Table of Contents
Top 10 Funds
A mutual fund represents an investment vehicle wherein funds from numerous investors are consolidated into a single investment product. Subsequently, the fund directs these assets towards Investing in diverse assets, aligning with the fund's investment objectives.
The market offers many mutual fund varieties, which can be overwhelming for you due to the extensive range of available products. Nevertheless, you must acknowledge that no single scheme or group of schemes is universally suitable. The ideal mutual fund scheme for you aligns with your investment objectives and risk tolerance, among other factors. In this post, let's learn about good Mutual Funds and the factors you should consider when selecting a scheme.
Mutual funds encompass various types categorised by underlying assets, including gold, debt, or equity. These include hybrid, debt, and equity mutual funds, each with distinct objectives and risk profiles.
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Here are the diverse Types of Mutual Funds:
Fixed Income Funds: These mutual funds invest in fixed-income securities, including short-term Bonds, long-term bonds, floating rate debt, and money market instruments.
Equity Funds: Equity Funds mainly invest in stocks and can be actively or passively managed.
Equity Linked Savings Schemes (ELSS): This close-ended equity mutual fund offers tax-saving benefits under Section 80C of the income tax Act while aiming for wealth accumulation.
Diversified Funds: You can diversify your investments across multiple sectors or industries with this type of mutual fund.
Gilt Funds: These funds allocate investments to government securities without default risk.
Index Funds: Investments in Index Funds mirror the performance of a stock market index.
Liquid Funds: These investment plans primarily allocate funds to short-term money market instruments featuring shorter maturity periods.
Debt-Oriented Hybrid Funds: Combining debt and equity investments, these funds offer a balanced approach.
Arbitrage Funds: Treated as equity plans for tax purposes, these funds invest in cash and derivatives markets.
Mutual fund schemes offer a range of convenient and flexible investment modes tailored to meet specific requirements, with the most popular being lump sum and Systematic Investment plan (SIP).
Lump sum investment involves a single substantial investment made by an investor in any mutual fund scheme. However, spreading out investments over the entire financial year is advisable for optimal results. This strategy helps average the purchase cost and mitigate volatility, fostering financial discipline.
SIP entails investing a fixed amount regularly in a mutual fund scheme at predefined intervals. It operates akin to regular saving schemes like a Recurring deposit. Under SIP, investments are routinely made, such as weekly, monthly, or quarterly. For instance, if you plan to invest Rs. 1,20,000 in March as a lump sum, you would allocate Rs. 10,000 per month through an SIP. SIP is recommended for mutual fund investments, particularly equity-oriented funds, to alleviate stress and benefit from consistent investing.
Here's a breakdown of how taxation is applied to mutual funds in India:
Several aspects play a crucial role in selecting the top-performing mutual funds in India:
Investment Horizon: Mutual funds typically fall into short-term and long-term categories. Choose for stocks and bonds with higher risk for short-term investments, offering potentially higher returns. For long-term investments, choose low-risk options with steady growth potential.
Financial goals: Define your financial objectives before investing to determine the most suitable fund category. Consider risk tolerance, liquidity needs, time horizon, and others to make informed decisions.
Fund Performance: Assess a fund's performance over at least five years to gauge its suitability for investment.
Fund Manager Experience: Prioritise funds managed by seasoned fund managers with extensive experience. Investing in such funds provides security as experienced managers can navigate various market conditions effectively.
Expense Ratio: Choose for funds with expense ratios below 1.00%, representing the cumulative expenses covering advertising costs, fund manager salaries, and other related expenses.
Risk Tolerance: Understand your risk tolerance levels to gain clarity on the expected returns from your investment.
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 5 YR (%) 2023 (%) IDFC Infrastructure Fund Growth ₹54.589
↓ -1.02 ₹1,965 2.4 35 67.2 31.5 32.7 50.3 ICICI Prudential Nifty Next 50 Index Fund Growth ₹65.4842
↓ -0.45 ₹6,863 4.1 29.7 61.6 20 23.3 26.3 IDBI Nifty Junior Index Fund Growth ₹55.1824
↓ -0.38 ₹99 4 29.3 60.8 19.8 23 25.7 Franklin Build India Fund Growth ₹145.066
