BEST PERFORMING MUTUAL FUNDS IN INDIA

Best Performing Mutual Fund In India in last 5 years

A mutual fund investment is an investment security type that enables investors to pool their money together into one professionally managed investment. Mutual funds can invest in stocks, bonds, cash or other assets. Mutual Funds are the fastest emerging and the safest investment option for the long term creation of wealth.

The availability of large number of mutual funds in the market has made it a difficult task to select the best plan to suit your requirement, budget and preferences. It requires a significant amount of research and effort to choose mutual funds based on one?s risk appetite that matches one?s investment return needs. One Size Never Fits All. So, a single portfolio of top mutual funds never suitable for every investors.

One should go for equity schemes if he has

1. High risk appetite
2. Long term financial goals
3. Minimum investment horizon of five years

One should go for debt scheme if his risk appetite is low or need some regular income with short term requirements.

Also among equity funds every investors should have a different set of portfolio according to their risk profile. For example

1. A conservative investor should invest in equity-oriented balanced schemes or large cap mutual fund schemes.
2. A moderate investor should invest in diversified and large cap mutual fund schemes.
3. An aggressive investor should pick up mid and small cap funds.

Investor can make a combination of scheme to make a suitable portfolio according to their financial goals and risk appetite. Below is a list of Best performing Mutual Funds which have consistently provided superlative returns and do stand out as better investment choices.

Scheme	Category	NAV	Asset Size (in cr.)	Returns (In %)
				1yr	3yr	5yr
Kotak Select Focus Fund	Large Cap Fund	31.847	11,726	11.8	11.1	20.2
SBI Blue Chip Fund	Large Cap Fund	37.157	12,532	11.9	9.1	17.4
Birla Sun Life Frontline Equity Fund	Large Cap Fund	210.740	14,934	10.0	8.4	16.5
HDFC Small Cap Fund	Diversified Fund	44.916	1,354	37.6	20.1	24.1
Birla Sun Life Advantage Fund	Diversified Fund	407.120	3,665	11.4	10.9	21.6
SBI Magnum Multicap Fund	Diversified Fund	46.066	2,921	15.5	12.3	20.3
Reliance Small Cap Fund	Small and Midcap Fund	44.371	4,637	33.2	22.4	35.6
LT Midcap Fund	Small and Midcap Fund	140.520	1430	23.3	17.5	29.1
Franklin India Smaller Companies Fund	Small and Midcap Fund	59.257	5,492	18.9	15.4	29.7
Mirae Asset Emerging Bluechip Fund	Small and Midcap Fund	48.258	4,178	16.2	17.3	29.9

• Kotak Select Focus Fund

This fund has performed well and beaten its peers by providing highest returns. It has provided 20% annualized returns in last 5 years.

• SBI Bluechip Fund

This fund has beaten the benchmark and category each time in last 5 years. Though it is a large cap fund, it takes some exposure in mid cap too which is currently around 14%.

• Aditya Birla Sun Life Frontline Equity

This large cap fund is one of the most consistent performers and ensures good returns. The portfolio of the fund is heavyweight on financial sector and it has helped it in getting good returns.

• HDFC Small and Midcap Fund

To provide long-term capital appreciation by investing predominantly in Small-Cap and Mid-Cap companies. The fund has provided annualized return of 24% in last five years.

• Birla Sun Life Advantage Fund

The scheme seeks to achieve long-term growth at relatively moderate levels of risk through a diversified investment approach, the investment emphasis of the scheme would be on identifying companies with sound corporate managements and prospects of good future growth.

• SBI Magnum Multicap Fund

Among the multicap schemes, SBI Magnum Multicap has distinguished itself as a steady performer with a reasonably good performance record.

• Reliance Small-Cap Fund

This fund has given a whopping return of 31.52% since its inception, which is an impressive feat. Reliance Small-Cap Fund focuses on generating superior returns despite the high risks by investing in smaller or less significant capitalization companies.

• L&T Midcap Fund

L&T Midcap Fund (Growth) has the potential to grow the invested capital of the investors. The absolute return offered by the scheme in the past years are remarkable.

• Mirae Asset Emerging Bluechip Fund

Since its inception, Mirae Asset Emerging Bluechip Fund is known for its phenomenal return rate of 29.10%. This fund is known for its ability to manage the losses that occur during market correction and consistently outperforming its peers to set a new benchmark.

• Franklin India Smaller Companies

Small cap funds tend to be highly volatile but this fund has managed to have standard deviation lower than the category by 2% in both, 3 years and 5 years. It invests in low capital intensive business having high growth potential.

 

Mutual Funds investments are safer bets however they are subject to market risks therefore a proper evaluation of risk is always advisable before making investments. Some of the schemes do consist mid cap and Small cap funds which are more risky than their counterparts however the risk reward is attractive and they are ideal candidates for a portfolio of diversified mutual funds.

How to invest in Mutual Funds

Why to Invest in Mutual Funds

1. Higher Returns

Higher Returns is what investors seek from their investments. Mutual funds provide the right avenue for investing in a variety of market-linked instruments. It has delivered superior returns compared to other traditional investment options, as you can invest on a diverse range of sectors and industries.

2. Professionally Managed

Mutual funds are professionally managed by fund managers, whose every day job is to track the markets and manage investments. Investors may not have the skills and knowledge to manage your investment or do not want to spend the time. Portfolio managers decide where to invest your fund, and when to buy and sell investments.

3. Disciplined Investing

Investing in Mutual Fund through Systematic Investment Plan (SIP) trains you to become a disciplined investor. ?You are committing to invest a certain amount every month, such habit instils to take a productive action towards your future.

4. Less/ No lock-in

Almost all traditional investing instruments come with long lock-in periods, which make it hard to redeem your investment, in times of emergencies. On the other hand, Mutual funds, broadly come with less, if not no, lock-in periods. Investors has the flexibility to redeem their money when they need it. Even tax-saving Equity Linked Savings Schemes (ELSS) come with a short lock-in of only 3 years.

5. Diversification

We?ve all heard the adage ?Don?t put all your eggs in one basket?. Mutual funds helps in spreading your investments across asset classes and stocks, to mitigate risks to a large extent. Not all investments perform well at the same time. Holding a variety of investments may help offset the impact of poor performers, while taking advantage of the earning potential of the rest.

6. Convenience

The online process of Mutual Fund is offered by many companies. Making a lump sum investment or starting a SIP can be done online. Even tracking the performance of your investments can be done easily online. In short, mutual funds today, provide the right ground for investing with the least effort, and with the potential for maximum returns.

7. Liquidity

Investors have the advantage of getting their corpus back promptly while investing through mutual funds. Redemption can be done at any point in time. The whole process takes around about a week?s time but if your SIP is already matured, you can get your money back in three days.