As the era of economic uncertainty dawns, seeking financial instruments that offer a semblance of safety and security has indeed become a challenging task. Not only does it require you to carefully sort through various market tools but it also involves conducting extensive research, diligent comparison, and prudent analysis. This is why it comes as no surprise that most investors have begun to place their trust on different types of mutual funds.
Being professionally managed and highly diversified, mutual funds are nothing short of a sustainable haven for those who are trying to create wealth, generate income, and accumulate capital. They empower you to narrow your risk profile and maximise your reward potential. However, as an investor, you need to be extremely careful while selecting a specific mutual fund to invest in.
In order to make your job easier, here is a list of top 10 mutual funds which can yield good returns while helping your corpus grow.
1. Axis Bluechip Fund (G)
Ranked at the top of the large-cap fund category, the Axis bluechip fund (G) provides annualised returns ranging between 13% to 16%. It aims to achieve capital appreciation by investing in open-ended equities of companies in the banking, finance, technology, and real estate sector. The fund has an exit load of 1% and requires a minimum investment of Rs. 5,000.
2. L&T Mid-Cap Fund (G)
Launched as an open-ended growth fund in 2004, the L&T Mid-cap fund (G) is primarily invested in the equity stocks of leading organisations in the chemical, engineering, and pharmaceutical sector. Even with a minimum investment amount of Rs. 5,000 and an exit load of 1%, the fund generates returns to the tune of 18% to 23% in the longer run.
3. HDFC Small Cap Fund
Considered to be the best performing fund in the small-cap category, the HDFC small cap fund has consistently provided 19% returns over the last five years. By investing in small cap companies, the fund aims to generate income for its investors. It is largely invested in pharmaceutical, technology, and automotive firms. This fund too requires a minimum investment of Rs. 5,000 and has an exit load of 1%.
4. Mirae Asset India Equity Fund (G)
Since its inception in 2008, the Mirae Asset India equity fund has been ranked at the top of the multi-cap funds category. Being an open-ended scheme with a minimum investment of Rs. 5,000 and an exit load of 1%, this fund has 96% of its assets allocated to equity holdings of various prominent companies. The returns it yields usually range from 15% to 18% on an annualised basis.
5. Axis Long-Term Equity Fund (G)
The Axis long-term equity fund (G) is essentially an equity linked savings scheme (ELSS) which provides numerous tax benefits under section 80 (C) of the Income Tax Act, 1961. This fund does not charge any exit load and requires a minimum investment of just Rs. 500. Its average returns over the last 3 years have ranged between 11% and 19%.
6. Invesco India Growth Opportunities Fund (G)
Currently ranked as number 1 in the large and mid-cap fund category, the Invesco India growth opportunities fund (G) has 95% of its assets invested in equities of the banking, finance, and oil & gas sector. Like its counterparts, the fund charges an exit load of 1% and has a minimum investment requirement of Rs. 5,000. Its long-term returns are around 16%.
7. HDFC Mid-Cap Opportunities Fund (G)
First introduced in 2007, the HDFC mid-cap opportunities fund is fundamentally an open-ended, growth oriented fund which invests in equities of mid-cap companies. Quite like its peers, this fund also carries an exit load of 1% and a minimum investment amount of Rs. 5,000. However it has posted returns as high as 20% over a 5 year tenure.
8. L&T Emerging Businesses Fund
Promising returns in the range of 11% to 16%, the L&T emerging businesses fund invests in organisations from sectors as varied as engineering and manufacturing. Its primary intent is to facilitate the growth of emerging companies and reap the rewards of this progress. This open-ended fund has an exit load of 1% and requires a minimum investment of Rs. 5,000.
9. Motilal Oswal MultiCap 35
The Motilal Oswal Multicap 35 fund was launched in 2014 with the basic objective of achieving capital growth. It focuses on investing in thirty five equity stocks across different sectors with varying market capitalisation levels. The fund has an exit load of 1% and requires a minimum investment amount of Rs. 5,000. Its annualised returns are approximately 14%.
10. Aditya Birla SL Tax Relief ’96 (G)
Considered to be the best fund under ELSS category, the Aditya Birla SL Tax relief ’96 scheme has provided a constant rate of return in the last 5 years. More so, the fund is highly tax efficient. 80% of the its holdings are lodged in equities while the remaining 20% are invested in debt instruments. This fund charges no exit load and requires a minimum investment amount of only Rs. 500.
The Way Forward
If you are looking for the best way to invest in funds that yield good returns, online platforms like OroWealth can come to your aid. With their comprehensive strategy, they can help you perform a detailed fund comparison based on measurable metrics. Additionally, their dedicated team can also equip you to build a smart portfolio. As the economic scenario turns more complex, mutual funds are likely to become a greatly efficient and effective investment instrument in the near future.