Top Mutual Funds to invest in 2018

Creating a portfolio for mutual funds is very complex. Investors should have a mixed bag of schemes keeping the varied needs to meet every single goal of life. Mutual funds have long term, short term and medium term schemes. Ideally, investors should select few schemes with records of unfailing long term performance. So, how to compose the portfolio is the most asked question by any beginner. Buying mutual funds schemes is not where the task ends, instead regular monitoring is important to find remedial steps just in case necessary. With the present scenario, it looks like inventors can earn significant returns from long term investments as the India’s growth story is still intact.

After restrained growth of FY2018, there is an expectation that the Indian economy will grow at higher speed in FY2019. Demonetization and GST transition is believed to have affected the market growth since their implementation. After a gap of few months, the impacts of both seem to be receding slowing but steadily. Hence there is an expectation the corporate earnings will also grow in mid-teens in the FY19. Although we can already see recovery in the earnings of valuation is already factored. However, the markets have already influenced the recovery in the earnings in the valuations. It is time that investors should now put more focus on investing on long term schemes since the market has entered in a consolidation phase.

Due to increasing crude oil prices and bond yields, the equity market has behaved in a volatile manner so far in 2018. So this is the right time to invest in long term wealth creation. Mutuals funds are the best bet in the volatile market if invested through Systematic Investment Plan (SIP). By investing via SIP mutual funds, investors can follow discipline approach by investing a fixed amount for a predetermined period. Investors don’t have to worry for short term volatility in the market while investing through SIP as it helps in ‘Rupee Cost Averaging’. Additionally, mutual funds give an option to invest in as low as Rs. 500 per month through SIP schemes, which makes it further more ideal wealth creation plan for investors.

Top 7 Mutual Funds You Should Invest in 2018

We have seen in the last 3 to 4 years, a large number of investors are plunging into the mutual funds investment schemes. Especially Systematic Investment Plan (SIP) has attracted a large section of investors and the number is constantly growing and with the present market scenario, it seems it will remain like this in the coming years too. The most difficult situation rises when investors have to choose their schemes and create a good investment portfolio for a long term wealth creation. There are hundreds of schemes available in the market today, one can easily choose from the wide range, the schemes that meet their requirements as well as risk taking capacity too.

So, here we are with our top mutual fund SIP portfolio recommendations for investors to long term create wealth.

  • SBI Magnum Multicap
  • ICICI Prudential Focused Bluechip Equity
  • Motilal Oswal Multicap 35 Fund
  • SBI Bluechip Fund
  • HDFC Hybrid Equity Fund
  • Mirae Asset Emerging Bluechip Fund
  • L&T India Value Fund

At times, creating and handling portfolio of few selected mutual funds schemes becomes very complicated. So, below you will find three different options for mutual funds investment, based on risk taking capacity and financial goals of individual investors. Below tables suggests investors as conservative, moderate and aggressive.

You can take professional financial expert’s advice to understand how a portfolio of different mutual fund schemes is created and handled.

Refer to the below table for more details on allocation and the SIP amounts:

  1. Recommended Portfolios For Conservative Investors
  2. SIP Amount Scheme Name Percentage
    Rs. 2,000-5000 SBI Bluechip – G 50%
    HDFC Hybrid Equity Fund – G 50%
    >Rs.5000-10,000 SBI Bluechip – G 30%
    ICICI Prudential Focused Bluechip Equity – G 20%
    HDFC Hybrid Equity Fund – G 50%
    >Rs.10,000 SBI Bluechip – G 25%
    ICICI Prudential Focused Bluechip Equity – G 15%
    Motilal Oswal Multicap 35 Fund – G 10%
    HDFC Hybrid Equity Fund – G 50%
  3. Recommended Portfolios For Moderate Investors
  4. SIP Amount Scheme Name Percentage
    Rs. 2,000-5000 SBI Bluechip – G 65%
    HDFC Hybrid Equity Fund – G 35%
    >Rs.5000-10,000 SBI Bluechip – G 40%
    Motilal Oswal Multicap 35 Fund – G 25%
    HDFC Hybrid Equity Fund – G 35%
    >Rs.10,000 SBI Bluechip – G 15%
    ICICI Prudential Focused Bluechip Equity – G 30%
    Motilal Oswal Multicap 35 Fund – G 20%
    HDFC Hybrid Equity Fund – G 35%
  5. Recommended Portfolios For Aggressive Investors
  6. SIP Amount Scheme Name Percentage
    Rs. 2,000-5000 SBI Magnum Multicap – G 50%
    ICICI Prudential Focused Bluechip Equity – G 50%
    >Rs.5000-10,000 SBI Bluechip – G 20%
    Motilal Oswal Multicap 35 Fund – G 30%
    HDFC Hybrid Equity Fund – G 15%
    Mirae Asset Emerging Bluechip Fund – Regular Plan – G 35%
    >Rs.10,000 SBI Magnum Multicap – G 10%
    ICICI Prudential Focused Bluechip Equity – G 35%
    L&T India Value Fund – G 15%
    Mirae Asset Emerging Bluechip Fund– Regular Plan – G 30%
    HDFC Hybrid Equity Fund – G 10%

