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Best Investment Plans in India 2026

Updated on June 18, 2026 , 23154 views

A Financial plan gives us an opportunity to save money for your future needs by Investing in financial instruments. There is no such thing as a good Investment plan or a bad investment plan. Each plan can be good or bad depending on how well you create your plan basis your needs.

You might choose a long-term plan for high returns or a short-term plan for gaining minimal returns, which mainly depends upon your goals. Therefore, it is important to create an investment plan wisely keeping in mind your Financial goals. We have listed some of the steps to create the best investment plan.

How to Create an Investment Plan?

Investment-Plan

1. Risk Assessment

One needs to understand his or her risk profile here for investing. Risk profile would depend on various factors such as:

  • Age
  • Cash flows (salary, recurring income etc.)
  • Dependents
  • Ability to tolerate the loss
  • Requirement of cash/money in the near term
  • There are basic questionnaires that take an individual through this process and ultimately give a number or a rating which give the risk rating of an individual. The risk rating could be like:
Risk Ratings
Aggressive
Moderately Aggressive
Moderate
Moderately Conservative
Conservative

Once you have your risk assessment or rating in place, the next step is to choose the Asset Allocation.

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2. Asset Allocation

Putting all your eggs in one basket is never a good idea, and hence one needs to diversify their holdings across asset classes (equity, debt, cash, commodities {Gold}). This asset allocation will ensure that various asset classes perform over time and give a good return on the overall Portfolio.

A sample asset allocation could be:

Aggressive Moderate Conservative
Annual return 16% 14% 11%
Annual standard deviation 15% 10% 6%
Debt 30% 50% 70%
Equity 60% 40% 20%
Commodity 10% 10% 10%
Total 100% 100% 100%

Given the risk that one can take, different allocations to equity are proposed. The higher the risk-taking ability more the allocation to equity. There are also various thumb rules like equity allocation to be 100 - (age of the person in years) and rest to be in debt.

Fund Selection Methodology used to find 5 funds

  • Category: Equity
  • Sub-category: Multi%20Cap, Large%20Cap, Large%20&%20Mid%20Cap, Mid%20Cap, Small%20Cap
  • Tags: fcpro
  • No Of Funds: 5

Best Mutual Funds for Aggressive Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)5 YR (%)2024 (%)Sub Cat.
DSP Equity Opportunities Fund Growth ₹619.289
↓ -0.63
₹17,3707.5-3.121713.77.1 Large & Mid Cap
Aditya Birla Sun Life Small Cap Fund Growth ₹94.4568
↑ 0.36
₹5,45320.511.412.217.114.2-3.7 Small Cap
Kotak Standard Multicap Fund Growth ₹85.028
↓ -0.11
₹54,8017.2-1.61.313.812.19.5 Multi Cap
Motilal Oswal Multicap 35 Fund Growth ₹58.6926
↑ 0.39
₹12,93712.1-3.9-1.818.412.3-5.6 Multi Cap
Invesco India Growth Opportunities Fund Growth ₹107.01
↑ 0.74
₹10,15318.85.810.423.518.14.7 Large & Mid Cap
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Jun 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryDSP Equity Opportunities FundAditya Birla Sun Life Small Cap FundKotak Standard Multicap FundMotilal Oswal Multicap 35 FundInvesco India Growth Opportunities Fund
Point 1Upper mid AUM (₹17,370 Cr).Bottom quartile AUM (₹5,453 Cr).Highest AUM (₹54,801 Cr).Lower mid AUM (₹12,937 Cr).Bottom quartile AUM (₹10,153 Cr).
Point 2Oldest track record among peers (26 yrs).Established history (19+ yrs).Established history (16+ yrs).Established history (12+ yrs).Established history (18+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.Risk profile: Moderately High.
Point 55Y return: 13.65% (lower mid).5Y return: 14.16% (upper mid).5Y return: 12.14% (bottom quartile).5Y return: 12.30% (bottom quartile).5Y return: 18.06% (top quartile).
Point 63Y return: 17.00% (bottom quartile).3Y return: 17.12% (lower mid).3Y return: 13.75% (bottom quartile).3Y return: 18.39% (upper mid).3Y return: 23.49% (top quartile).
Point 71Y return: 1.97% (lower mid).1Y return: 12.21% (top quartile).1Y return: 1.28% (bottom quartile).1Y return: -1.78% (bottom quartile).1Y return: 10.39% (upper mid).
Point 8Alpha: -4.38 (bottom quartile).Alpha: 0.00 (upper mid).Alpha: -0.62 (lower mid).Alpha: -5.87 (bottom quartile).Alpha: 2.71 (top quartile).
Point 9Sharpe: -0.33 (bottom quartile).Sharpe: 0.23 (top quartile).Sharpe: -0.24 (lower mid).Sharpe: -0.52 (bottom quartile).Sharpe: 0.07 (upper mid).
Point 10Information ratio: 0.03 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: -0.05 (bottom quartile).Information ratio: 0.47 (upper mid).Information ratio: 0.87 (top quartile).

