Top Mutual Funds
Below is the list of best performing mutual funds to invest in India.
1.) Large Cap Funds
What Are Large Cap Funds ?
Large cap funds are categorized under the equity mutual funds. In these funds the majority of investments are made into the stocks/shares of the companies that have large market capitalization.
These large companies are very reputable, trustworthy and have an excellent track record in providing wealth for the investors over a mid to long period.
According to SEBI, when the investment made into the top 100 companies as per the market capitalisation, then they are referred to as large-cap funds.
What are the main features of Large Cap funds ?
- These funds can also survive in adverse economic conditions.
- These funds provide stability in the investor’s portfolio as its growth is always consistent and mostly in a positive direction.
- In these funds risk is less with reasonable returns because of excellent liquidity.
- These funds provide excellent capital appreciation and fair distribution of dividends with consistency.
| Name of Fund | 5 Year Returns (p.a.) | Scheme Category |
|---|---|---|
| Kotak Bluechip Fund | 14.24% | Large Cap |
| Axis Bluechip Fund | 13.50% | Large Cap |
| ICICI Prudential Bluechip Fund | 12.90% | Large Cap |
| Mirae Asset Large Cap Fund | 13.76% | Large Cap |
| SBI Bluechip Fund | 14.01% | Large Cap |
2.) Mid Cap Funds
What Are Mid Cap Funds ?
Mid-cap funds are another type of equity mutual funds. In these funds the investment are made into the stocks and securities of the mid categorized companies in reference to the market capitalization. Mid categorized companies are emerging companies that are actively seeking investment chances for expansion.
According to SEBI, when the investment made in between 101st to 250th ranked companies on behalf of market capitalization are referred to as mid-cap funds.
What Are The Main Features of Mid Cap Funds ?
- These funds have moderate volatility.
- Have an enormous growth of opportunities as they have access to higher and better funding for expansion.
- These funds possess reasonable risk in comparison to small caps funds.
- These funds delivered good returns.
| Name of Fund | 5 Year Returns (p.a.) | Scheme Category |
|---|---|---|
| DSP Midcap Fund | 17.52% | Mid Cap |
| L&T Midcap Fund | 16.70% | Mid Cap |
| Aditya Birla Sunlife Midcap Fund | 17.20% | Mid Cap |
| SBI Magnum Midcap Fund | 17.49% | Mid Cap |
| Sundaram Midcap Fund | 18.98% | Mid Cap |
3.) Small Cap Funds
What Are The Small Cap Funds ?
These funds are an investment vehicle that invests in the stocks of the small companies or the start-ups. These companies may have higher growth potential.
According to SEBI, when the investment is done in the stocks/shares of the 251st company onwards in terms of market capitalization, then it is referred to as small-cap funds.
What are the main features of Small Cap Funds?
- These funds carry higher market risk in comparison to other categories i.e. mid or large-cap, because of their features.
- These funds have handed over higher returns as compared to the benchmark in the long term.
- In these funds, the investor can invest for long term i.e, minimum horizon should be more than 7 years.
- These funds have higher volatility as the market fluctuation can influence them and they tend to underperform in the short term.
| Name of Fund | 5 Year Returns (p.a.) | Scheme Category |
|---|---|---|
| SBI Small Cap Fund | 21.45% | Small Cap |
| HDFC Small Cap Fund | 18.60% | Small Cap |
| DSP Small Cap Fund | 19.50% | Small Cap |
| Kotak Small Cap Fund | 19.89% | Small Cap |
| Sundaram Small Cap Fund | 22.60% | Small Cap |
4.)Tax Saving Funds (ELSS)
What Do you Mean By ELSS Funds ?
Equity Linked Savings Scheme (ELSS) funds are also known as tax savings mutual fund. These are well diversified multicap funds which invests your money across all market capitalisations, i.e., large cap, mid cap and small cap. Your funds will be locked in for the period of 3 years from the date of investment. You can take the total tax deduction of upto Rs.150, 000 in a financial year under section 80C of Income Tax.
Why it is better to invest in ELSS funds rather than traditional products like PPF, NSC, LIC etc.?
- Lock in period is just 3 years.
- You can invest with a small amount of 500.
- You can invest in monthly mode through regular SIP and take the benefit of rupee cost averaging.
- Tax friendly capital gains ( Long term capital gains is taxed at 10% above the overall limit of 100,000 in a financial year).
- You will get returns in double digit figure whereas traditional investments hardly surpass the yearly inflation rate.
- You will get compounding benefits as your returns are added to the principal amount which will help in getting high future returns.
- You will get compounding benefits as your returns are added to the principal amount which will help in getting high future returns.
- You can stay invested for more than 3 years also. It means there is no any auto redemption in ELSS.
- It is also very transparent in nature as you can see your portfolio holdings though monthly fact sheets available in the fund house website. As an investor, you will also get the copy of fact sheet in your email in a half yearly mode.
| Name of Fund | 5 Year Returns (p.a.) | Scheme Category |
|---|---|---|
| Axis Long Term Equity Fund | 14.30% | ELSS |
| IDFC Tax Saver Fund | 12.67% | ELSS |
| Franklin India Taxshield Fund | 12.90% | ELSS |
| DSP Tax Saver Fund | 13.86% | ELSS |
| Kotak Tax Saver Scheme | 13.90% | ELSS |
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