Investing wisely is key to building wealth, and mutual funds have become popular among Indian investors. As an investor in India, it is important for one to know the best mutual funds they can think of investing in as we get into 2024. But finding the right mutual fund from so many options can be quite daunting. We bring you this blog, guiding you through the top mutual funds in 2024 to help you make informed decisions and, hopefully, reap high returns.
Ready to find out which are the best mutual funds to invest in India for 2024? Read on!
Mutual funds are investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities. Mutual funds represent professionally managed investment vehicles for an easier and relatively less risky mode of investment by individual investors in financial markets. Investing in a mutual fund will offer you diversification to reduce risk and professional management to realize good returns.
Mutual funds have become popular in India because they cater to different financial goals and appetites for risk. Whether saving for retirement, child education, or a dream home, there is probably a mutual fund scheme designed for your needs. The other biggest positive for mutual funds is that they are regulated by the Securities and Exchange Board of India (SEBI), which means some degree of safety and transparency for investors.
Knowing which funds stand out is very important whether you're aiming for high returns or looking for stability. Below, we list the top 10 high-return mutual funds in India based on 3-year returns to ensure you have a clear picture of some of the best available options. Let's look at the top & best mutual funds to invest in to help make an informed decision on investment.
| Best Mutual Funds to invest in India (2024) | 3Yr Return (%) |
|---|---|
| 1. ICICI Pru Infrastructure Direct Growth | 170.9 |
| 2. Motilal Oswal Midcap Direct Growth | 170.2 |
| 3. Franklin Build India Direct Growth | 148.9 |
| 4. Quant Mid Cap Direct Growth | 137.9 |
| 5. JM Flexicap Direct Growth | 136.6 |
| 6. Nippon India Small Cap Direct Growth | 131.0 |
| 7. Nippon India Multi Cap Direct Growth | 129.3 |
| 8. ICICI Pru Dividend Yield Eq Direct Growth | 126.3 |
| 9. Quant Large and Mid Cap Dir Gr | 125.8 |
| 10. HSBC Small Cap Fund Dir Gr | 117.6 |
In this overview, we'll provide essential details like return, NAV (Net Asset Value) and AUM (Assets Under Management) for each fund. Understanding these metrics will give you a comprehensive view of why these funds are considered the best mutual funds to invest in India for 2024.
ICICI Prudential launched a fund to invest in India's infrastructure sector, and it is one of the best mutual funds to invest in India. It picks stocks of only those companies engaged in infrastructure and related sectors with an aim to provide long-term capital appreciation. Managed by the best professionals, this fund provides excellent investment opportunities.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 63.9 | 170.9 | 285.4 |
The Motilal Oswal Midcap Direct Growth Fund endeavours to create wealth through investments made in high-growth, mid-sized companies. It aims to realize long-term capital appreciation at the very start through quality investments in mid-cap stocks. The strategy of this fund is to pick stocks with good fundamentals and excellent growth managed by a Motilal Oswal-acknowledged team.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 64.9 | 170.2 | 335.2 |
This Franklin Templeton scheme endeavours to take advantage of infrastructural development within India. Franklin Build India Direct Growth Fund will invest in companies engaged in activities in the construction, engineering, and associated infrastructure sectors. The main objective will be to seek capital appreciation over a long horizon from investments based on a global socioeconomic trend of growth in the Indian infrastructure sector.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 71.1 | 148.9 | 261.5 |
Quant Mid Cap Direct-Growth Fund is one of the best mutual funds in India, which mainly diversifies investments in mid-cap stocks with an objective to earn continuously; in this way, the funds are managed systematically through stock selection. The fund heavily concentrates on stocks with the possibility of tremendous revenue growth. Quant Mid Cap fund, managed by Quant Mutual Fund, is looking for long-term capital appreciation by investing in a diversified basket of mid-cap companies.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 66.1 | 137.9 | 411.3 |
The fund shall buy and hold shares capital merging the purchase of such large-cap, mid-cap, and small-cap stocks. The fund shall aim to provide long-term capital growth by dynamically managing—with a view on risk exposures—invested positions across various market capitalizations to creatively exploit a flexible and diversified platform structure under all precursory market conditions.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 64.2 | 136.6 | 249.5 |
