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 ₹55.59
↓ -0.15 ₹1,171 23.8 49 90.8 36.7 28.7 50.3 Franklin Build India Fund Growth ₹144.797
↑ 0.41 ₹2,530 16.6 33 78.5 36.3 27.1 51.1 ICICI Prudential Nifty Next 50 Index Fund Growth ₹64.137
↑ 0.31 ₹5,284 16.2 35.2 65.2 23.6 21.1 26.3 IDBI Nifty Junior Index Fund Growth ₹54.0879
↑ 0.26 ₹84 16 34.8 64.3 23.3 20.9 25.7 L&T India Value Fund Growth ₹108.964
↑ 0.46 ₹12,373 15.2 27.5 61.1 28.5 24.3 39.4 L&T Emerging Businesses Fund Growth ₹86.6349
↑ 0.33 ₹14,787 19.2 25.9 57.7 31.5 29.4 46.1 Motilal Oswal Multicap 35 Fund Growth ₹56.6835
↑ 0.53 ₹10,013 13.7 28.1 56.5 18.9 15.9 31 DSP BlackRock Natural Resources and New Energy Fund Growth ₹93.557
↑ 0.64 ₹1,173 10.9 24.8 56 22.4 23.4 31.2 Invesco India Growth Opportunities Fund Growth ₹89.55
↑ 0.37 ₹5,280 15.4 28 54.8 22.9 20.8 31.6 Tata Equity PE Fund Growth ₹357.73
↓ -0.45 ₹7,905 15.5 24.2 52.2 26.8 21.3 37 Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Jul 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 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 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 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 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 (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 seek to generate capital appreciation and provide long term growth opportunities by investing in equity and equity related securities of companies domiciled in India whose predominant economic activity is in the (a) discovery, development, production, or distribution of natural resources, viz., energy, mining etc; (b) alternative energy and energy technology sectors, with emphasis given to renewable energy, automotive and on-site power generation, energy storage and enabling energy technologies. also invest a certain portion of its corpus in the equity and equity related securities of companies domiciled overseas, which are principally engaged in the discovery, development, production or distribution of natural resources and alternative energy and/or the units shares of Merrill Lynch international Investment Funds New Energy Fund, Merrill Lynch International Investment Funds World Energy Fund and similar other overseas mutual fund schemes. DSP BlackRock Natural Resources and New Energy Fund is a Equity - Sectoral fund was launched on 25 Apr 08. It is a fund with High risk and has given a Below is the key information for DSP BlackRock Natural Resources and New Energy 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 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 1. IDFC Infrastructure Fund
CAGR/Annualized
