Best Mutual Funds in India to Invest in 2020
Hey, are you still following the traditional way for money investments like banks, post offices, gold, bonds etc? Those are fine but are you satisfied by the interest rates or the returns that you will get from your investment? If you want some good returns from either short-term or long-term investments go for the best mutual funds in India 2020 which have gained a lot of popularity these days. But to select best mutual funds is not so easy so we have done our research and come with “Best Mutual Funds in India“.
There are various types of mutual funds available but equity funds are the preferred ones. Now a question is arising in your mind “Which best mutual funds, I can choose to get the highest return?” As a answer to this question we are preparing this article for you. Here we will be analyzing the top best mutual funds in India 2020.
Yes it is very much true that investing in mutual funds can be risky but there is risk in everything that you do in life. There is also a chance to get higher returns than any other money investment options if you invest in best mutual funds.
So we suggest you to take some risk and go for the best mutual funds in India for investment but yes as a beginner always choose the ones that have low market risk especially the large cap ones.
Without wasting any more time, let’s get started and check the factors to select the best mutual funds!
Why invest in Best Mutual Funds?
Due to very less returns from the traditional savings schemes like RD, FD, etc. Most of the people are moving towards best mutual funds or stock market as they will give you higher returns if you chose the best one. To invest in Best Mutual funds in India you can invest by lumpsum or by SIP.
Let’s take an example of Recurring Deposit; you will get a maximum of 7.2% whereas in best mutual funds the average return is nearly 15% so you are doubling your benefit. Not only this, if you increase your period of investment you will get more returns.
Type of mutual funds:
Since we will be talking about equity funds here so let us see the types of equity funds. They can be large-cap, mid-cap, multi-cap, small-cap, etc.
- Large-cap: The funds which have low market risk and the reason is pretty simple. The large-cap companies are mainly involved here, large-cap companies mean those which are much stable and well-established. These funds deliver steady returns as compared to other types. Before selecting a best mutual funds you should check the market capitalization.
- Mid-cap: These funds have a slightly higher risk than large-cap but lower than small-cap ones. The returns may be high than the large-cap funds because they want to expand more but decline more which means investors can face loss more than large-caps when the economic market goes down.
- Small-cap: The underlying companies of these funds are young like start-ups so they want to expand them very fast hence investors will get more returns but the risks are very high during an economic downturn. These are suitable for those investors who can have a high risk-taking capacity because there is very less guarantee on the fact that investors will not face losses in these funds.
- Multi-cap: You can think these as a mixture of all the above because the portfolio consists of large-cap, mid-cap, and small-cap companies. These funds are less risky than mid-cap and small-cap ones, so new investors can also go for these as a second choice after large-cap.
How to choose which Mutual Fund to go?
There are certain parameters that you should consider before investing orsekecting best mutual funds. Some parameters include:
- Financial Goal – This indicates whether you want to invest in the short-term or long-term, this is very important as different mutual funds have different features.
- Risk – In these cases, always there is a risk so you must think about that before stepping in this market that whether you can tolerate if you face any loss or so. This is a very important factor to consider as your investment decisions are based on this. If you are an investor who want high returns and comfortable in taking risks then you can go for small-cap or mid-cap. But if you are not so ready to take up risk then large-cap or multi-cap ones are suitable for you.
- AUM – Fund size or AUM is an important factor to consider before choosing one and even the expense ratio is important. This AUM determines the total number of assets that is held by the fund, more the fund size more secure the fund is. Large-cap funds always have higher AUM than the others because stable companies can of course invest more than the young ones. Best Mutual Funds have generally moderate or large AUM size.
There are some other factors like the expertise of the managers, fund managers must be experienced enough to understand the market changes. Keeping all these in mind, let us dive into the top 10 best mutual funds in India (Equity Segment).
Best Mutual Funds in India 2020:
1.Axis Bluechip Fund–Direct Plan–Growth
This is one of the equity large-cap funds with a low risk that you can opt for. This fund has 95.73% investment in stocks of India out of which 83.94% is in large cap stocks while 1.69% is in mid-cap ones. The fund size(AUM) of this is Rs. 16763.73 Crores and the expense ratio is 0.56% with Shreyash Devalkar being the fund manager. If you invest for 1 year then the absolute returns will be 9.97% which is higher than the category average of 7.40%. The objective of this scheme is to achieve a capital gain by investing in a diversified portfolio comprising various Large Cap companies.
2. Canara Robeco Equity Diversified–Direct Plan–Growth
Want to invest in an equity multi-cap fund with low risk? Thus we have selected this for you. This fund has 94.8% investment in Indian stocks with 60.91% in large-cap, 17.22% in mid-cap, and 6.26% in small-cap stocks. The fund size(AUM) for this stock is Rs. 2280.01 Crores with an expense ratio of 0.82%. Miyush Gandhi and Shridatta Bhandwaldar are the fund managers. Investment for 1 year will provide you an absolute return of 18.37% thus higher than the category average of 10.13%. The scheme objective is very simple to get more capital gain by investing in equity-related securities. This is one of the Best Multi Cap Fund to invest.
