Top 10 Mutual Funds to Invest in 2019

Vaibhav Shah
Vaibhav Shah
vaibhavs@orowealth.com
top 10 mutual funds to invest
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Top 10 Mutual Funds in India

Mutual funds have become a very popular investment mode in recent years. Association of Mutual Funds India (AMFI) ran a successful campaign called ‘Mutual Funds Sahi Hai’ to create awareness among budding investors. With the subsequent rise in new retail investors in the mutual fund industry, one question that commonly pops is ‘which are the top mutual funds to invest?’ There are over 40 asset management companies (AMCs) in India and over 650 mutual funds scheme. This wide range of choice, though good, can be daunting for both new and seasoned investors. Thus, to ease up the confusion over this frequently asked question, we have compiled a list of top 10 mutual funds to invest in this year.

The funds you will see below have been performing consistently over long-term generating good returns for the investors. These funds, as you will read below, are of wide diversity, covering different market caps and sectors. One of the best ways to invest in these funds is through Systematic Investment Plan or a SIP. Data suggests that SIPs have been gaining popularity among investors and about 9.26 lakh accounts are added on a monthly basis on an average for fiscal 2018 with an average amount of Rs 3300 per month per SIP account. Increasing awareness and popularity of SIPs made us look at the schemes that have helped create wealth over the period.

So without further delay, let’s take a brief look at the best performing mutual funds in India.

Best Mutual Funds to Invest in 2019

Fund 1: SBI Blue Chip Fund

The fund typically invests in companies having a market capitalization greater than the least market capitalization in BSE 100 index

Why invest in SBI Blue Chip Fund?

One of the favorite large-cap funds that have outperformed its peers and benchmark over the multi-trailing time period. The fund has been able to perform considerably across market cycle and has low-risk grade coupled with high return grade. The mutual fund is ranked 3 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund 2: Aditya Birla Sun Life Frontline Equity Fund

The fund seeks to generate long-term growth of investment by investing in equities across sectors, and market capitalization

Why invest in Aditya Birla Sun Life Frontline Equity Fund?

The fund has beaten its peers and benchmark over the multi-trailing time period and has generated over 15% of absolute returns. While the fund performed well in the bull market, it has constrained losses during a bear market. While the risk grade is below average, the return grade, which is above average, very well makes the fund a must sought after fund. The fund has been one of the top-performing mutual funds in India over the past decade. The fund is ranked 3 in its category for the quarter ended December 2017 by CRISIL and four stars by Morningstar.

Fund 3: Kotak Standard Multicap Fund

The fund seeks to generate capital appreciation from a diversified portfolio of equity and equity related instruments focusing on few sectors.

Why invest in Kotak Standard Multicap Fund?

The fund is one of the best-diversified funds that has beaten its peers across multi-trailing time period generating healthy absolute returns. The risk grade is average while the return grading is considered above average. The mutual fund is ranked 1 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund 4: Reliance Small Cap Fund

The fund seeks to generate capital appreciation by investing in smaller companies that fundamentally sound and are trading at a substantial discount to its intrinsic value.

Why invest in Reliance Small-cap Fund?

While the fund is not too old, it has successfully beaten its benchmark and peers over the multi-trailing time period. The risk and return grade for the fund is above average thereby making it stand out among peers in its category. The fund is undoubtedly a must add to one’s portfolio with a long-term horizon of 5-10 years. The fund is ranked 1 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund 5: Mirae Asset Emerging Bluechip Fund

The fund seeks to generate income and capital appreciation from a diversified portfolio of equities that are not part of the top 100 stocks by market capitalization.

Why invest in Mirae Asset Emerging Bluechip Fund?

The fund has been able to beat its peers and thus generating over 25% annualized returns over the past five years. The risk and return grade for the fund is above average thereby making it one of the most sought-after funds of current times. The fund is ranked 2 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund 6: ICICI Pru Focussed Bluechip Fund

The fund seeks to invest in 20 large cap companies from the top 200 stocks listed on the NSE on the basis of market capitalization

Why invest ICICI Pru Focused Bluechip Fund?

