Investing in mutual funds in India has proven to be a powerful tool for accumulating wealth. In India, mutual funds present a great opportunity for investors to get higher returns over a long-term horizon. Mutual funds are managed by professional asset managers and firms that can help investors navigate volatile markets. With a myriad of mutual fund options available in the Indian market, it can be a daunting task to choose the most suitable option. Hence, it is best advised to have mutual funds plans that guide you through your investing journey.
Mutual funds plans are prepared in 3 simple steps:
Different types of mutual funds exist in India, ranging from relatively safe and predictable investments to riskier, higher-reward investments. Investors should assess their risk tolerance and long-term financial goals as the step 1 of their mutual funds plans. For example, if someone is looking for income and safety of principal, then a conservative mutual fund may be the best option. These conservative funds hold a variety of safe, short-term investments in the form of corporate bonds, foreign bonds and treasury bills. On the other hand, a more aggressive investor might opt to invest in an equity mutual fund, which generally holds stocks that are considered riskier but have the potential for greater returns over time.
Comparing different mutual funds
When comparing various mutual fund plans in India, investors should consider the fees associated with each one, as well as the selection of funds available. Choosing the right mix of funds helps to ensure that an individual’s portfolio is properly diversified and has the potential to generate the highest possible returns. Additionally, investors should make sure that the fund manager has a good track record and strong customer service ratings.
Consult an Advisor
You may have learnt how to do risk analysis and compare different fund mutual in mutual funds plans. However, you may sometimes need an expert opinion for your existing investments or for new investment plans. You should not hesitate in consulting an AMFI Registered Advisor when needed.
Once you have mutual funds plans prepared, investing in mutual funds becomes safer and sound. However, some of us do not have the expertise in preparing a mutual funds plans and are extremely conservative about discussing financial goals with an Advisor can invest in the below list of top mutual funds to invest in India which is recommended for long term wealth creation through disciplined SIP.
List of Top Mutual Funds to invest in India:
ICICI Prudential Equity & Debt Fund
The ICICI Prudential Equity & Debt Fund is one of the top mutual funds to invest in India. It is an equity-oriented fund that seeks to provide consistent returns over long-term investments. The fund primarily invests in large and mid-cap stocks, debt instruments, and other equity related instruments. The target market for this fund is investors who are looking for long-term growth. The fund has generated an average annual return of 15.74% over the past three years and its top asset management firm is ICICI Prudential Asset Management Company.
HDFC Equity Fund
The HDFC Equity Fund is also among the top mutual funds to invest in India. It is a multi-cap fund that invests in stocks and equity related instruments of companies across market capitalizations. The fund seeks to provide consistent returns over the long-term investments. The fund has generated an average annual return of 12.94% over the past three years. Some of the stocks held by the fund include HDFC Bank, Infosys, Reliance Industries, and Hindustan Unilever.
SBI Blue Chip Fund
The SBI Blue Chip Fund Is another top choice when it comes to investing in mutual funds in India. The fund primarily invests in stocks of large-cap companies in the Indian market and seeks to provide consistent returns over long-term investments. The fund has generated an average annual return of 17.44% over the last three years and its top asset management firm is SBI Mutual Fund.
Franklin India Focus Fund
Last but not the least in the list of top mutual funds to invest in India is the Franklin India Focus Fund. The fund seeks to provide long-term capital appreciation by investing in stocks and equity related instruments of companies across market capitalizations. The fund has generated an average annual return of 14.24% over the last three years. The fund’s portfolio includes stocks from sectors such as financial services, FMCG, and energy.
To conclude, these are some of the top mutual funds to invest in India. These funds provide excellent opportunities to accumulate wealth over a long-term horizon with minimal risks. Investors should remember that past returns are not indicative of future performance and should thus use discretion while investing in such funds.