Best mutual funds: As investors, you would be wondering how to make as much money as possible from the funds available to you through your income and savings. Letting this saved wealth lie idle would be wrong as would be not maintaining proper money discipline. Your bid to make money boils down to simple facts - invest in the best mutual funds possible and maintain an investment portfolio that is free of clutter and is good enough for you to achieve your financial goals. To help you in your bid to make money, Zee Business' financial expert Alok Agrawala has some very useful tips.

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Some of the questions that you would be dealing with on a regular basis could be as to how many funds you should be keeping in your portfolio? How to diversify the portfolio? What is the difference between diversification and over-diversification? How many funds should be there for the purpose of tax benefits? When is the right time to review your portfolio and when to stop a fund or withdraw funds etc?

The size of a portfolio depends upon person to person. Your financial goals and the fund allocation that you can do determines the size of the portfolio. If you have a big equity portfolio, then you may have large-cap, multi-cap, mid-cap, and small-cap stocks. Ideally, a  big equity portfolio should have 5-6 schemes. You can include focused, thematic or sectoral funds too. You can have short, medium and long duration schemes too.  

If you have a small equity portfolio, you may keep multi-cap and focused funds. The size can be between 2-3 funds at any time.

Always analyse the risks and rewards in new funds.

-- Equity - large-cap, multi-cap, mid-cap, focus and small-cap
--Debt - short duration, corporate bond, Banking and PSU debt funds
-- Cash - liquid, ultra-short duration
--Low risk - dynamic asset allocation, balanced advantage fund

Best mutual funds to invest in:

Top funds Multi cap funds
--SBI Magnum Multicap
--Motilal Oswal Multicap 35

Top funds Large-cap funds
--ICICI Prudential Bluechip Equity
--Mirae Asset Large-cap

Top funds Focused funds
-- Axis Focused 25
-- SBI Focused Equity

Top funds Mid cap funds
-- Kotak Emerging Equity
-- Invesco India Midcap

Top funds Small-cap funds
-- Axis Small cap
-- Kotak Small cap

Top funds ELSS
-- Mirae Asset Tax Saver
-- Kotak Tax Saver

Top funds Dynamic Asset Collection
-- Kotak Balanced Advantage
-- ICICI Pru Balanced Advantage

Top fundsCorporate Bonds
-- HDFC Corporate Bond
-- ICICI Prudential Corporate Bond

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Banking and PSU Debt
-- Aditya Birla SL Banking and PSU Debt
-- Kotak Banking and PSU Debt