Best Mutual Funds to Invest 1 Lakh Rupees Post RD Maturity: A Comprehensive Guide
Welcome to a comprehensive guide on the best mutual funds for investing 1 lakh rupees after breaking an RD (Recurring Deposit). If you're looking for the right investment strategy to secure your finances, you're in the right place. This article aims to provide you with the best options, detailed advice, and practical recommendations to help you make an informed decision.
Understanding the Investment Age Rule
The investment age rule is a crucial guideline to follow when determining the appropriate allocation of your funds. For instance, if your age is 40, 40% of your 1 lakh rupees can be directed towards debt funds. Debt funds are known for their lower risk and serve as a more stable alternative to fixed deposits (FDs).
Debt Funds
Some top-performing debt funds include:
Birla Sun Life Value Fund: A solid choice given its consistent performance and low risk profile. HDFC Short Term Debt Fund: Known for its diversified portfolio and stable returns. ICICI Short Term Plan: Offers competitive returns and good liquidity.Balanced Funds
Balanced funds are a suitable choice for those who prefer a blend of income and growth. They offer diversified investments in both debt and equity segments. Here are some options:
Tata Balanced Fund: Known for its balanced asset allocation, offering a mix of income and growth. HDFC Balanced Fund: A diversified fund that provides exposure to both equity and debt. ICICI Balanced Fund: Offers a combination of equity and debt, ideal for a balanced portfolio.Large Cap Funds
Large cap funds focus on investing in large and established companies, making them less risky compared to mid-cap and small-cap funds. Here are some recommended options:
SBI Bluechip Fund: Known for its consistent performance and diversified portfolio. Kotak Select Focus Fund: Offers a mix of large and mid-cap exposure. Franklin Templeton India Opportunities Fund: A unique fund that invests in Indian companies globally, providing a wide exposure.Mid Cap and Small Cap Funds
Mid cap and small cap funds are more volatile but can offer higher returns due to their exposure to smaller and emerging companies. Here are some top choices:
Mirae Asset Emerging Bluechip Fund: Focused on emerging mid-cap companies with potential. Franklin India Smaller Companies Fund: Invests in smaller and mid-cap companies with growth potential. Reliance Small Cap Fund: Offers exposure to smaller companies with higher growth aspirations.Short-Term Investment Options
If you need to invest for a short term, consider investing in liquid funds. These funds offer good liquidity and low risk. For a horizon of 3 years, a short-term debt fund or a duration fund could be a better option.
Liquid Funds
Liquid funds are designed for investors who need quick access to their money. They provide higher liquidity and lower risk compared to other types of mutual funds. Some popular choices include:
Axis Liquid Fund: Offers high liquidity and low risk. ICICI Prudential Liquid Fund: Known for its consistent performance and low risk. Bajaj Allianz Liquid Fund: Provides a safe harbor for investors seeking quick access to their money.Expert Recommendation: Birla Sun Life Top 100 Fund
For a well-rounded investment portfolio, consider the Birla Sun Life Top 100 Fund. This fund has impressive chart performance and solid fact sheets. Personally, I have invested in this scheme myself, and it has proven to be a reliable choice.
When choosing a mutual fund, it's important to consider your financial goals, risk tolerance, and investment horizon. By following the guidelines provided in this article, you can make an informed decision and secure your financial future. Happy investing!