6 Best Mutual funds which investment money in short term
Every week I keep getting messages asking whether there are any mutual funds which can double money in short term of 3 to 4 years. There is only one category of mutual funds where investors have gained superb money i.e. Sector based mutual funds. There are few mutual funds across various sectors like Technology, FMCG, Pharma and transport sector which outperformed and investors gained solid returns in the last 3 years. Many of the mutual funds have doubled the investment in 3 to 4 years period.
Best Mutual funds across various sectors
While there are several sectors, we felt Pharma, Healthcare, FMCG have been doing well in the last 5-7 years.
Also read: 10 Ways to double your money
1) Reliance Pharma Fund
This mutual fund invests across Pharma and health care stocks. Due to growing requirement of Pharma and healthcare area, this sector is expected to continue to grow. Hence investing in such mutual fund would provide excellent returns. Annualized returns in the last 5 years are as below:
- 1 Year – 25%
- 3 Years – 11%
- 5 Years – 20%
2) UTI Pharma and Health Pharma Fund
This mutual fund too invests across Pharma and health care stocks. Bench mark for this mutual fund is S&P Healthcare Index. Pharma and healthcare category average have yielded annualized returns of 10% in last 5 years. However this mutual fund has exceeded this and provided annualized returns of 25% in last 5 years. Hence investing in such mutual fund would add flavor to your portfolio. Annualized returns in the last 5 years are as below:
- 1 Year – 18%
- 3 Years – 13%
- 5 Years – 25%
3) ICICI Pru FMCG Fund
This mutual fund invests in fast moving consumer goods (FMCG). Everyone would agree that the demand for FMCG goods would continue to grow. Hence investing in such mutual fund would provide excellent returns in long run. Annualized returns in the last 5 years are as below:
- 1 Year – 32%
- 3 Years – 29%
- 5 Years – 25%
4) Franklin Infotech Fund
This mutual fund invests in Information Technology and ITES related stocks. Due to outsourcing restrictions from US, IT industry has been slowdown for the past few years, However, still this mutual fund has performed well by investing in growing IT companies. Currently due to fall in dollar to rupee value, the IT stocks are expected to generate higher profits, hence IT stock prices have increased. This could be temporary. Annualized returns in the last 5 years are as below:
- 1 Year – 33%
- 3 Years – 9%
- 5 Years – 16%
5) ICICI Pru Infotech Fund
This mutual fund too invests in Information Technology and ITES related stocks. Annualized returns in the last 5 years are as below:
- 1 Year – 30%
- 3 Years – 12%
- 5 Years – 13%
Also Read: 10 Ways to earn money in your liesure time
6) UTI Transport and Logistics Mutual fund
This is one mutual fund which is under looked by investors. This mutual fund invests in transport, travel, and logistics related stocks. Travel and Tourism sector has been growing. This sector is expected to slow down during recession and when companies plan for cost optimization measures to improve their margins. Such instance happened in 2007-2008 period. Hence investors should be considering this risk before investing in such mutual funds.
- 1 Year – 11%
- 3 Years – 4%
- 5 Years – 19%
We are not covering banking and infrastructure mutual funds which are worst performing sectors for over 5 years. Investors have lost their money and continue to lose their money in such sectors every year.
Conclusion: The above mutual funds are all sector based mutual funds which are high risk. Thought I agree that some sectors would continue to grow like Pharma and FMCG, other sectors can show downtrend under difficult economic conditions. Hence, investors who look for high risk, high return investments should invest in this sector based mutual funds.
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Suresh
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Im 33 year old how much i should invest per month in mutual fund so dat i can get double amount in 3 to 5 year plz guide me
i am 28 year old and a govt. service holder , i want to invest per monthly basis in mutual fu
nd. so that i can get
double of my investment in 3-5 years. so please guide me
to invest in which mutual fund and for ho
w many years.
You should invest in high risk, high return mutual funds like pharma funds or Infra funds.
Suresh,
I need to invest in mutual funds. Hence could you suggest me 3 funds say 1. Large Cap 2. Small n Mid Cap 3. Diversified fund.
