Financial product distributors play a key role in selling mutual funds to investors. Business Standard spoke to select distributors about their top five recommendations this month with reasons for suggesting the same.
Hemant Rustagi, CEO at Wiseinvest Advisors:
Before recommending the schemes, my advice would be to do a mix of one-time investment as well as a systematic transfer plan (STP), whereby a fixed sum is transferred to an equity fund from say a floating rate fund, regularly.
The ratio could be 50:50. Even though the market looks good from the long-term view, it may not be prudent to try to time the market with the entire sum.
Our recommendations are:
These schemes offer a well-diversified portfolio across industries and have been consistent performers. Besides, by constructing a portfolio with the help of these schemes, one can get a very balanced exposure to large and mid-cap companies, a must for a long-term investor.
I also recommend that investors should opt for dividend payout option as that would ensure automatic booking of profits periodically.
J Rajagopalan, managing director at Bluechip Corporate Investments:
Smita Vermani, assistant V-P at IDBI Capital Market Services:
We hold a positive outlook on the equity market on a medium to long term. However, short-term volatilities cannot be ruled out and, hence, the best way to invest in equity is through SIPs. We have shortlisted five schemes with a decent 'history' of performance.
Our recommended funds:
Rajendra Naik, managing director at Centrumdirect:
Analysis of historic returns show that mid-cap funds have always outperformed large-cap funds in delivering returns. Investor should discount short-term volatility and market corrections. Instead, he should look at investing for the long term and expect annualised returns in the range of 15-20 per cent.
Going forward, our pick for investments are in the following schemes:
