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The top equity growth mutual funds with the best returns in the last 3 years

Over the past few years, mutual fund schemes in India have significantly grown. As a result, we see the best performance funds keep changing. In India, systems like CRISIL, Morning Star, and ICRA evaluate the performance of <keyword id="6357979" type="UNKNOWN" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> on the basis of the returns they assure, standard deviation, qualitative and quantitative aspects and other factors. When these findings are summed up, we get the list of top performing <keyword id="864677" type="PERSON" weightage="20" keywordseo="Mutual-Funds-in-India">mutual funds in India</keyword> for a given financial year. This list can guide the investors in choosing the right kind of avenues to invest in the domain of mutual funds. Here we discuss the <keyword id="35457" type="PERSON" weightage="20" keywordseo="Best-Mutual-Funds">best mutual funds</keyword> for FY 2019-20. <table style="width: 279pt;"> </colgroup> <tbody><tr> <td class="xl65" style="height:15.0pt;width:162pt">Mutual Fund Name</td> <td class="xl65" style="border-left-width: initial; border-left-style: none; width: 117pt;">12-month change (%)</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Mirae Asset Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">58.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Invesco Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">49.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">AXIS Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">23.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Canara Robeco Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20.5</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">SBI Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">20.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Kotak Mahindra Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">16.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Tata Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11.8</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">IDFC Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">11.6</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">PRINCIPAL Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">3.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">UTI Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">ICICI Prudential Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">HDFC Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Reliance Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">0.2</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">L&amp;T Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-7.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Motilal Oswal Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-7.7</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">BNP Paribas Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-8.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Sundaram Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-8.4</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Aditya Birla Sun Life Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-9.9</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">Franklin Templeton Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-12.1</td> </tr> <tr> <td class="xl65" style="height: 15pt; border-top-width: initial; border-top-style: none;">DSP Mutual Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-13.3</td> </tr></tbody></table>Source: August'19 (Motilal Oswal - Indian Mutual Fund Tracker) Nifty changed by -5.6% during the same period. The background Following the market correction in 2018, the valuations in several categories have reached highly attractive levels. This has opened up new opportunities for the investors and the fund managers. India’s top performing mutual funds are all set to assure strong returns to the investors in 2019-20. Axis Blue Chip Fund Incepted on January 5, 2010, the AUM of this large cap fund is Rs. 4,802 crore. The outperformance of this fund over the recent past is impressing the industry experts during a time when a large number of actively managed funds failed during last year. As of May 2019, the 5 year CAGR of Axis Bluechip Fund is 15.16%. This can offer a solid platform for a very powerful mutual fund portfolio in 2019. Kotak Standard Multicap Fund Considered under the category of Equity Multicap fund, the AUM of Kotak Standard Multicap Fund incepted on September 11, 2009, is Rs. 23,881 crore. It has delivered a return of 19.48% over the past five years. This fund also presents immense growth prospects in the mid cap space. Fairly diversified across 56 sticks, the investors feel they are taken care very well when they invest in it. HDFC Small Cap Fund Found under the category of small cap funds and incepted on April 3, 2008, the AUM of HDFC small cap fund is Rs. 7,660 crore. Despite the severe test of the times in 2018, the fund has managed to provide the investors a 5 year CAGR at 20.83%. About 57% of this funds has been invested in small cap companies while 36% is invested in mid-cap space leaving the remaining 6% to large caps. Franklin India Prima Fund Incepted on December 1, 1993, this fund has completed 25 years in the stock market. Categorized as mid cap fund, the AUM is Rs. 7,116 crore. It could deliver a highly amazing 19.52 CAGR. This will mean that if a sum of Rs 1 lakh was invested in during its inception, it will value at Rs 90.70 lacs now. Axis Long Term Equity Fund Incepted on December 29, 2009 and categorized as ELSS tax saving fund, the AUM of this fund is Rs. 18,852 crore. This fund is considered as a legend in the arena of tax saving schemes. For a long time, it has continuously outperformed till it reached a point when a majority of investors always had a portion of their tax saving investment in this fund. See Also:<a data-type="tilCustomLink">Top Mutual Funds to invest this Diwali for long-term prosperity of your Family</a>

