Best Mutual funds in India

Best mutual funds in India are so many that one will get confused. Most of the new investor look for this phrase in google. Based on the funds performance best mutual funds make way to the top. In this article we will discuss on how to identify the mutual fund that suits your goal and risk Profile.

Important terms in Mutual Funds

Expense Ratio

It is an important term for each investor to understand. Over a long period even 0.5% makes a huge difference. Generally Expenses ratio vary between 0.1 % and 2.5 % . On an average Expenses ratio for index fund is lower when compared to active funds.

For Index fund on an average it is around 0.25% and for active funds it range between 0.75% to 1.25% and in certain cases its much higher. So while selecting the mutual fund make sure you have a look over the Expense Ratio.

Expense ratio’s is charged once a year. so the confusion arise is it charged on the profit you make in a year or the invested amount. To help you understand the charges and why even a small percentage difference make a huge impact. Lets have a look at the example below.

Example

Imagine two Best Mutual Funds of India. Generating a return of 10% . Fund A charging 1% and the Fund B charging 1.5 % as expense ratio. So when we consider an invested amount of Rs.1 Lakh. we will achieve a return of Rs. 10,000/- and once we deduct the expense ratio. Fund A will give a net profit of Rs.9,000/- and Fund B will provide a net profit of Rs.8,500/– so i hope we are clear about the importance of Expense Ratio.

Exit Load

The word exit load clearly specifies that its charged once we withdraw the invested amount. So you will be discouraged by looking at charges each fund house levy on investor. Here we have a bit of relaxation in Exit load charges.

The Exit load is charged only when the funds are withdrawn by investor within a specified period of time. Usually Exit load is 1% and it is levied only if funds are withdrawn within one year. This is done to discourage investor from withdrawing funds within a year. There might be certain exemptions were fund house charge Exit load even after a year but that’s too rare to happen.

Let’s understand how Exit load is calculated.

Taxability

An investor is taxed on 2 different types of earnings Dividends and Capital gains. The taxes on dividends are generally cleared by AMC ( Asset management company) in the form of dividend distribution tax. Other taxes are required to be paid by investor.

Capital gain tax – Short term capital gain is taxed at the rate of 15% in such case when the amount is redeemed within a year. whereas Long tern capital gain is taxed at the slab rate of 10% when the profit is above 1 lakh.

Fund Managers

Fund managers play a very important role in the success of any mutual fund which they manage. So make sure you also look for past performance of the managers. How long these managers are associated with the fund house.

Also look if any fund house is keep changing there fund managers any reason as to why change has taken place etc., this will give you an insight on whats going on the Fund house.

Lets have a look at Best Mutual funds in India.

The list is prepared keeping various aspects in mind. So also note that this is not an advice to invest in any funds mentioned in article. Based on the funds performance i have listed down some top funds. And Please do your research before taking any decision.

Funds are suited for long term investor. Because if we are invested in the market for longer period. It absorbs the temporary fluctuations.

Its majorly preferred by small retail investors. As the investment SIP required is very small and affordable. so one can start investing in BEST PERFORMING EQUITY FUNDS OF INDIA with as low as Rs.500 Via SIP.

Advantages of these Funds

Equity Funds are managed by professionals. They take the responsibility of generating stellar returns. So we don’t have to worry about market fluctuations or any such scenarios. Because fund managers take care of everything.

As mentioned SIP investment size is small and as low as Rs.500 one can start investing in India’s best performing Mutual funds without any hassle.

you might think what if any fund house scam us , so here comes SEBI. It helps in maintaining transparency in the transactions.So Every fund house in India is asked to publish daily NAV Price and keep the portfolios updated in the website.

Closer look at best mutual funds of India

Axis Bluechip Fund and Axis Multicap fund

This fund comes under AXIS MUTUAL FUND Which was incorporated on 04 Sep 2009 and currently manages around 1.37 Lakh Crores.

1.Top holdings of Axis Bluechip fund are HDFC Bank Ltd, Bajaj Finance Ltd, Infosys Ltd, etc. So In past 3 Years the fund has manages to provide a return of 16.7% and minimum investment amount Rs.5000 for 1st investment and Rs.100 from 2nd investment onwards. Rs.500 Minimum for SIP

2. Top holdings of Axis Multicap fund are Bajaj Finance Ltd, HDFC Bank Ltd,Infosys Ltd etc. so In past 3 Years the fund has manages to provide a return of 16.6% and minimum investment amount Rs.5000 for 1st investment and Rs.100 from 2nd investment onwards. Rs.500 Minimum for SIP

PARAG PARIKH LONG TERM EQUITY FUND

PPFAS Mutual fund manages this fund, it was incorporated on 10 Oct 2012 and currently manages 3428 crores.

3. Top holdings of Parag Parikh Long term Equity Fund are Alphabet Inc Class C, ITC Ltd, Amazon.com Inc (USA) etc,. So during the previous 3 years fund has managed to provide a return of 15.39% and require a minimum investment of Rs.1000.

ICICI PRUDENTIAL TECHNOLOGY FUND

This particular mutual fund comes under ICICI PRUDENTIAL MUTUAL FUND which was incorporated ON 13, OCTOBER, 1993 and currently manages around 3.2 Lakh crores.

4. Top holdings of ICICI prudential technology fund are Infosys Ltd, HCL Technologies Ltd, Tech Mahindra Ltd, Etc. So, In past 3 years the fund has managed to Provide a return of 30.1% and minimum investment amount Rs. 5000 for 1st investment and Rs.1000 from 2nd investment onwards. Rs.100 Minimum for SIP.

NIPPON INDIA PHARMA FUND

NIPPON INDIA MUTUAL FUND manages this fund, as it was incorporated on 30 June 1995. It is able to manage around 1.78 Lakh Crores.

5. Top holdings of Nippon India Pharma Fund are Aurobindo Pharma Ltd, sun Pharmaceutical Ltd, Divi’s Laboratories Ltd Etc,. so, in the past 3 years the fund has managed to provide a return of 22.6% and minimum investment of Rs. 5000 for 1st investment and Rs.1000 from 2nd investment onwards. Rs.100 Minimum for SIP.

CONCLUSION

So i hope there is enough of information provided in the above article to start your investment journey. Always remember to do your own research before making any investment decision. This article is for Education purpose.

If you love reading checkout our other article on savings hacks.

Till then byee…………………………See you on another such informational article.