Investing in mutual funds in India is one of the most popular ways to invest large amounts of money. Mutual funds are a type of investment managed by professional fund managers.
According to their research and analysis, these managers buy and sell securities (such as stocks, bonds, and money market instruments). These investments can be made through a broker or directly with the fund manager.
There are several types of mutual funds in India. Some of these include equity funds, debt funds, balanced funds, hybrid funds, etc., Investors can choose from different types of mutual fund schemes depending on their needs and financial situation at any point in time.
If you want to invest Rs 1 lakh, in this blog, we have listed some of the best options to consider.
Mutual funds are often considered one of the best way to invest 1 lakh. It offers investors access to a broader range of investments than they would get if they were investing in individual stocks or bonds. Mutual funds typically have thousands of different stocks, bonds, and other types of securities in their portfolios at any time.
This gives investors more options when deciding how much money they want to put into the fund's portfolio to diversify their investments and ensure they're investing in different market areas.
Below are a few factors to consider when investing in mutual funds and choosing the right one for yourself.
It would be best if you also considered the investment horizon of your mutual fund. This can be measured as a period, such as five years or 20 years. Make sure that the fund's average annual return is high enough to meet your financial goals by this period.
If you have a high-risk tolerance and want to invest in a growth-oriented fund, you may want to consider funds with higher risk-reward ratios, which offer higher returns over shorter periods than other funds.
In addition, these funds typically have lower returns over more extended periods than different types of funds; however, they also offer more growth potential over shorter periods than other types of funds.
Any investor needs to have a long-term financial plan and goals before investing in mutual funds because this will help determine how much risk they are willing to take on with their investments so that they can reach those goals at some point down the road!
The first factor to consider is whether the fund has beaten its benchmark or category over some time. If it has not been able to beat its benchmark or category, it might be better off investing in other funds.
The second factor to consider is whether the fund has consistently performed over time. If there are gaps between when a particular fund outperforms or underperforms compared to other funds, this may indicate that there is something wrong with how it works as an investment vehicle.
The third factor to consider is whether a fund manager has worked with multiple companies in a specific industry or sector.
This will give investors confidence that someone who knows how these companies work and what their success factors are will be able to improve overall returns for all investors who invest in the same mutual fund through that manager's expertise.
Investing in a mutual fund is a great way to invest your money. However, it's essential to keep in mind that there are risks involved. If you're not careful, investing in a mutual fund could be risky and result in losing all of your money.
Therefore, it's essential to do your research before investing a large amount of money in any mutual fund in India.
The AMC track record is one of the most important things to check before investing. It would be best if you looked at their performance over time to see how well they have performed over time. The AMCs with better track records tend to be more trustworthy than other AMCs out there, so you should always choose one with an excellent track record before investing any significant amount of money into one of their funds.
Before investing in a mutual fund, you should consider the risk involved. Mutual funds are typically more efficient than stock markets and can be more effective at achieving your investment goals. However, they also have higher chances.
Mutual funds have higher fees than other investment options and have less liquidity than stocks. This means that it might take longer for your money to reach its target destination, or it could be lost entirely if the fund does not perform as expected; this is why it's essential to investigate all of your options before investing large amounts of money in any investment vehicle.
As the name suggests, Axis blue-chip fund-growth invests in blue-chip stocks, or stocks of predominantly large companies, which are financially sound and well established. As a result, the stocks are less volatile than mid-cap and small-cap stocks, traded frequently, and have adequate liquidity.
The stocks that the Axis Blue Chip fund intends to invest in have the potential to perform long-term due to their proven track record.
The scheme aims to generate long-term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity-related instruments of large-cap companies.
ICICI Prudential Technology Direct Plan-Growth is an Equity Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993. S Naren, Ashwin Jain is the Current Fund Manager of ICICI Prudential Technology Direct Plan-Growth fund.
The scheme will seek long-term capital appreciation by investing in equity and equity-related securities of technology and technology-dependent companies.
Aditya Birla Sun Life Tax Relief 96 Direct-Growth is an Equity Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. Ajay Garg is the Current Fund Manager of Aditya Birla Sun Life Tax Relief 96 Direct-Growth fund.
The scheme seeks long-term capital growth and will invest approximately 80 per cent of its assets in equity, while the balance would be invested in debt and money market instruments. It was converted to an open-ended scheme with effect from July 1999. A combination of top-down & bottom-up approaches will be followed in the stock selection process.
Quant Tax Plan Direct-Growth is an Equity Mutual Fund Scheme launched by Quant Mutual Fund. This scheme was made available to investors on 15 April 1996. Sanjeev Sharma, Shamil Mehra is the Current Fund Manager of Quant Tax Plan Direct-Growth fund.
The scheme aims to generate capital appreciation by investing predominantly in equity shares with growth potential. The secondary objective is to give dividends and other income.
SBI Technology Opportunities Fund Direct-Growth is an Equity Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 June 1987. Anup Upadhyay is the Current Fund Manager of the SBI Technology Opportunities Fund Direct-Growth fund.
The scheme seeks to provide the investor with the opportunity for long-term capital appreciation by investing in a diversified portfolio of equity and equity-related securities in technology and technology-related companies.
Investing in mutual funds in India is a good option for individuals who want to save for the future and make their money grow. Mutual funds are managed by professionals, and you can invest in them with a low entry fee. In addition, you will get regular returns on your investment, and they are tax-free.
Mutual funds are a great way to build your retirement fund. They typically have higher returns than bank deposits because they invest in stocks, bonds, and other assets that generate interest over time.
You can also use mutual funds to diversify your portfolio by spreading out your investments across different sectors or companies. This will help reduce risk and give you more opportunities for growth.
Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.
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Research Analyst - Bavadharini KS