Mutual funds are one of the best investment options for investors who fear the volatility of markets to create a handsome wealth in the long run for achieving financial independence, retirement, Children's education, owning a house, car, or accomplishing any other financial goal.
Mutual funds are professionally managed by the experts of fund houses and are also strictly regulated by authorities like SEBI and AMFI, ensuring the interest of investors. So answer the question, Are Mutual funds safe?? Yes, of course, they are.
Mutual funds are also one of the finest ways to start investing, as it takes only about a hundred bucks to get started. Here are the 5 top funds to begin your journey of investing with just ₹100 per month:
- ICICI Prudential Technology Direct-Growth: This is an equity-based fund that primarily invests in technology-based companies. This fund is one of the top performers in its category, with average annual returns of 23% in the last 5 years and 28% in the last 3 years. The fund manager Sankaran Naren is an alumnus of IIM Kolkata and has about 3 decades of work experience in the industry; and is currently working as a fund manager for around 40 mutual fund schemes.
- Nippon India US Equity Opportunities Fund Direct-Growth: This fund belongs to the international category and invests in the stocks listed on S&P 500 index in the United States. This fund is a consistent performer and has given returns of 21% in the last 5 years and 22% in the last 3 years. International funds come with an additional benefit of currency fluctuation, which may increase your returns in the long term.
- ICICI Prudential US Bluechip Equity Direct-Growth: This is another International fund on the list with average annual returns of 19.5% in the last 5 years and 22.3% in the last 3 years. Priyanka Khandelwal, the fund manager, is a qualified Chartered Accountant and a Company secretary with work experience of nearly half-decade. But Expense ratio of this fund (1.29%) is slightly higher when compared with Nippon's international fund above (1.08%).
- Kotak Bluechip Fund Direct-Growth: This fund belongs to the Large-cap category, where investors can expect stable returns in the long run with low risk. The last 5 year returns are 14.5%, and the last 3 year returns are 12.71%, and the expense ratio of this fund is also on the lower side with just 0.92%. Rating agency CRISIL has been assigned 5/5 stars, whereas Value research and Morning star have been assigned 4/5 stars, which shows that the fund is improving its performance in its category.
- Nippon India Small Cap Fund Direct-Growth: The said fund is one of the top performers in the small-cap category with average annual returns of 20.75% in the last 5 years. Rating agencies Value research and morning star have been assigned 4/5 stars. In addition, the fund manager Samir Rachh is a highly experienced professional with 30 years of experience in the industry.
The above funds are selected based on the performance of the last 5 years. Returns were ever used refers to CAGR (Compound Annual Growth Rate).
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