Regards,
Rafi
Hi Rafi, you can look for 1) ICICI Pru focussed blue chip fund, Quantum long term equity fund, Birla SL Frontline in large cap segment 2) Reliance equity opps, HDFC Mid-cap opportunities fund in mid-cap/diversified segment.
hello suresh sir
I have just started doing a job and I want to know about mutual funds for long term investment if I want to invest Rs 1000/- per month in 3 different mf???
Ishan, Happy to see such young individuals who are starting job are looking to save money. To Start, invest in balanced mutual funds like ICICI Balanced fund and HDFC balanced fund. Read all our articles and become familair on how they work. Then you can start investing in other funds too.
Hi I want to get double profit by investing more Mony in single go within a year. Please suggest me the best possible option so achieve my finance target .
Hello Suresh, need your advice. In the current situation is it ok to continue investing (SIP) in my two MFs:
a. Birla Sunlife Frontline Equity – Rs. 1000pm
b. L&T India Large Cap Fund – Growth – Rs. 1000pm
I am looking for long term investment…say 3 years. I have already completed investing for more than a year.
Hi Raghu, Birla SL Frontline is good. Stay invested for long term. L&T Large cap is Crisil Rank-3 and good performing mutual fund. Continue investing in it. But 3 years is not long term. You should invest atleast 5 to 8 years minimum to get good returns.
Suresh,
Can you please tell us about Arbitrage mutual funds..
I wanted to invest in HDFC arbitrage Mutual Fund.
Is this the right time to invest in them ???
Shivanand, I have not covered this topic on my blog, can you please post a request on “suggest a topic” so that I can analyse and post my analysis next week.
Suresh,
What is the best sector to invest in (equity and mutual fund) for investment horizon of 1-2 years???
I just responded to one of the reader, currently the best place to invest which I feel is Pharma sector. If you want to buy mutual funds, buy Pharma mutual funds for 1-2 years.
Suresh,
In present scenario what is the best sector / sectoral fund to invest for short – medium term. (SIP or Lumpsum)
Shiv, Sector funds are high risk, high return investments. In current scenario, investment in Pharma sector could be beneficial.
Suresh,
Shall i invest as lumpsum or start an SIP??
Shivanand, Always invest in mutual funds in SIP. It is good way to start and make good returns in long run. For lumpsum you should look for debt funds for balanced funds only.
Suresh,
Thank you for your valueble time…Plz advise if i should go in for the SBI's KAB BANOGEY CROREPATHI scheme which invests in mutual funds and which promises 1 crore in 36 months @ 2.37 lacs/mnth or via a mutual fund broker which i feel will be more benificial and faster as i plan to retire in 3 years time and would need this 1 crore to live on the interest of 8333/mnth.
Brien, As per my knowledge there is no such SBI Kab Banogey Crorepathi scheme. This is only calculator provided by SBI with this name. However i just checked what returns we should get ff you invest Rs 2.37 L / month for 36 months to achieve 1 Crore. The returns are just 9%. If you invest in debt funds which are low risk and a combination with bank FD, this is very much possible. Hence I am not surprised that someone promised this amount. Also check whether they are tax free returns. If you are in 30% tax bracket, you may need to pay Rs 4L (in case of bank FD) and mutual fund tax on returns if you invest in debt funds.
Dear Suresh..Its a fantastic blog..
Just a quick advise.
Most of my investments are in DEBT FUNDS..which i have kept against my mortgage..to be safe..
I have started liking towards DIVERSIFIED EQUITY, ICICI PRU SERVICES INDUSTRIES FUND GROWTH is the fund I have invested ..at nav 22.04 and today seeing markets down , a good oppotunity I invested again..I am a person who likes to book gains even at short term investments ..I also like sector funds recommended by you..Would you recommend going for the same..a year or so s ok with me..
Sector funds are high risk, high return investments. If you are risk taker, you can invest in SBI FMCG fund or Reliance Pharma fund. ICICI Pru Industries fund has picked up well in the last 3 to 6 months. I am planning to write article on this early next week. If you want to invest inthis, just wait and read the article before taking the decision.
Thanks Suresh for your advise…Will be waiting to read your article on the same..
Hi Suresh,
Based on market research, I have started below SIP.
