Top 5 Best Mutual Funds to Invest in India 2018

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Best Mutual Funds in India

Best mutual funds to invest in India

Mutual fund investments are in limelight these days for providing the best investment options for the long-term creation of wealth. It is one of the best decisions to earn high returns while avoiding tax payments at the same time.

Also, known as Equity Funds, mutual funds are more popular because people of any and every walk of life can invest in it easily. Moreover, the internet boom makes it easier for investors to take advantage of the ease of access by investing in mutual funds and make extra earnings.

The availability of more than thousands of top mutual funds in the market has made it a daunting task to select the best plan to suit your requirement, budget and preferences. Remember, you’ll end up paying for a lifetime if you select the wrong one. Therefore, investing in the best mutual fund schemes, which have been performing well consistently, is advisable. However, you can consider investing in the below discussed best mutual funds in India, for a handsome return, but yes only if you can invest for a minimum of 5 years.

Best 5 Mutual Fund plans in 2018

Mutual Funds Name

Mutual Funds Types

Date of Launched

NAV as on 01 Feb, 2018

Birla SL Frontline Equity Fund

Growth Plan

30-Aug-02

226.58

ICICI Prudential Value Discovery Fund

Growth Plan

4-Mar-04

149.37

HDFC Mid-cap Opportunities Fund

Growth Plan

7-May-07

58.598

DSP Micro Cap Fund

Growth Plan

4-May-07

68.15

Axis Long Term Equity Fund

Growth Plan

21-Dec-09

42.299

Details of 5 top mutual funds option for investors:

Birla SL Frontline Equity Fund (Large-cap Fun Category)

With a track record of over 15 years, Birla SL Frontline Equity Fund has been one of the most consistent performers, which gives your investments valuable nourishment by investing in some of the fast growing Indian industries such as Finance, FMCG, Oil & Gas, IT etc. and ensures good returns. This plan is best for those who are seeking long-term capital growth in equity.

You will be surprised to know that this mutual fund scheme helps you with long-term growth of your investment. Let’s understand scheme details.

Fund Type

Open-Ended

Investment Plan

Growth

Launch date

Aug 30, 2002

Benchmark

S&P BSE 200

Asset Size (Rs cr)

11,877.82 (Mar-31-2017)

Minimum Investment

Rs. 5,000

Entry Load

N.A

Exit Load

1.00%

 

Now let’s look at table below to understand the NAV (returns) of Birla SL Frontline Equity Fund as on 13 Jun, 2017.

Returns (NAV)

Period

Returns

Absolute Returns (in %)

1 month

1.30%

Year

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Yearly

3 month

8.20%

2017

13

-

-

-

-

6 month

17.90%

2016

-2.5

8.9

6.1

-7.4

7

12 months

22.10%

2015

4.1

-1.3

-3.9

0.3

0.9

24 months

13.50%

2014

6.9

18.4

4.9

8.3

44.5

36 months

14.20%

2013

-5.6

2.1

-1.4

11.3

8.3

60 months

19.90%

2012

13.9

0.5

9.8

6.9

36.2

ICICI Prudential Value Discovery Fund (Multi-cap Category)

Famous for following the contrarian style of investing, this plan is quite famous among the investors and advisors for its high return scale. It aims to generate returns by investing in stocks with attractive estimations.

Let’s understand the scheme details of this popular open-ended diversified equity scheme.

Fund Type

Open-Ended

Investment Plan

Growth

Launch date

Mar 04, 2004

Benchmark

NIFTY MIDCAP 100

Asset Size (Rs cr)

14,011.22 (Mar-31-2017)

Minimum Investment

Rs. 500

Entry Load

N.A

Exit Load

1.00%

 

Now, let’s look at the NAV (Return) value of ICICI Prudential Value Discovery Fund as on June 13th, 2017.

Returns (NAV)

Period

Returns

Absolute Returns (in %)

1 month

-0.80%

Year

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Annual

3 month

5%

2017

9.8

-

-

-

-

6 month

11.20%

2016

-5.1

9.8

3.2

-5.8

3.9

12 months

16.50%

2015

5.5

-2

-2.4

1.4

5.1

24 months

10%

2014

10

31.7

9.4

8.5

72.6

36 months

15.30%

2013

-7.6

-5.2

1.2

17.6

7.1

60 months

23%

2012

22.1

0.1

8.2

5.9

45.4

HDFC Mid-cap Opportunities Fund (Mid-cap Category)

HDFC Mid-cap Opportunities Fund can be an apt choice for those who are looking for an investment plan, which can endure the uneven rides during an odd phase and also can generate long-term capital appreciation. It currently invests 56% of its corpus in various mid-sized organisations.

