How do Top-Rated Mutual Funds Work?

Top-rated mutual funds are professionally managed schemes where fund houses pool money from investors and invest across asset classes like equity, debt, or a mix of both. These funds aim to deliver consistent returns through expert management and diversification.

Investors can choose between Systematic Investment Plans (SIPs) or lump sum investments. SIPs involve small, regular contributions, helping reduce market timing risks through rupee cost averaging. Lump sum investments, on the other hand, are ideal when you have a larger amount to invest, especially in favourable market conditions.