If you are yet to start an inning with a mutual fund, you should do ASAP as it takes time for the wealth to build. Just as small drops of water combine together to form an ocean, small pie of money invested regularly in a mutual fund can make you a millionaire or billionaire over the long-term. Don’t take an assumption that you just need to invest in a mutual fund to become rich.
The moral of the story is that one needs to do a preliminary exercise by finding the best mutual funds to invest in India. As mutual funds are classified into a number of schemes, you need to choose the best out of them in terms of performance over the years. Don’t worry, you do not need to stretch on finding the best. We will do it for you by explaining the best schemes in the mutual fund business.
Best Equity Schemes to Look for
You can find a wide range of equity schemes categorized under large-cap, mid-cap, multi-cap and small cap funds. Besides, there is an equity-linked savings scheme (ELSS) as well. So, let’s check out all below.
Top Performing Large Cap Funds
These funds invest in companies with a strong fundamentals and have been performing well over the years.
Reliance Top 200 Fund
The scheme looks to invest the corpus in equity and equity-related instruments of companies having a market capitalization within the range of highest and lowest market capitalization of BSE 200 Index. As far as its performance is concerned, it has delivered an annual return of 12.54%-20.89% in a period of 1-3 years.
Birla Sunlife Frontline Equity Fund
The fund aims for long-term capital appreciation by investing predominantly in the equities, spanning across the industries. It won’t be bad if you choose this fund, which has delivered a return of 13.28%-18.10% over the course of 1-3 years.
DSP BlackRock Focus 25 Fund
It’s the top 200 companies by market capitalization that the fund looks to invest the corpus into. The fund has provided a reasonable return of 13.40%-15.53% on a yearly basis.
Best Mid-cap Fund Performers
Take a look at the following mid-cap funds that have performed well over a certain period of time
HDFC Mid-cap Opportunities Fund
The fund invests in a portfolio of equity and equity-related securities of mid and small cap companies to generate long-term capital appreciation. Performance-wise, the fund provided a good return of 18.35%-21.70% in a space of 1-3 years.
Principal Bluechip Emerging Fund
The asset allocation of the fund will be 65%-95% in the mid-cap stocks having a market capitalization of benchmark Nifty Midcap 100 Index, and 5%-35% in small cap stocks. When it comes to the return part, it’s impressive with a CAGR of 21.21%-29.59%.
SBI Magnum MidCap Fund
With an investment made in a diversified set of mid-cap stocks, the fund aims to raise the growth of the invested capital over the long-term. The 1-year, 2-year and 3-year CAGR of the fund stand at 13.24%, 16.56% and 17.54%, respectively.
Which Multi-cap Funds You Should Opt for?
These funds invest across the market capitalizations by pooling the money in a wide range of stocks. The scope for diversification is higher here as money goes into a myriad of equities. And as a result, a fall in the value of one security gets compensated with the gains made by others in the portfolio. You can check the list of top-performing funds of the category below.
Birla Sun Life Advantage Fund
The scheme looks to raise the long-term growth of the capital at moderate levels of risk by diversifying the investments across companies having a sound management and showing the potential of higher returns. As a result of enhanced diversification, the fund has managed to post an impressive return of 20.17%-25.72% over a period of 1-3 years.
SBI Magnum Multicap Fund
With an investment spanning across the market capitalizations, the fund ensures the growth of the money at a moderate level of risk. If we talk about the asset allocation, it’s 50%-90% in large cap stocks, 10%-40% in mid cap stocks and upto 10% in small cap stocks. The careful allocation of the assets has allowed the fund to offer a 17.17%-21.81% return in a space of 1-3 years.
Do invest in these best mutual funds and let your money grow with time. Also, important is the fact that these funds invest predominantly in the equities, which are high-risk, high-return proposition. So, choosing these funds would require a greater risk-taking appetite on your part.