Nippon India manages this fund, and it is one of the best mutual funds in India for risk-takers because they invested in small-cap companies with immense growth potential. The Fund's investment objective is to realize the capital's long-term value proposition to investors by investing in a diversified portfolio primarily consisting of small-cap companies. The most suitable investment class under this option is one seeking the potential growth offered in smaller companies distributed over different locations in India.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 52.6 | 131 | 382.6 |
It invests in companies across large, mid, and small market capitalization segments to achieve long-term capital appreciation. Nippon India Multi Cap Direct-Growth Fund is one such fund from the bucket of Nippon India AMC House, following balanced approaches to investments and showing exposure to different market portions and their potential toward growth.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 47 | 129.3 | 210.2 |
ICICI Prudential Dividend Yield Equity Direct Growth Fund is one of the best mutual funds with an equity-oriented offering that provides regular income and long-term capital appreciation from investments made in a diversified portfolio of dividend-yielding stocks. ICICI Prudential is managed by one of the strongest investment teams with very sound investment "ICICI Prudential Dividend Yield Equity Direct Plan-Growth is to generate capital appreciation by investing in a diversified portfolio of Dividend Yielding Equities and related securities of large-cap companies.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 55.1 | 126.3 | 235.7 |
Quant Large and Mid Cap Direct Growth Fund aims to seek capital appreciation over a long period by investing in large-cap and mid-cap stocks. Quant Mutual Fund manages it for an appetite that must balance with stability through diversified equity exposure but still seeks out high-growth opportunities.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 62.9 | 125.8 | 284.1 |
HSBC Small Cap Fund Direct-Growth is an open-ended scheme in the category of equity funds focusing on small-cap companies. In this case, the fund house is HSBC, which shall invest in companies ranked as Small-Cap or, basically, any other security of potential high growth. This shall be an investment suitable for investors who desire exposure to emerging companies that have the potential to become market leaders in the future.
(Data taken on 22/07/2024)
Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
| 48.7 | 117.6 | 288.1 |
Looking for stable and profitable long-term investment options? These top 5 mutual funds for 2024 based on 5Yr Returns. They are expected to deliver solid and steady returns, making them ideal choices for long-term investors. Explore these best mutual funds to invest in India for long-term a, secure and prosperous future.
| Best Mutual Funds to Invest in 2024 for long-term | 5Yr Return (%) |
|---|---|
| 1. Quant Small Cap Fund Direct Plan-Growth | 563.9 |
| 2. Quant Infrastructure Direct Growth | 423.3 |
| 3. Quant ELSS Tax Saver Dir Gr | 370.5 |
| 4. Canara Robeco Small Cap Dir Gr | 343.7 |
| 5. Edelweiss Small Cap Dir Gr | 339.5 |
Investing in mutual funds requires careful consideration of several factors:
You can choose mutual funds that best fit your investment strategy and financial goals by considering these factors.
Various types of mutual funds cater to different investment needs and hence the different risk profiles. Major heads include equity funds, debt funds, and hybrid funds.
1. Equity Funds: These funds primarily get directed into stocks with high growth possibilities and, therefore, would be fit for any long-term investor. For instance, a large-cap equity fund invests in well-established companies with a track record of stable returns.
2. Debt Funds: These funds invest in fixed-income securities such as government and corporate bonds. They are ideal for conservative investors seeking regular income and lower risk.
3. Hybrid Funds: These funds are a mix of equity and debt investment. They are funds whose mission is to provide a diversified portfolio in their approach to strike a balance between growth and income from these classes. A balanced advantage fund may be one typical example of a hybrid fund, which is dynamically allocated according to market conditions.
Several criteria must be listed while selecting the best mutual funds to invest in India. The most important one is getting to know how it performed in the past; and whether the fund has been consistent over some time. Although past performance does not ensure the same in the future, it shows how skilful the fund manager is and how stable the fund is. Finally, the expense ratio, the lower the ratio, the higher the percentage of your money working for you. Also, fund manager reputation/experience: experienced managers can handle market fluctuations better. Finally, how does the fund match your financial goals and risk tolerance?
