Here are IIFL's top mutual funds picks and portfolios

SUMMARY

An IIFL Securities report advises long term equity investors to look beyond two years from now. Equity investors are advised to take advantage of market volatility arising on account of US elections and invest in select fundamentally strong stocks with a long term perspective, it added. Investors with a low-risk appetite for direct equities are advised to continue to invest in equities through the mutual fund route. IIFL has listed its top equity, and debt mutual fund picks for the near term and also suggested three different mutual portfolio strategies for investors.

By Pranati Deva Nov 19, 2020 3:36:58 PM IST (Published)

Equity Mutual Funds: In this category, IIFL recommends Mirae Asset Large Cap Fund, IIFL-Focused Equity Fund, UTI Equity Fund, Axis Midcap Fund, and Nippon India Small Cap Fund. These funds have given a 5-year return of between 9-12 percent and a six-month return of 18-32.5 percent.

Debt Mutual Funds: IIFL recommends HDFC Ultra Short Term Fund, Kotak Low Duration Fund. IDFC Bond Fund- Short Term, Axis Banking & PSU Debt Fund, and ICICI Pru Corporate Bond Fund. All these funds have delivered returns between 6-11 percent in the last one year and have been positive on a 6-month as well as a 3-month basis.

Aggressive Model Portfolio: The objective of the strategy is to generate substantial wealth in the long run for investors from a portfolio of aggressive equity-oriented mutual funds. The strategy takes a concentrated position in mutual funds across different market-cap and sectors and endeavors to strategically change allocation between different market-cap and sectors depending on change in the business cycles.

Moderate Model Portfolio: The objective of the strategy is to generate long term capital appreciation for investors from a portfolio of equity-oriented mutual funds with moderate risk appetite, primarily to beat inflation without having too much volatility, IIFL noted.

Conservative Model Portfolio: The objective of the strategy is to generate long term capital appreciation for investors from a portfolio of equity and debt-oriented mutual funds primarily to avoid any potential loss and preserve capital.