Best Mutual Funds to invest in 2013 by conservative investors

Best Mutual Funds to invest in 2013 by SIP for conservative investorsBest Mutual Funds to invest in 2013 by conservative investors

There are good mutual funds under large cap and diversified segment where investors get moderate returns by taking some risk. On the other side there are good sector based mutual funds under Pharma and FMCG sector where investors get excellent returns. However they are high risk investments. Conservative investors always depend on bank fixed deposits or debt mutual funds as they do not want to take risk. Conservative investors can combine balanced mutual funds and debt mutual funds and increase their returns. Today we would discuss about best mutual funds to invest in 2013 through SIP by conservative investors.

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Balanced mutual funds

Balanced mutual funds are those which invest 65% to 80% in debt related instruments and balance in equity related instruments. Balanced mutual funds offer good returns by participating part of the amounts in equity investment.

Debt mutual funds

Debt mutual funds invests in debt related instruments like fixed income securities, government securities, bonds, debentures etc.,

Does this combination would benefit conservative investors?

Conservative investors always look for good returns but do not want to take any risk. If they invest in combination of balanced mutual funds and debt mutual funds, the equity participation would be very less and the risk would be very low.

Best Mutual Funds to invest in 2013 through SIP by conservative investors

We have analyzed top mutual funds for SIP to invest by conservative investors.

1) ICICI Pru balanced fund

  • Overview: This is one of the best mutual funds for SIP in balanced sector based mutual funds. Balanced funds invest 65% to 80% in equity securities and balance in debt and money market instruments. Crisil ranked this mutual fund as Rank-1 in balanced mutual funds category.
  • 5 year annualized returns: 7.5% annualized returns in the last 5 years compared to large cap mutual fund category average of 5% annualized return.
  • This is best suitable for conservative investors. Any investor who is looking for long term capital appreciation with moderate returns can invest it in SIP route.

2) HDFC Balanced fund

  • Overview: This is one of the best mutual funds for SIP in balanced sector based mutual funds. Balanced funds invest 65% to 80% in equity securities and balance in debt and money market instruments. Crisil ranked this mutual fund as Rank-2 in balanced mutual funds category.
  • 5 year annualized returns: 11% annualized returns in the last 5 years compared to category average of 5% annualized return.
  • Balanced funds invest 20% to 35% in debt and money market instruments. Due to this strategy, even in case of any downside of investments in equity related instruments, it would get balanced and provide little downside on the capital investment. These balanced mutual funds have becoming prominent now due to its investment strategy and it would be best suitable for investors who are looking for higher returns compared to bank fixed deposits and looking for safety of the investment. It is a moderate-risk, moderate-return investment option.

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3) HDFC Prudence fund

  • Overview: Good performing mutual fund in balanced mutual fund sector. Crisil ranked this scheme as Rank-2 in balanced mutual funds category.
  • 5 year annualized returns: 11% annualized returns in the last 5 years compared to category average of 5% annualized return.
  • Investors who are looking for moderate-risk, moderate returns can invest in this through SIP.

4) Kotak Bond – Plan A

  • Overview: This is one of the best mutual funds for SIP in debt mutual funds. Debt funds invest in long term debt papers, government securities etc., Crisil ranked this mutual fund as Rank-2 in Debt long term mutual funds category.
  • 5 year annualized returns: 10% annualized returns in the last 5 years compared to category average of 4% annualized return.
  • Suitable for: Debt mutual funds invest in safe investment options. Due to this strategy, there would be almost no downside on the capital invested. These debt mutual funds have become prominent as they provide higher returns compared to bank fixed deposits. It is a low-risk, low-return investment option.

5) UTI Bond fund

  • Overview: This is another best mutual fund for SIP in debt mutual fund category. Crisil ranked this mutual fund as Rank-2 in Debt long term mutual funds category.
  • 5 year annualized returns: 9% annualized returns in the last 5 years compared to category average of 4% annualized return.
  • Debt mutual funds invest in safe investment options. Good for conservative investors where they do not want to take any risk. It is a low-risk, low-return investment option.

Invest now in these mutual funds by SIP through Fundsindia.com

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Suresh
Best Mutual Funds to invest in 2013 through SIP for conservative investors

 

15 comments

  • victory

    for moderate investor he wants to invest one lakh rupees can you please tell me which is the top 3 investment options ???

    • Victory, while there are several options, you can invest in balanced mutual funds like ICICI Pru balanced fund or HDFC Prudence fund and large cap funds like ICICI Pru blue chip focussed fund or FT India blue chip fund.

  • Amit

    Hi Suresh,

    I am new into investment but would like like to invest in Mutual Funds.

    Can you please help me in how to invest in mutual funds?

    • Amit, you would open a MF account with any broker like ICICI Direct, Fundsindia.com, fundsupertmart.com etc. Once you open you can invest in MF’s online

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