If you want to make big money with moderate risk, then mutual funds may be one of the best investment options for you. Also, if you don’t want to invest in the stock market directly, then you can take the mutual fund route to invest in the market. Depending upon your risk profile and longevity of holding period, you can chose between various debt, equity and other funds. The selection of mutual funds, however, should be in line with your investment objectives in order to maximize the benefits.
Here we are taking a look at 10 best-performing mutual funds for your portfolio:
Debt: Monthly Income Plan
1) Birla Sun Life MIP II – Wealth 25 – Reg – Growth: This is an ideal investment plan for those who want to meet their monthly expenses or want monthly income with moderate risk. “This fund is the best among all the debt category mutual funds in terms of returns. This mutual fund has given more than 20% return in the last one year and more than 56% return in the last 3 years. This fund, which invests some of its portion in equities to generate monthly return for its unit holders, is a perfect blend of equity and debt, and one of the must buy mutual funds,” Kaushlendra Singh Sengar, Founder & CEO, Advisorymandi.com.
Debt: Short Term
2) Franklin India STIF DP – Growth: Franklin India Short Term Income Fund Direct Plan is an open-end income scheme with an objective to provide stable returns by investing in fixed income securities for short-term investment horizon of 12 months with regular income. This fund is suitable for investors who prefer higher accrual and credit quality-focused debt fund. This fund invests in short-term corporate bonds, including PTCs, and has given 11.48% return in the last 1 year
Debt: Long Term
3) IDFC SSIF – Invt Plan – Reg – Growth: IDFC SUPER SAVER INCOME FUND – INVESTMENT PLAN is a long-term open-ended scheme for those investors who are risk averse and want return with moderate risk. This fund has invested in good quality fixed income and money market securities. This fund is consistently giving better returns compared to other mutual funds in this class from the last 17 years. This may be a good investment compared to FDs and bonds.
Equity: Banking (Open ended)
4) ICICI PruBank&FinSDP (G): ICICI PRUDENTIAL BANKING AND FINANCIAL SERVICES – DIRECT PLAN invests predominantly in equity and equity-related securities of companies engaged in banking and financial services. It may be noted that Indian banks benefited a lot from demonetization. “Not only this, the RBI policy for bad loans and the government’s regular initiatives to boot the banking system will also give a boost to the banking sector, and that’s the reason that this fund has given around 30% return after demonetization. Since inception its has outperformed the category average returns. So, it’s an ideal fund to keep in one’s portfolio,” says Sengar.
Equity: Small Cap (open ended)
5) L&T Emerging BusinDP (G): L&T EMERGING BUSINESSES FUND – DIRECT PLAN’s key theme focus is emerging Indian companies (small cap stocks) which are typically in the early stage of development and have the potential to grow their revenues and profits at a higher rate as compared to broader market. It also invests in foreign securities. This fund has always given better return than the category average (small & mid cap) since inception. Not only this, it has outperformed its benchmark index S&P BSE Small Cap. In the last one year it has given more than 55% return, which is the best in its category.
Equity: Mid Cap (open ended)
6) MiraeAsset EmBlue DP (G): MIRAE ASSET EMERGING BLUECHIP FUND – DIRECT PLAN predominantly invests in Indian equities and equity-related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of at least Rs 100 crore at the time of investment. This fund has outperformed its benchmark index (Nifty Mid Cap 100 given 60%) all the time and has given more than double return (133.60%) than Nifty Mid Cap 100 in the last 3 years. This fund is managed by Neelesh Surana since its inception. So, we can expect good return in the future too.
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Hybrid: Equity-oriented fund
7) Tata RetirSav ModeDP (G) : TATA RETIREMENT SAVINGS FUND DIRECT PLAN is ideal for investors who are risk averse and looking for regular savings avenue for retirement or who usually don’t have post-retirement benefits accruing to them. This fund offers a unique “Auto Switch” feature which takes away the hassles of adjusting the equity – debt proportion with increasing age. So, if the investor starts an SIP in the “Progressive” plan opting for the Auto Switch Feature from “Progressive” to “Moderate” to “Conservative”, automatically the fund will do the needful as the consumer crosses different age brackets. This fund has given 86.66% return in the last 3 years and has consistently been among the top 3 funds in the hybrid category from the last 3 years.
Equity: Infrastructure fund
8) IDFC Infrastructure DP(direct plan) (G): It invests across the infrastructure value chain with exclusions like banking, autos, IT, pharma and FMCG. It is a diversified portfolio of companies that are participating in and benefiting from the Indian infrastructure and infrastructure-related activities. “This is the best mutual fund among all the mutual funds available in the market right now in terms of return. In the past 1 year it has given return of around 56%, and 29% in the current year till yet. This fund has given more than 2.5 times return than Nifty 50. Going forwards also, it will be a great fund to keep in your portfolio as the government has allocated Rs 3.96 trillion to infrastructure sector. We are expecting a good growth in the equity market by the end of this financial year. Hence also expecting a good return from this fund,” informs Sengar.
9) L&T Infrastructure Fund – Direct Plna is an equity infra open ended fund and has invested mainly into engineering and cement sector stocks. In the Union Budget 2017, the government proposed to assign infrastructure status to affordable housing projects and facilitate higher investments and better credit facilities, with an aim to provide Housing for All by FY 2022. The National Housing Bank will refinance individual housing loans of about Rs 20,000 crore (US$ 3 billion) in 2017-18. The Finance Minister proposed to complete 1 crore houses by 2019. All these developments are expected to boost cement demand. So, the future prospects are looking good for this fund and in the last 6 months, it has given more than 29% return, which is much better than the Nifty 50 return.
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Equity: FMCG fund
10) SBI FMCG Fund – Direct Plan: This is a sector-specific open-ended mutual fund, and has given more than 28% return in the last 6 months. “It seems to have a good future too, because the most predictable impact of GST would be on the warehousing strategy of FMCG companies and will save on logistics costs. GST may prove to be a boon for the warehousing industry. FMCG products attract excise duty of 12.5 per cent and VAT at around the same level. The GST rates for major FMCG products are lower compared to their current tax rates, which if passed on to the consumer will have a positive impact on this sector and help in increasing the demand of products,” says Sengar.
(These mutual funds have been recommended by Kaushlendra Singh Sengar, Founder & CEO, Advisorymandi.com. Although due care has been exercised by them while selecting these funds, readers are advised to consult their financial adviser before investing in any of these funds)