Mutual Funds Schemes
The first question that comes to an investor’s mind is that what are the top mutual fund schemes to put money their money in. People prefer to do proper research of the various options before choosing a mutual fund they would like to invest in. Some people even like to discuss with their friends or colleagues to figure out the best funds in this extremely volatile financial market. The investor has to figure out how much risk he is willing to bear and then select the scheme suitable for him. Over the years people have become more willing to invest in mutual funds as a long-term investment hence, the cash flow in mutual funds has been increasing over the years.
The rating systems to analyze the returns from mutual fund schemes include CRISIL, Morning Star, ICRA, etc. Here is a list of the top-rated mutual fund schemes for the year 2019-2020 under various equity mutual fund categories namely, Large Cap Schemes, Mid Cap Schemes, Small Cap Schemes, Multi-Cap Schemes, ELSS (Equity Linked Saving Schemes):
Top-rated Large Cap Equity Mutual Funds:
- ICICI Prudential Bluechip Fund
- Aditya Birla Sun Life Frontline Equity Fund
- SBI Bluechip Fund
- Reliance Large Cap Fund
- India Bulls Bluechip Fund
- Essel Large Cap Equity Fund
- JM Core 11 Fund
Top-rated Mid Cap Equity Mutual Funds:
- Franklin India Prima Fund
- HDFC Mid-cap Opportunities Fund
- Kotak Emerging Equity Scheme
- Mirae Asset Emerging Bluechip Fund
- L&T Midcap Fund
- Sundaram Mid Cap Fund
- BNP Paribas Mid Cap Fund
- Motilal Oswal Midcap 30 Fund
Top-rated Small Cap Equity Mutual Funds:
- Franklin India Smaller Companies Fund
- SBI Small Cap Fund
- L&T Emerging Businesses Fund
- Aditya Birla Sun Life Small Cap Fund
- Reliance Small Cap Fund
- HDFC Small Cap Fund
Top-rated Diversified/Multi-Cap Equity Mutual Funds:
- Franklin India Equity Fund
- Mirae Asset India Equity Fund
- Aditya Birla Sun Life Equity Fund
- Motilal Oswal Multi-Cap 35 Fund
- Kotak Standard Multicap Fund
- Principal Multi-Cap Growth Fund
- IDFC Focused Equity Fund
- SBI Magnum Multi-Cap Fund
Top-rated ELSS (Equity Linked Saving Schemes):
- Franklin India Taxshield Fund
- Axis Long Term Equity Fund
- Aditya Birla Sun Life Tax Relief’96 Fund
- Tata India Tax Savings Fund
- IDFC Tax Advantage (ELSS) Fund
- DSP Black Rock Tax Saver Fund
- L&T Tax Advantage Fund
Top-rated Hybrid Equity (Balanced) Mutual Funds:
- HDFC Hybrid Equity Fund
- ICICI Pru Equity & Debt Fund
- Aditya Birla Equity Hybrid ‘95 Fund
- Principal Hybrid Equity Fund
- SBI Equity Hybrid Fund
- L&T Hybrid Equity Fund
The aggressive hybrid equity-oriented schemes are the most suitable option for beginner investors. In this scheme, investment is made up of 60-80 percent of equity and 20-30 percent of debt. These are balanced schemes and hence they are less volatile than other equity schemes. This is the best option for those looking for long term investments with relatively lower volatility.
It is important to consider various factors before investing in mutual funds. Some of these factors include Choosing the right type of fund according to your needs (such as low or high risk, short-term or long-term, etc.), shortlist the best mutual funds and select the most suitable fund, diversification of the portfolio by investing in more than one mutual fund, choosing SIPs (Systematic Investment Plans) over lump-sum investments, keeping the KYC documents completely updated otherwise one cannot invest in a mutual fund, opening of a net banking account and seeking advice from the mutual fund experts.
Investing in a mutual fund has many benefits some of which are liquidity, diversification of funds, well-regulated funds by SEBI (Securities and Exchange Board of India) and management of the funds by the expert fund managers. It is the best long-term investment option available