↓ -1.06 ₹2,904 3.5 26.8 58.4 31.6 30.8 51.1 Invesco India Growth Opportunities Fund Growth ₹97.15
↑ 0.08 ₹6,205 11.3 34.9 57.6 22.6 24.7 31.6 Motilal Oswal Multicap 35 Fund Growth ₹61.7007
↑ 0.05 ₹11,728 12.8 34.5 55.3 19.5 20.4 31 Tata Equity PE Fund Growth ₹374.103
↓ -4.73 ₹9,043 8.3 28.9 47.9 23.8 24.8 37 L&T India Value Fund Growth ₹110.891
↓ -0.68 ₹13,872 4.8 26.2 46.8 25.2 27.8 39.4 DSP BlackRock Equity Opportunities Fund Growth ₹631.465
↓ -3.00 ₹14,246 8.2 30.2 45.5 19.8 24.8 32.5 L&T Emerging Businesses Fund Growth ₹88.5942
↓ -0.76 ₹16,905 6.3 34.1 42.4 27.8 32.6 46.1 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 19 Sep 24
The investment objective of the scheme is to seek to generate long-term capital growth through an active diversified portfolio of predominantly equity and equity related instruments of companies that are participating in and benefiting from growth in Indian infrastructure and infrastructural related activities. However, there can be no assurance that the investment objective of the scheme will be realized. IDFC Infrastructure Fund is a Equity - Sectoral fund was launched on 8 Mar 11. It is a fund with High risk and has given a Below is the key information for IDFC Infrastructure Fund Returns up to 1 year are on The fund's objective is to invest in companies whose securities are included in Nifty Junior Index and to endeavor to achieve the returns of the above index as closely as possible, though subject to tracking error. The fund intends to track only 90-95% of the Index i.e. it will always keep cash balance between 5-10% of the Net Asset to meet the redemption and other liquidity requirements. However, as and when the liquidity in the Index improves the fund intends to track up to 100% of the Index. The fund will not seek to outperform the CNX Nifty Junior. The objective is that the performance of the NAV of the fund should closely track the performance of the CNX Nifty Junior over the same period subject to tracking error. ICICI Prudential Nifty Next 50 Index Fund is a Others - Index Fund fund was launched on 25 Jun 10. It is a fund with Moderately High risk and has given a Below is the key information for ICICI Prudential Nifty Next 50 Index Fund Returns up to 1 year are on The investment objective of the scheme is to invest in the stocks and equity related instruments comprising the CNX Nifty Junior Index in the same weights as these stocks represented in the Index with the intent to replicate the performance of the Total Returns Index of CNX Nifty Junior Index. The scheme will adopt a passive investment strategy and will seek to achieve the investment objective by minimizing the tracking error between the CNX Nifty Junior Index (Total Returns Index) and the scheme. IDBI Nifty Junior Index Fund is a Others - Index Fund fund was launched on 20 Sep 10. It is a fund with Moderately High risk and has given a Below is the key information for IDBI Nifty Junior Index Fund Returns up to 1 year are on The Scheme seeks to achieve capital appreciation by investing in companies engaged directly or indirectly in infrastructure related activities. Franklin Build India Fund is a Equity - Sectoral fund was launched on 4 Sep 09. It is a fund with High risk and has given a Below is the key information for Franklin Build India Fund Returns up to 1 year are on (Erstwhile Invesco India Growth Fund) The investment objective of the Scheme is to generate long-term capital growth from a diversified portfolio of predominantly equity and equity-related securities. However, there can be no assurance that the objectives of the scheme will be achieved. Invesco India Growth Opportunities Fund is a Equity - Large & Mid Cap fund was launched on 9 Aug 07. It is a fund with Moderately High risk and has given a Below is the key information for Invesco India Growth Opportunities Fund Returns up to 1 year are on (Erstwhile Motilal Oswal MOSt Focused Multicap 35 Fund) The investment objective of the Scheme is to achieve long term capital appreciation by primarily investing in a maximum of 35 equity & equity related instruments across sectors and market-capitalization levels.However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved. Motilal Oswal Multicap 35 Fund is a Equity - Multi Cap fund was launched on 28 Apr 14. It is a fund with Moderately High risk and has given a Below is the key information for Motilal Oswal Multicap 35 Fund Returns up to 1 year are on To provide reasonable and regular income and/ or possible capital appreciation to its Unitholder. Tata Equity PE Fund is a Equity - Value fund was launched on 29 Jun 04. It is a fund with Moderately High risk and has given a Below is the key information for Tata Equity PE Fund Returns up to 1 year are on To generate long-term capital appreciation from