In this case, investing predominately in equity funds would be a better option than investing in debt funds, as equities have the potential to generate higher returns than debt funds. So, equity mutual funds are best for investors looking at long-term wealth creation to achieve long-term goals like building a retirement corpus. Mutual funds, like individuals, have specific investment objectives, and it is up to the investors to determine whether their goals align with the mutual fund scheme in which they will invest.įor example, one of the objectives of equity mutual funds is wealth creation. Once you’ve determined your needs, you’ll need to compare them to the objectives of a mutual fund scheme to see if investing in them would help you to achieve your financial goals. You should undertake any investment only after a thorough examination of your life goals.
This section will highlight some of the factors that can help you identify the top 10 best mutual funds to invest in today. We all want to know the best mutual funds to invest now. Top Performing Mutual Funds to Invest In India Debt mutual funds that are relatively less volatile than equity funds may help you achieve your goal of buying a sedan. If your second goal is to buy a sedan in the next three years, then investing in equity funds for this goal might not be the best option. Large companies are better able to tide over business cycle downturns than small cap companies. A small-cap fund carries more risk than a large cap fund as a large cap fund invests predominately in large companies that are market leaders with strong financial positions. Here, you can decide to invest in a large cap fund or small-cap fund based on your risk-taking capacity. However, there are other sub-categories within equity mutual funds, such as large cap funds, mid-cap funds, and small-cap funds.
It is this case, as you are investing for the long term, equity mutual funds can be the best option for you. The best mutual fund for you will be the mutual fund/s suitable for your investment objectives, risk tolerance, and investment horizon.įor example, let us assume you are building an investment corpus for your child’s higher education after 15 years. So, there is not one mutual fund that is best for everyone. These funds have different risk profiles and investment objectives. We can segregate mutual funds based on their underlying assets such as equity, debt or gold into different categories, such as equity mutual funds, debt mutual funds and hybrid funds.
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