Top performing mutual funds in India 2019

Diwali is the time when you have to review your investment portfolio and make some positive moves for betterment. If you are looking for some good mutual fund options to invest during this Diwali, here is a review of some wonderful choices that a lot of seasoned investors are considering right now. <table style="border-width: initial; border-style: none;"> <tbody><tr> <td style="width: 40.25pt; border-width: 1pt; border-style: solid; border-color: windowtext; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> SI. No. </td> <td style="width: 115.55pt; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left-width: initial; border-left-style: none; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> Fund Name </td> <td style="width: 77.9pt; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left-width: initial; border-left-style: none; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> Total Asset Value (Assets under management) </td> <td style="width: 117.05pt; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left-width: initial; border-left-style: none; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> Unit price (Net asset value or per share market value) </td> <td style="width: 45pt; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left-width: initial; border-left-style: none; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> 1-Year return </td> <td style="width: 71.75pt; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left-width: initial; border-left-style: none; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> 3-Year return </td> </tr> <tr> <td style="width: 40.25pt; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left: 1pt solid windowtext; border-top-width: initial; border-top-style: none; padding: 0cm 5.4pt;"> 1. </td> <td style="width: 115.55pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> Kotak India EQ Contra Fund - Growth </td> <td style="width: 77.9pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> ₹ 859.47 Cr </td> <td style="width: 117.05pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> ₹ 53.266 </td> <td style="width: 45pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 14.3% </td> <td style="width: 71.75pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 11.31% </td> </tr> <tr> <td style="width: 40.25pt; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left: 1pt solid windowtext; border-top-width: initial; border-top-style: none; padding: 0cm 5.4pt;"> 2. </td> <td style="width: 115.55pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> Mirae Asset Tax Saver Fund – Regular Plan - Growth </td> <td style="width: 77.9pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 2,465.46 Cr </td> <td style="width: 117.05pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> ₹ 17.867 </td> <td style="width: 45pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 15.14% </td> <td style="width: 71.75pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 12.48% </td> </tr> <tr> <td style="width: 40.25pt; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left: 1pt solid windowtext; border-top-width: initial; border-top-style: none; padding: 0cm 5.4pt;"> 3. </td> <td style="width: 115.55pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; background: rgb(156, 194, 229); padding: 0cm 5.4pt;"> Canara Robeco Equity Tax Saver – Regular Plan - Growth </td> <td style="width: 77.9pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> ₹ 965.21 Cr </td> <td style="width: 117.05pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> ₹ 66.79 </td> <td style="width: 45pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 18.67% </td> <td style="width: 71.75pt; border-top-width: initial; border-style: none solid solid none; border-left-width: initial; border-bottom-width: 1pt; border-bottom-color: windowtext; border-right-width: 1pt; border-right-color: windowtext; padding: 0cm 5.4pt;"> 10.28% </td> </tr> </tbody></table> Kotak India EQ Contra Fund – Growth Kotak India EQ Contra Fund – Growth fund enjoys a 97% investment in Indian stocks out of which about 72.02% is found with large cap stocks and 15.39% is lying with mid cap stocks. This fund reports about 0.01% investment in Debt out of which 0.01% in funds has been invested in very low risk securities. Kotak India EQ Contra Fund is highly suitable for you if you are a seasoned investor with an advanced knowledge about the macro trends and prepared for selective bets for the sake of getting high returns when compared to other equity funds. Nevertheless, you must be prepared to face the possibility of moderate or higher losses in your investments even if the overall market is seen doing better. This fund has significantly improved its performance over the years when compared to the other contra fund vehicles of similar nature. If you are an existing investor, you can continue your SIPs or investments. If you are new to this fund, jump in to start a fresh investment now. Mirae Asset Tax Saver Fund – Regular Plan – Growth Mirae Asset Tax Saver Fund – Regular Plan – Growth is found to have 99.69% investment in Indian stocks. Out of this, about 62.63% is held in large cap stocks and 18.31% is found with mid cap stocks. The percentage lying with the small caps stocks is 8.2. Mirae Asset Tax Saver Fund – Regular Plan – Growth will best suit investors who wish to keep their investment growing over a 3 year period. This fund will also meet your concerns regarding tax saving besides higher returns. Over a three year lock in period, you might also expect some losses. Canara Robeco Equity Tax Saver – Regular Plan – Growth Canara Robeco Equity Tax Saver – Regular Plan – Growth has 94.98% investment in Indian stocks. Out of this, 65.1% is in found with large cap stocks and 15.61% is lying with mid cap stocks. The remaining 2.96% is with small cap stocks. When compared to other funds in the ELSS category, this fund has remarkably improved its performance over the recent past. If you are an existing investor, it is worth continuing your SIP or investment in this fund. You can also think of making fresh investments in this mutual fund. See Also: <a data-type="tilCustomLink">Top performing mutual funds in India 2019</a>

Top Mutual Funds to invest this Diwali for the long-term prosperity of your family

