Mutual Funds in India: Your Comprehensive Guide

 

 

Types of Mutual Funds

 

Here are some popular types of the best mutual funds in India —-

 

• Equity funds — mainly in stocks 
• Large-cap funds — in large-cap companies
• Small-cap funds —- for small-cap companies (usually higher returns with higher risk)
• Sectoral or thematic funds — for specific sectors like companies based in tech, finance, and more
• Hybrid funds — investments in stocks, debt, bonds, and more

 

How to Find the Best Performing Mutual Funds in India? 

 

When checking good mutual funds to invest in India, take note of the following key factors to find the most suitable option —

 

• Returns: Historical performance, especially the average return per year for various periods (1 year, 3 years, 5 years, etc.) gives an understanding of the fund’s ability to make profits.
• Risk Ratios: The risk level of the fund is determined by the standard deviation, Sharpe ratio, and beta in relation to the market.
• Expense Ratio: This is the annual fee that funds charge their investors. A lower expense ratio can improve the net returns.
• Assets Under Management (AUM): AUM affects the liquidity and management of the fund. It is an indicator of investor confidence.
• Fund Manager’s Track Record: The track record of the fund manager is essential in evaluating future prospects.

 

Which is the Best Mutual Fund to Invest in India?

 

We will take a look at some of the best mutual funds to invest in India —

 

 

What is CRISIL Rank?

 

CRISIL rank is a rating provided by CRISIL (Credit Rating Information Services of India Limited). 

This figure evaluates the relative performance and financial stability of mutual funds India and other investment instruments. Generally, the lower the rank (numerically), the better the fund is judged to be. 

As an investor, you can use it to make an informed decision to compare funds within the same category.

 

Exploring the Top Performing Mutual Funds in India

 

Whether you are looking for the best mutual funds in India for SIP or lump sum investment, you can go for the options discussed earlier. 

So while you might be looking for, say, the top 10 mutual funds in India, we will go a step beyond and understand many more funds in more detail — 

 

1. Invesco India Mid Cap Fund Direct Growth Plan

 

The Invesco India Mid Cap Fund is a mid-cap fund. It mainly invests in stocks of companies with a market capitalisation of between ₹5,000 Cr and ₹20,000 Cr.

These companies are good for the balance between the growth and stability of the companies. This fund, among the top mutual funds in India, has performed well in the last one year due to its strong stock picking and optimal sector-wise positioning.

 

2. SBI Contra Fund – Direct Plan – Growth

 

The SBI Contra Fund follows the contra approach of investing in stocks that are not popular among investors but are expected to deliver good returns in the long run.

This strategy has proven fruitful and made it one of the top performing funds in India in terms of performance.

 

3. Quant ELSS Tax Saver Fund – Direct Plan – Growth

 

ELSS not only helps you save tax under section 80C but also has the potential to grow your money.

The Quant ELSS Tax Saver Fund has given excellent returns recently and has emerged as a perfect investment tool for tax planning and wealth building. This is among the top mutual funds in India if you’re looking to achieve growth and tax savings in one place.

 

4. JM Flexi Cap Fund — Direct — Growth

 

Flexi Cap funds invest in companies of all sizes, giving you a mix of both large-cap and mid/small-cap funds in one place.

The JM Flexi Cap Fund has been excellent in its operations and has been able to make the most of the large-cap, mid-cap, and small-cap segments. It’s one of the best mutual funds to invest in India if you’re looking for investment opportunities across different market caps.

 

5. HDFC Focused 30 Fund – Direct Plan – Growth

 

This focused fund, among the best mutual funds to invest in India, invests in a concentrated portfolio of 30 stocks.

It simply means that it is possible to make high-conviction bets on selected companies. The HDFC Focused 30 Fund has performed well over the years due to its competitive stock selection and strategy.

 

6. Quant Large and Mid Cap Fund Direct Plan Growth

 

Funds under this category offer diversification in both large-cap and mid-cap stocks, which offers both stability and growth.

As one of the best performing mutual funds in India, the Quant Large and Mid Cap Fund has performed impressively and demonstrated its capacity to perform well in various market conditions.

 

7. ICICI Prudential Bluechip Fund – Direct Plan – Growth

 

This is a great choice if you’re looking for the best mutual funds in India for SIP without much risk. Bluechip funds mainly focus on investing in large capitalisation companies that have a good track record.

The ICICI Prudential Bluechip Fund has been giving a steady return and is a good option for conservative investors.

