Small Cap Mutual Funds - Best Small Cap Mutual Funds to invest in 2019

Small Cap Mutual Funds - Best Small Cap Mutual Funds to invest in 2019

When it comes to making investments, there are a lot of options for people to invest in. The primary aim of investing is to grow capital so that it reaches the investor’s goals. When it comes to investments that grow fast, equities top the list.

Investing in equities can get tedious for an investor since it requires a fair amount of study and research about the company and the sector that it operates in. To reduce the risk involved, one alternative is to invest in equities through mutual funds. Mutual funds are vehicles that pool resources from investors and invest the funds in a range of assets. These assets may be equity shares, fixed income instruments, corporate bonds, government securities, money market instruments etc.

The alternative for people looking to invest in equities is to pick an equity mutual fund. Depending on the type of equity shares that the mutual fund house invests in, they can be classified as:

• Large cap mutual funds
• Mid cap mutual funds
• Small Cap mutual funds

What is Small Cap mutual funds?

Small Cap Mutual funds are funds that invest primarily in Small Cap stocks. Small Cap stocks are those shares which are ranked beyond 250 in terms of market capitalization. These are generally small companies which are fast growing in their business. Their business may or may not be established just as yet, which means they are a risky proposition to invest in. This is because their value depends more on their performance and on external factors driving their business.

As such, even though Small Caps are risky, they are an excellent investment opportunity since they can grow in terms of value and market capitalization in the medium to long term. Whenever Small Cap stocks show growth, they tend to outperform large caps. However, when the markets fall, Small Caps are impacted first.

Small Cap stocks started becoming more popular off-late when inflated valuations compounded investors’ returns in just a few months. However, these stocks have taken a beating in the year 2018 and have broadly underperformed the market in the year 2019. But does that mean one should stay away from Small Cap stocks?

The best way to invest in Small Cap stocks is to pick out Small Cap mutual funds. Small Cap mutual funds reduce the risk since they invest in a range of Small Cap stocks. However, since Small Cap mutual funds are managed by a professional manager, these picks are based on research and company fundamentals as opposed to cherry picking.

When should you invest in Small Cap funds:

1. If you have a high risk appetite:
Small Cap mutual funds are highly risky. Their performance is very sensitive to market movements. These funds give tremendous growth when the market is in a bullish phase but during a bear phase, they show negative returns i.e. loss of invested capital. In case you can’t bear that high risk, invest in small amounts or invest in safer large cap funds that have lower returns but provide much better safety of invested capital.

2. If you have a long investment horizon:
Investing in Small Caps is not a strategy for the short term. Since Small Cap mutual funds are sensitive to market movements, any short term bear phase may pull their value down. This may not necessarily reflect their underlying value or the performance of the stocks that they hold, but it can lead to negative returns as most funds experienced in 2018. Small Cap mutual funds are long term investments. The top Small Cap mutual funds provide inflation beating returns over the longer term when short term fluctuations even out.

How to pick the best Small Cap mutual fund for investment:

Small Cap mutual funds 2019 have shown growth as compared to the fall in 2018. Funds that have invested in good quality stocks showing good business fundamentals are showing good returns. Top Small Cap mutual funds are showing returns and have turned attractive for investors once again.

1. Check their past performance:
While the past performance of a fund is no indicator of the future growth potential, it can speak volumes about the stocks that comprise the portfolio. If the mutual fund has not fared badly in a bearish market, it is testament to the quality of stocks in its portfolio. Compare the past performance against the growth of the broader Small Cap indices to make a decision.

2. Check their expense ratio:
The expense ratio is the ratio of total expenses incurred by the mutual fund against the total assets of the fund. A high expense ratio means a larger portion of the assets are being used to fund administrative and selling expenses. This does not translate into a higher return for the investors. The best Small Cap mutual funds do not have high expense ratio. The expense ratio limits as per SEBI depend on the assets under management (AUM):

• 2.25% - AUM of Rs. 500 to Rs. 750 crores
• 2% - AUM of Rs. 750 to Rs. 2,000 crores
• 1.75% - AUM of Rs. 2,000 to Rs. 5,000 crores
• 1.5% - AUM of Rs. 5,000 to Rs. 10,000 crores
• A 0.05% reduction for every Rs. 5,000 crore increase in AUM
• 1.05% - AUM above Rs. 50,000 crores

Checking the expense ratio against the ceiling is a good way of finding the right mutual funds.