DSP Equity Opportunities Fund

  • Upper mid AUM (₹17,370 Cr).
  • Oldest track record among peers (26 yrs).
  • Top rated.
  • Risk profile: Moderately High.
  • 5Y return: 13.65% (lower mid).
  • 3Y return: 17.00% (bottom quartile).
  • 1Y return: 1.97% (lower mid).
  • Alpha: -4.38 (bottom quartile).
  • Sharpe: -0.33 (bottom quartile).
  • Information ratio: 0.03 (lower mid).

Aditya Birla Sun Life Small Cap Fund

  • Bottom quartile AUM (₹5,453 Cr).
  • Established history (19+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderately High.
  • 5Y return: 14.16% (upper mid).
  • 3Y return: 17.12% (lower mid).
  • 1Y return: 12.21% (top quartile).
  • Alpha: 0.00 (upper mid).
  • Sharpe: 0.23 (top quartile).
  • Information ratio: 0.00 (bottom quartile).

Kotak Standard Multicap Fund

  • Highest AUM (₹54,801 Cr).
  • Established history (16+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately High.
  • 5Y return: 12.14% (bottom quartile).
  • 3Y return: 13.75% (bottom quartile).
  • 1Y return: 1.28% (bottom quartile).
  • Alpha: -0.62 (lower mid).
  • Sharpe: -0.24 (lower mid).
  • Information ratio: -0.05 (bottom quartile).

Motilal Oswal Multicap 35 Fund

  • Lower mid AUM (₹12,937 Cr).
  • Established history (12+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 12.30% (bottom quartile).
  • 3Y return: 18.39% (upper mid).
  • 1Y return: -1.78% (bottom quartile).
  • Alpha: -5.87 (bottom quartile).
  • Sharpe: -0.52 (bottom quartile).
  • Information ratio: 0.47 (upper mid).

Invesco India Growth Opportunities Fund

  • Bottom quartile AUM (₹10,153 Cr).
  • Established history (18+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately High.
  • 5Y return: 18.06% (top quartile).
  • 3Y return: 23.49% (top quartile).
  • 1Y return: 10.39% (upper mid).
  • Alpha: 2.71 (top quartile).
  • Sharpe: 0.07 (upper mid).
  • Information ratio: 0.87 (top quartile).

Best Mutual Funds for Moderately Aggressive Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
Aditya Birla Sun Life Medium Term Plan Growth ₹43.1565
↑ 0.00
₹3,12724.98.29.710.98.49%2Y 10M 6D3Y 10M 10D Medium term Bond
Nippon India Strategic Debt Fund Growth ₹16.6669
↑ 0.00
₹1461.62.97.87.89.68.08%3Y 1M 2D4Y 6M 14D Medium term Bond
Axis Strategic Bond Fund Growth ₹29.7297
↑ 0.00
₹2,0671.8367.68.28.39%3Y 22D4Y 6M 11D Medium term Bond
UTI Gilt Fund Growth ₹65.3425
↓ -0.01
₹5441.73.14.36.65.16.4%3Y 2M 16D7Y 11M 19D Government Bond
ICICI Prudential Gilt Fund Growth ₹106.754
↓ -0.02
₹8,6081.523.56.96.87.71%9Y 4M 10D21Y 7M 6D Government Bond
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Jun 26