return of 13.8% 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 (04 Jul 24) ₹55.59 ↓ -0.15 (-0.26 %) Net Assets (Cr) ₹1,171 on 30 Apr 24 Category Equity - Sectoral AMC IDFC Asset Management Company Limited Rating ☆☆☆☆☆ Risk High Expense Ratio 2.44 Sharpe Ratio 3.99 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 30 Jun 19 ₹10,000 30 Jun 20 ₹7,399 30 Jun 21 ₹13,866 30 Jun 22 ₹13,265 30 Jun 23 ₹18,629 30 Jun 24 ₹34,701 Returns for IDFC Infrastructure Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 6.7% 3 Month 23.8% 6 Month 49% 1 Year 90.8% 3 Year 36.7% 5 Year 28.7% 10 Year 15 Year Since launch 13.8% 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 0.35 Yr. Ritika Behera 7 Oct 23 0.65 Yr. Data below for IDFC Infrastructure Fund as on 30 Apr 24
Equity Sector Allocation
Sector Value Industrials 58.06% Basic Materials 12.33% Utility 9.83% Communication Services 4.94% Consumer Cyclical 4.1% Technology 2.71% Health Care 1.64% Financial Services 1.35% Energy 0.42% Asset Allocation
Asset Class Value Cash 4.63% Equity 95.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Kirloskar Brothers Ltd (Industrials)
Equity, Since 31 Dec 17 | KIRLOSBROS5% ₹73 Cr 426,753
↓ -39,681 Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 12 | LT5% ₹72 Cr 195,375 Adani Ports & Special Economic Zone Ltd (Industrials)
Equity, Since 31 Dec 23 | ADANIPORTS5% ₹65 Cr 450,239
↑ 143,423 Bharat Electronics Ltd (Industrials)
Equity, Since 31 Oct 19 | BEL4% ₹56 Cr 1,905,598 Ahluwalia Contracts (India) Ltd (Industrials)
Equity, Since 30 Apr 15 | AHLUCONT4% ₹51 Cr 431,238 Torrent Power Ltd (Utilities)
Equity, Since 31 Mar 18 | 5327793% ₹44 Cr 291,337 UltraTech Cement Ltd (Basic Materials)
Equity, Since 31 Mar 14 | ULTRACEMCO3% ₹39 Cr 38,965 Jindal Steel & Power Ltd (Basic Materials)
Equity, Since 31 Mar 18 | 5322863% ₹38 Cr 366,666 GPT Infraprojects Ltd (Industrials)
Equity, Since 30 Nov 17 | GPTINFRA3% ₹37 Cr 1,619,950 H.G. Infra Engineering Ltd Ordinary Shares (Industrials)
Equity, Since 28 Feb 18 | HGINFRA3% ₹35 Cr 231,984
↓ -5,777 2. Franklin Build India Fund
CAGR/Annualized
return of 19.7% 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 (04 Jul 24) ₹144.797 ↑ 0.41 (0.29 %) Net Assets (Cr) ₹2,530 on 31 May 24 Category Equity - Sectoral AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 2.29 Sharpe Ratio 3.96 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 30 Jun 19 ₹10,000 30 Jun 20 ₹7,621 30 Jun 21 ₹12,989 30 Jun 22 ₹13,563 30 Jun 23 ₹18,522 30 Jun 24 ₹32,881 Returns for Franklin Build India Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 2.3% 3 Month 16.6% 6 Month 33% 1 Year 78.5% 3 Year 36.3% 5 Year 27.1% 10 Year 15 Year Since launch 19.7% 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 2.62 Yr. Kiran Sebastian 7 Feb 22 2.31 Yr. Sandeep Manam 18 Oct 21 2.62 Yr. Data below for Franklin Build India Fund as on 31 May 24
Equity Sector Allocation
Sector Value Industrials 42.68% Utility 11.52% Financial Services 10.17% Energy 9.27% Basic Materials 6.71% Communication Services 5.55% Real Estate 4.17% Consumer Cyclical 4.16% Technology 1.11% Asset Allocation
Asset Class Value Cash 4.66% Equity 95.34% Top Securities Holdings / Portfolio
