Mutual Funds are the best tools for long term wealth creation. But, the challenge is to identify good and top performing mutual funds that can help you in achieving your Financial Goals. There are hundreds of mutual fund schemes which are available in the market. Besides this, there are plethora of NFOs (New Fund Offers, new schemes) which keep hitting the market. Identifying good mutual fund for long term investment is not an easy task.
'Wealth creation' is like Test cricket where a quick fifty or hundred may not always win you a game. You need the solidity and consistency of a Rahul Dravid or a Laxman more often than the flamboyance of a Sehwag to be able to emerge victorious over the five days.
A 'good mutual fund scheme' is one that consistently manages to outperform the Category it belongs to and also its Benchmark. I have tried my best to identify top performing and best Equity Mutual Fund SIPs (Systematic Investment Plans) that you can choose to invest in 2015.
Kindly remember, you first need to identify your investment objective, time horizon of investment and risk appetite to arrive at your Investment Plan. Equity Mutual Funds are risk oriented products. Invest in these top performing mutual funds through SIPs (or lump sum) if your time horizon is atleast 5 or more years.
Methodology to select Top Equity MF for SIPs :
I have judiciously followed the below points to shortlist the best equity mutual funds :
Returns : I have shortlisted these top performing equity MFs based on SIP returns (using SIP Returns Calculator of Moneycontrol.com). I have considered monthly SIP.
Another factor is 'the age of the fund'. How long has the mutual fund been in existence? That gives us a chance to look at its performance over long periods of time. Funds with a good track record for the last 5 to 10 years have been preferred.
Risk Vs Return : Some funds may generate very good returns but at the cost of very HIGH RISK. We need to look at risk-return trade off also. I have spent good amount of time on checking some of the important ratios to measure risks of mutual funds. These are like Standard Deviation, Alpha, Beta, Sharpe Ratio and overall Risk grades of the funds.
(What is Standard Deviation ? Standard deviation is a very important statistical measure to analyze the range of a fund's performance. When a fund has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility.Higher the Standard Deviation higher the fluctuations/volatility in returns. A Fund which can generate high returns consistently with low SD is a good one)
(Ratios to measure risk of a mutual fund : A good Mutual Fund ideally should have Low Standard Deviation, High Alpha, Low Beta and High Sharpe Ratio)
I have also considered Expense Ratio (in % terms) as one of the factor. (What is Expense ratio? Expense ratio shows the amount that mutual funds charge for managing the investors' money)
I have also checked the current investment portfolios of all these funds.
I have not considered the STAR ratings of funds provided by Ranking agencies. Usually these star ratings reflect the short term (1 or 2 year's) performance of the funds.
The primary sources of information are valueresearchonline.com and Moneycontrol.com.
I have tried to identify top performing mutual funds based on the Fund Categories like Large cap, Diversified, Small & Mid-cap, Balanced and Tax saving (ELSS)
15 Top Performing Equity Mutual Fund SIPs
'Wealth creation' is like Test cricket where a quick fifty or hundred may not always win you a game. You need the solidity and consistency of a Rahul Dravid or a Laxman more often than the flamboyance of a Sehwag to be able to emerge victorious over the five days.
A 'good mutual fund scheme' is one that consistently manages to outperform the Category it belongs to and also its Benchmark. I have tried my best to identify top performing and best Equity Mutual Fund SIPs (Systematic Investment Plans) that you can choose to invest in 2015.
Kindly remember, you first need to identify your investment objective, time horizon of investment and risk appetite to arrive at your Investment Plan. Equity Mutual Funds are risk oriented products. Invest in these top performing mutual funds through SIPs (or lump sum) if your time horizon is atleast 5 or more years.
Methodology to select Top Equity MF for SIPs :
I have judiciously followed the below points to shortlist the best equity mutual funds :
Returns : I have shortlisted these top performing equity MFs based on SIP returns (using SIP Returns Calculator of Moneycontrol.com). I have considered monthly SIP.
Another factor is 'the age of the fund'. How long has the mutual fund been in existence? That gives us a chance to look at its performance over long periods of time. Funds with a good track record for the last 5 to 10 years have been preferred.
Risk Vs Return : Some funds may generate very good returns but at the cost of very HIGH RISK. We need to look at risk-return trade off also. I have spent good amount of time on checking some of the important ratios to measure risks of mutual funds. These are like Standard Deviation, Alpha, Beta, Sharpe Ratio and overall Risk grades of the funds.
(What is Standard Deviation ? Standard deviation is a very important statistical measure to analyze the range of a fund's performance. When a fund has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility.Higher the Standard Deviation higher the fluctuations/volatility in returns. A Fund which can generate high returns consistently with low SD is a good one)
(Ratios to measure risk of a mutual fund : A good Mutual Fund ideally should have Low Standard Deviation, High Alpha, Low Beta and High Sharpe Ratio)
I have also considered Expense Ratio (in % terms) as one of the factor. (What is Expense ratio? Expense ratio shows the amount that mutual funds charge for managing the investors' money)
I have also checked the current investment portfolios of all these funds.
I have not considered the STAR ratings of funds provided by Ranking agencies. Usually these star ratings reflect the short term (1 or 2 year's) performance of the funds.
The primary sources of information are valueresearchonline.com and Moneycontrol.com.
I have tried to identify top performing mutual funds based on the Fund Categories like Large cap, Diversified, Small & Mid-cap, Balanced and Tax saving (ELSS)
15 Top Performing Equity Mutual Fund SIPs
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