New to the mutual fund industry? Scouting for the best funds on offer? You have come to the right place to know the same. Any investment is greatly driven by the financial goals you may like to achieve over a period of time.
The goals can be short-term or long-term. While the short-term investors mainly look for the liquidity, the long-term counterparts have their eyes firmly attached on the appreciation of the capital over a period of time.
The latter group of investors seeks a higher rate of return and can wait for as long as 10-15 years. Risk-appetite is also one of the factors to decide the funds you would be comfortable investing into. The goals and risk-appetite allow you to choose the types of funds that can go in sync with you. Within the types, you need to find the best. You can stay with us to know the top-performing mutual funds falling under different categories.
Categories of Mutual Funds
Mutual funds are broadly categorized into equity, debt and hybrid funds. Under these funds, there are many sub-classification of funds, which have the potential to fulfill the specific investor needs.
Top-performing Equity Funds
ICICI Prudential Focused Bluechip Equity Fund
The fund invests predominantly in the stocks of 20 large-cap companies, chosen from the top 200 stocks listed on National Stock Exchange (NSE). In the event of the Asset Under Management (AUM) crossing ₹1,000 crores, companies apart from Top 20 can be added to the portfolio.
Returns – 15.94% (1-year)
- 12.10% (3-year)
20.14% Since inception in 2008
Principal Emerging Bluechip Fund
The fund aims to invest 65%-95% of the portfolio in mid-cap stocks, with a market cap in the range of benchmark Nifty MidCap Index. The 5%-15% of the portfolio is invested in small-cap stocks with market capitalization lower than the market cap of the last stock in the benchmark Nifty Midcap 100 index.
Returns – 22.21% (1-year)
- 22.15% (3-year)
29.70% Since inception in 2008
ICICI Prudential Value Discovery Fund
One of the top-performing equity funds, the value discovery fund looks to invest in a diversified portfolio of company stocks at a discount to its fair value.
Returns – 6.86% (1-year)
- 11.39% (3-year)
22% Since inception in 2004
Top-performing Debt Funds
Birla Sun Life Floating Rate Fund Short Term Plan
The aim of the fund is to generate a regular flow of income for the investors by investing mainly in floating rate debt or money market instruments. It can also allocate some of its assets in fixed rate securities if the market situation permits.
Returns – 6.86% (1-year)
- 7.89% (3-year)
8.04% Since inception in 2005
ICICI Prudential Liquid Plan
The fund looks to generate reasonable returns and ensure liquidity remains on the higher side. Nearly 80% of the corpus goes into money-market instruments such as certificates of deposits, commercial paper, the treasury of bills, etc.
Returns – 6.79% (1-year)
- 7.83% (3-year)
7.96% Since founded in 2005
Franklin India Treasury Management Account – Super Institutional Plan
Seeking to generate high liquidity, the fund invests the entire corpus in debt and money-market instruments.
Returns – 6.84% (1-year)
- 7.93% (3-year)
7.91% Since founded in 2005
Top-performing Hybrid Funds
Franklin India Dynamic P E Ratio Fund of Funds
A long-term capital appreciation at reduced market volatility is ensured by the fund, which invests in a dynamic portfolio of equity and debt securities. The allocation of assets towards equity will be based on the month-end average PE ratio of NSE Nifty.
Returns – 10.43% (1-year)
- 10.28% (3-year)
15.67% Since Inception in 2003
HDFC Dynamic PE Ratio Fund of Funds
Aiming for a capital appreciation, the fund manages the assets between the specified equity and debt schemes of HDFC Mutual Fund.
Returns – 13.71% (1-year)
- 11.49% (3-year)
10.28% Since Inception in 2012
DSP Blackrock Dynamic Asset Allocation Fund
The scheme seeks capital appreciation and income generation for the investors by investing in a carefully chosen portfolio of equity and debt securities issued by banks and public-sector entities.
Returns – 8.70% (1-year)
- 9.24% (3-year)
10.28% Since Inception in 2014
Top Performing SIP Mutual Funds
Below are the funds that have offered handsome returns to the investors choosing an SIP mode of investment.
SBI BlueChip Fund-Reg (Growth)
With an eye on the capital appreciation, the fund offers long-term growth opportunities by investing in the stocks of companies having market capitalization > least market capitalized stock of the BSE 100 Index.
Return – 22.74% (3-year)
- 18.82% (5-year)
Birla SL Frontline Equity Fund (Growth)
This is an open-ended growth scheme that seeks to appreciate the capital over the long-term by investing in a diversified portfolio of sector and industry stocks.
Return – 21.23% (3-year)
- 17.29% (5-year)
Franklin India Prima Plus Fund (Growth)
The open-ended growth scheme seeks capital appreciation along with regular dividend for the investors by investing the corpus in equity, fixed-income securities and money-market instruments.
Return – 24.55% (3-year)
- 17.89% (5-year)
So, the top-performing mutual funds with their respective returns are explained in the best way possible. Before choosing a fund, be aware of goals and the risk-appetite you have. Ignorance on these fronts can disturb your financial journey in a big way. On the other hand, a clear idea of the same helps you choose the right fund and ultimately strengthen your financial portfolio to deal with the challenges ahead.
Disclaimer – Mutual Funds are subject to market risks. Please read the scheme related documents carefully before investing.