Which funds to invest in 2017

However, this has not been completely understood by investors and many still continue to hold investments under the IDCW option. Many investors consider consulting a financial advisor as an unnecessary cost. They seek advice from their friends, colleagues and relatives and some just invest on the basis of tips received from social media.

Some even do it themselves by looking at the past performance of funds, which we have already depicted as a perilous exercise.

Investment is a lifetime process which changes at every stage of life. A financial advisor will not only guide investors in making the right asset allocation as per their needs but will also help in gaining the proper risk-adjusted return.

So unless you are armed with full knowledge, you should always take the help of an expert. Fixed income instruments, like bank deposits, bonds etc. A debt mutual fund is a holder of these instruments and in turn, it receives interest. However, the returns for investors vary as it is a basket of instruments. There are two important things to bear in mind while investing in debt funds — you are exposed to credit risk as well as interest rate risk. An investor may or may not get the same amount of return as the debt mutual fund valuation keeps on changing based on the interest rate scenario in the economy.

There are, however, two advantages of debt mutual funds — firstly, they are liquid and can be encashed at any time and secondly, the returns are tax efficient, if held for more than three years. It is very important that you are thoroughly informed about the products in which your money is being invested.

Not having adequate knowledge about your investments will lead you to commit mistakes throughout your investment journey. Knowing about the common mistakes made by the mutual fund investors, on the other hand, could help you in your investment journey.

Juzer Gabajiwala has over 20 years in the field of investments and finance. He joined Ventura Securities Limited in as head of mutual fund products distribution and has been Director at the company since Aashika is the India Editor for Forbes Advisor. Her year business and finance journalism stint has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas.

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As you can see below, the annual returns of diversified equity funds as a category have always been superior to large cap funds in most of the last 12 years -- starting from to till -- except in the year , and Year and were the years when markets gave negative returns.

Even after the great fall in , the diversified equity funds gave almost 85 per cent return in when the markets rallied, compared to around 65 per cent return by large cap funds.

Similarly, after a subdued performance in by both the categories, the diversified equity funds again bounced back by giving 50 per cent return compared to around 35 per cent return by large cap category in the year Even in terms of annualised returns, we found that the trailing returns of diversified equity funds were superior than large cap funds over the last 1, 3, 5 and 10 years period data as on December 23, In this context, however you may find that while investing in diversified equity fund is a better option for seasoned investors, for new investors, large cap mutual funds can still be the best option.

I n this post we will review some of the top performing diversified equity funds for investment in CRISIL ranks equity funds based on several parameters like average three year annualised returns, volatility, portfolio concentration risk both industry and company and portfolio liquidity risk.

Mutual Fund Quartile ranking is an analytical tool which measures how well a mutual fund has performed against all other funds in its category.

From the CRISIL top ranked diversified equity funds, we have selected only those funds, which are currently ranked in the top quartile based on trailing 3 year returns. Further, in order to see performance consistency, we have limited our selection to funds, which were in the top quartile in the previous two quarters out of three quarters. T he table below lists the top 8 diversified equity funds based on the above selection criteria.

Therefore, even though we have considered the fund ranking of CRISIL, we have chosen the schemes based on Advisorkhoj diversified equity fund category. As you can see in the chart above Source: AdvisorKhoj , other than Birla Sun Life Equity Fund, none of the funds could deliver double digit return in the last 1 year. Reshape Tomorrow Tomorrow is different.

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