Which are the Top Performing Mutual Funds in India Today?
You can invest your funds in top-performing mutual funds, which have reached the best position based on certain factors like risk considerations, returns, performances, etc. Here we will find out the best mutual funds and how they work.
You can rely on an asset management company (AMC) to form an investment fund handled by a professional and experienced fund manager. They manage the fund's investment level and invest in stocks, securities, bonds, etc., on your behalf. You will be allotted shares of the fund according to your investment amount. You can further reinvest or redeem your shares based on the Fund's NAV at maturity.
What is Mutual Fund NAV?
NAV is the market value of the mutual fund, which represents the value of each share in the fund. Just like a stock has a share price, a mutual fund has a NAV representing its value.
How to Choose the Best-Performing Mutual Funds in India?
Ultimately, investors want mutual funds that offer higher returns. You must focus on 3 attributes before you invest your money in mutual funds:
- Your financial goals
- Understanding of investment risks
- Investment horizon
Each mutual fund scheme is different from the others and serves a definite purpose. Therefore, the fund's investment objectives must align with your short-term and long-term goals, investment plans, and risk appetites to make meaningful decisions.
Here are other things you must consider before you make your mutual fund investments
Fund History
It is important to consider a fund's past performance during market ups and downs. This shows the strength of the fund in difficult times. A fund with a strong history of delivering consistent returns demonstrates the credibility of its investment strategy. It is suggested to check the fund's track record over 5 years.
Expense Ratio
It is important to consider the expense fee each mutual fund charges, as the higher the expense ratio, the lower the returns on your mutual fund investments will be.
Fund Manager Performance
Fund manager involvement and responsibility to ensure the show runs smoothly is a critical deciding factor when choosing the best mutual fund to invest in. A good performance is demonstrated when the fund provides consistent returns and mitigates losses during market downturns.
Factors Considered to Provide Ratings for Mutual Funds
Do you want to know how the top-performing mutual funds are selected? Consider these factors which contribute to providing rankings to mutual funds:
- Outperformance Consistency.
- Rolling return of 1 year holding period.
- Rolling return of holding 3 years.
- Outperformance volatility to check how erratic the outperformance was against the benchmark. The lower the volatility, the better the mutual fund performance will be.
- Downward protection measures that examine a fund's resilience against a market downtrend. Preference will be given to funds that demonstrate higher resilience.
- Upward Participation Indicators check how a fund participates in the market up moves. A fund that participates often is desirable.
- Fund size.
How Are the Top Performing Mutual Funds Different?
The best-performing mutual funds form another category of mutual funds where clients can get the most out of their capital by investing in these funds. India's best-performing investment funds set milestones by hitting targets every time, generating a brilliant overall performance.
To be included in the top performing mutual funds, each system must meet standards established by financial experts. Therefore, only a few funds can rank among India's top 10 mutual funds.
Different Kinds of Top Performing Mutual Funds:
Top Performing Equity Funds
The top performing mutual funds in the equity category invest in stocks of publicly traded companies. These are aggressive funds that entail huge risks but also excessive returns. Equity mutual funds are recommended if you prefer capital gains over security.
Top Performing Debt Funds
The top performing category of debt mutual funds are those that perform the best for the risk-averse investor. The goal is to provide investment options for clients who want to protect their money at the expense of their returns.
Debt fund managers invest investors' money in money market instruments such as bonds and stocks issued by both governments and corporations. Debt funds include short-term debt, long-term debt, guilt funds,
Top Performing Hybrid Funds
What if you are new at investing and are confused between investing in equity or debt funds? What if you want to buy one product with two different functions?
Hybrid funds are a mix of equity and debt funds that blend both characteristics, offering a balance in stocks and money market instruments. The main focus of the hybrid fund is to provide equity growth and bond safety in one step.
Best Mutual Funds in India
The following top-performing mutual funds have been selected scientifically and algorithmically. They comprise long-term, short-term, equity, hybrid, debt, tax saving, and funds that can cover emergency needs.
