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Best Investment Plans in India 2025

Updated on October 1, 2025 , 22722 views

A Financial plan gives us an opportunity to save money for your future needs by Investing in financial instruments. There is no such thing as a good Investment plan or a bad investment plan. Each plan can be good or bad depending on how well you create your plan Basis your needs.

You might choose a long-term plan for high returns or a short-term plan for gaining minimal returns, which mainly depends upon your goals. Therefore, it is important to create an investment plan wisely keeping in mind your Financial goals. We have listed some of the steps to create the best investment plan.

How to Create an Investment Plan?

Investment-Plan

1. Risk Assessment

One needs to understand his or her risk profile here for investing. Risk profile would depend on various factors such as:

  • Age
  • cash flows (salary, recurring Income etc.)
  • Dependents
  • Ability to tolerate the loss
  • Requirement of cash/money in the near term
  • There are basic questionnaires that take an individual through this process and ultimately give a number or a rating which give the risk rating of an individual. The risk rating could be like:
Risk Ratings
Aggressive
Moderately Aggressive
Moderate
Moderately Conservative
Conservative

Once you have your Risk assessment or rating in place, the next step is to choose the Asset Allocation.

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2. Asset Allocation

Putting all your eggs in one basket is never a good idea, and hence one needs to diversify their holdings across asset classes (equity, debt, cash, commodities {Gold}). This asset allocation will ensure that various asset classes perform over time and give a good return on the overall Portfolio.

A sample asset allocation could be:

Aggressive Moderate Conservative
Annual return 16% 14% 11%
Annual Standard Deviation 15% 10% 6%
Debt 30% 50% 70%
Equity 60% 40% 20%
Commodity 10% 10% 10%
Total 100% 100% 100%

Given the risk that one can take, different allocations to equity are proposed. The higher the risk-taking ability more the allocation to equity. There are also various thumb rules like equity allocation to be 100 - (age of the person in years) and rest to be in debt.

Best Mutual Funds for Aggressive Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sub Cat.
DSP Equity Opportunities Fund Growth ₹615.617
↑ 3.18
₹15,356-1.46.8-2.620.822.723.9 Large & Mid Cap
Aditya Birla Sun Life Small Cap Fund Growth ₹84.5389
↑ 0.68
₹4,824-3.310.9-8.217.622.721.5 Small Cap
Kotak Standard Multicap Fund Growth ₹84.877
↑ 0.53
₹53,626-2.110.71.718.219.316.5 Multi Cap
Motilal Oswal Multicap 35 Fund Growth ₹60.9374
↑ 0.50
₹13,679-4.28.7-2.722.319.145.7 Multi Cap
Invesco India Growth Opportunities Fund Growth ₹100
↑ 0.02
₹8,125-1.414.64.325.123.237.5 Large & Mid Cap
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP Equity Opportunities FundAditya Birla Sun Life Small Cap FundKotak Standard Multicap FundMotilal Oswal Multicap 35 FundInvesco India Growth Opportunities Fund
Point 1Upper mid AUM (₹15,356 Cr).Bottom quartile AUM (₹4,824 Cr).Highest AUM (₹53,626 Cr).Lower mid AUM (₹13,679 Cr).Bottom quartile AUM (₹8,125 Cr).
Point 2Oldest track record among peers (25 yrs).Established history (18+ yrs).Established history (16+ yrs).Established history (11+ yrs).Established history (18+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 22.74% (upper mid).5Y return: 22.71% (lower mid).5Y return: 19.27% (bottom quartile).5Y return: 19.07% (bottom quartile).5Y return: 23.16% (top quartile).
Point 63Y return: 20.76% (lower mid).3Y return: 17.60% (bottom quartile).3Y return: 18.18% (bottom quartile).3Y return: 22.33% (upper mid).3Y return: 25.11% (top quartile).
Point 71Y return: -2.60% (lower mid).1Y return: -8.16% (bottom quartile).1Y return: 1.73% (upper mid).1Y return: -2.73% (bottom quartile).1Y return: 4.34% (top quartile).
Point 8Alpha: -3.26 (bottom quartile).Alpha: 0.00 (bottom quartile).Alpha: 3.91 (lower mid).Alpha: 9.76 (upper mid).Alpha: 11.03 (top quartile).
Point 9Sharpe: -0.78 (bottom quartile).Sharpe: -0.56 (bottom quartile).Sharpe: -0.37 (lower mid).Sharpe: -0.06 (upper mid).Sharpe: 0.03 (top quartile).
Point 10Information ratio: 0.46 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.19 (bottom quartile).Information ratio: 0.79 (upper mid).Information ratio: 1.26 (top quartile).