Research Highlights & Commentary of 5 Funds showcased

CommentaryAditya Birla Sun Life Medium Term PlanNippon India Strategic Debt FundAxis Strategic Bond FundUTI Gilt FundICICI Prudential Gilt Fund
Point 1Upper mid AUM (₹3,127 Cr).Bottom quartile AUM (₹146 Cr).Lower mid AUM (₹2,067 Cr).Bottom quartile AUM (₹544 Cr).Highest AUM (₹8,608 Cr).
Point 2Established history (17+ yrs).Established history (11+ yrs).Established history (14+ yrs).Established history (24+ yrs).Oldest track record among peers (26 yrs).
Point 3Top rated.Rating: 4★ (upper mid).Rating: 4★ (lower mid).Rating: 4★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderate.
Point 51Y return: 8.23% (top quartile).1Y return: 7.78% (upper mid).1Y return: 6.03% (lower mid).1Y return: 4.29% (bottom quartile).1Y return: 3.49% (bottom quartile).
Point 61M return: 1.66% (upper mid).1M return: 1.60% (bottom quartile).1M return: 1.64% (lower mid).1M return: 0.98% (bottom quartile).1M return: 2.31% (top quartile).
Point 7Sharpe: 0.70 (top quartile).Sharpe: 0.21 (upper mid).Sharpe: -0.59 (lower mid).Sharpe: -0.91 (bottom quartile).Sharpe: -1.15 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 8.49% (top quartile).Yield to maturity (debt): 8.08% (lower mid).Yield to maturity (debt): 8.39% (upper mid).Yield to maturity (debt): 6.40% (bottom quartile).Yield to maturity (debt): 7.71% (bottom quartile).
Point 10Modified duration: 2.85 yrs (top quartile).Modified duration: 3.09 yrs (lower mid).Modified duration: 3.06 yrs (upper mid).Modified duration: 3.21 yrs (bottom quartile).Modified duration: 9.36 yrs (bottom quartile).

Aditya Birla Sun Life Medium Term Plan

  • Upper mid AUM (₹3,127 Cr).
  • Established history (17+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 8.23% (top quartile).
  • 1M return: 1.66% (upper mid).
  • Sharpe: 0.70 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 8.49% (top quartile).
  • Modified duration: 2.85 yrs (top quartile).

Nippon India Strategic Debt Fund

  • Bottom quartile AUM (₹146 Cr).
  • Established history (11+ yrs).
  • Rating: 4★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 7.78% (upper mid).
  • 1M return: 1.60% (bottom quartile).
  • Sharpe: 0.21 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 8.08% (lower mid).
  • Modified duration: 3.09 yrs (lower mid).

Axis Strategic Bond Fund

  • Lower mid AUM (₹2,067 Cr).
  • Established history (14+ yrs).
  • Rating: 4★ (lower mid).
  • Risk profile: Moderate.
  • 1Y return: 6.03% (lower mid).
  • 1M return: 1.64% (lower mid).
  • Sharpe: -0.59 (lower mid).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 8.39% (upper mid).
  • Modified duration: 3.06 yrs (upper mid).

UTI Gilt Fund

  • Bottom quartile AUM (₹544 Cr).
  • Established history (24+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 4.29% (bottom quartile).
  • 1M return: 0.98% (bottom quartile).
  • Sharpe: -0.91 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.40% (bottom quartile).
  • Modified duration: 3.21 yrs (bottom quartile).

ICICI Prudential Gilt Fund

  • Highest AUM (₹8,608 Cr).
  • Oldest track record among peers (26 yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Moderate.
  • 1Y return: 3.49% (bottom quartile).
  • 1M return: 2.31% (top quartile).
  • Sharpe: -1.15 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.71% (bottom quartile).
  • Modified duration: 9.36 yrs (bottom quartile).