Top performing mutual funds in India today are:
| Fund Name | Best to Invest in | 3 Year Return |
| Axis Bluechip Fund Growth | Large Cap | 13.9% |
| Mirae Asset Emerging Bluechip Fund Growth | Large & Mid Cap | 21.5% |
| Nippon India Smallcap Fund Growth | Small cap | 32.3% |
| SBI-Focused Equity Fund Growth | Focused | 16.7% |
| SBI Small Cap Fund Growth | Small Cap | 28.5% |
| SBI Equity Hybrid Fund Regular Growth | Aggressive Hybrid Fund | 13.8% |
| HDFC Balanced Advantage Fund | Balanced Advantage | 14.4% |
| SBI Balanced Advantage Fund | Balanced Advantage | 2.1% |
| Parag Parikh Flexi Cap Fund Growth | Flexi Cap | 22.7% |
The list of Top Performing Equity Mutual Funds in India are:
| Fund | AUM (INR in crores) | 1Y returns |
| Quant Small Cap Fund Direct Plan-Growth | 2355 | 7.1% |
| Bank of India Small Cap Fund Direct-Growth | 395 | 5.2% |
| Canara Robeco Small Cap Fund Direct-Growth | 4063 | 12.1% |
| Quant Tax Plan Direct-Growth | 2127 | 12.9% |
| Quant Infrastructure Fund Direct-Growth | 778 | 12.9% |
| PGIM India Midcap Opportunities Fund Direct-Growth | 7257 | 4.9% |
| Quant Mid Cap Fund Direct-Growth | 964 | 17.2% |
| SBI Contra Direct Plan-Growth | 6649 | 14.4% |
| Axis Small Cap Fund Direct-Growth | 10992 | 6.4% |
| Quant Large and Mid-Cap Fund Direct-Growth | 366 | 11.6% |
The Top Performing Debt Mutual Funds in India
| Fund | AUM (INR in crores) | 1Y returns |
| Bank of India Short-Term Income Fund Direct-Growth | 44 | 27.1% |
| Baroda BNP Paribas Credit Risk Fund | 202 | 5.3% |
| UTI Short-term Income Fund | 2114 | 4.0% |
| ICICI Prudential All Seasons Bond Fund | 5938 | 4.8% |
| ICICI Prudential Medium Term Bond Fund | 6288 | 4.5% |
| UTI Bond Fund | 277 | 9.6% |
| UTI Treasury Advantage Fund | 3011 | 4.3% |
| Axis Corporate Debt Fund | 2933 | 4.2% |
| HDFC Dynamic Debt Fund | 505 | 2.4% |
| SBI Magnum Gilt Fund | 3853 | 4.3% |
The Top Performing Hybrid Mutual Funds In India
| Fund Name | 1Y Returns | Fund Size(in Cr) |
| Quant Absolute Fund | 14.2% | INR 762 |
| Quant Multi Asset Fund | 13.2% | INR 428 |
| ICICI Prudential Equity & Debt Fund | 11.3% | INR 21,109 |
| Mahindra Manulife Hybrid Equity Nivesh Yojana Fund | 7.6% | INR 571 |
| Baroda BNP Paribas Aggressive Hybrid Fund | 6.3% | INR 800 |
| Mirae Asset Equity Savings Fund | 4.7% | INR 588 |
| Kotak Debt Hybrid Fund | 5.0% | INR 1,601 |
| Edelweiss Equity Savings Fund | 4.8% | INR 277 |
| Canara Robeco Conservative Hybrid Fund | 4.3% | INR 1,143 |
| ICICI Prudential Regular Savings Fund | 5.8% | INR 3,303 |
About Tax Saving Funds
Tax-saving mutual funds like ELSS help you get tax exemptions up to INR 1.5 lakhs under Section 80C of the Income Tax Act, 1961.
Top Performing Tax Saving Mutual Funds
- Axis Long-Term Equity Fund
- Canara Robeco Equity Tax Saver Fund
- Mirae Asset Tax Saver Fund
- Invesco India Tax Plan Fund
- DSP Tax Saver Fund
About Liquid Mutual Funds
Liquid funds are debt funds that invest in short-term assets such as government securities, certificates of deposit, commercial paper, etc. SEBI's criteria allow liquid funds to be invested in bonds and money market securities with a maturity of 91 days or less.
Top Performing Liquid Mutual Funds
| Fund Name | 1 Y | Fund Size (INR in Cr) |
| Navi Liquid | 5.25% | 147
|
| Quant Liquid Plan | 5.17% | 1107
|
| Sundaram Liquid Fund | 5.16% | 2466
|
| Axis Liquid Fund | 5.15% | 27253
|
| Edelweiss Liquid Fund | 5.13% | 1324
|
Conclusion
The best mutual funds are investments selected by mutual fund experts based on NAV, performance, assets under management, returns and ratings, and other factors. These top-performing mutual funds allow you to acquire and easily transfer your investments. You need to analyze your financial goals, risk appetite, and long-term and short-term requirements, and then you can choose from one of the top-performing schemes.
The top 10 performing mutual funds make the investment process easier, which have been carefully selected based on various factors. Investing in top-performing funds can make your dreams come true safely and efficiently. By investing in top Indian mutual funds, you can see your portfolio turn around.
Frequently Asked Questions
How are the top-performing mutual funds selected?
The top-performing mutual funds in India are selected based on a comprehensive analysis of parameters related to investment funds like consistency, volatility, risks, investment strategy, performance, portfolio structure, and returns.
Can top mutual funds also achieve negative returns?
Mutual funds are exposed to market risk. Most top-performing mutual funds are less likely to have negative returns. Still, there could be stances where even the best mutual fund categories can produce negative returns in adverse market conditions.
Why should I choose the best mutual fund to invest in?
If you want to generate higher returns than regular funds and put your trust in the top performing funds, you must choose one of the best mutual funds performing well in the current market scenario.
Do the top performing mutual funds have lower expense ratios?
Top-performing mutual funds may or may not charge higher expense ratios than regular funds. The parameters that are selected are based on expense ratios. So, if the expense ratio is high, it may be worth the fee.
Should you switch all your investments to top-quality mutual funds?
Investing in mutual funds according to your financial goals, risk profile, suitability, and objectives is recommended. When choosing the best mutual fund for you, you need to consider your risk tolerance and investment horizon, which can also be one of the top performing mutual funds in India.
How do you choose the right mutual fund to invest in?
Investing in one of the top performing mutual funds in India is a great idea, and you must consider your life goals and understand the risks. You must look at the fund's past performance for the same investment period and a fund's rating, which reflects its reliability.