DSP Equity Opportunities Fund

  • Upper mid AUM (₹15,356 Cr).
  • Oldest track record among peers (25 yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 22.74% (upper mid).
  • 3Y return: 20.76% (lower mid).
  • 1Y return: -2.60% (lower mid).
  • Alpha: -3.26 (bottom quartile).
  • Sharpe: -0.78 (bottom quartile).
  • Information ratio: 0.46 (lower mid).

Aditya Birla Sun Life Small Cap Fund

  • Bottom quartile AUM (₹4,824 Cr).
  • Established history (18+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 22.71% (lower mid).
  • 3Y return: 17.60% (bottom quartile).
  • 1Y return: -8.16% (bottom quartile).
  • Alpha: 0.00 (bottom quartile).
  • Sharpe: -0.56 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).

Kotak Standard Multicap Fund

  • Highest AUM (₹53,626 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 19.27% (bottom quartile).
  • 3Y return: 18.18% (bottom quartile).
  • 1Y return: 1.73% (upper mid).
  • Alpha: 3.91 (lower mid).
  • Sharpe: -0.37 (lower mid).
  • Information ratio: 0.19 (bottom quartile).

Motilal Oswal Multicap 35 Fund

  • Lower mid AUM (₹13,679 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 19.07% (bottom quartile).
  • 3Y return: 22.33% (upper mid).
  • 1Y return: -2.73% (bottom quartile).
  • Alpha: 9.76 (upper mid).
  • Sharpe: -0.06 (upper mid).
  • Information ratio: 0.79 (upper mid).

Invesco India Growth Opportunities Fund

  • Bottom quartile AUM (₹8,125 Cr).
  • Established history (18+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 23.16% (top quartile).
  • 3Y return: 25.11% (top quartile).
  • 1Y return: 4.34% (top quartile).
  • Alpha: 11.03 (top quartile).
  • Sharpe: 0.03 (top quartile).
  • Information ratio: 1.26 (top quartile).

Best Mutual Funds for Moderately Aggressive Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
Aditya Birla Sun Life Medium Term Plan Growth ₹40.6855
↑ 0.04
₹2,8761.64.312.89.610.57.51%3Y 4M 17D4Y 6M 22D Medium term Bond
Nippon India Strategic Debt Fund Growth ₹16.0302
↑ 0.02
₹1103.45.4108.48.37.31%3Y 3M 22D4Y 5M 16D Medium term Bond
Axis Strategic Bond Fund Growth ₹28.5307
↑ 0.03
₹1,9021.33.88.58.28.77.82%3Y 3M 29D4Y 7M 2D Medium term Bond
ICICI Prudential Gilt Fund Growth ₹103.845
↑ 0.02
₹9,1450.52.57.47.98.27.21%6Y 2M 5D17Y 1M 28D Government Bond
SBI Magnum Gilt Fund Growth ₹66.339
↑ 0.08
₹11,3220.30.857.78.97.12%9Y 4M 13D19Y 10M 6D Government Bond
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryAditya Birla Sun Life Medium Term PlanNippon India Strategic Debt FundAxis Strategic Bond FundICICI Prudential Gilt FundSBI Magnum Gilt Fund
Point 1Lower mid AUM (₹2,876 Cr).Bottom quartile AUM (₹110 Cr).Bottom quartile AUM (₹1,902 Cr).Upper mid AUM (₹9,145 Cr).Highest AUM (₹11,322 Cr).
Point 2Established history (16+ yrs).Established history (11+ yrs).Established history (13+ yrs).Oldest track record among peers (26 yrs).Established history (24+ yrs).
Point 3Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.
Point 51Y return: 12.85% (top quartile).1Y return: 10.01% (upper mid).1Y return: 8.50% (lower mid).1Y return: 7.36% (bottom quartile).1Y return: 5.04% (bottom quartile).
Point 61M return: 1.12% (upper mid).1M return: 0.85% (bottom quartile).1M return: 0.92% (bottom quartile).1M return: 1.04% (lower mid).1M return: 1.41% (top quartile).
Point 7Sharpe: 2.36 (top quartile).Sharpe: 1.21 (lower mid).Sharpe: 1.24 (upper mid).Sharpe: 0.13 (bottom quartile).Sharpe: -0.41 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 7.51% (upper mid).Yield to maturity (debt): 7.31% (lower mid).Yield to maturity (debt): 7.82% (top quartile).Yield to maturity (debt): 7.21% (bottom quartile).Yield to maturity (debt): 7.12% (bottom quartile).
Point 10Modified duration: 3.38 yrs (lower mid).Modified duration: 3.31 yrs (top quartile).Modified duration: 3.33 yrs (upper mid).Modified duration: 6.18 yrs (bottom quartile).Modified duration: 9.37 yrs (bottom quartile).

