What are the best mutual funds in India? This is not a question that can be answered easily. First and foremost, it is important to consider the credentials of the investor. It is equally important to look at the mutual fund profile. The parameters to look at are risk appetite, investment goals, and time horizon. If you are not an investor who can invest a large sum at once, go for the best mutual funds for SIP.
Given below is a curated list of best performing mutual funds. Be advised that this is not a final list. Invest at your own discretion.
Best Mutual Funds to Invest
Axis Mid-Cap Direct-Growth
Axis Mid-Cap Fund is an open ended equity scheme investing predominantly in equity and equity related instruments of mid cap companies . This is suitable for investors who are seeking capital appreciation for the long term. Risk associated is moderately high, with a reasonable expense ratio. It is an actively managed portfolio diversified by investing across sectors.
Kotak Emerging Equity Direct-Growth
Kotak Equity fund invests in equity and equity related securities of mid cap companies, building towards capital appreciation. It focuses on companies that are budding and undervalued, as these companies have the potential to deliver in the long term. The risk associated with this fund is moderately high, as there is no predicting which way a company is going.
HDFC Small Cap Direct-Growth
HDFC mutual fund, HDFC Small Cap fund is an open ended equity scheme investing in small cap companies. At least 65% of its assets are invested in small cap stocks. It may also invest in other equities to ensure optimal diversification. As it is a small cap fund, there is moderately high risk associated as well as higher returns. This fund is ideal for investors seeking long term income.
L&T Emerging Businesses Direct-Growth
L&T Emerging Businesses fund is an open ended equity scheme investing mainly in small cap stocks. The investment objective of this scheme is to generate long term capital appreciation using a diversified portfolio consisting of equity and equity related instruments. It derives its name from investing in emerging businesses that are still in the bud or at an infant stage. As it invests in small cap stocks, the risk is high and returns are proportionately high.
SBI Magnum MultiCap Direct-Growth
Launched in 2005, SBI Magnum Multicap fund invests in multiple asset classes. A 65% of its assets are invested in equity and equity related instruments. The remaining 35% is invested in debt and money market instruments. The risk profile is moderately high.
ICICI Prudential Multi-Cap Direct-Growth
ICICI Prudential Multi-Cap fund focuses on long term wealth creation. It is an open ended equity scheme investing in large cap, mid cap and small cap funds. The risk associated is moderately high. It has an investment option of lump sum and SIP at rupees 100 at regular intervals.
Axis Bluechip Direct-Growth
Bluechip is a term that is equivalent to large cap. Large cap stocks are stocks of large, established companies. Since these are established companies, the risk associated is less, and so are the returns. Axis Bluechip fund aims to build long term capital appreciation by investing in equity and equity related instruments of large cap companies. The risk associated is moderately high.
ICICI Prudential Bluechip Direct-Growth
The investment objective of this fund is long term wealth creation from a portfolio that is invested in equity and equity related instruments. It predominantly invests in large cap equities. Associated risk is moderately high. The expense ratio is reasonable and ideal for investors looking for long term wealth.