Mutual fund investment is a popular way for individuals to invest in the stock market without the need for a large amount of capital or extensive knowledge of the market. A mutual fund is essentially a pool of money from multiple investors that is managed by a professional fund manager. The manager uses this money to invest in a diversified portfolio of stocks, bonds, or other assets, with the aim of generating returns for the investors.
One of the key benefits of mutual fund investment is diversification. Since the fund manager invests in a variety of assets, the risk is spread out across different industries, companies, and sectors. This helps to mitigate the impact of any losses on the overall portfolio, while still allowing for potential gains.
Another benefit of mutual funds is that they are typically managed by professional fund managers who have extensive knowledge of the market and access to research and analysis tools. This can be especially helpful for investors who are new to the market or who do not have the time or expertise to manage their own investments.
However, it is important to note that mutual fund investment does come with some risks. Like any investment, there is always the potential for losses, and the performance of the fund can be impacted by a variety of factors, including market conditions and the decisions of the fund manager. Additionally, there are typically fees associated with investing in mutual funds, such as management fees and expense ratios, which can eat into returns over time.
When considering mutual fund investment, it is important to do your research and understand the risks and potential benefits. Consider factors such as the fund’s historical performance, fees and expenses, and the investment strategy of the fund manager. It is also important to remember that mutual fund investment is a long-term strategy, and it is important to stay invested and avoid making knee-jerk reactions based on short-term market fluctuations.
Overall, mutual fund investment can be a valuable tool for individuals looking to invest in the stock market and grow their wealth over time. With careful research and a long-term approach, investors can potentially benefit from the diversification and professional management offered by mutual funds.
Here are the best 3 mutual funds to invest right now :
1) Canara Robeco Bluechip Equity Fund Direct Growth
Canara Robeco Bluechip Equity Fund Direct Growth is a mutual fund that invests in bluechip companies in India, which are large, well-established companies with a proven track record of success. The fund’s investment objective is to generate long-term capital appreciation by investing primarily in large-cap stocks.
The fund is managed by an experienced team of professionals who use a research-driven approach to identify quality companies with strong growth potential. The portfolio is diversified across various sectors and industries, which helps to reduce risk and enhance returns over the long term. Investors can benefit from the fund’s direct growth option, which allows them to avoid the costs associated with distributor commissions and fees. This can potentially result in higher returns over time.
Overall, the Canara Robeco Bluechip Equity Fund Direct Growth is a well-managed mutual fund that can be a valuable addition to a well-diversified investment portfolio. However, as with any investment, it is important to carefully consider the risks and potential rewards before making a decision.
-> This fund was started on 01/01/2013 and has been in existence for 10 years as 3 m.
-> Growth has ₹8,860 crore under management (AUM) as on 31/03/2023.
-> Last one year return is 5.12%.
-> It gave an average annual return of 13.88%. Every 4 years the fund has doubled the money invested in it.
-> The fund has most of the money invested in the financial, technology, energy, consumer staples and automobile sectors.
-> Top 5 holdings of the fund are in HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd. and State Bank of India.
2) Parag Parikh Flexi Cap Fund Direct Growth
Parag Parikh Flexi Cap Fund Direct Growth is a mutual fund scheme offered by Parag Parikh Mutual Fund. It is an open-ended equity fund that invests in a diversified portfolio of companies across market capitalizations, sectors, and geographies. The fund follows a flexible approach in its investment strategy, allowing the fund manager to invest in stocks based on their growth potential and market conditions.
The fund has a proven track record of delivering consistent returns over the years and has outperformed its benchmark and peers in the long run. The fund has a relatively low expense ratio compared to other equity funds, making it an attractive option for investors looking for a cost-effective investment option.
One unique aspect of this fund is its exposure to international stocks, which is currently around 35% of its total portfolio. This provides investors with exposure to global markets and diversification benefits.
Overall, Parag Parikh Flexi Cap Fund Direct Growth is a suitable investment option for investors looking for a well-diversified equity fund with a flexible investment approach and exposure to international markets. However, as with any investment, investors should consult with their financial advisor and do their due diligence before investing in this fund.
-> This fund was launched on 13/05/2013 and has been in existence for 9 years 11 m.
-> Assets under Management (AUM) worth ₹31,290 crore as on 31/03/2023
-> Last one year return is 6.43%. It gave an average annual return of 18.69%.
-> Every 3 years the fund has doubled the money invested in it.
-> Most of the fund’s money is invested in financials, services, technology, consumer staples and energy sectors.
-> 5 holdings are in Housing Development Finance Corporation Limited, ITC Limited, Bajaj Holdings and Investments Limited, ICICI Bank Limited and Microsoft Corporation (US).
3) PGIM India Midcap Opportunities Fund Direct Growth
PGIM India Midcap Opportunities Fund Direct Growth is an open-ended equity fund that invests in mid-cap companies in India. The fund aims to generate long-term capital appreciation by investing in high-quality mid-cap companies with strong growth potential.
The fund follows a research-based investment approach, focusing on fundamental analysis to identify quality mid-cap companies with a competitive advantage, strong management, and growth potential. The fund manager takes an active approach to stock selection, constantly monitoring the market and making adjustments to the portfolio as needed.
The fund has a proven track record of delivering consistent returns over the years, outperforming its benchmark and peers in the long run. The fund has a relatively high expense ratio compared to other equity funds, which may be a consideration for some investors.
Overall, PGIM India Midcap Opportunities Fund Direct Growth is a suitable investment option for investors looking for exposure to mid-cap companies in India with strong growth potential. However, as with any investment, investors should consult with their financial advisor and do their due diligence before investing in this fund.
-> This fund was launched on 11/11/2013 and has been in existence for 9 years 5 m.
-> Assets under Management (AUM) worth ₹7,812 crore as on 31/03/2023
-> Last one year return is 2.76%
-> Paid 18.10% average annual return
-> Every 3 years the fund has doubled the money invested in it.
-> Invest in financial, healthcare, capital goods, chemicals and services sectors
-> 5 Holdings ICICI Bank Limited, Federal Bank Limited, Ashok Leyland Limited, Cummins India Limited, Max Financial Services Limited.