Which are the best mutual funds to invest in India

I have been receiving your communications and various analysis of various MF investments and your recommendations. It's been quite interesting to review most of your recommendations and some of the interesting answered to various questions raised by many of your followers. I really appreciate the time and efforts taken by you and your team to address various queries. Mr. Pradip, we as a family have been investing on MF for a long time, and it had really helped us during the time of our daughter's higher education. Now as a second phase of investments on my wife's name, after evaluating various options, I have arrived on the following. Would appreciate your valuable inputs on this or any other suggestion which can benefit for a long term investment. Here are some background: 1. Period long term 3-5 years or beyond and available fund Rs. 1,25,000 We would like to split this into 4 different one time investments as follows: a) SBI Magnum Multicap Fund Growth (Direct) - Rs. 30000, b) Franklin India High Growth Companies Fund (Direct) - Rs. 35000, c) DSP BlackRock Opportunity Fund Growth (Direct) - Rs. 30000, d) Mira Asset India Opportunity Fund Growth (Direct) - Rs. 30000. 2) SIP of Rs. 10,000 available per month, for 3-5 years or more as follows: a) HDFC Capital Builder Fund - Growth (Direct) - Rs. 3000 SIP per month, b) ICICI Prudential Nifty next 50 Index Fund Growth (Direct) - Rs. 4000 SIP per month, c) Franklin India High Growth companies Fund (G - Direct) - Rs. 3000 SIP per month. Please do suggest if these are ok to move forward and would really appreciate your valuable inputs on this?

Jan 25, 2018 by Suvibadra, Mumbai | Mutual Fund

Thank you for writing to us and also for the kind comments about our work.

We are glad to note that you have been investing in mutual funds for long time and you got immensely benefited from its returns.

With regards to your new investments, we have following suggestions –

1. The selection of 4 funds for lump sum investment is largely good but note that the investment tenure should be minimum 5 years or above as the selected funds are equity diversified funds. As the markets are at all time high level, any correction could be steep and from thereon recovery might take time.

According to our research, one of the funds in diversified equity fund category, Aditya Birla Sun Life Advantage Fund scores very high in the category. You may explore more and may add it in your list maybe in place of Franklin india High Growth Companies Fund. This is just a suggestion but do not take as recommendation as we do not recommend funds. Please check this https://www.advisorkhoj.com/mutual-funds...

2. With regards to the SIP investments, our suggestion is same with regards to the investment horizon – it should minimum be 5 years if not more. However, you can keep the SIP period as 3 and then stop but let the fund grow for few years more to get the desired returns.

With regards to fund suggestions, I think, you should not ignore large cap completely, and therefore, in place of HDFC Capital Builder Fund, you may consider Kotak Select Focus Fund. Here you can go with Franklin India High Growth Companies Fund if in your lump sum investments you are going with the ABSL Advantage Fund. There is no harm in trying the skill set of two different fund managers of two different AMCs.

I think you can move forward as you already understand mutual funds well. However, one last suggestion is that you should review the performance of each fund in your portfolio at least once annually. This is very important to chase your investment goals and get the best out of the selected funds in the long run.

Wishing you the best of investing : )

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