Aditya Birla Sun Life Medium Term Plan

  • Lower mid AUM (₹2,876 Cr).
  • Established history (16+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 12.85% (top quartile).
  • 1M return: 1.12% (upper mid).
  • Sharpe: 2.36 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 7.51% (upper mid).
  • Modified duration: 3.38 yrs (lower mid).

Nippon India Strategic Debt Fund

  • Bottom quartile AUM (₹110 Cr).
  • Established history (11+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 10.01% (upper mid).
  • 1M return: 0.85% (bottom quartile).
  • Sharpe: 1.21 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.31% (lower mid).
  • Modified duration: 3.31 yrs (top quartile).

Axis Strategic Bond Fund

  • Bottom quartile AUM (₹1,902 Cr).
  • Established history (13+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderate.
  • 1Y return: 8.50% (lower mid).
  • 1M return: 0.92% (bottom quartile).
  • Sharpe: 1.24 (upper mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.82% (top quartile).
  • Modified duration: 3.33 yrs (upper mid).

ICICI Prudential Gilt Fund

  • Upper mid AUM (₹9,145 Cr).
  • Oldest track record among peers (26 yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 7.36% (bottom quartile).
  • 1M return: 1.04% (lower mid).
  • Sharpe: 0.13 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.21% (bottom quartile).
  • Modified duration: 6.18 yrs (bottom quartile).

SBI Magnum Gilt Fund

  • Highest AUM (₹11,322 Cr).
  • Established history (24+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 5.04% (bottom quartile).
  • 1M return: 1.41% (top quartile).
  • Sharpe: -0.41 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.12% (bottom quartile).
  • Modified duration: 9.37 yrs (bottom quartile).

Best Mutual Funds for Moderately Conservative Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
UTI Banking & PSU Debt Fund Growth ₹22.3386
↑ 0.02
₹8131.33.98.17.67.66.61%1Y 8M 12D1Y 11M 8D Banking & PSU Debt
HDFC Corporate Bond Fund Growth ₹33.0498
↑ 0.04
₹35,70013.27.77.98.67.06%4Y 2M 1D4Y 4M 28D Corporate Bond
Aditya Birla Sun Life Corporate Bond Fund Growth ₹114.603
↑ 0.14
₹28,10913.17.77.98.57.21%4Y 8M 8D7Y 3M Corporate Bond
HDFC Banking and PSU Debt Fund Growth ₹23.3619
↑ 0.03
₹5,8900.93.37.77.47.96.94%3Y 5M 5D4Y 11M 19D Banking & PSU Debt
PGIM India Short Maturity Fund Growth ₹39.3202
↓ 0.00
₹281.23.16.14.2 7.18%1Y 7M 28D1Y 11M 1D Short term Bond
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryUTI Banking & PSU Debt FundHDFC Corporate Bond FundAditya Birla Sun Life Corporate Bond FundHDFC Banking and PSU Debt Fund PGIM India Short Maturity Fund
Point 1Bottom quartile AUM (₹813 Cr).Highest AUM (₹35,700 Cr).Upper mid AUM (₹28,109 Cr).Lower mid AUM (₹5,890 Cr).Bottom quartile AUM (₹28 Cr).
Point 2Established history (11+ yrs).Established history (15+ yrs).Oldest track record among peers (28 yrs).Established history (11+ yrs).Established history (22+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: Moderate.Risk profile: Moderately Low.Risk profile: Moderately Low.Risk profile: Moderately Low.Risk profile: Moderate.
Point 51Y return: 8.08% (top quartile).1Y return: 7.74% (upper mid).1Y return: 7.72% (lower mid).1Y return: 7.69% (bottom quartile).1Y return: 6.08% (bottom quartile).
Point 61M return: 0.72% (bottom quartile).1M return: 0.85% (upper mid).1M return: 0.89% (top quartile).1M return: 0.77% (lower mid).1M return: 0.43% (bottom quartile).
Point 7Sharpe: 1.46 (top quartile).Sharpe: 0.68 (lower mid).Sharpe: 0.66 (bottom quartile).Sharpe: 0.73 (upper mid).Sharpe: -0.98 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.61% (bottom quartile).Yield to maturity (debt): 7.06% (lower mid).Yield to maturity (debt): 7.21% (top quartile).Yield to maturity (debt): 6.94% (bottom quartile).Yield to maturity (debt): 7.18% (upper mid).
Point 10Modified duration: 1.70 yrs (upper mid).Modified duration: 4.17 yrs (bottom quartile).Modified duration: 4.69 yrs (bottom quartile).Modified duration: 3.43 yrs (lower mid).Modified duration: 1.66 yrs (top quartile).

