How to Create a Diversified & the Best Mutual Fund Portfolio?

In the pursuit of financial growth, the inclination to invest often leads individuals to explore various money-making avenues. While many may start with a few fundamental equity or debt mutual fund schemes through Systematic Investment Plans (SIPs), experienced investors usually realise that managing an extensive array of mutual fund holdings can present challenges. Thus, this is where investing in the best mutual fund portfolio comes into play. Let’s understand how.

List of  Equity & Debt Funds

Now, you can explore a range of equity funds and debt funds, offering exposure to various sectors and market caps, allowing for a tailored approach to your investment goals.

Equity Funds

Here are the equity  top 10 mutual fund schemes:

Scheme Name	SEBI Categorisation	5Y CAGR (%)
Quant Small Cap Fund	Small Cap Fund	46.53
Bank of India Small Cap Fund	Small Cap Fund	37.94
Nippon India Small Cap Fund	Small Cap Fund	35.76
Canara Rob Small Cap Fund	Small Cap Fund	34.82
Quant Infrastructure Fund	Sectoral Fund - Infrastructure	34.80
Edelweiss Small Cap Fund	Small Cap Fund	33.86
Tata Small Cap Fund	Small Cap Fund	33.71
Quant Mid Cap Fund	Mid Cap Fund	33.16
Motilal Oswal Midcap Fund	Mid Cap Fund	32.96
ICICI Pru Commodities Fund	Thematic Fund	32.69

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data on this list is from 20th November 2024 and the data is derived from Tickertape Mutual Fund Screener.

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate stocks with over 50+ filters and parameters.

Debt Funds

Here are the 10 top debt funds for your portfolios in 2024:

Scheme Name	SEBI Categorisation	5Y CAGR (%)
Bank of India Credit Risk Fund	Credit Risk Fund	10.90
Aditya Birla SL Medium Term Plan	Medium Duration Fund	10.49
JM Low Duration Fund	Low Duration Fund	9.59
UTI Dynamic Bond Fund	Dynamic Bond Fund	8.95
Baroda BNP Paribas Credit Risk Fund	Credit Risk Fund	8.90
Bank of India Short Term Income Fund	Short Duration Fund	8.89
DSP Credit Risk Fund	Credit Risk Fund	8.76
Aditya Birla SL Credit Risk Fund	Credit Risk Fund	8.51
ICICI Pru Credit Risk Fund	Credit Risk Fund	8.16
ICICI Pru All Seasons Bond Fund	Dynamic Bond Fund	8.12

Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.

Note: The data on this list is from 20th November 2024 and the data is derived from Tickertape Mutual Fund Screener.

🚀 Pro Tip: You can use Tickertape’s Mutual Fund Screener to research and evaluate stocks with over 50+ filters and parameters.

A Brief Overview of Funds

Here is brief overview of the funds listed above, these overviews can help investors determine which are the best mutual funds to invest in their portfolios. It is important to note that these are not mutual fund recommendations but just for educational purposes:

Equity Fund

Quant Small Cap Fund

Quant Small Cap Fund is an open-ended equity mutual fund managed by Quant Mutual Fund, focusing on investments in small-cap companies. The fund aims to generate capital appreciation by investing in a well-diversified portfolio of small-cap stocks. 

Bank of India Small Cap Fund

Bank of India Small Cap Fund is an open-ended equity scheme that primarily invests in small-cap companies within India. Launched on 19th December 2018, the fund aims to achieve long-term capital appreciation by focusing on equity and equity-related securities of small-cap firms.

Nippon India Small Cap Fund

The Nippon India Small Cap Fund is an open-ended equity scheme that primarily invests in small-cap stocks within the Indian market. The fund’s investment strategy focuses on identifying high-growth potential companies that are currently under the top 250 in terms of full market capitalisation. This approach aims to capitalise on the growth prospects of emerging businesses that may evolve into mid-cap or large-cap entities over time.

