Mutual funds have emerged as one of the most popular investment options in recent times. They are essentially a pool of funds where you can park your money to meet your investment objectives. Mutual funds are managed by professional fund managers who invest your money in equities, bonds, and other money market instruments to provide superior returns.
Unlike the stock market, mutual funds allow you to diversify your investment portfolio by maintaining appropriate asset allocation across equity, debt, and hybrid funds. However, one crucial factor you need to remember before investing in mutual funds is that the returns are never guaranteed.
You need to invest in the right funds to maximize your chances of gaining high returns. Below are some top-performing mutual funds in India:
- Axis Bluechip Fund (Direct-Growth)
Axis Bluechip Fund is rated as a 5-star mutual fund by the CRISIL. It is a large-cap fund that has been able to perform consistently as compared to its benchmarks. It has provided 50.7% returns in the past year, and its 3-year annualized returns stood at 23.46%. The average time taken by this fund to double the invested money is 4.11 years.
The fund has invested 97.59% of its money in Indian stocks, 83.53% of which are large-cap stocks and 2.2% are mid-cap stocks. For maximum gains, we recommend keeping your money in this fund for at least three to four years.
- Mirae Asset Emerging Bluechip Fund
Mirae Asset Emerging Bluechip Fund is another 5-star rated mutual fund in which you can invest your money. The fund has performed exceedingly well in the past three to five years. It has 99.2% investment in Indian stocks, 44.28% of which are large-cap stocks, 28.1% are mid-cap stocks, and 9.45% are small-cap stocks.
The fund has provided annualized returns of 68.9% for one year and 29.85% for three years. However, owing to sufficient equity exposure, this fund carries a high risk as well.
- Aditya Birla Sun Life Savings Fund
Aditya Birla Sun Life Savings Fund is our only debt mutual fund on this list. It has 93.74% investment in debt instruments, which comprises 24.77% Government securities and 68.98% private securities. This fund has provided annualized returns of 6.94% for three years and 7.05% for five years.
Aditya Birla Sun Life Savings Fund is beneficial mainly for conservative and short-term investors. If you are looking for an alternative to a savings bank account or fixed deposits, you can invest in these funds.
Conclusion
These mutual funds have performed consistently in the past and, hence, are expected to provide reasonable returns. However, we cannot guarantee the outcome, and it’s prudent to conduct your own research before making any investment decision. It’s better to start with a small SIP and gradually increase your investment amount.
The Tata Capital Moneyfy App can make your mutual fund investment journey a breeze. You can self-analyze the past performances of the funds and invest in them using your smartphone.
