The top mutual funds schemes under various categories are generally enlisted based on their mutual fund ratings. Top mutual funds are broadly divided based on the investor’s short term goals ranging from 1-3 years, medium-term goals ranging from 4-6 years and long-term goals ranging from 7 years and above. Mutual funds are also ranked on the basis of their overall risk-adjusted performance as compared to their counterparts in the same category.
ELSS For Tax Saving
For the past few years, investing in equity-linked saving scheme (ELSS) funds has been considered to be one of the most prudent investment decisions for investors. ELSS has topped the chart in most annual ranking as the top mutual funds and also as one of the best instruments for tax saving. These score high on nearly every parameter. These are considered to be very transparent. Moreover, they offer high liquidity and tax-free gains, have given high returns and have very low charges. The only drawback is that they are slightly riskier when compared to various other tax saving instruments.
Mutual fund investors are also known as unit holders, as they share both the profit as well as the loss of a business. Mutual funds investing involve pooling the resources of specific group of people and using it for investing in various sectors and industries. This type of diversification gives the investor an opportunity to reduce their risks related to investing money in the stock market. While investing in mutual funds for a long-term, you must consider seeking the knowledge and expertise of a proficient fund manager. These expert advisors will help you to make prudent investment decisions.
Top Mutual Funds for Medium-term and Long-term Goals
The most profitable mutual funds for investors keen on meeting medium-term goals include a mix of equities and debt. These funds are known to offer the best of both worlds. A balanced scheme that invests in a proportionate mix of both equities and debt is considered less risky and more stable. While the equity segment will boost your returns during the bull runs, your debt segment will act as a cushion during the market’s decline. On the other hand, one of the highly recommended and preferred investment options investors opt for these days include mutual funds ideal for long-term investment.
Similar to most other forms of investments such as commodities, stocks and currencies, mutual funds for long-term investment also have some risks. Yet at the same time, these offer plenty of benefits too. These benefits override the risks and make them an ideal investment option for people who are new to the investment market scenario and also for individuals who are keen on diversifying their portfolio. Always keep in mind that when choosing top mutual funds to invest in, you must consider your willingness to take risk along with your investment objectives. Moreover, you must consider the past performance of the scheme as it will give you a fair idea on how these schemes could perform in the future.