Ab-SIP-karo-Direct-Befikar

Best Mutual Funds to Invest in 2024

Decizen Rating (Understand the Method):- P: Performance, Q: Quality, UP: Upside Potential
24.29
936
13.8
07 Apr' 17
25.63
16.24
16.12
N/A
12.94
14.15
12.76
N/A
Unlock
29.74
634
14.2
11 Dec' 15
20.27
19.65
16.7
N/A
15.74
14.12
13.85
N/A
Unlock
19.40
544
10.9
06 Oct' 17
29.89
17.69
15.99
N/A
11.62
14.11
11.12
N/A
Unlock
205.93
5,472
14.6
01 Jan' 91
26
16.7
15.42
11.38
15.57
14.09
12.97
13.16
Unlock
20.62
77
14.3
28 Sep' 18
37.65
19.67
14.95
N/A
12.72
14.09
12.75
N/A
Unlock
107.91
3,644
14.1
27 Feb' 06
35.64
19.97
15.6
11.91
16.36
14.09
13.08
13.53
Unlock
487.31
7,447
19.2
04 Feb' 03
25.26
17.75
16.75
11.56
15.78
14.07
12.58
12.40
Unlock
72.21
6,823
14.3
28 May' 09
34.14
24.09
19.56
12.35
16.36
14.05
12.10
11.77
Unlock
239.75
2,195
16.8
12 Sep' 03
36.35
25.61
20.25
12.58
17.08
14.04
11.49
11.56
Unlock
452.34
77,011
17.6
11 Sep' 00
37.35
27.03
18.85
13.85
17.21
13.92
12.52
12.91
Unlock
109.12
3,723
13.8
09 Aug' 05
45.53
27.18
20.1
14.34
16.49
13.91
11.83
10.99
Unlock
176.32
3,466
12
01 Aug' 05
27.65
17.03
16.39
11.28
15.66
13.90
12.26
11.31
Unlock
94.35
302
16
30 Dec' 08
31.25
19.23
15.94
11.03
15.51
13.86
12.53
12.56
Unlock
141.00
4,191
11.6
14 Jan' 00
22.25
15.86
12.93
11.55
14.95
13.85
12.54
12.07
Unlock
44.56
2,064
9.4
06 Jul' 07
59.46
36.55
25.86
15.92
19.56
13.83
10.03
8.90
Unlock
31.79
1,598
13.6
03 Feb' 15
34.83
22.07
17.44
N/A
14.69
13.76
12.23
13.66
Unlock
58.71
925
13
21 Aug' 09
33.81
19.25
15.86
11.56
15.31
13.77
12.29
12.08
Unlock
41.12
3,026
16.8
21 Jan' 15
46.13
24.41
19.75
15.84
16.21
13.76
11.97
16.09
Unlock
88.02
1,142
14.8
10 Jun' 08
37.08
21.98
18.29
12.32
18.05
13.74
12.33
12.74
Unlock
31.76
2,551
13.7
25 Feb' 15
35.61
20.88
17.7
N/A
14.73
13.74
12.44
13.68
Unlock
238.50
12,082
13.4
03 Aug' 05
23.18
16.12
15.11
10.67
15.29
13.69
12.39
12.14
Unlock
145.13
2,500
13.8
20 May' 09
38.21
25.95
18.9
12.05
16.61
13.69
11.58
11.30
Unlock
1162.44
13,441
23.7
31 Mar' 96
38.7
27.1
17.75
11.65
17.42
13.68
12.15
12.72
Unlock
37.69
3,987
15.2
13 Oct' 14
28.38
20.23
17.11
13.66
14.51
13.68
12.10
13.76
Unlock
1016.39
30,980
19.2
03 Sep' 96
33.91
23.42
16.38
11.94
16.68
13.67
12.37
13.37
Unlock
17.77
87
3.7
05 Mar' 08
44.35
21.87
15.73
12.12
17.15
13.67
11.18
10.55
Unlock
291.65
8,845
14.6
27 May' 99
27.89
15.23
15.62
11.69
15.44
13.66
12.58
12.92
Unlock
46.68
5,157
12.5
07 Feb' 11
28.32
15.06
13.16
10.32
14.74
13.66
12.29
12.64
Unlock
17.46
1,609
10.6
09 Aug' 18
17.42
10.99
12.36
N/A
11.97
13.65
11.34
N/A
Unlock
235.59
1,664
13.9
10 Dec' 99
26.94
17.11
14.79
10.84
15.01
13.63
12.51
12.71
Unlock
126.74
996
10.2
31 Mar' 98
29.34
17.02
14.35
10.24
15.71
13.61
12.07
10.67
Unlock
193.68
1,603
15.3
02 May' 05
23.8
19.22
14.75
10.76
15.87
13.60
11.90
12.36
Unlock
44.50
3,454
16.5
16 May' 14
44.99
33.64
21.85
14.34
15.45
13.59
10.16
13.27
Unlock
92.35
561
12.7
08 Aug' 05
38.04
26.51
22.8
15.54
18.58
13.55
10.39
9.07
Unlock
184.44
9,317
16.2
17 Sep' 04
34.97
30.59
19.52
12.69
18.26
13.54
11.35
11.64
Unlock
56.89
807
15.3
23 Dec' 11
32.44
21.87
19.21
11.06
15.42
13.54
11.53
12.95
Unlock
390.82
