Best Mutual Funds for High Returns in FY 24-25: Which Sectors and Schemes Should I Invest In?

Ans: Sectoral funds are there, only one can be looked upon, 4, 7, 8, 11 seems better options

Ans: Hi Venkatesulu, I would suggest diversifying your further investments in the future with different AMCs as current investments lies to specific 1 AMC.

Further I would suggest changing one of your funds from Aditya Birla tax relief 96 direct growth to another fund in same category.

Aditya Birla Sun Life Pharma & Healthcare Fund Direct Growth lies in sectoral-pharma. It's for the long term with a horizon of more than 8 yrs minimum.

With your new sip investment, Kindly find below suggested schemes:

• ICICI Prudential Bluechip Fund -- 3,000.00
• PGIM India Flexi cap Fund -- 3,000.00
• Canara Robeco Emerging Equities Fund -- 3,000.00
• Total: 9,000.00

Ans: There is no sure-shot method to predict which mutual fund scheme or sector will do well in the short term or in the next 1 year.

Most investors are better off picking funds from diversified equity fund categories and being willing to remain invested for the long term, which is at least 5 years.

Ans: Expanding Mutual Fund Portfolio and Evaluating Current Investments

As you seek to diversify your mutual fund portfolio beyond your current investments, it's essential to assess the future prospects of your existing funds and identify potential new additions.

Analyzing Current Investments

Before exploring new mutual fund options, let's evaluate the future prospects of the four funds you're currently investing in:

1. Baroda BNP Paribas Multi Cap Fund

This fund invests across large-cap, mid-cap, and small-cap stocks, offering diversification across market segments. Its future performance depends on the fund manager's ability to identify lucrative investment opportunities across market capitalizations.

2. Canara Robeco Bluechip Equity Fund

Aiming for capital appreciation through investments in large-cap stocks, this fund's future hinges on the performance of blue-chip companies in the equity market. It's crucial to monitor the fund's consistency in delivering returns over time.

3. Canara Robeco Small Cap Fund

With a focus on small-cap stocks, this fund seeks to generate high growth potential. Its future performance relies on the fund manager's skill in selecting promising small-cap companies poised for growth in the market.

4. Mirae Asset Large Cap Fund

Investing predominantly in large-cap stocks, this fund aims for stable returns and capital appreciation. Its future depends on the fund manager's ability to capitalize on opportunities within the large-cap segment of the market.

Identifying New Mutual Fund Options

To complement your existing investments and enhance portfolio diversification, consider adding mutual funds from different categories and sectors. Here are some suggestions:

1. Sectoral or Thematic Funds

Investing in sectoral or thematic funds can provide exposure to specific industries or themes with growth potential. However, it's essential to diversify across sectors to mitigate concentration risk.

2. Mid-Cap or Small-Cap Funds

Adding mid-cap or small-cap funds to your portfolio can enhance growth potential by tapping into opportunities in these segments of the market. However, these funds come with higher volatility and risk, so it's crucial to assess your risk tolerance.

3. International Funds

Investing in international funds allows you to diversify geographically and gain exposure to global markets. Consider funds that focus on developed or emerging markets based on your risk appetite and investment objectives.

4. Hybrid or Balanced Funds

Hybrid or balanced funds invest in a mix of equities and debt instruments, offering a balanced risk-return profile. Adding such funds can provide stability to your portfolio while maintaining growth potential.

Recommendations and Future Outlook

As a Certified Financial Planner, I recommend conducting thorough research and consulting with a professional to select mutual funds aligned with your financial goals, risk tolerance, and investment horizon.

Regularly review your portfolio to ensure it remains diversified and aligned with your objectives. Keep abreast of market trends and fund performance to make informed decisions regarding portfolio rebalancing or reallocation.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in