Name Holding Value Quantity Larsen & Toubro Ltd (Industrials)
Equity, Since 29 Feb 20 | LT9% ₹229 Cr 625,000
↑ 25,000 NTPC Ltd (Utilities)
Equity, Since 30 Nov 16 | 5325556% ₹153 Cr 4,250,000 Kirloskar Oil Engines Ltd (Industrials)
Equity, Since 30 Nov 21 | KIRLOSENG6% ₹140 Cr 1,119,847 Oil & Natural Gas Corp Ltd (Energy)
Equity, Since 30 Jun 19 | 5003125% ₹126 Cr 4,750,000 Power Grid Corp Of India Ltd (Utilities)
Equity, Since 28 Feb 21 | 5328985% ₹115 Cr 3,725,000 Reliance Industries Ltd (Energy)
Equity, Since 31 Oct 21 | RELIANCE4% ₹109 Cr 381,000 Kirloskar Pneumatic Co Ltd (Industrials)
Equity, Since 31 Aug 22 | 5052834% ₹100 Cr 813,847
↓ -11,153 Bharti Airtel Ltd (Communication Services)
Equity, Since 30 Sep 09 | BHARTIARTL4% ₹97 Cr 710,000 KEI Industries Ltd (Industrials)
Equity, Since 31 Dec 15 | KEI4% ₹94 Cr 229,407 Sobha Ltd (Real Estate)
Equity, Since 31 Aug 17 | SOBHA4% ₹93 Cr 490,000 3. 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 (04 Jul 24) ₹64.137 ↑ 0.31 (0.49 %) Net Assets (Cr) ₹5,284 on 31 May 24 Category Others - Index Fund AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.7 Sharpe Ratio 3.06 Information Ratio -12.43 Alpha Ratio -0.64 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 30 Jun 19 ₹10,000 30 Jun 20 ₹9,399 30 Jun 21 ₹13,988 30 Jun 22 ₹13,302 30 Jun 23 ₹15,921 30 Jun 24 ₹26,024 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 4 Jul 24 Duration Returns 1 Month 2.8% 3 Month 16.2% 6 Month 35.2% 1 Year 65.2% 3 Year 23.6% 5 Year 21.1% 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 3.37 Yr. Priya Sridhar 1 Feb 24 0.33 Yr. Ajaykumar Solanki 1 Feb 24 0.33 Yr. Data below for ICICI Prudential Nifty Next 50 Index Fund as on 31 May 24
Asset Allocation
Asset Class Value Equity 100.22% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bharat Electronics Ltd (Industrials)
Equity, Since 30 Sep 22 | BEL5% ₹278 Cr 9,393,460
↑ 331,849 Trent Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 5002515% ₹264 Cr 577,992
↑ 20,401 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL5% ₹244 Cr 491,074
↑ 17,336 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | 5004004% ₹194 Cr 4,441,370
↑ 156,895 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 24 | 5328104% ₹188 Cr 3,808,055
↑ 134,517 REC Ltd (Financial Services)
Equity, Since 31 Mar 24 | 5329553% ₹175 Cr 3,245,707
↑ 114,656 Siemens Ltd (Industrials)
Equity, Since 30 Apr 13 | 5005503% ₹163 Cr 233,463
↑ 8,232 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | 5002953% ₹158 Cr 3,509,477
↑ 123,969 InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Sep 16 | INDIGO3% ₹157 Cr 374,505
↑ 13,211 Indian Oil Corp Ltd (Energy)
Equity, Since 31 Mar 22 | IOC3% ₹156 Cr 9,628,784