Top Investment Options for 2018 are:

SBI Magnum Multicap

For the quarter that ended in June 2018, the SBI Magnuc Multicap scheme is ranched at number 3 in multi cap fund category by CRISIL The rank is unchanged from the last quarter. If you have already invested in the scheme remain invested but it is advised keep a close look on it performance. The investment provides investors with potential for long-term growth in capital along with the open ended scheme liquidity. It is offering diversified basket of equity stocks encompassing the entire market and is an active management investment. It is stock picking companies across sectors.

Motilal Oswal Multicap 35 Fund

Motilal Oswal Multicap 35 Fund is an open ended equity scheme that is investing across large cap, mid cap, small cap stocks. It is ranked at 2nd number in multi cap fund category by CRISIL for the quarter that ended in June 2018. The rank is unchanged from the previous quarter. Continue investing in the scheme if you are already invested in it but as always keep a close look on its performance.

The aim of this scheme is to achieve long term capital appreciation by primarily investing in 35 equity & equity related instruments maximum across sectors and market capitalization levels.

SBI Bluechip Fund

SBI Bluechip Fund has an average performance in its category. It is ranked at number 3 in large cap fund category by CRISI for the quarter that ended in June 2018. Rank is unchanged since previous quarter. Stay invested in the scheme if you have already invested in it but as advised always keep a check on its performance.

HDFC Hybrid Equity Fund

HDFC Hybrid Equity Fund is not ranked in the aggressive hybrid fund category by CRISI according to the quarter that ended in June 2018. This scheme has high potential. Stay invested in it if you have already invested. Keep a check on its performance.

Mirae Asset Emerging Bluechip Fund

Mirae Asset Emerging Bluechip Fund is ranked at number 2 in the large and mind cap fund category by CRISIL for the quarter that ended in June 2018. This rank is unchanged since previous quarter. Continue investing in this scheme if already invested. Keep a close look on it performance. The scheme offers you and opportunity to plug into the value of large, mid and small sized companies with a possibility to perform well in the market in the next few years. This scheme has the capacity to achieve your funds management dreams.

L&T India Value Fund

L&T India Value Fund is not ranked in Value Fund category by CRISIL for the quarter that ended on June 2018. The position of the scheme did not change since previous quarter. Stay invested in the scheme if you have already invested in it. Do keep close look on its performance. It is an open ended equity scheme following a value investment strategy. Aim is to generate long-term capital appreciation from diversified portfolio of predominant equity and equity related securities in the Indian markets. It will have higher focus on undervalued securities. This Scheme can also invest in Foreign Securities in international markets.

ICICI Prudential Focused Blueship Equity

ICICI Prudential Focused Bluechip Equity Fund was renamed as ICICI Prudential Bluechip Fund w.e.f. May 28, 2018. ICICI Prudential Focused Blueship Equity is an open-ended equity fund launched in May 23, 2008 has only one objective and that is growth by throwing challenge to large cap companies. It is ranked at number 2 in large cap fund category by CRISIL or the quarter that ended in June 2018. Stay invested if you have already invested in it. Keep a close look on its performance.

How to Create a Good MF portfolio?

First, based on the past performance of the schemes, select few schemes which have consistently performed well in the past years.

Then, out of this list, shortlist schemes that meet your financial goal and also suit your risk appetite

Next, decide the amount of money you wish to invest on each scheme, which is a complicated task. You can take an expert professional’s help in this.

Finally, once you have decided the amount you would invest on each scheme, create a method to do proper and regular monitoring of your funds at short intervals. If necessary take corrective measures after doing proper review of the schemes. Pay proper attention to details and make your decision with well thought out plans, because mutual funds investments are subject to market risk and the volatility can not only impact your portfolio but also your finance goals. Impact can be positive as ¬well as negative.