Mutual fund investment has gained widespread popularity in India for quite some time now. It offers a plethora of opportunities to help people craft a roadmap for financial success. Lately, a significant part of the younger generation is exploring this investment strategy to attain financial independence and gain wealth. However, with the dynamic evolution of the financial market, investing in mutual funds can be risky and comes with specific challenges. In fact, most people are also confused about the various mutual fund schemes to choose from that will help them meet their long-term and short-term goals. As new investors in the city struggle to navigate the complicated investment process, seeking professional help from a Mutual Fund Advisor in Kolkata can be helpful.
The professionals analyse the risk profiles and consider the timeframe of individual goals and the investment amount to help investors with the process. Mutual funds being one of the top investment options has witnessed new achievements in last year with an increase of 34% AUM. According to expert analysis, it crossed 68 lakh crore in AUM in November 2024 and was expected to cross 69 lakh crore by the end of the year. As stated by livemint, the experts are predicting growth opportunities in a number of sectors that include IT, FMCG and other infrastructures.
This blog explores the mutual funds that will guide you in making an informed decision based on your financial goals.
Best Mutual Fund Investment Suggestions
Are you a new investor unsure how to kickstart your investment journey?
Well, the first step is to learn about the key mutual fund schemes that are performing well in the Indian financial landscape. Based on the awareness, you can explore which is suitable for your financial goals. Whether you are looking to achieve a short-term financial objective or long-term, you can consider the wide range of opportunities that such mutual funds offer.
Some of the most popular and widely invested mutual funds that a Mutual Fund Agent also suggests are listed below:
Large Cap Equity Funds: The large cap equity funds are the ones that predominantly invest in the stocks of the top 100 companies of India and are listed on the stock exchange. Such companies are the largest brands with the majority of the country’s population using their products or services in their daily lives. These brands are highly established with a stable financial performance. Some of the top performing large cap mutual funds that you can explore include, Nippon India Large Cap Fund, SBI Bluechip Fund, Edelweiss Large Cap Fund, ICICI Prudential Bluechip Fund and HDFC Top 100 Fund.
Stable: Established companies offer better stability because of their steady presence in the market and reliable performances.
High Liquidity: The shares of these top companies are very active and widely traded making it a high liquidity fund.
Dividend Payout: As top-performing companies, they roll out dividend payments at regular intervals, thereby enabling systematic income.
Mid Cap Equity Funds: Mid Cap Equity funds refers to the stocks that concentrate on the various medium-sized companies that are listed within 101 to 250 based on market capitalization. These companies are in their growing phase thereby providing significant investment opportunities to investors. Additionally, investing in such stocks ensures slightly higher returns compared to the large-cap funds while having a lesser risk than the small-cap funds. The most popular mid-cap equity funds that any mutual fund distributor will suggest comprise Motilal Oswal Midcap Fund, Hdfc Midcap Opportunities Fund, Nippon India Growth Fund, Sbi Magnum Midcap Fund, and Edelweiss Mid Cap Fund.
Growth Opportunities: As the medium size companies witness fast growth, they have a potential for higher returns.
Better Diversification: Balances your portfolio with growth and stability, thereby ensuring diversification.
Undervalued Opportunities: Being undervalued, such stocks provide opportunities to ensure substantial growth with gradual recognition in the market.
Small Cap Equity Funds: Small cap equity funds are best for investors seeking higher returns. These types of stocks are invested in companies that are relatively small in size and hold a rank beyond 250 in the market capitalisation. Although the growth potential is relatively higher than large and mid caps, these stocks come with higher risks. These stocks are suitable for the people looking for long term investment plans and are willing to take the risks to face the abrupt lows and challenges. Some of the widely known small cap mutual funds include HDFC Small Cap Fund, DSP Small Cap Fund, Quant Small Cap Fund and Aditya Birla Sun Life Small Cap Fund.
Higher Growth: The small cap funds offer substantial growth returns as the small companies tend to expand their foothold on market share.
Outperforms other Equity Funds: If your large and small cap funds are failing to offer the desired results, you can explore small-cap funds along with them to gain a better balance.
Diversification: With the help of your fund managers, you can diversify your portfolio to generate higher returns through investing in top-performing stocks and calculating risks.
Multi-Cap Equity Funds: The multi cap equity funds are the diversified mutual funds that are invested across different company sizes that range from large, middle and small caps. As diversified funds, these types of stocks are somewhat stable owing to the large-cap fund investments and also a bit volatile because of small-cap fund investments. A Mutual Fund Agent suggests these types of stocks as such funds are highly versatile and offer a plethora of opportunities to investors looking to build wealth. The top multi-cap equity funds include Kotak Multi Cap Fund, HDFC Multi Cap Fund, Nippon India Multi Cap Fund, and ICICI Prudential Multicap Fund.
High Flexibility: Based on the volatility of market conditions, the funds can be adjusted and allocated accordingly, thereby optimising the returns for the investors.
Portfolio Balance: It balances the portfolio by offering the opportunity to choose between large, mid, or small-cap funds and invest in various sectors.
Exposure to Multiple Sectors: With these funds, investors tend to explore multiple sectors and companies contributing to India’s economy, thereby lowering the risks associated with any particular sector.
How can a Mutual Fund Advisor Help with your Investments?
Most people stepping into the world of mutual fund investments are novices and require proper guidance to navigate through the complexities of the investment process. When you hire an experienced and qualified Mutual Fund Advisor, you not only get a personalised financial planning but also get to make an informed decision. However, as an investor, you should have the basic understanding of the mutual funds and with the help of their guidance, you can craft an effective portfolio. The chief goal is to diversify your assets and build a balanced portfolio which will ensure higher returns. Since the financial market is so volatile, you will require expert opinion and insights to dive through the investment process hassle-free.
Are you looking for reliable and expert mutual fund agents in Kolkata to help you gain financial success? Schedule an appointment with Call Andii today!