Best Mutual Funds to Invest in 2018 – 2019
Upwardly presents to you the top 10 equity mutual funds for 2018 – 2019
|Rank||Fund Name||Returns (5Yr)||Growth of Rs 1 lakh in 5 Yrs*||Category||Invest|
|1||Kotak Standard Multicap Fund||21.74%||₹ 2.67 lakhs||Multicap||Invest|
|2||Axis Bluechip Fund||17.32%||₹ 2.22 lakhs||Large cap||Invest|
|3||Mirae Asset Emerging Bluechip Fund||31.63%||₹ 3.95 lakhs||Large & Midcap||Invest|
|4||L&T Midcap Fund||29.48%||₹ 3.64 lakhs||Midcap||Invest|
|5||Reliance Small Cap Fund||35.56%||₹ 4.58 lakhs||Small cap||Invest|
|6||Principal Hybrid Equity Fund||18.39%||₹ 2.33 lakhs||ELSS||Invest|
|7||Aditya Birla Sun Life Tax Relief 96||23.05%||₹ 2.82 lakhs||Balanced||Invest|
|8||SBI Consumption Opportunities Fund||16.89%||₹ 2.18 lakhs||Sectoral/Thematic||Invest|
|9||Franklin India Feeder - Franklin U.S. Opportunities Fund||13.41%||₹ 1.88lakhs||International Fund||Invest|
|10||Franklin India Low Duration Fund||9.04%||₹ 1.54 lakhs||Debt||Invest|
We are close to completion of half the financial year of 2018-19. If you haven’t already invested then it’s not too late to invest. Investing in mutual funds SIP for the long term is a good habit you can pick up for wealth creation. If you have already started investing before, this may be a good time to look at the best mutual funds to invest in 2018 – 2019. If you are not investing in any of these funds, it is time for some portfolio rejig.
Kotak Select Focus Fund has been renamed to Kotak Standard Multicap Fund as per the new SEBI guidelines. The fund has performed consistently in all the economic cycles. It has beaten the benchmark and the peers in all the seven years since launch. The fund has beaten the benchmark by 4-7 percentage points and category by 6-10 percentage points in the 3 and 5-year returns. Among its peers, the fund has given better and consistent returns. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.72 lakhs now.
This fund has managed to beat its benchmark and category in each of the last five years. Based on the ability to grow earnings on a sustainable basis, the fund selects its stocks. It invests 80-100% in large-cap companies and the remaining 0-20% in other companies. With 3-year annualized returns of 11.99% and 5-year returns of 17.00%, these are 2 percentage points higher than the benchmark returns and 2-3 percentage points more than the category returns. A SIP worth ₹5,000 in this fund started 5 years ago is worth ₹4.61 lakhs now. Mr. Shreyash Devalkar is the fund manager.
This fund lives up to the ‘blue-chip’ tag in its name. The fund invests 35% of its assets in large-caps and the rest 65% in mid-caps. The fund picks up companies for its portfolio with operating profits of Rs 100 Cr. It avoids investing in micro-caps. The fund has outperformed its category by 7-17 percentage points and the benchmark by 5-11 percentage points in the 3 and 5-year returns. The fund gave 22.03% (annualized) return since its inception in 2010. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹5.60 lakhs now.
This fund’s strategy is a blend of growth and value styles of investing. The focus is on owning fundamentally strong and scalable businesses with good management track record, at reasonable valuations. The fund’s asset allocation reveals a 15-20 percent allocation to small-cap stocks, while mid-cap allocation is about 80-85 percent, with the rest parked in large caps. This may result in a lower risk profile, while also moderating the returns from this fund. With 3-year and 5-year annualized returns of 14.6% and 28.5% respectively, the fund has outperformed its benchmark by 4 to 9 percentage points and peers by 7 to 15 percentage points. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹5.26 lakhs now.
This is one of the rare funds in the equity space which has beaten it’s benchmark as well as the category across all the time frames: one year, three years, five years or even seven years. Managing solid performance, even in bear phases, without leaning on large-caps is credible. Over three and five years, the fund has been ahead of its benchmark by 5 to 33 percentage points. Compared to the category, it has managed 7 to 20 percentage point outperformance. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹5.61 lakhs now.
Principal Hybrid Equity fund has been the best performing balanced fund in the last 3 years. The fund invests in companies that the manager believes are undervalued. It buys stocks with a long-term investment perspective. The fund has outperformed its category by 6% in 1, 3 and 5-year returns. The fund gave 11.6% p.a. returns since its inception in 2000. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.61 lakh now.
One of the oldest ELSS funds, this fund has generated outperformance over the last 5 years. The fund follows a multi-cap, bottom-up strategy. It hunts for companies run by professional management, which have the predictability of earnings and strong moats. The three and five-year returns are now over 2-7 percentage points ahead of the benchmark returns and 5-11 percentage points more than the category returns. The management team has remained very stable since 2006, with Ajay Garg at the helm. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.88 lakhs now.
This thematic fund follows a bottom-up approach to stock-picking and chooses companies within the consumption space. Mr. Saurabh Pant has been managing this fund since 2011. The three and five-year returns are now over 2-4 percentage points ahead of the benchmark returns and 2-8 percentage points more than the category returns. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.77 lakhs now.
Franklin India Feeder – Franklin U.S Opportunities Fund is an international fund. It is a fund of funds investing predominantly in units of Franklin U.S. Opportunities Fund, an overseas equity fund. It invests in US companies through Franklin U.S Opportunities Fund. The fund principally invests in small, medium and large capitalization U.S. companies with strong growth potential across a wide range of sectors. A SIP of ₹5,000 p.m. in this fund started 5 years ago is worth ₹4.51 lakhs now.
The fund primarily invests in corporate bonds and other fixed-income instruments. It focuses on the lower end of the yield curve. It is ideal if you want to invest for a short period of time. The modified duration of the fund is 0.9 years and it’s YTM is 9.49%.
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*These funds have an exit load of 1% if withdrawn before 1 year. We recommend investing in equity schemes for long-term.
Updated on 13th August 2018