For last many years stock market have become fast moving and is giving high returns to the investors increasing the profit of the Mutual Fund investor who also invests in stock market. By looking at these returns many investors have started investing in mutual funds. Also there are many schemes available for investment most popular among these is Systematic Investment Planning (SIP). The biggest obstacle for the investor to invest in mutual fund is to decide in which mutual fund to invest in. Before looking at the schemes, you may invest in based on your investment objectives and risk appetite.
How to Create Mutual Fund Portfolio?
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- First step here is to select some schemes which are giving consistent returns and the growth is visible. One can do research on internet and even can consult any mutual fund advisor.
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- Secondly, the selected schemes should be analyzed whether they are matching with the financial objective of investor and how much risk factor is present and how much risk the investor is ready to take.
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- If after analyzing various schemes, the investor ends up selecting multiple schemes, he should decide what amount of money should be invested in a particular scheme keeping in mind the risk and return pattern the scheme carries.
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- It is also important once the funds are invested they should be regularly monitored. If any difference is seen in the expected and actual results, corrective actions should be taken. There are generally three types of investors- Conservative, moderate and aggressive investors. Depending upon the pattern of investment best investment options in India are shown below.
For Conservative Investors
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- LIC Mutual Fund Debt Hybrid fund
- SBI Bluechip fund
- ICICI Prudential Regular Savings Fund
- UTI Regular savings funs
- Aditya Birla Sun Life Regular Savings Fund
For Moderate Investors
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- Motilal Oswal Multicap Fund
- ICICI Prudential Bluechip fund
- SBI Bluechip fund
- Tarus Tax Shield fund
- Quant Tax plan
- Other principal tax savings funds
For Aggressive Investors
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- DSP Multicap Fund
- HDFC Midcap Opportunities fund
- L&T Multicap fund
- SBI smallcap fund
- Canara Robeco Bluechip Equity Fund
- Reliance Liquid Fund Growth
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The best mutual fund decision is completely subjective and depends on the percentage of risk the investor is ready to take, the rate of return investor expects, financial goal of the investor etc. It is very much important to select a proper investment plan as people invest their lifetime earnings and selecting a wrong plan will cause them a huge drawback. Mutual fund is the best option for investors but it can prove to be risky because they are subject to market risk and as we all know market is highly volatile. Even they carry high expense ratio and diluted returns. So it is important to invest in mutual fund after having proper portfolio.