How to Find Best Mutual Funds to Invest in 2024 | Mutual Funds in Telugu | Kowshik Maridi

Summary

This video offers valuable insights on investing in mutual funds, with a focus on equity funds such as large-cap, mid-cap, and small-cap. It highlights the importance of fund ratings, asset management, and historical returns as key factors in selecting the right funds. The script also covers investment strategies for long-term growth, emphasizing the role of experienced fund managers and the potential risks involved. It introduces viewers to top-rated funds, such as the Nippon India Large Cap Fund and Motilal Oswal Mid Cap Fund, guiding them in making informed decisions for better returns. Additionally, the video touches on insurance plans with tax benefits and critical illness riders, offering a holistic view of financial planning.

Takeaways

• 😀 Mutual funds are a great way to invest and diversify your portfolio, with a variety of options based on market capitalization (large cap, mid cap, small cap).
• 😀 When selecting mutual funds, consider key factors such as ratings from agencies like Morningstar, Value Research, and CRISIL, which help assess the fund's performance.
• 😀 A fund's assets under management (AUM) is a crucial parameter, with a threshold of at least ₹15,000 crore being considered for reliable investment options.
• 😀 Past performance is an important indicator. Look at long-term returns, such as 5-year, 3-year, and 1-year performance metrics, to assess potential future growth.
• 😀 For equity mutual funds, large-cap funds typically offer lower risk but slower growth, while mid-cap and small-cap funds have higher risk but can yield higher returns.
• 😀 Large-cap funds usually invest in the top 100 companies by market capitalization, while mid-cap funds target companies ranked 101 to 250, and small-cap funds focus on smaller companies.
• 😀 When investing in large-cap funds, they tend to invest in stable, well-established companies, whereas mid-cap funds may focus on growth potential in expanding companies.
• 😀 Small-cap funds carry higher risk but can offer substantial growth, particularly in a favorable market, making them suitable for investors with a higher risk tolerance.
• 😀 Ratings like CRISIL and Value Research provide guidance on the fund’s stability and potential. A 5-star rating indicates strong performance and a solid investment choice.
• 😀 It's essential to choose a fund manager with experience and a solid track record of managing funds successfully across various market conditions.
• 😀 Life insurance policies also offer valuable benefits such as tax savings and critical illness coverage. It's important to choose the right policy based on your family’s financial goals and risk preferences.

Q & A

What are the key parameters to consider when choosing a mutual fund?

The key parameters include ratings from agencies such as Morningstar, Crisil, and Value Research. These ratings help assess the quality of a fund. Additionally, the Asset Under Management (AUM) and the fund’s past performance over the last 1, 3, 5, and 10 years are important factors.

How do ratings influence mutual fund selection?

Ratings from agencies like Morningstar or Crisil can indicate the performance quality and reliability of a fund. Funds rated 4 or 5 stars are generally considered better choices for long-term investments, based on historical performance and management quality.

What role does Asset Under Management (AUM) play in mutual fund selection?

AUM refers to the total value of the assets managed by the fund. A higher AUM can indicate the fund’s popularity and reliability, as larger funds often have more resources for research and better management, making them more stable.

Why is the performance of mutual funds over the last 5 to 10 years important?

The long-term performance of a mutual fund shows how it has weathered different market conditions. Funds with strong returns over the last 5 to 10 years are likely to continue performing well in the future, making them a safer choice for long-term investors.

What is the difference between large-cap, mid-cap, and small-cap mutual funds?

Large-cap mutual funds invest in established, large companies with stable growth. Mid-cap funds invest in companies with moderate market capitalization and growth potential, while small-cap funds target emerging companies with high growth potential but higher risk.

What are the benefits and risks associated with investing in small-cap funds?

Small-cap funds can offer high growth potential and substantial returns, but they also carry higher risk due to the volatility of smaller companies. They are more susceptible to market fluctuations, making them suitable for investors willing to take on more risk.

How does equity mutual fund selection depend on market conditions?

Equity funds are influenced by the overall stock market trends. For example, in a bullish market, large-cap funds may perform well, while in a more volatile market, mid-cap or small-cap funds might offer better growth opportunities. Selecting funds based on the current market outlook can help optimize returns.

What is the significance of direct plan growth in mutual funds?

A direct plan allows investors to invest in a mutual fund without intermediaries, leading to lower fees. This means a larger portion of the investment returns goes directly to the investor, making direct plans an attractive option for cost-conscious investors.

How do past performance and future expectations correlate in mutual fund investment?

While past performance can give insights into a fund's management and reliability, future performance depends on market conditions and the fund's strategy. Past returns are not always indicative of future performance, so it's important to consider other factors like the fund’s investment strategy and market outlook.

Why is it important to consider the claims settlement ratio and solvency ratio in insurance?

The claims settlement ratio reflects how effectively an insurance company settles its claims. A higher ratio indicates reliability and customer trust. The solvency ratio measures the company’s ability to meet its long-term financial obligations, ensuring that it can handle large claims in the future.