Scheme: ICICI Pru Focused BlueChip Eq Fund-Reg(G)
Amount (Rs): 1,500.00
Scheme: UTI Opportunities Fund(G)
Amount (Rs): 1,000.00
Scheme: Reliance Equity Opportunities Fund(G)
Amount (Rs): 1,000.00
Scheme: SBI Emerging Businesses Fund-Reg(G)
Amount (Rs): 1,000.00
All abover investments are for long term (10-15 years)
I can invest 10000/month more but for shorter term like 3-5 years. Can you please suggest few more funds which can diversify my portfolio? I would like to add few debt funds and short term funds.
Please advise.
Thanks
Nandan
Nandan, you have choosen good funds. You can add diversified and large cap funds such as HDFC Top-200, Birla SL Frontline, ICICI Pru focussed blue chip fund, UTI MNC Fund and debt funds like HDFC Prudence etc.,
Hi Suresh,
First of all i have to give a clap to u man. I just come across for searching of investing mutual funds through sip and i got some other knowledge too.
Im very much surprised about u for properly giving reply for everyone you know. Ur doing great job.
And finally i have some basic queries abt sip mutual funds,
1.After deciding which funds to buy in sip what i have to do?
2.Am i need to open account or how can i purchase online?
just give me some brief.
Thank you.
Karthik, It encourages me to work better with your kind words. 1) Your first step of investment in MF’s is to open a demat account with any mutual fund broker like ICICI Direct or Fundsindia.com. 2) You can plan SIP request so that every month specific amount or units would be purchased and credited to your mutual fund account 3) You can also directly invest in mutual funds by directly purchasing from mutual fund websites. Go to the respective mutual fund website and click on purchase and rest of the process is guided
Hi Suresh,
Reliance Equity opportunity fund has been performing well consistently .
This can be also included to ur list.
Regards
Nasir
Thanks Nasir. In this article, I only indicated MF’s which doubled money in short term. Reliance thought performing good is not fitting into this definition.
Hi My name is Vijay. Recently I came to know about your blog through my friend and seeing this very informative. As I am new to SIP, I learnt a lot of things from your blog. I need a advice from you. As I want to start a SIP below are my options. Please give me your expert advice. My age is 29 and I am some risk taker for good returns.
Generally my savings would be monthly Rs.5,500
Large cap Funds – 40% Approx.
Birla Sun Life Frontline Equity – Rs. 1000
HDFC top 200 – Rs. 1000
Large & Mid cap Funds – 15% Approx.
Quantum long term equity – Rs. 1000
Mid & Small cap Funds – 15% Approx.
HDFC Midcap opportunities fund – Rs. 1000
Diversified Equity funds – 20% Approx.
PPFAS long term value fund – Rs. 1000
Sector Funds – 10 %
ICICI Prudential FMCG – Rs. 500
Thanks in Advance
Vijay, You said you are new, but I would not agree. You were able to understand it so quickly that you are able to diversify your portfolio and started choosing winning mutual funds. Couple of suggestions. PPFAS is just 3 months old fund. Performance can be reviewed in long run. Stay away from such funds as of now. All the best
Thank you Suresh and its a great to hear from you. These days I am googling a lot to understand these things. I read so many articles to finalize these things. Recently I came to know about Parag Parikh. I loved his idea of concentrating on a single mutual fund. So I am taking some risk, as it is a diversified. Is there any need for debt funds in my portfolio. How much percentage should it be? If I needed, tell me 1 or 2 good funds.
Hi Vijaya, I am not too sure to invest in single mutual fund. I feel you should invest in 5 to 7 funds depending on your risk appetier and investment horizon. Regd debt funds, you can invest in SBI Dynaminc bond fund or IDFC Dynamic fund. You can allocate up to 20% in debt. Probably, you can allocate 10% to debt funds.