<ul><li>Indian markets have had a volatile one year with Nifty clocking gains of about 10% in the one year ending June 30, 2019.</li><li>While six equity mutual funds performed better than the benchmark, only one of them manged to clock double the growth rate.</li><li>3 of the top 20 equity funds, by assets under management, showed a loss in investor wealth.</li></ul>Indian markets have had a volatile one year with Nifty clocking gains of about 10% in the one year ending June 30, 2019. Only six mutual funds performed better than the benchmark. And only one of them, the ICICI Pru Value Discovery Fund, managed to clock double the growth rate compared to Nifty and Sensex. The following is the list of top 20 schemes in descending order of assets under management at the end of June 2019, and the change in value compared to June 30, 2018. <table style="width: 400pt;"> </colgroup></colgroup> <tbody><tr> <td class="xl67" style="height:31.5pt;width:200pt">Rank</td> <td class="xl68" style="border-left-width: initial; border-left-style: none; width: 200pt;">Gains in the last one year</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Kotak Standard Multicap Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">10.80%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Equity Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">18.30%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">SBI Blue-Chip Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">7.80%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Midcap Opportunities Fund </td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">-0.90%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">ICICI Pru Blue-Chip Fund </td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">9%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Aditya Birla SL Frontline Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">6.20%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">AXIS Long Term Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">6.70%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Top 100 Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">18.30%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">ICICI Pru Value Discovery Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">21.90%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Mirae Asset Large Cap Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">12.10%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Motilal Oswal Multicap 35 Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">2.60%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Reliance Large Cap Fund</td> <td class="xl71" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">14%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Franklin India Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">2.40%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Aditya Birla SL Equity Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">4.40%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Reliance Tax Saver ELSS Fund</td> <td class="xl70" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none; width: 200pt;">2.90%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Reliance Multicap Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">15.20%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">UTI Equity Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">2.50%</td> </tr> <tr> <td class="xl69" style="height: 15pt; border-top-width: initial; border-top-style: none; width: 200pt;">Aditya Birla SL Tax Relief'96</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-0.50%</td> </tr> <tr> <td class="xl69" style="height: 30pt; border-top-width: initial; border-top-style: none; width: 200pt;">Franklin India Focussed Equity Fund</td> <td class="xl65" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">14.40%</td> </tr> <tr> <td class="xl72" style="height: 15.75pt; border-top-width: initial; border-top-style: none; width: 200pt;">HDFC Small Cap Fund</td> <td class="xl66" style="border-top-width: initial; border-top-style: none; border-left-width: initial; border-left-style: none;">-2.10%</td> </tr></tbody></table> Mutual funds -- a pool of money collected from many investors to invest in stocks, bonds, money market instruments, and other assets-- in India ended June 2019 with record money under management. The inflow into these funds were ₹107 billion, the highest in the last seven months. People invest in mutual funds in India for financial security, to grow their wealth as well as to save on taxes. The Indian government allows a rebate on income tax on money invested in mutual funds up to a maximum of ₹150,000 a year to every individual under section 80C of the Income Tax Act. The amount of money coming into mutual funds had slowed down in the last few months as investors became wary of betting more money in the market for a variety of reasons-- from slowing economy to the risk of elections to growing global tensions, both geopolitical and economic. People who have been investing in systematic investment plans -- small monthly investments-- continued their practice. However, new signings have been lower four out of the last six months showing that there is still palpable fear among investors. SEE ALSO: <a href="https://www.businessinsider.in/videos/business/unhappy-with-salary-hikes-market-expert-nilesh-shah-explains-a-good-way-to-evaluate-your-appraisal/videoshow/70037563.cms" data-type="tilCustomLink" target="_blank">Unhappy With Salary Hikes? Market Expert Nilesh Shah Explains A Good Way To Evaluate Your Appraisal</a> Correction: The data and inference had multiple errors in the earlier version of the story which have now been fixed.

The top 20 mutual funds in India and their performance over the last one year

“Mutual funds investments are subject to market risks, please read the offer document carefully before investing’ goes the oft-repeated statement.” 
	 
This warning that is written on all mutual fund investment documents and websites, just like they write warnings on cigarette packs, yet mutual fund investors ignore this caution primarily because people like you or me are not generally aware of the risks involved in mutual funds. This article would cover various market risks involved in mutual fund investments and also share tips on how you can reduce them. 
 

	Types of risks
The market risks are of two types. One type is of market risks are the ones that you, as an investor, can do nothing about. These are called systematic risks; these could be political factors, exchange rate fluctuations or even bad weather. Contrary to what you may have heard, these are difficult, if not impossible to predict or avoid. The second type is of risks are those that you can manage by diversification strategies. Generally, in a mutual fund, these risks are taken care of by your fund manager but you should be aware of them nonetheless. We can categorize them further into three broad types: business risk, concentration risk and liquidity risk. 
 