↑ 340,162 4. 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 (04 Jul 24) ₹54.0879 ↑ 0.26 (0.48 %) Net Assets (Cr) ₹84 on 31 May 24 Category Others - Index Fund AMC IDBI Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 0.73 Sharpe Ratio 3.03 Information Ratio -7.27 Alpha Ratio -1.05 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 30 Jun 19 ₹10,000 30 Jun 20 ₹9,439 30 Jun 21 ₹13,921 30 Jun 22 ₹13,254 30 Jun 23 ₹15,852 30 Jun 24 ₹25,768 Returns for IDBI Nifty Junior Index Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 2.7% 3 Month 16% 6 Month 34.8% 1 Year 64.3% 3 Year 23.3% 5 Year 20.9% 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 0.66 Yr. Data below for IDBI Nifty Junior Index Fund as on 31 May 24
Asset Allocation
Asset Class Value Cash 0.63% Equity 99.37% Top Securities Holdings / Portfolio
Name Holding Value Quantity Bharat Electronics Ltd (Industrials)
Equity, Since 30 Sep 22 | BEL5% ₹4 Cr 148,128
↑ 1,181 Trent Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | 5002515% ₹4 Cr 9,136
↑ 26 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 30 Sep 22 | HAL5% ₹4 Cr 7,780
↑ 115 Tata Power Co Ltd (Utilities)
Equity, Since 31 Aug 22 | 5004004% ₹3 Cr 70,433
↑ 1,106 Power Finance Corp Ltd (Financial Services)
Equity, Since 31 Mar 24 | 5328104% ₹3 Cr 59,970
↑ 288 REC Ltd (Financial Services)
Equity, Since 31 Mar 24 | 5329553% ₹3 Cr 51,223
↑ 548 Siemens Ltd (Industrials)
Equity, Since 30 Apr 13 | 5005503% ₹3 Cr 3,684
↓ -03 Vedanta Ltd (Basic Materials)
Equity, Since 31 Mar 21 | 5002953% ₹3 Cr 55,642
↑ 780 InterGlobe Aviation Ltd (Industrials)
Equity, Since 30 Sep 16 | INDIGO3% ₹2 Cr 5,900
↑ 77 Indian Oil Corp Ltd (Energy)
Equity, Since 31 Mar 22 | IOC3% ₹2 Cr 152,088
↑ 1,553 5. L&T India Value Fund
CAGR/Annualized
return of 17.9% 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 (04 Jul 24) ₹108.964 ↑ 0.46 (0.42 %) Net Assets (Cr) ₹12,373 on 31 May 24 Category Equity - Value AMC L&T Investment Management Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.84 Sharpe Ratio 3.53 Information Ratio 1.5 Alpha Ratio 16.67 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 30 Jun 19 ₹10,000 30 Jun 20 ₹8,460 30 Jun 21 ₹14,055 30 Jun 22 ₹13,998 30 Jun 23 ₹18,453 30 Jun 24 ₹29,559 Returns for L&T India Value Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 5.3% 3 Month 15.2% 6 Month 27.5% 1 Year 61.1% 3 Year 28.5% 5 Year 24.3% 10 Year 15 Year Since launch 17.9% 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 11.53 Yr. Gautam Bhupal 1 Oct 23 0.67 Yr. Sonal Gupta 1 Oct 23 0.67 Yr. Data below for L&T India Value Fund as on 31 May 24
Equity Sector Allocation
Sector Value Financial Services 26.95% Industrials 17.51% Basic Materials 15.94% Technology 8.68% Consumer Cyclical 8.61% Real Estate 6.02% Utility 4.29% Consumer Defensive 3.62% Energy 3.35% Health Care 2% Communication Services 1.87% Asset Allocation
Asset Class Value Cash 1.15% Equity 98.85% Top Securities Holdings / Portfolio
Name Holding Value Quantity NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | 5325554% ₹531 Cr 14,788,800
↓ -332,300 Jindal Stainless Ltd (Basic Materials)
Equity, Since 31 Jul 21 | JSL4% ₹512 Cr 6,448,900
