Mutual Funds are professionally managed investment schemes. They represent a pool of funds that are professionally managed by expert Mutual Fund managers.
The fund managers keep a record of the performance and growth of these funds and make required alterations so that the funds perform well and the investors receive the best possible returns.
In this article, we have summarized the top 10 mutual funds (टॉप 10 म्यूचुअल फंड) by picking one from each of the categories, so as to suit the risk appetite and investment goals of most of the investors.
- ICICI Prudential Focused Bluechip Equity Fund
- Aditya Birla Sun Life Small & Midcap Fund
- Tata Equity PE Fund
- HDFC Monthly Income Plan – MTP
- L&T Tax Advantage Fund
- SBI Nifty Index Fund
- Kotak Corporate Bond Fund
- Canara Robeco Gilt PGS
- DSP BlackRock Balanced Fund
- Axis Liquid Fund
Table of Contents
Top 10 Large Cap Equity Funds
Listed below are some of the top 10 performing large cap equity funds, as of Jan 2024:
Fund Name 1-Year Returns 3-Year Returns Nippon India Large Cap Fund 34.57% 25.34% Edelweiss Large Cap Fund 28.39% 18.69% HDFC Top 100 Fund 28.04% 21.24% Invesco India Largecap Fund 27.5% 17.22% SBI Bluechip Fund 26.93% 18.82% DSP Top 100 Equity Fund 26.3% 15.85% ICICI Prudential Bluechip Fund 26.17% 19.39% Bandhan Large Cap Fund 25.58% 15.95% Aditya Birla Sun Life Frontline Equity Fund 23.73% 17.24% Tata Large Cap Fund 24.61% 17.9%
Top 10 Large and Mid Cap Equity Funds
Listed below are some of the top 10 performing large and mid cap equity funds as of Jan 2024:
Fund Name 1-Year Returns 3-Year Returns Nippon India Large Cap Fund 34.57% 25.34% Edelweiss Large Cap Fund 28.39% 18.69% HDFC Top 100 Fund 28.04% 21.24% Invesco India Largecap Fund 27.5% 17.22% SBI Bluechip Fund 26.93% 18.82% DSP Top 100 Equity Fund 26.3% 15.85% ICICI Prudential Bluechip Fund 26.17% 19.39% Bandhan Large Cap Fund 25.58% 15.95% Aditya Birla Sun Life Frontline Equity Fund 23.73% 17.24% Tata Large Cap Fund 24.61% 17.9%
Top 10 Multi Cap Equity Funds
Listed below are some of the top performing multi cap equity funds, as of Jan 2024:
Fund Name 1-Year Returns 3-Year Return Nippon India Multi Cap Fund 39.4% 31.37% Quant Active Fund 23.54% 24.39% Baroda BNP Paribas Multi Cap Fund 22.07% 28.12% Mahindra Manulife Multi Cap Fund 33.79% 24.22% ICICI Prudential Multicap Fund 30.95% 22.055 ITI Multi Cap Fund 26.73% 21.87% Edelweiss Maiden Opportunities Fund – Series I – Direct Plan – Growth 22.17% 26.12% Edelweiss Recently Listed IPO Fund – Direct Plan – Growth 22.17% 26.12% Invesco India Multicap Fund 29.25% 19.75% Sundaram Multi Cap Fund 24.53% 18.76%
Top 10 Mid Cap Equity Funds
Listed below are some of the top performing mid cap equity funds, as of Jan 2024:
Fund Name 1-Year Returns 3-Year Returns HDFC Mid-Cap Opportunities Fund 44.13% 29.95% Mahindra Manulife Mid Cap Fund 37.26% 25.5% Nippon India Growth Fund 36.16% 26.39% Tata Midcap Growth Fund 33.77% 22.59% Invesco India Mid Cap Fund 32.94% 22.47% SBI Magnum Midcap Fund 32.38% 26.94% Motilal Oswal Midcap Fund 31.63% 31.38% Quant Mid Cap Fund 30.93% 30.26% Sundaram Mid Cap Fund 30.58% 22.51% Aditya Birla Sun Life Mid Cap Fund 30.13% 21.04%
Top 10 Small Cap Equity Funds
The best performing small cap equity funds as of Jan 2024 are as follows:
Fund Name 1-Year Returns 3-Year Returns HDFC Small Cap Fund 51.5% 34.82% Nippon India Small Cap Fund 7.28% 36.5% Quant Small Cap Fund 45.69% 37.6% DSP Small Cap Fund 45.38% 29.74% Franklin India Smaller Companies Fund 44.87% 31.53% HSBC Small Cap Fund 40.88% 33.51% Aditya Birla Sun Life Small Cap Fund 40.36% 23.41% ICICI Prudential Smallcap Fund 35.8% 30.46% Sundaram Small Cap Fund 39.34% 28.87% Union Small Cap Fund 36.46% 27.16%
