Top 10 Best Performing Mutual Funds for Investing your money!

If you are someone who wants to invest there money in stock market but don’t have enough time and knowledge, investing in mutual funds is the best option for you in which you invest your money via mutual funds where some experts invest on your behalf in BSE or NSE and some portion of the net profit is given to you in the form of returns.

Mutual funds are broadly classified into equity funds, debt funds and hybrid/balanced funds based on their equity exposure. If a mutual fund’s equity exposure exceeds 65%, then it is classified under equity funds. If not, then it goes under debt funds. A hybrid mutual fund invests across both equity and debt securities.

Benefits of Mutual Funds 

• Mutual Funds provide you with a plethora of tax benefits. If you are looking to save taxes under the provisions of Section 80C of the Income Tax Act, 1961, then you can invest in the equity-linked saving scheme (ELSS) or tax-saving mutual funds. These mutual funds provide tax deductions of up to Rs 1,50,000 a year, which helps you save up to Rs 46,800 a year in taxes
• Mutual Funds can give you better returns and cash flows than any other traditional investment options like FDs, etc.
• You can get a right amount of diversification by investing in Mutual Funds. You can hold numbers of various schemes in your portfolio. Every mutual fund invests in various securities, thereby providing investors with the benefit of exposure to a diversified portfolio.
• Mutual Funds are affordable. One can start their investment with an amount as low as INR 500 via a SIP. One of the most significant advantages of investing in mutual funds is that you can stagger your investments over time by taking the SIP or systematic investment plan route. Through an SIP, you can invest a fixed sum as low as Rs 100 on a regular basis. This alleviates the need to arrange for a lump sum to get started with your investment journey.
• The money you invest in managed by a team of an expert. They have real-time access to the Market and they are able to execute trades on the most cost-effective scale. Since mutual funds are managed by a fund manager, the chances of making profits are on the higher side. Every fund manager is backed by a team of analysts and experts who do the research and choose the best-performing instruments to include in the fund’s portfolio. Therefore, you don’t have to possess market knowledge
• Your Mutual Fund investments are in safe hands. Every Mutual Fund is regulated by SEBI (The Securities and Exchange Board of India), hence all the fund that you invest runs in a transparent manner and is secured. Apart from these, the Association of Mutual Funds in India (AMFI), a self-regulatory formed by the fund houses, also keeps an eye on fund plans. Therefore, investments made in mutual funds are safe.

Best Performing Mutual Funds 

1. L&T Emerging Businesses Fund- To generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related securities, including equity derivatives, in the Indian markets with key theme focus being emerging companies (small cap stocks). The Scheme could also additionally invest in Foreign Securities.  L&T Emerging Businesses Fund is a Equity – Small Cap fund was launched on 12 May 14. It is a fund with High risk and has given a CAGR/Annualized return of 20.7% since its launch.  Ranked 2 in Small Cap category.  Return for 2021 was 77.4% , 2020 was 15.5% and 2019 was -8.1% .
2. Principal Emerging Bluechip Fund- Principal Emerging Bluechip Fund is a Equity – Large & Mid Cap fund was launched on 12 Nov 08. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 24.8% since its launch.  Ranked 1 in Large & Mid Cap category.
3. DSP BlackRock Natural Resources and New Energy Fund-  DSP BlackRock Natural Resources and New Energy Fund is a Equity – Sectoral fund was launched on 25 Apr 08. It is a fund with High risk and has given a CAGR/Annualized return of 13.2% since its launch.  Ranked 2 in Sectoral category.  Return for 2021 was 42.8% , 2020 was 11.5% and 2019 was 4.4% .
4. SBI Small Cap Fund is a Equity – Small Cap fund was launched on 9 Sep 09. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 20.2% since its launch.  Ranked 4 in Small Cap category.  Return for 2021 was 47.6% , 2020 was 33.6% and 2019 was 6.1% .
5. IDFC Tax Advantage (ELSS) Fund- IDFC Tax Advantage (ELSS) Fund is a Equity – ELSS fund was launched on 26 Dec 08. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 18.4% since its launch.  Ranked 3 in ELSS category.  Return for 2021 was 49.2% , 2020 was 18.7% and 2019 was 1.9%.
6. L&T India Value Fund- L&T India Value Fund is a Equity – Value fund was launched on 8 Jan 10. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 15.1% since its launch.  Ranked 4 in Value category.  Return for 2021 was 40.3% , 2020 was 14.6% and 2019 was 4.6% .
7. IDFC Infrastructure Fund- IDFC Infrastructure Fund is a Equity – Sectoral fund was launched on 8 Mar 11. It is a fund with High risk and has given a CAGR/Annualized return of 7.3% since its launch.  Ranked 1 in Sectoral category.  Return for 2021 was 64.8% , 2020 was 6.3% and 2019 was -5.3% .
8. SBI Magnum Children’s Benefit Plan- SBI Magnum Children’s Benefit Plan is a Solutions – Children’s Fund fund was launched on 21 Feb 02. It is a fund with Moderately High risk and has given a CAGR/Annualized return of since its launch.  Ranked 1 in Children’s Fund category.  Return for 2021 was 18.3% , 2020 was 14.8% and 2019 was 2.6% .
9. Franklin Build India Fund- Franklin Build India Fund is a Equity – Sectoral fund was launched on 4 Sep 09. It is a fund with High risk and has given a CAGR/Annualized return of 15.4% since its launch.  Ranked 4 in Sectoral category.  Return for 2021 was 45.9% , 2020 was 5.4% and 2019 was 6% .
10. IDBI Nifty Junior Index – IDBI Nifty Junior Index Fund is a Others – Index Fund fund was launched on 20 Sep 10. It is a fund with Moderately High risk and has given a CAGR/Annualized return of 10% since its launch.  Ranked 8 in Index Fund category.  Return for 2021 was 29.6% , 2020 was 13.7% and 2019 was 0.5% .