3. Look into their sectoral allocation of funds:
Checking which sectors the mutual funds invest in can be helpful in deciding where to invest funds. If the mutual fund is investing funds in highly risky sectors that are going through turbulence, then that will not translate into good results for the fund and consequently, your investment.

4. Entry or exit loads:
Entry loads reduce the amount invested whereas exit loads reduce the net return on your investment. It is essential to pick a fund that has no exit load or one that has low exit load so as to get maximum returns on your investment.

Here is a list of top Small Cap mutual funds that research experts at IndiaNivesh Wealth Management recommend to have as a part of your portfolio.

Best Small Cap Funds 2019

Investing in Small Cap stocks can be a risky affair. A good broker house like IndiaNivesh can help you with good research reports that can help you invest in Small Cap mutual funds. So why wait, open a demat account with IndiaNivesh and enjoy the benefits that it has to offer.

Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.


Mid Cap Mutual Funds - Best Mid Cap Mutual Funds to invest in 2019

When it comes to return on investments, equities have proven one of the best avenues that beat inflation. The stock markets in India have provided double digit returns on investment in some years, compounding investors’ money. As far as equities are concerned, there are three types of stocks that an investor can pick: • Large cap stocks• Mid cap stocks• Small cap stocks Large cap stocks are the top 100 stocks based on market capitalization. Mid cap stocks are stocks ranked between 101 and 250 on the stock market based on their market capitalization. Small cap stocks are any stocks not ranked as above. Investing in large caps is generally considered to be a safe strategy since these are highly stable companies that provide good returns to their investors and conserve capital. On the other hand, small caps are volatile and explosive and can swing in any direction depending on market sentiments, global and national economic cues. The middle ground between these stocks are the mid caps. They are not as volatile as small cap stocks. However, they are not as stable as large caps. They provide stellar returns in case of a bull run, but perform worse than large caps in case of a downturn. But mid caps also provide an opportunity for higher capital appreciation over the long term. Choosing the right stocks can be problematic, since this process requires substantial research into the company’s fundamentals and knowledge about how the industry operates. If you’re looking at investing in mid caps for the near future, one option is to invest in mid cap mutual funds. What is mid-cap mutual fund? Mid cap mutual funds, as the name suggests, are those funds that invest a majority of their resources in mid cap stocks. To revisit mutual funds, a mutual fund is a vehicle that collects or pools resources from different investors and uses those to invest in different assets. These assets may be equities, fixed income debt products, gold etc. Mid cap mutual funds focus their attention on mid cap stocks. Mid cap mutual funds have seen tremendous gains in the last 3 to 5 years. If you go through a list of mid cap mutual funds and check the returns from 2014 to 2019, most funds will show an impressive figure since the mid cap index started booming from late 2016 and early 2017. Since mid cap stocks were largely undervalued before that, investors who put in funds before the boom are still making profits. However, in 2018, all gains on mid caps were erased when the stock market went through a bear phase. Since mid caps are volatile, many mid caps crashed and lost their valuation, pulling down the returns on mutual funds. In such a case, why should one invest in mid cap mutual funds? 1. Superior return:Over the long term, mid caps provide a superior return as compared to large caps. However, this investment is highly risky and generally beginner investors are advised to invest in such mutual funds after they gain a little bit of experience in investing and can stomach a few short term losses for long term gains. Mid cap mutual funds 2019 have slowly turned the corner and are starting to show small gains, which is encouraging. Mid cap funds that invest in quality undervalued shares can provide a good opportunity to grow capital. 2. Compounding:The principle of compounding is the most important thing to learn for an investor. Compounding is when income earned on an investment begins to generate income on its own. In case of mid cap mutual funds, if you opt for the growth option, the dividends are reinvested in the fund in the form of units purchased. This grows capital which earns dividend at a faster rate than the original investment. Using the power of compounding, capital can be grown faster. 3. Portfolio diversification:Investing a small portion of your total funds in mid cap mutual funds can diversify your risks and increase the total returns. This is for conservative investors who want to increase their returns. Who should invest in a mid-cap mutual fund? 1. Long term investors:Investors looking to build their capital over the long term should invest in a mid cap mutual fund. Investing for the short term can be disastrous since mid cap stocks are highly volatile and mirror the movements of the benchmark indices. These stocks can move in any direction which makes short term prediction of fund returns uncertain. If you are considering investment in any one of the top mid cap mutual funds, it is better to have a long term investment horizon of at least 3 to 5 years or longer. This will iron out all the fluctuations in value in the short term and will unlock value for your investments. Investing for the long term also provides the benefit of compounding since more dividends are reinvested as units. 2. Aggressive investors:Mid cap mutual funds are inherently risky since their core asset class of mid cap stocks is volatile. Since the market movements of these stocks can’t be guaranteed, returns on mid cap mutual funds can swing wildly from time to time. In fact, there may even be a loss of capital from a bear phase. That is the reason why these funds are recommended to investors who have a high tolerance for market fluctuations or aggressive investors. If you’re considering making a lump sum or an SIP investment in a mid cap mutual fund, you should make a list of the top performing schemes and analyse the following: • Past performance• Portfolio composition• Expense ratios The mid cap funds that perform the best in these three indicators can be taken up for investment. Here is a table of the best mid cap mutual funds according to the recommendation from the research team at IndiaNivesh Wealth Management: Now that you know all about mid cap stocks and top mid cap mutual funds, you may want to open a demat account with IndiaNivesh and start investing in them. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

