We started with funds which have been operational for more than 10 years. Then we sorted them on basis of returns (CAGR). We then came up with a list of top 10 mutual fund schemes, which have given the highest returns in last 10 years.
We would take up the MF-Core-Satellite discussion in another post. For the time being, we leave you with few initial suggestions:
- Start with 2-3 Index Funds as the Core of your MF portfolio. (Why Index Funds?)
- Add smaller SIPs in 2-4 Non-Index funds (You may choose between large cap, mid cap, small cap or multi cap funds, depending on your risk appetite) as Satellitesof the Core.
- While CORE would provide stability to entire portfolio, SATELLITEs having comparatively riskier funds, would have potential for higher returns. Allocation between the two components would depend on investor’s risk appetite.
Note to Regular Investor – If you are familiar with SIPs and MFs, you might like to read an old post on How to boost your SIP Returns.