Let’s understand the scheme details of HDFC Mid-cap Opportunities Fund.

Fund Type

Open-Ended

Investment Plan

Growth

Launch date

May 07, 2007

Benchmark

NIFTY MIDCAP 100

Asset Size (Rs cr)

12,753.08 (Mar-31-2017)

Minimum Investment

Rs. 5,000

Entry Load

N.A

Exit Load

1.00%

   

Now, let’s look at the NAV (Return) value of the scheme as on June 13th, 2017.

Returns (NAV)

Period

Returns

Absolute Returns (in %)

1 month

-0.50%

Year

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Annual

3 month

10.60%

2017

16.7

-

-

-

-

6 month

20%

2016

-5.7

10.6

12

-8

10.6

12 months

34.55%

2015

1.4

-0.5

-0.2

2.2

5.4

24 months

20.10%

2014

9.7

29.8

8.9

13

76

36 months

23%

2013

-8.3

-1.1

-4.4

21.6

8.7

60 months

27.20%

2012

23

-2.1

9.6

4.3

40

DSP Micro Cap Fund (Small-cap Category)

DSP Micro Cao Fund invests around 65% of its corpus in small cap stocks and follows buy and hold investment strategy. It is renowned for having a very low Portfolio Turnover ratio, which is at 13%.

Let’s understand the scheme details of DSP Micro Cap Fund.

Fund Type

Open-Ended

Investment Plan

Growth

Launch date

May 04, 2007

Benchmark

S&P BSE SMALLCAP

Asset Size (Rs cr)

4,258.41 (Mar-31-2017)

Minimum Investment

Rs. 5,000

Entry Load

N.A

Exit Load

1.00%

 

Now, let’s look at the NAV (Return) value of the scheme as on June 13th, 2017.

Returns (NAV)

Period

Returns

Absolute Returns (in %)

1 month

0.60%

Year

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Annual

3 month

13.30%

2017

15.6

-

-

-

-

6 month

23.30%

2016

-8.2

15.9

7.4

-4.9

11.8

12 months

36%

2015

7.1

-1.2

3.3

5.8

19.3

24 months

28.10%

2014

9

36.6

16.1

16.1

99.7

36 months

34.30%

2013

-15.8

-0.7

-4.5

24.9

3.2

60 months

32.80%

2012

20

0.4

9.6

4.5

40.6

Axis Long Term Equity Fund (ELSS/Tax Saving Category)

This plan also can be treated as a flexi-cap fund, which offers tax benefits. It has a low-risk level and high return at the end.

Let’s understand the scheme details of Axis Long Term Equity Fund.

Fund Type

Open-Ended

Investment Plan

Growth

Launch date

Dec 21, 2009

Benchmark

S&P BSE 200

Asset Size (Rs cr)

10,675.84 (Mar-31-2017)

Minimum Investment

Rs. 500

Entry Load

N.A

Exit Load

0.00%

 

Now, let’s look at the NAV (Return) value of the scheme as on June 13th, 2017.

Returns (NAV)

Period

Returns

Absolute Returns (in %)

1 month

2.60%

Year

Qtr 1

Qtr 2

Qtr 3

Qtr 4

Annual

3 month

12.40%

2017

13.3

-

-

-

-

6 month

20.10%

2016

-5.2

8

5

-9.9

-1.2

12 months

21%

2015

7.7

-2.4

-1.1

-

6.2

24 months

12.70%

2014

10.8

20.8

11.6

10.9

65.9

36 months

18.50%

2013

-5.1

4.7

-1.7

16.3

15.8

60 months

24.50%

2012

13.2

1.3

11

3.2

34

Check Top Best Mutual Funds According to the Types:

Best Multi Cap Mutual Funds

Multi Cap Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

UTI Equity Fund - Direct (G)

153.74

26.3

340.78

Principal Multi Cap Growth - D (G)

153.54

15.3

25.43

UTI Equity Fund (G)

150.4

25.7

4677.04

Principal Multi Cap Growth Fund (G)

