Introduction
Mutual funds are, no doubt, one of the most guaranteed means to invest your money to accumulate wealth in the long run. There are various types of mutual funds, and making the right investment choices according to one’s financial goal and risk appetite is utterly confusing. We have brought you, in this guide, the top 10 best mutual funds to invest in currently in 2024 in consideration of their performance, returns, and market stability.
You are looking for long-term growth or stable returns-there are literally many different types of funds, including equity, debt, and hybrid mutual funds. Let’s take a look!
- Axis Bluechip Fund (Equity)
- Category: Large-Cap Equity
- Why Invest: Being consistent with its performance, Axis Blue Chip Focuses on blue-chip companies which forms the leaders of the respective industries.
- 5-Year Returns: 12.8%
- Risk: Moderate
- Best For: Investors looking for a steady long-term growth profile with relatively lesser risk.
- SBI Small Cap Fund (Equity)
- Category: Small-Cap Equity
- Why Invest: High growth potential from small-cap companies which shall give high returns in the long run.
- 5-Year Returns: 25.5%
- Risk: High
- Best Suit: Aggressive investors, high-risk appetite, and long-term investment horizon
- Mirae Asset Emerging Bluechip Fund (Hybrid)
- Category: Large & Mid-Cap Hybrid
- Why to Invest: Diversified portfolio balances risk among Large and Mid-cap stocks
- 5-Year Returns: 18.4%
- Risk: Moderate to High
- Best for: Stability coupled with Growth
- ICICI Prudential Balanced Advantage Fund (Hybrid)
- Category: Dynamic Asset Allocation
- Why Invest: This fund automatically readjusts the position of equity and debt according to the market. It balances risk and returns.
- 5-Year Returns: 9.8%
- Risk: Moderate
- Best For: Investors looking for a balanced risk with automatic asset allocation.
- HDFC Mid-Cap Opportunities Fund (Equity)
- Category: Mid-Cap Equity
- Why Invest: Mid-cap stock provides better returns than large-cap and allows better risk management compared to smaller ventures.
- 5-Year Returns: 16.3%
- Risk: High
- Best For: Investor ready to take high risks for a high return with investment.
- Kotak Standard Multicap Fund (Equity)
- Category: Multicap Equity
- Why Invest: It invests across large, mid, and small-cap companies, thus providing excellent diversification.
- 5-Year Returns: 14.5%
- Risk: Moderate
- Best For: Those seeking a diversified portfolio across different market caps.
- Edelweiss Balanced Advantage Fund (Hybrid)
- Category: Dynamic Asset Allocation
- Why Invest: The fund dynamically manages the percentage exposure to equity as well as debt, thus making it a relatively safer bet during volatile markets.
- 5-Year Returns: 10.2%
- Risk: Low to Moderate
- Best For: Investors seeking a balanced risk and stable returns.
- Parag Parikh Flexi Cap Fund (Equity)
- Type of Category: Flexi-Cap Equity
- Why Invest: Investing across large, mid, and small-cap companies, both within India and globally.
- 5-Year Returns: 19.8%
- Risk: Moderately to High
- Best For: Investors looking at both Indian and international markets.
- Aditya Birla Sun Life Tax Relief 96 (ELSS)
- Type of Category: Equity Linked Savings Scheme (ELSS)
- Why Invest: Harnesses tax benefits under Section 80C along with long-term capital growth.
- 5-Year Returns: 12.9%
- Risk: Moderate
- Best Suited: For the saver who wants tax saving and long-term growth.
- Nippon India Large Cap Fund (Equity)
- Type: Large-Cap Equity
- Why Invest: It is basically of good-quality large-cap stocks which gives stability with good returns.
- 5-Year Return: 11.5%
- Risk: Medium
- Best For: Conserved investor who looks for stable return in large-cap companies.
How to Choose the Right Mutual Fund for You
All of the funds listed above have given a good return, but you must choose the mutual fund according to the goals and risk appetite that you have towards your investments and your investment horizon.
Some key points to consider:-
- Risk Tolerance: Equity funds are more volatile but give higher returns. Debt funds are less risky but lower returns.
- Investment objectives: are you investing for long-term growth, or to save on taxes, or for short-term gains? You should make sure the fund you invest in aligns with your objectives.
- Fund Performance: view the long-term performance of the fund; 5-10 years are safer than looking at mere recent gains.
- Expense Ratio : A lower expense ratio means that more of your money goes into generating returns.
Conclusion
The best mutual funds provide many options to achieve goals, including long-term wealth creation, tax savings, or a stable income. Here are some of the best for 2024, including some mix of high returns and stability along with diversification:.
These funds are, therefore, a starting point for investors who do not know how to begin. They offer an excellent foundation for building any investment portfolio that needs to be profitable. Cautiously review your investments and probably change strategy according to the changing conditions surrounding your finances. You can also check some of current best stocks like Reliance power in 2024
