The economy is out of the woods and the stock market is up, though a bit volatile. Even Warren Buffett is coming to India to scout for investment avenues. However, most investors are still missing out on opportunities on the Street. Stocks seem to be too risky, more so after the recent Greek hiccup. On the other hand, the real returns from fixed instruments are very low, given the high inflation. Thankfully, there is a middle path to profits, mutual funds. They are one of the most versatile financial instruments and allow you to be aggressive, play safe or opt for regular income.
Unfortunately, most Indian investors have not warmed up to them. According to a recent survey, 80 per cent of the people who save more than 20 per cent of their incomes do not invest in mutual funds. This is partly due to lack of awareness, but recent developments have also played spoilsport. For instance, after the removal of entry loads, agents do not want to sell them. In fact, the head of a wealth management firm says that around 10,000 Amfi agent registrations have not been renewed in 2010. This is why our annual ranking of mutual funds becomes more important this year-it will help you choose the right funds.
Our set of best funds across categories is a good starting point for beginners. For those who understand the market and know how to select a mutual fund, the tables across 15 pages will prove a useful guide. You can also learn about the strategies of top fund managers and emulate them. If you need a reference point to compare the performance of your funds, don't miss the story on consistent performers. In fact, investing in mutual funds is not enough. As our story reveals, almost Rs 7,000 crore of investor money is lying in schemes that have consistently underperformed over the years. Make sure you don't have any of these.
Rakesh Rai, Deputy Editor
