Mutual Fund is one of the best investment options for the long-term creation of wealth. Mutual funds can give very good return provided you invest in a best mutual fund. Selection of mutual fund for investment has become difficult post recategorization. If you are planning to invest in mutual funds and looking for best mutual funds for investment. Here is a list of Top 11 Best Mutual Funds Schemes for investment along with rationale. The method used for shortlisting is given below.
Shortlisting method for Selection of Best Mutual Fund Schemes
- Type of Funds – The first parameter for the shortlisting is a type of fund. I have shortlisted all types of mutual funds like large-cap, multi cap, mid cap, small cap, tax saving and hybrid funds.
- Fund Performance – All funds have been shortlisted based on fund performance. I have considered 3-10 years tenure for all the funds.
- Fund Rating – Another parameter for shortlisting the mutual fund is rating. I have considered mutual funds rating given by CRISIL & Value Research.
- Expense Ratio – Expense ratio is one of the important factors that affect mutual funds return. Higher the expense ratio means a lower return. All the funds given below are with low expense ratio.
- Fund Manager Expertise and Experience – A Fund manager is the person who makes the decision about buying, selling, or holding the stock in the mutual funds. The returns of the fund depend on the decision taken by the fund manager and its expertise.
- Scheme and Asset Size – Scheme type and asset size is another important factor while selecting funds. All funds selected here are higher in asset size – 300 Cr or above.
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Top 11 Best Mutual Fund Schemes to Invest in 2018
Returns are as on 9th July,2018.
Equity Large Cap
- Aditya Birla Sun Life Frontline Equity Fund
Aditya Birla Sun Life Frontline Equity fund is first best fund in equity large cap category. It is a highly trusted fund with asset size 20,203 Cr. Past performance of this fund is very good. In the last five years, this fund has generated 17.13% returns for the investor. This fund is four stars rated fund by Value Research Online.
- DSP BlackRock Top 100 Equity Fund
DSP Black Rock Top 100 Equity Fund is highly rated one of the best equity fund in large-cap category. This fund has generated 14.3% in the last five years. In the past 10 years, this fund has generated 12% returns. The expense ratio of this fund is comparatively low. Major investment of this fund is in bluechip shares. This fund is likely to perform better in the future.
- Franklin India Equity Fund
Franklin India Equity Fund is first recommended fund in Multi-cap category. Franklin India Equity fund has given very good return to the investor in past five years 19.16%. It is three star rated fund managed by experienced fund manager.
- HDFC Equity Fund
HDFC Equity Fund is another top performing fund in multi-cap category. It is a trusted fund by the investor with fund size 20352 Cr. The past performance of this fund is very good. An expense ratio of the fund is average.
- Kotak Standard Multicap Fund
Kotak Standard Mutlicap Fund is also known as Kotak Select Fund. Kotak Standard Multicap fund is four-star rated fund by value research. This fund has given excellent performance in past. Last three years return of the fund is 12.86%. An expense ratio of this fund is very less.
- L&T Midcap Fund
L&T Midcap Fund is first recommended fund in Mid Cap category. This fund is five stars rated fund by value research. In the last three years, this fund has given 15.97% returns to the investor. This fund is managed by an experienced fund manager.
- Invesco India Midcap Fund
Invesco India Midcap Fund is another best fund in a midcap category. This fund is three stars rated fund. This fund has generated very good returns over the long run 5-10 years.
- DSP BlackRock Small Cap Fund
DSP BlackRock Small Cap Fund is the first fund in Small Cap Category. It is three stars rated fund. In the last 5 years, this fund has generated 30% return. This fund was earlier known as DSPBR Micro Cap fund. The subscription in this fund is suspended for the temporary period.
- Franklin India Smaller Companies Fund
Franklin India Smaller Companies Fund is another recommended fund in the small-cap category. Franklin India Smaller Companies fund is a four-star rated fund, which has given an extremely good performance in last few years. This fund is expected to give a good performance in the future.
- ICICI Pru Long Term Equity Fund
ICICI Pru Long Term Equity fund is first ELSS fund for investment in 2018. The past performance of this fund is very good. This fund is managed by an experienced fund manager. It is three stars rated fund by Value Research Online.
- Invesco India Tax Plan
Invesco India ELSS is one of the best ELSS funds for investment in 2018. This fund has given an extremely good return over a long run. It is highly rated mutual fund ELSS with an average expense ratio.
Apart from above 11 Best Mutual Fund Schemes few other best mutual funds in the hybrid category, which was earlier known as a balanced category are Aditya Birla Sun Life Equity Hybrid ’95 Fund, HDFC Hybrid Equity, Franklin India Debt Hybrid Fund and HDFC Hybrid Debt Fund.
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