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Best 6 Trending Mutual Funds with Returns upto 28%

Mutual Fund investments can give the best returns when you choose them carefully. The best thing you can do is to follow the top trending mutual funds that have delivered good growth in recent years. You should also consider the returns it has given since inception and this will indicate its overall track record. Finally, when you compare the performance of any fund with its sector average and market average, you will get complete understanding about the performance of the fund. Most people choose mutual fund investments as they can get to participate in the financial market without bothering about market movements and other technical details.

As the mutual funds investment in India are managed by professionals, you need not worry about picking individual stocks and all you need to do is to pick the right funds that will meet your expectations in future. The basic thing you need to understand is that each type of fund is meant to perform in a certain manner and when you are looking forward to get maximum returns, you need to take some risk. Choosing the small or medium cap funds or a pure equity fund will give you the best returns when compared to debt funds.

Research before buying mutual funds

You should always research properly before going forward withmutual funds. Make sure to track the previous performance of the funds so that you will have some idea about how much returns you can expect from them in future. Apart from that, you can also diversify your risk by investing in mixed funds that will offer growth as well as security in the long run. Remember that what is suited for one person may not be the ideal choice for another person when it comes to investing in mutual funds. For this reason, you should always get in touch with an expert and discuss your requirements with them. This will help you to select the best funds for your investment.

How much can mutual funds earn on an annual basis?

  • Typically mutual funds can earn the best returns when compared to any other traditional form of investment.
  • However, you should consider the returns for the long term and not worry too much about short term returns as it can vary due to volatile market conditions.
  • When you consider the traditional forms of investment, you can expect fixed returns with bank deposits or post office schemes. However, you will have better growth in mutual funds in the long run as our economy is still growing and this growth is likely to continue for many years till the markets get saturated.
  • Considering the past average performance of mutual funds and other traditional investments, you can easily come to the conclusion that mutual funds can deliver more than the bank deposits in most cases.
  • You also have the option of investing your money regularly through SIPs and this can help you to save money on monthly basis. If you are a salaried individual, you should rely on this option to grow your money in the financial market.
  • In the same manner, if you are a business person with lump sum money, you can split your investment in the mutual funds or you can even invest in multiple funds at a time. This will diversify your portfolio and you will have lesser risk when compared to other investors.
  • You can take a look at some of the top funds given in this article and split your investment equally among them. This can give you good returns in future and it will also diversify your risk. However, you should understand that investing in mutual funds means that you are exposed to market risks and you need to consult your financial advisor before venturing into such schemes.

Top mutual funds that have delivered excellent returns in recent years

HDFC Small Cap Fund 

The fund primarily invests in small and mid-cap stocks of the equity market and handles assets worth more than 4000 crores. It comes with a moderately high risk factor and you can expect decent returns from this fund in future. The current NAV of the fund is around 44 and you can check the latest rates by using the services of online business portals. It has delivered close to 20% returns in the last one year and this is very good performance compared to various other funds in the market.

Reliance Small Cap Fund

This is an open ended fund that primarily invests in the small cap companies of the equity market. It handles assets worth more than 6000 crores and the current NAV is around 42 in the market. The fund has delivered returns of close to 18% in the last one year and it is likely to offer good returns in future considering its previous track record. However, you need to understand that such funds come with moderate to high risk profile and you should enter them only when you have the suitable risk appetite.

L&T Emerging Businesses Fund

This fund has good reputation in the market and it handles assets close to 5000 crores. It has an NAV of close to 26 in the market and it has delivered good returns in the past. The previous year return comes close to 21% and this is very good performance considering the overall movement of the market.

IDFC Tax Advantage ELSS Fund

This fund comes with a moderate to high risk profile and the current NAV is trading at 57 in the market. It handles assets worth 1500 crores and you can expect decent returns from the fund. It has delivered a returns of close to 18% in the previous year and this trend is likely to continue for the next year.

HDFC Index Fund Nifty Plan

This fund comes close to tracking the Index and it has delivered good returns on par with the index. In the last one year, it has delivered close to 16% returns. The fund is of moderate risk profile and it handles assets close to 400 crores in the market.

