Mutual Funds have emerged as the ideal investment vehicle for those who don’t have the time to understand the stock market, yet can get handsome returns on their investments. There are more than 1500 Mutual Fund schemes in the market, yet some stand out for their consistency, reliability and long-term wealth creation through established strategies. Some of these have offered inflation-beating returns, proven by their increasing Assets Under Management (AUM) through SIPs or lumpsum investments. Here we’re going to see the most popular Mutual Funds in the market with respect to investor preferences without getting into the specifics.
Parag Parikh Flexi Cap Fund
Assets Under Management (AUM)- Rs.1,10,392 crore
When this one launched 12 years ago, no one expected the fund to become almost synonymous with consistent returns, yet it has proved exactly that. Over the years, the fund has given consistent returns, primarily due to the fund’s unique investing style. Their trump card was their 70:30 allocation ratio, where 30% of the corpus was invested abroad. This, along with smart investment strategies, helped it weather all kinds of market corrections and give a consistent return later on as well. The results have shown: The fund has a return CAGR of 27%, much higher than the industry average of 21.8%.
HDFC Balanced Advantage Fund
Assets Under Management (AUM)- Rs.1,02,790
Even though this fund invests mostly in equities, it has consistently beaten its peers despite a rough patch between 2018 and 2020. The Fund has consistently maintained its equity-centric portfolio and the fund has benefited from a consistent investment strategy even after their star fund manager exited the company. Nevertheless, the Fund has given a 19.9% CAGR return in the last five years as against the 14.7% CAGR return industry average. Investment advisors have used this fund as a benchmark for consistent returns, especially since it has been one of the first funds of its kind to be launched in 1994.
HDFC Flexi Cap Fund
Assets Under Management (AUM)-Rs.79,584 crore
A rival to Parag Parikh Flexicap, this one has delivered better returns, mostly attributed to its strong turnaround after 2020. The Fund has reduced its exposure to midcaps and increased its exposure to smallcaps over the last year, yet retaining its over 70% allocation to large caps instead. The fund has given a 16.6% CAGR in the past 10 years, maintaining its reputation as a reliable fund for consistent returns.
SBI Equity Hybrid Fund
Assets Under Management (AUM)– Rs.78,708 crore
Advisors recommend this one to those who’d like to get better returns than Fixed Deposit Investments. Even though this one invests almost 80% of its corpus in equities, the fund has proven its worth as a rewarding proposition for long term investors. Even during the market crash in 2020, the fund managed to recover the losses in the next bull phase. Overall, it has offered a decent 17.5% CAGR return, enough to satisfy the demands of conservative investors.
ICICI Prudential Large Cap Fund
A time-tested large cap fund for steady long-term growth
Assets Under Management (AUM)- Rs.72,336 crore
One of the oldest Mutual Funds out there, this one has been performing well in recent years. Old timers have appreciated its focus on identifying fundamentally strong stocks from high potential sectors. Even though it has had bouts of underperformance, the Mutual Fund has given a 16% CAGR return since inception in 1998. Advisors recommend this fund to newbie investors, eventually making this fund one of the largest in its category, with its corpus nearly tripling in the last three years.
Nippon India Small Cap Fund
Assets Under Management (AUM)- Rs.66,601.80 crore
Seasoned investors swear by the Fund’s fantastic 37.22% CAGR returns, investment advisors have always trusted this one, and with good reason. This was considered the second-best fund investing in risky but potentially rewarding emerging companies. After years of playing second fiddle, it’s now considered the best fund for risk-takers, considering its track record of giving better returns than the industry average even during recessionary pressures.
Kotak Emerging Growth Fund
Assets Under Management (AUM)- Rs.53,463 crore
A fairly old fund in the market, this one remains a favourite due to its emphasis on quality stocks over trending ones. Investor advisors have always appreciated this funds clear investment strategy- picking companies based on a set criteria- strong balance sheets, low debts, etc. This dependable and consistent strategy has helped it become a favourite for SIPs as well. No wonder, this one too has an average CAGR of 30.7% as against the industry average of 27.6%.
Motilal Oswal Midcap Fund
Assets Under Management (AUM)- Rs.33,053.10 crore
Another investor favourite, this fund has always aimed to beat volatility through yearly portfolio updates- they keep selling most of the stocks, making every year-end portfolio different from the last. Many Midcap funds do this, but Motilal Oswal Midcap has mastered this, with its stock turnover ratio at 133%, far ahead of the category average of 80%. In the past 11 years, the fund has managed to beat the industry average CAGR with a 36.4% return, as against the industry average of 23.9%.
UTI Nifty 50 Index Fund
Assets Under Management (AUM)- Rs.24,116 crore
Many advisors recommend starting investments through an index fund that invests in securities in the same proportion as the benchmark index. The UTI Nifty 50 Index Fund has been around since the dawn of the new century and has been recommended for its negligible expense ratio and consistent returns. A good starting point for investments, this one is the largest and most popular index fund in the market.
Invesco India Contra Fund
Assets Under Management (AUM)-Rs.19,257 crore
Not all investment opportunities are in front of your eyes. Some hidden gems can offer fantastic returns, and this one has specialised in it since 2007. Over the years, it has offered a 19.2% CAGR, beating the 15.5% industry average. This largely unnoticed fund became the talk of the town during the 2016-20 stock market bull phase, where it stood out with its commendable returns. Though only recommended to seasoned investors, this fund has shown how the market can help you generate returns with patience and consistency.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
