Best Mutual Funds in India 2017: A Comprehensive Guide
Mutual funds are one of the most popular investment options in India. They offer a convenient way for investors to diversify their portfolios and enjoy steady returns. However, with so many mutual funds available in the market, choosing the right one can be a daunting task. In this blog post, we will take a look at some of the best mutual funds in India in 2017.
- SBI Bluechip Fund
SBI Bluechip Fund is a large-cap mutual fund that invests in companies with a market capitalization of more than Rs. 10,000 crores. This fund has consistently delivered high returns over the years and is a good option for investors who are looking for stability and long-term growth.
- HDFC Mid-Cap Opportunities Fund
HDFC Mid-Cap Opportunities Fund is a mid-cap mutual fund that invests in companies with a market capitalization between Rs. 500 crores and Rs. 10,000 crores. This fund has performed exceptionally well in the past and is a great option for investors who are willing to take some risks in order to achieve higher returns.
- ICICI Prudential Balanced Advantage Fund
ICICI Prudential Balanced Advantage Fund is a hybrid mutual fund that invests in both equity and debt instruments. This fund is designed to provide investors with the benefits of both asset classes and has consistently delivered strong returns. It is a great option for investors who are looking for a balanced portfolio.
- Reliance Small Cap Fund
Reliance Small Cap Fund is a small-cap mutual fund that invests in companies with a market capitalization of less than Rs. 500 crores. This fund has performed exceptionally well in the past and is a great option for investors who are willing to take some risks in order to achieve higher returns.
- Franklin India Low Duration Fund
Franklin India Low Duration Fund is a debt mutual fund that invests in debt instruments with a maturity of up to three years. This fund has consistently delivered stable returns and is a good option for investors who are looking for a low-risk investment option.
Mutual funds are a great investment option for investors who are looking for professional management of their investments and diversification across different asset classes. In India, mutual funds have gained a lot of popularity in recent years, with more and more investors opting for them over traditional investment options like fixed deposits or gold.
When investing in mutual funds, it is important to keep in mind certain factors like the fund’s investment objective, track record, expense ratio, and asset allocation strategy. It is also important to have a long-term investment horizon and to stay invested through market ups and downs.
Apart from the five mutual funds mentioned above, there are many other good mutual funds in India that investors can consider based on their investment goals and risk appetite. For example, Axis Long Term Equity Fund is a good option for investors who are looking to save taxes under Section 80C of the Income Tax Act, as it invests primarily in equity and equity-related instruments and has a lock-in period of three years.
Similarly, Mirae Asset Emerging Bluechip Fund is a good mid-cap mutual fund that has delivered consistent returns over the years and is a good option for investors looking for high growth potential. Kotak Standard Multicap Fund is another good mutual fund that invests across different market capitalizations and sectors and is a good option for investors looking for a diversified portfolio.
Conclusion
In conclusion, mutual funds offer a great investment option for investors looking for long-term growth potential and diversification. By doing adequate research and understanding their investment goals, investors can choose the right mutual fund that suits their needs and helps them achieve their financial objectives.
Read more useful content:
- How to invest in mutual funds
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- All about mutual funds-types & importance
- The Power of SIP Investment in Mutual Funds
Frequently Asked Questions (FAQs)
What is a mutual fund?
A mutual fund is a type of investment vehicle that pools money from multiple investors and invests it in a portfolio of stocks, bonds, or other securities. The portfolio is managed by professional fund managers who aim to generate returns for the investors.
How do mutual funds work?
When you invest in a mutual fund, your money is combined with the money of other investors and is used to purchase a diversified portfolio of securities. The returns generated by the fund are then distributed among the investors, based on their respective holdings in the fund.
What are the different types of mutual funds?
There are different types of mutual funds based on the asset class they invest in, such as equity, debt, and hybrid funds. Equity funds invest primarily in stocks, while debt funds invest in fixed-income securities like bonds. Hybrid funds invest in both equity and debt.
What are the benefits of investing in mutual funds?
Mutual funds offer several benefits, such as diversification, professional management, easy accessibility, and liquidity. They also offer the potential for higher returns compared to traditional investment options like fixed deposits.
What is the minimum investment required for mutual funds?
The minimum investment amount for mutual funds can vary depending on the fund and the asset management company. It can range from as low as Rs. 100 to as high as Rs. 5,000.
How are mutual funds taxed in India?
Mutual funds are taxed based on the type of fund and the duration of investment. Equity funds held for more than one year are taxed at 10% on long-term capital gains, while debt funds are taxed at 20% after indexation if held for more than three years.
What is an expense ratio?
An expense ratio is the fee charged by the mutual fund company for managing the fund. It includes the fund management fee, administrative expenses, and other costs related to the fund. A lower expense ratio indicates a more cost-effective fund.
What is SIP in mutual funds?
SIP (Systematic Investment Plan) is a mode of investing in mutual funds where a fixed amount is invested at regular intervals, usually monthly. It helps in reducing the impact of market volatility and allows investors to benefit from rupee cost averaging.
Can mutual funds guarantee returns?
No, mutual funds cannot guarantee returns as they are subject to market risks. The returns generated by a mutual fund are dependent on the performance of the underlying securities in the portfolio.
How can I select the right mutual fund for my investment goals?
To select the right mutual fund, you should consider factors such as your investment goals, risk tolerance, investment horizon, fund performance, expense ratio, and asset allocation strategy. It is also advisable to seek the advice of a financial advisor before making any investment decisions.
