Anil Singhvi shares ideas on which mutual funds to buy, recommends a minimum five-year horizon
Zee Business Managing Editor Anil Singhvi believes mutual funds are an effective way to create wealth, for investors who prefer investing in the market indirectly. The market wizard has identified eight mutual funds that investors may part their money in with a minimum horizon of five years. Here is the full list of Anil Singhvi's recommendations.
Zee Business Managing Editor Anil Singhvi believes mutual funds are an effective way to create wealth, for investors looking to tap the market indirectly. It is a tool that can help investors generate wealth for the long term if used wisely. Although Singhvi is of the view that investors can use any average mutual fund to create wealth — be it an equity-based or a debt-based mutual fund, the market wizard has identified eight mutual funds that he likes, four from each side.
His top mutual fund picks include four each from the equity and debt spaces, with an investment horizon of a minimum five years.
Singhvi has four picks each from the equity- and debt-based mutual fund segments, though he is of the view one can use any average fund to create wealth:
Anil Singhvi's favourite equity mutual funds
- ICICI Prudential Large & Mid Cap Fund
- HDFC Flexi Cap Fund
- Franklin India Flexi Cap Fund
- DSP Small Cap Fund
"In the equity mutual fund space, it doesn't make a big difference basis which fund you really pick to make money. Investors can pick any average fund to make money," he said.
Anil Singhvi's equity MF picks cover all three segments — large-cap, mid-cap and small-cap, with the midcap segment covered within the flexi-cap universe.
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Anil Singhvi's favourite debt mutual funds
- HDFC Corporate Bond Fund
- Aditya Birla Sun Life (ABSL) Corporate Bond Fund
- ICICI Prudential Credit Risk Fund
- Franklin India Dynamic Accrual Fund
Meanwhile, Anil Singhvi has shared five long-term stock picks for investors to create wealth: DLF, United Spirits, Larsen & Toubro, Tata Motors and HDFC Bank. Read more on Anil Singhvi's wealth creation recommendations
What is the difference between a debt fund and an equity fund?
All mutual funds are not the same. A main classification among mutual funds is on the basis of where the fund invests its money, whether it is stocks or bonds.
There are also hybrid funds that invest in a mix of equities and bonds.
What is the difference between large-cap, small-cap and flexi-cap mutual funds?
Mutual funds are also categorised basis different market segments. A small-cap fund, as the name suggests, invests in equities from the small-cap segment, and a large-cap one, similarly, invests in large-cap equities.
A flexi-cap mutual fund, however, investors across stocks of all sizes of market capitalisation.
What is a hybrid mutual fund?
Money put in a hybrid mutual fund goes into more than one asset class. Simply put, flexi funds invest money in a mix of stocks, equities and other asset classes. These mutual funds are typically preferred by investors looking to diversify their portfolios through the mutual fund route.
In fact, a flexi-cap fund allows the freedom to put money across different equity segments. A multi-cap fund also provides the same flexibility, but with a slight difference: a fixed minimum allocation is mandatory in all the three segments.
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Singhvi often uses the real-life market scenario to simplify complex market concepts to viewers.
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