Best Mutual Funds for Moderately Conservative Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
PGIM India Short Maturity Fund Growth ₹39.3202
↓ 0.00
₹281.23.16.14.2 7.18%1Y 7M 28D1Y 11M 1D Short term Bond
UTI Banking & PSU Debt Fund Growth ₹23.1598
↑ 0.00
₹1,2271.52.65.46.97.87.69%9M 14D10M 2D Banking & PSU Debt
HDFC Banking and PSU Debt Fund Growth ₹24.1592
↑ 0.00
₹5,2151.62.44.76.97.57.78%3Y 7D4Y 1M 2D Banking & PSU Debt
Aditya Birla Sun Life Corporate Bond Fund Growth ₹118.239
↓ 0.00
₹24,3901.42.34.57.17.47.72%3Y 11M 8D6Y 6M 29D Corporate Bond
HDFC Corporate Bond Fund Growth ₹34.0616
↑ 0.00
₹31,0671.52.24.47.17.37.79%4Y 18D6Y 11M 12D Corporate Bond
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 23

Research Highlights & Commentary of 5 Funds showcased

Commentary PGIM India Short Maturity FundUTI Banking & PSU Debt FundHDFC Banking and PSU Debt FundAditya Birla Sun Life Corporate Bond FundHDFC Corporate Bond Fund
Point 1Bottom quartile AUM (₹28 Cr).Bottom quartile AUM (₹1,227 Cr).Lower mid AUM (₹5,215 Cr).Upper mid AUM (₹24,390 Cr).Highest AUM (₹31,067 Cr).
Point 2Established history (23+ yrs).Established history (12+ yrs).Established history (12+ yrs).Oldest track record among peers (29 yrs).Established history (15+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 5★ (bottom quartile).
Point 4Risk profile: Moderate.Risk profile: Moderate.Risk profile: Moderately Low.Risk profile: Moderately Low.Risk profile: Moderately Low.
Point 51Y return: 6.08% (top quartile).1Y return: 5.36% (upper mid).1Y return: 4.74% (lower mid).1Y return: 4.54% (bottom quartile).1Y return: 4.40% (bottom quartile).
Point 61M return: 0.43% (bottom quartile).1M return: 0.81% (bottom quartile).1M return: 1.77% (lower mid).1M return: 1.78% (upper mid).1M return: 1.86% (top quartile).
Point 7Sharpe: -0.98 (top quartile).Sharpe: -1.01 (upper mid).Sharpe: -1.58 (bottom quartile).Sharpe: -1.30 (lower mid).Sharpe: -1.52 (bottom quartile).
Point 8Information ratio: 0.00 (top quartile).Information ratio: 0.00 (upper mid).Information ratio: 0.00 (lower mid).Information ratio: 0.00 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 7.18% (bottom quartile).Yield to maturity (debt): 7.69% (bottom quartile).Yield to maturity (debt): 7.78% (upper mid).Yield to maturity (debt): 7.72% (lower mid).Yield to maturity (debt): 7.79% (top quartile).
Point 10Modified duration: 1.66 yrs (upper mid).Modified duration: 0.79 yrs (top quartile).Modified duration: 3.02 yrs (lower mid).Modified duration: 3.94 yrs (bottom quartile).Modified duration: 4.05 yrs (bottom quartile).

PGIM India Short Maturity Fund

  • Bottom quartile AUM (₹28 Cr).
  • Established history (23+ yrs).
  • Top rated.
  • Risk profile: Moderate.
  • 1Y return: 6.08% (top quartile).
  • 1M return: 0.43% (bottom quartile).
  • Sharpe: -0.98 (top quartile).
  • Information ratio: 0.00 (top quartile).
  • Yield to maturity (debt): 7.18% (bottom quartile).
  • Modified duration: 1.66 yrs (upper mid).

UTI Banking & PSU Debt Fund

  • Bottom quartile AUM (₹1,227 Cr).
  • Established history (12+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Moderate.
  • 1Y return: 5.36% (upper mid).
  • 1M return: 0.81% (bottom quartile).
  • Sharpe: -1.01 (upper mid).
  • Information ratio: 0.00 (upper mid).
  • Yield to maturity (debt): 7.69% (bottom quartile).
  • Modified duration: 0.79 yrs (top quartile).