147.64

14.3

589.07

Aditya Birla Sun Life Pure Value Fund

58.36

14.44

2607.4

IDFC Sterling Equity Fund

55.1

18.22

2273.79

L&T Emerging Businesses Fund

27.037

21.25

3257.18

 Best Large Cap Mutual Funds

Large Cap Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

HSBC Large Cap Equity Fund (G)

215.95

14

402.73

HDFC Growth Fund

191.45

14.18

35391.04

ICICI Pru Bluechip Fund - D (G)

44.86

16.5

3745.88

ICICI Prudential Bluechip Fund (G)

42.65

15.3

12639.52

Axis Bluechip Fund - D (G)

30.66

25.4

99.27

Invesco India Dynamic Equity Fund

29.28

15.57

810.51

Axis Bluechip Fund (G)

28.75

23.7

1786.82

 Best ELSS Mutual Funds

ELSS

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

CR Equity Tax Saver Fund - D (G)

66.1

21.6

813.7

BOI AXA Tax Advantage - Direct (G)

61.64

21

11.78

Invesco India Tax Plan - DP (G)

58.03

24

26.14

Invesco India Tax Plan (G)

53.44

22.1

479.08

Axis Long Term Equity - Direct (G)

48.6

22.3

1176.21

 Best Sectoral/Thematic Mutual Funds

Sectoral/Thematic

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

ICICI Pru FMCG Fund - D (G)

251.79

23.07

307.45

ICICI Pru Technology Fund - D (G)

59.9

50.7

275.04

L&T Infrastructure -Direct (G)

18.01

10.2

311.77

L&T Infrastructure (G)

17.25

9.2

1534.34

Tata Digital India Fund - Direct (G)

15.92

65.7

16.97

 Best Aggressive Hybrid Mutual Funds

Aggressive Hybrid Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

CR Equity Debt Allocation Fund - D (G)

155.86

13

1488.53

SBI Equity Hybrid Fund - D (G)

131.12

14.2

20013.35

Sundaram Equity Hybrid Fund (G)

90.79

15.6

843.73

Principal Hybrid Equity Fund - D (G)

82.57

16.1

81.88

Principal Hybrid Equity Fund (G)

78.23

14.6

944.63

Escorts Opportunities - Direct (G)

59.84

17

1.78

 Best Conservative Hybrid Mutual Funds

Conservative Hybrid Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

BNP Paribas Conser. Hybrid - D (G)

30.07

6.9

1.86

BNP Paribas Conser. Hybrid (G)

27.51

4.5

323.82

DHFL Pramerica Hybrid Debt Fund - D (G)

21.89

10

17.34

IDFC Regular Savings Fund - D (G)

21.74

4.2

15.82

Axis Regular Saver Fund - Direct (G)

20.72

9

5.45

IDFC Regular Savings Fund (G)

20.69

3.2

235.19

Indiabulls Savings Income Fund -DP (G)

13.66

16.5

49.5

 Best Short Duration Mutual Funds

Short Duration Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

Franklin (I) ST Income -Direct (G)

3933.9

7.5

1984.43

Sundaram Short Term Debt Fund D (G)

31.81

5.8

731.13

HDFC Short Term Debt Fund - D (G)

19.76

5.8

6290.24

HDFC Short Term Debt Fund (G)

19.6

5.6

3365.14

Indiabulls Short Term Fund-Dir (G)

19.57

6.8

103.42

L&T Short Term Bond Fund - D (G)

17.35

5.4

2297.1

L&T Short Term Bond Fund (G)

16.92

4.8

615.48

 Best Gilt Fund Mutual Funds

Gilt Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

L&T Gilt Fund - Direct (G)

45.46

1.4

60.33

UTI Gilt Fund (G)

38.59

0.4

267.58

DHFL Pramerica Gilt Fund-DP (G)

19.36

105

32.98

BNP Paribas Govt. Sec.-Direct (G)

15.57

7.1

2.69

BNP Paribas Govt. Sec. (G)

15.03

6.3

3032

Edelweiss G-Sec. Fund -DP (G)

14.78

3.9

3.55

Edelweiss G-Sec. Fund -RP (G)

14.47

3.4

389.52

 Best Ultra Short Duration Mutual Funds

Ultra Short Duration Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

SBI Magnum Ultra Short Duration - D (G)

