Best Mutual Fund for 3-4 Years: There are many types of mutual funds for investment.
You can divide mutual funds into different categories based on the underlying asset like equity, debt or gold, such as equity mutual funds, debt mutual funds and hybrid funds.
These funds have different risk appetites and different investment objectives. Hence, there is no such mutual fund which is best for all.
The risk can be less or more. The best mutual fund for you would be the one that best suits your investment objectives, risk appetite and investment horizon.
You can also have more than one goal. If your second goal is for the next three years (say, buying a car in the next three years), there may be better options than investing in equity funds.
Debt mutual funds, which are less volatile than equity funds, can help you achieve such a goal.
Here we will tell you which funds have given strong returns in the last 3 and 5 years.
There may be a possibility of giving good returns in the same period in the future, but it is optional that any scheme will repeat its performance.
Tata Digital India Fund Direct-Growth
Tata Digital India Fund Direct-Growth has been a great scheme.
It has given investors an annual return of 29.05 per cent in the last three years. Similarly, in 5 years, the scheme has given an annual return of 24.74%.
Quant Small Cap Fund Direct Plan-Growth
Quant Small Cap Fund Direct Plan-Growth has been a very good scheme.
It has given investors a 56.34 per cent annual return in the last three years. Similarly, in 5 years, the scheme has given an annual return of 24.51%.
ICICI Prudential Technology Direct Plan-Growth
ICICI Prudential Technology Direct Plan-Growth has also been a very strong profit-making scheme.
It has given investors an annual return of 32.81 per cent in the last three years. Similarly, in 5 years, the scheme has given an annual return of 24.28%.
SBI Technology Opportunities Fund Direct-Growth
SBI Technology Opportunities Fund Direct-Growth has also been a great scheme.
It has given investors an annual return of 28.44 per cent in the last three years. Similarly, in 5 years, the scheme has given an annual return of 23.69%.
Aditya Birla Sun Life Digital India Fund Direct-Growth
Aditya Birla Sun Life Digital India Fund Direct-Growth has also been a very good scheme.
It has given investors a 29.75 per cent annual return in the last three years. Similarly, the scheme has given an annual return of 22.89% in 5 years.
Explain that small-cap funds have a higher risk than large-cap funds because large-cap funds invest mainly in large companies in strong financial conditions.
Large companies are better able to weather the downturns of the business cycle than small-cap companies.