HDFC Banking and PSU Debt Fund

  • Lower mid AUM (₹5,215 Cr).
  • Established history (12+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 4.74% (lower mid).
  • 1M return: 1.77% (lower mid).
  • Sharpe: -1.58 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.78% (upper mid).
  • Modified duration: 3.02 yrs (lower mid).

Aditya Birla Sun Life Corporate Bond Fund

  • Upper mid AUM (₹24,390 Cr).
  • Oldest track record among peers (29 yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 4.54% (bottom quartile).
  • 1M return: 1.78% (upper mid).
  • Sharpe: -1.30 (lower mid).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.72% (lower mid).
  • Modified duration: 3.94 yrs (bottom quartile).

HDFC Corporate Bond Fund

  • Highest AUM (₹31,067 Cr).
  • Established history (15+ yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Moderately Low.
  • 1Y return: 4.40% (bottom quartile).
  • 1M return: 1.86% (top quartile).
  • Sharpe: -1.52 (bottom quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 7.79% (top quartile).
  • Modified duration: 4.05 yrs (bottom quartile).

Best Mutual Funds for Conservative Investors

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. MaturitySub Cat.
PGIM India Insta Cash Fund Growth ₹360.551
↑ 0.06
₹6121.83.36.26.96.56.57%1M 10D1M 10D Liquid Fund
Indiabulls Liquid Fund Growth ₹2,677.78
↑ 0.39
₹2621.83.36.26.96.66.13%1M 1D1M 1D Liquid Fund
Aditya Birla Sun Life Savings Fund Growth ₹581.802
↑ 0.10
₹19,6111.636.27.27.47.98%5M 16D6M 25D Ultrashort Bond
JM Liquid Fund Growth ₹75.4704
↑ 0.01
₹2,1471.73.26.16.86.46.43%26D27D Liquid Fund
Axis Liquid Fund Growth ₹3,084.94
↑ 0.50
₹56,1681.83.36.36.96.66.23%1M 5D1M 5D Liquid Fund
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Jun 26

Research Highlights & Commentary of 5 Funds showcased

Commentary PGIM India Insta Cash FundIndiabulls Liquid FundAditya Birla Sun Life Savings FundJM Liquid FundAxis Liquid Fund
Point 1Bottom quartile AUM (₹612 Cr).Bottom quartile AUM (₹262 Cr).Upper mid AUM (₹19,611 Cr).Lower mid AUM (₹2,147 Cr).Highest AUM (₹56,168 Cr).
Point 2Established history (18+ yrs).Established history (14+ yrs).Established history (23+ yrs).Oldest track record among peers (28 yrs).Established history (16+ yrs).
Point 3Top rated.Rating: 5★ (upper mid).Rating: 5★ (lower mid).Rating: 5★ (bottom quartile).Rating: 4★ (bottom quartile).
Point 4Risk profile: Low.Risk profile: Low.Risk profile: Moderately Low.Risk profile: Low.Risk profile: Low.
Point 51Y return: 6.25% (upper mid).1Y return: 6.22% (lower mid).1Y return: 6.20% (bottom quartile).1Y return: 6.11% (bottom quartile).1Y return: 6.29% (top quartile).
Point 61M return: 0.63% (lower mid).1M return: 0.61% (bottom quartile).1M return: 0.70% (top quartile).1M return: 0.61% (bottom quartile).1M return: 0.63% (upper mid).
Point 7Sharpe: 2.23 (lower mid).Sharpe: 2.32 (upper mid).Sharpe: 0.52 (bottom quartile).Sharpe: 1.80 (bottom quartile).Sharpe: 2.39 (top quartile).
Point 8Information ratio: 0.62 (upper mid).Information ratio: 0.76 (top quartile).Information ratio: 0.00 (lower mid).Information ratio: -0.49 (bottom quartile).Information ratio: 0.00 (bottom quartile).
Point 9Yield to maturity (debt): 6.57% (upper mid).Yield to maturity (debt): 6.13% (bottom quartile).Yield to maturity (debt): 7.98% (top quartile).Yield to maturity (debt): 6.43% (lower mid).Yield to maturity (debt): 6.23% (bottom quartile).
Point 10Modified duration: 0.11 yrs (bottom quartile).Modified duration: 0.09 yrs (upper mid).Modified duration: 0.46 yrs (bottom quartile).Modified duration: 0.07 yrs (top quartile).Modified duration: 0.10 yrs (lower mid).