read more


4 mistakes to avoid while investing in derivatives

To err is human. To learn from these mistakes and invest better later is a sign of a good investor. Investing in futures and options is a great way to hedge your bets and make money in the stock market. However, not all investors do it correctly right from the beginning. That’s why, here is a list of mistakes you can avoid when you invest in derivative investments.1) Not having a proper exit strategyWhen the clock strikes 5:30, you know it is time to leave the office and head home (or wherever your evening plans take you). This is a proper exit strategy. Unfortunately, many investors don’t know when to get out of derivative investments. a) You need to know when to exit when you are not doing wellb) You need to know when to exit when you are doing well For example, you may have made a long call option hoping that the price of the stock would increase significantly over the strike price before the option expires. But if that’s not happening within the period, exit the option and seek better trades or long term derivatives. At the same time, know when to exit on short term derivatives when you are making a profit. Don’t wait on a profitable trade because you are hoping for the price to increase before the option expires. Stay too long and the tide can reverse at the blink of an eye. 2) Having unrealistic expectationsYes, there are a lot of traders in the market who do nothing but invest in futures and options all day. But that doesn’t mean you should quit your day job too. The derivatives segment does offer incredible opportunities for success in the financial market. But in order to avoid mistakes investing in derivatives and reach that stage, you need to gain lots of knowledge and experience. Don’t have unrealistic expectations just when you start investing. This can often lead to frustration and irrational decisions in the market. Have patience and focus on your investment goals one trade at a time. 3) Doubling up to compensate for lossesMany traders double up when the price of an asset has moved in the opposite direction. Doubling up is a strategy where the investor doubles his position in the option. This is to earn a larger return when the stock price moves to a more favourable position. Guess what, this strategy is highly risky and rarely works. At such times, it is best to close your trade and minimize your losses. 4) Lack of self-disciplineIn a stock market, the price of a security either moves up or down. But when it comes to derivatives, you can have multiple futures and options contracts on a single security. And that’s why the derivatives segment can be quite risky. One of the tips to investing in derivatives is to have self-discipline to ensure good decision making and long-term success in the derivatives segment. Don’t act on unsolicited tips or rumours in the market. Always make an investment decision after you have conducted your own research. ConclusionThe only people who don’t make mistakes in investing are time travellers. But since the technology has not been invented yet, you can be assured that everyone fumbles. But the important thing is to minimize your losses at such times. Have a proper strategy and trade accordingly. By avoiding the above mistakes, it is possible to perform better in the derivatives segment. The stock market can be an exceptional investment approach that can offer bounteous yields and help you accomplish your financial goals, through smart investments. However, if you are hesitant in diving into the stock market, as a beginner, you may want to conduct due research and avoid the mistakes mentioned above. Alternately, you could also seek the help and assistance of a certified financial professional, to best understand the approach you need to take while investing in the stock market. Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

read more

Are you Investment ready?