diversified portfolio of predominantly equity and equity related securities, in the Indian markets with higher focus on undervalued securities. The Scheme could also additionally invest in Foreign Securities in international markets. L&T India Value Fund is a Equity - Value fund was launched on 8 Jan 10. It is a fund with Moderately High risk and has given a Below is the key information for L&T India Value Fund Returns up to 1 year are on (Erstwhile DSP BlackRock Opportunities Fund) The primary investment objective is to seek to generate long term capital appreciation from a portfolio that is substantially constituted of equity and equity related securities of large and midcap companies. From time to time, the fund manager will also seek participation in other equity and equity related securities to achieve optimal portfolio construction. There is no assurance that the investment objective of the Scheme will be realized DSP BlackRock Equity Opportunities Fund is a Equity - Large & Mid Cap fund was launched on 16 May 00. It is a fund with Moderately High risk and has given a Below is the key information for DSP BlackRock Equity Opportunities Fund Returns up to 1 year are on To generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian markets with key theme focus being emerging companies (small cap stocks). The Scheme could also additionally invest in Foreign Securities. L&T Emerging Businesses Fund is a Equity - Small Cap fund was launched on 12 May 14. It is a fund with High risk and has given a Below is the key information for L&T Emerging Businesses Fund Returns up to 1 year are on 1. IDFC Infrastructure Fund
CAGR/Annualized
return of 13.4% since its launch. Ranked 1 in Sectoral
category. Return for 2023 was 50.3% , 2022 was 1.7% and 2021 was 64.8% . IDFC Infrastructure Fund
Growth Launch Date 8 Mar 11 NAV (19 Sep 24) ₹54.589 ↓ -1.02 (-1.83 %) Net Assets (Cr) ₹1,965 on 31 Aug 24 Category Equity - Sectoral AMC IDFC Asset Management Company Limited Rating ☆☆☆☆☆ Risk High Expense Ratio 2.33 Sharpe Ratio 3.46 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-365 Days (1%),365 Days and above(NIL) Sub Cat. Sectoral Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹9,200 31 Aug 21 ₹17,683 31 Aug 22 ₹18,570 31 Aug 23 ₹23,949 31 Aug 24 ₹42,298 Returns for IDFC Infrastructure Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month -2% 3 Month 2.4% 6 Month 35% 1 Year 67.2% 3 Year 31.5% 5 Year 32.7% 10 Year 15 Year Since launch 13.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 50.3% 2022 1.7% 2021 64.8% 2020 6.3% 2019 -5.3% 2018 -25.9% 2017 58.7% 2016 10.7% 2015 -0.2% 2014 43.2% Fund Manager information for IDFC Infrastructure Fund
Name Since Tenure Vishal Biraia 24 Jan 24 0.6 Yr. Ritika Behera 7 Oct 23 0.9 Yr. Gaurav Satra 7 Jun 24 0.24 Yr. Data below for IDFC Infrastructure Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Industrials 52.47% Utility 10.82% Basic Materials 10.6% Communication Services 6.43% Energy 3.99% Consumer Cyclical 3.87% Financial Services 3.58% Technology 2.29% Health Care 1.41% Asset Allocation
Asset Class Value Cash 4.54% Equity 95.46% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kirloskar Brothers Ltd (Industrials)
Equity, Since 31 Dec 17 | 5002414% ₹80 Cr 443,385
↑ 8,933 GPT Infraprojects Ltd (Industrials)
Equity, Since 30 Nov 17 | 5337614% ₹77 Cr 4,384,900
↑ 1,145,000 PTC India Financial Services Ltd (Financial Services)
Equity, Since 31 Dec 23 | PFS4% ₹70 Cr 12,200,218
↑ 1,724,925 Reliance Industries Ltd (Energy)
Equity, Since 30 Jun 24 | 5003253% ₹68 Cr 226,353
↑ 65,263 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Dec 23 | 5329213% ₹64 Cr 434,979 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | 5005103% ₹64 Cr 171,447 Ahluwalia Contracts (India) Ltd (Industrials)
Equity, Since 30 Apr 15 | AHLUCONT3% ₹60 Cr 470,125
↑ 38,887 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 31 Dec 23 | 5348163% ₹57 Cr 1,252,522
↓ -58,513 H.G. Infra Engineering Ltd Ordinary Shares (Industrials)
Equity, Since 28 Feb 18 | HGINFRA3% ₹50 Cr 321,984
↑ 190,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Apr 19 | 5324542% ₹46 Cr 289,163 2. ICICI Prudential Nifty Next 50 Index Fund
CAGR/Annualized
return of 14.1% since its launch. Ranked 5 in Index Fund
category. Return for 2023 was 26.3% , 2022 was 0.1% and 2021 was 29.5% . ICICI Prudential Nifty Next 50 Index Fund
Growth Launch Date 25 Jun 10 NAV (19 Sep 24) ₹65.4842 ↓ -0.45 (-0.69 %) Net Assets (Cr) ₹6,863 on 31 Aug 24 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.7 Sharpe Ratio 3.72 Information Ratio -12.24 Alpha Ratio -0.69 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Sub Cat. Index Fund Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,121 31 Aug 21 ₹15,603 31 Aug 22 ₹16,468 31 Aug 23 ₹16,706 31 Aug 24 ₹28,308 Returns for ICICI Prudential Nifty Next 50 Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 1.4% 3 Month 4.1% 6 Month 29.7% 1 Year 61.6% 3 Year 20% 5 Year 23.3% 10 Year 15 Year Since launch 14.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 26.3% 2022 0.1% 2021 29.5% 2020 14.3% 2019 0.6% 2018 -8.8% 2017 45.7% 2016 7.6% 2015 6.2% 2014 43.6% Fund Manager information for ICICI Prudential Nifty Next 50 Index Fund
