Top Mutual Funds: A Supplement to Multiply your Money

Is there any substitute for the best? If given an option of choosing between a star rated product and an average product, what will you opt? Obviously, everyone will like to choose the best. Compromising on quality will save money for once but can cast an adverse effect over long-term. Therefore, one should always keep in mind the long-term effects along with other factors.

In the same way, selecting the top mutual funds for your investment will surely take your investment to new heights. Opting for a scheme which is not a good performer can result in decreased return and in extreme cases, loss of principal amount also. But then again a major question arises here is that how can one determine which fund is in the list of top ranking schemes?

The performance of the funds is measured through the rating provided by CRISIL (Credit Rating Information Services of India Limited). The score varies on a monthly or quarterly basis. But, the rating cannot serve as a benchmark to identify any fund as a top performing mutual funds. There are other factors involved; the major one is the past performance of the fund. CRISIL has very strict norms that have to be properly followed by all the schemes to get ranked by the agency. The fund needs to produce a performance record of past three years to the agency which should be according to the standard of the industry.

Selection Criteria of a Top Mutual Fund
Other than the rating aspect various other reasons make any scheme stand in line with the plans at the crest. They are as follows

• Past performance of the fund: The previous performance of the mutual fund should be the best in comparison to the other funds in its category. Whether regarding AUM, a number of clients and the rate at which it can serve the returns to its clients. It should follow continuity in its operations and have regular investments by the clients. 
• Consistency: Any fund to be ranked among the top fund should be able to show a consistent graph of performance. Monitoring the past performance does not mean that the fund performs well for the first year and starts showing downfall from the second year. A consistent growth pattern should be followed. 
• Fund Managers: The fund managers are the ones who maintain the portfolio of the clients. If the fund manager is experienced and well-versed with the market conditions, then he will prove to be a boon for the scheme and AMC altogether. Hence, any scheme having a proficient fund manager will always be the preferred scheme for investment by the clients.
• Assets Under Management (AUM): The assets that are managed under a particular scheme also decides its fate. As the AUM of any scheme rises it shows the progress graph for it. The rising AUM is enough to state the popularity of the plan and is very much essential to make it stand in the limelight easily. AUM depends on the category to which the fund belongs.
• History of Asset Management Company (AMC): AMC is the company which provides the various mutual funds, for example, SBI mutual fund, UTI mutual fund. The origin and the tenure for which it is operational decides the trust that the clients will have in the schemes. Let us take the example of UTI mutual fund. It is the first financial sector company of India. Thus, it has a reach to wider section as compared to any novice company like DSP BlcakRock mutual fund. So, a well-established AMC has greater chances of reaching the pinnacle as compared to a newbie AMC.

Some of the Top performing Scheme under various categories

The top funds are selected on the basis of different categories which the mutual fund industry provides. They are:

1. Equity funds: Equity schemes are the type of mutual funds which are based on providing capital appreciation having a high risk factor. The clients who can afford to take the risk are the prime targets of the AMCs. Therefore, one can observe the list of top performing funds which are ranked high on the scale of performance by CRISIL. There are various sub-categories like Large Cap, Small Cap and Mid Cap in equity funds.  
2. Debt funds: A category of funds which extend the benefit of fixed income generation for the clients. This means that the scheme ranks low on the risk meter and the priority list of the risk-averse customers. They are ready to sacrifice the returns but are not willing to compromise the security of their money. There are many types of debt funds like debt long term, debt short term, gilt funds, etc.
3. Hybrid Fund: The category of funds which invests in equity and debt funds equally. Hybrid funds provide the facility of capital appreciation as well as security in their investment by maintaining a balance between both. The client can enjoy the sweetness of debt funds and the sourness of equity funds in one single scheme.

Thus, we can see that the top performing mutual funds are able to facilitate an increased yield to the clients in return for their investments. My SIP online.com is one of the online investment portals which helps the clients to invest and redeem their investments in an easier way. Thus, invest and grow without any worries.

Plan Your Investments in a Better Way

SIP returns planner is a very simple yet a powerful tool which can be used by clients to calculate their returns on their investments through SIP. Talking of SIPs which are an investment methods for parking the surplus money in mutual funds which are presently gaining pace to become one of the most preferred investment mechanisms over a period of time. SIP calculator which is an online tool, helps the clients to compute the amount you need to invest regularly over a long-term to attain the financial goals that require copious amount. The investment objectives can vary from buying a house to planning for your child’s future. This calculator will not only help you to plan for your investment targets but will also make it clear that how much amount should be required to fulfill those aspirations. It is an important tool as it is the part of the planning mechanism. The clients need to plan before they invest and to plan they need accurate figures which will clear their concepts and open up avenues according to their capacity and help them to locate the correct scheme suitable for investment according to their needs and affordability.

For example, if a scheme provides 12% CAGR (Compound Annual Growth Rate) according to simple interest the expect growth will be 1%. But, the same is not true. SIP return calculator computes the return percentage on the basis of compound interest. Hence the the correct formula is CAGR = [(Current Value / Beginning Value) ^ (1/# of Years)]-1. This means that the client will get a return as per the formula i.e., (1+12%)12 -1 = 0.949%. It may appear to the clients that the difference calculating with simple interest and compound interest is very less. But, it creates a huge gulf when it comes to giving returns on the invested sum. The clients need to understand that a difference of even a .50% makes a the returns fluctuate to a high degree.

The above-mentioned formula may seem to be quite easy for computing once but when the calculation has to be done repeatedly for a long duration, then it becomes an intricate task for the investors. They take help of investment experts who sometimes tend to trick them into schemes which are not suitable for them or make them pay an amount greater than what may be required just to earn an appreciation in their salaries. To avoid all such problems the mutual fund experts have come with an innovative idea of automating all the mutual fund transactions. The clients now have access to a more lucrative option which makes it easier for them to create wealth. With a minimum amount of paperwork involved in the process, the clients are free to invest anytime and from anywhere. It is true that the clients have become independent and the cases of frauds have reduced due to the online process. Still the computation of SIP amount and the returns remains to be a tough task for the clients. To ease out this tautness an online tool has been devised known as SIP returns calculator. The clients have to make just a few entries and the result will be given to them within no time. Mutual fund investment planner works on the data with complete transparency and produces unambiguous results. This means that the clients have a trustworthy friend who will not only ease out their planning but will also make them create wealth according to their investment needs and affordability.

Summing up, one can say that SIP calculator not only makes the clients happy but also facilitates a better and secure way to calculate the returns, amount required to be invested along with the corpus in a quick manner. It is a freely available tool at My SIP Online which will provide access to better planning for your SIP. This tool at can be used both by online and offline investors equally. SIP calculators is a handy tool for all the investors and helps them to make investing decisions which suffice their requirements and suits their budget as well.