We all know that equity mutual funds are not supposed to give secured returns. If you invest a lump sum amount in any equity mutual fund and need the money suddenly you may lose a certain amount of your capital due to market fluctuations. But how about an idea if we generate 100% guaranteed returns from top-performing mutual funds?
My Experience With Safe Investments
My research on safe investments started way back in 2005 when I was working in the insurance sector. A guy named Sougata was regularly visiting my office. He was an ARN holder and he insisted I invest in mutual funds through SIP. I started a few SIPs, but one of my colleagues, Kallol, invested a lump sum of Rs. 2 lacs in Reliance Growth Fund, which had just been launched.
But immediately after a few days of our investment, a sharp correction took over the stock markets. I continued SIPs, but Kallol’s portfolio was in dire straits. His investment value came down by almost 25% within a few months of investment. This was not because the fund was wrong, as it had given 23.82% returns since inception. This was because Kallol invested in the right fund at the wrong time.
The Idea Behind 100% Guaranteed Returns
Kallol started panicking, but I was safe as I was investing in SIPs in both up and down markets, and my portfolio value was an average of both. So I thought about an idea where your investment becomes safe, and you get the benefit of top-performing mutual funds.
How To Get 100% Guaranteed Returns from Good Mutual Funds?
Here’s how you can achieve 100% guaranteed returns:
Step 1: Invest Your Money In A Fixed Deposit
Invest your money lump sum in an FD.
Step 2: Take Regular Interest
Take regular interest and choose either monthly or quarterly interest pay-out.
Step 3: Invest The Interest In Top Performing Equity Mutual Funds
Invest the interest in a good equity mutual fund through monthly or quarterly SIP.
FAQs on Top-Performing Mutual Funds
You can check the top-performing mutual funds in our MF dashboard. On this page, you will get a regularly updated list of top-performing funds on various parameters.
The highest returning mutual fund goes to Aditya Birla Sun Life Frontline Equity Mutual Funds which has been able to generate an annualized return of 33.6%. While this has been its best performance for FY 2020-21 it shall not be taken as typical performance in future investments.
The most suitable MFs for a Systematic Investment Plan (SIP) depend largely on the goals that you wish to achieve with your investment plan, how much risk you are willing to take with your capital, and what market conditions exist at present. We suggest having a conversation about your financial needs with the fund house’s customer relations team or obtaining independent expert advice before investing in any particular MF via SIP.
Once again it will depend upon your specific criteria but overall one can say that Axis Long Term equity fund since 2010 has consistently outperformed its benchmark index across 3-year, 5 years & 10 years time frames making it amongst other leading conservative performers when compared against peers within the same category.
Conclusion
In this strategy, your actual fund will remain 100% secured as it is invested in FD. You are withdrawing monthly interest that is invested in mutual funds through SIP. This mutual fund investment will create another fund safely in the long term. I hope this strategy will help you achieve your investment goals. If you have any questions or comments, please leave them below.
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