Canara Rob Small Cap Fund

Canara Robeco Small Cap Fund is an open-ended equity scheme in India that primarily invests in small-cap stocks. Launched in February 2019, the fund has demonstrated robust performance, delivering a Compound Annual Growth Rate (CAGR) of approximately 28.63% since inception.

Quant Infrastructure Fund

Quant Infrastructure Fund is an open-ended equity mutual fund in India that primarily focuses on investments in infrastructure-related sectors. It aims to provide long-term capital appreciation by investing in equity and equity-related instruments of companies that are either directly or indirectly associated with the infrastructure sector.

Edelweiss Small Cap Fund

Edelweiss Small Cap Fund is an open-ended equity scheme in India that primarily invests in small-cap companies, aiming for long-term capital appreciation. The fund’s portfolio comprises 98.07% domestic equities, with 11.06% in mid-cap stocks and 54.76% in small-cap stocks.

Tata Small Cap Fund

Tata Small Cap Fund is an open-ended equity scheme in India, primarily investing in small-cap companies. Launched in November 2018, the fund aims to achieve long-term capital appreciation by focusing on equities and related instruments of small-cap firms. 

Quant Mid Cap Fund

Quant Mid Cap Fund is an open-ended equity mutual fund in India, primarily investing in mid-cap companies—those ranked between 101st and 250th by market capitalisation. Established in March 2001, the fund aims to generate capital appreciation and provide long-term growth opportunities by focusing on mid-sized enterprises.

Motilal Oswal Midcap Fund

Motilal Oswal Midcap Fund is an open-ended equity mutual fund in India that focuses on investing in mid-cap companies. The fund employs a bottom-up stock-picking approach, selecting quality mid-cap companies with sustainable competitive advantages and strong growth prospects.

ICICI Pru Commodities Fund

ICICI Prudential Commodities Fund is an open-ended equity mutual fund tailored for investors seeking exposure to India’s commodities sector. Launched on 15th October 2019, the fund primarily focuses on investing in equity and equity-related instruments of companies linked to commodities such as metals, mining, chemicals, and energy.

Debt Funds

Bank of India Credit Risk Fund

Bank of India Credit Risk Fund is an open-ended debt scheme that primarily invests in corporate bonds rated AA and below, excluding AA+ rated bonds. It aims to generate long-term capital appreciation by investing across the credit spectrum within the universe of investment-grade ratings. 

Aditya Birla SL Medium Term Plan

Aditya Birla Sun Life (ABSL) Medium Term Plan is an open-ended debt mutual fund in India, focusing on medium-duration investments. It primarily invests in debt securities with a Macaulay duration between three to four years, aiming to generate regular income and capital appreciation.

JM Low Duration Fund

JM Low Duration Fund is an open-ended debt mutual fund offered by JM Financial Mutual Fund in India. It aims to generate stable, long-term returns with a low-risk strategy, focusing on capital appreciation and preservation. The fund invests in debt and money market instruments, maintaining a Macaulay duration between six to twelve months.

UTI Dynamic Bond Fund

UTI Dynamic Bond Fund is an open-ended dynamic debt scheme managed by UTI Mutual Fund, one of India’s prominent asset management companies. This fund offers investors the flexibility to invest across various durations in debt and money market instruments, actively adjusting its portfolio in response to evolving interest rate scenarios.

Baroda BNP Paribas Credit Risk Fund

Baroda BNP Paribas Credit Risk Fund is a debt mutual fund scheme in India designed to generate income by primarily investing in corporate bonds with higher credit risk. As a credit risk fund, it focuses on securities rated below the highest credit quality, aiming to benefit from their potentially higher yields.

Bank of India Short Term Income Fund

Bank of India Short Term Income Fund is an open-ended debt scheme that invests in instruments with a Macaulay duration between one and three years, aiming to generate income and capital appreciation. Launched on 18th December 2008, the fund is managed by Mr. Mithraem Bharucha. 

