Today, technology has made it easy for anyone to invest in the market without having any deep knowledge. Millennials don’t want to occupy by same things doing repeatedly. They are more interested to divert their efforts and energies into multiple places. This might have its own merits and demerits but let us consider it as positive move.
Mutual fund is a combination of different stocks and debts which can help to minimize the risk of market uncertainty and adjust the corpuses. Millennials know and understand the importance of risk diversification. They are smart enough to divert the uncertainty through combining different chips and debts available.
Reasons behind Popularity of Mutual Fund
It allows you to combine your portfolio with fixed and variable interest income which further make folder more balanced. Let’s say, you have 30% portion of your portfolio with fixed deposit and National pension schemes which will ensure you to have risk free income with low rate of interest that is around 4-6% but, at the same time you have some semi blue chip stocks to earn around 16-18% annually and some budding companies which may give you up to 15-20% returns annually. Hence, if your portfolio is better enough to tackle market movement then it is viable to say that you can have 12-14% overall average returns from your mutual fund.
Points to keep in mind while choosing mutual fund portfolio:
If you see closely, you will realize some of the high hyped mutual funds are not performing well. Hence, it is better to clear it out what is your motive behind the investment. Investors should assess their own profile first such as motivation behind choosing particular portfolio, risk bearing capacity, holding capacity, understanding of market scenario and the like.
Once you are ready with all the above, you can go ahead with the same. Millennials find it easy to learn through technical contents. And the most important part is one doesn’t require deep understanding or particular qualification to read and use modern AI based reports.
There is facility of Auto Recommendation. It is a software based technique where a as per investor’s budget and profile, system will suggest particular set of mutual fund bundle. This option has been becoming extremely popular. It does not matter whether one knows about technical aspect of the outcome or not but the system will suggest aspirant investors to AI Based portfolio for them.
And lastly, well trained managers are taking care of Millennials’ portfolio and they charge their pre-decided amount on the transaction. It is feasible for millennial and they are ready pay little portion of the returns they made through the same portfolio.
For you reference, we are putting a table of top performing mutual funds of March 2022. It is for reference purpose only and you are advised to cross check the data. We are not promoting company or stock here.
|Top Performing Mutual Funds of March 2022 (Source : Economic Time and other)
|Parag Parikh Long Term Equity Fund
|Axis Blue-chip Fund
|Mirae Asset Large Cap Fund
|Axis Midcap Fund
|Kotak Standard Multicap Fund
|Axis Small Cap Fund
|DSP Midcap Fund
|Mirae Asset Hybrid Equity Fund
|SBI Small Cap Fund
|SBI Equity Hybrid Fund