 

8. Quant Mid Cap Fund Direct Plan Growth

 

The Quant Mid Cap Fund has performed well in recent times, showing that it can effectively take advantage of mid-cap opportunities.

This fund is among the best mutual funds to invest in India suitable for those willing to take moderate risks in order to achieve high returns.

 

9. Sundaram Consumption Fund – Direct Plan – Growth

 

Sectoral and thematic funds target companies related to specific sectors or themes. The Sundaram Consumption Fund focuses on companies that are related to consumption, which has been well rewarded by the growth of the middle class and spending in India.

All in all, it is certainly among the good mutual funds to invest in India in terms of sectoral funds.

 

10. JM Value Fund – (Direct) – Growth

 

These funds purchase securities that are cheap in the market but are expected to give good returns.

While this requires correct valuation and risk management, the JM Value Fund has adopted both these strategies and has performed exceptionally well in different time horizons. As a result, it is widely considered among the top performing mutual funds in India.

 

11. Franklin India Focused Equity Fund – Direct Plan 

 

Franklin India Focused Equity Fund (with a direct growth plan) has been one of the most consistent players in the equity fund segment.

As one of the top performing mutual funds in India, it has a diversified investment strategy, focusing on both large and mid-capitalization stocks. This strategy has worked nicely and has been delivering steady profits irrespective of the market conditions.

Due to its adherence to the principles of fundamental analysis and the identification of undervalued assets, the fund has attracted the attention of those who are interested in stable growth in the long term.

 

12. DSP Small Cap Fund – Direct Plan – Growth

 

DSP Small Cap Fund is one of the most popular small-cap mutual funds India and has shown potential for generating high returns in the long run.

This fund has been able to outperform other similar funds that invest in small-cap stocks, although such stocks are generally considered to be highly risky. Its direct growth plan allows you to benefit from the growth prospects of small and emerging enterprises in India.

Despite the fact that this fund has been around for a while and has produced consistent results, it still stands as a top pick for investors who want to invest in high-growth stocks.

 

13. Aditya Birla Sun Life Banking & Financial Services Fund – Direct Plan – Growth

 

The Aditya Birla Sun Life Banking & Financial Services Fund has a direct growth plan that invests in the banking and financial services industry, which has been a major contributor to the growth of the Indian economy.

As one of the top mutual funds in India, it has established itself as a major player in the sector through its portfolio of leading players.

It has also generated good returns over the years due to its market comprehension. If you’re interested in making the most of the banking and financial services industry growth, this is certainly among the best mutual funds in India.

 

14. Mirae Asset Emerging Bluechip Fund – Direct Plan – Growth

 

New generation Bluechip funds give you an opportunity to tap into mid-cap and small-cap companies with sound fundamentals and growth profiles.

The Mirae Asset Emerging Bluechip Fund, especially through its direct growth plan, has remarkably spotted the right prospects in this segment and has delivered good returns for investors.

Among the top performing mutual funds in India, it has been able to manage risks well while providing quality research to its clients. For this reason, it’s a good fund for investors who want to invest in high-growth segments of the market.

 

Can an NRI Invest in Mutual Funds in India?

 

Yes, you can easily invest in mutual funds India as a Non-resident Indian (NRI). Here’s how to invest in mutual funds in India as an NRI —

 

Open an NRO or NRE Account

 

As per Indian laws, you can invest in an Asset Management Company (AMC) only in Indian Rupees (INR). To do this, you will need to open any of the following accounts —

 

• Non-Residential External (NRE) Account: You can keep your earnings in foreign currencies here in Indian Rupee (INR).
• Non-Resident Ordinary (NRO) Account: You can only keep your earnings in India here, again in INR currency.

 

Decide Which Investment Route to Take 

 

You will need to choose whether you want to directly invest in mutual funds India or go with Power of Attorney (PoA).

• Self: You can make the transactions 
• PoA: You can give the Power of Attorney to a trusted person, who will invest in funds on your behalf.

 

Complete the KYC 

 

Next, you need to do the Know Your Customer (KYC) process. 

For this, you may be asked to provide the following documents and details —

• Passport
• Permanent Account Number (PAN)
• Details of Your Overseas Bank Account
• Visa
• Passport-size Photos
• Signature of the PoA (if applicable)

 

Once done, you can start your mutual fund investment in India! 

Important: Make sure that you comply with Foreign Exchange Management Act (FEMA) regulations and other guidelines of India and your country of residence. 

 

FAQs