UTI Banking & PSU Debt Fund

  • Bottom quartile AUM (₹813 Cr).
  • Established history (11+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 8.08% (top quartile).
  • 1M return: 0.72% (bottom quartile).
  • Sharpe: 1.46 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.61% (bottom quartile).
  • Modified duration: 1.70 yrs (upper mid).

HDFC Corporate Bond Fund

  • Highest AUM (₹35,700 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.74% (upper mid).
  • 1M return: 0.85% (upper mid).
  • Sharpe: 0.68 (lower mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.06% (lower mid).
  • Modified duration: 4.17 yrs (bottom quartile).

Aditya Birla Sun Life Corporate Bond Fund

  • Upper mid AUM (₹28,109 Cr).
  • Oldest track record among peers (28 yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 7.72% (lower mid).
  • 1M return: 0.89% (top quartile).
  • Sharpe: 0.66 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.21% (top quartile).
  • Modified duration: 4.69 yrs (bottom quartile).

HDFC Banking and PSU Debt Fund

  • Lower mid AUM (₹5,890 Cr).
  • Established history (11+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 7.69% (bottom quartile).
  • 1M return: 0.77% (lower mid).
  • Sharpe: 0.73 (upper mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.94% (bottom quartile).
  • Modified duration: 3.43 yrs (lower mid).

PGIM India Short Maturity Fund

  • Bottom quartile AUM (₹28 Cr).
  • Established history (22+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 6.08% (bottom quartile).
  • 1M return: 0.43% (bottom quartile).
  • Sharpe: -0.98 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.18% (upper mid).
  • Modified duration: 1.66 yrs (top quartile).

Best Mutual Funds for Conservative Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
Aditya Birla Sun Life Savings Fund Growth ₹558.157
↑ 0.26
₹21,5211.53.67.87.57.96.76%5M 8D6M 11D Ultrashort Bond
Indiabulls Liquid Fund Growth ₹2,562.78
↑ 0.56
₹3031.436.86.97.45.88%1M 3D1M 3D Liquid Fund
PGIM India Insta Cash Fund Growth ₹345.02
↑ 0.07
₹5271.436.877.35.83%20D22D Liquid Fund
JM Liquid Fund Growth ₹72.2922
↑ 0.01
₹2,6951.436.76.97.25.83%1M 7D1M 9D Liquid Fund
UTI Ultra Short Term Fund Growth ₹4,306.07
↑ 2.25
₹4,1811.43.276.97.26.4%4M 28D5M 19D Ultrashort Bond
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 3 Oct 25

