Dec 08, 2016 4 min read

Top 5 Equity Mutual Funds for Wealth Creation

If you are looking for the five best equity mutual fund schemes for a productive investment portfolio, then this blog is a must read for you.
Are you looking for investment in the equity mutual funds? Do you know which fund is best suited to your requirement? If not, then you are at the right place. Here we have provided the top and best-performing equity mutual funds for a productive portfolio.

Selecting a mutual fund for investing the hard-earned money is the most important decision indeed. It takes in-depth research and analysis before making the final choice of the scheme. Prior to selecting a particular fund for your portfolio, you must know your risk profile and of course your investment goal. Your decision can be proved fruitful only if you take it on the basis of a set financial goal.

On the flip side, one should take into consideration various other factors as well while making the choice of a particular scheme. So let us tell you about the parameters which must be taken into account by an investor while making the selection of a particular scheme for his/her portfolio.

  • Performance Ranking: The performance of the scheme and its ranking as per CRISIL rating should be the primary factor which must be considered by the investors while making a choice or selection of a scheme.
  • Ratio Analysis: The risk and return ratio of the scheme like standard deviation, Sharpe ratio, etc., must also be taken into consideration as they help you in examining the proficiency of the scheme to yield the expected returns.
  • Expense Ratio: The expense ratio is the one which adds to the total cost of investment. So one must evaluate the overall cost and confirm that it is affordable enough.
  • Fund Manager’s Experience: The schemes are managed by the fund managers of the AMCs. Before buying a strategy, one must consider the past performance and experience of the fund manager.
  • Scheme’s Asset Size: The asset size of the scheme denotes the overall funds which are managed under the particular scheme. So before buying the plan, you can evaluate its market holdings and take the decision accordingly.

In accordance with the various factors as discussed above, one can easily take the best investment decision for one’s future. Our fund analysts can further help you in making the right choice. Here we have mentioned the best-five equity mutual funds for investing your money in order to generate wealth.

  1. Franklin India Prima Plus Fund: It is an open-ended growth scheme which has been formulated by the experienced fund managers of Franklin Templeton Mutual Fund. It has been ranked second under the Diversified Equity category and provides greater returns to the investors. Its absolute returns were 56.4 percent in the year 2014, and thus it is beneficial for the investors to invest in this scheme to attain their long-term investment goals with minimised risk.
  2. DSP BlackRock Opportunities Fund: This plan has been ranked third under the Diversified Equity category by CRISIL for the quarter which ended in June 2016. The absolute returns offered by this scheme in the year 2014 were 45.1 percent. Accordingly, the scheme can offer tremendous returns in the future as well. The portfolio of the scheme has been designed in a well-diversified manner which ensures high-yielding profits.
  3. Birla Sun Life Equity Fund: This scheme holds three-star rating and is ranked third in the Diversified Equity category by CRISIL for the quarter which ended in June 2016. It has been outperforming its benchmark and category since its inception and has yielded up to 56 percent absolute returns in the year 2014. It is noteworthy that the portfolio of this scheme is held to be effectively managed with the major investment in the growth-oriented companies.
  4. SBI Blue Chip Fund: Being a product of SBI Mutual Fund, this scheme is among the most preferred ones in the industry. It has been ranked first in the Large Cap category as per CRISIL rating for the quarter which ended in June 2016. It has been outperforming its benchmark for a long time and has offered absolute returns up to 47.4 percent until now. The investors seeking capital growth over a considerable period of time must invest their funds in this programme to gain high returns.
  5. Kotak Select Focus Fund: It is an open-ended equity fund which falls under the large-cap category and ranks first as per CRISIL rating for the quarter which ended in June 2016. This scheme has been offering greater benefits to the investors and has yielded up to 57.8 percent absolute annual returns. The scheme has well-diversified and effectively-managed investment portfolio which aims to provide long-term capital growth. So the investors seeking wealth generation can put their money in this plan.

As per our research and analysis and by considering the basic parameters in mind, we have listed these five most effective equity mutual fund schemes for investment. MySIPonline has always focussed on providing the best online investment solutions and financial advisory services and thus we have listed out these scheme to help you in taking an informed decision. In case you need further assistance you can come in contact with our fund analysts anytime.