3960.72

7.3

4593.62

Reliance Ultra Short Duration - D (G)

2895.91

7.5

7637.69

BOI Ultra Short Duration - D (G)

2185.82

7.4

631.92

L&T Ultra Short Term -Direct (G)

29.61

6.9

791.92

L&T Ultra Short Term Fund (G)

29.09

6.5

1085.4

Franklin Ultra SBF - SIP - Direct (G)

24.87

7.7

3617.76

L&T Ultra Short Term Fund (Bonus)

15.87

6.5

142.28

 Best Liquid Mutual Funds

Liquid Fund

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

L&T Liquid Fund - Direct (G)

2450.97

7.1

9976.17

L&T Liquid-Super Inst (G)

2443.15

7.1

4550.7

Mirae Cash Mgmt Fund -Direct (G)

1885.86

7.1

758.73

Indiabulls Liquid Fund -Direct (G)

1746.8

7.1

6673.33

Indiabulls Liquid Fund (G)

1737.28

7

498.33

DHFL Pramerica Insta Cash Fund (G)

231.38

7

1902.5

 Best Index Funds/ETFs Mutual Funds

Index Funds/ETFs

NAV (Rs./Unit)

1 yr Return (%)

AUM (Rs. cr.)

Reliance ETF Nifty BeES

1206.97

20.2

893.24

SBI - ETF Sensex

400.57

21.7

9143.16

HDFC Index - Sensex Plan - D

341.45

23.5

42.74

ICICI Prudential Nifty ETF 

120.07

20

844.91

LIC MF ETF - CNX Nifty 50

119.19

20

456.99

Kotak Nifty ETF 

118.27

20.1

537.13

More Top Mutual Funds to invest in India:

You can refer the below table of top-performing best mutual funds schemes for investing in 2018:

Mutual Fund Plan Name

Category

Commencing year

Return (%)

Risk Level

Return

3 year

5 year

10 year

Since Initiated

ICICI Pru Focused Bluechip Fund

Large Cap

2008

16

16

NA

14

Below Average

Above Average

SBI Bluechip Fund

Large Cap

2006

20

19

10

11

Low

High

Birla SL Frontline Equity Fund

Large Cap

2002

17

18

13

22

Below Average

Above Average

ICICI Pru Value Discovery Fund

Diversified

2004

27

24

16

22

Below Average

High

L & T Value Fund

Diversified

2010

31

25

NA

16

Below Average

Above Average

Franklin Prima Plus Fund

Diversified

1994

21

18

13

19

Low

Above Average

UTI Mid-cap Fund

Mid Cap

2004

31

26

14

19

Average

Above Average

Franklin India Prima Fund

Mid Cap

1993

19

26

14

21

Below Average

Average

HDFC Mid-cap Opportunities Fund

Mid Cap

2007

30

25

NA

17

Below Average

Above Average

DSP Micro Cap Fund

Small Cap

2007

44

30

NA

18

Average

High

SBI Small & Mid Cap

Small Cap

2009

40

29

NA

19

Below Average

Above Average

Franklin Smaller Companies Fund

Small Cap

2006

34

31

15

15

Low

Average

Birla SL Tax Plan

ELSS/Tax Saving

1999

21

19

10

20

Below Average

Above Average

Franklin Taxshield Fund

 

ELSS/Tax Saving

1999

21

18

14

24

Low

Average

Axis Long Term Equity Fund

ELSS/Tax Saving

2009

22

22

NA

17

Low

High

SBI Balanced Fund

Equity-Balanced

1995

19

19

11

16

Below Average

Above Average

HDFC Balanced Fund

Equity-Balanced

2000

21

18

14

16

Below Average

Above Average

 

Let’s take a look at some more details of the trending MF Schemes in India under each fund category:

Large-cap Fund

  • UTI Equity Fund
  • Birla Sunlife Frontline Equity Fund
  • ICICI Pru Focused Blue-chip Equity Fund

Multi-cap Category

  • ICICI Prudential Value Discovery Fund
  • Franklin India Prima Plus
  • Mirae Asset India Opportunities Fund

Small & Mid-cap Fund Category

  • HDFC Midcap
  • Franklin India Smaller Companies Fund
  • UTI Midcap

Hybrid- Equity Oriented Category

  • TATA Balanced Fund
  • HDFC Balanced
  • ICICI Prudential Balanced Fund (Regular Plan)

ELSS/Tax Saving Category

  • Birla Sunlife Tax Plan
  • Axis Long Term Equity Fund
  • Franklin India Tax Shield

Large cap mutual funds are high in demand these days and many mutual fund investors are encouraging their customers to opt for mutual fund investments. As the name suggests, large cap mutual fund schemes allows investors to invest in large stocks such as that of large companies or stocks with large capitalisations.