Thank you very much Suresh. What I want to say is Parag Parikh is concentrating on single MF. He said that, he will not create new MF from his fund house. So I am putting Rs.1000 in his fund as he is concentrations on only one MF.
sir i am working in a bpo n hd a dau for the 1.5years n looking for securing the future //i read ur article every n see how u help everone //sir i had takn 2 lic policy from lic investing 25k /yr
n now i am planing to hav some monthly investment n want to invest 2-3k /month in 2 -3 mf .i am 31years
n want to save a part of my salary plz suggest me the best possible investment in mf //one more info sir i am nt really sure
how long i can go wth it may for min 3 to 10 years //plz suggest
Hi Vikas, LIC is not place to invest. It should be looked more from insurance perspective. Please consider taking Term insurance and balance you can invest in various options. The options could be Bank RD or Large cap or diversified funds like HDFC Top-200 or ICICI Pru focusssed bluechip fund or Birla SL Frontline etc.
Dear Suresh,
I want to ask you a question please.Well, some fo the funds that you pointed and they are also termed as "Best/Good" by M/S Valuereasearch. There in some funds like HDFC Top 200/HDFC Prudence etc. etc. the AUM is very much heavy.
Will it effect the performance of the funds?? Please reply.
Thanks
P.K.Laskar
Guwahati.
Assam.
Hi Pankaj, It would not influence the performance of fund. But it would influence your decision to buy. The AUM is high becuase, investors believe that these funds are strong enough to provide good returns in long run and more and more investors invest in it. This is on positive point which every investor would consider when they do MF research to purchase. This is one of the point to be considered and not the only point.
sir im new in this thing…actualy i jst got a job of 15k/mnth,,so nw im thinking of sme investmnt option coz i need 25 lakh aftr 8 years…could u plz tell me where to invest??
thx sir…
Govind. Good to hear that you want to invest early. Invest in diversified and large cap funds such as HDFc Top-200, Birla SL Frontline, ICICI Pru focussed blue chip fund, UTI MNC Fund and debt funds like HDFC Prudence etc.,
HI Suresh,
I must really appreciate the wealth of knowledge you are distributing with your free blog. Thanks a lot!!
I need some advice as I want to start investing regularly and I want to Invest around 25k per month in different instruments to optimize my returns.
Currently I have Investments in:
2500 pm in SBI Emerging Magnum Fund
4000 pm in RD’s.
1)I wish to make a good portfolio of Mutual Funds of Rs 15000 pm. Which other Mutual Funds would you suggest to have a mix of a diversified potfolio?
2) Between FD’s and Debt MFs, which one is better in terms of effective yield? Because to my knowledge interest on FD’s attract tax. Also sec 80 TTA exempts only interest on Saving Bank and not FD’s right?
Also, do you have any article on best Company Deposits and best performing Debt Mutual Funds ??
3) According to you, should one invest in Gold now? Do you percieve diamond to be a better investment?
Thanks in advance.
Ritu.
Hi Ritu. Thanks for your comments. 1)Invest in diversified and large cap funds such as HDFc Top-200, Birla SL Frontline, ICICI Pru focussed blue chip fund, UTI MNC Fund and debt funds like HDFC Prudence etc., 2) Debts have some risk whereas RD’s do not have. However if you invest for longer term, you can expect good returns in Debt funds too comparing to RD. Company FD’s are risky. I keep publishing latest company FD’s you can choose in want to take some risk. Check this about FD/RD Vs Debt funds comparison https://myinvestmentideas.com/2013/05/bank-fd-vs-debt-mutual-funds-which-is-the-best-investment-option/ 3) Ha ha, I would prefer to invest in Diamonds, but let me do some more analysis on that before I recommend
Hello Suresh sir, I would like to invest 30K Rupess for 3+ years. Could you please suggest some good funds which give (10% returs). My friends are suggest me to refer your article to get more info abour the nvestment. Also, suggest me can I invest it to single fund or invest the same on different funds…
Thanks, Aravind
Aravind, Invest in 4 to 5 funds if you want to invest Rs 30,000. However since your time horizon is only 3 years, you should invest in balanced funds like HDFC Prudence Fund or ICICI Balanced fund and Debt funds like SBI Dynamic bond fund or IDFC Dynamic fund and Bank RD’s only.