3,623
15
08 Oct' 95
19.53
16.39
13.49
9.49
14.65
13.53
12.76
13.76
Unlock
136.65
8,478
15.1
20 Jul' 05
29.93
19.97
18.19
11.17
15.36
13.50
12.41
12.90
Unlock
30.59
282
14.6
07 Dec' 15
27.47
22
16.62
N/A
15.60
13.31
12.94
N/A
Unlock
1190.92
4,167
18.3
08 Oct' 95
41.23
23.92
18.81
10.88
17.41
13.30
11.17
11.42
Unlock
45.35
1,918
12.6
10 Jun' 11
34.31
21.51
19.17
11.29
15.12
13.28
11.43
12.12
Unlock
45.17
2,220
11.6
10 Jun' 10
36.16
16.3
15.88
10.79
15.69
13.25
11.82
11.87
Unlock
34.42
1,949
16.4
28 Dec' 15
24.99
17.16
15.55
N/A
17.09
13.24
13.12
N/A
Unlock
107.08
165
16.7
23 Dec' 08
31.25
19.82
14.76
11.48
15.14
13.21
12.28
12.34
Unlock
21.57
294
12
11 May' 17
27.47
17.55
15.41
N/A
11.86
13.21
10.97
N/A
Unlock
199.13
2,709
17.4
28 Mar' 03
23.43
16.85
14.19
10.58
14.83
13.18
11.91
11.76
Unlock
107.56
1,030
14
13 Mar' 06
31.5
19.75
14.65
11.51
15.08
13.16
12.34
13.12
Unlock
166.02
74
12.2
31 Mar' 96
36.51
20.85
16.15
12.54
15.54
13.13
11.90
12.21
Unlock
24.89
781
13.2
18 Oct' 16
31.24
22.58
17.62
N/A
13.29
13.11
11.91
N/A
Unlock
440.70
1,888
19.4
07 May' 98
28.96
20.07
15.97
11.01
14.66
13.03
11.73
12.14
Unlock
*Based on the Fund's Ranking within its Category


FAQ's
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.

Finding a good Mutual Fund to invest in requires you to answer 3 essential questions:
  1. What is the Right Fund? - Check quality of Holdings, consistency of returns, expense
  2. What is the Right Time to buy? - Check portfolio valuation and fund manager investment strategy
  3. 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

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
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:
  1. Have your emergency fund in place before you start investing.
  2. Have an adequate term and health insurance plan
  3. Never invest any money you will need in the near future.
  4. Diversify your investment portfolio by investing across sectors and asset classes.
  5. 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.

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.

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.

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.

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.

Every fund is assessed on the following:
  1. 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.
  2. The average 3-year rolling returns number appears in the first button.
  3. 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).
  4. Upside Potential: Every fund is assessed on what returns it could deliver in the next 5 years based on it.
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.
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.
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.
  1. Core Funds: Choose from Large cap, Large and Mid cap and Flexicap funds.
  2. 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.
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.
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.
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.
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