*All fields are mandatory

related stories view all

  • Stock Charts – Importance of Stock Charts in Share Market

    Often when people begin their investment journey in the stock market, they are swamped with multiple questions in their mind. The very first basic question that comes to the mind is how to determine which stock to purchase and which to avoid. Well, the answer to this question is - stock charts. The stock charts help you in evaluating and gathering all the important information that you must consider before purchasing a stock. By learning stock pattern analysis you can not only become a successful investor but also a successful trader. In this article, you will be learning the different aspects of stock chart reading. Let us first understand what are stock charts? What are Stock Charts? Stock chart is a sequence of prices plotted on a graph over a different timeframe. The y-axis i.e. the vertical axis of the chart represents the price and the x-axis i.e. horizontal axis of the chart represents the time period. Learning and understanding stock chart reading may look like a tough task initially but with little practice, you can master the art. All you need is the correct understanding of the basics of chart reading. They can help you predict the future price movement correctly. Let us now understand the various aspects of stock charts. What are the aspects of Stock Charts? Price and Volume The charts are generally divided into two parts; the price of the stock and the volume of the stock. For correct stock chart analysis and reading of stock chart patterns, it is important to read both price and volume together. This is because if you look only at the movement of the price you would not know how genuine the buying or selling is. For example, a stock has fallen over 5%. Initially, it may look very bad but if the fall is with lower volumes than the average, you may continue to hold the stock because the selling is not done by large retailers who drive the market. The same is the case when the stock is rising but with lower volumes. This rise in the stock price could be fake because when the big players enter the stock there would be a huge rise in the volumes.  Moving Average Lines Moving average lines are very important to understand the performance of a stock. They represent the movement of the share price over a period of time. With the help of moving average lines, you can understand whether the stock is overbought or oversold by large retail participants. The mutual funds and big institutions follow the stock chart patterns and change their positions in stocks when the price rises or moves below the moving average point on the graph. The key moving average points can be a 50-day line, 15-week line, etc. When the stock falls below the benchmark moving average line, the big players often sell their holding and exit the stock. Similarly, when the price moves above the benchmark moving average line, the big players enter and the stock price can rise sharply. Relative Strength Line Relative strength line helps to identify if the stock is a market leader or laggard. This is done by comparing the performance of a stock with the index i.e. Nifty or Sensex. A sharp line rising upwards on the graph indicates that the stock is outperforming the market while a sharp line downwards is an indication that the stock is a laggard and underperforming the overall market. The stock comes in the leadership territory when the Relative Strength line is rising for a breakout and set for a new high in the market. After learning about the various aspects of stock charts, let us learn about some of the basic stock chart patterns. Stock Chart Patterns Daily Stock Chart A daily stock chart on a graph represents the movement of the stock price on a specific day of trading. The day traders use daily stock chart patterns to take intraday positions. The chart has multiple moving day averages like 50 days, 100 days, etc. which the traders monitor continuously to take positions. When the stock rises sharply it is represented by a sharp line rising upwards and when the stock falls, the graph shows a sharp fall in the line. Weekly Stock Chart Just like a daily stock chart represents the stock price movement on a single day, similarly, the weekly stock chart represents the price summary of stock for a single week. This chart is generally used to forecast the price of stocks for the long-term. The weekly charts can display longer-term data on the screen which makes it easy for the analysts and investors to determine the long term trend of a stock. The new investors often get confused between the weekly and daily charts. The confusion is mainly regarding which charts are suitable for them. This section of the article will try to resolve that dilemma. Daily Vs. Weekly Charts The daily charts are said to be good for the traders who are looking for volume and price action on an intraday basis. The stocks on daily charts are said to be giving a breakout when it breaches the 50-day line on either side. On the other hand, for long term investors, weekly charts are ideal. These charts forecast the long term price of a stock along with its trend. It also keeps the investor's emotions under control as they can take wrong decisions looking at the volatile daily chart movements. The Bottom Line There is no doubt about the importance of stock charts in the share market. You can decode the price movement on charts and take advantage of it by making profits. If you want to learn more about stock chart reading and indulge in trading or investing based on it, you can contact IndiaNivesh Ltd. We are one of the most trusted and value-enhancing financial group with new technologies in India.   Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing."