Research Highlights & Commentary of 5 Funds showcased

CommentaryAditya Birla Sun Life Savings FundIndiabulls Liquid Fund PGIM India Insta Cash FundJM Liquid FundUTI Ultra Short Term Fund
Point 1Highest AUM (₹21,521 Cr).Bottom quartile AUM (₹303 Cr).Bottom quartile AUM (₹527 Cr).Lower mid AUM (₹2,695 Cr).Upper mid AUM (₹4,181 Cr).
Point 2Established history (22+ yrs).Established history (13+ yrs).Established history (18+ yrs).Oldest track record among peers (27 yrs).Established history (22+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderately Low.Risk profile: Low.Risk profile: Low.Risk profile: Low.Risk profile: Moderately Low.
Point 51Y return: 7.84% (top quartile).1Y return: 6.83% (lower mid).1Y return: 6.82% (bottom quartile).1Y return: 6.70% (bottom quartile).1Y return: 6.98% (upper mid).
Point 61M return: 0.56% (top quartile).1M return: 0.47% (bottom quartile).1M return: 0.49% (lower mid).1M return: 0.47% (bottom quartile).1M return: 0.51% (upper mid).
Point 7Sharpe: 3.66 (top quartile).Sharpe: 3.54 (lower mid).Sharpe: 3.57 (upper mid).Sharpe: 2.95 (bottom quartile).Sharpe: 1.96 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: -1.18 (bottom quartile).Information ratio: -0.64 (lower mid).Information ratio: -2.17 (bottom quartile).Information ratio: 0.00 (upper mid).
Point 9Yield to maturity (debt): 6.76% (top quartile).Yield to maturity (debt): 5.88% (lower mid).Yield to maturity (debt): 5.83% (bottom quartile).Yield to maturity (debt): 5.83% (bottom quartile).Yield to maturity (debt): 6.40% (upper mid).
Point 10Modified duration: 0.44 yrs (bottom quartile).Modified duration: 0.09 yrs (upper mid).Modified duration: 0.06 yrs (top quartile).Modified duration: 0.10 yrs (lower mid).Modified duration: 0.41 yrs (bottom quartile).

Aditya Birla Sun Life Savings Fund

  • Highest AUM (₹21,521 Cr).
  • Established history (22+ yrs).
  • Top rated.
  • Risk profile: Moderately Low.
  • 1Y return: 7.84% (top quartile).
  • 1M return: 0.56% (top quartile).
  • Sharpe: 3.66 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 6.76% (top quartile).
  • Modified duration: 0.44 yrs (bottom quartile).

Indiabulls Liquid Fund

  • Bottom quartile AUM (₹303 Cr).
  • Established history (13+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.83% (lower mid).
  • 1M return: 0.47% (bottom quartile).
  • Sharpe: 3.54 (lower mid).
  • Information ratio: -1.18 (bottom quartile).
  • Yield to maturity (debt): 5.88% (lower mid).
  • Modified duration: 0.09 yrs (upper mid).

PGIM India Insta Cash Fund

  • Bottom quartile AUM (₹527 Cr).
  • Established history (18+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Low.
  • 1Y return: 6.82% (bottom quartile).
  • 1M return: 0.49% (lower mid).
  • Sharpe: 3.57 (upper mid).
  • Information ratio: -0.64 (lower mid).
  • Yield to maturity (debt): 5.83% (bottom quartile).
  • Modified duration: 0.06 yrs (top quartile).

JM Liquid Fund

  • Lower mid AUM (₹2,695 Cr).
  • Oldest track record among peers (27 yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.70% (bottom quartile).
  • 1M return: 0.47% (bottom quartile).
  • Sharpe: 2.95 (bottom quartile).
  • Information ratio: -2.17 (bottom quartile).
  • Yield to maturity (debt): 5.83% (bottom quartile).
  • Modified duration: 0.10 yrs (lower mid).

UTI Ultra Short Term Fund

  • Upper mid AUM (₹4,181 Cr).
  • Established history (22+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 6.98% (upper mid).
  • 1M return: 0.51% (upper mid).
  • Sharpe: 1.96 (bottom quartile).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 6.40% (upper mid).
  • Modified duration: 0.41 yrs (bottom quartile).

The above can be used as a guidance given the type of investor one is. The proposed asset allocation also gives a projection as to the expected annual return per annum and the expected variation in returns (annual standard deviation).

3. Product Selection

Let’s, for example, take the individual here is aggressive and hence the equity allocation to be 60%. So proposed investment allocations would be (for an investment of 10 lakhs):

Equity (60%) = 6 lakhs

Debt (30%) = 3 lakhs

Gold (10%) = 1 lakh

One should try and do some research to get a good scheme. Various rating agencies like CRISIL, Value research, Morningstar etc. provide funds ratings. Using these ratings and getting some top performing funds would ensure that we try and select good performing funds into the portfolio.

In the example,

  • For equity one can choose a mix of large-cap and mid-cap
  • Debt can be spread into a mix of long term and short term
  • For gold, one can use gold ETF based Mutual Funds

4. Monitoring & Re-Balancing of Mutual Funds

Monitoring your investment is a critical step and one should review the portfolio at least once a quarter and rebalance at least once a year. Also, looking at scheme performance is also important and if there are performance issues one should replace the scheme with a better performing one (also taking into account the tax considerations).

How to Invest in Mutual Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

These are the basic steps to create an investment plan for any sum of money. Hope this gives some direction to create an investment plan for a secured future. Happy investing!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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