Top 10 mutual funds to invest in 2022

Many new investors plan to start investing in mutual funds in the new year. Are you a new mutual fund investor? If this is the case, do not start your investments by researching the “10 best mutual funds” on the Internet. Most new mutual fund investors ask this question – to friends or colleagues or some mutual fund forums – early in their investing journey.

But finding the best patterns poses serious problems. read this article to understand why.

For example, an online search would bring you to certain websites with ready-made listings. Most often, programs can be short-listed on the basis of their short-term performance. Sometimes programs from just one category can dominate the list because it’s the flavor of the season. Some may follow the wrong methodology.

Some people never go beyond collecting the names of the best funds, as finding the best funds becomes their favorite pastime. A lingering doubt about the veracity of the names still holds them back. No wonder many investors continue to visit mutual fund forums for validation for years, even after they start investing.

This is why ETMutualFunds has decided to publish a list of the 10 best mutual fund systems. We have chosen two formulas from five different categories of equity mutual funds – aggressive hybrids, large caps, mid caps, small caps and flexi caps – which we believe should be sufficient for regular mutual fund investors. There are caveats: read to the end to make sure you choose the best regimen for you.

Here is the list of the 10 best diets:

Here are some tips that you should keep in mind when investing in these programs. First, find out about each category and whether it is suitable for your investment objective and risk profile.

Aggressive hybrid plans (or old balanced plans or hybrid equity-focused plans) are ideal for newcomers to equity mutual funds. These plans 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 programs. Aggressive hybrid programs are the best investment vehicle for very conservative equity investors looking to build long-term wealth without too much volatility.

Some equity investors want to play it safe even when investing in stocks. Large capitalization plans are for these people. These programs invest in the Top 100 stocks and are relatively safer than other pure equity mutual fund programs. They are also relatively less volatile than mid and small cap systems. In short, you should invest in large cap programs if you are looking for modest returns with relative stability.

A regular equity investor (with a moderate risk appetite) looking to invest in the stock market does not need to look beyond flexi cap mutual funds (or diversified equity programs). These systems invest in all market caps and sectors, based on the fund manager’s perspective. A regular investor can benefit from the uptrend in any of the sectors, classes of stocks by investing in these plans.

What about aggressive investors looking to pocket extra returns by taking on extra risk? Well, they can bet on mid and small cap patterns. Mid-cap plans invest primarily in mid-sized companies and small-cap funds invest in companies that are smaller in terms of market capitalization. These programs can be volatile, but they also have the potential to provide superior returns over a long period of time. You can invest in these categories of mutual funds if you have a long-term investment horizon and a higher risk appetite.

Finally, any search that begins with the word “best” is unlikely to give you the best solution. You should always choose a program that matches your investment objective, your time horizon and your risk profile.

If you do not understand these basic mutual fund concepts or are completely new to mutual funds and investing, you should always seek the help of a mutual fund advisor. .

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