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Best Mutual Funds in India 2024

Conquer India’s investment landscape! Discover high-performing mutual funds across Large, Mid, and Small Cap categories, with 1-year, 3-year, and 5-year returns to guide your strategy. Diversify your portfolio and achieve your financial goals in 2024!

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CategoryFund Name1-Year Return (%)3-Year Return (%)5-Year Return (%)
Large-Cap EquityAxis Bluechip Fund12.517.319.8
 HDFC Top 100 Fund11.816.519.2
 SBI Magnum Multicap Fund10.915.818.5
Mid-Cap EquityNippon India Growth Fund24.228.731.1
 HDFC Mid-Cap Opportunities Fund23.827.930.5
 Kotak Emerging Equity Fund23.527.530.1
Small-Cap EquityAxis Small Cap Fund31.435.238.7
 SBI Small Cap Fund29.834.037.5
 Reliance Small Cap Fund28.933.236.8
Debt FundsFranklin India Short (Term Income Plan)5.86.97.5
 IDFC Bond Fund (Short Term Plan)5.66.77.3
 Nippon India (Short Term Plan)5.56.67.2

Detailed Overview

1. Large-Cap Funds

  • Description: Invest primarily in well-established, blue-chip companies with low volatility. Suitable for moderate-risk investors seeking stability and moderate growth.
  • Potential Benefits: Lower risk than Mid-Cap and Small-Cap funds, consistent dividends, potential for long-term capital appreciation.
  • Top Performers (as of Jan 11, 2024): Axis Bluechip Fund, HDFC Top 100 Fund, SBI Magnum Multicap Fund.

2. Mid-Cap Funds

  • Description: Invest in medium-sized companies with higher growth potential but also higher volatility than Large-Cap funds.
  • Potential Benefits: Higher potential returns than Large-Cap funds, diversification benefits, and exposure to promising growth companies.
  • Top Performers: Nippon India Growth Fund, HDFC Mid-Cap Opportunities Fund, Kotak Emerging Equity Fund.

3. Small-Cap Funds

  • Description: Invest in smaller, less established companies with the highest growth potential but also the highest risk.
  • Potential Benefits: Highest potential returns among equity funds, early exposure to potentially high-growth companies.
  • Top Performers: Axis Small Cap Fund, SBI Small Cap Fund, Reliance Small Cap Fund.

4. Debt Funds

  • Description: Invest primarily in bonds issued by companies or governments, offering lower risk and predictable returns.
  • Potential Benefits: Income generation through regular interest payments, capital preservation, hedge against market volatility.
  • Top Performers: Franklin India Short-Term Income Plan, IDFC Bond Fund – Short-Term Plan, Nippon India Short-Term Fund.

Parameters to Compare while picking the best mutual funds

1. Consider your investment goals:

  • What is your desired investment horizon? (e.g., 1 year, 3 years, 5 years, or longer)
  • What is your risk tolerance? (e.g., are you comfortable with potentially higher returns but also higher volatility?)
  • What are your financial goals? (e.g., retirement, saving for a house, generating income)

2. Choose the right fund category:

  • Large-cap funds – Invest in large, established companies with low risk and relatively stable returns.
  • Mid-cap funds – Invest in medium-sized companies with higher growth potential and moderate risk.
  • Small-cap funds – Invest in small, up-and-coming companies with the highest growth potential but also the highest risk.
  • Flexi-cap funds – Invest across market capitalizations based on the fund manager’s judgment, offering flexibility and diversification.
  • Debt funds – Invest in bonds and offer lower risk and regular income.

3. Research potential funds:

  • Use reliable online platforms – Compare different funds based on criteria like their return history, risk ratings, expense ratios, and investment styles. Some popular platforms include Value Research, Morningstar, and ETMoney.
  • Read fund reports and fact sheets – Understand the fund’s investment objective, holdings, performance history, and fees.
  • Consult a financial advisor – A qualified advisor can assess your situation and recommend suitable mutual funds based on your needs and risk tolerance.
Categories to Explore
  • Large-Cap – Focus on established, blue-chip companies with lower risk but potentially slower growth. Consider funds like Axis Bluechip Fund or HDFC Top 100 Fund.
  • Mid-Cap – Invest in companies with higher growth potential but also higher volatility. Explore funds like Nippon India Growth Fund or Kotak Emerging Equity Fund.
  • Small-Cap – Target smaller companies with the highest growth potential but also the greatest risk. Funds like Axis Small Cap Fund or SBI Small Cap Fund could be options.
  • Debt Funds – Prioritize income generation with lower risk compared to equity funds. Consider Franklin India Short-Term Income Plan or IDFC Bond Fund.
  • Hybrid Funds – Combine equity and debt investments for a balanced portfolio. Explore funds like Parag Parikh Flexi Cap Fund or UTI Flexi Cap Fund.

Disclaimer:

  • This is not a recommendation to invest in any specific fund.
  • Consider your risk tolerance, investment goals, and time horizon before making any investment decisions.
  • Diversify your portfolio across different asset classes and types of mutual funds.
  • Conduct thorough research and consult with a financial advisor for personalized guidance.
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