↓ -346,709 ICICI Bank Ltd (Financial Services)
Equity, Since 30 Apr 11 | ICICIBANK4% ₹491 Cr 4,382,100 State Bank of India (Financial Services)
Equity, Since 30 Nov 20 | SBIN4% ₹479 Cr 5,766,900 Mahindra & Mahindra Ltd (Consumer Cyclical)
Equity, Since 31 Jul 20 | M&M3% ₹358 Cr 1,427,504 Indian Bank (Financial Services)
Equity, Since 31 Oct 21 | 5328143% ₹349 Cr 6,147,000 Kirloskar Oil Engines Ltd (Industrials)
Equity, Since 30 Sep 22 | KIRLOSENG3% ₹341 Cr 2,733,200
↓ -29,636 Canara Bank (Financial Services)
Equity, Since 31 Jan 22 | 5324833% ₹324 Cr 27,434,000 Brigade Enterprises Ltd (Real Estate)
Equity, Since 30 Jun 17 | 5329292% ₹297 Cr 2,314,226 Multi Commodity Exchange of India Ltd (Financial Services)
Equity, Since 30 Sep 23 | MCX2% ₹290 Cr 798,650 6. L&T Emerging Businesses Fund
CAGR/Annualized
return of 23.7% 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 (04 Jul 24) ₹86.6349 ↑ 0.33 (0.39 %) Net Assets (Cr) ₹14,787 on 31 May 24 Category Equity - Small Cap AMC L&T Investment Management Ltd Rating ☆☆☆☆☆ Risk High Expense Ratio 1.84 Sharpe Ratio 2.35 Information Ratio 0.64 Alpha Ratio 0.95 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 30 Jun 19 ₹10,000 30 Jun 20 ₹7,797 30 Jun 21 ₹15,737 30 Jun 22 ₹17,233 30 Jun 23 ₹23,072 30 Jun 24 ₹35,781 Returns for L&T Emerging Businesses Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 9.8% 3 Month 19.2% 6 Month 25.9% 1 Year 57.7% 3 Year 31.5% 5 Year 29.4% 10 Year 15 Year Since launch 23.7% 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 4.46 Yr. Cheenu Gupta 1 Oct 23 0.67 Yr. Sonal Gupta 1 Oct 23 0.67 Yr. Data below for L&T Emerging Businesses Fund as on 31 May 24
Equity Sector Allocation
Sector Value Industrials 35.57% Consumer Cyclical 13.99% Basic Materials 13.49% Financial Services 9.67% Technology 8.37% Real Estate 7.46% Health Care 4.06% Consumer Defensive 2.33% Energy 1.52% Asset Allocation
Asset Class Value Cash 2.31% Equity 97.69% Top Securities Holdings / Portfolio
Name Holding Value Quantity Apar Industries Ltd (Industrials)
Equity, Since 31 Mar 17 | APARINDS3% ₹502 Cr 635,400 Brigade Enterprises Ltd (Real Estate)
Equity, Since 31 Jul 19 | 5329293% ₹496 Cr 3,866,279 KEI Industries Ltd (Industrials)
Equity, Since 31 Jan 20 | KEI3% ₹389 Cr 947,670 Techno Electric & Engineering Co Ltd (Industrials)
Equity, Since 31 Jan 19 | TECHNOE2% ₹365 Cr 2,573,042 EIH Ltd (Consumer Cyclical)
Equity, Since 31 May 17 | 5008402% ₹358 Cr 8,283,239
↓ -344,234 Sobha Ltd (Real Estate)
Equity, Since 31 Mar 17 | SOBHA2% ₹327 Cr 1,721,853 Century Textiles & Industries Ltd (Basic Materials)
Equity, Since 30 Sep 22 | 5000402% ₹325 Cr 1,607,279 NCC Ltd (Industrials)
Equity, Since 28 Feb 21 | NCC2% ₹324 Cr 11,291,100 KPIT Technologies Ltd (Technology)
Equity, Since 30 Sep 21 | KPITTECH2% ₹319 Cr 2,188,200 Ratnamani Metals & Tubes Ltd (Basic Materials)
Equity, Since 30 Nov 17 | RATNAMANI2% ₹287 Cr 842,458 7. Motilal Oswal Multicap 35 Fund
