Mutual funds are one of the most popular investment options in India, thanks to their ability to offer potentially high returns while minimizing risk. While all mutual funds carry a certain degree of risk, some funds have consistently performed better than others, providing investors with attractive returns over time. In this blog, we’ll take a look at some of the best returns mutual funds in India.
Mirae Asset Large Cap Fund:
This fund has consistently delivered high returns, making it one of the top-performing mutual funds in India. The fund invests primarily in large-cap stocks, which are known for their stability and long-term growth potential. Over the past five years, the fund has generated an average annual return of over 18%.
Axis Bluechip Fund:
Another top-performing mutual fund in India, the Axis Bluechip Fund focuses on investing in blue-chip companies with strong fundamentals. The fund has a track record of consistent returns and has generated an average annual return of over 16% over the past five years.
SBI Small Cap Fund:
While small-cap funds are known for their higher risk, they also have the potential to deliver higher returns. The SBI Small Cap Fund is one such fund that has consistently performed well and generated an average annual return of over 22% over the past five years.
HDFC Mid-Cap Opportunities Fund:
As the name suggests, this fund focuses on investing in mid-cap companies with strong growth potential. Over the past five years, the fund has generated an average annual return of over 19%.
ICICI Prudential Equity & Debt Fund:
This fund invests in a mix of equities and debt, providing investors with a balanced portfolio that offers both stability and growth potential. The fund has generated an average annual return of over 13% over the past five years.
While these are just a few of the best returns mutual funds in India, it’s important to remember that past performance is not a guarantee of future returns. It’s essential to conduct thorough research and due diligence before investing in any mutual fund to ensure that it aligns with your investment goals and risk tolerance. It’s also recommended to consult with a financial advisor to determine the best investment strategy for your individual needs.
Kotak Standard Multicap Fund:
This fund invests in a mix of large, mid, and small-cap companies, providing investors with a diversified portfolio that can weather market fluctuations. Over the past five years, the fund has generated an average annual return of over 16%.
Aditya Birla Sun Life Tax Relief 96 Fund:
This fund is a tax-saving mutual fund that invests primarily in equities, providing investors with both tax benefits and growth potential. The fund has consistently delivered high returns and generated an average annual return of over 15% over the past five years.
Nippon India Small Cap Fund:
Another small-cap fund that has consistently performed well, the Nippon India Small Cap Fund has generated an average annual return of over 21% over the past five years. The fund focuses on investing in small-cap companies with strong fundamentals and growth potential.
Franklin India Smaller Companies Fund:
This fund is another small-cap fund that has delivered impressive returns over time. The fund invests in small-cap companies that are poised for growth and has generated an average annual return of over 19% over the past five years.
DSP Midcap Fund:
This mid-cap fund has consistently outperformed its benchmark index and generated an average annual return of over 19% over the past five years. The fund invests in mid-cap companies that have strong growth potential and fundamentals.
Conclusion
It’s important to note that while these mutual funds have a track record of delivering high returns, they are not without risk. It’s crucial to understand the risks associated with mutual fund investments and conduct thorough research before investing. Additionally, it’s recommended to invest in mutual funds for the long term to maximize returns and minimize risk. A financial advisor can also provide guidance on selecting mutual funds that align with your investment goals and risk tolerance.
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Frequently Asked Questions (FAQs)
Q.What are mutual funds?
Mutual funds are a type of investment vehicle that pools money from multiple investors to invest in a variety of assets such as stocks, bonds, and other securities. The investments are managed by professional fund managers who aim to maximize returns while minimizing risk.
Q.What are the types of mutual funds in India?
There are several types of mutual funds in India, including equity funds, debt funds, hybrid funds, index funds, and exchange-traded funds (ETFs). Equity funds invest primarily in stocks, debt funds invest in fixed-income securities such as bonds, hybrid funds invest in a mix of stocks and bonds, index funds track a specific market index, and ETFs are traded like stocks on a stock exchange.
Q.What is the minimum investment required to invest in mutual funds in India?
The minimum investment required to invest in mutual funds in India varies depending on the fund. Some funds may have a minimum investment requirement of Rs. 500, while others may require a minimum investment of Rs. 5,000 or more.
Q.How are mutual fund returns taxed in India?
Mutual fund returns are taxed differently based on the holding period. Short-term capital gains (STCG) from mutual funds held for less than one year are taxed at a rate of 15%, while long-term capital gains (LTCG) from mutual funds held for more than one year are taxed at a rate of 10% (without indexation) or 20% (with indexation). Dividends from mutual funds are taxed at the hands of the investor at their applicable tax slab rate.
Q.Can I invest in mutual funds through a systematic investment plan (SIP)?
Yes, investors can invest in mutual funds through a SIP, which allows them to invest a fixed amount at regular intervals such as monthly, quarterly, or yearly. This helps in averaging out the cost of investment and reduces the impact of market volatility.
Q.How do I select the best mutual fund to invest in?
Investors should consider factors such as investment goals, risk tolerance, fund performance, expense ratio, fund manager experience, and asset allocation strategy when selecting a mutual fund to invest in. Consulting with a financial advisor can also provide valuable insights on selecting the best mutual fund for individual needs.
