Depending upon your risk profile and longevity of holding period, you can chose between various how to invest in mutual funds online, equity and balanced funds. 10 best funds available in the market today. The list has considered funds’ consistency over the long term, volatility, ability to deliver returns commensurate with risk levels, and investment style, and is a mix of pure equity, pure debt, and balanced funds.
This is a pure large-cap fund. Given that mid-caps are overheated and likely to correct further, sticking to large-caps is a prudent move. A quality large-cap fund, it beats the Nifty 100 index, the representative index for large-cap stocks, all the time in both the short-term and long-term. It is similarly consistent in beating category average.
It maintains a higher-than-average risk-adjusted return. While financials and energy are its biggest sectors, it also holds good exposure to automobiles and consumer durables, besides dark-horses healthcare and software. This fund is the best in its category in terms of consistency in beating the Nifty 500 index and category average. Being a diversified or multi-cap fund, it can provide a mid-cap exposure while keeping a control over risk.
Its risk-adjusted return is also well above the category average. Its current portfolio balances both consumer sectors and cyclical ones, allowing it to make the best of all opportunities. This fund is able to beat its category average and the Nifty 500 index almost all the time when 3-year returns are rolled over 5 years. It is especially good at containing downsides during market corrections. Its volatility is marginally lower than the category average, while its risk-adjusted returns are much better. Aggressive index all the time by an average margin of 7 percentage points. Owing to a higher-than-average exposure to equity, and within that in mid-cap and small-cap stocks, the fund’s volatility is on the higher side.
Its risk-adjusted returns, though, hold strong above the category. This fund is consistently better than its category. It posts above-average returns and has among the best risk-adjusted returns of its category. With volatility being inherent in a dynamic bond fund, this fund has managed to keep its volatility lower than most peers.
The fund has maintained an average maturity of 17-18 years for most of 2016, reaping good returns from the bond yield rally. With some steam still left, the fund can continue to deliver well. This income fund is an option for those who cannot take volatility in their returns and prefer a steady approach. It still manages to deliver above-average returns compared to other income funds that take some amount at least of credit risk.
Its risk-adjusted return is close to the best in its category. This fund is an option for those with a short-term requirement of around one year. An ultra-short term bond fund, it keeps its average return well above its category. Rolling the fund’s one-month returns daily over the past five years shows that it has never delivered losses unlike some ultra-short term bond funds. Its volatility is much below average.