Best performing mutual funds in india
Mutual fund investments are highly used – the possible profit they bring attract many people, along with the shared responsibility ( winnings and losses).
To invest in mutual fund means that you may have $1000 and participate in stock and bond operations, which is impossible if you want to invest in a successful company. This type of fund has range of available amount of investments $25 to $100 000, where the $1000-$5000 are the most common investments.
The scheme works simple – the fund collects investments from individuals or companies and give in exchange shares, which show what is the participation of everyone. It (the fund) contract a professional money manager, who operates with the money, invests and try to generate even more capital for the fund and its investors. Usually the mutual funds have structure and objectives, determined from the beginning and they keep following them.
The mutual funds are few types, depending of the investment period and type, and they bring different return rate, too. There are open-ended and closed-ended, where the first allow changes in the investments during the entire period and the second allow it during the starting period. Of course, according to the type of investments there are many categories – equity, mid-cap, large-cap and small-cap, balanced etc.
Investing in mutual fund can be highly successful, if you manage to pick good manager, who knows the market well. Here the manager evaluation is among the most important things to check; only excellent money manager can make a mutual fund – top performer.
To be among the best mutual funds in India and everywhere – the fund must have high return rate, excellent manager, low taxes and fees, which together make it attractive for new investors. Many of the best funds have different investing ideas and practices, which make them fresh and profitable; others – just balance between high and lower risks, generating enough short term return, along with stable long-term income.
An example of one of the best mutual funds in India is the ICICI Balanced Fund, which has annualised return of 18%, while balancing between equity and investment debt (60%-40%). Similar is the HDFC Balanced Fund, which has the same ratio between equity and other investments.
Mutual funds with over 90% percent of equity investments are more risky, but if successful bring return around 20%-25%. An example of the best of this type are – UTI Equity Top Mutual Fund and HDFC Top -200 Fund.
The mid-cap and low-cap investments also bring high return rates – up to 16%-17%, where the long-term investments are preferred. The top performers here are – Franklin India Smaller Companies fund and HDFC MidCap Opportunities fund.
There are some which use another investment’s field like potentially growing businesses or these which make infrastructure or economic changes. This shows creative mind and can bring up to 20%-22% return – Reliance Equity Opportunity and Franlkin (I) High Growth Cos Fund.
More info about India’s best mutual funds can be found at – http://myinvestmentideas.com/2014/12/top-10-best-sip-mutual-funds-to-invest-in-2015/