Best Mutual Funds for Investors With Moderate Risk Appetite


Today, everyone wants to make more money. You as an investor might want to build yourself some good wealth so that you can enjoy the rest of your life. However, this is easier said than done. Nonetheless, creating more wealth does mean that you will have to create a best mutual funds portfolio. This way, you can have more money for yourself in the medium to long-term. But this also means that you should be willing to take a certain amount of risk.

Creating an Investment Strategy

Before you go off investing, you must first strategize. A good strategy is key to a good investment. Be it saving for your retirement or for college, creating a smart investment strategy can’t happen overnight. If you’re serious about building good wealth for yourself, then you will need to work hard for it. With that said, all you need to do to create a good investment strategy is mobilize your funds and work hard in an efficient way. However, here are some tips that will help you get this done.

  • Keep Your Goals in Mind

    Your short-term, as well as long-term investment goals, are vital to a great investment strategy. So, start laying them out, so that they can help determine what kind of an investor you are.

  • There are Plenty of Options to Explore

    When it comes to investment, there are many options to choose from. These can include anything ranging from retirement plans to real estate to mutual funds. So, considering many options together makes it easier for you to create a solid investment strategy.

  • Investments Should Come Before Savings

    Always keep this in mind before you make any sort of investment. You must ready the capital before you go off investing. So, always check to see how much cash you’ve got for your investment strategy.

  • Be Smart While Diversifying Your Investment

    Diversification is a vital part of your investment strategy. It all depends on what kind of strategy you want to implement. For example, if you’re looking to invest for your retirement, then you could probably turn up the risk factor and take more risks. But in case you need the money in a few years, or in case you wish to make a short-term investment, then cutting down on the risk factor will probably help you out there by keeping the cash flow intact.

  • High Investment Costs Can be a Burden

    Those investment options that cost a fortune tend to slowly disintegrate your investment portfolio. So, always try to invest in products that cost the lowest, but still give you the kind of returns you are looking for. You can always play safe by investing in those index funds which tend to have exposure to a wide range of both domestic as well as international stocks and bonds. All these features make them one of the excellent-most choices for your investment.

  • Make Consistent Investments

    Buy when the real estate markets are falling. This is because, when the real estate markets are down, every buck you invest can buy you more, than when the markets are soaring. This eventually gets you that added advantage of selling for a higher profit when the markets recover. However, this is one of those long-term investments, so don’t bet on those short-term fluctuations.

  • Micromanagement Can be Stressful

    Micromanagement of your investments or funds can truly be stressful. So, don’t go checking your bank account daily. However, it is all the important that you look up your investment at least one or two times a year.

  • Try to Save on Your Taxes

    The government is always on the lookout for a cut from the money you get out of your investments. However, there are certain things you can do to evade this. One of these ways is to keep the money in your retirement account. This will surely help cut down on the taxes you have to pay.

  • Start Building Upon Your Savings

    Sometimes, building upon your savings can be the hardest part of creating a good investment strategy. It really depends on how much you can save after your monthly expenses and how much you’re willing to invest out of those savings. But you need to step up your game of investing each year. This means that you will have to increase your investment by a certain percentage than you did the previous year. This will ensure that your portfolio is built up and so are your savings.

Also read: Know the Basic of Stock MarketBest ULIP Plans in India

Saving Money for Your Investment

Saving money and boosting your income through income is really very simple. All you must do is increase the amount of income and cut down on your costs and spending. If you want to have more money for your future, then you got to start saving and you got to start saving early. This way, you can earn a fixed amount of income post your retirement, which will help you lead a good, if not great life. So, here are some tips you that will help you do just that.

  • Save for Financial Emergencies

    A well-built financial plan relies on a sound emergency savings account. A financial emergency can strike at you any time and can come in many forms including a major illness which requires hospitalization or even a circumstance such as getting thrown out of a job.
    In general, you should try saving so much so that it will cover at least three to six months of expenses.

  • Try Spending Less and Saving More Instead

    If you’re a person who’s a spendthrift, then it’s time that you stop and look to save. Try cutting down on buying very expensive things or things that are not necessary. But one important thing to remember is that when you do save, don’t put those savings in your pocket or bank account where you have access to it, and would feel like spending it off again. Try putting them in financial tools such as mutual funds. Or you can even try investing in real estate, in case you’re up for it.

  • Creative Making Money Ideas

    When you go off to make money, get a little more creative than usual. Now there are two ways in which you can do this. One, you can find a job that pays well, or two, you can run some sort of business wherein you’ll be making a ton of money if you’re really apt. Also, you can try selling off stuff you don’t need. This will get you that extra cash edge that you need.

