The numerous types of returns on wide-ranging Mutual Funds

Indians have always been conscious of savings. The digital world has impacted our lives and eased the manner of online transactions to an extent that everyone has started investing to garner the best returns from investments in Mutual Funds. There are varying types of Mutual Funds and investors need to first understand their personal futuristic goals and current financial needs before investing in these funds.

India is home to more than 50 Fund Houses and these institutes, with their skilled Fund Managers are available to every kind of investor wishing to avail of maximum returns on their investments.  Today, the total amount of asset investments in Mutual Funds sums up to Rs 8,000 crore - a phenomenal corpus by all standards!

The two key features to be considered when investing in Mutual Funds are: The returns and the risk involvement. Naturally, everyone wants the best mutual fund returns with the least risk. This is possible for sure if you keep your funds locked –in for at least five years. This worldly wise advice can be best received from Fund Managers though one must try to understand the credibility of such individuals as well.

The best returns on Mutual Funds accrue from their offering of a diversified portfolio. The money of investors is invested across different sectors amongst the top performing organizations in an economy.

Mutual Funds are associated with high risk and investors must:

• Check the rating given by CRISIL
• Credibility of the Mutual Funds – past performance (from launch upto the last 5 years) and returns
• Compare their performance with competition

Systematic Investment Planning (SIP) involves investing money in Mutual Funds which guarantee consistent and good returns though largely dependent on the economy. For those willing to accept risks, SIP is the best option to achieve long term beneficial goals as investors need to invest only nominal amounts of money on a weekly or monthly basis.

Some of the note-worthy SIP Mutual Funds of 2016 which offer maximum returns are categorized as follows:

• Large Cap         - SBI Blue Chip Fund
• Large Cap         - UTI Equity Fund
• Large Cap         - UTI Top 100 Fund

• Large & Mid Cap    - Franklin India Flexi Cap Fund
• Large & Mid Cap    - BNP Paribas Equity Fund
• Large & Mid Cap    - Franklin India Prima Plus

• Mid & Small Cap    - SBI Magnum Mid Cap Fund
• Mid & Small Cap    - Franklin India Smaller Companies Fund
• Mid & Small Cap    - BNP Paribas Mid Cap Fund

• Balanced Fund      - HDFC Balance Fund
• Balance Fund        - SBI Magnum Balance Fund
• Balance Fund        - TATA Balance Plan A

• ELSS            - Axis Long Term Equity Fund
• ELSS            - Franklin India Tax Shield Fund
• ELSS            - IDFC Tax Advantage

• Debt Income         - Franklin India Income Opportunity Fund
• Debt Income        - TATA Dynamic Bond Fund Plan B

Authors:

The author is a consistent researcher on the subject of investments in Mutual Funds and a blogger on all finance related issues. He guides investors on stock market investments, insurance, mutual fund returns, income tax, personal finance and individual businesses.