Mutual funds are the best investment options that are available for investors in terms of different risk/return paradigms available and ease of investments. You get to choose between various equity, debt and balanced funds depending on your risk profile and longevity of the holding period. The number of mutual funds that are available to the general public has increased very significantly over the last few years. Here are few mutual funds that considered best for one time investment:
Birla Sun Life Frontline Equity
Birla Sun Life is a large cap fund. It beats the Nifty 100 index which is the representative index for large- cap stocks for both in the short term and long term plans. It takes an exposure of around 10% in the mid-cap stocks too. It holds good exposure to consumer durables and automobiles besides the dark-horses healthcare as well as software and at the same time maintaining energy and financials as its biggest sectors. This mutual fund is suitable for investors who seek long-term capital growth investments in equity and equity related securities.
ICICI Prudential Focused Blue-chip Equity
ICICI Prudential Focused Blue-chip Equity is a pure large- cap fund. When this fund was rolled over for a three- year period over the past five years, this fund has been ahead of both its benchmark. Its current portfolio is a mixture of the beaten- down healthcare, financials and energy. It is not that volatile as other large- cap funds but has better risk- adjusted returns.
The Tata Balanced fund’s volatility is on the higher side and its risk- adjusted returns hold strong above the category. When this fund’s 3 year returns over 5 years has a win over the CRISIL balanced fund by an average margin of 7% points. The fund has reduced its gilt exposure and has moved into the money market instruments to be on the safe side and await the market movements.
Franklin India Prima Plus
The Franklin India Prima Plus has beaten Nifty 500 index and its category average all the time when their 3 year returns were rolled over for 5 years. It is a well-diversified fund which puts about 30% of its portfolio in the mid-cap stocks and has a significant share of financials. Its risk-adjusted returns are also much better.
HDFC Medium Term Opportunities
The HDFC Medium Term Opportunities fund is an option for those who cannot take volatility in their returns and always prefer a steady approach. It manages to deliver above-average returns when compared to other income funds that take a particular amount at least of credit risk.
UTI Treasury Advantage
The UTI Treasury Advantage fund is an option best for those with a short term requirement of more less an year. It keeps its average return well above its category. When the fund’s one month returns were rolled over the past five years, it never delivered losses unlike other ultra-short term bond funds. This credit exposure can allow better return generations in short term based on the interest rates steadily falling.
ICICI Prudential MIP 25
The ICICI Prudential MIP 25 fund is well ahead of other debt- oriented funds that manage nearly all the time going by its 3 year rolling return over five years. This fund puts around 22-25% of its portfolio in equity. Its risk-adjusted return holds above the average. Based on its rolling return, the average margin with which it beats the benchmark CRISIL MIP Blended index is also quite strong at around 2% points.
With the increase in the number of mutual funds investments in India, there is a significant increase in the number of mutual fund aggregators, with the help of such aggregator it becomes easy to choose the best one.