Mutual funds are worthy investments for regular investors and have various factors including qualitative and quantitative assessments. Equity and debt funds use different time periods and assessment criteria. Each of them will have different risks involved, and provide different returns. The mutual funds which are mentioned below are on the top list and are best performing Mutual Funds in their particular categories:
Equity Funds Of Moderate Risks:
These are the funds that make an attempt to generate inflation affecting return and it tries to reduce the risks involved in it. It requires a time period of 5 years.
Equity Funds Of High Risks:
It has a potential to generate a large number of returns but it involves high risks and volatility. It requires a period of five years and review of performances.
Tax-Saving Funds Of Moderate Risks:
This type of equity oriented funds includes a time period of three years. It qualifies for tax saving up to deduction of Rs1.5 lakh under the section 80C of the Income Tax Act in the year it is invested.
Tax-Saving Funds Of High Risks:
This type requires a period of three years and it has the benefit of a deduction up to Rs1.5 lakh under the section 80C of the Income Tax Act in the year which the investment takes place.
Theme Funds:
Investors who select this type of fund have to tolerate high risks and they have to monitor the performance as well as exits on profit. It will hold potential in the future. This will have a time period of 2 to 3 year and it will have profits but it will not account your portfolio more than 5 to 10%.
Hybrid Funds of Moderate & Low Risks:
This will invest your two-third fund in equity and the remaining in debt as it requires a time period of three years. The funds with low risks are not selected for long-term portfolios.
The above mentioned are some of the top performing mutual funds. You will be clear about the risks involved in each fund. Before investing in any of the mutual funds, you must review each and every type, depending on their time periods and objectives.