If you do not understand these basic mutual fund concepts or are totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor. You should always choose a scheme that matches your investment objective, horizon, and risk profile.
You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher risk.įinally, any search starting with the word 'best' is unlikely to offer you the best solution. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. What about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these schemes. These schemes invest across market capitalisations and sectors, based on the view of the fund manager. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability.Ī regular equity investor (one with a moderate risk appetite) looking to invest in the stock market need not look beyond flexi cap mutual funds( or diversified equity schemes). They are also relatively less volatile than mid cap and small cap schemes. These schemes invest in top 100 stocks and they are relatively safer than other pure equity mutual fund schemes. Large cap schemes are meant for such individuals. Probably the best reason to get a mutual fund is because of portfolio. This is considered among the stable companies and has a consistently strong performance. Some equity investors want to play safe even while investing in stocks. Mutual Funds With No Minimum Investment Top Performing Companies Fidelity Blue Chip Growth Fund (FBGRX) Our first on the list is the Fidelity Blue Chip Growth Fund (FBGRX). Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors looking to create long-term wealth without much volatility.
Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes.
These schemes invest in a mix of equity (65-80%) and debt (20-35). First, find out about each category and whether it is suited to your investment objective and risk profile.Īggressive hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. Here are some pointers you should keep in mind while investing in these schemes.