The best mutual fund to invest Rs 15 lakh?

"What's the best mutual fund to invest in right now?" If we had a rupee for every time we've been asked this, we'd have... well, probably Rs 15 lakh. This is easily one of the most frequent questions investors throw at us — over email, at events or on social media. Unfortunately, though, there's a problem. The answer's not as exciting because they're asking the wrong question. The myth of "best" When someone asks for the best mutual fund, they usually mean: "Which fund will give me the highest return — safely, quickly and preferably without dropping even a rupee in value?" We wish it worked that way. In reality, what's "best" is deeply personal. And fleeting. For instance, small-cap funds delivered an annualised growth of around 22 per cent from April 2019 to March 2024. Sounds like a winner, until you remember that in March 2020, the category plunged over 30 per cent. At that point, many investors would have cursed the same small-cap fund universe. Why one person's best is another's disaster Your neighbour might have a 15-year horizon and the nerves of a mountain goat. You might need the money in three to four years, and lose sleep if your fund falls 10 per cent. Just like this, every investor has a different time horizon and risk profile. That's why there is no universal best. There's only what's best for you based on a) your goals, b) your timeframe and c) your risk appetite. So, what's the better question? Instead of asking "Which is the best fund f

This article was originally published on May 22, 2025.