3.Axis Midcap Fund–Direct Plan–Growth
We have selected this mid-cap equity fund with a moderate risk so that you get an overview of it. The fund has 89.63% of investment in Indian stocks out of which 65.72% is in mid stocks, 9.03% in large, and 7.23% in small-cap stocks. With Shreyash Devalkar as the fund manager, the size of the fund(AUM) is Rs. 6306.68 Crores, and the expense ratio stands at 0.58%. For a period of 1-year investment, the absolute returns will be 22.93% which is higher than the category average(18.25%). This is one of the Best Mid Cap Fund to invest. By investing in Mid Cap Companies the goal is to achieve higher capital appreciation.
4.Canara Robeco Bluechip Equity Fund–Direct Plan–Growth
Let us take a look at one more equity large-cap fund with low risk. The fund has a 95.57% investment in Indian stocks out of which 76% is in large-cap ones while 10.18% in mid-cap. The fund size(AUM) is Rs.701.72 crores and the expense ratio is 0.99% with Sanjay Bembalkar and Shridatta Bhandwaldar as the managers. You will get an absolute return of 18.45% which is higher than the capital average of 7.40% if invested for 1 year. By investing in Large Cap companies that make a diversified portfolio scheme goal is to get high capital gains. Currently this is one of the Best Large Cap Fund.
5.Kotak Small Cap Fund–Direct Plan–Growth
Though small-cap funds have moderate to high risk, you can go for this equity small-cap fund if you wish. This fund has 98.4% investment in Indian stocks among which 78.16% is in the small-cap ones with 2.85% in large and 16.37% in mid-cap. The fund size(AUM) is Rs.1667.02 Cr and the expense ratio is 0.72% with Pankaj Tibrewal as the fund manager. For an investment of duration 1-year, the absolute returns is 25.38% which is almost double the category average (13.57%). The goal of this scheme is to get high capital gains by investing in small-cap companies.
6.PGIM India Midcap Opportunities Fund–Direct Plan–Growth
This is one of the equity mid-cap funds with a moderate risk that you can select for investment. This fund has 93.41% of investment in Indian stocks among which 54.87% is in the mid-cap stocks only. Aniruddha Naha is the fund manager with the fund size(AUM) being Rs.247.95 Cr and an expense ratio of 0.71%. The absolute returns for a 1-year investment period are very high 42.79%, more than double the category average (18.25%). The goal of the scheme is to get capital appreciation by investing in various mid-cap companies.
7.JM Large Cap Fund–Direct–Growth
We are suggesting you this one more equity large-cap fund with low risk which has 81.1% investment in Indian stocks with 74.15% in large-cap only. The fund size(AUM) is Rs. 381.5 Cr with an expense ratio of 2.33% and the manager being Asit Bhandarkar and Chaitanya Choksi. The absolute returns are 9.99% if you select 1 year of the investment plan. The scheme objective is again to optimize your capital gains.
8.PGIM India Diversified Equity Fund–Direct Plan–Growth
This is another equity low-risk multi-cap fund that has a fund size(AUM) of Rs. 225.6 Cr and the expense ratio is 0.52% with Aniruddha Naha as the fund manager. For a 1-year period investment, the absolute returns (30.70%) is thrice the category average (10.13%). The objective of this scheme is to get a long-term capital gain from a great diversified portfolio of equity-related companies.
9.Axis Small Cap Fund–Direct Plan–Growth
As mentioned earlier small-cap funds have moderate to high risk but you can go for this equity small-cap fund if you want as it has 94.86% investment in Indian stocks out of which 72.42% is in small-cap ones. The fund size(AUM) is Rs.2720.15 Cr, an expense ratio of 0.28% with Anupam Tiwari as the fund manager. The absolute returns is 19.30% which is higher than the category average of 13.57% for a 1-year investment period. Currently this is one of the Best Small Cap Fund to invest.The goal of the scheme is to obtain high capital gains by investing in various small-cap companies.
10.Kotak Bluechip Fund–Direct Plan–Growth
We have come up with this equity large-cap fund with low risk which has 98.74% investment in Indian stocks with 71.06% in large-cap stocks. The fund size (AUM) is Rs. 1653.38 Cr and an expense ratio of 1.07% with Harish Krishnan as the fund manager. An absolute return for a 1-year investment period is 12.41% thus higher than the category average of 7.40%. The objective of this scheme is very simple, to achieve capital appreciation by investing in equity-related securities of Large Cap companies.
The Final Verdict –
- Analyzing the risk and returns ratio, the best mutual funds in India one according to us is the Canara Robeco Bluechip Equity Fund–Direct Plan—Growth because it is of low risk and returns is also good.
- If you want to take up a moderate amount of risk but a high amount of return, then we suggest you to go for PGIM India Diversified Equity Fund–Direct Plan–Growth.