Top 10 Mutual Funds to Consider for Investment in October 2024
Many first-time and relatively inexperienced investors often seek guidance on selecting the top mutual funds to invest in. They may turn to friends, colleagues, or online forums to gather suggestions on which schemes to choose when starting their investment journey or when deciding to allocate additional funds. However, these recommendations frequently leave them unsatisfied due to various reasons.
Online searches generally lead investors to pre-complied lists on various websites. These lists are typically based upon the short-term performance of funds and may include schemes that are at present in vogue but not suitable for long-term goals. These lists may focus on one category of mutual funds only because that category happens to be doing well at the moment.
A friend or colleague advice is also limited in that their preferences or investments may not coincide with other persons’ financial goals or risk appetite. Sometimes, this places the investor in suspense, amassing fund names without confidence in the decisions that he makes. So, to this end, some investors remain in mutual fund forums even after they commence investing.
For better clarity, the top 10 mutual fund schemes are enlisted. Two schemes from five different equity mutual fund categories have been opted, namely aggressive hybrid, large cap, mid cap, small cap, and flexi cap. This choice will offer a good balanced choice for regular mutual fund investors. However, the investors are advised to continue reading so that they can choose the right schemes according to their personal financial goals and risk-taking ability.
Top 10 Mutual Fund Schemes for October 2024
1. Canara Robeco Bluechip Equity Fund
2. Mirae Asset Large Cap Fund
3. Parag Parikh Flexi Cap Fund
4. UTI Flexi Cap Fund
5. Axis Midcap Fund
6. Kotak Emerging Equity Fund
7. Axis Small Cap Fund
8. SBI Small Cap Fund
9. SBI Equity Hybrid Fund
10. Mirae Asset Hybrid Equity Fund
Before investing, one should know each category well and how well it fits in with his or her investment goals and risk profile.
Aggressive Hybrid Funds
These were earlier called balanced or equities-oriented hybrid schemes. This is an ideal scheme for a first-time investor to venture into equity mutual fund. Hybrid portfolio, 65-80% equity and 20-35% debt is not so volatile compared to pure equity funds. Large Cap Funds are appropriate for cautious investors who are investing for a long-term so they would not like to face large market fluctuations.
Large Cap Funds
These are suited to conservative investors who, simultaneously want to remain invested in the equity market. This category of funds invests in the top 100 companies, thus providing more stability than mid and small cap schemes. Large cap funds should be considered by investors who are looking for modest returns with relatively lower volatility as compared to other equity mutual fund categories and these categories are relatively safer.
Flexi Cap Funds
Flexi cap funds, or diversified equity schemes, suit investors who can take on moderate risks. Such funds invest the whole range of market capitalization and sectors, and investors can then enjoy growth from various sections of the market. One can benefit from the uptrend in the stock market by investing in flexi cap schemes without being confined to one particular sector or stock category.
Mid Cap and Small Cap Funds
If you are aggressive investors and can take a higher risk to achieve high returns, there are mid cap and small cap schemes best suited for you. Mid-cap investment mainly invests in medium companies, whereas small cap schemes target the smaller or lesser companies in the market capitalization scale. Even though these plans are risky, the prospect of higher returns over a longer period of time does exist. Investors who have a higher risk tolerance and a very long time horizon may be drawn to such categories.
Lastly, it must be stated that not all searches for the “best” or “top” mutual fund necessarily land on the best choice. In order to do so, investors would have to narrow down mutual fund schemes to those that incidentally best serve individualized financial goals, investment horizon, and the risk that comes with such investments. It would be savvy if those who do not have the basic knowledge of mutual funds or are new to investment rely on a mutual fund advisor.
