10 High Rated Funds From Top Asset Management Companies in India

Mutual fund investments, owing to the pandemic and the resulting financial awareness amongst the masses, have become increasingly popular of late. By far, more than 7 crore Indians have invested in mutual funds, and the numbers are only expected to grow in the coming years. 

Mutual funds –

• allow investing in small amounts
• provide higher returns than usual bank deposits
• provides the flexibility to invest and withdraw anytime, anywhere

These are several reasons why investing in the best mutual funds has become an attractive option among investors and if you are looking to start your investment journey too, here’s all you need to know!

Identifying the Best Mutual Funds

Identifying the best mutual fund scheme from the right mutual fund company is the first step before investing. 

Keeping in mind your personal financial goals and interests it is important to investigate the top-performing mutual fund schemes. Many investors consider only the past return performances of the schemes, which is not wise. Both the quantitative and qualitative factors of a mutual fund scheme should be well evaluated before concluding. 

The Quantitative Factors include  

• The performance record of the mutual funds
• The measure of risk and return
• Fluctuation in its Net Asset Value (NAV)
• Liquidity of the scheme
• Diversification of the portfolio
• Average AUM (Asset Under Management) turnover of the portfolio

The Qualitative Factors include 

• The reputation of the fund house 
• Track record of the fund manager
• Easier investment process

Choose the Best AMC

The Mutual Fund Asset Management Company (AMC) is the one that manages and runs different mutual fund schemes. It is the fund house where the money from the investors is pooled and is professionally managed by experts called the fund managers. 

Investing in an established fund house with a good brand name is important. But it cannot be the only criteria. 

Want to identify the best mutual fund based on qualitative factors? Simply invest in a scheme from a top-performing AMC with a good reputation, great fund managers, and a well-managed investment process. 

Try to find answers to the following questions to gain a better perception.

• What is the fund size of the AMC?
• Does the fund manager of the company have high expertise?
• How well the schemes have performed over a period of time?
• Does the company have a proven track record of high performance?

Considering all these qualitative parameters, the Top 10 Asset Management Companies in India are listed below

• SBI Mutual Fund
• HDFC Mutual Fund 
• ICICI Prudential Mutual Fund 
• Reliance Nippon India Mutual Fund 
• Aditya Birla Sun Life Mutual Fund 
• DSP BlackRock Mutual Fund 
• Kotak Mutual Fund 
• Axis Mutual Fund 
• L&T Mutual Fund
• Principal Mutual Fund

Choosing the Best Mutual Funds Made Simpler

Investing in a high-rated mutual fund scheme from a trustworthy fund house is the simple shortcut to identifying the best mutual funds considering both the quantitative and qualitative factors. 

10 High Rated Funds From Top Asset Management Companies in India

Here is a list of 10 High Rated Funds From the top Asset Management Companies in India.

1. SBI Banking & Financial Services Fund – Direct Plan

It is not a multi-cap fund. This fund mainly invests in shares of banking and financial services companies. So, it’s best to invest in it through SIP. However, it is not the best option if you like to redeem the investment in seven years or less.

2. HDFC Money Market Fund – Direct Plan

This fund invests in bonds that mature in one year. The risk of loss is very low and that is the major pro of this fund. The returns are usually slightly higher than the short-term bank deposits. This cannot be preferred if you want to make huge profits. Well suited for institutional investors.

3. ICICI Prudential Regular Savings Fund – Direct Plan

This hybrid fund is for those who want a regular income from their investments. They provide moderate but steady returns. They provide slightly higher income than other fixed-income options. 

Experts suggest investing your accumulated earnings in this type of funds gradually over a few months and then keep the annual withdrawal rate at 4 – 6 % of investment value. 

4. Nippon India Short Term Fund – Direct Plan 

This fund invests mainly in small companies. So, there may be more fluctuations in the gains. It is best suited for long-term investing through SIP. 

5. Aditya Birla Sun Life Corporate Bond Fund

This fund invests in the best-rated corporate bonds. This is a good choice for short-term investment for a span of two to three years. As a long-term investment also, they give higher returns than conventional bank deposits. The risk of loss is very less. However, there is no guarantee of returns. They are suitable for generating a steady income and can’t expect huge gains.

6. DSP Government Securities Fund – Direct Plan

This fund invests in government bonds so the risk factor is very less. But they can have ups and downs because of interest rate changes. It is not suitable for retail investors, though.

7. Kotak Dynamic Bond Fund – Direct Plan

This dynamic bond fund invests in various bonds of different durations. The fund management company decides on which bonds to invest in so as to earn maximum returns. However, it is not a good choice for retail investors.

8. Axis Bluechip Fund – Direct Plan

This is the best-performing fund as of now. This fund invests in large companies and such large-cap funds don’t fall much when there is a fall in stock prices. It is well suited for equity investors and requires you to invest only through SIP mode. When you are looking for a long-term investment with good gains you can go for it. However, expect fluctuations in the investment value. Best for 5 years or more long-term investments.

9. L&T Arbitrage Opportunities Fund

This fund invests in equity shares and derivatives. You can choose this scheme when you want to keep your money safe with marginal returns over a period of 3 months to one year. Risk is less and it gives better returns than a bank deposit would provide. These funds are given preferential tax treatment which is an attractive feature for high taxpayers. Returns are lower when invested for a longer time period.

10. Principal Equity Savings Fund – Direct Plan

This fund invests equally in bonds, equity shares, and arbitrage opportunities. With lesser ups and downs, they provide moderate returns in an investment span of 3 years or more. Best for those who want regular income through their wealth. With the right allocation of equity, these funds keep up with the inflations and provide a steady income for investors.

Final Words

Choosing the best mutual funds reduces the risk of loss and provides higher possibilities to generate income. Always make a well-informed decision based on your personal goals and future needs. 

FAQs

• What is a Mutual Fund Asset Management Company?

The Mutual Fund Asset Management Company (AMC) is the one that manages and runs different mutual fund schemes. It is the fund house where the money from the investors is pooled and is professionally managed by experts called the fund managers. 

• What factors to consider before choosing the right AMC?

Before choosing the AMC learn about the parameters that contribute to the reputation of the company. Know about the

• Fund size of the AMC
• The expertise of the Company’s Fund manager
• Past Performance of schemes over a period of time