Mutual funds are best investment in india. It is easy to start mutual funds investment. Analyse the mutual funds are easy with the help of source from the internet and attributes of mutual funds. Let us see why mutual funds considered best investment,
Experience of fund manager and Diversification of investment.:
Each mutual fund is managed by experienced fund manager. Fund manager selects the best stock or instrument to invest based on fund goal and objectives. Fund manager invests and diversify the investment for better returns and lower the risk.
Categories based on Goals and interest:
Mutual Funds come with a wide variety and options including asset class, strategy and risk levels. In terms of asset class you can choose from Equity, Debt, Hybrid and Gold funds. In terms of strategy, you can get Capital Protection, Credit Opportunities, Equity Savings and Income funds etc. You can even choose from Active as well as Passive styled funds.
It is require just 1 hour, to analyze and select the one best mutual fund to start. STart now.
Transparency and easy to understand:
Detailed information about the objective, investment strategy, financial information, comparative ratios, portfolio disclosures, risks etc. are available about each and every scheme. You can do easy comparison using a variety of online tools and choose a scheme that suits your investment objective and risk profile.
Regulation and Expenses:
SEBI regulates the Mutual Fund industry and is one of the most proactive regulators and has taken several steps along with the MF industry to make mutual funds more transparent and accessible for investors. Mutual Funds still are one of the lowest cost investment instruments. MFs in India usually have the lowest costs. The expenses are fully disclosed in the offer document of the scheme and what you see is what you get.
One does not need a large sum to invest in mutual funds. Start small with 100 rupees
Accessibility and Start with 100 rupees monthly :
You can invest as little as Rs. 100 in a mutual fund scheme, making it accessible by even the smallest of the savers.
Understanding of mutual funds takes maximum 10 hours your time.
Now next task to select the best fund to invest. There is a good way to fund selection, and that can be achieved by doing your own research. Here is what you need to consider:
How to Analyse and select the Mutual funds ?
Search top RATED and best funds from trusted source:
Moneycontrol, valuerearch, Kuvera and many more mutual fund website provide top rated and best mutual funds in each category. Select the top 3 funds in each category.
https://www.crisil.com/en/home/what-we-do/financial-products/mf-ranking.html
http://www.moneycontrol.com/mutual-funds/top-rated-funds
https://www.valueresearchonline.com/funds/repcard.asp?order=desc&type=1&objective=Equity&returns=R1Year&x=10&y=7
https://kuvera.in/explore/all/all
https://blog.feedspot.com/mutual_fund_blogs/
Performance and risk analysis
This is to analyse if the fund has shown consistency in performance across various market periods with decent risk-adjusted returns. Under this, the fund needs to be ranked on quantitative parameters like rolling returns across short-term and long-term periods such as 1-year, 3-years and 5-years, and on risk-reward ratios like Sharpe Ratio, Sortino Ratio and Standard Deviation over a 3-year period.
Portfolio Quality
Adequate Diversification – The scheme should not hold a highly concentrated portfolio. The portfolio should be well diversified and the exposure to the top 10 holdings should be ideally under 50%.
At age of 27, it is easy to understand and manage 7 mutual funds.
Credit Quality and Expenses :
For debt portfolios, you need to ensure that the fund does not hold a high proportion of low-rated (securities rated AA or below) or unrated debt instruments. A fund with a higher credit quality should be ranked higher. Compare the expense ratio, alpha ratio of the each funds .
Quality of Fund Management:
Check the fund manager’s experience, his workload and consistency of the fund house. Therefore, you could check –
The fund manager’s work experience – He/she should have a decent experience in investment research and fund management, ideally over a decade.
The number of schemes managed – A fund manager usually manages multiple schemes. Thus, you need to check if the fund manager is not loaded with a large number of schemes. If he is managing more than five open-ended funds, it should raise a red flag.
The efficiency of the fund house in managing your money – You need to check if the fund house is consistent in performance across schemes or if only a few selected schemes are doing well. A fund house that performs well across the board is an indication of sound investment processes and risk management techniques in place.
At age of 27, it is easy to understand and manage 7 mutual funds. Analyze the one mutual funds would take maximum 1 hour. Select 7 mutual funds for better investment. Start your investment journey today…
“Don’t work for money. Make money work for you”
At final,
Select one or two funds for each of your goals. Maximum 5-7 funds in your portfolio including one for your retirement, 2 mutual funds for long term wealth creation. Start all your mutual funds in SIP mode. Happy Investing 🙂