Channeling a certain portion of your salary towards mutual funds each month smartly can not only grow wealth but also become financially secure. However, choosing the right mix of funds - equity, debt and hybrid - can be a tricky affair. Let us explore some of the best mutual funds for salaried individuals with respect to their risk appetite, financial goals and investment horizon.
When picking the right mutual fund for salaried individuals, it is important to look at several aspects such as risk, diversity, and tax benefits. Here are some of the best mutual funds for salaried individuals based on their 3-years annualised returns.
(Data as of February 13, 2025)
Fund |
Type |
3Y Annualised Returns |
Equity |
28.78% |
|
Equity |
28.43% |
|
Hybrid |
20.36% |
|
Hybrid |
19.47% |
|
ELSS |
22.95% |
|
ELSS |
21.14% |
|
Retirement Fund |
19.10% |
|
Retirement Fund |
18.80% |
There are several key aspects that a salaried person should know about before investing in the best mutual funds for salaried individuals.
If you’re earning a fixed salary each month, it is important to create a financial plan and have a financial goal in place. Understand the same to pick the right mutual fund scheme.
Risk plays a crucial role when making investment decisions. Young individuals who have just started their career, can take on more risk compared to someone more experienced. Picking a mutual fund that fits within your risk profile can help you stay invested for a longer period of time and ride the waves of short term volatilities.
Diversifying can help investors build a sound and well-rounded portfolio. Along with diversifying in various companies and sectors, investors should also diversify across asset classes to stabilise growth and mitigate risk.
Certain funds require regular monitoring and adjustments to your portfolio. Additionally, your experience in the markets plays an important role as well. Hence, you will need to consider the time you can allocate towards your portfolio when investing.
A systematic investment plan (SIP) is a handy tool that allows you to invest a small portion of their salary each month. This eliminates the need for a higher capital and helps investors stay invested for a longer duration.
Consider the tax implications before investing in a mutual fund. Depending on the type of the mutual fund and investment duration, the tax treatment and capital gains tax can vary. Additionally, certain funds like the equity-linked savings schemes (ELSS) offer tax benefits to investors.
There are several key advantages of investing in mutual funds for salaried individuals.
Investing in mutual funds for salaried individuals is easy and accessible. With numerous options and various types of mutual funds, an investor can build a portfolio that aligns with their risk profile and financial goals.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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