These companies are well-established in their particular domains and are also more reliable when compared to smaller companies. This feature makes them a fitting choice for those investors who are looking for less volatile mutual fund investment options with a low risk factor.

If you are also one of those investors who belong to the low-risk appetite category, you can always go for large cap mutual fund schemes (besides the equity-based schemes). However, before you start putting your money in these mutual fund investments, it’s important for you to understand that as these mutual fund schemes are not as volatile, you shouldn’t expect a very high rate of returns from them.

Best 3 large cap mutual funds schemes for 2018:

Name of the Scheme

Returns (%)

 

1-year

3-year

5-year

Mirae Asset India Opportunities – Regular - G

36.17

15.76

20.69

Kotak Select Focus – Regular – G

31.29

13.97

20.15

SBI Bluechip - G

27.55

13.48

18.22

Benefits of large cap mutual fund schemes:

  • Consistent Performance (during last 3 years): The performance is decided by dividing the 3-year time period into smaller periods. Each of these smaller time periods are given a progressing weighting to analyse the performance and consistency of the scheme.
  • Mean Rolling returns: In very basic terms, rolling returns are the average returns given by a mutual fund scheme in a particular year. These returns help the investors to analyse the performance and behaviour of a mutual fund in a chosen time period.
  • Downside Risk: Only the negative returns given by a particular mutual fund is considered while finalizing its performance.
  • Asset Size: Mutual funds with an asset size of Rs 100 crore and Rs 50 crore have been chosen for this category.
  • Forward Returns: A back testing was also conducted for the model portfolios and the forward returns for the chosen mutual funds calculated from the base date to get a better understanding of their performance.

Furthermore, tax saving forms an integral part of one’s financial planning. Section 80C of Indian Income Tax Act of India gives you a chance to claim refunds on your taxable income by putting your money in certain top mutual funds, also known as tax-saving mutual fund schemes.

Equity-Linked Savings Scheme (ELSS) is one of the most popular tax-saving instruments as these equity-diversified funds offer the dual advantage of tax benefits as well as capital appreciation. With the financial year coming to a close, investments in ELSS funds are high in demand.

Here is a look into a few salient features of ELSS Mutual Funds:

  • Even if you can’t afford to invest a large amount in one go, you can start with an amount as low as Rs 500. Unlike other tax-saving instruments such as NSC and PPF, ELSS doesn’t have any upper limit set for the investments.
  • However, it’s important to understand that even though there is no upper limit set, only investments made up to Rs 1, 00,000 will be considered for tax benefits.
  • Unlike the 6 to 15 years lock-in period offered by other tax-saving instruments, ELSS offers a lock-in period of 3 years.
  • These funds are open ended, which means they give you an option to invest in them throughout the year.
  • You also get nomination facilities under this scheme, where you can nominate a beneficiary in case something unfortunate happens to you.
  • There may or may not be exit or entry loads charged to the investors, depending upon the fees charged by a particular mutual fund provider.
  • The ELSS funds provide investors with an option to create wealth by choosing the growth option and hence, getting a chance to fulfil their long-term goals. You can easily make your money grow with the help of their compounding feature and create the desired corpus.
  • Your money will be totally tax exempted; if you withdraw your money after the fund has matured (completed the 3 years lock-in period).
  • ELSS mutual funds have proven their ability to give remarkably higher returns as compared to other tax-saving tools. However, these returns are completely market-based and should not be considered a guarantee under any circumstances.
    • It’s always a better decision to invest in ELSS mutual funds for a time period of at least 5 to 7 years and receive a compounded return on the invested amount. Furthermore, make sure you consult your financial advisor or seek help from a certified financial planner before putting your money in these schemes.

Performance Based Mutual Funds for 2018:

Reliance Small-Cap Fund

This fund has given a whopping return of 31.52% since its inception, which is an impressive feat. Reliance Small-Cap Fund focuses on generating superior returns despite the high risks by investing in smaller or less significant capitalisation companies.

