The best mutual funds depend on how long are you willing to hold the investments and how much risk you are able to stomach.

Best Mutual Funds

First, you need to identify the category of Mutual Funds suitable for your investment needs.

According to the table, identify the right category.

Second, you need to pick the top-performing funds from the respective category.

  • Consistent performance in last 1, 3 and 5 years
  • Right-sized AUM fund
  • Asset allocation consistent with the investment strategy
  • Good track record of the fund manager

Third, you should build a portfolio of mutual funds with the selected mutual funds. Since no one mutual fund can be best, you should diversify your investments in the top performing ones to reduce the risk.

1 lac Investment plan

For lumpsum investments, there is another factor to consider – market situation. Currently, markets are trading at a high valuation. Therefore, the right strategy is to invest conservatively.

Low risk: Debt funds – Better than FD returns with Debt Mutual Funds – Groww

Moderate risk: Hybrid Funds –Balanced Funds Portfolio – Groww

High risk: Large Cap – Large Cap Funds Moderate Risk – Groww

You can split your lumpsum investment among the above three portfolios.

Happy investing!