Best Mutual Funds 2024 - Invest in Top Performing Mutual Funds in India

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Should I consider investing in this Fund?

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Should I buy the Fund or wait?

Should I partly sell a particular Fund or exit?

Categories: Flexi Cap Funds Large Cap Funds Mid Cap Funds Small Cap Funds Multi Cap Funds Large & Mid Cap Funds Tax Saver Funds Index Funds ETF Funds

Fund House (AMC): Aditya Birla Axis BNP Paribas DSP Franklin HDFC ICICI Bandhan Invesco Kotak L&T

Mirae Motilal PPFAS Quantum Nippon SBI Sundaram Tata UTI NAVI

FAQ's

What are the benefits of investing in a mutual fund?

Investing in top mutual funds can help you preserve and grow your wealth over time. Some of the key benefits of investing in mutual funds are listed below:

Professionally managed: By opting for a mutual fund, you choose a professional money manager, who invests a pool of money after thorough research and based on well thought strategy.

Diversified & many investment options: Mutual Fund saves you a lot of time and helps you quickly get exposed to large number of stocks and bonds. Limited capital restricts you to a handful of investment ideas. With large pool of money, a mutual fund helps you take exposure to all types of assets including corporate bonds, pure gold and 100s of stocks.

Liquidity: Mutual funds are liquid investments unless they have a specific lock-in period. This means you can redeem your units at any time and access your money when needed.

Ease of investment: It is quite easy to invest in mutual funds. And, you can start with amounts as low as Rs. 500.

How to choose the best equity mutual fund?

Finding a good Mutual Fund to invest in requires you to answer 3 essential questions:

What is the Right Fund? - Check quality of Holdings, consistency of returns, expense
What is the Right Time to buy? - Check portfolio valuation and fund manager investment strategy
What is the Right Allocation? - Check if the fund suits your risk profile

Read our blog , 'If not past returns, then how do you select the right Equity Mutual Fund to invest in?' for details

What are the best equity mutual funds in India?

While the best mutual funds to invest keep changing from time to time. Here are a few funds that are currently doing well:

Fund Name	Category	AUM (Cr.)	Returns Since inception	3 yr Avg Rolling	Quality	Performance
Mirae Asset Emerging Bluechip Fund	Equity - Large & Mid Cap Fund	11,929	19.8	23.21	Somewhat Good	Very Good
Canara Rob Emerg Equities Fund-Reg(G)	Equity - Large & Mid Cap Fund	6,126	16.6	20.15	Somewhat Good	Very Good
Axis Midcap Fund	Equity - Mid Cap Fund	6,949	16.9	19.32	Very Good	Not Good
Aditya Birla Sun Life MNC Fund	Equity - Thematic Fund - MNC	3,708	16	19.3	Somewhat Good	Not Good
Nippon India Pharma Fund	Equity - Sectoral Fund - Pharma & Health Care	3,900	20.8	18.69	Very Good	Not Good
HDFC Mid-Cap Opportunities Fund	Equity - Mid Cap Fund	21,817	14.2	18.51	Somewhat Good	Very Good
Principal Emerging Bluechip Fund	Equity - Large & Mid Cap Fund	2,120	23	18.3	Somewhat Good	Not Good
Invesco India Multicap Fund	Equity - Multi Cap Fund	933	13.9	18.21	Somewhat Good	Not Good
ICICI Prudential Technology Fund	Equity - Sectoral Fund - Technology	832	10.9	17.99	Risky	Very Good
ICICI Prudential FMCG Fund	Equity - Sectoral Fund - Consumption	516	16	17.98	Very Good	Not Good

Are mutual funds risky?

All investments are accompanied by a certain level of risk. So, although mutual funds do offer investors the benefit of diversification, which lowers risk, there is still considerable risk involved. The best way to reduce the risk associated with mutual funds is by doing the following:

Have your emergency fund in place before you start investing.
Have an adequate term and health insurance plan
Never invest any money you will need in the near future.
Diversify your investment portfolio by investing across sectors and asset classes.
Build an investment portfolio that matches your appetite for risk.

