Are you looking for Best Mutual Funds to Invest in India or top 10 Mutual Funds to invest in 2019 or Best ELSS Funds to invest in 2019 or Best Performing Mutual Funds for SIP..?
Then you are at the right place.. Read till the end, and all your questions will be answered
There are many blogs/ articles which will give you the list of Mutual Funds to invest in 2019 and you will observe that all such lists will be different. Also, the list published by the same website in the last year i.e. 2018 will also be much different than the list for 2019.
Whenever, you invest based on “top-rated funds”, look at the basis of such ratings. For example, an extract from Value Research website :
What is Value Research Fund Rating?
Value Research Fund Rating (Risk-adjusted Rating) is a convenient composite measure of both returns and risk. It is purely quantitative and there is no subjective component to the Fund Rating. The assessment does not reflect Value Research’s opinion of the future potential of any fund. It only gives a quick summary of how a fund has performed historically relative to its peers.
Have you noticed that when you invested based on such ratings either you did not get the desired results or you feel that your friend’s mutual fund portfolio is performing better than yours?
This is bound to happen as one didn’t have conviction or did not undergo proper research while investing and investment was done without any clear goal/ objective in mind. For example, investing for tax saving. If you have invested with the goal of tax saving, why are you worried about fund performance now? You already saved tax, isn’t it?
Do you want to come out of this vicious circle?
Ask yourself the following questions..
Why do you want to invest in Mutual Funds..?
What Return you are expecting..?
What is your Risk Appetite & Risk Profile..?
What other investments you are holding..?
How long you want to stay invested..?
Have you done proper Asset allocation (Debt, Equity)..?
Most of the Answers for above questions will be different for different individuals.
Your financial plan is like your fingerprints.
It is unique to you. Neither can you use someone else’s investment strategy nor can they use yours. What may be elixir for one could be poison for another. Hence, investing based on friends / colleagues advice will not give the desired results.
If you have read this blog so far, you have more interest in your finances than most people searching “Top 10 Mutual Funds” and you have taken one step closer to financial freedom.
There are around 2000 (Two Thousand) Mutual Fund Schemes in India (AMFI Report, Feb 2019)
Each mutual fund scheme is suitable to meet different needs. Each scheme has different :
– risk return metrics
– taxation and exit load structure
For example, let’s look at ELSS category, there are about 71 schemes in ELSS category. We have analysed all these funds and a few of them are given below:
|Axis Long term Equity||Large Cap Bias|
|Aditya Birla Sun life Tax releif’96||Multi Cap approach|
|Franklin India tax||Large Cap Bias|
|Reliance tax saver||Mid & Small Cap Bias|
|IDFC tax saver||Mid & Small Cap Bias|
|SBI Magnum Tax gain*||Large Cap Bias|
|Mirae tax saver**||Large Cap bias|
(Above schemes are for illustrative purposes only and not a recommendation)
*SBI Magnum Tax gain was Holding 9% cash as on Feb’2019 against the category average of 5%.
**Mirae tax saver was not rated by research websites before a few months as 3 years were not complete. Currently, it’s 5 star rated scheme.
Choosing Suitable scheme for investment and proper combination of schemes is very important as diversification in Mutual Funds is very different than diversification in stocks. Each mutual fund scheme invests in 30 to 50 stocks. So having more number of schemes may lead to overlapping or over diversification which affects returns negatively.
- Don’t rely on random advice or google as they only know top 10 funds for investment and not what is suitable for you.
Focus not on the Best, focus on identifying what is most suitable for you.
Take help of reliable Financial Planner/Advisor or perform proper research (if you are DIY investor)
- Never judge an article by its heading 😉
We stopped publishing Mutual funds recommendation list long back as we believe that general recommendations will not help you to create serious wealth. Don’t play with your hard earned money.
We provide following services for a very nominal fees :
- Customised Mutual Fund recommendations
- Comprehensive Customised Financial Plan
- One to one coaching for Do it Yourself – DIY investor
CA Nitesh Buddhadev
Nimit Wealth Management
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