Mutual Funds

What are the top mutual funds to invest in 2020?

What are the top mutual funds to invest in 2020

Searching for the best Mutual Fund to invest in 2020? Investing in a mutual fund requires a lot of research and analysis. Most often investors find it difficult to find right mutual fund schemes for them which can give them constant returns. There are a lot things to check before investing in a mutual fund, in this article we will share important tips which will help you choose the right mutual fund.

In lump sum investment scheme, an investor can invest one-time down payment amount, Meanwhile, in SIP scheme, an investor can invest at regular intervals those intervals can be monthly, quarterly or annually. In lump sum investment scheme minimum investment could be range from INR 1000-5000, while in SIP scheme investor can start with a minimum account just INR 500.

What are the benefits of Mutual Funds?

Mutual fund schemes offer a lot of diversification to investors and investors can invest in both equity and debt under same scheme which improves risk to reward ratio. Majority of mutual funds invest assets in only stable and non-volatile instruments so it provides stable returns to investors. Mutual funds are the best options for conservative investors who prefer risk free investment.

To begin any investments usually individual need a large number of funds but in mutual funds, individuals can begin investing with a small amount, even one can start an investment with just 500 rupees. Low investment cost makes mutual funds a perfect investment option for everyone to include students or average income peoples.

Investors mutual fund investment portfolios are usually managed and monitored by the professional fund manager and broker houses, they always keep investors updated about their portfolio and other updates. Fund managers also advise their investors about suitable investments schemes which can provide returns on investments, for beginners it is very hard to research and choose right scheme but fund managers guide investors about schemes and help investors to choose right schemes to invest.

Mutual funds investments are one of the safest investments because all mutual fund schemes are monitored and regulated by SEBI (The Securities and Exchange Board of India) so your funds are always safe in mutual funds.

Liquidity is one of the most important aspects of any type of investment. Liquidity basically refers to the process to exit from your investment and to receive the cash amount. Mutual funds investments are highly liquid if an individual wants to exit from its mutual fund’s scheme than He/She can receive its invested money in its bank account within 24 hours. It is commonly seen investors sometimes face a financial emergency in that scenario highly liquid investments can be the helping hand.

Top Mutual Funds to invest in 2020

Fund Name NAV (₹) Net Assets (₹) 3 M(%) 6 M (%) 1 YR (%) 3 YR (%) 5 YR (%)
Aditya Birla Sun Life Corporate Bond Fund 83.4554 20,205 1.6 6.6 11.2 8.8 8.8
ICICI Prudential Long Term Plan 27.0741 4,287 1.8 5.6 11.8 8.1 9.2
Franklin Asian Equity Fund 26.2552 174 9.2 27.4 20.1 7.8 13
DSP BlackRock US Flexible Equity Fund 30.4421 199 8.6 34.6 18.8 13.1 13.6
UTI Banking & PSU Debt Fund 15.8267 231 1.1 4.7 9 4.6 6.5
HDFC Banking and PSU Debt Fund 17.3714 8,173 1.7 5.1 10.2 8.2 8.6
HDFC Corporate Bond Fund 24.2385 21,052 1.4 5.8 10.9 8.7 8.9
SBI Small Cap Fund 58.4857 5,039 20.5 43.1 12.2 5.8 13.5
Axis Credit Risk Fund 15.686 593 2.2 3.4 8.1 5.6 6.7
ICICI Prudential MIP 25 47.6473 1,916 4.5 9.5 8.6 7.3 8.8

Points to consider before picking a mutual fund scheme

Mutual fund performance – Investors should do fair research about fund’s past performance although past does not ensure future but still past of a fund gives an idea of future so it is necessary to check past performance of a fund. It is recommended to invest in a mutual fund which is hitting its targets from 4-5 years. It is important to check fund’s performance in different cycles of the market if the fund had performed well even in difficult market conditions than it can be expected fund most possibly will perform well in future.

Seek professional guide – It is recommended to consult an experienced fund manager, fund managers usually have years of experience in the financial market so they can easily identify good or bad performing mutual fund. Investors should consult a fund manager who is very consistence in His/Her career over the years.

Fund fact sheet – It is recommended to analyze the fund fact sheet of a mutual fund because the fund fact sheet represents many important figures and ratios of the mutual fund. The investor must look at fund fact sheet of mutual fund and compare it with other mutual fund’s performance.

The reputation of the fund house – It is important to check the reputation of the fund house before selecting any mutual fund scheme. A fund house should have a good track record and it should offer good performing mutual funds to its investors.

Conclusion

Mutual funds are a great option to invest your money but at the same time it important to invest in only good performing funds. It is always recommended to check important stats and past record of a mutual fund to ensure whether it will touch your estimated goals or not. Investors much investigate about fund house reputation and its track record before choosing any plan from any fund house.

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