Mutual Fund 2023 – Best Mutual Fund In India List | Benefits of mutual funds How to invest in mutual funds SBI Mutual Fund Returns | Top 10 Mutual Funds in India |
A mutual fund is a trust that generates savings from investors who share a common financial goal. The money deposited by investors is invested by fund managers, which is invested by AMC, capital market instruments such as shares, bonds, and other securities. The investment generates the return that is given in proportion to the units to the holders of the units.
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Mutual Funds 2023
Do you invest in mutual fund schemes? It is very important to get complete information about mutual funds before investing. This will help you in making investment decisions. So here we know what is a mutual fund? We are also telling you here how you can invest in mutual funds?
Mutual fund companies raise money from investors. She invests this money in shares. In return, she also takes her charge from investors.
For those who do not know much about investing in the stock market, mutual funds are a good option for investment. Investors can choose mutual fund schemes according to their financial goals.
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What are the types of mutual funds?
1. Investment Funds: Investment funds mainly invest in shares of many companies. You win or lose by raising or lowering the price of shares. Capital funds are a good option if you want to invest for a long time. Equity investment funds carry a higher risk and, at the same time, have greater returns over the long term.
2. Mutual debt funds: These are low risk mutual funds consisting mainly of government securities which include bonds and treasury bills. Investing in mutual funds is much less risky than mutual funds and is good for investors who want to invest for a short period of time.
3. Balanced and hybrid funds: In this type of mutual fund there is a combination of debt and capital. These are medium-risk mutual funds. In hybrid mutual funds, the debt manager determines the debt and equity ratio and depends on the expected return of the fund.
How many types of mutual funds in India?
- Equity mutual fund
- Debt mutual fund
- Hybrid Mutual Fund
- Solution oriented mutual fund
Is it right to invest in mutual funds?
Yes, if you want to invest for a long time and not if you expect to earn a lot of money in a very short period of time.
Along with this, it also matters which fund you are investing money in. If you invest money in a fund that is well managed, then a mutual fund can provide you with very good benefits.
Mutual funds Benefits
Mutual funds provide the following benefits:
Portfolio diversification
Depending on the investment objective of the scheme, a mutual fund invests in several types of securities. This expands the risks involved in different asset classes, even if the amount invested is small.
It allows small investment
Mutual fund investors need to pay a minimum of Rs. 5000 allow to invest and sometimes even less. This makes it possible for small investors to invest in the capital market.
Flexibility
Mutual funds allow unitholders to switch between the scheme and the schemes according to their requirements. However, keep in mind that there may be a cost involved in changing plans.
Transparency
Mutual funds regularly share information about the investment value of the unit holders and the portfolio of the scheme through personal communication and / or their website.
What is Mutual Funds SIP?
SIP (Systematic Investment Plan) Through SIP, you can invest the amount you choose every month in an automatic mutual fund. While doing SIP, you have to select the amount of investment you have selected and the investment date only once each month.
Whenever the date of your investment arrives, the money will be automatically invested from your bank account through SIP.
How to invest in mutual funds?
You can invest directly from the website of a mutual fund. If you want, you can also consult a mutual fund advisor.
If you invest directly, you can invest in the direct plan of the mutual fund scheme. If you are investing with the help of an advisor, you invest in the regular scheme of a mutual fund scheme.
If you want to invest directly, then you have to go to the website of that mutual fund. You can also go to his office with your documents.
The advantage of investing in a direct plan of a mutual fund is that you do not have to pay commission. Therefore, long-term investment greatly increases your returns. One problem in investing in mutual funds in this way is that you will have to do all the research regarding the mutual fund itself.
Top 10 Mutual Funds in India
If one does not have the knowledge of the market, it can be a difficult task to choose a top performing mutual fund. Here we have given information about some top mutual funds which have been suggested by experts.
| Top Equity Fund | 3 Yr Return | 5 Yr Return |
|---|---|---|
| Mirae Asset Large Cap Fund (Small Cap Funds) | 11.22% | 18.49% |
| Axis Bluechip Fund (Mid Cap Funds) | 15.06% | 17.9% |
| ICICI Prudential Bluechip Fund (Mid Cap Funds) | 10.03% | 16.52% |
| SBI Bluechip Fund (MultiCap Funds) | 10.71% | 15.33% |
| SBI Magnum Multicap Fund (Balanced Funds) | 9.92% | 16.75% |
| Top Debt Fund | 3 Yr Return | 5 Yr Return |
|---|---|---|
| Nippon India Low Duration Fund (Credit Opportunities Fund) | 7% | 7.23% |
| UTI-ST Income Fund-Inst (Gilt Fund) | 3.68% | 5.42% |
| Aditya Birla Sun Life Savings Fund (Liquid Fund) | 7.5% | 7.78% |
| HDFC Short Term Debt Fund (Liquid Fund) | 8.73% | 8.41% |
| DSP Credit Risk Fund (Short-term Fund) | 2.17% | 4.62% |