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Best Investment Plans in India 2024 - Fincash

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Best Investment Plans in India 2024

Updated on November 27, 2024 , 21402 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 (%)2023 (%)Sub Cat.
DSP BlackRock Equity Opportunities Fund Growth ₹607.978
↑ 4.57
₹13,804-3.610.335.620.821.132.5 Large & Mid Cap
L&T Emerging Businesses Fund Growth ₹88.2847
↑ 0.78
₹17,306114.433.827.631.146.1 Small Cap
Aditya Birla Sun Life Small Cap Fund Growth ₹88.8573
↑ 0.30
₹5,181-0.112.928.118.923.839.4 Small Cap
Kotak Standard Multicap Fund Growth ₹80.855
↑ 0.56
₹50,582-2.25.228.916.816.824.2 Multi Cap
Motilal Oswal Multicap 35 Fund Growth ₹62.2163
↑ 0.92
₹12,0245.321.950.722.718.431 Multi Cap
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24

Best Mutual Funds for Moderately Aggressive Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
Aditya Birla Sun Life Medium Term Plan Growth ₹36.9933
↑ 0.08
₹1,9683.76.710.813.76.97.73%3Y 10M 6D5Y 1M 10D Medium term Bond
Aditya Birla Sun Life Government Securities Fund Growth ₹78.0464
↑ 0.22
₹2,3041.54.3105.87.16.92%9Y 11D18Y 10M 2D Government Bond
Nippon India Gilt Securities Fund Growth ₹36.5431
↑ 0.10
₹2,0941.64.39.65.66.77.04%9Y 3M 14D20Y 3M 11D Government Bond
UTI Gilt Fund Growth ₹60.1113
↑ 0.20
₹6631.64.29.55.96.76.87%7Y 6M 22D14Y 11M 12D Government Bond
SBI Magnum Gilt Fund Growth ₹63.2284
↑ 0.21
₹10,9371.64.49.56.87.66.99%9Y 3M 22D22Y 6M 14D Government Bond
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24

Best Mutual Funds for Moderately Conservative Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
Aditya Birla Sun Life Corporate Bond Fund Growth ₹107.469
↑ 0.15
₹23,3372.14.58.86.57.37.49%3Y 9M 18D5Y 7M 13D Corporate Bond
HDFC Corporate Bond Fund Growth ₹30.9827
↑ 0.03
₹32,0722.14.48.76.27.27.4%4Y 7D6Y 2M 5D Corporate Bond
HDFC Banking and PSU Debt Fund Growth ₹21.8951
↑ 0.02
₹5,8091.8485.96.87.37%3Y 7M 24D5Y 1M 17D Banking & PSU Debt
UTI Banking & PSU Debt Fund Growth ₹20.8685
↑ 0.02
₹8201.83.97.98.16.77.28%2Y 5M 23D2Y 11M 12D 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 29 Nov 24

Best Mutual Funds for Conservative Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
Aditya Birla Sun Life Savings Fund Growth ₹523.751
↑ 0.12
₹15,0981.93.87.76.57.27.78%5M 19D7M 24D Ultrashort Bond
Indiabulls Liquid Fund Growth ₹2,424.53
↑ 0.46
₹5161.83.67.46.16.87.12%1M 29D1M 16D Liquid Fund
Principal Cash Management Fund Growth ₹2,212.93
↑ 0.44
₹6,7831.73.57.36.377.06%1M 10D1M 10D Liquid Fund
PGIM India Insta Cash Fund Growth ₹326.414
↑ 0.06
₹5551.83.57.36.377.06%1M 3D1M 6D Liquid Fund
JM Liquid Fund Growth ₹68.471
↑ 0.01
₹3,2401.73.57.36.277.05%1M 13D1M 16D Liquid Fund
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Nov 24

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!

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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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