There are investors like you who’d start their journey of investment by asking a simple yet familiar question: “What can be the top 10 mutual funds in India to invest in?”
While it’s imperative to sit behind your screen doing some random google search, relying entirely on this is also not advisable.
“Mutual Fund Schemes” needs to be an essential part of that research. Therefore, investors, who are putting an effort in researching would generally want a comprehensive and updated list on which they can rely.
This piece will be dealing with all the relevant information that an investor would need before they start out investing depending on the schemes they approve.
What can the investors expect post-2019 Budget?
Seasoned mutual fund investors and managers alike express that they’d want the withdrawal of LTCG or long-term capital gain taxes implemented on any given equity mutual fund by the Finance Ministry.
LTCG tax was incorporated or rather re-introduced in the previous budget. It incurs tax on any long-term gains over one lakh on respective equity investment that was held over a period of one year at ten percent.
Consequently, mutual fund investors are furious over the re-introduction of LTCG tax. Furthermore, it is irritating how the government has seemed to stay oblivious to the unwarranted risks that they have to take in their equity mutual fund. However, it is tentatively anticipated that there is not even the slightest of chances for such retractions from the government.
The industry of mutual funds has been looking for a presence of debt products primarily along the tracks of ELSS (Equity Linked Saving Scheme) for an extended period. Many conservative investors avoid investing in ELSS for saving taxes since they are scared of such investments in stock.
As apparent as it sounds, these investors, again, would readily invest in a scheme on debt mutual funds, preferably with a lock-in period. However, ELSS does qualify under Section 80C (The Income Tax Act), a deduction amount up to one and a half lakh. however, it warrants a compulsory lock-in period, i.e. three years.
Here are ten Indian Mutual Funds that perform exceptionally
1. Mirae Asset Large Cap Fund
The investment objective of the scheme is to provide long term capital by capitalizing on investment opportunities that hold potential. Therefore, it is done by primarily investing in equity-related securities or equities.
This scheme is available as either a regular or a direct plan with respective NAVs and portfolios. The program has two options, i.e. Growth and Dividend Plan. Your projected fund return, on an investment of 1000 INR per month in 20 years will be 17.17 lakh INR with a return of 15.87% returns each year (avg. 5 years).
- In the span of three- or five-year period, this scheme has been able to give 13.9% and 21.9% respective returns. Furthermore, its benchmark (BSE200 TRI) has been able to provide 12.8% & 16.7% returns respectively over the same period. Their portfolio maintains diversity and is well balanced in terms of stock, style or theme.
- Mirae Asset India Equity Fund, which was formerly known as Mirae Asset India Opportunities Fund had its launch in the year 2008 on April 4th.
- This scheme skims through investment opportunities that have high chances of doing well over medium terms and also which takes concentrated exposure. There is again zero restrictions on the kind of publicity the scheme exposes to, but the portfolio will still be diversified across market capitalization at any given stock level.
- Redemption requests forwarded to fund house along with proceeds are remitted over a period of ten days (business days).
- A charge of 1% exit load is in effect if the unit is redeemed within a span of one year from the date of its allotment. But exit load charge is not applicable on units that are over a year.
2. Axis Bluechip Fund
They have a tentative return of 10. 67 lakh INR, over a period of twenty years. You can achieve this with an investment of 1000 INR per month with an average of 12.48% return each year for a period of five years. Above all, the investment objective being long term capital allotment, it primarily consists of equity-related securities or equity of companies with derivatives.
- Over the span of a seven-year return, it has garnered 14.86% which has surpassed the benchmark index of 12.33%. Evidently, this scheme has an outstanding track record which focuses on growth and quality, which favours companies that have regularized cash flow with high earning chances.
- Founded on April 6th, 2005.
- The risk has been determined as moderately high but is suitable for long term capital investors.
- Minimum redemption amount is 1000 INR, deployed with a span of ten business days from date of request.
- One percent exit load is charged for units which are more than ten per cent within one year but is exempted beyond that time frame.
3. ICICI Prudential Bluechip Fund
Over a span of twenty years with an investment of 500 INR per month, this scheme will give a fund return of 5.05 lakhs with a 12.08% return per year on an average of five years. They primarily invest in large-cap stocks, and during turbulent times, the scheme provides excellent options for investment, seeking stability and growth to the investor’s portfolio.
- This scheme happens to be the market leader in their niche industry and is also in long-term investment. It is so because they HOwhave been surpassing their benchmark of 10% and 13.7% (Nifty 100 TRI) by 10% and 15% respectively.
- Founded in the year 2008 by ICICI Prudential Mutual Fund.
- The risk here is moderately high since large-cap investments are safer than that of small stock. Being open-ended makes them liable to loss of the principal invested amount.
- LTGC is at 10 per cent for an excess of one lakh INR without any indexation, if you hold the units for over a year.
