10 Top Mutual Funds

When looking at what are the top ten mutual funds to invest in you will find many sources to give you information, magazines, media shows and of course the internet flood the often already confused investor with lists, facts and figures. You will, no doubt, when you research come to two probable conclusions about what the best mutual funds of the past decade have been. The first are the funds that are charged lower-than-average expense and the second are the ones with the longest-tenured managers.

Outlook Money is only one such group providing financial advice and provides a list of what they consider to be 10 diversified equity schemes that they suggest should be part of a core portfolio. When producing their lists they consider the diversified equity schemes that have a two year track record and then researched their risk-adjusted return (RAR). Using one-year rolling returns they divide the return by downside risk (possibility of scheme giving negative returns) and came up with their RAR.

Outlook left out sectoral schemes because of high risk factors and also thematic funds that work better when part of a satellite portfolio investment. They also looked at a set of qualitive parameters and where schemes with frequent fund management changes took place these two were avoided. Excessive fund house concentration was also avoided by Outlook Money when making their choices.

Outlook Money states: "Our schemes are not necessarily the 10 best performing schemes in the past year. Our focus is to give the 10 schemes that we think will perform well in the next two to three years, using a healthy mix of numbers and qualitative parameters."

It is recommended by most market fund managers that although you do not need to own all of the funds that are considered top 10 performers you should invest in as many as comfortably fit into your investing income. They should be monitored on regular basis to see how their performance is meeting your expectations.

Note: There are many sources of financial advice and stock market analysis and this is not an endorsement of Outlook Money just an example how funds are often picked to be top 10 mutuals.