Top 10 mutual funds to invest in October 2024

Many new and relatively inexperienced investors are always looking for the best mutual funds to invest. They ask their friends or colleagues or some mutual fund forums which are the best or best schemes while starting their investment journey or when they decide to invest extra money. But most of them are not satisfied with the answers they get from the Internet or from their friends for different reasons.

An online search will mainly take you to a few websites with ready-made lists. In most cases, plans can be shortlisted based on their short-term performance. Sometimes schemes from a single category can dominate the list because that category happens to be the flavor of the season.

Read also | International funds shine with gains of up to 20% in last week’s performance scorecard

Friends or colleagues may give you names of plans they like or are investing in. Again, there is no guarantee that the programs are actually right for you.

Some people never go beyond collecting the names of top funds because a nagging doubt about the veracity of the names always holds them back. It is no wonder that many investors continue to visit mutual fund forums for validation for years even after they start investing.

That is why ETMutualFunds decided to publish a list of top 10 mutual fund schemes. We have chosen two schemes from five different categories of equity mutual funds (aggressive hybrid, large cap, mid cap, small cap and soft cap) which we believe should suffice for regular mutual fund investors. There are caveats – read to the end to make sure you choose the best scheme for you.Read also | How to interpret the Treynor ratio in MF

List of top 10 schemes:

Here are some tips that you should keep in mind when investing in these plans. First, learn about each category and whether it suits your investment objective and risk profile.

Aggressive Hybrid Funds

Aggressive hybrid schemes (or previously balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (65-80%) and debt (20-35). Due to this hybrid portfolio, they are considered relatively less volatile than pure equity schemes. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors looking to create long-term wealth without much volatility.

Large cap funds

Some stock investors want to play it safe even when investing in stocks. Large cap schemes are meant for these people. These schemes invest in top 100 stocks and are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than midcap and smallcap schemes. In short, you should invest in large cap systems if you are looking for modest returns with relative stability.

Flexible limit funds

A typical equity investor (one with a moderate risk appetite) looking to invest in the stock market need look no further than loose-cap mutual funds (or diversified equity schemes). These schemes invest across market capitalizations and sectors, as per the opinion of the fund manager. A regular investor can benefit from the bullish trend in any of the sectors and categories of stocks by investing in these schemes.

Small and mid-cap funds

What about aggressive investors looking to earn additional returns by taking on additional risks? Well, they can bet on midcap and smallcap schemes. Mid-cap schemes invest primarily in medium-sized companies and small-cap funds invest in smaller companies in terms of market capitalization. These schemes can be volatile but also have the potential to deliver superior returns over a long period. You can invest in these categories of mutual funds if you have a long-term investment horizon and an appetite for higher risk.

Finally, any search that starts with the word “best” or “best” is unlikely to give you the best solution. You should always choose a scheme that matches your investment objective, horizon and risk profile. If you don’t understand the basics of mutual funds or are totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor.

If you are looking for our recommendations in various mutual fund categories, check out: The best mutual funds to invest