Name Since Tenure Nishit Patel 18 Jan 21 3.62 Yr. Priya Sridhar 1 Feb 24 0.58 Yr. Ajaykumar Solanki 1 Feb 24 0.58 Yr. Data below for ICICI Prudential Nifty Next 50 Index Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 0.1% Equity 99.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity Trent Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | TRENT7% ₹470 Cr 656,526
↑ 16,894 Bharat Electronics Ltd (Industrials)
Equity, Since 30 Sep 22 | BEL5% ₹319 Cr 10,669,339
↑ 274,562 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL4% ₹261 Cr 557,794
↑ 14,353 InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Sep 16 | 5394483% ₹239 Cr 494,388
↑ 12,721 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 24 | PFC3% ₹238 Cr 4,325,308
↑ 111,306 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | VEDL3% ₹235 Cr 5,008,703
↑ 128,891 REC Ltd (Financial Services)
Equity, Since 31 Mar 24 | RECLTD3% ₹228 Cr 3,686,572
↑ 94,870 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | TATAPOWER3% ₹219 Cr 5,044,639
↑ 129,819 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 5323433% ₹195 Cr 693,434
↑ 17,844 Indian Oil Corp Ltd (Energy)
Equity, Since 31 Mar 22 | IOC3% ₹194 Cr 10,936,625
↑ 281,443 3. IDBI Nifty Junior Index Fund
CAGR/Annualized
return of 13% since its launch. Ranked 8 in Index Fund
category. Return for 2023 was 25.7% , 2022 was 0.4% and 2021 was 29.6% . IDBI Nifty Junior Index Fund
Growth Launch Date 20 Sep 10 NAV (19 Sep 24) ₹55.1824 ↓ -0.38 (-0.69 %) Net Assets (Cr) ₹99 on 31 Aug 24 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.87 Sharpe Ratio 3.68 Information Ratio -7.3 Alpha Ratio -1.16 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Sub Cat. Index Fund Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,150 31 Aug 21 ₹15,508 31 Aug 22 ₹16,392 31 Aug 23 ₹16,608 31 Aug 24 ₹27,987 Returns for IDBI Nifty Junior Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 1.4% 3 Month 4% 6 Month 29.3% 1 Year 60.8% 3 Year 19.8% 5 Year 23% 10 Year 15 Year Since launch 13% Historical performance (Yearly) on absolute basis
Year Returns 2023 25.7% 2022 0.4% 2021 29.6% 2020 13.7% 2019 0.5% 2018 -9.3% 2017 43.6% 2016 6.9% 2015 5.8% 2014 42.8% Fund Manager information for IDBI Nifty Junior Index Fund
Name Since Tenure Sumit Bhatnagar 3 Oct 23 0.91 Yr. Data below for IDBI Nifty Junior Index Fund as on 31 Aug 24
Asset Allocation
Asset Class Value Cash 0.44% Equity 99.56% Top Securities Holdings / Portfolio
Name Holding Value Quantity Trent Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | TRENT7% ₹7 Cr 9,437
↑ 216 Bharat Electronics Ltd (Industrials)
Equity, Since 30 Sep 22 | BEL5% ₹5 Cr 153,856
↑ 3,743 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL4% ₹4 Cr 7,987
↑ 67 InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Sep 16 | 5394483% ₹3 Cr 7,129
↑ 194 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 24 | PFC3% ₹3 Cr 62,383
↑ 1,432 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | VEDL3% ₹3 Cr 72,242
↑ 4,971 REC Ltd (Financial Services)
Equity, Since 31 Mar 24 | RECLTD3% ₹3 Cr 53,197
↑ 1,322 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | TATAPOWER3% ₹3 Cr 72,330
↑ 1,408 TVS Motor Co Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 5323433% ₹3 Cr 9,937
↑ 159 Indian Oil Corp Ltd (Energy)
Equity, Since 31 Mar 22 | IOC3% ₹3 Cr 157,240
↑ 3,789 4. Franklin Build India Fund
CAGR/Annualized
return of 19.5% since its launch. Ranked 4 in Sectoral
category. Return for 2023 was 51.1% , 2022 was 11.2% and 2021 was 45.9% . Franklin Build India Fund
Growth Launch Date 4 Sep 09 NAV (19 Sep 24) ₹145.066 ↓ -1.06 (-0.72 %) Net Assets (Cr) ₹2,904 on 31 Aug 24 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 2.13 Sharpe Ratio 3.4 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Sub Cat. Sectoral Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹9,195 31 Aug 21 ₹15,783 31 Aug 22 ₹17,754 31 Aug 23 ₹23,088 31 Aug 24 ₹38,154 Returns for Franklin Build India Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 1.1% 3 Month 3.5% 6 Month 26.8% 1 Year 58.4% 3 Year 31.6% 5 Year 30.8% 10 Year 15 Year Since launch 19.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 51.1% 2022 11.2% 2021 45.9% 2020 5.4% 2019 6% 2018 -10.7% 2017 43.3% 2016 8.4% 2015 2.1% 2014 93.8% Fund Manager information for Franklin Build India Fund
