As per the investment returns on stocks in the year of 2014, in 2015 also stocks can give fantastic returns. Hence, investors must want to know best mutual funds to invest in 2015. In this article, we are going to cover top 5 mutual funds in India in 2015 to invest in. If anyone is new to share market, it's the best idea to start investing through mutual funds.
Why mutual funds?
For those who are new to mutual fund, first here you should get it what about we are talking. In mutual fund stockholders invest their money for a common financial goal. Such investment is the best way to get return without paying high amount. This means by investing few thousand rupees also can take benefits of mutual funds. Investor's money is managed and controlled by the experts of finance.
A complexity of managing your money is passively depends on expert's shoulders. Diversification to the offset potentials losses is achieved in mutual funds which is the well managed way. If you are not that much good at managing finance, by investing in mutual funds you can now make complex decisions on your finance. Portfolio managers take decisions for your funds, which makes it more convenient for you to get high returns without much knowledge or experience in stocks.
Coming to the main topic we are going to light up some top mutual funds in which you can invest in 2015. These are the mutual funds for people who are willing to invest for a long term. Top mutual fund list contains the mutual funds which can be spotted through SIP. SIP refers to Systematic Investment Planning which is a most powerful tool as of now to guide investment and manage to give high returns. New investors can get the help of SIP to manage their finance in proper and efficient manner.
Top list is summarized on the basis of factors as:
Mutual funds rated as 5 star 4 star by value research.
Mutual funds that recorded high returns since last few years.
Top performance of mutual funds across various markets.
1. ICICI Pru Focused bluechip Eq fund
This mutual fund recorded 17% annual returns in last few years and came as the top in best mutual funds list. If calculations are concerned assume you invested Rs. 1000 per month for 5 years, you will get a return of Rs. 101000 on your total investment of Rs. 60000. You can surely go for this mutual fund for a long term investment of 10 to 20 years.
You must be thinking how this fund achieves this much return? This fund invests 200 stocks in 20 large cap companies that are listed on the basis of market capitalization. Objectives may be altered as per assets. This fund has a consistent performance.
Consistency in the high returns makes this mutual fund more reliable and top most mutual fund investment plan. This mutual fund recorded 17% returns in last 5 years which made it unique.
2. UTI equity mutual fund
Equity and instruments based on equity are the main aspect of investment in UTI equity mutual fund. It invests 80% of the fund in this high risk profiles and remaining 20% is invested in other low to medium risk profiles. This fund keeps its promise to give returns in tough conditions also. As the fund have its well managed planning of investment, it’s more preferable to invest in such mutual fund.
This mutual fund comes in the list of top mutual funds as it maintained its return of 16% in last 5 years. Through SIP if you invest Rs. 1000 per month for 5 years, then the total amount of your investment will be Rs. 60000. As a return of 16% you will get Rs. 104000. Such a high percent return makes this fund eligible to come on top mutual fund list.
3. HDFC Top-200 fund
In last 10 years HDFC Top-200 fund kept its consistency by giving 22% of annual returns. This makes it more reliable to opt as an investment in mutual fund. Over last 5 years it gave 15% of annualized returns. If you invest Rs. 1000 per month continuously for 5 years, your total investment would be Rs. 60000. Investing in HDFC Top-200 fund, you will get the return of Rs. 99600.we can conclude that this mutual fund is best for long term investment such as for 10+ years.
Strategy this fund follows, includes 90% of fund investment in equity and remaining 10% in other aspects of debt instruments. They invest in the stocks of companies in BSE 200 index and 200 other large companies in India. Performance of this mutual fund over the decade makes it more preferable investment plan.
4. Franklin Indian smaller companies fund
As name implies this fund invests maximum of its capital in smaller companies in India. Up to 75% investments are done in smaller companies. In last 5 years this mutual fund managed to 24% of annualized returns. If you invest Rs. 1000 for 5 years as the investment per month, you can calculate your investment in 5 Years becomes Rs. 60000. This mutual fund returns Rs. 138000 at the end of 5 years. So we can see it created a benchmark by giving such a high return performance in last 5 years.
What differentiates this mutual fund from other investment plans is its strategy of market cap orientation. As it invests smaller portion in large cap and all remaining smaller sizable part in smaller companies in India, which makes it suitable to name as smaller company fund.
5. Reliance Equity Opportunity fund
Comparing to S&P BSE 100 having 10.2 annualized returns, this fund performed 22% of annualized returns. Strategy this fund adopted is to invest in the stocks that are influenced by ongoing economic reforms, infrastructural changes and FDI inflows.
As the mutual fund promises 22% of annualized return, we can calculate as further. If you invest Rs. 1000 per month or 5 years, on the total investment of Rs. 60000, one can get the amount of Rs. 116000 as returns.
This mutual fund can be chosen as a long term investment plan as for eight to ten years. This fund invests in various sectors. Hence we can expect good performance in future too.