Which Mutual Fund is Best to Invest

Great, it all starts with asking a few simple questions yourself which are:

• Are you looking for Long-term investment or Short-term investment?
  
• Are you investing to Save Tax? Or Some other Goal?
  
• What do you want? High Returns? Steady Income? The mix of both?
  
• What is Your Risk Appetite?
  

Now, that you have asked yourself these questions and you already have answers in your mind, you’re ready to begin. So, here’s the crux:

• Are you looking for Long-term investment or Short-term investment?
  
• Are you investing to Save Tax? Or Some other Goal?
  
• What do you want? High Returns? Steady Income? A mix of both?
  
• What is your Risk Appetite?

Now, that you have asked yourself these questions and you already have answers in your mind, you’re ready to begin. So, here’s the crux:

Alright, which one is the least risky?

Large Cap Funds offer steady returns, best for long-term goals and are the least risky. The reason is that large Cap Funds are invested in companies that have a very high market capitalization as compared to Mid Cap and Small Cap Funds. Basically, they invest their money in companies with steady growth and comparatively very little risk.

In Top Large Cap Funds, we recommend these two Schemes to invest your money in:

ICICI Prudential Focused Bluechip Equity Fund Growth

SBI Blue Chip Fund Growth

I am ok with a little risk; but not too much. Where do I invest?

Mid-cap funds are ideal in that case as they offer much higher returns than Large Cap Funds and are less risky than Small Cap Funds. Funds are invested in companies that have a medium market-cap range and invest a majority of your money’s chunk in medium-sized companies.

In Top Mid Cap Funds, we recommend these two Schemes to invest your money in:

L&T Midcap Fund Growth

Mirae Asset Emerging Bluechip Fund Growth

Risks are fine as long as I get high returns. What’s suitable to me?

Small Cap Funds are the best option. These funds are invested in small companies that have a high growth potential and, hence offer maximum returns. Small Cap funds are volatile compared to Large-Cap and Mid-Cap Funds thus, if you wish to invest here make sure you have a high risk appetite.

In Top Small Cap Funds, we recommend these two Schemes to invest your money in:

L&T Emerging Businesses Fund Growth

Reliance Small Cap Fund Growth

Is there something that strikes a perfect balance of risk and returns?

Multi Cap Funds, consist of a variety of all types of Cap Funds. They are less risky than funds (Large/Mid/Small) that purely invest in market capitalization companies. These funds tend to balance their portfolios on companies that are the best performers rather than depending on market capitalization.

In Top Multi Cap Funds, we recommend these two Schemes to invest your money in:

Motilal Oswal MOSt Focused Multicap 35 Fund Growth

Aditya Birla Sun Life Pure Value Fund Growth

How about Tax Savings? And, also earning high returns with saving tax?

ELSS Funds i.e. Equity Linked Savings Schemes are ideal. You can Save Tax up to an Investment of Rs.1.5 Lakh of your yearly income as it’s exempted from taxation under Section 80C of the Income Tax Act, India. It has a lock-in period of 3 years. What’s important to remember here is that not only do they help you to save tax but are an excellent opportunity with high growth potential for long term.

In Top ELSS Mutual Funds, we recommend these two Schemes to invest your money in:

Aditya Birla Sun Life Tax Relief 96 Growth

Axis Long-Term Equity Fund Growth

I don’t believe in this risk only. I just want to put my money in a savings account sort of a thing and withdraw my money at will.

Liquid Funds is the answer. They have no lock-in period. They are not risky as they are invested in Debt securities and are optimal for short-term goals. They are just a better version of the Savings account, some say.

Also Read About:- Crux Mutual Fund’s Offer Document

In Top Liquid Funds, we recommend these two Schemes to invest your money in:

Indiabulls Liquid Fund Growth

ICICI Prudential Liquid Growth

To sum it all up, as per your risk appetite and your objective of investment, we have recommended 6 categories of investment in mutual funds with 2 schemes recommended in each category. The above recommendations have been formulated in consultation with our experts.