Here's How to Invest in the Best Mutual Funds in 2022 | Motilal Oswal

Invest in Best Mutual Funds

For some investors, growing wealth is an obsession and investors try to find new ways to create wealth. Needless to say, the means of wealth creation are several these days, with options to invest in the best mutual funds. For big-ticket investors with experts helping  them make accurate investment decisions, getting rich is easy. For small investors, mutual funds are good.  

  • The Best Mutual Funds in India

For a small-scale investor who wishes a fairly decent return on investment, different types of mutual funds offer up a good opportunity of investment. As these are managed professionally, small-scale investors, who may not be able to afford experienced consultation, can invest conveniently, and thus, meet financial goals. First, before you find out how mutual funds can grow wealth and which are the best to invest in, you should know what they are. 

  • Mutual Funds Explained

When you consider the best mutual funds to invest in, you should know what you are investing in and how you can gain returns. A mutual fund is an investment tool that is managed professionally. The fund works by pooling funds from different investors and the corpus that is collected is invested in various classes of assets. The assets that are chosen to be invested in depend on the ultimate investment goal of the given fund. The best mutual funds are invested in by investors who are called unitholders. This is so because investors are allotted units at a particular price, the NAV or Net Asset Value of the said fund. Since mutual funds are run by fund managers who are professionals, the investment decisions can be depended upon with a calculated amount of risk. Moreover, mutual funds, unlike stocks, diversify risk. Besides this, mutual funds maintain a low investment cost and this keeps investors relatively safe from the volatility of the market. 

  • The Best Funds

When you choose to invest in mutual funds, India has a lot to offer. However, you should know that the best mutual funds may be recommended on the basis of a lot of factors, and what analysts may recommend may vary, depending on the fund and its assets. Moreover, you should know that mutual funds offer a tax benefit too, so tax saving mutual funds are a good idea to check on. Coming back to the best funds, the following features should be sought when you invest in mutual funds: 

  • The best funds have a high AMC grading. This means that the asset management company managing the funds has a skillset and a long line of experience in efficient investment. 
  • The asset management company that manages the mutual funds should have an AUM of at least Rs. 500 crore. AUM or assets under management being high ensure that fund managers can prevent pressure from markets and remain invested. 
  • Good mutual funds have a history of generating consistently good returns. Fund managers know which assets can yield good returns and this makes the fund proficient. 

The Funds for You

At Motilal Oswal, you can invest in mutual funds like the HDFC Midcap Opportunities Fund,  or any others that one of the most reputed brokers in India suggests. 

Related Blogs: How to Analyse Mutual Funds for Big Returns | Things to Know Before Investing in Mutual Funds | Mutual Fund - Need of Financial Plan | How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account

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