It is always a difficult proposition to choose the best mutual fund scheme. Sometimes a fund that performs badly for a period, may suddenly recover, if the stocks in its portfolio fire. On the other hand the opposite is also true, wherein a fund performing well, may suddenly have a period of bad performance. We have chosen herewith a mix of 5 best mutual funds, considering the portfolio, past track record and a diversified outlook.
Reliance Large Cap Fund
This is a large cap fund from the Reliance stable that largely invests funds in largecap stocks. The performance of this fund in the last 1, 2 and 5-years has not been great, in line with most other large cap funds. It has generated a 1-year return of -9.22 per cent, while the three year returns has been 6.66 and the 5-year returns has been 8.09 per cent.
Those who have invested in the past, may have found that the returns have not been great. However, we wish to point out that at the current NAV, those who invest now are getting it much cheaper than at most times in the last 1-year.
The fund has holdings in State Bank of India, ICICI Bank, Larsen and Toubro, Axis Bank, ITC etc. It's important to remember that equity investments are subject to market risks and this is an equity fund.
Reliance Prime Debt Fund
Reliance Prime Debt Fund is a debt fund that largely parks its money in corporate bonds. The fund has generated a decent returns of 8.40 per cent over the last 1-year, while the 3-year returns is 7.35 per cent. The fund has holdings in high quality debt including the likes of Shriram Transport Finance, Panschil Corporate Park, Adani Transmission etc. This investment is for those who are risk averse and do not wish to take a risk in equities. The expense ratio of the fund is also rather low.
The fund does not have exposure to equities and hence those who are looking at safety this is a good fund to go with.
Reliance Gold ETF
This is one of the best performing schemes of Reliance Mutual Fund in the last 1-year. It has generated a returns of 31 per cent in the last 1-year. Gold ETFs track international gold prices and this is one reason why Reliance Gold ETF has shown spectacular returns. Gold itself has rallied by a similar amount in the last 1-year, which is why Reliance Gold ETF has generated spectacular returns
Those looking to diversify their investment can look to invest in Reliance Gold ETFs at the current prices. Remember, it is much better to buy Gold ETFs than buying physical gold, as there is no worries of theft nor is there worries over storage. They are also very liquid.
Reliance Growth Fund
Reliance Growth Fund is a fund that is largely geared towards investing in midcap stocks. What this means is that investors which an appetite for risk, should invest in this fund. Remember, midcaps by nature are risky. Reliance Growth Fund has generated a 5-year returns of 8.20 per cent, while the 10-year returns has been 10.83 per cent. The fund has holdings in Varun Beverages, Cholamandalam Financial Holdings, Aditya Birla Fashion Retail etc.
The asset size of the fund is around Rs 6,257 crores which is pretty sizeable. Midcap stocks have not performed in the last one year and this reflected in the short term returns of Reliance Growth Fund. Therefore, it is important that investors take a more long term view of this fund, as in the more short term, it could be very volatile.