Some people invest in mutual funds because they receive higher returns after some years. Although, the interest rates of mutual funds are speculative, they receive higher returns after some years. Usually, a person does not invest larger amount of his accumulated income in mutual funds, but just some portion of this wealth. Initially, a person seeks for financial security and hence he invests in financial institutions such as banks, postal savings, or some government schemes because they gain regular interest on investment. After accumulating wealth for a certain period, they begin investing in corporate sector, co-operative banks that provide higher returns. When a person finally becomes wealthy, then he plans to undertake some risk and invest in institutions such as mutual funds. A person who is not financially stable should not preferably invest in mutual funds.
Here are somes of well-known mutual fund schemes:
SBI Magnum Multicap
A person can open his account anytime for free. It is one of the most friendly investment platforms. Even NRI’s can acquire different schemes of mutual funds. People with small and mid capital investments have considerably gained over investment. Since 2019, it is included under Assets under Management of 6,398 crores. The rate of return after 5 years is 19.11%. The rate of rolling returns is 20.35% and the trailing return after 3 years is 12.6%. The minimum investment required is Rs, 1000.
Mirae Asset Emerging Bluechip
It is one of the top 5 mutual funds which yields higher rate of return and the rate of interest currently is 15.77% and the turnover ratio is 51.8%. People investing under this scheme can gain long-term capital appreciation and the equities are invested in large capital companies. But, the scheme does not assure a fair rate of return and the investors do not get any dividend on investment. But, they receive higher returns by compounding. The trailing rate of return after 3 years is 16.29% and after a year it is 10.69%.A person should initially invest at least 10,000 Rs.
Kotak Standard Multicap Direct Investment
The annualized rate of return after 3 years is 15.85%. It is ideal for investors who are seeking for returns after 3 to 4 years and are expecting higher returns. According to CRISIL it was rated 4th. People investing under this scheme should be willing to face moderate loss if incurred. The muti-cap fund provides 94.97% and 70.95% in 2019 is invested in large capital stocks. The rate of return is 5 years is 16.27% and rate of absolute returns is 112.
Mirae Asset India Equity Fund
This equity fund provides flexibility across different sectors and provides market capitalization and different investment styles. The people who are seeking returns after 3 to 4 years achieve higher returns. The investors should be willing to undergo moderate loss under circumstances. The annualized return is 17.53% after 10 years. After 5 years, the rate of return is 14.35, whereas after 3 years it is 15.29%. So, investing in top 5 mutual funds is sometimes risky.
L& T India Value Fund
The investors can reap long-term gains by investing in a diversified portfolio with equity related-securities. The annualized rate of return after 5 years is 14% and it is useful to investors who are well-versed with macro trends and they are ready to choose selective bets and yet the investors should be willing undertake risks.
The investors should be willing to undergo losses if they are investing in mutual funds because the interest rates always vary in the market.
