Securing your future is essential if you want to nurture your financial status. Part of this is making use of the different investment vehicles that are available in the market. Whether mutual funds, bonds, ETFS, shares, etc. you need to start somewhere.
A mutual fund is one of the most basic and important
investment vehicles that a person deals with when they start investing.
Mutual funds are known to be extremely beneficial investment vehicles and can be used in
asset classes such as equities or fixed income. It is basically a company which
pools money from various investors and the money is invested in stocks,
short-term money market instruments, bonds, other securities or assets.
Investing in a mutual fund means that a person is buying a share of the company
and becomes a shareholder of the fund. They are beneficial as they provide easy
returns with a reasonable amount of security. You also have the flexibility of
investing in different schemes, professional management, diversification,
liquidity and tax benefits.
Although mutual funds are volatile in nature
and the amount of returns is subject to market risks there are certain mutual
funds which are known to be beneficial to invest in. The key is that you have
to be a smart investor. Some of the top mutual funds in India include:
1.
ICICI Prudential Banking and Financial Services
Fund – Retail: This is an open-ended equity scheme which aims at
generating long-term capital appreciation for its unit holders from a portfolio
which is invested in equity
and equity related securities of companies engaged in banking and financial
services. Some of the top holdings
include ICICI Bank, Mahindra & Mahindra Financial Services, HDFC Bank, Yes Bank, Union Bank of India, IndusInd Bank, Union
Bank Of India, Oriental Bank of Commerce, ING Vysya Bank and Federal Bank.
2.
Reliance Media & Entertainment:
This is a moderate multi-cap oriented fund. It mainly focuses on investing in
those companies which are related to the media and entertainment sector. This
type of mutual fund generates consistent return by investing in equities/equity
related or fixed income securities of the media and entertainment industry.
3.
SBI Magnum Sector Funds Umbrella – FMCG:
This is an open ended fund which has five different sectors that are dedicated
to specific investment themes. These include Pharmaceuticals, Information Technology, FMCG, Emerging
Business and Contrarian. Top holders include Hindustan Unilever, Glaxo
Smithkline Consume, ITC, Procter and Gamble Hygiene & Healthcare, etc.
4.
Religare Banking Fund:
This is an open-ended fund. Its main investment objective is to generate
long-term capital growth from a portfolio of equity and equity-related
securities of companies. Some of the top holdings include Federal Bank, HDFC
Bank, Karur Vysya Bank, Jammu and Kashmir Bank,
ICICI Bank, State Bank of India and YES Bank.
5. DSP
BlackRock Equity Fund: This
is an open ended growth scheme which seems to
generate a long term capital appreciation. This is achieved through a portfolio
of equity securities and equity related securities of issuers domiciled in
India. Some of the top holders include Max India, Bharti Airtel, Wipro,
etc.