Name Since Tenure Ajay Argal 18 Oct 21 2.87 Yr. Kiran Sebastian 7 Feb 22 2.57 Yr. Sandeep Manam 18 Oct 21 2.87 Yr. Data below for Franklin Build India Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Industrials 40.07% Financial Services 12.84% Utility 10.09% Energy 9.95% Communication Services 7.23% Basic Materials 6.64% Consumer Cyclical 3.99% Real Estate 3.34% Technology 1.85% Asset Allocation
Asset Class Value Cash 4.01% Equity 95.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 20 | 5005109% ₹267 Cr 720,000 NTPC Ltd (Utilities)
Equity, Since 30 Nov 16 | 5325556% ₹164 Cr 3,930,000 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 30 Jun 19 | 5003125% ₹149 Cr 4,500,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Mar 12 | 5321745% ₹148 Cr 1,200,000
↑ 75,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | 5003255% ₹133 Cr 440,000 Kirloskar Oil Engines Ltd (Industrials)
Equity, Since 30 Nov 21 | KIRLOSENG4% ₹117 Cr 875,000 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 28 Feb 21 | POWERGRID4% ₹114 Cr 3,365,000 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 09 | 5324544% ₹113 Cr 710,000 Kirloskar Pneumatic Co Ltd (Industrials)
Equity, Since 31 Aug 22 | 5052834% ₹105 Cr 807,847 NCC Ltd (Industrials)
Equity, Since 31 Aug 23 | 5002943% ₹99 Cr 3,100,000
↑ 600,000 5. Invesco India Growth Opportunities Fund
CAGR/Annualized
return of 14.2% since its launch. Ranked 6 in Large & Mid Cap
category. Return for 2023 was 31.6% , 2022 was -0.4% and 2021 was 29.7% . Invesco India Growth Opportunities Fund
Growth Launch Date 9 Aug 07 NAV (19 Sep 24) ₹97.15 ↑ 0.08 (0.08 %) Net Assets (Cr) ₹6,205 on 31 Aug 24 Category Equity - Large & Mid Cap AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.88 Sharpe Ratio 3.47 Information Ratio 0.16 Alpha Ratio 12.72 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-1 Years (1%),1 Years and above(NIL) Sub Cat. Large & Mid Cap Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,333 31 Aug 21 ₹15,459 31 Aug 22 ₹15,875 31 Aug 23 ₹18,260 31 Aug 24 ₹28,533 Returns for Invesco India Growth Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 6.7% 3 Month 11.3% 6 Month 34.9% 1 Year 57.6% 3 Year 22.6% 5 Year 24.7% 10 Year 15 Year Since launch 14.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 31.6% 2022 -0.4% 2021 29.7% 2020 13.3% 2019 10.7% 2018 -0.2% 2017 39.6% 2016 3.3% 2015 3.8% 2014 43.7% Fund Manager information for Invesco India Growth Opportunities Fund
Name Since Tenure Aditya Khemani 9 Nov 23 0.81 Yr. Amit Ganatra 21 Jan 22 2.61 Yr. Data below for Invesco India Growth Opportunities Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Financial Services 26.89% Consumer Cyclical 22.18% Industrials 13.5% Health Care 9.48% Technology 7.51% Basic Materials 7.2% Real Estate 6.89% Consumer Defensive 2.26% Communication Services 2.09% Asset Allocation
Asset Class Value Cash 2.01% Equity 97.99% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | 5321745% ₹302 Cr 2,454,192
↑ 184,996 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 23 | 5322155% ₹297 Cr 2,526,752
↑ 199,587 Trent Ltd (Consumer Cyclical)
Equity, Since 28 Feb 22 | TRENT4% ₹248 Cr 346,233
↓ -40,732 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 28 Feb 23 | 5112434% ₹245 Cr 1,683,809 Prestige Estates Projects Ltd (Real Estate)
Equity, Since 31 Dec 23 | PRESTIGE4% ₹236 Cr 1,303,411
↑ 64,180 InterGlobe Aviation Ltd (Industrials)
Equity, Since 31 Mar 24 | 5394484% ₹235 Cr 485,857
↑ 81,186 Ambuja Cements Ltd (Basic Materials)
Equity, Since 31 Jul 24 | 5004253% ₹210 Cr 3,399,254
↑ 2,121,375 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE3% ₹182 Cr 286,837 Dixon Technologies (India) Ltd (Technology)
Equity, Since 30 Sep 22 | DIXON3% ₹175 Cr 132,826 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Nov 22 | 5432203% ₹172 Cr 1,993,259 6. Motilal Oswal Multicap 35 Fund
CAGR/Annualized
return of 19.1% since its launch. Ranked 5 in Multi Cap
category. Return for 2023 was 31% , 2022 was -3% and 2021 was 15.3% . Motilal Oswal Multicap 35 Fund
Growth Launch Date 28 Apr 14 NAV (19 Sep 24) ₹61.7007 ↑ 0.05 (0.07 %) Net Assets (Cr) ₹11,728 on 31 Aug 24 Category Equity - Multi Cap AMC Motilal Oswal Asset Management Co. Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.94 Sharpe Ratio 3.68 Information Ratio -0.06 Alpha Ratio 15.31 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Sub Cat. Multi Cap Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹9,995 31 Aug 21 ₹14,199 31 Aug 22 ₹13,429 31 Aug 23 ₹15,308 31 Aug 24 ₹23,620 Returns for Motilal Oswal Multicap 35 Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 7.8% 3 Month 12.8% 6 Month 34.5% 1 Year 55.3% 3 Year 19.5% 5 Year 20.4% 10 Year 15 Year Since launch 19.1% Historical performance (Yearly) on absolute basis
Year Returns 2023 31% 2022 -3% 2021 15.3% 2020 10.3% 2019 7.9% 2018 -7.8% 2017 43.1% 2016 8.5% 2015 14.6% 2014 Fund Manager information for Motilal Oswal Multicap 35 Fund
