Introduction.
Hello everyone I’m going to share with you about mutual fund investment. As we know investment is very important for our future and we should make it a habit for emergencies now we can say mutual fund investment is less risky than directly buying stock. If somebody don’t want to invest directly in stock so they can opt mutual fund because mutual fund is pool of money which is being managed by experience fund manager. We will discuss this in brief below paragraph.
what is mutual fund?
A mutual fund is a pool of money that is managed by a fund manager who is highly qualified and has great experience but for managing a fund on behalf of an investor, fund houses charge a fee which we can say expense ratio. The expense ratio is nothing but it is the commission that is being charged by the fund house.
Type of mutual fund.
A)- Open-ended scheme.
B)- Close-ended scheme.
A)- Open-ended scheme:- In an open-ended scheme investors buy mutual funds at any time and sell at any time there will be no lock-in period.
B)- Close-ended scheme:- In close-ended schemes investors buy mutual funds but can’t sell at any time because there will be a lock-in period.
Best mutual fund are as follows :
1- Parag Parikh Flexi Fund:
This fund has 95,830 Cr worth of Asset Under Management and has a low expense ratio of 1.33%.
FLEXI CAP FUND invests 67.21% in domestic equities where 50.7% is parked in large-cap stocks, 2.44% is in mid-cap stocks, and 4.27% is in small-cap stocks. 9.77% invest in debt, 1.01% in government securities, and 8.76% in low securities. This fund is best for long-term investments of at least 4 to 5 years.
Fund size: 95,830 crores.
Fund house name: PPFAS Mutual Fund.
NAV: 80.4768
Expense ratio: 1.33%
Risk: Very High Risk
2-year return: 27.90%. 3-year return: 17.70%. 5-year return: 23.74%.
2- Motilal Oswal Midcap Fund Growth:
It is a direct fund that was incorporated on 29 Dec 2009, this fund has 61482 Cr of total worth of assets under management.
This fund has 90.8% of its investment in domestic equities of which 3.98% is in large, 21.82% is in mid-cap stocks, 17.4% is in small-cap stocks, 47.62 %, and the rest is invested in another fund.
Fund size: 61482 Cr
Fund house name: Motilal Oswal Mutual Fund
NAV: 96.1371
Expense ratio: 1.58 %
Risk: Very High Risk
2-year return: 38.90%. 3-year return: 28.30%. 5-year return: 27.60%.
3- JM Flexi Cap Fund Direct Plan.
It is a direct plan and mandate to invest at least 65% of its assets in equity stocks. The total fund size is 5338.35 Cr.
In this fund, there is the total investment in equity is 95.78%, in large-cap 36.45%, in mid-cap investment 9.49%, in small-cap investment 21.85%, and in other investments 27.99%.
Fund size: 5338 Cr.
Fund house name: Motilal Oswal Mutual Fund.
NAV: 109.
Expense ratio: 0.55 %.
Risk: Very High Risk.
2-year return: 34.99%. 3-year return: 24.30%. 5-year return: 23.59%.
4- Edelweiss Mid cap direct fund:
The fund has 96.91% investment in domestic equities of which 6.94% is in large-cap stocks, 36.31% in mid-cap stocks, and 24.41% in small-cap stocks. It is best for those investor who wants to invest for at least 4 to 5 years.
Total holding in equity is 96.91%, in large-cap investment 6.94%, in Midcap investment 36.31%, Small-cap investment is 24.41% and other investment is 29.25% and the rest is investment is in other.
Fund size: 8666.49 Cr
Fund house name: Motilal Oswal Mutual Fund.
NAV: 107.38.
Expense ratio: 0.38 %.
Risk: Very High Risk.
2-year return: 36.07%. 3-year return: 24.25%. 5-year return: 28.17%.
Conclusion:
As I discussed mutual funds’ risks and fees and everything that is related to mutual funds, mutual is a good investment for a long period of time and the best part of a mutual fund is you have not to select mutual fund by itself and simply you can buy a mutual fund through various warehouses which I have shared. and in mutual fund, there is a minimal fee investors are given to fund houses below 1% expense ratio (commission fee) is good choice for investors.