CAGR/Annualized
return of 18.5% 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 (04 Jul 24) ₹56.6835 ↑ 0.53 (0.94 %) Net Assets (Cr) ₹10,013 on 30 Apr 24 Category Equity - Multi Cap AMC Motilal Oswal Asset Management Co. Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.41 Sharpe Ratio 5.56 Information Ratio -0.41 Alpha Ratio 24.85 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 30 Jun 19 ₹10,000 30 Jun 20 ₹8,669 30 Jun 21 ₹12,540 30 Jun 22 ₹11,191 30 Jun 23 ₹13,470 30 Jun 24 ₹20,930 Returns for Motilal Oswal Multicap 35 Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 8.5% 3 Month 13.7% 6 Month 28.1% 1 Year 56.5% 3 Year 18.9% 5 Year 15.9% 10 Year 15 Year Since launch 18.5% 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 1.92 Yr. Ankush Sood 25 Aug 21 2.77 Yr. Santosh Singh 1 Aug 23 0.84 Yr. Rakesh Shetty 22 Nov 22 1.53 Yr. Data below for Motilal Oswal Multicap 35 Fund as on 30 Apr 24
Equity Sector Allocation
Sector Value Industrials 24.37% Financial Services 22.75% Consumer Cyclical 21.14% Technology 12.68% Communication Services 10.5% Real Estate 2.39% Basic Materials 2.18% Health Care 1.6% Asset Allocation
Asset Class Value Cash 2.39% Equity 97.61% Top Securities Holdings / Portfolio
Name Holding Value Quantity Jio Financial Services Ltd (Financial Services)
Equity, Since 31 Jul 23 | 54394011% ₹1,085 Cr 31,500,000 Tube Investments of India Ltd Ordinary Shares (Industrials)
Equity, Since 31 May 22 | TIINDIA8% ₹769 Cr 2,150,000
↑ 200,000 Persistent Systems Ltd (Technology)
Equity, Since 31 Mar 23 | PERSISTENT7% ₹750 Cr 2,200,000 Polycab India Ltd (Industrials)
Equity, Since 31 Jan 24 | POLYCAB7% ₹742 Cr 1,100,000 Zomato Ltd (Consumer Cyclical)
Equity, Since 30 Apr 23 | 5433206% ₹627 Cr 35,000,000
↑ 5,000,000 Kalyan Jewellers India Ltd (Consumer Cyclical)
Equity, Since 30 Sep 23 | KALYANKJIL5% ₹544 Cr 14,000,000
↑ 1,000,000 Coforge Ltd (Technology)
Equity, Since 31 May 23 | COFORGE5% ₹522 Cr 1,050,000 Bharti Airtel Ltd (Partly Paid Rs.1.25) (Communication Services)
Equity, Since 30 Apr 24 | 8901575% ₹468 Cr 4,739,309
↑ 489,309 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 31 Mar 23 | CHOLAFIN5% ₹465 Cr 3,750,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Mar 24 | HAL4% ₹373 Cr 750,000
↑ 50,000 8. DSP BlackRock Natural Resources and New Energy Fund
CAGR/Annualized
return of 14.8% since its launch. Ranked 2 in Sectoral
category. Return for 2023 was 31.2% , 2022 was 9.8% and 2021 was 42.8% . DSP BlackRock Natural Resources and New Energy Fund
Growth Launch Date 25 Apr 08 NAV (03 Jul 24) ₹93.557 ↑ 0.64 (0.69 %) Net Assets (Cr) ₹1,173 on 31 May 24 Category Equity - Sectoral AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆☆☆ Risk High Expense Ratio 2.14 Sharpe Ratio 2.85 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-12 Months (1%),12 Months and above(NIL) Sub Cat. Sectoral Growth of 10,000 investment over the years.