PGIM India Insta Cash Fund

  • Bottom quartile AUM (₹612 Cr).
  • Established history (18+ yrs).
  • Top rated.
  • Risk profile: Low.
  • 1Y return: 6.25% (upper mid).
  • 1M return: 0.63% (lower mid).
  • Sharpe: 2.23 (lower mid).
  • Information ratio: 0.62 (upper mid).
  • Yield to maturity (debt): 6.57% (upper mid).
  • Modified duration: 0.11 yrs (bottom quartile).

Indiabulls Liquid Fund

  • Bottom quartile AUM (₹262 Cr).
  • Established history (14+ yrs).
  • Rating: 5★ (upper mid).
  • Risk profile: Low.
  • 1Y return: 6.22% (lower mid).
  • 1M return: 0.61% (bottom quartile).
  • Sharpe: 2.32 (upper mid).
  • Information ratio: 0.76 (top quartile).
  • Yield to maturity (debt): 6.13% (bottom quartile).
  • Modified duration: 0.09 yrs (upper mid).

Aditya Birla Sun Life Savings Fund

  • Upper mid AUM (₹19,611 Cr).
  • Established history (23+ yrs).
  • Rating: 5★ (lower mid).
  • Risk profile: Moderately Low.
  • 1Y return: 6.20% (bottom quartile).
  • 1M return: 0.70% (top quartile).
  • Sharpe: 0.52 (bottom quartile).
  • Information ratio: 0.00 (lower mid).
  • Yield to maturity (debt): 7.98% (top quartile).
  • Modified duration: 0.46 yrs (bottom quartile).

JM Liquid Fund

  • Lower mid AUM (₹2,147 Cr).
  • Oldest track record among peers (28 yrs).
  • Rating: 5★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.11% (bottom quartile).
  • 1M return: 0.61% (bottom quartile).
  • Sharpe: 1.80 (bottom quartile).
  • Information ratio: -0.49 (bottom quartile).
  • Yield to maturity (debt): 6.43% (lower mid).
  • Modified duration: 0.07 yrs (top quartile).

Axis Liquid Fund

  • Highest AUM (₹56,168 Cr).
  • Established history (16+ yrs).
  • Rating: 4★ (bottom quartile).
  • Risk profile: Low.
  • 1Y return: 6.29% (top quartile).
  • 1M return: 0.63% (upper mid).
  • Sharpe: 2.39 (top quartile).
  • Information ratio: 0.00 (bottom quartile).
  • Yield to maturity (debt): 6.23% (bottom quartile).
  • Modified duration: 0.10 yrs (lower mid).

The above can be used as a guidance given the type of investor one is. The proposed asset allocation also gives a projection as to the expected annual return per annum and the expected variation in returns (annual standard deviation).

3. Product Selection

Let’s, for example, take the individual here is aggressive and hence the equity allocation to be 60%. So proposed investment allocations would be (for an investment of 10 lakhs):

Equity (60%) = 6 lakhs

Debt (30%) = 3 lakhs

Gold (10%) = 1 lakh

One should try and do some research to get a good scheme. Various rating agencies like CRISIL, Value research, Morningstar etc. provide funds ratings. Using these ratings and getting some top performing funds would ensure that we try and select good performing funds into the portfolio.

In the example,

  • For equity one can choose a mix of large-cap and mid-cap
  • Debt can be spread into a mix of long term and short term
  • For gold, one can use gold ETF based Mutual Funds

4. Monitoring & Re-Balancing of Mutual Funds

Monitoring your investment is a critical step and one should review the portfolio at least once a quarter and rebalance at least once a year. Also, looking at scheme performance is also important and if there are performance issues one should replace the scheme with a better performing one (also taking into account the tax considerations).

How to Invest in Mutual Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

These are the basic steps to create an investment plan for any sum of money. Hope this gives some direction to create an investment plan for a secured future. Happy investing!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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