InvestorQ : Which are the best mutual funds to invest from april 2019 as a beginner and no knowledge person in mutual funds if i want to set aside 15000 in sip for creating wealth in 7-10 years?
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Which are the best mutual funds to invest from april 2019 as a beginner and no knowledge person in mutual funds if i want to set aside 15000 in sip for creating wealth in 7-10 years?

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Pratik vyas answered.
1 year ago
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Firstly, it is nice to know that you are planning to invest in mutual funds for 7to 10 years since wealth creation doesn't happen overnight. One should remain invested when the market is in correction mode as weaker hands get out of the equity markets in correction and strong players wait for the correction to invest more. Since you are planning to invest Rs 15000 for 7 to 10 years and assuming you have moderate risk profile, a combination of largecap, balanced and smallcap funds will help you in the process of wealth creation.

Largecap funds primarily invest in largecap companies which has proven track record over the years and have establishes themselves as iconic brands in their respective sectors. Maruti Suzuki, Kotak Bank, Reliance Industries, Hindustan Unilever, Asian Paints are some of the examples of largecap names. Investing in largecap mutual funds will give you steady returns with moderate risk profile.

Balanced Funds are funds which invest in equity as well as debt. These funds give moderate returns but importantly it also helps to balance the risk of your mutual fund portfolio. These funds typically do well when market is in correction mode thanks to debt portion. Even when the market is in bullish trend these funds can give better returns compared to your traditional investment options like fixed deposits, gold, PPF, etc.

Midcap and Smallcap funds are moderate to high risk funds but they are also best performing funds in percentage terms for past many years. These funds will play an important role in wealth creation while largecap and balanced funds will provide stability to your mutual fund portfolio with good returns.

Following is the list of top largecap, balanced and smallcap funds that you can consider for investment

Largecap funds

- HDFC Top 100 Fund

- Reliance Largecap Fund

- Axis Bluechip Fund

Balanced Funds

- Mirae Asset Hybrid Equity

- HDFC Balanced Advantage Fund

Midcap/Smallcap Funds

- HDFC Smallcap Fund

- L&T Emerging Business Fund

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