    read more
  • Share Market Investment – Can I Invest all my Money in Stocks

    Very often, you hear people making a fortune by making investments in the share markets and get lured to invest all our savings in it. Without a doubt, share market investments have helped investors grow their wealth and achieve financial goals. Investing in the stock market is essential for long-term wealth creation, as the returns generated by equities in the long-run have consistently outperformed the returns generated by any other asset classes, but investing all your money in share market is neither wise nor advisable. Shares are extremely volatile and carry a high degree of risk. If you are a beginner in the share market and the success stories of others have made you consider shares as an investment option, it is important to understand that there is no quick and easy way to make money in the share market overnight. Investing in the share market wisely requires you to have patience and also an understanding of how the stock market works. Why should you invest in the share market?1. Potentially higher returns which help beat inflation Equity investments have the potential to generate higher returns as compared to other investments in the long-run. One of the biggest challenges in the investment world today is finding investments where returns beat inflation.2. Dividend Income At the end of each financial year, a company declares dividends to be distributed to shareholders in proportion to their holdings, from the profits earned in that year. Thus, apart from long-term capital appreciation, investing in shares entitles you to the dividend income.3. Liquidity The shares are listed on the stock exchange and can be bought and sold through the exchange platform seamlessly. Share market tips for beginners If you are a beginner in the share market, here are few important stock market investment tips for you to help you guide with your investments1. Define your investment objectives Before considering investing in shares, or for that matter any instrument, it is important that you clearly define your investment objective along with the time frame for it. Investments in the stock market have the potential of higher growth in the long-term but are the extreme volatility in the short-run. If you are looking at investing your money for a fairly long time, you will benefit tremendously by investing in shares as compared to other less volatile assets. As stock markets are volatile in nature, investing for short-term investment needs is not advisable. 2. Assess your risk tolerance When it comes to investment decisions, assessing your tolerance to risk is extremely important as it is individual for each investor. Share markets are volatile and your ability to withstand the fluctuations in the market is crucial.  If your tolerance to risk is low, you are likely to get anxious about your investments; you are more likely to make emotional decisions about investments rather than logical decisions. However, once you start gaining more knowledge about stock market investments and also understand volatility, your perception will evolve considerably and allow you to take more analytical decisions. 3. Understand the basics of Share Market Before you start investing in the stock market, it is important for you to have basic understanding of the stock market and the individual securities in the stock market. Getting familiar with financial terms such as P/E ratio, EPS, CAGR, etc. stock selection strategies and stock order type will help in the research and selection process of stocks.4. Pick the right stocks Investing the shares is easy, but being successful with your investments requires effort. Whether you are seasoned investors or a beginner, stock selection plays an important role in determining the success of your investments. You should do proper research and analysis of the stocks that you are looking to invest in. Various aspects such as financial soundness, quality of management, competitor’s performance, the competitive advantage of the company will help you understand the strength of the company. You should invest in fundamentally strong companies for potentially higher returns.  5. Do not let emotions drive your decision The performance of stocks to some extent is driven by market sentiments. If the market sentiment is bearish, it tends to influence the stock price negatively even if the fundamentals of the company are strong. In such situations, long-term investors should not sell their investments just because the market sentiment is negative. Once you invest in the stock market you should not get influenced by short-term price changes of the securities on the account of speculation, rumours and in general the market sentiments.  6. Keep your expectations real All of us want to achieve the best possible returns from our investments. But at the same time, it is equally important to be realistic about the return potential. Even though some stocks have generated over 100% returns for investors in the past, it does not mean that every investment in stocks will fetch you similar returns. The idea of investing in the stock market is to have positive returns on your savings which can beat inflation in the long-run and help you achieve your financial goals with ease.  7. Diversify your portfolio Diversification is extremely important to optimise the returns on your investments. The basic tenet of financial planning is to have a diversified portfolio in different asset classes to achieve your investment objective by not relying on the performance of a single asset class. Even in the case of shares, you should diversify your portfolio in shares of different companies, sectors, and industries to avoid relying on the performance of one sector.  8. Invest only your surplusYour investments in the stock markets can fetch you high returns in the future. However, unlike fixed-income investments such as bonds and FDs, returns from the stock market are not guaranteed. The higher the chances of returns, the higher are the risk involved. Hence, you should only invest the surplus funds you have into the stock market without compromising on the other investments such as your life insurance, health insurance, emergency funds etc.   The final word Shares should be a part of your investments, as they offer huge growth potential, but they can’t be your only form of investment. You need to diversify your portfolio in various asset classes to get maximise your returns and minimise risk for your investments. Your investment objective, risk profile, time horizon all play an important role in ascertaining how much can you and should you invest shares. If you are wondering where to start, then just get in touch with our financial experts from IndiaNivesh to guide you with your investments.Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

    read more
  • Mutual Fund Performance - Five ways to measure Mutual Fund Performance