- Redemption, if requested takes ten business days to process, which will be done as per the current NAV or Net Asset Value.
- Entry load is absent here, but you get an exit load of 1 per cent of Net Asset Value within one year, but beyond that, it’s not.
4. SBI Bluechip Fund
With an investment of 500 INR per month over a period of 20 years, there will be a fund return of 6.22 lakh INR. Overall, this scheme provides long term capital growth by investing in a diverse group of large-cap equity stock.
- In spite of specific performance issues, this fund has been continually outperforming their benchmark as of yet.
- Founded on 14th of February, 2006.
- The risk here is moderately high.
- Funds redeemed will be dispatched within ten business days to the respective account holder.
- The exit fee of 1 per cent is only applicable if you withdraw funds within a year of its allotment.
- The LTCG, with over 1 lakh INR incurs a tax of 10 percent minus the indexation.
5. SBI Magnum Multicap Fund
Its tentative fund return is 8.85 lakh INR with a monthly investment amount of 500 INR over a span of twenty years. They provide long term growth with apt liquidity of respective schemes. However, their focal point of investment is on equities.
- The fund guarantees assorted investment, both containing equity and debt instruments.
- Founded in September 20015.
- The risk here is moderately high.
- Units are available for redemption only after the expiry of its lock-in period. The dispatch occurs within 10 business days.
- Exit load is 1 percent with a span of six months and 0.5% within 6 to 12 months.
6. Aditya Birla Sun Life Frontline Equity Fund
With an investment of 1000 INR per month, your tentative fund return would be 9.5 lakh INR under a span of twenty years.
- Returns per year on an average is 11.63% on an average five-year span.
- 10-year return percentage is 15.68% (per year).
- Large-cap investment.
- Exits load is 1 percent if redeemed within 365 days.
7. L&T India Value Fund
With an investment of 1000 INR per month over twenty years, the tentative return comes to around 20.83 lakhs INR. This scheme invests in equity and equity-related devices. They also invest in foreign securities as their international investment venture.
- Garners high returns by investing in undervalued security assets. Their 3 year/5 years returns have been relatively higher than their average returns.
- Founded on January 8th, 2010.
- Risk is moderately high and suitable for investments in undervalued security assets.
- Redemption is at NAV as per its rate on every day (business days). Redemption of funds takes at least 3 business days.
- The exit load is at 1 percent but is only applicable if you redeem units within a year since the date of allotment.
8. Mirae Asset Emerging Bluechip Fund
Their tentative growth in fund return is 48.28 lakhs over twenty years with an investment amount of 1000 INR per month.
- Founded in May of 2010.
- Modern medium-sized emergent companies with palpable tentative growth provide greater return volume.
- Risks are moderately high.
- You can redeem units only after the expiry of its lock-in period and processed by fund house within ten business days.
- Exit load is 1 percent if redeemed within a year.
9. Kotak Standard Multicap Fund
Their tentative return is 26.47 lakhs INR, invested with an amount of 1500 INR over a period of 20 years.
- Account type is multi-cap.
- Five-year returns are at 16.06 per cent per year — multi-cap investment opportunity.
- Risks here are moderately high.
- NAV as of yet is 34.728.
- Exit load of 1 percent applies if you redeem within a span of 365 days.
10. Axis Focused 25 Fund
With an investment of 1000 INR per month over a period of twenty years, the tentative return amounts to 15.44 lakhs INR with average 15.12% return per year. Its foci lie with the investment on equity/equity related assets on 25 companies. Above all, these companies are amongst the top 200 companies with respect to the market capitalization.
- It was launched on June 29th, 2012 and had a benchmark with respect to NIFTY 50 total return.
- This scheme invests on sustainably growing stocks with a limit of 25 at a time. It has continually surpassed its benchmark in the last five years.
- The risks are moderately high but are suitable for long term capital growth.
- The minimum amount of redemption is 100 units or 1000 INR. Requests received up to 3 pm are liable to recovery on that day’s NAV. However, the recovery requested/received post 3 pm are settled with the NAV of its subsequent business day.
- You pay 1 percent exit load if you redeem within a span of one year from its date of receipt.
This list should comprehensively provide an insight to the new investors who are looking forward to this venture. Aggressive hybrid schemes are best for most equity investors who are looking to have long term investment with zero futility. These schemes are investing in a mixed pool of equity, which makes them less volatile than any pure equity scheme.
Regular investors can invest in multi-cap MF (mutual funds) or any given diversity equity scheme. These schemes fundamentally invest over market sectors and capitalization is based off on what the fund manager thinks.
On the other hand, aggressive Investors can look to gain that extra return with high risk too. They can always bet on small or mid-cap schemes, entailing investment on small and medium companies respectively. In spite of their volatility, they offer more returns over the year.
This list essentially includes schemes from the five different categories, i.e. large cap, aggressive hybrid, mid-cap, multi-cap and small cap, which holistically covers all options for regular investors.