Any financial investment a person is doing, he/she should begin keeping in mind these basic needs which am going to tell from my 10 years of experience. First the goal needs to be set in mind, like how much money does a individual want to make for his future needs. Secondly, how much money is he willing to invest accorrding to his comfortable zone of investing (taking SIP for example). Third how much is his risk appetite. Can he take high risk or he is comfortable with low risk.
Coming to the question, which mutual fund is best. It depends on your own life style, there are many types of mutual funds small cap, mid cap, large cap, flexi cap, focused equity funds, balanced advantage funds. These are all categorized according to risk appetite of an individual. Small cap have risk on higher side while large caps on lower side, but the reward on small caps is higher than large cap funds. Flexi cap mutual funds invest your money on small, mid and large caps, balance advantage funds have risk on very lower side as they can put your money on equity as well as debt bonds. Sectoral mutual fund or focused equity funds are for aggressive investors for gaining higher returns, but if the specific sector falls then the individual may face high negative growth.
Experts can guide you but ultimately you are the manager of your own financial investment. According to this financial year Parag Parikh Flexi cap mutual funds is best performing and being an flexi cap the risk is somewhat balanced.
Always remember to diversify your mutual fund portfolio, never invest huge amount of money on a single mutual fund.