Do your own research before you invest in these funds, so you know which funds would make a better choice. Read, ‘If not past returns, then how do you select the right Equity Mutual Fund to invest in?' to know how to choose the best mutual fund for you.

Should I invest in index funds?

Index Funds, also called as passive investing, mimics an index that is comprised of stocks ranked primarily based on size (or any other fundamental attribute). In this type of investing, there is no fund manager picking individual stocks but a framework that shortlists stocks and their proportion to build a diversified portfolio. This way it gives exposure to large part of market.

Key advantages of such a fund are (1) lower costs as there is no fund manager and (2) lower efforts to identify best fund or fund manager (3) Exposure to large section of market, guaranteeing average stock market returns.

Index fund is an equity fund, so it also comes with volatility but it is a simplest form of equity investing.

Should I invest in equity mutual funds?

If your goals are more than 5-7 years away, you must consider investing in Equity Mutual Funds to earn equity-linked returns (significantly higher than FD). This will also help you reach your financial goals faster or on lower amount of savings. Those who are already investing in stocks directly can consider investing in equity MFs to complement your investment strategy/style/biases and also be confident about committing a larger portion of your Investable Surplus to equities.

How many Equity Mutual Funds should I invest in?

You must select at least 4-5 funds whose strategy complements each other. Every Fund Manager chooses a strategy, such that it will work best only in some market situations. So, when investing in equity mutual funds, if you own different combination of mutual funds, they will work better together, in good times and bad.

Should I invest in debt mutual funds?

Ideally, you should invest at least 25% of your portfolio in debt. This can be through FDs, PPFs or debt funds. Since this part of your portfolio is your safety net, we usually advise clients to stick to safer category of debt funds, i.e. Liquid funds. For portfolios smaller than Rs. 50 Lakhs can choose simple Fixed Deposits in Top 5 banks of India for this portion of portfolio.

What are the Color-coded tags or buttons that accompany everyfund?

Every fund is assessed on the following:

Consistent Outperformers : Track record of having generated returns above a benchmark on a 3-year rolling basis. Consistent performers are Green, followed by Orange. Red have an inconsistent track record on outperforming the index.
The average 3-year rolling returns number appears in the first button.
Quality of Portfolio is assessed based on the quality of each stock held. Predominantly high quality stocks get a Green second button, followed by Orange and Red (large amount of risky stocks).
Upside Potential: Every fund is assessed on what returns it could deliver in the next 5 years based on it.

How do you select the fund for SIP?

Select the fund that is Green on Performance which shows it has consistently outperformed the index. Select one with a high average 3-year rolling returns - the number in the first button. And select one with a Green rating on Quality-the second button.

How do you find the best funds within a category?

Use the Funds Screener and select the category. It shows the funds with Green on Performance and Quality right on the top. The ones with the higher average 3-year rolling returns are ranked the highest. Funds with less than 5 years returns history are colored Grey on Performance. Since the track record is not for an adequately long period they feature lower in the list.

How do you build a portfolio with funds?

Build a well-diversified portfolio with funds that assures you of a stable growth through market and economic cycles and funds that enhance your portfolio returns over the long run.

Core Funds: Choose from Large cap, Large and Mid cap and Flexicap funds.
Booster Funds
1. Choose from Mid and Small cap funds.
2. Select a Sector or Thematic Fund that is likely to outperform in the long term.

How do you analyze your current fund portfolio?

Use the Fund Portfolio Analyzer, Sher-ya-Billi to check if your portfolio will deliver healthy returns or disappoint you. Go to Fund Portfolio Analyzer. You can also upload details of your funds in the Portfolio Manager and see the report on this page.

What must you be careful about when add a new fund to your existing portfolio?

When adding a new fund check how different is the fund compared to your portfolio by using the link in the Right allocation box on the Fund Decision Maker.

What are the main problems in a Fund Portfolio?

Most investors have more, many more funds that they should-over diversified. This tends to reduce returns. Many investors have more of the same i.e. they have funds that have very similar portfolios and hence the fund portfolio is not well-diversified. Either there are too many large cap dominated funds or far too many mid and small cap funds. What you require is a good, balanced mix. Finally investors don't know when to exit a fund and end up carrying it even though the future upside potential is very low.