what is the best and cheap mutual fund to invest in india?

i m danish from kanpu(u.p.). i m a student but this time i doing mcx commudity trading in which i lost a lot amount of money.till now. Plz suggest me how can we recover my money and which mutual fund is much better for me.

6 Replies to “what is the best and cheap mutual fund to invest in india?”

  1. Best mutual funds- equity are:-
    1.DSP Blackrock
    2.IDFC Premier
    3. Reliance
    4. Geojit bnpparibas
    5. Birla sunlife
    6. Ing vyasya
    7. Tata AIG

    also visit their sites for MFs past performances and their future earnings.

  2. A mutual fund may be defined as a professionally managed type system of collective investment scheme that obtains money from numerous investors and invests the funds in stocks, bonds, short-term money market instruments, and other securities. Mutual funds generally diversify their portfolio and minimize the risk factor. Besides there is the element of liquidity as mutual fund allows you to request your shares be converted into cash at any time.

    Some of the top mutual funds to invest in India are HDFC Mutual Fund, Tata Mutual Fund, SBI Mutual Fund, Reliance Mutual Fund, Kotak Mutual Fund, Sundaram BNP Paribas Mutual Fund, Franklin Templeton Mutual Fund, Birla Sun Life Mutual Fund among others.

  3. hi,
    there is nothing called cheapest fund. some fund will be RS 15/unit; some may be Rs 50/unit. u have to see the returns only not the size.
    best funds are there, which are giving highest returns. top funds will change every year.

    Equity Diversified
    DSP-BR Micro Cap Fund – RP (G)
    Principal Emerging Bluechip(G)
    DSP-BR Small & Mid Cap -RP (G)
    Birla SL Dividend Yield (G)
    ICICI Pru Discovery Fund (G)

    u can find big list at http://www.moneycontrol.com/mutual-funds/top-rated-funds

    best wishes.

  4. You must select funds with a consistent performance track record, which is a function of the sound investment processes and systems followed by the fund house.
    There are many funds, who are performing much better in current market. It is good to invest in mutual funds on regular basis. Instead of putting all your money in one fund, diversify it across 2 to 3 good schemes with a well established performance track record.

  5. Hi Danish

    Let me attempt your second question first if I have been able to understand the question correctly.

    From purchase/cost structure perspective, broadly there are two components which a investor can look at while purchasing a MF.

    1- FMC- Fund Management Charge this is in the range of 2-2.25% on the fund value and is calculated on daily basis.This is a important charge from buyer perspective as it is levied from the time of inception till redemption/closure/surrender by the customer. AMC’s (Assest management companies) also depend on this as income for the fund house for managing people’s money.

    For instance, look at FMC of NPS (New pension System) started by PFRDA. This is not a MF but pension fund open for Public. The FMC is 0.0009% which is slated to be world’s cheapest FMC.

    Similarly Insurance products linked to market,ULIP’s, have celing of 1.35% FMC as regulated by IRDA.

    Hence FMC is a deciding factor in net returns of the investments made by customer as the FMC is deducted in the form of units from the total fund.

    2- Expense Ratio – This expense is for managing the fund house vrious expenses. Usually in a stable or bullish market scenario and with increase in AUM size (asset under management) this cost is lower as the portfolio churn (buying and selling of stocks) is lesser by the fund manager. However this cost can differ from time to time and is not a choice in the hands of customer.

    Both FMC and Expense Ratio are mentioned in the application form. However,as a informed investor one should look at these expense from the date fund was launched by looking up websites like valuereserch.com or moneycontrol.com etc.

    Secondly, there is nothing such as ‘best fund’ for investment as there is no ‘best medicine’ for any ailment one may have. It depends on various ‘need points’ one may have which is basis the investment time horizon, risk appitite, life goal for which investment is being sought and understanding of invenstment by the buyer.

    Your need,as stated in the question, to to recover losses from commodity transaction. Well, your horizon looks short term to me from commodity market and the same expectation is also set forth from the capital/equity market. However, investment in MF have yielded double digit returns only in a mid or long term horizon. Looking at short term is trying to time the market and the same is risky, as you may also end up loosing- something which is also true for commodity or any other investment market scenario.

    The other avenue is to intra-day trading of shares which gives quick short term returns but the same requires indepth follow-up of stocks and their trend, knowledge of business models, being able to read books of companies on points like PE,EPS,BV,EBITDA etc. etc. OR have someone with vintage in market investments to guide and advice on ‘hot picks’ and when to book profits from them.

    Happy investing

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