Thursday, 26 April 2018

3 Best Mutual Funds to Invest for Beginners in 2018

Posted by RaviKumar Nama
(Created on 24-Apr-2018)

Many new readers are asking me about Mutual funds to start their investments. I think all these readers are new to the investments and start their investments with Mutual funds. This is a good sign for choosing Mutual funds as one of their Investment portfolio. The recent developments in our country is also encouraging investments in Mutual funds. Reducing Bank FD rates, Uncertainty on  Gold prices and post impacts of Demonetization are the main causes for diverting the Investor's choice towards Mutual funds. The track record of Mutual funds, ease of investment process and SIP approach with smallest amount also the added advantages to the Mutual funds. We just need small patience in researching and finalizing the right Mutual funds according to our Risk profile. Based on my research, I have identified the following Mutual funds to invest for beginners (or any investor) in 2018.



Points to Remember Before Investing:

  1. Investing in Mutual funds should have time horizon of at least 5+ years
  2. Mutual Funds are subject to Market risks. Hence, you need to choose the Mutual funds based on your Risk profile.
  3. Diversify your Mutual fund investments into more than 1 Mutual fund. Do not invest all your investment amount into 1 Mutual fund.
  4. Choose different Mutual funds from different Fund houses.
  5. Monitor your Mutual fund investments for a minimum of once in a year.

Best Mutual Funds to Invest for Beginners in 2018:

1. Invesco India Growth Fund:

Invesco India Growth Fund is one of the best and consistent performer in Large cap Mutual fund segment. From the last 5 years this fund has been giving 20%+ returns which is the best yielding in its category. The portfolio having 65% large cap stocks and the remaining in Mid & Small cap stocks. Hence, this is good for Beginners to invest for long term. Top 5 sectors include Financial, Energy, Automobile, Healthcare and FMCG. All these sectors are promising sectors in the coming years. The top 5 stocks are included HDFC Bank, Reliance Industries, Indus Ind Bank, Maruti Suzuki and ICICI Bank. Right mix of growing industries and stock selection making this fund as one of the most favorable Mutual fund in Large cap Mutual fund category.



2. Tata Retirement Savings Fund:

Tata Retirement Savings Fund is a best Balanced Mutual fund and is suggestible to all kind of Investors for long term purpose. From the last 5 years, this fund has yielded 20%+ and is comparable to any other Equity Mutual fund. 75% of its portfolio consists in Equity and remaining in Debt. Hence, it gives better returns than any Debt Mutual fund and better safety provider than any Equity Mutual fund. Any beginner can first start their investment with this fund. Top 5 sectors are Financial, FMCG, Services, Automobile and Construction which are consistent growing sectors. The portfolio includes stocks such as HDFC Bank, Maruti Suzuki, L&T, Hindustan Unilever etc.



3. SBI Magnum Children's Benefit Plan:

SBI Magnum Children's Benefit Plan is one of the best Debt Mutual fund and is best suitable for new parents to save for their kids or suitable for any long term goals. The superb and consistence performance given by this fund making it as No.1 Debt Mutual fund in its category. Performance wise, it is far ahead from the other Mutual fund in its category. Those who are very low in their risk-profile can choose this fund for their long term goals. From the last 5 years, this fund has been giving 15%+ returns which is better than your Bank FDs. The portfolio consists of 75%+ in Debt & Cash and the remaining in Equity. Hence you can expect safety as well as better returns than any other Debt instruments. Please note that you need a child account to invest into this MF. This is the major limitation to invest into this Mutual fund. But, this fund is best suitable to open on behalf of your minor kids.

Conclusion:

Investing into Mutual funds through SIP approach for long term is a proved successful investment approach for all category investors. The above mentioned Mutual funds are identified based on my own research. Please do your own research before investing.

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