Best Equity Mutual funds to invest now in 2019

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Mutual funds are now classified by SEBI, it has become easy for everyone to make good choices without worrying about fancy names that each fund company was giving earlier under the same category.

All funds are major categories as Large cap, Midcap, Small cap, Multi-cap, and Balanced fund and Tax saving ELSS funds. There are other funds like sector funds, goal-based funds etc, but are not so worth spending the time to read that.

Let us now concentrate on best performing funds under each of the above categories, these are picked up by applying below parameters/filters.

Summary of all funds category wise is appended in this post below.   

  • Based on the highest past returns over the long term, like 3 years, 5 years and 10 Year time frame.
  • CRISIL rates funds with Rank 1, 2 and 3 to indicate outperformers from each fund category
  • “Value research online” rates each fund category wise as 5 stars, 4, stars, 3 stars as they indicate high performers in that category
  • Which have high Assets Under Maintenance (AUM) , means more and more investors amount is being managed by these funds which prove their confidence among others.
  • Only Direct plans are considered as they give higher returns than Regular ones (which can be brought from brokers/financial advisors who takes commission from your fund)

You may like to read Thumb Rules in Investing Equity stocks and Mutual funds

Top Best Large-cap funds

Large-cap funds invest in Companies with large market capital , these companies are expected to do well in all the periods as these are trusted brands and have proven track record in market life cycles.

Best #1 : Reliance Large Cap Fund

Overview:

The scheme seeks to generate long term capital appreciation by investing predominantly into equity and equity related instruments of large cap companies.

This fund has provided annualized returns of 18% vs Benchmark returns of 13% in the last 5 year period, also fund has outperformed its benchmark index and its peers over long term period.

CRISIL has ranked #2 and Value research online as given 5 star rating. This is one of the best large cap mutual fund to invest now.

Best #2 : Axis Blue Chip fund

Overview:

The scheme aims to generate long term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity related instruments of large cap companies.

This fund has provided annualized returns of 15% vs Bench mark returns of 13% in last 5 year period, also fund has outperformed its benchmark index and its peers over long term period.

CRISIL has ranked #1 and Value research online as given 5 star rating. Investors should consider investing in this fund now.

Best #3 : Aditya Birla Sun Life Frontline Equity Fund

Overview:

The scheme seeks long term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various large cap companies This large cap fund outperformed its benchmark and peers for 13 straight years, from 2004 until 2016, slipping up marginally in 2017. This track record has earned it a four- or five-star rating consistently for over 10 years, a rare achievement in any category.

This fund has provided annualized returns of 15% vs Bench mark index returns of 13% in last 5 year period.

CRISIL has ranked #1 and Value research online as given 5 star rating. Investors should consider investing in this fund now. This is one of our all-time favorite large cap fund.

Top Best Mid cap funds

Since Mid cap companies are highly volatile. Past 1 year returns may be less in current markets, however in the long term of 5years+ these are super wealth creators. We suggest everyone who has a minimum time horizon of 5 + years to consider invest in Mid cap funds through SIP route.

Best #1 : L&T Mid cap fund

Overview:

The scheme aim is to generate capital appreciation by investing primarily in midcap stocks. The Scheme will invest primarily in companies whose market capitalization falls between the highest and the lowest.

In the last 5 years period, this fund has provided annualized returns of whopping 21%+  vs Bench mark index returns of 18% over same period.

CRISIL has ranked #2 and Value research online as given 5 star rating.

Best #2 : Axis Mid cap fund

Overview:

The scheme seeks to achieve long term capital appreciation by investing predominantly in equity & equity related instruments of Mid Cap companies..

In the last 5 years period, this fund has provided annualized returns of 21%+  vs Bench mark index returns of 18% over same period.

CRISIL has ranked #1 and Value research online as given 4 star rating.

Best #3 : HDFC Mid-Cap Opportunities Fund

Overview:

The scheme seeks to provide long-term capital appreciation/income by investing predominantly in Mid-Cap companies.

In the last 5 years period, this fund has provided annualized returns of 22%+  vs Bench mark index returns of 22% over same period.

CRISIL has ranked #3 and Value research online as given 4 star rating.

Top Best Small cap funds

Small cap companies are highly volatile. Past 1 year returns may be less in current markets, however in the long term of 5years+ these are super wealth creators. We suggest everyone who has minimum time horizon of 5 + years to consider invest in these funds through SIP route.

Best #1 : Reliance Small Cap Fund

Overview:

The scheme seeks to generate long term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.

In the last 5 years period, this fund has provided annualized returns of whooping 29%+  vs Bench mark index returns of 18% over same period. This has beaten its bench mark indices and peers by a huge margin in long run.

CRISIL has ranked #3 and Value research online as given 5 star rating.

Best #2 : HDFC Small Cap Fund

Overview:

The scheme seeks to provide long-term capital appreciation /income by investing predominantly in Small-Cap companies..

In the last 5 years period, this fund has provided annualized returns of whooping 22%+  vs Bench mark index returns of 18% over same period.

CRISIL has ranked #1 and Value research online as given 4 star rating.

Best #3 : Franklin India Smaller Companies Fund

Overview:

The Fund seeks to provide long-term capital appreciation by investing predominantly in small cap companies.

In the last 5 years period, this fund has provided annualized returns of 23%+  vs Bench mark index returns of 18x% over same period.

CRISIL has ranked #3 and Value research online as given 4 star rating.

 

You may read Why you should never go for Traditional Endowment Life Insurance plans? Term insurance is the Best option!

Top Best Multi cap funds

As we are aware, Large cap companies offer relatively strong in all market cycles as compared to Mid cap and very volatile Small cap companies. Having mix bag of all these companies will give good diversification and will have better adjusted are expected to better in all market movements.