Please take care of the points mentioned below to get good returns on your mutual fund investments:
Selecting top-performing mutual funds involves a blend of research and strategy:
These steps will help you identify mutual funds that have gained a strong performance in the past and future growth potential.
Investing in mutual funds can be done in two primary ways: SIP (Systematic Investment Plan) and lump sum. Each method has its own benefits and flexibility, catering to different types of investors.
SIPs allow investors to invest a fixed amount of money at periodic intervals, thereby reaping the benefit through rupee-cost averaging. This would hence be the perfect way for investing to people with stable incomes since it assists in disciplined investment without worrying about the rise and fall of the market. This is highly flexible because it allows starting with a relatively small sum and increasing your investment over time. This is ideal for anyone looking to adopt a very hands-off, consistent investment strategy.
Lump sum investments involve investing a significant amount of money in one go. This strategy can be particularly beneficial when the market is low, potentially leading to higher returns. However, timing is crucial; investing at a market peak could result in lower gains or even losses. Lump sum investments are suitable for those with substantial money who are ready to invest and comfortable with market timing. While it requires a bit more risk tolerance, the rewards can be significant if executed well.
Regardless of which road is taken, mutual fund investing can be rather easy through the Shree Varahi app offered by Lakshmishree. First, download the app from the App Store or Play Store; then, open your account and do your KYC. You can view the list of top mutual funds, select any fund you want to invest in, decide on the investment amount, and start investing in either a systematic investment plan or a lump sum.
Knowing the tax implications that mutual funds have will prove more useful in gaining the maximum possible returns. We provide here details on the taxability of mutual fund investments in India.
In India, AMCs collect investments from the public and run mutual funds that invest in a well-diversified portfolio of stocks, bonds, and securities. Knowledge of the tax rules helps one better plan investment and reduce possible tax liabilities.
Mutual funds are flexible investment alternatives that can serve different types of investors.
The scheme of mutual funds is framed to satisfy the needs of everyone according to his or her financial goals and appetite for risk.
The best mutual funds to invest in India in 2024 can significantly improve your financial portfolio and help to live up to your long-term financial goals. You can enhance returns from your investments by selecting the right mix of mutual funds based on performance, risk alignment with their objectives, and the caution of making mistakes.
Whether you are an amateur or a seasoned investor, mutual funds are the most versatile and quickest way to choose for wealth creation. So, start investing today and take the first step toward a secure financial future!
Research is the key. Check fund performance, expense ratios, and manager reputation. The financial websites will give valuable information on this issue. Along with that, make sure to get ratings given by rating agencies like CRISIL or Morningstar for investments and consult financial advisors.
Some of the best mutual funds for a SIP include funds with consistent performance and low expense ratios. Axis Bluechip Fund, Nippon India Small Cap, and Parag Parikh Flexi Cap are top pick choices that SIP investors should keep on their radar for opportunities.
The best mutual funds to invest in India for 2024 include ICICI Pru Infrastructure, Motilal Oswal Midcap, Franklin Build India and Quant Midcap, offering high returns and stability.
Your choice must align with your financial goals, risk tolerance, and investment horizon. Take care of the historical performance of the fund, its expense ratio, and quality of management.
Short-term mutual funds are basically investments in debt or liquid funds with comparatively more conservative risk and return profiles and can be used for less than three years. Long-term mutual funds, such as equity funds, find a valid place in periods greater than three years, as they hold out the possibility of higher growth.
Most high-return mutual funds are, therefore, equity funds. While the risk of market volatility cuts a chunk of it, these schemes can help grow excellent in return for a long-term investor.
SIP is a process where an investor invests a predefined amount of money in a mutual fund at periodic intervals. It aids in averaging the cost of purchase and reduces the volatility of the market; thus, it is one of the disciplined ways to invest.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Always conduct your research and consider consulting with a financial advisor before making any investment decisions.