Name Since Tenure Niket Shah 1 Jul 22 2.17 Yr. Santosh Singh 1 Aug 23 1.09 Yr. Rakesh Shetty 22 Nov 22 1.78 Yr. Sunil Sawant 1 Jul 24 0.17 Yr. Data below for Motilal Oswal Multicap 35 Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Consumer Cyclical 25.41% Technology 17.1% Financial Services 16.38% Industrials 15.3% Communication Services 8.97% Basic Materials 1.52% Asset Allocation
Asset Class Value Cash 15.31% Equity 84.69% Top Securities Holdings / Portfolio
Name Holding Value Quantity Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 23 | TRENT10% ₹1,145 Cr 1,600,000
↑ 850,000 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | KALYANKJIL10% ₹1,138 Cr 18,500,000
↑ 6,250,000 Jio Financial Services Ltd (Financial Services)
Equity, Since 31 Jul 23 | 5439409% ₹1,046 Cr 32,500,000
↑ 1,000,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Mar 23 | PERSISTENT8% ₹993 Cr 1,919,829
↓ -580,171 Polycab India Ltd (Industrials)
Equity, Since 31 Jan 24 | POLYCAB8% ₹896 Cr 1,315,730
↓ -309,270 Coforge Ltd (Technology)
Equity, Since 31 May 23 | COFORGE7% ₹793 Cr 1,250,000
↑ 50,000 Bharti Airtel Ltd (Partly Paid Rs.1.25) (Communication Services)
Equity, Since 30 Apr 24 | 8901575% ₹576 Cr 4,825,000
↑ 325,000 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Mar 23 | 5112435% ₹568 Cr 3,900,000 Tube Investments of India Ltd Ordinary Shares (Industrials)
Equity, Since 31 May 22 | 5407624% ₹504 Cr 1,250,000
↑ 100,000 Zomato Ltd (Consumer Cyclical)
Equity, Since 30 Apr 23 | 5433204% ₹483 Cr 19,288,259
↑ 1,288,259 7. Tata Equity PE Fund
CAGR/Annualized
return of 19.6% since its launch. Ranked 7 in Value
category. Return for 2023 was 37% , 2022 was 5.9% and 2021 was 28% . Tata Equity PE Fund
Growth Launch Date 29 Jun 04 NAV (19 Sep 24) ₹374.103 ↓ -4.73 (-1.25 %) Net Assets (Cr) ₹9,043 on 31 Aug 24 Category Equity - Value AMC Tata Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0 Sharpe Ratio 3.34 Information Ratio 1.99 Alpha Ratio 9.16 Min Investment 5,000 Min SIP Investment 150 Exit Load 0-18 Months (1%),18 Months and above(NIL) Sub Cat. Value Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,161 31 Aug 21 ₹14,861 31 Aug 22 ₹16,115 31 Aug 23 ₹18,953 31 Aug 24 ₹29,375 Returns for Tata Equity PE Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 2.9% 3 Month 8.3% 6 Month 28.9% 1 Year 47.9% 3 Year 23.8% 5 Year 24.8% 10 Year 15 Year Since launch 19.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 37% 2022 5.9% 2021 28% 2020 12.5% 2019 5.3% 2018 -7.1% 2017 39.4% 2016 16.2% 2015 0.3% 2014 69.5% Fund Manager information for Tata Equity PE Fund
Name Since Tenure Sonam Udasi 1 Apr 16 8.42 Yr. Amey Sathe 18 Jun 18 6.21 Yr. Data below for Tata Equity PE Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Financial Services 31.3% Energy 12.03% Consumer Cyclical 12.02% Basic Materials 7.6% Utility 7.53% Consumer Defensive 6.44% Communication Services 5.37% Health Care 5.32% Technology 4.89% Industrials 3.87% Asset Allocation
Asset Class Value Cash 3.62% Equity 96.38% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | 5001807% ₹606 Cr 3,705,000 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 Dec 23 | 5005475% ₹451 Cr 12,600,000
↑ 90,000 Coal India Ltd (Energy)
Equity, Since 31 Mar 22 | COALINDIA4% ₹378 Cr 7,200,000
↑ 306,223 Kotak Mahindra Bank Ltd (Financial Services)
Equity, Since 31 Jul 24 | 5002474% ₹356 Cr 2,000,000 NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | 5325554% ₹342 Cr 8,215,000 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 30 Apr 24 | 5348164% ₹326 Cr 7,111,809
↓ -25,191 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 18 | 5008754% ₹317 Cr 6,310,000 Wipro Ltd (Technology)
Equity, Since 31 Dec 23 | WIPRO3% ₹316 Cr 5,860,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | 5321743% ₹283 Cr 2,300,000 Radico Khaitan Ltd (Consumer Defensive)
Equity, Since 30 Nov 17 | RADICO3% ₹266 Cr 1,369,471 8. L&T India Value Fund
CAGR/Annualized
return of 17.8% since its launch. Ranked 4 in Value
category. Return for 2023 was 39.4% , 2022 was 5.2% and 2021 was 40.3% . L&T India Value Fund
Growth Launch Date 8 Jan 10 NAV (19 Sep 24) ₹110.891 ↓ -0.68 (-0.61 %) Net Assets (Cr) ₹13,872 on 31 Aug 24 Category Equity - Value AMC L&T Investment Management Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.77 Sharpe Ratio 3.11 Information Ratio 1.46 Alpha Ratio 9.06 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Sub Cat. Value Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,328 31 Aug 21 ₹16,543 31 Aug 22 ₹17,465 31 Aug 23 ₹21,830 31 Aug 24 ₹33,304 Returns for L&T India Value Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 3.2% 3 Month 4.8% 6 Month 26.2% 1 Year 46.8% 3 Year 25.2% 5 Year 27.8% 10 Year 15 Year Since launch 17.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 39.4% 2022 5.2% 2021 40.3% 2020 14.6% 2019 4.6% 2018 -11.4% 2017 41.3% 2016 8.1% 2015 12.9% 2014 74.1% Fund Manager information for L&T India Value Fund
