Investments are vital in securing financial growth. If you have been wondering, ‘where and how to invest money?’, the short answer is to consider mutual funds. With portfolio diversification, you can mitigate the risks involved, and enjoy the gains that come with such instruments.
Best of all, there are a plethora of options at every risk level, allowing you to choose the best option. For instance, if you are willing to take on risk, equity mutual funds are one of the most popular choices. Equity mutual funds allow you to quickly invest in stocks and shares of companies and earn potential returns.
Managed by professional fund managers, you can choose from numerous schemes that best align with your investment goals. However, given the list of options, choosing the right scheme may seem daunting.
To make it easy for you, here is a compilation of a few equity mutual funds you can consider for growth in 2023, and beyond.
Quant Mid Cap Fund – Direct Plan
This is a very high-risk, open-ended scheme. In this scheme, your funds are primarily directed towards mid-cap stocks. The minimum investment requirement is ₹5,000, and ₹1,000 if you opt to set up an SIP.
The NAV as of 15th June 2023 is 140.32. The expense ratio for this fund is 0.63%, with the fund’s 3- and 5-year performance being 33.2% and 20%, respectively. The scheme comes with no lock-in period and an exit load of 0.5% if redeemed within 3 months, i.e., 90 days.
SBI Large & Mid-cap Fund – Direct Plan
This is a very high-risk scheme wherein your funds are primarily invested in large and mid-cap companies. Opting for this scheme is ideal if you invest with the intention of long-term capital appreciation.
The minimum lump sum investment requirement is ₹5,000 and ₹500 if choosing the SIP mode. Launched in 1993, the fund’s performance since inception is 14.61%. Its 3- and 5-year performance is 31.68% and 14.28%, respectively.
The fund’s NAV as of 15th June 2023 is ₹422.49. The exit load is 0.10% if redeemed within 30 days and nil after that.
Quant Tax Plan Direct – Growth
In this scheme, your funds are invested in equity shares with the aim of capital appreciation. It is an open-ended ELSS scheme and comes with a mandatory lock-in period of 3 years. You need to invest a minimum of ₹500 whether you choose the lump sum or SIP option.
The fund’s NAV as of 15th June 2023 is ₹248.92. Its 3- and 5-year performance is 43.98% and 24.36%, respectively. The scheme has zero exit load after the lock-in period of 3 years.
Axis Small Cap Fund Direct – Growth
Under this scheme, your funds are directed towards small-cap companies to generate better returns in the long term. The fund’s NAV as of 15th June 2023 is ₹80.29. Its 3- and 5-year performance is 39.99% and 21.33%, respectively.
The scheme is ideal for those who plan an investment horizon of 5 years and are able to tolerate a lot of short-term volatility. The exit load of the scheme is 1% if you redeem or switch more than 10% of your investment within 12 months.
Mirae Asset Tax Saver Fund – Direct Plan
This ELSS scheme is ideal if you want to invest with the aim of tax saving along with wealth creation. It is an open-ended scheme with a mandatory lock-in period of 3 years. The minimum investment amount is ₹500.
The fund’s NAV as of 15th June 2023 is ₹36.518. Its 3- and 5-year performance is 27.2% and 15%, respectively. The expense ratio of the plan is 0.50%, with no exit load.
Kotak Emerging Equity Fund
With a minimum investment of ₹100, this is one of the equity mutual funds wherein your funds are invested in mid-cap companies. These are usually those that are developing or are in their nascent stage.
Given this, it is volatile in the short term but offers good returns in the long run.
The fund’s 3- and 5-year performance is 34.29% and 15.89%, respectively. The expense ratio is 0.45% for direct plans and 1.56% for regular plans. If you redeem/switch over 10% of the investment before 12 months, the exit load is 1%.
Points to Remember When Investing in Equity Mutual Funds
Investing in mutual funds requires proper research and due diligence. Being cautious about where you park your funds helps ensure that your finances grow securely.
Listed below are some factors you need to consider when investing in equity mutual funds.
- Assess your goals in choosing from various types of equity mutual funds
- Evaluate your risk tolerance to choose the risk level of the mutual fund
- Look at the fund performance to gauge your return on investment
- Consider expense ratio, exit load, and tax implications to choose the best option
- Check the fund manager’s experience to ensure the security of your investment
- Compare investment methods (SIP, lump sum, etc.) to choose the most feasible one
By following this mutual fund list and the aforementioned tips, you have the right answer to your query about where and how to invest money, specifically with regard to mutual funds. Remember, while equity mutual funds are one of the best ways to secure financial growth, they also come with an adequate amount of risk.
As such, you also need to invest in avenues that carry different risk levels. This helps mitigate the risk of your investments, allowing you to leverage the loss from one against the gain of the other.
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