DSP Credit Risk Fund

DSP Credit Risk Fund is an open-ended debt mutual fund in India that focuses on investing predominantly in corporate bonds and other fixed-income instruments, with a significant allocation to lower-rated but potentially higher-yielding securities. As a credit risk fund, it aims to generate superior returns by taking on credit exposure, targeting companies rated AA and below. 

Aditya Birla SL Credit Risk Fund

Aditya Birla Sun Life Credit Risk Fund is an open-ended debt scheme in India that primarily invests in corporate bonds rated AA and below. The fund aims to generate returns by focusing on higher-yielding corporate securities with short to medium-term maturities across the credit spectrum within the investment grade.

ICICI Pru Credit Risk Fund

ICICI Prudential Credit Risk Fund is a mutual fund scheme in India designed to primarily invest in debt securities with relatively higher credit risk, focusing on AA-rated or below bonds. This fund aims to generate income by maintaining a well-diversified portfolio of corporate bonds and other debt instruments issued by companies with improving credit profiles.

ICICI Pru All Seasons Bond Fund

ICICI Prudential All Seasons Bond Fund is a dynamic bond fund in India, offering investors the flexibility to invest across various debt instruments and money market securities. The fund’s strategy involves actively managing the portfolio’s duration based on prevailing market conditions, aiming to optimise returns while maintaining a balance between yield, safety, and liquidity.

What is a Mutual Fund Portfolio?

Each of us works diligently to earn money, cutting corners and saving for the future. However, the spectre of inflation can erode our hard-earned savings. This is where investments come into play. The best mutual fund portfolio is a diversified collection of investment assets, such as stocks, bonds, and other securities, managed by fund managers on behalf of investors. By pooling resources, individuals can access a well-managed and diversified portfolio, reducing risk and potentially maximising returns.

What Categories Can Qualify as Core Funds?

Okay, the first question to find is which category of funds should qualify as core funds – equity, debt, or hybrid?

In our perspective, a core fund should possess two key attributes:

• Ability to generate substantial returns
• Providing stability to your portfolio, and minimal restrictions on its investment approach.

Let’s consider the equity fund category. However, it’s essential to note that debt funds or hybrid funds can also serve as core funds, a debt fund may be suitable for a retiree’s portfolio, and a hybrid fund can be fitting for those seeking automatic asset allocation.

Therefore, here is a list of equity fund categories that can be qualified or not.

Category	Qualified/Disqualified	Reason
Large-cap	Qualified	Large-cap exposure of at least 80%; no restrictions on the investment philosophy
Mid-cap	Disqualified	Large-cap exposure is less than 50%
Large & mid-cap	Qualified	Average large-cap exposure over the last 3 years is more than 50%; no restrictions
Small-cap	Disqualified	Large-cap exposure is less than 50%
Flexi-cap	Qualified	Average large-cap exposure over the last 3 years is more than 50%; no restrictions
Multi-cap	Disqualified	Average large-cap exposure over the last 2 years is less than 50%
ELSS	Qualified	Average large-cap exposure over the last 3 years is more than 50%; no restrictions
Dividend yield	Disqualified	Must invest only as per the dividend theme
Value	Disqualified	Must invest only as per the value or contrarian theme
Focused	Qualified	Average large-cap exposure over the last 3 years is more than 50%; no restrictions
Sectoral/thematic	Disqualified	Must invest only in a particular sector or theme

Let us now figure out how to create mutual fund portfolios in a step by step manner:

Steps to Build the Best Mutual Fund Portfolio

Creating the best mutual fund portfolio can be a straightforward and effective method for diversifying your investments and fostering long-term growth. You can consider the following steps when building a good mutual fund portfolio:

Step 1: Define Your Objectives

The initial stride in constructing a top mutual fund portfolio involves clearly defining the objectives for which you are creating the portfolio. Establishing specific goals is crucial, as all subsequent decisions will be grounded in them. Identifying goals also aids in determining the associated time horizon, influencing the level of risk one can undertake

Step-2: Choose Investment Avenues

Once goals and their respective time horizons are identified, the next step involves selecting appropriate investment avenues for each objective. For instance, for short- to medium-term goals (one to three years), opting for short- to medium-duration debt funds may be suitable. 