Let us look to Best funds in this category

Best #1 : Mirae Asset India Equity Fund

Overview:

The scheme aims to maximize long term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equity and equity related securities.

In the last 5 years period, this fund has provided annualized returns of 20%+  vs Bench mark index returns of 14% over same period.

CRISIL has ranked #1 and Value research online as given 5 star rating.

Best #2 : Kotak Standard Multicap Fund

Overview:

The scheme seeks to generate long term capital appreciation from a portfolio of equity and equity-related securities, generally focused on a few selected sectors.

In the last 5 years period, this fund has provided annualized returns of 19%  vs Benchmark index returns of 14% over same period.

CRISIL has ranked #2 and Value research online as given 4 star rating. This is one of the best fund in this category.

Best #3 : Aditya Birla Sun Life Equity Fund

Overview:

The fund seeks long term growth of capital and regular income through 90% investment in equities and 10% in debt and money market securities. The scheme would adopt top-down & bottom-up approach of investing & a portion of the scheme will also be invested in IPOs, emerging sectors & other primary market offerings.

In the last 5 years period, this fund has provided annualized returns of 20%+  vs Bench mark index returns of 14% over same period.

CRISIL has ranked #3 and Value research online as given 5 star rating.

Top Best Tax saving Mutual funds ( ELSS) – under Sec 80.C

When it comes to tax saving , govt. main aim to promote savings habit of citizens to take care of their future needs. There are various options available to get tax exemption under 80.C . However we believe ELSS mutual funds are the best option for saving tax and build wealth in the same period, also this has the lowest lock in period of 3 years as compared to other products in tax saving category. These are only few to mention, in fact there are many advantages we will post separate post to cover them all.

Many expenses like school fees, Insurance premium etc. are also considered under 80.c, however these are purely expenses not savings 😊

You may like to read How to pay Zero tax on Income up to 10 Lacs in FY 2018-19 and Zero tax up to 12 Lacs in next FY 2019-20 onwards?

Let us look to Best funds in this category

Best #1 : Axis Long Term Equity

Overview:

The scheme aims to generate regular long term capital growth from a diversified portfolio of equity and equity-related securities. The Scheme Will invest in companies with strong growth & a sustainable business model.

The fund has retaining a five-star rating since launch in Value research online. It witnessed a slowdown in performance in 2016 but has recovered in 2017. The fund’s investment strategy focuses on buying quality growth stocks. While selecting stocks, the fund looks for superior and scalable businesses, a high return on capital and secular growth.

In the last 5 years period, this fund has provided annualized returns of 21%  vs Bench mark index returns of 14% over same period.

CRISIL has ranked #2 and Value research online as given 5 star rating.  This Fund our all time favorite in ELSS category.

Best #2 : Aditya Birla Sun Life Tax Relief 96

Overview:

The scheme seeks long-term capital growth and will invest in quality stocks. A combination of top down & bottom up approach will be followed in the stock selection process.

In the last 5 years period, this fund has provided annualized returns of 20%  vs Bench mark index returns of 14% over same period.

CRISIL has ranked #1 and Value research online as given 5 star rating.

Best #3 : DSP Tax Saver Fund

Overview:

The scheme seeks to generate medium to long-term capital appreciation from a diversified portfolio that is substantially constituted of equity and equity related securities of corporates, and to enable investors avail of deduction from total income, as permitted under the income tax act.

In the last 5 years period, this fund has provided annualized returns of 18%  vs Bench mark index returns of 14% over same period.

CRISIL has ranked #3 and Value research online as given 4 star rating.

Top Best BALANCED(HYBRID) Fund

Balanced funds are very good for low risk-taking investors who wish to take advantage of equity. They  invest  65–80% in equity related stocks and the rest in debt.

Let’s say if an fund invests 65% in equity and balance 35% in Fixed income ( Debt) which earns approx. 7 to 8% in all times irrespective of equity market fluctuations.

Fund Manager will automatically allocate asset of equity, in case if invested amount in Equity goes high, they will book profits and rebalance portfolio to match above ratio.

One more advantage of investing in Balanced fund is it enjoys the tax structure of Equity investments, meaning complete value invested in fund will be treated as equity and Long term capital gains after 1 year is taxed nil, this includes your debt amount of 35% where otherwise the income will be clubbed with your income and tax must be paid on this return as per your income slab.

Let us look to Best funds in this category.

Best #1 : Principal Hybrid Equity

Overview:

The scheme seeks long-term capital appreciation and current income from a balanced portfolio of equity and debt securities.

In the last 5 years period, this fund has provided annualized returns of 16%  vs Bench mark index returns of 12% over same period.

CRISIL has ranked #1 and Value research online as given 5 star rating.

Best #2 : Mirae Asset Hybrid Equity

Overview:

The scheme seeks long-term capital appreciation and current income from a balanced portfolio of equity and debt securities.

In the last 3 years period, this fund has provided annualized returns of 12%  vs Bench mark index returns of 12% over the same period.

CRISIL has ranked #1 and Value research online as given 5 star rating.

Best #3 : HDFC Hybrid Equity Fund

Overview:

The Scheme seeks to generate capital appreciation/income from a portfolio, predominantly of equity & equity related instruments.

In the last 5 years period, this fund has provided annualized returns of 17%  vs Benchmark index returns of 12% over the same period.

CRISIL has ranked #3 and Value research online as given 4 star rating.

Summary table category wise with annualized past returns :

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Above funds are filtered with factors mentioned above from Value research online and CRISIL ratings as on Jan 2019, Returns rounded off.

Please read Best Practices of Equity Mutual funds investments before investing.

Friends, please provide your view on these funds in the comments below.

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