Thanks Suresh sir, As per your earlier threads reference, I have opened an account in Funds india. I am planning to invest 5 + years on the below recommanded funds. Please let me know, if there is any change. Based on your confirmation, I will proceed sir
HDFC Prudence Fund – 10K
ICICI Balanced fund – 10K
SBI Dynamic bond fund – 10K
Thanks
Aravind, Two are in balanced funds and 1 in debt funds. If you are conservative investor, this is ok, but if you are aggressive or moderate risk investor you should add diversified funds to your category.
Suresh Sir, Thank for your update. Als0, I would like to invest
SBI FMCG G -1500
Reliance Pharma G – 1500
funds for next 5 year ? What is your suggestion.
Also, I would like to buy a car in next 3 to 4 years iof time (worth 7 L)? I want to start savings on that as well ? Could you please suggest some other funds? My salary 30K+ per month
Last one, Can I invest 30K on any one fund for next 5 years.
Thank you so much for your prompt support so far.
Aravind, FMCG and Pharma are good. However they are high risk, high return investmnets. Please consider the risk while investing. If you would like to invest for short term of 3 to 4 years, invest only in Bank FD or debt mutual funds. Balanced mutual funds can be invested, but you may get low returns for such short term.
Dear Suresh i have a query.
Just wanted to know how compounding is working in MF ( funds which do not provide divedent).
i Have HDFC Balanced Growth fund in which im investing from 15 months now and the returns are in negative so far.
most of the site i read says about power of compounding and all. i don't think there is any compounding in MF where divedents are not provided.
in case of MF (where dividents are not provided) it is just the simple intreset on investment, made over the period, we get during the widrawal of money.
Please clear my dought.
I think one should buy/sip in divident yielding funds only for compounding considering 4-5 yrs of time horizon.
Regards,
Hitesh, You would see compounding clearly when you invest in Bank FD as the return are fixed. In mutual funds if you are investing through SIP, it would be difficult to see how compounding is helping you as returns are not fixed. They would fluctuate + / – depending on the stocks market investments.
Hi Suresh.. As per your suggestion, i am investing below .. Can you please have a look & let me know if any changes are required. I am planning to invest for 3 years in these funds.
ICICI PRUDENTIAL FOCUSED EQUITY FUND RETAIL GROWTH
3000K
UTI opportunities fund
3000K
HDFC prudence fund
3000K
UTI Pharma & health
1500K
ICICI Pru FMCG Fund
1000K
GS Hang-Seng BeES ETF
1000K
– Thanks
Good to go
the way you presented is wonderful suresh ,,but suresh i have a small question about what is the minimum amount that is required for depositing in mutual fund plans in these sectors
Thanks Jay. Every mutual fund scheme has their own mini amount. Generally, you need to invest Rs 1,000 for one time investment and Rs 500 if it is SIP.
Dear SIr,
I have found your blog post when browsing in the net.Well,read the article and really liked the idea.For a start I wish to continue with ICICI Prudential FMCG.I think with this I can continue sipping for at lest three years with out any tension.
please continue which will be very much usefull for lay investor like me.
Thank you so much!!
Thanks Pankaj. As indicated, invest limited amounts in sector based funds as they rae high risk, high return investments.
Dear Mr.Suresh,
Today L & T launch NFO L&T FMP – VIII – Plan C. Is this good for fund for investment? Can i get a good return after 2 or 3 years?
Anant
Anant, FMP’s are fixed maturity plan. L&T FMP’s currently being offered are for 368 days only. Means your investment along with return (if any) would be returned to you in 368 days. Though there are some merits, you should invest in long term funds to benefit more.
Dear Suresh,
Thanks for giving the info on best sectoral funds. I agree sectoral funds are risky but one should have these sectoral funds into their portfolio to the tune of 5% to 10% based on their risk apetite. Suresh, I request some info on these sectoral funds. This year, India has received surplus rainfall from the monsoons. Can you please suggest some good sectors (or sectoral funds) which would give us some good amount of returns.
Thanks
Ravikumar N
Ravi, Good monsoon for one year may not be sufficient 🙂 I feel stay invested in FMCG and Pharma sector funds.
superb compilation sir. i agree that FMCG would continue to grow but with continuous pharma regulations, this sector might show a downtrend in short term. however, if we look for a horizon of around 5 years, it may be a good bargain!