Top 5 Mutual Fund Schemes You Should Invest in Now
There is no doubt that the increasing awareness and popularity of mutual funds have made us all look for the schemes which have multiplied investors’ money over a period. And, in the process, the first thing that a newbie does is searching online, ‘Top mutual fund schemes’. No wonder it is the most searched keyword!
As you search, you might get various lists targeting the flavor of the season or a class of investors. The thing is that even after going with the list, one might feel disappointed after a year or two. And, thus end up questioning, ‘Have I picked the right mutual fund schemes?’
To help you in this situation, we, at MySIPonline, have come up with our list of best performing mutual funds that you can choose to invest in considering the time. The list has schemes from different categories including large-cap & mid-cap scheme, ELSS or tax saving scheme, multi-cap scheme, and hybrid fund. So without any further ado, let’s get started!
SBI Bluechip Fund
This scheme of SBI Mutual Fund aims to provide long-term capital appreciation to investors by investing in selective large-cap companies. SBI Bluechip Fund has successfully beaten both its benchmark and category in each of the past five years. It has the maximum allocation to Financial sector, thus holding 8.01% assets of HDFC Bank as on April 30, 2018. Despite its name, it is inclined towards mid-cap stocks, containing about 8.47% of them. The fund is managed by Ms. Sohini Adnani who is handling this scheme since September 2010.
Motilal Oswal Multicap 35 Fund
Being an equity-oriented multi-cap fund, it primarily invests in a maximum of 35 equity and related securities across multiple market caps. It is currently under the watch of Mr. Gautam Sinha Roy who is handling the scheme since May 2014. With a small track record of just four years, Motilal Oswal Multicap 35 Fund has made its way in the list of top performers. Reason being that it has beaten both its benchmark and category by a substantial margin in the past three years. The point that it is a newbie in the investment market should not be ignored as the quality of returns and investment strategy of the fund manager is yet to be tested in the bear phase.
Aditya Birla Sun Life Tax Relief 96 Fund
It is an ELSS scheme which aims to provide long-term capital growth to its investors by investing about 80 of its total assets in equities while the remaining in debt and money-market instruments. The fund manager Mr. Ajay Garg follows the blend of the top-down and bottom-up approach in the selection of the stocks. With assets under its watch amounting to Rs 6,060 crore, it has an equal allocation to large and mid-cap companies. Going by its trailing returns, Aditya Birla Sun Life Tax Relief 96 Fund has been successful in providing whopping returns of 22.21%, 16.19%, and 12.24% in five, seven, and ten years, respectively as on July 1, 2018.
L&T India Value Fund
Another multi-cap which aims to provide capital appreciation in the longer tenure, L&T India Value Fund invests its capital in diversified grounds with a higher focus on undervalued securities. The fund managers Mr. Karan Desai and Mr. Venugopal Manghat might additionally invest in foreign securities in international markets with an aim to generate better returns. They follow value investing style while most of the other small and mid-cap schemes hold greater trust on growth investing style.
ICICI Prudential Equity & Debt Fund
It is an equity-oriented hybrid scheme with total assets under management amounting to Rs 28, 807 crores as on April 30, 2018. ICICI Prudential Equity & Debt Fund seeks to generate both capital appreciation in the long-term and income source for its investors. The fund invests a minimum of 65% in equities, and this ratio can go up to 80 percent depending on the markets’ conditions. Mr. Atul Patel, Mr Manish Banthia, Mr. Sankaran Naren have been managing this fund collectively by following a blend of value and growth investing styles and taking aggressive duration calls at times.
For any naive investor, this list could be a good start. Just step into the world of possibilities as this can be your chance to change your future. Here, the ELSS scheme can be the best pick for an investor who has just started following the trend of mutual fund investments. Such schemes are also called as Tax Saving schemes as they provide the benefit of tax saving of up to Rs 1.5 lakh under section 80C of the Income Tax Act. Due to the mandatory lock-in period of 3 years, the schemes act as an ideal pick for new investors as the time helps them to deal with the volatility of the equity market.
Secondly, there come balanced funds which are too considered a good choice for novices. These funds which are inclined towards equity help investors to enjoy greater returns without being exposed to much volatility. Further, a regular investor who is acquainted with the ups and downs of the stock market can pick the recommended mid-cap scheme as it invests across market capitalization, including large-caps, mid-caps, and a small portion in the small-caps as well.
For the people who are risk-averse, the large-cap fund is the best-suited product. Such investment can offer you modest returns along with stability. However, if you are ready to take your chances and stomach high risk with an aim to enjoy high returns, the mid-cap fund will serve your purpose.
In the final note, it should be noted that investments should be done keeping in mind one’s risk appetite, investment objective, and tenure. To seek a personalized recommendation from experts in this context, connect with us via phone call or email. The experts at MySIPonline are all prepared to provide you with solutions to all your problems.
- This Independence Day, Let's Pledge for Freedom from Financial Worries2916 min read Aug 14, 2018
- Are Balanced Funds Better Than Balanced Advantage Funds?2984 min read Aug 02, 2018
- 7 Points to Ponder While Investing in Small Cap Funds10183 min read Jul 19, 2018