Are you looking for the best Mutual Fund to invest in 2024? While Investing in Mutual Funds, investors often find difficulty in finding a fund that would give them consistent returns. To solve all the troubles, we have come up with a list of the 10 Best Mutual Funds to Invest in.
Markets never show bouncing back! Those who continued their investments bear returns in the long term. Hence it is better to pick any moment as an opportunity for your long-term financial planning and stay ahead of others.
These funds have been shortlisted by taking certain parameters like AUM, NAV, past performances, peer average returns, etc. under consideration. Also, you can invest in these funds in two ways- either by taking a SIP route or a lump sum way.
Why should you invest in mutual funds?
There are many reasons why should you invest in mutual fund such as
India’s MF AUM market is rapidly growing with a rate of 18% – 20% from 11 lakh crore in 2014 to 47 lakh crore till now.
Despite a good growth rate, India’s mutual fund market is not so big as there are only 15 crore mutual fund investors across the India. The MF AUM market contribute only 14% to the India’s GDP while in other countries like China (23%), South Africa (45%), and Brazil (72%).
You won’t believe more than 70% of the mutual fund investors come from only these 5 states Maharashtra, Karnataka, Gujarat, West Bengal and New Delhi.
Based on the stats above we can assume that there is still a huge growing potential in this market. So, we can still take the advantage of investing in this growing market.
Top 10 Best Mutual Funds to Invest In
Here we have filtered the 10 best Mutual Funds to Invest for you who have returned the most in the past three years. Please note this is completely for information purposes and not a recommendation. Returns should not be the only or the principal parameter to invest in a mutual fund. Please do the due attention in research and pick mutual funds and asset classes that suit your investment profile.
#1. Mirae Asset Large Cap Fund
This fund invests in sector heads with high-quality businesses, strong pricing advantage, and sustainable competitive advantage. It has the flexibleness to invest across various sectors and themes. It can also operate up to 20% of its portfolio in a few high conviction midcap companies. This also adds to the consistent returns from large-cap companies. Hence, we consider it as one of the best mutual funds to invest in.
#2. Axis Blue Chip Fund
The scheme aims to exceed its benchmark while containing the market risk at a lower level than its benchmark. Its stock selection is primarily based on the viable earnings growth potential of stocks from a medium-term perspective. Also, for stock selection, this fund follows a bottom-up approach based on its business fundamentals.
#3. ICICI Prudential Blue Chip Fund
This fund principally invests in large-cap companies with quality management, good growth potential, strong fundamentals, and a proven track record. It follows the ‘benchmark hugging’ approach to ensure portfolio diversification and reduce concentration risk. It adopts a ‘buy and hold strategy for investing while using a bottom-up approach for stock selection. This makes it suitable for the list of best mutual funds to invest in. The fund also takes dynamic exposure to high conviction scripts to generate higher returns.
#4. SBI Blue Chip Fund
This scheme essentially invests in large-cap stocks with good brand equity and probably market leaders in their segments. It may also invest up to 20% of its portfolio in assets other than large-cap and debt and money market instruments. The fund also follows a combination of both growth and value plan of investing along with a mix of top-down and bottom-up strategies for stock selection across different sectors.
#5. Nippon India Large Cap Fund
This scheme fundamentally invests in large-cap companies, which are market leaders or potential market heads in their respective fields. It also invests in established business models and sustainable free cash flows. The fund aims to create alpha by investing in the best organizations in the benchmark index at a reasonable valuation and a relatively better return on equity. It is also aiming to benefit from domestic revival by conducting allocations to themes like urban discretionary and short-cycle capital expenditures. Nippon is currently overweight on manufactured capital goods and consumer discretionary.
#6. Franklin India Blue Chip Fund
This fund aims at long-term capital generation. It is adopting an active investment strategy with defensive and aggressive postures based on predominating market conditions and opportunities. The fund also involves a blend of both power and growth style of investing with a bottom-up strategy for stock selection across different sectors. This makes it one of the best mutual funds to invest in.
#7. IDFC Large Cap Fund
This fund finances predominantly in large-cap companies, with an opportunistic allocation to mid and small-cap ones not exceeding 20% of the fund portfolio. The aim is to produce consistent returns with low volatility while trying to generate additional alpha.
The fund also follows a robust three-pillar plan – buying the right sectors, buying the sector leaders, and tactical allocation to mid/small caps – for stock selection. Its tactical allocation to mid/small-cap firms is aimed at benefiting from opportunities arising out of stock mispricing and benevolent risk-on atmosphere. The fund’s investment approach is also based on growth and quality with preference given to companies with strong earnings and healthy returns on capital employed.
#8. HDFC Top 100 Fund
This fund aims at building a diversified portfolio over key sectors and economic variables. It takes active positions in a controlled way to reduce the market risks of its portfolio. The fund has also successfully operated market bubbles and excesses and has maintained a low portfolio turnover ratio due to its long-term approach to investing.
#9. L&T India Large Cap Fund
This fund invests in large-cap stocks without any sector bias. It uses its time-tested ways and in-depth market research to identify large-cap companies with great fundamentals. It also supports stocks having higher stability and less volatility with relatively quicker growth potential than the rest of the market.
#10. Invesco India Large Cap Fund
This fund uses thorough research to choose the best large-cap companies having the potential to deliver consistent benchmark-beating returns. It also favors growth stocks and aims to beat its benchmark’s returns through stock selection and sectoral allocation. The scheme does not take any cash call, which means it always takes the ‘fully invested’ path.
These may be some of the best mutual funds to invest in based on the highest returns. However, returns should not be considered as the only measure. When choosing mutual funds, fund manager and AMC history, asset class, category of fund, goals, other financial metrics, and performance of peer funds are also needed to be ascertained. Research, learn your requirements and begin your mutual fund journey.
Happy Investing!
Also Read: How to invest your money with short term or long term investment funds?
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