this situation if you follow a few strategies. For real-time guidelines and for getting a platform to invest in best performing mutual funds in the present market, you may consult with an AMFI registered mutual fund distributor.

*source: moneycontrol.com

How to choose the best SIP plans?

How does an SIP work?

Mutual Fund investment has become accessible to all types of investors due to its flexibility and variety of schemes. Systematic Investment Plan (SIP) is one of the popular investment plans among mutual fund investments. Through the SIP scheme of a mutual fund, an investor invests a fixed amount in fixed intervals. Mutual funds create a common portfolio with an amalgamation of equity, stocks, bonds, securities of different types as per the present market condition. Then it divides the investment value among the investors into different terms as per the financial capabilities of investors. SIP is like the recurring deposits in public and private banks. But the difference is that you count a fixed annual interest rate (generally 5-8%) when you invest in banks’ recurring schemes. In SIP, your return might be much higher than the banks’ recurring scheme as per the market condition. There is a risk factor too in SIP, but the skilled professionals engaged in mutual funds try to get the best return from the market.

When you invest online in SIP of a mutual fund, a fixed amount is deducted from your bank account after a fixed interval. Then you are provided with the units according to the Net Asset Value (NAV) of the mutual fund. NAV is the total asset subtracting the total liabilities of a mutual fund; it is divided among all the investors in that fund. You get additional units after every instalment paid. After a fixed tenure, you can encash your investments. You can also withdraw a portion after the lockin period. Unlike recurring deposits or fixed return plans of insurance companies, mutual fund investments bring you opportunities for more returns with a minimum risk factor. The reason behind this is that it is an almost commission-less investment, and you can manage everything online virtually.

Best SIP Plans

Which are the best SIP plans in the market? This question is a common one among investors nowadays. But the answer is not simple. Determining the best SIP plans depends on the nature of the investment, your financial capability, and your investment goal. A focus on the classification of the SIP will help you to choose the best Systematic Investment Plan (SIP) for you.

Flexi SIP & Top-up SIP: Flexible SIP plan or Flexi SIP offers you the opportunity to invest as per your financial capability from time to time. Unlike most other SIPs, you are not liable to invest a fixed amount, rather you can increase and decrease it. On the other hand, top-up SIP offers you the chance to add an extra amount to the existing amount of your SIP instalment. This helps you to reach your goal faster with the progression of your income.

Perpetual SIP & Trigger SIP: In perpetual SIP, you don’t have to follow a mandatory lock-in period, you can close and withdraw your money anytime. Trigger SIP gives you the option to switch your investment plan according to the market condition.

Advantages of SIP

SIP provides you with the following advantages which are missing in a fixed or recurring deposit in a bank or other financial organizations:

You can invest in top companies with a minimum amount like Rs 500 per month through an SIP.
The return rate of SIP is much higher.
You get the option to increase/decrease the value of your investments in SIP.
You can withdraw your money after a lockin period or anytime based on your plan.
SIP under the ELSS scheme provides you tax benefit U/S 80C.
SIPs are managed by skilled professionals. You have the chance to get the best return.
SIP plans are flexible and customized according to your need, financial condition, and financial goal.
SIPs are offered by mutual funds registered under SEBI.
Your investment in SIP is almost commissionless and paperless. You can invest yourself online.
SIPs grow your wealth and make you a disciplined investor.

If you can invest wisely in SIPs of mutual funds, you can grow your wealth faster. However, mutual fund investments are subject to market risk. You need to go through all the terms and conditions before any investment. You may consult an AMFI registered mutual fund distributor to know more.

Risk Factors and Returns in Equity Mutual Funds

Equity mutual funds invest in different types of shares according to the present market condition. Such mutual fund is famous for high return capability; it invests in the shares of several companies after a sincere study of their market value and past records. Investors need to have a study on the present market condition and the past record of a mutual fund before investing in the equity fund of it to avoid potential losses. All equity mutual funds are not the same; Investors need to have a clear cut idea of a type of equity fund before moving for investment. An equity mutual fund is liable to invest at least 60% of its total wealth in the equity shares of different companies; the rest of the portion it invests in debt funds or in other schemes.

Types of Equity Mutual Funds

Equity Mutual Funds on the basis of Risk Factors

Mutual fund investment is subject to market risk; an equity mutual fund is also no exception. The fund manager of an equity mutual fund organizes the scheme on the basis of risk factors too. As an equity mutual fund invests more than 60% of its assets in equity shares, it bears a comparatively greater risk than a debt security fund. However, the risk factors also depend on the market capitalization of the shares of a company. Equity funds that invest in large-cap funds of the top 100 shares bear fewer risk factors than the equity mutual funds which invest in the mid-small cap funds.

Funds on the basis of Market Capitalization

Equity mutual funds can be categorized on the basis of the market capitalization of the company where it is investing. Some equity mutual funds invest in large-cap funds for a secured return over a period of 2-4 years. This fund comprises blue-chip companies that have the largest amount of market capitalization. On the other hand, medium-small cap funds are comparatively volatile, have greater risk factors, but have better return possibility. These mutual funds invest in the shares of the companies that share a comparatively lesser amount of market capitalization. Some equity mutual funds are Flexi-cap funds, as the fund managers don’t depend on market capitalization value, but the potentiality of the share.

Funds of the Basis of Themes

A number of equity linked mutual funds in the current market invest in the shares of a specific type of company. These are the theme-based equity funds that choose shares from different sectors like pharmaceuticals, real-estates, banking, and finance, etc. The fund manager of such mutual funds chooses the shares of companies on the basis of a common theme. For instance, if the average market of infrastructure is going well now, he might choose the shares of different infrastructure companies from different levels of market capitalization. This type of equity funds are less flexible and bear a comparatively greater risk. However, in terms of return, they have a good record too.

Funds on the basis of Features

Equity mutual funds can be categorized on the basis of features of the investments. Some funds offer the investors the opportunity of investments through a Systematic Investment Plan (SIP). You also get the option of investment in ELSS funds for tax saving U/S 80C of the Indian Income Tax Act.

To Sum up

Equity mutual funds are suitable options for those who want to take mutual funds as goal based investing. Here you have a high scope of earning a good amount with such investments. Otherwise, you get benefits like tax savings under 80C in several equity funds under the ELSS scheme. Before investing in an equity mutual fund, you need to be aware of your criteria like risk factor, tax exemption, the term of investments, etc. You should also study the market over a few years and go through all the terms and conditions before choosing a fund for investment. The best equity mutual fund is that fund which matches your investment capability and financial goal well. Your financial portfolio is diversified when you invest in equity mutual funds. This increases your earning and your credibility as a prospective investor. You can choose and invest online in an equity mutual fund according to your financial goal and risk appetite. Consult an AMFI Registered Mutual Fund distributor to know more.

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