Index	Minimum Years for Positive Returns
NIFTY 50 TRI	4 years
NIFTY Midcap 150 TRI	4 years
NIFTY Smallcap 250 TRI	6 years

Step-3: Research the Various Mutual Funds

The subsequent phase in building the best mutual fund portfolio entails thorough research on various overlapping mutual funds after setting investment objectives and asset allocation plans. Emphasising long-term performance over short-term fluctuations can be vital in this evaluation process. Consideration of the fund’s expense ratio, an annual charge covering operational expenses, is another critical factor. Investors can utilise the Tickertape Mutual Funds Screener to conduct this research and compare various mutual funds to determine which one suits their portfolio best. 

Step-4: Selection of Suitable Mutual Funds

Following the research on different mutual funds, the next step is to choose funds that align best with your investment objectives and asset allocation strategy to figure out which MF is best for your portfolio. Constructing a diversified portfolio of mutual funds with investments spanning various asset classes, including equities, bonds, and cash, is a method for choosing mutual funds. One may opt for investments in a money market fund, bond fund, large-cap stock fund, or small-cap fund. 

This diversification across asset types can potentially reduce the risks of the best mutual fund portfolio and enhance long-term returns.

Step-5: Monitoring Your Portfolio

After finalising your ideal mutual fund portfolio, regular asset monitoring becomes a crucial step. This involves tracking the portfolio’s performance and staying informed about any changes in the fund’s investment philosophy or holdings.

Step 6: Embracing Discipline

Maintaining discipline is essential when investing in mutual funds. Building the best mutual fund portfolio for SIP allows predetermined intervals for investing in mutual funds (e.g., monthly or quarterly), which is one way to uphold discipline and manage mutual fund portfolios.

Core and Satellite Strategy

The Core and Satellite investment strategy is a diversified approach where investors allocate the majority of their portfolio to a stable “core” of low-risk, long-term assets. This core typically consists of broad-market index funds or exchange-traded funds (ETFs) that can provide potential returns over time. 

In addition to the core, investors can allocate a portion of their mutual fund diversified portfolio to higher-risk, higher-reward investments known as “satellites.” These satellite investments may include individual stocks, sector-specific funds, or actively managed funds. The satellite holdings allow investors to take advantage of specific opportunities or trends in the market.

Let’s have a look at the differences between Core and Satellite.

Core	Satellite
Forms 70-90% of the portfolio.	Constitutes 10-30% of the portfolio
Prioritizes stability, with low to medium-risk investments, often in large-cap best mutual fund stocks or index funds.	Emphasizes diversity and high return potential, including higher-risk investments like mid-cap or small-cap stocks.
Addresses long-term financial goals.	Can be used for short-term financial objectives.

Who Can Invest in the Best MF Portfolio? 

Anyone with the intent and financial capacity to invest can consider building the best mutual fund portfolio. Mutual funds are accessible to a broad range of investors, from beginners to seasoned individuals. If you are a young investor with a long time horizon, you may be able to tolerate more risk and invest in a portfolio with a higher allocation to stocks. However, if you are an older investor with a shorter time horizon, you may want to choose a portfolio with a lower allocation to stocks and more bonds.

Investors can choose from various types of mutual funds, including equity, debt, and hybrid funds, based on their preferences and objectives. 

How Many Funds Should a Mutual Fund Portfolio Have?

The ideal number of mutual funds for building the best mutual fund portfolio depends on various factors, including your investment goals, risk tolerance, and time horizon. However, a general rule of thumb suggests having between 6 to 10 funds across different asset classes to achieve adequate diversification.

Too few funds can limit diversification and expose your portfolio to excessive risk from a single fund or asset class. Conversely, too many funds can make it challenging to track and manage effectively.