Name Since Tenure Venugopal Manghat 24 Nov 12 11.78 Yr. Gautam Bhupal 1 Oct 23 0.92 Yr. Sonal Gupta 1 Oct 23 0.92 Yr. Data below for L&T India Value Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Financial Services 26.89% Basic Materials 16.83% Industrials 15.78% Technology 10.87% Consumer Cyclical 7.98% Consumer Defensive 4.73% Real Estate 4.36% Utility 4.11% Energy 3.26% Health Care 1.94% Communication Services 1.93% Asset Allocation
Asset Class Value Cash 1.32% Equity 98.68% Top Securities Holdings / Portfolio
Name Holding Value Quantity NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | 5325554% ₹571 Cr 13,709,000 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | 5321744% ₹539 Cr 4,382,100 State Bank of India (Financial Services)
Equity, Since 30 Nov 20 | 5001123% ₹470 Cr 5,766,900 Jindal Stainless Ltd (Basic Materials)
Equity, Since 31 Jul 21 | JSL3% ₹434 Cr 5,476,370
↓ -121,242 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 30 Sep 23 | MCX3% ₹414 Cr 798,650 KEC International Ltd (Industrials)
Equity, Since 28 Feb 17 | 5327143% ₹368 Cr 3,887,970 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 20 | M&M2% ₹335 Cr 1,195,400 The Federal Bank Ltd (Financial Services)
Equity, Since 31 Oct 20 | FEDERALBNK2% ₹313 Cr 16,063,900 Indian Bank (Financial Services)
Equity, Since 31 Oct 21 | INDIANB2% ₹310 Cr 5,461,700
↓ -306,048 Reliance Industries Ltd (Energy)
Equity, Since 30 Apr 15 | 5003252% ₹301 Cr 998,200 9. DSP BlackRock Equity Opportunities Fund
CAGR/Annualized
return of 18.6% since its launch. Ranked 4 in Large & Mid Cap
category. Return for 2023 was 32.5% , 2022 was 4.4% and 2021 was 31.2% . DSP BlackRock Equity Opportunities Fund
Growth Launch Date 16 May 00 NAV (19 Sep 24) ₹631.465 ↓ -3.00 (-0.47 %) Net Assets (Cr) ₹14,246 on 31 Aug 24 Category Equity - Large & Mid Cap AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.88 Sharpe Ratio 2.74 Information Ratio -0.2 Alpha Ratio 2.92 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Sub Cat. Large & Mid Cap Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹10,608 31 Aug 21 ₹17,031 31 Aug 22 ₹17,067 31 Aug 23 ₹20,009 31 Aug 24 ₹30,262 Returns for DSP BlackRock Equity Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 2.8% 3 Month 8.2% 6 Month 30.2% 1 Year 45.5% 3 Year 19.8% 5 Year 24.8% 10 Year 15 Year Since launch 18.6% Historical performance (Yearly) on absolute basis
Year Returns 2023 32.5% 2022 4.4% 2021 31.2% 2020 14.2% 2019 11.4% 2018 -9.2% 2017 40.1% 2016 11.2% 2015 6.1% 2014 45.4% Fund Manager information for DSP BlackRock Equity Opportunities Fund
Name Since Tenure Rohit Singhania 1 Jun 15 9.26 Yr. Data below for DSP BlackRock Equity Opportunities Fund as on 31 Aug 24
Equity Sector Allocation
Sector Value Financial Services 30.9% Consumer Cyclical 11.47% Basic Materials 9.32% Health Care 8.39% Technology 8.15% Industrials 8% Energy 6.6% Consumer Defensive 4.63% Utility 4.48% Communication Services 3.11% Real Estate 1.23% Asset Allocation
Asset Class Value Cash 3.73% Equity 96.27% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Oct 16 | 5321745% ₹707 Cr 5,748,497 HDFC Bank Ltd (Financial Services)
Equity, Since 31 Oct 08 | 5001805% ₹645 Cr 3,938,635 State Bank of India (Financial Services)
Equity, Since 30 Jun 20 | 5001123% ₹459 Cr 5,627,164
↑ 316,563 Axis Bank Ltd (Financial Services)
Equity, Since 30 Sep 20 | 5322153% ₹415 Cr 3,533,515 Power Finance Corp Ltd (Financial Services)
Equity, Since 30 Nov 22 | PFC3% ₹401 Cr 7,294,253 Hindustan Petroleum Corp Ltd (Energy)
Equity, Since 30 Jun 22 | HINDPETRO3% ₹361 Cr 8,620,996
↑ 709,173 Infosys Ltd (Technology)
Equity, Since 28 Feb 18 | 5002092% ₹310 Cr 1,596,312 Oil India Ltd (Energy)
Equity, Since 29 Feb 24 | 5331062% ₹300 Cr 4,050,354
↓ -613,964 Indus Towers Ltd Ordinary Shares (Communication Services)
Equity, Since 29 Feb 24 | 5348162% ₹282 Cr 6,142,108
↓ -246,945 Samvardhana Motherson International Ltd (Consumer Cyclical)
Equity, Since 31 Dec 22 | MOTHERSON2% ₹271 Cr 13,852,049
↓ -1,656,944 10. L&T Emerging Businesses Fund
CAGR/Annualized
return of 23.4% since its launch. Ranked 2 in Small Cap
category. Return for 2023 was 46.1% , 2022 was 1% and 2021 was 77.4% . L&T Emerging Businesses Fund
Growth Launch Date 12 May 14 NAV (19 Sep 24) ₹88.5942 ↓ -0.76 (-0.85 %) Net Assets (Cr) ₹16,905 on 31 Jul 24 Category Equity - Small Cap AMC L&T Investment Management Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 1.73 Sharpe Ratio 2.26 Information Ratio 0.54 Alpha Ratio 0.29 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Sub Cat. Small Cap Growth of 10,000 investment over the years.
