In April 2018, The Economic Times had reported that the mutual fund industry in India has added 32 lakh new investors in 2017. Part of the credit for this, of course, goes to the “Mutual Funds Sahi Hai” campaign run by the Association of Mutual Funds in India (AMFI). Given the volatility of the stock market, investors are increasingly turning to mutual funds.
Best Mutual Funds in India
The key to choosing the right investment vehicle for yourself is to first understand your financial goals, the timeline to achieving them and your risk appetite. If your analysis points to mutual fund investments, here’s a look at my list of the top 10 funds in India.
ICICI Prudential Equity & Debt Fund
This scheme seeks to generate long-term capital appreciation and current income by investing in equities and related securities, as well as fixed income and money market securities, says an article in The Economics Times. This fund is suitable for investors seeking a balanced fund and a long-term capital gains solution. In this scheme, the allocation of equity is roughly around 60%-80%. Moreover, the minimum asset allocation is 51%. The application amount for this scheme is ₹5,000 and minimum additional investment is of ₹1,000.
Aditya Birla Sun Life Small & Midcap Fund
This is an equity fund that aims to generate growth and capital appreciation by investing in equity and equity-related securities of companies that are considered small and midcap. It is one of the best options for providing long-term capital growth. It is an open-ended fund that requires a minimum investment of ₹1,000. However, investors must understand that their principal will be at high risk, since it is an equity fund.
Motilal Oswal Multicap 35 Fund
The objective of Motilal Oswal Multicap 35 Fund is to achieve long-term capital appreciation by primarily investing in a maximum 35 equity and equity-related instruments across economic sectors. This is an open -nded equity scheme that invests across small, mid and large cap stocks. This scheme was ranked #2 in the Multi Cap Fund category by CRISIL for the quarter ended June 2018, says an article in Money Control. It requires a minimum investment of ₹500 and exit load of 1% for redemption within 365 days. This plan has a maximum of 65% equity allocation and a minimum of 35% debt allocation.
L&T Tax Advantage Fund
This mutual fund aims to generate long-term asset growth through a wide-ranging portfolio of predominantly equity and equity-related securities. The major benefits of this scheme are that the term is more than 10 years, with 3-year and 5-year returns, which is higher than the benchmark. The minimum investment required is ₹500 and exit load is zero. However, remember that your amount will be at moderately high risk.
SBI Magnum MultiCap Fund
The scheme aims to provide investors with opportunities for long-term capital growth through a diversified basket of equity stocks across market sectors. It also provides liquidity, since it is an open-ended scheme. The minimum investment for this fund is ₹1,000 and an exit load of 1%. It follows an investment strategy of bottom-up approach and stock picking. SBI Magnum MultiCap Fund was ranked #3 in the Multi Cap Fund category by CRISIL for the quarter ended June 2018.
Kotak Corporate Bond Fund
The objective of this fund is to generate capital by investing in debt and money market securities, predominantly in AA+ and above rated corporate securities. It is an open-ended debt scheme that seeks to maintain reasonable liquidity. The minimum investment required for this scheme is ₹5,000 and offers a return rate of 8.06%, since its launch in September 2007. The principal amount of investors will be at moderately low risk in this fund.
SBI BlueChip Fund
This one was ranked #3 in the Large Cap Fund category by CRISIL for the quarter ended in June 2018, a position that the fund has maintained since. The objective of this scheme is to offer investors opportunities for long-term capital growth through the active management of investments in a diversified basket of large cap equity. The minimum investment required for this mutual fund is ₹5,000 and the exit load is 1% on or before 1 year, and zero after that. It has provided 10.8% return since its inception.
DSP BlackRock Balanced Fund
This is another open-ended scheme that seeks to generate long-term capital appreciation and current income from equity and equity-related securities. The minimum investment needed for this scheme is ₹500 and comes with an exit load of 1%. The NAV returns of this scheme is 14.5% since its inception. The scheme has been ranked #4 in the Aggressive Hybrid Fund category by CRISIL for the quarter ended June 2018, says an article in Money Control.
Canara Robeco Gilt PGS
This scheme’s objective is to generate risk-free returns while maintaining stability and liquidity of the fund. This fund predominantly invests in government securities. It has provided good performance in the category and ranked #2 in the Gilt Fund category by CRISIL for the quarter ended June 2018. It has a minimum required investment of ₹5,000 and has a return rate of 8.72% since its inception.
Axis Liquid Fund
Axis Liquid Fund aims to generate reasonable returns from a portfolio of money market and high quality debt securities. It also provides good returns, with a high level of liquidity, at low risk. With a minimum investment of ₹500, it has been giving a return rate of 8.15% since its inception. It was ranked #3 in the Liquid Fund category by CRISIL for the quarter ended June 2018.
Also read: Best tax saving mutual funds in India.
The return rates of mutual funds might appear attractive. However, it is always advisable to invest with a proper guidance and after extensive research. It is also crucial to keep an eye on the performance of the fund and the existing market rates.
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