Remember, these specific numbers of funds may vary depending on your circumstances. It’s always advisable to consult and/or a financial advisor before investing.

Benefits of Building the Best Mutual Fund Portfolio

Building a well-diversified and the best mutual fund portfolio offers several advantages that can significantly impact your long-term financial goals. Here are some of the key benefits of constructing a sound mutual fund portfolio:

Diversification and Risk Mitigation

Through portfolio diversification, you can spread your investments across a range of asset classes, such as equity, debt, and gold. By diversifying, you can minimize the impact of market fluctuations on your portfolio’s value.

Professional Management and Expertise

Mutual funds are managed by experienced investment professionals who possess in-depth knowledge of the financial markets and the ability to select and analyze individual securities. This expertise helps ensure that your investments are managed effectively and strategically.

Accessibility and Affordability

Mutual funds offer investors the opportunity to participate in a variety of investment strategies with relatively low minimum investment amounts. This makes them accessible to a wide range of individuals, regardless of their financial background.

Convenience and Ease of Management

Mutual funds simplify the investment process by handling the complexities of stock selection, portfolio rebalancing, and dividend reinvestment. This may allow investors to focus on their long-term financial goals without spending excessive time managing their investments.

Potential for Higher Returns

Diversified top mutual fund portfolios have the potential to generate higher returns over the long term compared to individual stock investments. This is due to the diversification effect, which potentially reduces the overall risk and allows for exposure to potentially higher-growth opportunities.

Regular Income Generation

Many mutual funds distribute dividends to their investors, providing a regular stream of income. This can be particularly beneficial for investors nearing retirement or those seeking additional cash flow.

Long-Term Wealth Creation

Mutual funds are well-suited for long-term investment goals, such as retirement planning or children’s education. By investing consistently over time, you can take advantage of the power of compounding and potentially achieve significant wealth accumulation.

Tax Advantages

Mutual funds offer certain tax benefits, such as the ability to defer capital gains taxes until shares are sold. This can help investors maximize their overall returns.

Taxation on Mutual Funds as per the Union Budget for 2024-25

The taxation on capital gains from your mutual fund investments is based on their holding periods and asset allocation. A few revisions were made to the tax rates, depending on their types, in the Union Budget 2024-25. It may be important to learn about these revisions when considering mutual fund portfolios. These changes include:

Equity Mutual Funds

• Short-Term Capital Gains (STCG): The gains from equity mutual funds held for less than 12 months are now taxed at 20%. This is an increase from the previous tax rate of 15%.
• Long-Term Capital Gains (LTCG): For equity mutual funds held for over a period of over 12 months, gains are classified as long-term capital gains. The new budget introduces these key changes to the LTCG:

1. Tax-Free Limit: The capital gains up to Rs. 1.25 lakh per year are tax-free. This is an increase from the previous limit of Rs. 1 lakh.
2. Tax Rate: The gains exceeding Rs. 1.25 lakh are now taxed at a flat rate of 12.5%. This is an increase from the previous rate of 10%.
3. Indexation: The benefit of indexation, which allowed investors to adjust the purchase price for inflation, has been removed for all asset classes, including equity mutual funds.

Indexation was a method that allowed investors to adjust the purchase price of assets for inflation. This adjustment reduced taxable profits when selling assets like property or gold. Previously, these long-term capital gains were taxed at 20%. The new rule imposes a flat 12.5% tax on all long-term capital gains but eliminates any indexation benefits.

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 12 months	15%	20%
Long-Term Capital Gains (LTCG)	More than 12 months	10%	12.50%

Debt Mutual Funds

• Short-Term Capital Gains (STCG): If you sell your debt fund units within a period of 36 months, the gains are classified as short-term capital gains. The STCG will be taxed according to your income tax slab rate.
• Long-Term Capital Gains (LTCG): For debt funds held for a period over 36 months, the gains are classified as long-term capital gains. The new budget outlines a few changes on the LTCG for debt funds, including:

1. Tax Rate: A flat 12.5% tax rate applies to these gains.
2. No Indexation Benefit: The previous benefit of adjusting the purchase price for inflation is removed. Now, the entire gain after three years is taxable at 12.5%.