Date Value 31 Aug 19 ₹10,000 31 Aug 20 ₹9,833 31 Aug 21 ₹18,722 31 Aug 22 ₹21,773 31 Aug 23 ₹28,693 31 Aug 24 ₹40,851 Returns for L&T Emerging Businesses Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 19 Sep 24 Duration Returns 1 Month 3.6% 3 Month 6.3% 6 Month 34.1% 1 Year 42.4% 3 Year 27.8% 5 Year 32.6% 10 Year 15 Year Since launch 23.4% Historical performance (Yearly) on absolute basis
Year Returns 2023 46.1% 2022 1% 2021 77.4% 2020 15.5% 2019 -8.1% 2018 -13.7% 2017 66.5% 2016 10.2% 2015 12.3% 2014 Fund Manager information for L&T Emerging Businesses Fund
Name Since Tenure Venugopal Manghat 17 Dec 19 4.71 Yr. Cheenu Gupta 1 Oct 23 0.92 Yr. Sonal Gupta 1 Oct 23 0.92 Yr. Data below for L&T Emerging Businesses Fund as on 31 Jul 24
Equity Sector Allocation
Sector Value Industrials 33.31% Consumer Cyclical 15.58% Basic Materials 13.69% Financial Services 11.23% Technology 8.92% Real Estate 5.54% Health Care 3.16% Consumer Defensive 2.46% Energy 1.57% Asset Allocation
Asset Class Value Cash 2.99% Equity 97.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS3% ₹586 Cr 635,400 Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Jan 19 | TECHNOE3% ₹439 Cr 2,573,042 NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC2% ₹404 Cr 11,291,100 KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | KPITTECH2% ₹403 Cr 2,188,200 Sonata Software Ltd (Technology)
Equity, Since 31 Jul 18 | SONATSOFTW2% ₹400 Cr 5,424,280
↑ 663,519 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 5329292% ₹381 Cr 3,029,095
↓ -269,905 Century Textiles & Industries Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 5000402% ₹375 Cr 1,607,279 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI2% ₹356 Cr 822,670
↓ -100,000 Trent Ltd (Consumer Cyclical)
Equity, Since 31 Jan 17 | 5002512% ₹339 Cr 580,400 EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 5008402% ₹311 Cr 7,055,106
↓ -1,228,133
Whether you're a novice or a trained mutual fund investor, there are a few things that you must consider before putting your money in the market, such as:
Note that the risk associated with each mutual fund category varies. It's not feasible to categorise a specific mutual fund category as high or low risk based on a universal scale or parameter. While equity mutual funds may appear to have a lower risk than direct equity investments, every mutual fund category carries its level of risk. Therefore, before investing in any mutual fund, assessing the riskometer associated with that particular fund is imperative. Each scheme is assigned a risk level, enabling you to understand the risks.
Another critical point is that direct plans boast lower Expense Ratios than regular plans, leading to superior returns. Some investors mistakenly believe that direct plans and regular plans of mutual fund schemes differ significantly. In reality, they represent plans for the same scheme. Consequently, fund house costs are lower, translating to reduced annual investor expenses.
Mutual fund returns are typically annualised, potentially misleading investors into expecting consistent annual returns. However, mutual fund returns are not linear and can fluctuate significantly. For instance, a scheme may yield +10% returns in one year and -2% returns in the next. Such variability necessitates preparation to handle fluctuations in annual returns.
Consistent returns are indicative of a robust fund, surpassing sporadic high-return funds. Consistency in performance is crucial for mitigating losses and increasing the likelihood of favourable returns over the long term. A consistent fund is better positioned to offset losses and deliver superior annualised returns.
SIPs instil investing discipline by automating investments and leveraging market volatility. SIPs enable you to capitalise on market downturns by acquiring more units at lower prices, effectively reducing the overall investment cost. This strategy, known as Rupee Cost Averaging, facilitates long-term wealth accumulation.
Diversification through Asset Allocation is essential to mitigate portfolio risk. Before investing, determine the allocation across asset classes like equities, gold, and debt. Additionally, periodic rebalancing is critical to maintain the desired asset allocation. Rebalancing involves adjusting the portfolio by booking profits from asset classes that have appreciated and reinvesting in underweighted asset classes, ensuring alignment with investment objectives.
To ensure healthy returns from mutual fund investments, it is wise to consider the following guidelines:
Choosing mutual funds involves a two-stage process: selecting the category and then choosing the scheme that aligns with one's goals and risk tolerance. Fund type, performance, AMC track record, and fund manager expertise should be carefully evaluated. It's also important to consider the scheme's operational fees, exit charges, and volatility. Also, you should consider the tax implications of long-term and short-term gains across all fund categories before deciding.