Top 10 ELSS Equity Funds
Listed below are some of the best performing ELSS equity funds as of Jan 2024:
Fund Name 1-Year Returns 3-Year Returns SBI Long Term Equity Fund 37.18% 23.64% JM Tax Gain Fund 32.19% 20.51% Motilal Oswal Long Term Equity Fund 31.87% 20.7% Bandhan Tax Advantage (ELSS) Fund 31.43% 24.47% HDFC Taxsaver Fund 28.08% 3.2% Mahindra Manulife ELSS Fund 27.71% 21.12% Invesco India Tax Plan Fund 27.57% 15.23% Union Tax Saver (ELSS) Fund 27.12% 19.52% Tata India Tax Savings Fund 27.04% 19.67% Edelweiss Long Term Equity Fund (Tax Savings) Fund 26.83% 18.34%
Top 10 Debt – Liquid Funds
Listed below are some of the top performing debt liquid funds as of Jan 2024:
Fund Name 1-Year Returns 3-Year Returns Aditya Birla Sun Life Liquid Fund 7.08% 5.39% PGIM India Liquid Fund 7.02% 5.35% Union Liquid Fund 7.02% 5.36% Axis Liquid Fund 7.01% 5.35% Edelweiss Liquid Fund 7.0% 5.35% UTI Liquid Cash Fund 7.0% 5.35% Canara Robeco Liquid Fund 7.0% 5.3% Nippon India Liquid Fund 6.99% 5.33% HSBC Liquid Fund 6.99% 5.34% Bank of India Liquid Fund 6.99% 5.35%
Top 10 Debt Dynamic Bonds
The top 10 debt dynamic bonds as of Jan 2024 are listed below:
Fund Name 1-Year Returns 3-Year Returns DSP Strategic Bond Fund 9.96% 5.75% SBI Dynamic Bond Fund 9.3% 6.31% Baroda BNP Paribas Dynamic Bond Fund 9.01% 6.1% Nippon India Dynamic Bond Fund 8.97% 5.47% ICICI Prudential All Seasons Bond Fund 8.75% 6.77% Axis Dynamic Bond Fund 8.33% 5.42% Quantum Dynamic Bond Fund 8.33% 5.82% HDFC Dynamic Debt Fund 8.31% 4.87% Kotak Dynamic Bond Fund 8.3% 5.67% Aditya Birla Sun Life Dynamic Bond Fund 8.1% 7.23%
Top 10 Debt – Gilt Funds
The top 10 debt – gilt mutual funds in India(as of Jan 2024) are as listed below:
Fund Name 1-Year Returns 3-Year Returns ICICI Prudential Gilt Fund 9.47% 6.57% Tata Gilt Securities Fund 9.47% 5.84% SBI Magnum Gilt Fund 9.28% 6.4% Kotak Gilt Investment Fund 9.03% 5.99% DSP Government Securities Fund 8.6% 5.71% Nippon India Gilt Securities Fund 8.6% 5.44% Aditya Birla Sun Life Government Securities Fund 8.14% 5.37% HDFC Gilt Fund 7.97% 4.88% PGIM India Gilt Fund 7.91% 5.35% Canara Robeco Gilt Fund 7.91% 5.09%
Top 10 Hybrid Aggressive Funds
The top 10 best performing hybrid aggressive funds as as of Jan 2024 are listed below:
Fund Name 1-Year Returns 3-Year Returns JM Equity Hybrid Fund 30.91% 19.7% Edelweiss Aggressive Hybrid Fund 26.93% 19.91% DSP Equity & Bond Fund 26.01% 14.98% Mahindra Manulife Aggressive Hybrid Fund 25.59% 19.04% UTI Hybrid Equity Fund 25.35% 18.64% Navi Equity Hybrid Fund 25.32% 16.39% ICICI Prudential Equity & Debt Fund 25.11% 23.35% Nippon India Equity Hybrid Fund 24.97% 18.18% HSBC Aggressive Hybrid Fund 24.16% 13.81% HDFC Hybrid Equity Fund 24.13% 18.55%
Top 10 Hybrid Balanced Funds
The top 10 best performing hybrid balanced funds as of Jan 2024 are listed below:
Fund Name 1-Year Returns 3-Year Returns HDFC Retirement Savings Fund – Hybrid Equity Plan 29.61% 19.41% DSP Equity & Bond Fund 26.01% 14.98% UTI Hybrid Equity Fund 25.35% 18.64% ICICI Prudential Equity & Debt Fund 25.11% 23.35% Tata Retirement Savings Moderate Fund 25.09% 14.4% Nippon India Equity Hybrid Fund 24.97% 18.18% HSBC Aggressive Hybrid Fund 24.16% 13.81% HDFC Hybrid Equity Fund 24.13% 18.55% PGIM India Hybrid Equity Fund 22.67% 13.36% Mirae Hybrid Equity Fund 22.66% 15.41%
Top 10 Hybrid Conservative Funds
The top 10 best performing hybrid conservative funds as of as of Jan 2024 are listed below:
Fund Name 1-Year Returns 3-Year Returns HDFC Hybrid Debt Fund 14.8% 11.25% Kotak Debt Hybrid Fund 14.26% 11.19% SBI Conservative Hybrid Fund 13.89% 11.06% DSP Regular Savings Fund 12.35% 8.34% Baroda BNP Paribas Conservative Hybrid Fund 12.18% 8.24% Nippon India Hybrid Bond Fund 12.14% 9.34% ICICI Prudential Regular Savings Fund 12.1% 9.51% HSBC Conservative Hybrid Fund 11.97% 8.04% UTI Regular Savings Fund 11.83% 9.73% Franklin India Debt Hybrid Fund 11.51% 8.22%
Top 10 Equity Savings Hybrid Mutual Funds
The top 10 best performing hybrid equity savings funds as of as of Jan 2024 are listed below:
Fund Name 1-Year Returns 3-Year Returns Sundaram Equity Savings Fund 18.24% 12.15% SBI Equity Savings Fund 17.45% 11% HSBC Equity Savings Fund 16.36% 11.57% otak Equity Savings Fund 15.07% 11.61% Mahindra Manulife Equity Savings Fund 15.06% 11.42% Nippon India Equity Savings Fund 14.85% 10.2% Aditya Birla Sun Life Equity Savings Fund 14.71% 8.93% Edelweiss Equity Savings Fund 14.53% 10.24% Axis Equity Saver Fund 14.41% 9.77% HDFC Equity Savings Fund 14.2% 11.89%
When you purchase units of a Mutual Fund, these units denote the holdings of your share in a certain fund scheme. You can purchase or even redeem a Mutual Fund at the prevailing Net Asset Value (NAV).
We have elaborated on the best-performing schemes based on categories in the sections below. More often than not, schemes from a specific category will perform the best each season. This could confuse a novice investor and bring about doubts on whether his/her investments were made in the most suitable funds.
In order to get healthy returns from mutual fund investments, it is advisable to keep the following points in mind:
- Do not start new SIPs targeting short-term gain. Continue on the SIP for a minimum period of 5 years to see substantial returns.
- Do not stop your existing SIPs when the returns are low.
- Opt for growth option of mutual funds for increased returns through compounding.
- Do not put lump sum amounts in peak performing equity mutual funds for short-term gains by capitalising on the bull run.
- It should be noted that the bull run may reverse any time and you may not get the chance to exit the fund with significant gains.
- In fact, you may have to book losses instead. Hence, you should invest a lump sum amount in equity mutual funds only after the markets correct from their peaks.
- It is not advisable to move from debt funds to fixed deposits (FDs) for assured returns.
- This is primarily because the complete interest earned from FDs get added to the taxable income of the individual and is taxed as per his/her tax slab.
- This effectively means that the people in the highest tax bracket will get low returns from fixed deposits.
- On the other hand, there are significant tax savings on debt funds that are held for a duration of 3 years or more.
What are the Best Mutual Funds?
Mutual funds are segregated into different types depending on underlying assets, such as gold, debt, or equity. The various forms of mutual funds are hybrid funds, debt mutual funds, and equity mutual funds which have different objectives and risk profiles.
- Determining the best mutual funds option depends on various factors such as risk tolerance, investment horizon, and objectives.
- Equity mutual funds are the best option for long term investment.
- Based on your risk-taking capacity, investment can be made in other sub-categories within equity mutual funds, such as large cap funds, mid-cap funds, and small-cap funds.
- While evaluating a mutual fund’s historical returns, it is very important to remember that one should not look into a single time frame. This is because a certain fund may be featured in the top 5 funds over the past 6 years.
- However, the same fund may not be there even in a list of the best 30 mutual funds during the previous year.