IDBI Nifty Index Fund

The current NAV of the fund is around 20 and it handles assets worth close to 200 crores in the market. It has delivered a performance of close to 17% in the last one year and this is on par with the movement of the Index in the market.

Tips to choose the right mutual funds

You need to be careful while investing your money in mutual funds. Note that they are usually subject to market risks and you need to select the funds carefully after understanding your requirements. Make sure that you have set the right priority for risk appetite and choose the funds according to this factor.

Choose debt funds for safety

There are many people who look for safe options when it comes to investing in mutual funds and choosing the debt funds will be the best option in this situation. These funds will usually offer less returns and the risk factor will also be very less in such funds. You can even get tax benefits in many cases when you choose such funds but the condition is that you will have to stay invested for many years in the fund. Most people choose such funds when they are close to retirement age as they do not want to risk their hard earned money at this stage with the equity market. This can provide consistent returns when compared to other funds in the market.

Choose equity funds for growth

If your intention is to get good growth for your money in the financial market, you can consider the equity funds. This is considered the best alternative to investing directly in the stock market. Many people do not have enough knowledge about equity market and they struggle to find the right stocks. This becomes a huge gamble and they may end up losing their investment itself if the right stocks are not picked at the right time. In this regard, choosing equity funds that offer decent growth is the best alternative. The equity mutual funds are managed by professionals and they have good experience in this sector. In this way, you can reduce your risk exposure by a huge margin and you need not worry about everyday fluctuations of the market.

Choose mixed funds for growth and safety

While the equity funds can offer good growth, the risk exposure can become high when you put all your money in equity funds. For this reason, you should prefer mixed funds that will invest some part of the funds in equity and some part in debt and other safe assets. This will offer the best combination of growth and safety in one fund. You will be glad to know that you can even switch between funds that offer different percentage of allocation towards equity and debt. This is the best option for common investors and you can switch to the fund that invests more in equity when the markets are growing and when you notice any volatility or uncertainty in the market, you can switch to a higher debt allocation. In this manner, you can manage the risk in an effective way.

Long term and short term investment in mutual funds

You have flexibility with regards to choosing the time frame of your investment with mutual funds. If you are in need of money in the near future, you can choose to invest in funds that do not have lock-in period. These are called open ended funds and you can get out of the funds at any time of your choice without any hassles. On the other hand, when you are planning for your long term goals, you should stay invested in long term funds that will give you good growth in future. The advantage of such funds is that you can even get tax benefits as the long term capital gains will not be taxed when you stay invested for many years.

Tax saving mutual funds

There are many funds that will allow you to save taxes and this is the most preferred option of working professionals. They usually invest in such funds and save money on the investment. However, you need to understand that the funds can get locked in this situation for a duration of at least 3 years. If you are willing to wait for such a long duration, you will get additional tax benefits apart from the returns offered by such mutual funds.

Mutual funds with insurance cover

If you are thinking that mutual funds are only there to grow money, you are completely wrong. They can even provide you with insurance. When you invest in such ULIPs, you will get life cover as well as investment option in a single fund. In this way, some part of the investment will be dedicated for providing insurance cover and the remaining will be invested in the mutual fund market. This is the best option to increase your life insurance cover and you can also get good growth for your investment in the long run.

Large cap, small cap and Sector Specific funds

There are many mutual funds in the market and you can choose anything that meets your individual requirements. When you want security and good growth, you can choose the large cap funds that will primarily invest in the top rates stocks of the market. On the other hand, investing in small cap funds can give you excellent returns in future. However, they have a higher risk profile and you should choose them after careful analysis. In the same manner, you can even get to invest in specific sector related funds and this will give you options to target your investment.

When you carefully follow these simple guidelines, you will get good returns from mutual funds in the long run. The best thing you can do if you are new to the market is to invest your money on different funds. You can later switch to funds that are performing well and get out of the remaining funds. This will diversify your risk and provide better returns in the long run.

About Anirudh Singh

Anirudh Singh is a passionate blogger and the man behind Amazing India Blog. He has 5 years of experience in the newspaper industry and he founded Amazing India Blog in 2015. Apart from writing and editing articles on Travel, Business and Technology at Amazing India Blog, he also contributes to other well known newspapers and online news blogs.

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