    Mutual fund investment plans have emerged as a preferred investment choice for a large number of investors in the last few years. Earlier, most of the households invested their savings in traditional investments like FDs, PPFs, and gold. However, the need for better returns from their savings and growing awareness of other investment options, have led investors to move away from traditional investments and explore other options such as mutual funds.What are mutual funds? In simple words, mutual funds are pooled investments from a large number of investors. They collect money from various individuals and entities that have a common investment objective and subsequently invest this pool of money in various stocks, bonds, and other securities. Thus, mutual fund investment plans allow you to distribute your invested money in a large number of securities than you could put in your portfolio. As a mutual fund investor, you hold units that represent a portion of your holdings in the scheme. Why is it advantageous to invest in mutual funds? Mutual fund investment no doubt is one of the smartest investments for almost any investor. Here are a few of its advantages:1. Simple A mutual fund is the simplest way to invest in capital markets for higher returns. If you are a novice but wish to invest in the capital markets, then mutual funds provide you with the simplest platform to invest in a healthy mix of stocks, bonds, and other securities.2. Easily accessible Mutual funds’ investments are easily accessible for all investors and as an investor, you can start investing in mutual funds for an amount as low as Rs. 500. 3. Diverse Mutual funds allow you to diversify your portfolio as you can gain access to different segments of the market through various mutual fund investment plans. Thus, you can invest in a variety of assets, sectors, securities, etc. 4. Professionally managed Mutual fund schemes are professionally managed by fund managers who have the expertise, time and resources and make sound investment decisions based upon the objective of the scheme.As the number of mutual fund schemes available in the markets has increased dramatically, evaluating the performance of mutual funds is of utmost importance to make wise investment choices. If you are wondering which is the best mutual fund to invest right now and how to evaluate the performance of mutual funds, then here is a simple guide for you. Top 5 measures to evaluate the performance of a mutual fund1. Compare performance with an appropriate benchmarkFor every mutual fund, there is a benchmark index to which you can compare the mutual fund performance. If your mutual fund investment is consistently generating higher than the benchmark, then it reflects the ability of the fund manager to manage the portfolio better. The important aspect here is to compare the mutual fund performance with an appropriate benchmark.Even when you are comparing it with different mutual fund schemes always look at the returns of other funds from the same category with a similar investment objective. Comparing the performance of a midcap fund with that of a large-cap fund would be like comparing apples to oranges. Hence, be careful and make relevant comparisons to see the performance of mutual funds. 2. Alpha Alpha of the fund helps measure the performance of the mutual fund on a risk-adjusted basis. Alpha takes into account the volatility of the mutual fund and compares the risk-adjusted performance of the fund to the benchmark. A positive alpha indicates that the fund manager has managed to outperform your mutual fund investments as compared to the benchmark. Similarly, a lower alpha indicates an underperformance of the fund as compared to the benchmark. Thus, the more positive the alpha of a fund, the better it is. 3. BetaApart from the risk associated with the security due to the nature of the asset class, every investment is exposed to a systematic risk which is due to the state of the economy or market in general and is unavoidable.The beta ratio captures this market risk of your investment. A higher beta indicates that the fund will be more volatile than the market. So, if a fund has a beta of 1.15 then it is 15% more volatile than the market. Note: Alpha & Beta both are risk ratios and are crucial means to find out the performance of mutual funds. The two ratios help you to determine the returns generated as compared to the risks undertaken. As an investor, you should look at funds that have a higher alpha and lower beta. 4. Portfolio diversification The advantage of investing through mutual funds is that they help you diversify your portfolio. A well-diversified portfolio helps you to mitigate the risks associated with investing in funds focussed on too few stocks or sectors or asset classes. So, to ensure that you achieve the desired results, you should review the holdings in your mutual fund. You can check the portfolio of your mutual fund by looking at the fund fact sheet. 5. Expense RatioOne of the biggest challenges for mutual funds is the high fees associated with it. Running any mutual fund involves costs that need to be borne by the investor. The expense ratio is the percentage of money spent to pay the salary of the fund manager, his team and other expenses. So, if the expense ratio of a mutual fund is high then it will reduce the overall returns generated by your mutual fund investments. So, while choosing a fund you should also see that the expense ratio is not very high. Here is a list of best mutual funds for 2019 across popular categories you may consider for investing now: The Bottom LineChoosing to invest in mutual fund investment plans is just the start of your journey as an investor. The important aspect of any investment decision is that it helps you achieve your goals within the desired time frame and considers your tolerance to risk. Mutual fund portfolios are tailor-made to meet your unique goals and are one of the best ways to achieve your investment objectives.So, if you want help with your mutual fund investment portfolio or you want to find the best mutual funds to invest now or simply want guidance, you can always seek assistance from a platform like IndiaNivesh. Their experts will help you build a portfolio that’s best suited for you.Disclaimer: Investment in securities market / Mutual Funds are subject to market risks, read all the related documents carefully before investing.

    read more