Best Mutual Funds to Invest: Top Performers based on One-Year Returns
Investing in mutual funds has always been a popular choice for investors seeking long-term growth and diversification. While historical returns are often a crucial consideration for potential investors, there are several other factors that play a significant role in their decision-making process. Factors such as the reputation of the fund house, the category of the scheme, and the overall performance of the market are key considerations that can influence an investor’s decision.
Large Cap Funds
Large cap funds are suitable for risk-averse equity investors seeking safety. These funds invest in the top 100 stocks, providing relatively stable returns and lower volatility compared to mid cap and small cap schemes. Invest in large cap schemes for modest returns and stability.
The best large cap funds to invest in, based on their past one-year returns, are as follows:
- Taurus Large Cap Fund – 36.72%
- Quant Large Cap Fund – 49.24%
- JM Large Cap Fund – 38.25%
- Bank of India Bluechip Fund – 39.10%
- Nippon India Large Cap Fund – 36.10%
Mid Cap Funds
Mid cap mutual fund schemes are ideal for diversifying portfolios due to their investments in medium-sized companies with strong growth potential. Nevertheless, these funds carry a notable degree of risk, falling between the higher risk of small-cap stocks and lower risk of large-cap ones.
The best mid cap funds to invest in, based on their past one-year returns, are as follows:
- HDFC Mid-Cap Opportunities Fund – 53.75%
- HSBC Midcap Fund – 50.64%
- Mahindra Manulife Mid Cap Fund – 58.59%
- JM Midcap Fund – 57.90%
- Quant Mid Cap Fund – 60.24%
Value Funds
Value funds are mutual fund schemes that employ a value investment strategy and allocate at least 65% of their assets to stocks. These funds aim to invest in undervalued stocks and generate superior returns over the long term.
The best value funds to invest in, based on their past one-year returns, are as follows:
- Quant Value Fund – 65.44%
- Nippon India Value Fund – 54.11%
- JM Value Fund – 59.08%
- HSBC Value Fund – 50.03%
- ABSL Pure Value Fund – 54.43%
(Source: AMFI; returns as on Feb 8, 2024)
This list of top-performing mutual funds can serve as a guide for investors looking to maximize their returns while ensuring stability and diversification in their investment portfolios. It is important to note that past performance is not indicative of future results, and investors should conduct thorough research and consult with financial advisors before making any investment decisions.
Analyst comment
Positive news: The article provides a list of the best mutual funds to invest in based on their past one-year returns, categorized into large cap funds, mid cap funds, and value funds. This information can guide investors in maximizing their returns and ensuring stability and diversification in their portfolios.
Market outlook: Investors may be inclined to invest in large cap funds for relatively stable returns and lower volatility. Mid cap funds can offer diversification and growth potential, while value funds aim to generate superior long-term returns. However, investors should conduct thorough research and seek advice from financial advisors before making investment decisions.
