Best Investment Planning for 1 Year
Introduction
Best Investment Planning for 1 Year When it comes to investing for a short-term horizon, such as one year, choosing the right mutual funds can be a game-changer. The key is to find funds that align with your financial goals, risk tolerance, and the need for liquidity. In this blog, we’ll delve into the best mutual funds for one-year investments, offering an overview of their performance, benefits, and essential considerations.
Top Mutual Funds for 1-Year Investments
- HDFC Defiance Fund
– Manager: Abhishek Poddar
– AUM: ₹3,232.88 cr
– Expense Ratio: 0.74%
– PE Ratio: 60.47
– 1-Year Return: 141.66%
– CAGR: 140.61%
– Minimum SIP: ₹100
- SBI PSU Fund
– Manager: Rohit Shimpi
– AUM: ₹3,071.30 cr
– NAV: ₹35.714
– 1-Year Return: 102.45%
– CAGR: 100.55%
– Expense Ratio: 0.82%
– PE Ratio: 22.29
– Minimum SIP: ₹500
- Invesco India PSU Equity Fund
– Manager: Dhimant Kothari
– AUM: ₹1,137.59 cr
– NAV: ₹78.580
– 1-Year Return: 102.24%
– CAGR: 101.13%
– Expense Ratio: 0.93%
– PE Ratio: 33.32
– Minimum SIP: ₹500
- Aditya Birla SL PSU Equity Fund
– Manager: Dhaval Gala
– AUM: ₹4,711.18 cr
– NAV: ₹38.070
– 1-Year Return: 99.23%
– CAGR (3 Years): 41.21%
– Expense Ratio: 0.45%
– PE Ratio: 18.94
– Minimum SIP: ₹100
- Motilal Oswal S&P BSE Enhanced Value Index Fund
– Managers: Swapnil P. Mayekar, Rakesh Shetty
– AUM: ₹401.51 cr
– NAV: ₹25.053
– 1-Year Return: 95.07%
– CAGR (3 Years): 64.28%
– Expense Ratio: 0.38%
– PE Ratio: 14.80
– Minimum SIP: ₹500
- UTI Nifty 500 Value 50 Index Fund
– Manager: Sharwan Kumar Goyal
– AUM: ₹278.46 cr
– NAV: ₹19.959
– 1-Year Return: 93.74%
– CAGR (3 Years): 83.57%
– Expense Ratio: 0.57%
– PE Ratio: 17.64
– Minimum SIP: ₹500
- ICICI Pru PSU Equity Fund
– Managers: Mittul Kalawadia, Anand V Sharma
– AUM: ₹2,588.85 cr
– NAV: ₹21.590
– 1-Year Return: 89.59%
– CAGR (3 Years): 53.06%
– Expense Ratio: 0.63%
– PE Ratio: 17.07
– Minimum SIP: ₹100
- LIC MF Infra Fund
– Manager: Yogesh Patil
– AUM: ₹267.88 cr
– NAV: ₹54.716
– 1-Year Return: 87.51%
– CAGR (3 Years): 39.54%
– Expense Ratio: 1.45%
– PE Ratio: 60.76
– Minimum SIP: ₹1000
- Bandhan Infrastructure Fund
– Manager: Vishal Biraia
– AUM: ₹1,171.09 cr
– NAV: ₹61.459
– 1-Year Return: 86.87%
– CAGR (3 Years): 37.67%
– Expense Ratio: 0.97%
– PE Ratio: 51.65
– Minimum SIP: ₹100
- Invesco India Infrastructure Fund
– Manager: Amit Nigam
– AUM: ₹1,239.68 cr
– NAV: ₹79.360
– 1-Year Return: 85.14%
– CAGR (3 Years): 38.11%
– Expense Ratio: 0.79%
– PE Ratio: 57.15
– Minimum SIP: ₹500
Types of Mutual Funds for 1-Year Investments
- Best Investment Planning for 1 Year Liquid Funds: Ideal for parking funds for up to one year with minimal price risk.
- Ultra-Short Duration Funds: Invest in debt securities maturing in 3-6 months.
- Low-Duration Funds: Focus on securities maturing within 6-12 months.
- Money Market Funds: Invest in money market instruments maturing within a year.
- Floater Funds: Allocate at least 65% to floating-rate bonds, ideal during rising interest rates.
- Arbitrage Funds: Leverage price differentials in cash and derivatives markets.
How Do Mutual Funds for 1 Year Work?
Best Investment Planning for 1 Year Mutual funds for a one-year horizon pool funds from multiple investors to create a diversified portfolio, often consisting of fixed-income securities such as Treasury bills, short-term bonds, and money market instruments. The primary objectives include capital preservation and generating modest returns within a brief timeframe.
Benefits of Investing in Mutual Funds for 1 Year
– Reduced Volatility and Lower Risk: Short-term mutual funds generally experience less volatility and risk compared to longer-term investments.
– Liquidity in Emergencies: These funds ensure ready access to your money during financial emergencies.
– Stable Returns in a Short Timeframe: They offer relatively good and stable returns within a short period.
– Diversification Opportunities: Exposure to various debt and money market instruments helps spread risk.
How to Choose the Best Investment Plan for 1 Year?
– Assess Risk Tolerance: Align your risk tolerance with the chosen fund’s risk profile.
– Evaluate Expense Ratio: Prefer funds with lower expense ratios for short-term investments.
– Liquidity: Opt for funds with high liquidity to facilitate easy buying or selling of shares.
– Exit Loads: Consider any exit loads or fees associated with the mutual fund.
Conclusion
Investing in mutual funds for a one-year horizon can be a strategic move for those seeking short-term financial gains with moderate risk. Best Investment Planning for 1 Year By carefully selecting the right funds and aligning them with your financial goals, you can achieve a balanced and diversified portfolio that meets your short-term investment needs.
FAQs
- Are mutual funds safe for 1 year?
– Mutual funds can offer steady returns with minimal risk for one-year investments, balancing capital safety and liquidity.
- Where do the best investment plans for 1 year invest?
– They typically allocate funds to options prioritizing capital preservation and short-term liquidity.
- What are the returns on the best investment plan for 1 year?
– Returns vary based on market conditions and specific investments, but typically range from 4% to 6%.
- When should I invest in the best investment plan for 1 year?
– Consider investing when seeking a short-term financial strategy that aligns with your goals and risk tolerance.
- What is the lock-in period for the best investment plan for 1 year?
– These plans typically do not have a lock-in period, offering flexibility for withdrawals within the one-year timeframe.
Best Investment Planning for 1 Year For a diversified mutual funds portfolio, explore various options like Large Cap Mutual Funds, Small Cap Mutual Funds, Sectoral Mutual Funds, and more.
Invest wisely and consult with a financial advisor to tailor your investment strategy to your unique financial goals and risk tolerance.
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