Mutual Funds

Funds to grow wealth

Diversified funds suitable to form the core of any long-term growth portfolio

Equity-linked savings schemes, or ELSS as they are popularly known, are the most suitable alternative to build wealth while saving taxes under Section 80C. But you should consider investing these funds only if you don't need to redeem your money for at least the next five years. Over this timeframe, you can expect gains that comfortably beat the rate of inflation and the returns offered by fixed income options.But be prepared for ups and downs in your investment value along the way. The table below lists ELSS funds rated four or five star by Value Research.

Funds to get regular income

We believe that regular income seekers should invest some portion of their money, roughly a third,in equity and the rest in fixed income or equivalent. One can create such an asset allocation by combining equity and debt funds.But for those looking for convenience can opt for equity savings funds which invest about a third each in equity, equity arbitrage and debt. To derive dependable, inflation-protected income, invest your accumulated savings in a couple of good equity savings funds and maintain a withdrawal rate in the range of 4-6% of the value of your investment every year. Below is the list of equity savings funds rated four or five star by Value Research.