Best Performing Mutual Funds To Invest In 2022

Trying to find the top mutual funds online? But in trying to find the best plans, many investors end up even more perplexed than before. If you searched online, you would have come across sites that already had compiled such lists. For some, the pursuit of finding the best funds stops at accumulating a list of those names. In light of this, the Piramal group has released a ranking of the best mutual fund schemes.

One of the most common ways for people to put money to work is through mutual funds, which allows for diversified portfolios across a variety of asset classes without requiring the investor to take on the responsibility of managing their assets. Another benefit of mutual funds is the potential to gain exposure to a broader range of investments than a person would normally have access to. Investing via the best mutual funds in India has expanded over time. The top-performing funds in the market, as a result, are always shifting.

No matter how long or short your investment career has been, some mutual funds should be on your radar. In 2022, the following mutual funds are among the most promising ones you can invest in:

• Mirae Asset Large-Cap fund

Large-cap equity mutual funds can place up to 80% of their total assets primarily in large companies’ businesses. In domestic equities, the fund has a 98.61% position, of which 64.94% are large-cap companies, 9.62% are mid-cap stocks, and 4.03% are small-cap stocks. It is appropriate for investors seeking large profits and wishing to invest money for at least three to four years. Additionally, these investors need to be ready for the possibility of suffering slight asset losses at the same time.

• Axis Blue Chip fund

The goal of the investment is to achieve long-term capital growth through the use of a diversified portfolio that is mostly made up of large-cap company shares and equity-related securities, including derivatives. In domestic equities, the fund has an investment of 88.04%, of which 75.43% are large-cap stocks and 3.26% are mid-cap stocks. Government securities make up 0.83% of the fund’s investment in debt. It is suitable for those who want to make large gains and want to hold their investments for at least three to four years. Additionally, these investors need to be ready for the possibility of suffering slight asset losses at the same time.

• UTI Flexi Cap fund

Mutual funds that hold equities of companies of varying sizes across the market capitalization spectrum are known as “Flexi-cap” funds. All equities of large-cap, mid-cap, and small-cap companies are purchased by these funds. In domestic equities, the fund has a 96.42% investment, of which 44.89% are large-cap companies, 24.5% are mid-cap stocks, and 9.76% are small-cap stocks. Government securities make up 0.15% of the fund’s investment in debt. Those wishing to invest for at least three to four years and who want big returns should consider it. Additionally, these investors need to be ready for the possibility that they could simultaneously sustain slight losses on their holdings.

• Axis Mid-Cap fund

The investment goal is to increase capital over the long term by primarily investing in equities and equity-related products of mid-cap corporations. The fund invests 88.15% of its capital in domestic equities, of which 14.4% are small-cap stocks, 13.39% are large-cap stocks, and 44.06% are mid-cap stocks. Government securities make up 0.71% of the fund’s investment in debt. 

• Kotak Emerging Equity fund

The fund invests in domestic equities to the tune of 93.95%, of which 5.52% are large-cap stocks, 53.4% are mid-cap stocks, and 23.2% are small-cap stocks. Investors wishing to invest for at least three to four years and seeking substantial returns might consider it. These traders also need to be ready to take the chance of experiencing moderate losses on their investments.

• Parag Parikh Long-Term Equity fund

A diversified equities strategy is the Parag Parikh Flexi Cap Fund. No self-imposed restrictions on industry, market capitalization, geography, etc., limit its investment universe. In domestic equities, the fund has a 69.55% investment, of which 56.54% are large-cap companies, 3.07% are mid-cap stocks, and 8.94% are small-cap stocks. Investors with a long-term horizon (three to four years) and a penchant for huge returns should consider this option. These traders also need to be ready to take the chance of experiencing moderate losses on their investments.

Tips for Choosing The Best Mutual Fund to Invest in

• How much money do you hope to make?

Whenever you’re considering a major investment, it’s wise to first determine your long-term financial objectives. This will guide your choice between debt and equity financing to achieve your objectives. To find the optimal course of action for you, taking into account your risk tolerance, time horizon, liquidity needs, and other criteria, you can utilise software like Google Sheets or Excel to generate many scenarios depending on various outcomes.

• Perspective on Future Investments:

For what time frame do you see yourself keeping this investment? Short-term (less than five years) and long-term (five years or more) are the two main categories of best mutual fund investments (more than five years). Look for funds that invest in stocks and bonds with a larger risk but higher potential return if you’re investing for the short term, and invest in safe, consistent growth if you’re planning to hold onto your money for the long haul. Invest in things that won’t ruin your life but will yield a tiny profit.

• Acceptance of Risk:

Before investing in mutual funds, you should think about how much of a risk you are willing to take. This will shed light on the potential for financial gain from trading on the market.

• Expense Ratio:

The expenditure ratio covers the fund manager’s salary, advertising, and other fees. This amount should be below 1%, but if it’s higher and the fund has been earning good returns, it may be worth it to pay more for fees upfront rather than later when they would have eaten into your gains (or even worse-caused losses).

Conclusion

Over the past decade, Indian investors have found great success with mutual funds. They are a cheap and easy method to spread your investments around and increase your wealth while keeping your exposure to risk minimal. If you start your search with the word “best,” you probably won’t get the best results. Always consider your investment goals, time horizon, and risk tolerance before settling on a certain plan. As a company, we at Piramal Finance are familiar with the fundamentals of mutual funds and can help those who are new to both mutual funds and investing get started. You can also get easy and customised mutual fund investment and personal loan solutions with us.

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