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 aof 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 lump sum 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 –
Moderate risk: Hybrid Funds –
High risk: Large Cap –
You can split your lump sum investment among the above three portfolios.