Date Value 30 Jun 19 ₹10,000 30 Jun 20 ₹8,114 30 Jun 21 ₹15,682 30 Jun 22 ₹14,232 30 Jun 23 ₹18,101 30 Jun 24 ₹28,316 Returns for DSP BlackRock Natural Resources and New Energy Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month -1% 3 Month 10.9% 6 Month 24.8% 1 Year 56% 3 Year 22.4% 5 Year 23.4% 10 Year 15 Year Since launch 14.8% Historical performance (Yearly) on absolute basis
Year Returns 2023 31.2% 2022 9.8% 2021 42.8% 2020 11.5% 2019 4.4% 2018 -15.3% 2017 43.1% 2016 43.1% 2015 -1.7% 2014 46.8% Fund Manager information for DSP BlackRock Natural Resources and New Energy Fund
Name Since Tenure Rohit Singhania 1 Jul 12 11.93 Yr. Jay Kothari 1 Mar 13 11.26 Yr. Data below for DSP BlackRock Natural Resources and New Energy Fund as on 31 May 24
Equity Sector Allocation
Sector Value Basic Materials 44.47% Energy 36.24% Utility 12.79% Industrials 2.19% Technology 2.11% Consumer Defensive 0.06% Asset Allocation
Asset Class Value Cash 2.14% Equity 97.85% Debt 0.01% Top Securities Holdings / Portfolio
Name Holding Value Quantity Coal India Ltd (Energy)
Equity, Since 31 Mar 22 | COALINDIA9% ₹108 Cr 2,203,972 Hindalco Industries Ltd (Basic Materials)
Equity, Since 31 Oct 15 | HINDALCO9% ₹106 Cr 1,534,067 BGF World Energy I2
Investment Fund | -9% ₹101 Cr 404,694
↑ 32,158 Tata Steel Ltd (Basic Materials)
Equity, Since 31 Aug 16 | TATASTEEL8% ₹97 Cr 5,785,263 GAIL (India) Ltd (Utilities)
Equity, Since 31 Aug 20 | 5321558% ₹93 Cr 4,531,131
↑ 1,220,010 Jindal Steel & Power Ltd (Basic Materials)
Equity, Since 31 Mar 20 | 5322867% ₹83 Cr 803,550
↓ -17,498 BGF Sustainable Energy I2
Investment Fund | -6% ₹73 Cr 443,474
↑ 30,427 NMDC Ltd (Basic Materials)
Equity, Since 30 Sep 18 | 5263715% ₹53 Cr 2,032,001
↓ -844,362 Reliance Industries Ltd (Energy)
Equity, Since 31 Aug 08 | RELIANCE4% ₹51 Cr 179,041 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 Aug 08 | 5005474% ₹46 Cr 726,439
↑ 118,157 9. Invesco India Growth Opportunities Fund
CAGR/Annualized
return of 13.8% 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 (04 Jul 24) ₹89.55 ↑ 0.37 (0.41 %) Net Assets (Cr) ₹5,280 on 31 May 24 Category Equity - Large & Mid Cap AMC Invesco Asset Management (India) Private Ltd Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.91 Sharpe Ratio 3.45 Information Ratio -0.18 Alpha Ratio 9.98 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 30 Jun 19 ₹10,000 30 Jun 20 ₹9,124 30 Jun 21 ₹13,885 30 Jun 22 ₹13,353 30 Jun 23 ₹16,743 30 Jun 24 ₹25,722 Returns for Invesco India Growth Opportunities Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 7.8% 3 Month 15.4% 6 Month 28% 1 Year 54.8% 3 Year 22.9% 5 Year 20.8% 10 Year 15 Year Since launch 13.8% 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 0.56 Yr. Amit Ganatra 21 Jan 22 2.36 Yr. Data below for Invesco India Growth Opportunities Fund as on 31 May 24
Equity Sector Allocation
Sector Value Financial Services 27.46% Consumer Cyclical 19.57% Industrials 16.65% Health Care 10.05% Technology 6.42% Real Estate 5.43% Basic Materials 4.92% Communication Services 3.12% Utility 2.97% Consumer Defensive 1.91% Asset Allocation
Asset Class Value Cash 1.49% Equity 98.51% Top Securities Holdings / Portfolio
