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Top 10 mutual funds to invest

We have chosen two schemes from five categories - aggressive hybrid, large cap, mid cap, small cap and multi cap schemes which we believe should be enough for regular mutual fund investors. Here is the list of top mutual funds hand-picked by us.

ET Online|
Updated: Oct 29, 2019, 12.21 PM IST
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Which are the top 10 mutual funds to invest?

Many investors start their investment journey with this ubiquitous question. Often, they seek the help of a search engine. In some cases, it would be a rhetorical query to friends or colleagues. In short, most new mutual fund investors want a ready-made list of schemes to start investing in mutual funds.

However, an online search would often take these investors to websites which list mutual fund schemes based on their performance over a very short period. Sometimes, schemes from a single category may dominate the list because it is the flavour of the season.

Simply put, the query is unlikely to produce any meaningful results. Even if one finds a list that is appealing, the conviction to follow it up with real investments won't be there. No wonder, many investors keep wondering whether they picked up the right schemes even after investing in them for a few years.

That is why ETMutualFunds.com decided to put out a list of top 10 mutual fund schemes. We have chosen two schemes from five different categories - aggressive hybrid, large cap, mid cap, small cap and multi cap schemes – which we believe should be enough for regular mutual fund investors. Here is the list of schemes:

  • ICICI Prudential Equity & Debt Fund
  • Mirae Asset Hybrid Equity Fund
  • Axis Bluechip Fund
  • ICICI Prudential Bluechip Fund
  • L&T Midcap Fund
  • HDFC Mid-Cap Opportunities Fund
  • L&T Emerging Businesses Fund
  • HDFC Small Cap Fund
  • Motilal Oswal Multicap 35 Fund
  • Kotak Standard Multicap Fund

Aggressive hybrid schemes (or erstwhile balanced schemes or equity-oriented hybrid schemes) are ideal for newcomers to equity mutual funds. These schemes invest in a mix of equity (65-80 per cent) and debt (20-35). Because of this hybrid portfolio they are considered relatively less volatile than pure equity schemes that invest the entire corpus only in stocks. Aggressive hybrid schemes are the best investment vehicle for very conservative equity investors investors looking to create long-term wealth without much volatility.

Some equity investors want to play safe even while investing in stocks. Large cap schemes are meant for such individuals. These schemes invest in top 100 stocks and they are relatively safer than other pure equity mutual fund schemes. They are also relatively less volatile than mid cap and small cap schemes. In short, you should invest in large cap schemes if you are looking for modest returns with relative stability.

A regular equity investor (with a moderate risk appetite) looking to invest in the stock market need not look beyond multi cap mutual funds or diversified equity schemes. These schemes invest across market capitalisations and sectors, based on the view of the fund manager. A regular investor can benefit from the uptrend in any of the sectors, categories of stocks by investing in these schemes.

What about aggressive investors looking to pocket extra returns by taking extra risk? Well, they can bet on mid cap and small cap schemes. Mid cap schemes invest mostly in medium-sized companies and small cap funds invest in smaller companies in terms of market capitalisation. These schemes can be volatile, but they also have the potential to offer superior returns over a long period. You can invest in these mutual fund categories if you have a long-term investment horizon and an appetite for higher risk.

Looking for mutual fund SIP portfolios to start investing to create wealth over a long period? Here are our recommended mutual fund SIP portfolios for three different risk profiles - conservative, moderate, aggressive - and three different basket of SIP investments. For more, read: Best mutual fund SIP portfolios to invest in 2019
Finally, any search starting with the word 'best' is unlikely to offer you the best solution. You should always choose a scheme that matches your investment objective, horizon, and risk profile. If you do not understand these basic concepts or totally new to mutual funds and investing, you should always seek the help of a mutual fund advisor.
Scheme Name
NAV
AUM
(in Rs Cr)
Expense Ratio
Returns
3 M
6 M
1 Year
3 Year
26.8254
13513.08
1.81
10.45
7.66
11.48
10.51
31.4600
9814.16
1.8900257
9.36
4.82
6.02
10.86
50.4785
8334.28
2.04
8.08
7.91
13.86
11.36
43.2500
24132.11
1.66
8.89
6.53
8.75
11.35
40.9060
23585.35
1.87
9.84
8.65
12.31
10.03
55.6930
8868.42
1.92245634
9.98
11.01
14.56
14.42
53.8820
3417.93
2.05
6.92
5.52
1.14
8.91
35.1060
8032.18
1.85
6.57
3.32
2.79
6.95
135.2100
23950.41
1.65
6.25
4.19
6.53
9.10
228.7910
5631.03
1.95
10.33
9.89
12.23
9.79
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