Best Mutual Funds to invest in 2013 by conservative investors

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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.

You may also like: Top 10 diversified mutual funds to invest

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.

You may also like: Best Mid-cap/small-cap Mutual funds for high risk investors

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

 

Suresh KP
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15 comments

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

    Reply

    1. 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.

      Reply

  2. 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?

    Reply

    1. 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

      Reply

  3. Hi

     

    I am planing Rs 10000  through sip from this month

     

    1.Franklin India Bluechio -G -2500.00

    2.UTI Opp G-2500

    3.Hdfc Equity -G-2500.00

    4.ICICI Foc Bluchip -2500

    If any Modifcation needed 

    Reply

    1. Julius, Good to go except for HDFC Equity. Instead of this, you can choose HDFC Top-200 or Birla SL Frontline or any other good diverisifed or large cap mutual fund

      Reply

  4. Hi Suresh,

    Im 22 years old and looking to invest in mutual funds,i heard from a few CA's that the processing fee,portfolio management fee etc charged by a company is usually high so FD'S and PPF's are better .I want to know if its true.

    And also i am planning to invest some money in mutual funds through SIP every month depending on your sujjestion.Im looking for a 5-6 years investment with moderate risk and a little  high returns.

    1.HDFC Top 200 – 1.5k

    2.ICICI PRU Focussed blue chip equity -1.5k

    3.HDFC Prudence fund – 2k

    Tell me if iam going wrong and please do sujjest a fund which gives good returns for a 4-5 year SIP investment which can beat bank FD's.

    Reply

    1. Hi Maverick, Someone gave wrong info to you. You can direct that person to me, I would talk to him and give my peace of mind. Yes Mutual funds do charge management fees, but after considering all of them, there are mutual funds which gies returns between 9% to 15% p.a. Apart form Stocks, none of the investment options gives this much high return. Thought company FD;s provide high returns, they are high risk comparing to mutual funds. HDFC Top-200 and ICICI Pru focussed are good and large cap and definitely beat the Bank FD. However HDFC Prudence if balanced fund. Means your returns would be little higher to bank FD and you cannot expect high returns in this scheme. This is good for moderate risk investors.

      Reply

  5. Hi Suresh,

    I am new to Mutual Fund. I want  to invest Rs. 5,500/= pm  in MFthrough SIP. I am planning to invest in the following MF for long term

    1. BSL Frontline Equity Fund – Plan A (G) – Rs. 1000

    2. HDFC Equity Fund (G) – Rs. 1000

    3. SBI Emerging Businesses Fund (G) – Rs. 1000

    4. HDFC Balanced Fund (G) – Rs. 1000

    5. IDFC Dynamic Bond Fund (G) – Rs. 1000

    6. SBI FMCG Fund (G) – Rs. 500

    Please share your suggestions on my selection of funds

     

    Regards

    Amarjit

    Reply

  6. Sir,

    I am 35 yrs old having two daughters one is 5 yrs old and second 5 month old. I want to invest INR 10000 per month in MF through SIP. I have two MF since 2008.

    1. HDFC Equity growth- Rs 2000

    2.Icici Produential dynamic growth – Rs 1000

    I am planning to invest Rs 8000 in following MF monthly throu sip-

    1.SBI magnum balanced fund- Rs 2000  for 7 yrs

    2.SBI FMCG – Rs1000 for 10 yrs

    3. HDFC Equity- Rs 2000 for 10 yrs

    4.UTI Oppournity fund- Rs 1000 for 10 yrs

    5.HDFC Top 200-Rs 2000 for 7 yrs

    I want your opnion about MF whic i have selecetd.

    Regards,

    MAHESH

    Reply

    2. Hi Mahesh,

      i really liked your plan even i am not much into financial advie..I guess you can invest through FundsIndia.com because once you open your MF Account with them..you can schedule a call at your convenience time for Advisory services and they will suggest you a good plan also this is all for Free (No opening charges,No transaction fees etc)..This all i am saying because i am investor with them and enjoying their services so thought to suggest you.

       

      Thanks

      Anand

      Reply

    1. Hi Piyush, this is an ultra short term mutual fund scheme and Crisil-1 which invests in short term debt securities. Good for short term period

      Reply

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