• Change in Holding Period for Specified Mutual Funds: Previously, debt mutual funds with a holding period of over 36 months were taxed based on the investor’s tax slab, classified as Long-Term Capital Gains (LTCG). Now, for specified mutual funds where over 65% of the investment is in debt, the holding period for taxation has been reduced to over 24 months. These funds will still be taxed according to the investor’s tax slab as either LTCG or STCG. 

Capital Gains Tax	Holding Period	Old Rate	New Rate
Short-Term Capital Gains (STCG)	Less than 36 months	Taxed according to your income tax slab	Taxed according to your income tax slab
Long-Term Capital Gains (LTCG)	More than 36 months	10%	12.50%

Hybrid Mutual Funds

Short-Term Capital Gains (STCG)

The tax on short-term capital gains depends on the fund’s asset allocation when it comes to hybrid mutual funds. Here is a breakdown of STCG tax rates according to their asset allocation in hybrid funds:

• Equity-Oriented Hybrid Funds (more than 65% in equity): The gains from units sold within 12 months are taxed at 20%.
• Debt-Oriented Hybrid Funds (less than 65% in equity): The gains from units sold within three years are taxed according to your income tax slab.

Long-Term Capital Gains (LTCG)

The capital gains tax on hybrid mutual funds that extend the specified period (12 or 36 months) is known as the long-term capital gain tax. The tax treatment under this condition is as follows:

• Equity-Oriented Hybrid Funds: The gains from units held for over a period of 12 months are taxed at 12.5%. The gains up to Rs. 1.25 lakh are tax-free.
• Debt-Oriented Hybrid Funds: The gains from units held for over a period of 36 months are taxed at 12.5% without indexation benefits. This means the entire gain is taxed at this rate, without adjustment for inflation.

Type of Hybrid  Fund	Short-Term Capital Gains (STCG)	Long-Term Capital Gains (LTCG)	Indexation Benefit
Equity-Oriented Hybrid Funds	20% for holdings less than 1 year	12.5% for holdings over 1 year, with gains up to Rs. 1.25 lakh tax-free	Not available
Debt-Oriented Hybrid Funds	Taxed as per income tax slab for holdings less than 3 years	12.5% for holdings over 3 years	Not available

Note: Mutual fund schemes where neither the equity nor debt orientation exceeds 65% will now be classified as long-term investments after 24 months. The previous holding period for these funds was 36 months. These will be taxed at the revised LTCG tax rate of 12.5%.

Are there any Risks Associated with the Top Mutual Fund Portfolio?

Investing in mutual fund portfolios exposes investors to a variety of risks, which must be carefully assessed, particularly in the Indian context. While mutual funds offer diversification and professional management, these benefits come with inherent uncertainties that could impact the returns.

Market Risk: Mutual funds are directly affected by fluctuations in the market. In India, stock and bond markets are highly sensitive to economic changes, geopolitical tensions, and global market trends. This volatility can cause the value of investments to rise or fall, impacting the overall returns on the portfolio.

• Credit Risk: Debt-oriented mutual funds face credit risk, where the issuers of securities in the portfolio may fail to meet their payment obligations. In India, instances of corporate defaults have heightened this concern. Investors in debt funds should be cautious about the credit ratings of underlying assets.
• Interest Rate Risk: Fixed-income securities in mutual fund portfolios are susceptible to interest rate changes. In India, movements in the Reserve Bank of India’s (RBI) policy rates can significantly affect the performance of debt funds. Rising interest rates typically lead to a decline in bond prices, adversely affecting fund returns.
• Concentration Risk: In India, some mutual funds may focus heavily on specific sectors or themes, such as IT, banking, or infrastructure. While this approach can yield high returns in favourable conditions, it increases the risk of losses if the sector underperforms.
• Currency Risk: International mutual funds that invest in foreign assets expose Indian investors to currency risk. Fluctuations in the rupee’s value relative to foreign currencies can amplify or erode returns.