How to Select the Top Performing Mutual funds in India?
The following are the factors that help selecting the top performing mutual funds in India:
- Investment horizon: Mutual funds are mainly of two types, short-term and long-term. If you wish to invest in short-term funds, then invest in stocks and bonds with higher risk that offer high potential returns. Invest in low-risk investments with smaller returns that offer steady growth and are suitable for long-term investment.
- Financial goals: Before making any investment decide your financial goals to opt for the suitable fund category. Consider your risk tolerance, liquidity requirement, time horizon and other factors to decide better.
- Performance of the fund: Evaluate the performance of a particular fund for over five years duration to decide whether to invest in it or not.
- Fund manager experience: Select a fund that has been managed by a fund manager for a long time. A fund managed by a seasoned fund manager is safe to invest in as the manager will have more experience and can guide you through various market situations.
- Expense ratio: Consider a fund category that has an expense ratio of less than 1.00% which is cumulative money that goes in paying advertising costs, salary of fund manager, and other expenses related to the fund.
- Risk tolerance: To have a clear impression about the return from a particular investment, evaluate your risk tolerance before making an investment.
- Tax liability: Some funds are taxed while some are not, hence select the funds depending on your requirment to avoid unnecessary tax liabilities.
How Tax is Applied on Best Mutual Funds in India?
Here is every detail as to how is tax applied on mutual funds in India:
- There two ways to earn from mutual fund investment, and those are capital gain and dividend
- The tax on dividend depends on the current tax slab
- Tax on capital gain depends on the investment period and type of fund
- Short Term Capital Gains are those equity mutual fund investment that are redeemed within one year of investment and are taxed 15%
- Long Term Capital Gains (LTCG) are those equity mutual fund investment that are redeemed after one year and are taxed at 10% for amount more than Rs.1 lakh
- STCG are gains on debt funds are received if fund units are sold before three years and taxed as per current slab
- LTCG are gains on debt funds are received if fund units are sold after three years and are taxed at 20% after indexation
- Tax on capital gain received from hybrid mutual funds depend on the underlying asset
- Then gains from the hybrid fund will be taxed like an equity fund, if 65% of the fund is invested in equities
- If allocation is less than 65%, then the hybrid fund would be taxed like debt fund
Mutual Funds are controlled by an Asset Management Company (AMC) that collects funds from a group of investors and invest these funds in bonds, stocks, and securities.
Different types of Mutual Funds
The following are the different types of mutual funds:
- Debt funds: A debt fund is a type of Mutual Fund that invests in fixed-income securities. Under this fund, your money will be invested in short-term bonds, long-term bonds, securitised funds, floating rate debt, and money market instruments.
- Equity funds: An equity fund is a type of Mutual Fund that invests money primarily in stocks. There are both actively or passively managed funds.
- Equity linked savings schemes: This is an equity Mutual Fund that is close-funded in nature. It helps you save taxes and also helps you grow your wealth. You can enjoy tax deductions as per the Income Tax Act under Section 80C.
- Diversified funds: This type of Mutual Fund allows you to invest your money in diverse sectors or industries. You can spread your investments across various industries in the market.
- Gilt funds: These funds allocate money to securities that are offered by the state and central governments. These funds come without any default risk.
- Index funds: Under this category of Mutual Funds, your money will be invested according to how a stock market index functions. The NAV for these funds will be closely follow the rise or fall in the index.
- Liquid Mutual Funds: Liquid Mutual Funds are investment plans that will allocate funds primarily to money market instruments such as treasury bills, term deposits, certificate of deposits, commercial papers, etc. These funds come with a lower maturity period.
- Debt-oriented hybrid funds: Under this category of Mutual Funds, your money will be primarily invested in debt and the remaining part will be invested in equity. It is a blend of both debt and equity investment.
- Arbitrage funds: These funds are treated as equity plans for taxation purposes. These funds invest both in the cash market and the derivatives market.
- Dynamic bond funds: Your money will be invested in debt and money-market instruments. The maturity of the fund will vary according to the investments that it makes.
The number of Mutual Funds made available to the general public has increased significantly over the past few years. As a result, you now have an impressive number of options to choose from, and regardless of which category you wish to invest in, following are the top 10 Mutual Funds in various categories, as rated by CRISIL.
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DISCALIMER :- I Am Not a Sebi Registered Analyst..All Posts/Calls Shared Are Just For Educational Purpose Only.. Non Advisory, DISCRETIONAL, NO Claims, Rights Resevered..I Am Not Responsible For Your Losses.. Consult Your Financial Advisor Before Taking Any Position