Name Holding Value Quantity ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 15 | ICICIBANK5% ₹258 Cr 2,299,873
↓ -199,676 Axis Bank Ltd (Financial Services)
Equity, Since 31 Dec 23 | 5322155% ₹254 Cr 2,185,422
↓ -292,039 Cholamandalam Investment and Finance Co Ltd (Financial Services)
Equity, Since 28 Feb 23 | CHOLAFIN4% ₹221 Cr 1,781,978 Prestige Estates Projects Ltd (Real Estate)
Equity, Since 31 Dec 23 | PRESTIGE4% ₹198 Cr 1,239,231 Trent Ltd (Consumer Cyclical)
Equity, Since 28 Feb 22 | 5002513% ₹176 Cr 386,965 NTPC Ltd (Utilities)
Equity, Since 30 Apr 21 | 5325553% ₹157 Cr 4,373,533
↓ -1,243,614 InterGlobe Aviation Ltd (Industrials)
Equity, Since 31 Mar 24 | INDIGO3% ₹152 Cr 362,864
↓ -38,531 Max Healthcare Institute Ltd Ordinary Shares (Healthcare)
Equity, Since 30 Nov 22 | MAXHEALTH3% ₹150 Cr 1,993,259 Coforge Ltd (Technology)
Equity, Since 31 Mar 22 | COFORGE3% ₹143 Cr 286,837
↑ 146,255 The Federal Bank Ltd (Financial Services)
Equity, Since 30 Nov 22 | FEDERALBNK2% ₹127 Cr 7,809,244
↑ 2,974,624 10. 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 (04 Jul 24) ₹357.73 ↓ -0.45 (-0.12 %) Net Assets (Cr) ₹7,905 on 31 May 24 Category Equity - Value AMC Tata Asset Management Limited Rating ☆☆☆☆☆ Risk Moderately High Expense Ratio 1.72 Sharpe Ratio 2.84 Information Ratio 1.62 Alpha Ratio 7.36 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 30 Jun 19 ₹10,000 30 Jun 20 ₹8,944 30 Jun 21 ₹13,028 30 Jun 22 ₹13,487 30 Jun 23 ₹17,316 30 Jun 24 ₹26,113 Returns for Tata Equity PE Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 4 Jul 24 Duration Returns 1 Month 4.9% 3 Month 15.5% 6 Month 24.2% 1 Year 52.2% 3 Year 26.8% 5 Year 21.3% 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 8.17 Yr. Amey Sathe 18 Jun 18 5.96 Yr. Data below for Tata Equity PE Fund as on 31 May 24
Equity Sector Allocation
Sector Value Financial Services 28.57% Energy 13.15% Consumer Cyclical 12.75% Utility 9.8% Industrials 9.16% Basic Materials 7.47% Consumer Defensive 6.14% Technology 4.36% Communication Services 3.06% Health Care 2.82% Asset Allocation
Asset Class Value Cash 2.71% Equity 97.29% Top Securities Holdings / Portfolio
Name Holding Value Quantity HDFC Bank Ltd (Financial Services)
Equity, Since 30 Jun 18 | HDFCBANK8% ₹656 Cr 4,279,996
↑ 1,222,996 Bharat Petroleum Corp Ltd (Energy)
Equity, Since 31 Dec 23 | 5005475% ₹424 Cr 6,750,000
↑ 380,000 Coal India Ltd (Energy)
Equity, Since 31 Mar 22 | COALINDIA4% ₹339 Cr 6,893,777
↓ -400,000 Hindustan Aeronautics Ltd Ordinary Shares (Industrials)
Equity, Since 31 Dec 21 | HAL4% ₹331 Cr 665,500
↓ -135,000 NTPC Ltd (Utilities)
Equity, Since 30 Apr 22 | 5325554% ₹295 Cr 8,215,000 Adani Power Ltd (Utilities)
Equity, Since 31 May 24 | 5330963% ₹272 Cr 3,600,000
↑ 3,600,000 ITC Ltd (Consumer Defensive)
Equity, Since 31 Jul 18 | ITC3% ₹269 Cr 6,310,000 ICICI Bank Ltd (Financial Services)
Equity, Since 31 Dec 18 | ICICIBANK3% ₹258 Cr 2,300,000
↓ -400,000 Wipro Ltd (Technology)
Equity, Since 31 Dec 23 | 5076853% ₹257 Cr 5,860,000 Raymond Ltd (Consumer Cyclical)
Equity, Since 31 Jul 23 | RAYMOND3% ₹249 Cr 1,126,710
↑ 8,000
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.