Top-performing mutual funds are those that have consistently outperformed their benchmark and peer funds. In simple words, top-performing mutual funds are the ones that are the best in their category. They provide value for money. Top-performing mutual funds typically have a reasonable expense ratio and a history of generating good returns.
The 10 Best Mutual Funds
In this article, we have looked at some top-performing mutual funds, which have delivered excellent returns over a long period of time. The funds have been selected from a universe of over 500 funds that manage more than $500 million. These funds are ranked according to their year-to-date (YTD) performance and risk. Let us have a look at the top 10 mutual funds. Ibbleishi Senior Bond Fund Ibbleishi Senior Bond Fund A (MUTF: IBNXSYX ) seeks long-term capital appreciation. It invests the lion's share of its assets in fixed income instruments. IBNXSYX invests primarily in unsecured bonds of various maturities and credit ratings from either a domestic or global market. The fund may also invest in foreign securities. It invests a large chunk of its assets in financials and utilities stocks.
How to Pick the Right Mutual Fund?
Since you have just started investing in mutual funds, it’s advisable to invest in a fund with a good reputation and track record of consistently returning good returns over the years. Also, do not settle for anything below minimum investment requirement. Minimum investment for many mutual fund schemes is ₹50,000. After you invest, make sure you stay invested in a mutual fund for at least 2-3 years and track its performance regularly. Here are some funds which have consistently outperformed their benchmarks and have the reputation to become top performing mutual funds. They also have a higher expense ratio compared to the funds mentioned earlier. Best Mutual Funds to Invest In: HDFC Value Fund HDFC Value Fund is one of the oldest funds in the market.
What are the benefits of Investing in Mutual Funds?
High returns of top mutual funds come from the following ways: (a) The performance of the mutual fund can be measured by its maximum drawdown (10% or more) of the portfolio. (b) A mutual fund's best returns come from its highest-conviction trades. They are bets that are more likely to work than lose money. (c) The performance of mutual funds are correlated with the equity market, and changes in market value have more weight in a mutual fund's performance than changes in underlying stock prices. This article highlights the top 10 best mutual funds to invest in for the new year. See Also: Most Expensive Mutual Funds to Invest In Top 10 Best Mutual Funds to Invest In For the New Year: Northern Lights Mid Cap (NLMCX) Pension Fund North Coast Mid Cap Fund (NLMCX) seeks growth of capital.
What are the risks of investing in mutual funds?
The key reason why mutual funds have an edge over other investment options is that they are backed by the money managers of the respective fund house who are considered experts in the investment field. Mutual fund managers understand the dynamics of the market. They are masters of investing. In case a fund manager fails to beat the benchmark in any of the trailing five or ten years, the fund house is compelled to either slash the investment period or to take steps to improve its performance. These steps can be limiting either to the total number of investments in a fund or to the number of underlying stocks/indexes/assets that one can choose from. What are the top mutual funds to invest in? There are so many mutual funds to choose from, right?
Conclusion
Mutual funds are considered by most of the investors as the best way to invest in mutual funds. In a long-term investment horizon, mutual funds can be the best bet for growing your wealth. However, in a short period of time, a mutual fund investor can lose the money invested in his fund. This is because mutual fund investors cannot hold the fund long term to support the fund to generate good returns.
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