Things to Consider Before Building the Best MF Portfolio 2024

Several need to be considered before building the best mutual fund portfolio 2024. Here we have listed out some of them. 

Investing Objectives

The financial goals that you plan to achieve through your investment portfolio are referred to as investment goals. Determining your investment objectives is crucial before constructing the best mutual fund portfolio. Your goals, whether short-term or long-term, can influence the choice of funds. High-return, high-risk options might align with long-term goals, while conservative choices could be suitable for short-term objectives.

Risk Tolerance

Assessing your risk tolerance is a pivotal factor. Different mutual funds in the best mutual fund portfolio can carry varying levels of risk, and understanding your comfort with market fluctuations is essential. Aggressive funds may offer good returns but come with heightened volatility, which may or may not align with your risk appetite.

Diversification

Diversifying your diversified mutual fund portfolio examples across different asset classes can be a risk management strategy in the best mutual fund portfolio. It may involve allocating investments among stocks, bonds, and other instruments to spread risk. However, diversification might not guarantee against losses, and the effectiveness of this strategy can vary based on market conditions.

Fund Performance

Evaluating the historical performance of mutual funds is a common practice. Past performance can provide insights, but it doesn’t guarantee future results by investing in the best mutual fund portfolio. A fund that performed well in the past can face challenges or changes in the future, making it important to consider other factors beyond historical returns.

Fund Expenses

Examining fund expenses is crucial as it can impact your overall returns. High expense ratios might reduce the returns you receive. While low expenses are generally favourable, it’s important to weigh them against the fund’s performance and other factors. Additionally, hidden fees or transaction costs may also influence the overall cost of investing in the best mutual fund portfolio.

To Wrap It Up…

To conclude, building the best mutual fund portfolio is like curating a playlist for your financial journey. It’s about finding the right mix of stability and growth that syncs with your unique goals and rhythm. Remember, the key is choosing the top performers and aligning your investments with what matters most to you. As always, please do your own research and/or consult a financial advisor before investing.

Most Popular Mutual Funds:

As an investor to have a diversified mutual funds portfolio, you might also like to know more about these different types of funds for investing –

Large Cap Mutual Funds	Mutual Fund Bulk Deals	SBI Mutual Funds for SIP	SBI MF for Long Term SIP	Sectoral Mutual Funds	Short Term Mutual Funds	Tax Saving Mutual Funds	Mid Cap Mutual Funds
Small Cap Mutual Funds	Pharma Mutual Funds	80c Mutual Funds	1 Year Mutual Funds	International Mutual Funds	Tata Mutual Funds	Mutual Fund Portfolio	Best Mutual Funds
High Risk Mutual Funds	Micro Cap Mutual Funds	AMCs	MNC Mutual Funds	Equity Mutual Funds	Overnight Funds	ICICI Pru Mutual Funds	HDFC Mutual Funds
Best Investment Plans	Fixed Income Mutual Funds	Penny Stock Mutual Funds	Retirement Mutual Funds	Floater Rate Funds	Aggressive Hybrid Funds	Multi Asset Allocation Funds	Children’s Funds
Medium Duration Funds	Debt Funds	Corporate Bonds	Ultra Short Term Funds	Value Funds	Contra Funds	Focused Funds	Funds of Funds
Money Market Funds	Arbitrage Funds	Gold Mutual Funds	Books on Mutual Funds	Best Mutual Funds for SIP	SBI Mutual Funds	Low Risk Mutual Funds	Dividend Paying Funds
Long Term Mutual Funds	Banking Mutual Funds	Gilt Funds	Mutual Funds for 10 Years	Monthly Income Mutual Funds	Nifty 50 Index Funds	Lumpsum Investment Funds	Blue Chip Mutual Funds
Low Expense Ratio Funds

Frequently Asked Questions (FAQs) on Best Mutual Fund Portfolio