Though there is a lot of information available about ‘how’ and ‘why’ of Mutual Fund investing, but finding ‘the best funds to invest in’ and ‘top mutual funds for SIP’ is a task some investors find difficult to deal with.
There are certain aspects which an investor should look at before arriving at a decision about the choice of Mutual Funds to invest in.
Here is a curated list of the top Mutual funds in India, with their performance metrics and kind of investors they are suitable for. These funds have a proven track record over various market cycles and give the investor an opportunity to benefit from equity investing in India.
Best Mutual funds to Invest in India:
1. Axis Midcap Direct-G
About the Fund: . The objective of this scheme is to
provide long-term growth in capital by investing in a well-diversified set of
Mid Cap stocks.
S & P BSE Midcap Index is this scheme’s benchmark.
The scheme has been continuously in the top performing funds in India in the
Mid cap category.
Axis Midcap fund is one of the top mutual funds in its category. This fund is suited for investors who are not worried about the short term volatility in the markets and who look for market beating returns over a longer time frame. Mid cap companies are considered to deliver superior returns due to the potential of faster earnings growth.
Performance
| Axis Midcap Fund Direct (Growth) | |
| Duration | Return |
| 1 Year | 16.37% |
| 3 Year | 12.21% |
| 5 Year | 12.98% |
| Since Inception | 17.33% |
2. Kotak Emerging Equity Direct-G
The objective of this scheme is to generate long-term capital appreciation by investing in a portfolio of predominantly Mid Cap companies.
Nifty Midcap 100 Index is this scheme’s benchmark. Kotak Emerging Equity fund is one of the top mutual funds in its category. The fund invests in companies which are in a developing stage and thus have a potential to deliver better than market returns. This fund is suited for investors who are looking for market beating returns over a longer time frame.
Performance
| Kotak Emerging Equity Fund Direct (Growth) | |
| Duration | Return |
| 1 Year | 9.79% |
| 3 Year | 6.04% |
| 5 Year | 13.44% |
| Since Inception | 16.70% |
3. HDFC Small Cap Direct-G
The scheme aims to provide long term capital income by investing predominantly in Small-Cap companies with sound financial strength and with reasonable growth prospects.
Nifty Small-cap 100 Index is this scheme’s benchmark. HDFC Small Cap fund is one of the top mutual funds in its category and invests in a portfolio of small-cap companies with acceptable valuations and sustainable business models.
The fund is suited for investors who are not worried about the short term volatility in the markets and who look for market beating returns over a longer time frame.
Performance
| HDFC Small Cap Fund Direct (Growth) | |
| Duration | Return |
| 1 Year | -6.15% |
| 3 Year | 7.47% |
| 5 Year | 11.76% |
| Since Inception | 14.65% |
4. L&T Emerging Businesses Direct-G
This scheme has been structured to be a diversified equity plan with the aim to invest primarily in small cap companies for generating long-term capital growth.
S & P BSE Small Cap Index is this scheme’s benchmark. L & T Emerging Businesses Fund is one of the best mutual funds in its category. This fund is suited for investors who are looking for high returns and are not worried about the short- term volatility and thus are willing to take risks associated with markets in general and small-caps in particular.
Performance
| L & T Emerging Businesses Fund Direct (Growth) | |
| Duration | Return |
| 1 Year | -5.65% |
| 3 Year | 5.97% |
| 5 Year | 12.48% |
| Since Inception | 16.46% |
5. SBI Magnum MultiCap Direct-G
This fund is a consistent performer from the SBI Mutual Fund house. The objective of the fund is to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of stocks.This fund is suited for investors who want a flavour of equity across a basket of stocks, sectors and market caps. It brings in a blend of Large, mid and small cap companies for stability and growth.S & P BSE 500 is this scheme’s benchmark.
Performance
| SBI Magnum Multicap Fund Direct (Growth) | |
| Duration | Return |
| 1 Year | 13.47% |
| 3 Year | 9.05% |
| 5 Year | 13.01% |
| Since Inception | 15.85% |
Who should invest
SBI Magnum Multicap fund is one of the best mutual funds in its category. This fund is suited for investors who want a flavour of equity across a basket of stocks, sectors and market caps. It brings in a blend of Large, mid and small cap companies for stability and growth.
So here are some top performing funds that you can consider investing in. Please conduct the necessary research about each fund and invest according to your time horizon and financial objectives.