Keep an Eye on These Funds Will Give Good Returns
Mutual Fund
Amidst uncertainties in the market, there are opportunities for good returns in certain funds, and it is important to keep a close watch to capitalize on these opportunities.
Investing in Equity is Best for Long Term Investment
Experts suggest that investing in equity funds is beneficial for long-term wealth creation.
While the market has experienced volatility in recent times, with the Sensex and Nifty witnessing declines and the Bank Nifty experiencing a marginal decrease, the Midcap index managed to close with a modest gain.
In such a market scenario, it becomes crucial to identify funds that have the potential to generate favorable returns.
Investing in well-performing equity funds can provide an avenue for wealth creation, even during market uncertainties.
However, it is important to conduct thorough research and seek expert advice before making investment decisions.
Each investor’s financial goals, risk tolerance, and investment horizon should be taken into consideration while selecting funds.
By staying informed and vigilant, investors can position themselves to take advantage of potential opportunities in the market.
Experts emphasize that investing in equity funds is well-suited for long-term investment goals.
They recommend allocating at least 5 years to Largecap Funds, 10 years to Smallcap Funds, and 7 years to Mid + Smallcap Funds. This allocation strategy takes into account the higher volatility typically associated with smallcap stocks.
Which Fund Will Give Better Returns in IT Sector?
When considering the IT sector, experts suggest investing in diversified funds that have exposure to the IT sector.
While every fund has some level of exposure to IT, actively managed funds tend to be more suitable for this sector. Actively managed funds have the potential to deliver better returns due to their active management strategies.
One actively managed fund that experts recommend in the IT sector is ICICI Pru Tech Fund. This fund has a long-standing track record and has shown good performance returns over time.
Another fund that appears favorable among actively managed funds is ABSL Digital India Fund. This fund demonstrates promising prospects within the IT sector.
It’s important to note that investing decisions should be based on thorough research, considering an individual’s financial goals, risk tolerance, and investment horizon.
Consulting with a certified financial advisor can provide personalized guidance in selecting the most suitable funds for an investment portfolio.
Which Fund is Better Between Large Cap and Mid Cap Fund?
When considering the choice between large cap and mid cap funds, experts suggest including large cap funds in the investment portfolio.
It is recommended to allocate 80% of the investment to large cap funds, as these funds invest in well-established companies that are included in the top 100 companies based on market capitalization.
On the other hand, 20% of the allocation can be dedicated to mid cap funds, which invest in companies with a relatively smaller market capitalization and higher growth potential.
For large cap funds, experts recommend considering ICICI Pru Bluechip Fund and Canara Robeco Bluechip Equity Fund.
These funds have demonstrated favorable performance and are managed by experienced professionals who focus on investing in established, blue-chip companies.
When it comes to mid cap funds, Kotak Emerging Equity Fund and Quant Mid Cap Fund are highlighted as potential options by experts.
These funds specialize in investing in mid-sized companies that have the potential for higher growth. However, it’s important to note that mid cap funds generally carry higher risks due to the volatility associated with smaller companies.
It’s essential to conduct thorough research and consider one’s financial goals, risk tolerance, and investment horizon before making any investment decisions.
Consulting with a certified financial advisor can provide personalized advice and help in selecting the most suitable funds for an individual’s investment portfolio.
Investing in Midcap Funds?
Investing in midcap funds is considered important, according to experts. They suggest allocating around 65% of the investment to midcap funds.
Midcap companies typically fall in the range of 101 to 250 based on their market capitalization.
The remaining portion of the investment can be allocated to both large cap and midcap funds, taking into account the desired risk exposure. It is crucial to assess the fund manager and the fund house before investing in midcap funds.
Among the recommended midcap funds, experts highlight Kotak Emerging Equity Fund and Quant Mid Cap Fund as top choices.
Quant Mid Cap Fund has generated approximately 41% returns over a 3-year period, while Kotak Emerging Equity Fund has provided returns of around 35% during the same period.
Experts advise against making lump sum investments, which involves investing a significant amount all at once. Instead, they suggest giving the market a chance to correct or fall by considering systematic investment plans (SIP) or systematic transfer plans (STP).
SIP involves investing a fixed amount at regular intervals, while STP involves transferring funds from one investment to another over a specified time period.
It’s important to conduct thorough research, assess one’s risk tolerance, and consider investment goals before making any investment decisions.
Seeking advice from a certified financial advisor can provide personalized guidance based on individual circumstances and help in selecting suitable investment strategies.
Disclaimer: The views expressed on our website are the personal opinions and perspectives of the experts. The website and its management do not take responsibility for the accuracy, completeness, or reliability of the information provided. The content on the website should not be considered as financial or investment advice. Users are strongly advised to seek certified expert advice or consult with a qualified financial advisor before making any investment decisions. Investments involve risks, and it is important to carefully consider one’s financial situation, investment objectives, and risk tolerance before making any investment choices.
