A few trends in the mutual fund industry include the rapid growth of SIPs, increasing involvement of Gen Z in investment through online apps (resulting in a rise of Do-It-Yourself investors), and preference for high-risk products, according to Vishal Kapoor, chief executive officer of Bandhan AMC Ltd.
For beginners, starting to invest in the mutual fund space, he suggests hybrid products like multi-asset funds.
Prableen Bajpai, founder of FinFix Research and Analytics Pvt., recommends the multi-cap fund as the ideal category to begin an SIP.
For investors with a high risk appetite and a long-term investment horizon, she suggests considering the Nippon India Multi Cap Fund. Another category to consider is a passive strategy fund, such as the Nifty Mid Cap 150 Index Fund.
According to Bajpai, the key highlights of the Nippon India Multi Cap Fund are:
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Launched in 2015, Nippon India Multi Cap Fund is managed by Sailesh Raj Bhan and Ashutosh Bhargava.
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It invests across large, mid and small caps.
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It combines large-cap stability with mid and small-cap growth opportunities.
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The fund is suitable for high-risk investors, who have a time horizon of 6–7 years.
While talking about the Nifty Mid Cap 150 Index Fund, Bajpai lists the key highlights as follows:
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It is a passive fund that tracks the Nifty Midcap 150 index.
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The index covers the companies ranked from 101st to 250th on the Nifty 500.
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Only 4–5 funds have beaten the Nifty Midcap 150 index on a three-year rolling return basis.
In terms of the Bandhan Muti Asset Mutual Funds, Kapoor said, “The fund enables investors to stay invested for longer periods during market volatility.”