Nov 22, 2017 4 min read

Top Ranking Mutual Funds to Invest in India in 2017

Here are the top ranking mutual fund schemes which can provide excellent returns in the long run.
Generally, people get attracted to the schemes which are rated with five stars by a rating agency like CRISIL. They believe that a five-star rated fund denotes a good brand or an excellent option which can offer them extroverted benefits in their investments.

But, is it true? If yes, then how far! Let’s know about some major points to remember about the top ranking mutual funds:

  • Yes, They Can be a Good Choice: People have different views, and thus their choices vary. The top ranking mutual funds might prove to be a good choice as they earned the high ratings by providing excellent performance in the past. The mutual fund rating agencies rate them only when they fit the conditions to hold the star ratings. So, a high rated fund can be a good choice for investing.
  • But, They Can be Harmful Too: There are times when people invest in the top ranked mutual funds, and later they end up incurring losses. Harsh, but true! Not always a five-star rated fund assures you of good profits. It may happen because of the wrong choice of the category. Suppose, you are an aggressive investor and can bear risk to a good extent. But, just because a fund from debt category is blinking with five stars, you deployed all your money in it. In this case, you may earn some profits or regular income from the debt fund, but you might have missed a great opportunity of creating wealth by investing in the equities despite having the capacity to bear the risk from it.

Henceforth, the two points as mentioned above shows both positive and negative aspect of the top ranking mutual funds. So, it depends on you that how you plan your investment in the top-ranked funds. If you only run after the star ratings, then it may push you in the dark. But, a smart decision considering all other necessary points in investments can prove to be a profitable one.

Here are some of the top ranking mutual funds of all categories in India:

Equity Mutual Funds

  • L&T Infrastructure Growth Fund: From the category of thematic funds, this scheme of L&T Mutual Fund has recorded a good performance in recent past which helped it to gain the five-star ratings from CRISIL for the quarter ended September 2017. It majorly invests in the infrastructure sector. The top sectors of this fund are Construction, Engineering, Communication, and Metals which together hold almost 79.14% of its total assets.
  • Aditya Birla Sun Life Small & MidCap Fund: This scheme of ABSL Mutual Fund was launched in the year 2007, and it remained a consistent performer till the year 2014 and provided stable returns to the investors. The recent performance in the past four years of this fund has made it become one of the best funds. It is currently holding 1st rank under the CRISIL ratings for the quarter ended September 2017.

Debt Mutual Funds

  • ICICI Prudential Long Term Plan (G): A first rank holder in CRISIL ratings for the quarter ended September 2017, this scheme has managed to provide significant income to the investors. The rank remained unchanged from the previous quarter. Its return since launch is recorded at 10.17% which shows a healthy income from the debt category mutual funds.
  • Reliance Gilt Securities Fund (G): One more top-ranked scheme from the debt category which has been holding the five-star ratings of CRISIL for the quarter ended September 2017, and the rank remained unchanged from the previous quarter. It mainly aims to generate optimal risk-free returns by investing in the securities issued by central and state government.

Hybrid Mutual Funds

  • L&T India Prudence Fund (G): It is an equity-oriented balanced fund which aims toward attaining long-term capital appreciation from its equity investments along with generating reasonable returns for the investors from its holdings of debts and securities. Currently, it is holding the second rank under CRISIL ratings for the quarter ended September 2017.
  • HDFC Balanced Fund (G): One more star performer the equity-oriented balanced fund’s category is HDFC Balanced Fund growth plan. It has managed to provide excellent growth to the investors. Being among the favorite funds of the investors, it is holding the assets under management amounting to Rs. 17,073 as on October 31, 2017. You can choose it to invest your hard-earned money if you have an objective of creating long-term wealth along with maintaining stability in income.

ELSS Funds

  • Tata India Tax Saving Fund (G): In the category of tax saving mutual funds, Tata India Tax Saving Fund growth is one of the best performers that has showcased excellent performance in recent past. A first rank holder for the quarter ended September 2017, its return since launch has been recorded at 20.23%. You can get the best of both worlds, i.e., tax savings and wealth creation, by investing in this fund.
  • Aditya Birla Sun Life Tax Relief 96 (G): Recently, this ELSS fund has performed fantastically which helped it to jump from 3rd rank to 2nd rank for the quarter ended September 2017. It is also one of the experts’ recommended funds in the tax saving category.

So, stop wasting much time thinking and start matching the investment objectives of the schemes with that of yours. Get your money invested in the most suitable one to reap higher benefits. All the schemes as mentioned above are recommended by the experts working at MySIPonline.