  • Take One Step at a Time

    For some people, saving money can be a lot harder than usual. In such cases, try taking one step at a time. Save small amounts of money. You can always go big later. However, if you’re a person who’s spending more than what you can earn, it calls for major financial adjustments. This can range anything from selling off that expensive car of yours or moving into a much affordable house.

  • Planning your Budget

    For some investments, risks can be quite high. And for some, they can be the exact opposite. The general thumb rule here is for younger people to invest more aggressively and for older people to invest timelier. However, you should always try to diversify your investments to get a solid portfolio. Now whether you’re an expert or a beginner at investing, you should always avoid those high-risk investment options. Risks and rewards are always directly proportional to each other. So, if you’re getting a lot of returns from your investments, you can surely expect a lot of risks involved as well.

  • Costs Involved in Investments

    Be it stocks, mutual funds or commissions, or even retirement plans, you can expect to incur a lot of costs or expenses. Sometimes, you may get retirement plans from your employer which doesn’t seem to cost much. However, at other times, they can be quite expensive, nonetheless. So, use your discretion to decide on whether you should go for an investment plan provided by your employer or whether you should invest in one yourself based on the expenses incurred.

  • Plan your Investments and Stick to it

    A dip in the stock market means that it’s time to buy. And a subsequent rise means that it’s time to sell. So, use your intuition accordingly to decide whether to buy or sell. Make an investment strategy and try to stick to it. Your investment strategy should consider everything, including the risks involved and not to mention, the market conditions as well.
    Additionally, you should also try and review your investment strategy one or two times a year, and make changes according to the current market trends, if necessary.

  • Don’t be Afraid to Seek Financial Expertise

    One of the many things that most investors dread is seeking help. However, when the time comes to start investing, some people are baffled as to where exactly they can begin. Financial aid and assistance come in handy in such situations. But you got to be careful here as well. Do your homework first and find a low-cost service, so that you can get more out of your investments and not be spending much on financial expertise as well. And of course, a low-cost service doesn’t necessarily mean that you must compromise on the quality.

Best Mutual Funds With Moderate Risk Appetite

Investments really depend on the amount of risk you’re willing to take. However, if you’re a person who’s willing to take some amount of risk, but not too much, you might as well go for multi-cap mutual funds. Multi-cap funds are those which allow you to widen your investment horizon by investing your money across various sectors. Of course, all this depends on your fund manager and his capabilities to invest your money.

Now although multi-cap funds are considered as the safest possible option for investors with moderate risk appetite, you can likewise reduce the risks involved by investing a small amount in large-cap funds as well. So, having said that, here are some of the best multi-cap funds that you can invest in, right now.

  • Motilal Oswal Multi-cap Fund

    Although the Motilal Oswal multi-cap fund has seen a downside growth in one year, it has a considerable amount of growth in a three-year span, giving returns up to about 12.47%. So, you can say that Motilal Oswal Mutual Funds is a pretty good option to invest in, in case you’re considering investing in multi-cap funds.

  • Mirae Asset India Equity Fund

    This fund gives returns of up to 2.71% for a year’s investment, 14.73% for three years, and about 19.62% for five years respectively. Looking at these figures, it seems that this fund has been a consistent performer, and would be a very good investment option to consider.

  • SBI Magnum Multi-cap Fund

    This multi-cap fund doesn’t give all that a great one-year return. However, it does give a good three-year return, which seems to stand at about 11.62%, and not to mention, a good five-year return of about 19.26%. Nonetheless, this is a good multi-cap fund to consider overall.

  • Kotak Standard Multi-cap Fund

    The one-year returns this fund gives is good, but not that great. However, it’s three and five-year returns seem to be pretty good and stand at 12.91% and 19.22% respectively, which makes it a safe bet.

  • The Aditya Birla Sunlife Equity fund

    The Aditya-Birla group has been a long-time player in the mutual fund industry. And this fund seems to be growing at a good rate, although it’s one-year return is on the downside. It gives three and five-year returns of 13.6% and 20.09% respectively and is one of the better options out there that you can add to your portfolio.

So far, you have seen some great mutual funds that you can consider as investment options. Of course, mutual funds are a great investment option altogether. However, they are not the only ones. You have many more options as discussed above such as retirement or pension plans or even stocks and shares. So, what are you waiting for? Start investing in them today!

Must Read: Ulip vs Mutual Fund | How ULIP Plans Work


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