This fund has beaten all its peers and provided over 15% of annualized returns in the last 5 years. The fund has been able to perform well across market cycles. While the fund’s risk is below average, the return profile, which is above average, compensates well for the extra risk taken. The fund is ranked 2 in its category for the quarter ended December 2017 by CRISIL and four stars by Morningstar.

Fund 7: Franklin India Smaller Companies Fund

The fund seeks to generate longterm capital appreciation from a portfolio of midcap and smallcap companies

Why invest in Franklin India Smaller Companies Fund?

The small-cap category fund has performed well in various market cycles. While the returns in the bull market have been significant, the fund’s objective of investing in fundamentally sound companies has helped fund constrain its losses during the bear market. The fund has beaten its peers providing over 30% annualized returns in the last 5 years. The risk grade of the fund is low but return grade is average. The fund is ranked 3 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund 8: Franklin India Focused Equity Fund

The fund seeks to provide capital appreciation by investing in companies with high growth potential while having a reasonable valuation.

Why invest in Franklin India Focused Equity Fund?

This diversified fund has performed well across market cycles and has beaten its peers generating over 20% annualized returns in the last 5 years. While the risk grade is average, the return grade is high thereby compensating to subdued risk parameters. The fund is ranked 3 in its category for the quarter ended December 2017 by CRISIL and four stars by Morningstar.

Fund 9: ICICI Pru Balanced Mutual Fund

The fund seeks to invest in equities and related securities as well as fixed income and money market securities with a minimum of 60% in equity and balanced in debt

Why invest in ICICI Pru Balanced Mutual Fund?

The fund has gained traction over recent time in the balanced category for its performance. The fund has been able to generate healthy returns over time and has successfully beaten its benchmark and category average. The fund has a risk grade of a below average category, the return category that is above average very well compensates for the same. The fund is ranked 2 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund 10: HDFC Balanced Fund

The fund seeks to invest in equities and related securities as well as fixed income and money market securities

Why invest in HDFC Balanced Fund?

One of the best-balanced funds that have beaten its peers and provided nearly 20% returns over long term. The fund has a risk grade of a below average category, the return category that is above average very well compensates for the same. The fund is ranked 1 in its category for the quarter ended December 2017 by CRISIL and five stars by Morningstar.

Fund Name Returns Risk Category Average AUM
1-Y 3-Y 3-Y Return 3Y Risk 3Y
SBI Blue Chip Fund 11.4 10.0 12.3 7.0 13.8 176.6
Aditya Birla Sun Life Frontline Equity Fund 9.6 9.1 12.9 7.0 13.8 197.0
Kotak Standard Multicap Fund 11.6 12.4 13.7 7.0 13.8 178.0
Reliance Small Cap Fund 29.7 23.1 18.6 13.8 16.2 66.1
Mirae Asset Emerging Bluechip Fund 13.9 17.8 14.3 13.8 16.2 51.3
ICICI Pru Focussed Bluechip Fund 13.3 9.9 13.1 7.0 13.8 162.8
Franklin India Smaller Companies Fund 18.0 16.3 14.0 13.8 16.2 71.3
Franklin India Focused Equity Fund 11.5 9.1 15.4 9.9 14.3 76.4
ICICI Pru Balanced Mutual Fund 11.4 12.1 10.3 8.2 10.1 278.0
HDFC Balanced Fund 13.0 11.4 10.3 8.2 10.1 201.9

Source: Morningstar India

Conclusion

The funds detailed above are some of the best performing mutual funds that are suitable for investment through a SIP mode. A portfolio of these funds is likely to outperform, and offer high growth for medium to long term investment horizon. The portfolio with above-mentioned ten funds is designed for all kinds of investors including high-risk investors, moderate risk and low-risk investors. While allocation to small/mid cap funds would increase for high-risk investors, the same would remain modest for risk-averse investors.

Vaibhav Shah
Vaibhav Shah
vaibhavs@orowealth.com

Vaibhav has a strong work experience with the likes of Edelweiss Financial Services and L&T Limited. He is a Chartered Accountant (All India Rank: 36) and Chartered Financial Analyst (CFA Institute, USA) and working as a VP Research at Orowealth.

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