Salaried people often face the challenge of matching their daily costs with the need to build a strong investment account. Mutual funds provide a handy and flexible option, allowing investors to give small amounts regularly and benefit from the growing effect of returns over time. By investing in a well-diversified group of securities, mutual funds minimize the risks connected with individual stock purchases, making them attractive for paid people wanting long-term wealth building.
Overview of Top 10 Mutual Funds for Salaried Individuals
Axis Bluechip Fund
This large-cap equity fund aims to provide long-term capital growth by investing in diverse bluechip companies with a strong track record and lasting competitive benefits. The fund is perfect for paid people wanting exposure to known and stable companies.
Mirae Asset Large Cap Fund
Focused on investing in large-cap companies with solid foundations and growth prospects, this fund gives paid people a chance to share in the growth of India’s top corporations. Its strict investment method and skilled fund management team make it a desirable choice.
ICICI Prudential Balanced Advantage Fund
This dynamic asset allocation fund tries to strike a mix between stock and loan investments, giving paid people the potential for capital growth while controlling risk. Its ability to change asset allocation based on market conditions makes it suitable for those seeking modest risk and reliable results.
Parag Parikh Flexi Cap Fund
This fund takes a value investing method, buying across market capitalizations and industries. With a focus on finding cheap companies with solid foundations, this fund offers paid people the chance to benefit from long-term wealth building.
SBI Small Cap Fund
For paid people with a higher risk appetite and a long-term financial plan, this small-cap fund offers exposure to growing companies with prospects for substantial growth. Its diverse portfolio and skilled fund management team hope to capitalize on the growth possibilities in the small-cap section.
Kotak Emerging Equity Fund
This fund works on dealing in mid-cap and small-cap companies with strong growth potential. Salaried people looking to share in the possible upside of new businesses can consider this fund as part of their financial strategy.
UTI Nifty Index Fund
As an index fund, this choice tracks the success of the Nifty 50 index, giving paid people a low-cost and passive investment strategy. It is ideal for those wanting broad market exposure and long-term wealth building through diversity.
HDFC Hybrid Equity Fund
This hybrid fund mixes equity and debt investments, giving salespeople the potential for capital growth while providing a cushion against market instability. Its dynamic asset selection approach aims to create stable results across market cycles.
Invesco India Counter Fund
This counter fund uses a contrarian investment method, buying in stocks that are cheap or out of favor but have firm foundations. Salaried people with a modest to high-risk mindset can consider this fund for wealth-building possibilities.
Quant Active Fund
This actively managed fund uses mathematical models and algorithms to find financial possibilities across market capitalizations. With its focus on data-driven decision-making, this fund offers paid people a unique investment method driven by cutting-edge technology.
Performance of top Mutual Funds for Salaried Individuals
| Fund Name | 1-Year Returns | 3-Year Returns | 5-Year Returns | Expense Ratio |
| Axis Bluechip Fund | 12.5% | 18.2% | 14.3% | 1.78% |
| Mirae Asset Large Cap Fund | 11.8% | 17.6% | 13.9% | 1.62% |
| ICICI Prudential Balanced Advantage Fund | 10.3% | 15.7% | 12.5% | 1.91% |
| Parag Parikh Flexi Cap Fund | 13.2% | 19.5% | 15.8% | 1.28% |
| SBI Small Cap Fund | 16.7% | 22.3% | 18.4% | 2.15% |
| Kotak Emerging Equity Fund | 15.4% | 21.1% | 17.2% | 1.95% |
| UTI Nifty Index Fund | 11.2% | 16.8% | 13.2% | 0.65% |
| HDFC Hybrid Equity Fund | 9.8% | 14.6% | 11.7% | 1.85% |
| Invesco India Contra Fund | 14.7% | 20.8% | 16.9% | 2.05% |
| Quant Active Fund | 12.9% | 18.7% | 14.9% | 1.75% |
Factors to Consider While Investing in Mutual Funds for Salaried Individuals in 2024
● Investment Horizon: Salaried people should properly consider their investment plan and match their mutual fund choices. Funds with a higher stock exposure may be more suitable for those with a more extended investment plan, while debt or mixed funds may be more appropriate for shorter time frames.
● Risk Tolerance: Understanding one’s risk appetite is essential when choosing mutual funds. Equity funds tend to be more unpredictable but offer higher growth potential, while debt funds are usually more steady but with lower yields.
● Diversification: Keeping a well-diversified portfolio by investing in a mix of stock, debt, and hybrid funds across different industries and market capitalizations is essential. Diversification helps reduce risk and improves total financial stability.
● Investment Objective: Salaried people should clearly describe their investment goals, whether it’s wealth building, retirement planning, or meeting specific financial milestones. Different mutual fund types match different investment goals, making it crucial to choose funds appropriately.
● Expense Ratio: The expense ratio, which reflects the yearly fees paid by the fund, can significantly impact long-term profits. Salaried people should compare price rates across funds and opt for cost-effective choices to maximize their investment results.
How to Invest in Mutual Funds as a Salaried Individual?
Step 1: Assess your cash goals, risk tolerance, and investing timeline.
Step 2: Research and assess different mutual fund choices based on their financial theory, success, and cost rates.
Step 3: Open a demat and trade accounts with a reliable exchange or mutual fund site.
Step 4: Decide the investment amount and consider setting up a Systematic Investment Plan (SIP) for regular payments.
Step 5: Select and put in the chosen mutual funds through lump-sum purchases or SIPs.
Step 6: Monitor the success of your investments periodically and adjust your portfolio as needed.
Conclusion
For paid people in India, investment in mutual funds can be a powerful tool for building long-term wealth and achieving financial protection. By carefully examining the top mutual funds for 2024 and considering factors such as investment timeline, risk tolerance, and diversification, paid people can build a well-balanced strategy tailored to their unique needs. With the direction of financial experts and a focused approach, paid people can unlock the potential of mutual fund investments and pave the way for a safe economic future.
Disclaimer:
Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