This fund identifies businesses with positive growth taking into consideration different factors such as quality management, reasonable size and rational evaluation.

Mirae Asset Emerging Bluechip Fund

Since its inception, Mirae Asset Emerging Bluechip Fund is known for its phenomenal return rate of 29.10%. This fund is known for its ability to manage the losses that occur during market correction and consistently outperforming its peers to set a new benchmark.

Most Focused Multicap 35 Fund

As the name suggests, this fund follows an approach of focussing on 35 stocks at a given point of time. Hence, it’s always a bit dicey with this fund when it comes to performance as the performance of this fund is dependent upon the performance of its 35 stocks.

This fund follows the mechanism of stocks allocation and therefore demands the best from its in-house fund managers, whose expertise will induce your confidence in their capabilities. As per the reports released in Nov 2017, Most Focused Multicap 35 Fund has produced a return of 23.59%.

HDFC Mid-Cap Opportunities Fund

It is one of the most consistent performers among the ELSS funds with an SIP return of 22.94%. Since the very beginning, the star fund manager Chirag Setalvad is taking care of this fund which gives it an added advantage over its peers.

Mirae Asset India Opportunities Fund

Mirae India Opportunities Fund was opened in 2008 and is managed by Harshad Borawake and Neelesh Surana. The fund has been able to generate SIP returns at the rate of 20.06% which is highly commendable.

Reliance Tax Saver Fund:

Reliance Tax Saver Fund is looking forward to invest in the firms with high growth potential in the upcoming 2 to 3 years. From the very beginning, this fund has been able to generate 18.23% SIP returns, which can’t be ignored. This ELSS fund is designed with an aim to maintain equilibrium between mid-cap and large-cap companies.

Birla Sun life Tax Relief 96

This fund comes with a lock-in period of 3 years. The fund manager associated with this company is working since 2006 and has done a praiseworthy job. From the very beginning, this fund is able to generate returns of 17.37%.

Things to Remember While Investing in Mutual Funds:

Go with Your Goals: First, identify your financial goals and then short-list the best available plans.

Ignore Age Factor: The best part of equity funds is each and every person, from all walks of life, can invest here. If they are up to the mark to your investment objectives then, you can opt for them even if you are a senior citizen.

Explore Different Categories: Rather stick to one, it is advisable to keep exploring other fund categories as well and invest in them.

Go for Long-term Volatility: It is quite obvious that an investor may panic if he/she sees some downfall or negative returns on his MF Portfolio. But we would advise them to not panic and to stick to the medium or long-term equity oriented mutual fund that you have invested in.

Always Prefer Consistency: A good mutual fund plan is one that consistently manages to break the category return. It is always wise to be with the consistent performers for long-term and ignore the recent rating performance of the funds.

Limit Your Expectations: Don’t go beyond the realistic expectation. If you analyse the above table, the maximum return that draws in 10 years is 16% and the minimum is 10%. So, always have a realistic expectation which should be between 12 to 15 (%).

Well, adding to its unexpected nature, the values/returns of the mutual fund always tend to frequent change. So, the above mention list of MF Plan is not the comprehensive one. The previous performance may not repeat. But again, as patience always pays, investing in mutual funds is a good decision but in an efficient manner.

Mutual Funds - FAQ's

Q1. How do mutual funds work?

A1. Professional financial advisors or investment managers, who sell and buy securities, manage the mutual fund. As MF investor, you turn a ‘shareholder’ of the mutual fund provider. When there’re gains, you’ll earn dividends; however, in case of losses, the value of your share will decrease.

Q2. What are growth and income mutual funds?

A2. ‘Growth and income mutual funds’ are exchange-traded mutual fund schemes with dual strategy of capital growth or appreciation and existing income produced via interest payments and dividends. This type of fund can invest in a combination of real estate trusts, bonds, stocks and other securities, or only in equities.

Q3. Can you withdraw money from a mutual fund?

A3. Yes, you can withdraw money from a mutual fund scheme.

Q4. What is the bad thing about mutual funds?

A4. Mutual funds are considered bas because of their high annual expense ratio, load charges and diluted returns. However, you can re-consider it by taking advice from financial advisors or fund managers. These fund managers help you spread your investment in the right channel.