Mutual funds are good for long term wealth creation. You can start mutual funds SIP and invest monthly in mutual funds. There are 1000 of mutual funds in India. This blog to help you on selecting the best mutual funds to invest in 2020 and analyze the mutual funds. Before start your investment in mutual funds, ask below question to select the best fund for you.
- What is the financial goal for the fund?
- Do you need money to buy a car in the next 2 years?
- Do you need money for your marriage in next 5 years?
- Do you need money to buy a house in 8 years?
- Do you need money for your kids education in next 20 years?
- Do you need money for my retirement in 30 years?
It is advisable to select invest in gold or debt mutual funds for short term financial goals for up to 2 years. In case your investment horizon for more than 3 years, you can start investing in equity mutual funds.
Investment horizon and fund type:
- 1-2 years Investment Horizon: Invest in Debt Mutual Fund.
- 3-5 years Investment Horizon: Invest in Balanced Fund / ELSS funds.
- 5-7 years Investment Horizon: Invest in Large Cap Fund/Index mutual funds.
- More than 7 years time horizon: Invest in Small & Mid Cap Fund.
- For Retirement/Kids education : Nifty Index funds
Axis Bluechip Fund direct growth fund :
This fund has following pros and it can be used for long term investment.
– Large cap fund
– Expense ratio 0.47%
– 11,000 crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 500
Mirae Asset Tax Saver Direct growth Fund :
– Large cap fund and ELSS(tax saving) fund
– Expense ratio 0.74%
– 2,600+ crore AUM
– No Exit load
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 500
Axis Long Term Equity direct growth fund:
– Large cap fund and ELSS(tax saving) fund
– Expense ratio 0.93%
– 17,500+ crore AUM
– No Exit load
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 500
Mirae Asset Emerging Bluechip Growth Direct Plan
– Large & Mid cap funds
– Expense ratio 0.92%
– 7,400+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 1000
Axis Focused 25 Growth Direct Plan
– Focused fund to invest on top 25 companies
– Expense ratio 0.65%
– 8,100+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 1000
SBI Focused Equity Direct Growth Fund:
– Focused fund
– Expense ratio 0.87%
– 7,000+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 500
DSP Equity Direct Growth Fund:
– Multicap fund
– Expense ratio 0.92%
– 2,700+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 500
UTI Nifty Index Growth Direct Plan :
– Nifty index fund
– Expense ratio is very less 0.1%
– 1700 + crore AUM
– Minimum SIP 500
– No exit load
UTI Nifty Next 50 Index Growth Direct Plan:
– Nifty Junior index fund
– Expense ratio is very less 0.27%
– 450+ crore AUM
– Minimum SIP 500
– No exit load
Axis Midcap direct growth fund:
– Midcap fund
– Expense ratio 0.56%
– 4,400+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 1000
Axis Small Cap Direct growth fund:
– Smallcap fund
– Expense ratio 0.29%
– 1,800+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 1000
SBI Small Cap Direct Growth Fund:
– Smallcap fund
– Expense ratio 0.93%
– 2,700+ crore AUM
– It returned better than it peers
– It returned better than nifty index fund
– Minimum SIP 500
In case you want to invest more than one fund, validate overlap of portfolio funds. It should not overlap more than 70% of portfolio of the funds. It overlaps better to invest in one fund. if you are starting new funds, be sure you are not investing in an area that you already have in your portfolio. Overlap occurs when an investor owns two or more mutual funds that hold similar securities.Investing in same portfolio would reduce the benefits of diversification by increasing exposure to those same stocks — an unwanted increase in market risk.
Investing in mutual funds for beginners, how to start investing in mutual funds