Nov 24, 2017 4 min read

Check If You Missed Investing in Any of These Mutual Funds

Did you added these categories to your mutual fund investment portfolio?
Through our blogs, we always try to enhance your knowledge of mutual funds and the related facts. We have seen many investors who still have the one-sided investment portfolio in mutual funds, i.e., deploying whole or the majority of the capital into one particular category of schemes.

When talking about mutual fund investments, the first thing that clicks in mind is equities. It is because of their famous nature. They are highly rewarding due to which majority of the investors love to invest their money in them. But, do you think it is enough? We don’t! Equity alone cannot fulfil all your financial dreams. However, there are specific categories such as debt fund, ELSS, balanced[fund], etc., for different types of investment objectives. We suggest having a perfect blend of all the categories in your portfolio so that you can attain all your financial goals efficiently.

Here are the most important categories of mutual funds which you must have in your portfolio:

Diversified Equity Mutual Funds: Although equity is the star of mutual fund industry, not all have guts to invest in sectoral equity funds. So, diversified equity funds allow the investors to deploy their capital into the stocks of various companies such as large, mid, and small-cap. They allocate the assets in a diversified manner across the sectors and scales, so that loss incurred in a particular sector doesn’t affect much to the rewardability of the scheme. So, the investor gets assurance of sustainable returns in the long-term period. One must invest in this category for at least 3-5 years to attain medium to long-term financial goals. Some of the experts’ recommended diversified equity funds along with their trailing returns as on November 21, 2017, are mentioned in the table below:

Diversified Equity Mutual Funds

Equity Linked Savings Scheme (ELSS) Funds: When you are done with investing in the diversified equities, you also need to think about saving taxes. Equity Linked Savings Schemes fall under the tax saving category of mutual funds. They allow you to get various exclusive benefits when you invest in them. They are entitled to provide you the tax deduction of up to Rs. 1.5 lakh under section 80C of the Income Tax Act of India, 1961. Moreover, they allow you to reap high returns on investment from equities[]. So, this is one of the must-have mutual fund categories for you to make a healthy investment portfolio. Some of the experts’ recommended ELSS funds along with their trailing returns as on November 21, 2017, are mentioned in the table below:


Liquid Funds: You can attain all your long-term objectives and tax saving goals by investing in the two categories as mentioned above. But, is it enough for you? Don’t want to get protection against any uncertainty or emergency financial needs? Future is unforeseen, and you can’t make out today what may happen tomorrow. All you can do is be ready to tackle any kind of situations for the best results. In any financial uncertainty, liquid funds help you to go smoothly. So, it is also one of the must-have mutual fund categories in your portfolio. Liquid funds invest in various debt and money market instruments which provide healthy interests on the investment. You can redeem your money at any point in time as and when required as they don’t charge any exit load. Some of the experts’ recommended liquid funds along with their trailing returns as on November 21, 2017, are mentioned in the table below:

Liquid Funds

Balanced Funds: Last but not least, you must also have balanced fund in your investment portfolio. Some investors are confined to a single category; for instance, the aggressive ones in equity, and the defensive ones in debt. But, this style of investment doesn’t allow them to reap the benefits from all the corners. So, along with having all the three above-mentioned categories, you must also have a chunk of balanced funds in your portfolio. They are known for providing stabilised returns along with a decent capital appreciation in the long run. As they invest in a mix of debt and equities, the risk gets reduced. Not only these are ideal funds for the newbies, but the experienced ones also prefer having them in their portfolio in order to maintain a balance between returns and value. Some of the experts’ recommended balanced funds along with their trailing returns as on November 21, 2017, are mentioned in the table below:

Balanced funds

The four categories of mutual funds as mentioned above are the most important ones, and you should not miss investing in them. As the basic things such as food, shelter, and clothes are important for your life, these four categories are also crucial when it comes to secure or plan your financial life. Diversified equity helps your money to grow, liquid fund protects you against uncertain or emergency requirements, whereas ELSS saves your taxes, and balanced funds provide you with both value and growth. So, get them all in one place, i.e., in your portfolio to go a long way in order to attain financial stability in your life. All the funds which are mentioned in the different tables above are recommended by the experts working at MySIPonline, so you can choose any of them to invest.