· Business risk: A sudden strike in the auto sector is an example of business risk. Poor financial performance of a company is another example. A fund manager mitigates this by diversifying across companies and sectors. 
 
· Concentration risk comes in when a mutual fund invests too large a proportion of its money in a single stock or sector. Sector funds, by definition, suffer from concentration risk because they invest in a single sector. 
 
· Liquidity risk arises if a fund cannot quickly convert its investments into cash, either in response to a redemption demand by investors or as part of portfolio rebalancing. Mutual funds investing in small cap stocks face this risk. 
 
 
 
What can you do about this, now that you know? 
Be careful while picking mutual funds. Ensure that you invest in large well-diversified equity funds. If you invest in specific sector or small/mid cap funds, do it with full knowledge of attendant risks. 
In our experience, mutual fund managers do a good job of managing risk. The biggest risk to an individual investor investing in mutual funds comes from faulty investment practices. And there is a lot you can do about it. 
 
Reduce risk by reducing mistakes 
Investing by definition involves exposing yourself to ‘risk’. The best you can do is: minimize risk. Having decided to invest via mutual funds, and not directly into stocks, is step 1 of minimizing risk. You are saying, “Let me entrust the task of investing to people more capable than me, and who do it fulltime”. 
 
But most investors still make lots of simple errors while investing in mutual funds. Let’s look at common errors, so can you avoid them. 
 
1. Investing with expectation of very high returns 
In an earlier section we talked about what the long-term expected returns from various asset classes are. However, we continue to see investors choose investments with expectation of unreasonable (40-50%) returns. This is just not going to happen and in an attempt to generate that return, you are likely to be misled into investing in funds that have shown a temporary blip in performance. 
Look at returns of funds over a minimum 5 year period. A 2-3% outperformance for equities and a 0.5-1% outperformance in debt funds is the best you can expect and you should be aware of that. 
 
2. Investing without understanding of underlying investments 
You already know that all mutual funds are not the same. Depending on which asset class and category of assets they invest in, you will get different returns with different behaviours. Debt funds offer lower but steadier return. Equity funds offer higher but more volatile return. 
 
Taxes saving funds (ELSS) are essentially equity funds and have the same return and risk profile. 
 
With this course, you should have enough knowledge to understand how the returns from a specific type of mutual fund will vary. 
 
3. Investing in NFOs “at par” or funds with “low” NAV 
Some investors believe lower the NAV (Net Asset Value) of a fund, the better value it provides. In other words, a fund with an NAV of Rs 20 is “cheaper” than another with an NAV of Rs 30. This belief is, perhaps, a mistaken application of the value-investing principles of equity investing. 
 
So, often such investors invest into a New Fund Offering (NFO) at par value or Rs 10, thinking they are buying value. 
 
But as you already know, from this course, that it makes no difference whether the NAV of a fund is high or low. In fact, older funds, with a longer track record, will always have high NAV and you are better off choosing those rather than a new fund with lower NAV but no track record. 
 
4. Investing for “dividends” 
We often see advertisements by mutual funds declaring dividends. Some investors are misled by these and think higher dividends reflect good performance. In the case of mutual funds, dividend declaration is nothing more than a book entry. Dividends are not interest but repayment of capital. Therefore the fund’s NAV falls to the extent the dividends are paid out to its unit holders. In fact, a growth option where you withdraw the money when YOU need it is better for you from a tax perspective. 
 
Conclusion 
Understanding market risk is important, but if you have chosen the asset class that best meets your objectives, you can trust the fund manager to manage the market risk for you. 
As an investor, you should focus on things you can control which are: Choosing the right mutual funds; following the correct process for investing; and reviewing your investments every year. 
 
(About the author: This article has been contributed by Sanjiv Singhal, CEO, <a href="http://scripbox.com/" target="_blank">scripbox.com</a>.) 
 
(Image credits: www.economictimes.com)

Mutual fund risks: Here is how you can reduce them

Tax saving is something that all of us typically think about only in the last quarter of a financial year. As we enter January, we get an email from our company’s HR department to submit our tax-saving details for the year. This email makes us realise that we haven’t made any tax-saving investment yet. We rush to invest to save taxes and end up making hurried investment decisions. Sure, even this way, we do end up saving tax. But that shouldn’t be the sole purpose of tax-saving <keyword id="6362476" type="ORGANIZATION" weightage="20" keywordseo="investments">investments</keyword>. When planned and executed properly, tax-saving investments can help you build wealth over the long-term as well. By their nature, tax-saving investments are long-term and can be used for goals like child’s education or marriage and your own retirement. Under Section 80C, a taxpayer can invest up to Rs 1.5 lakh in a year to save tax. This is a decent amount to build a corpus of wealth as well. But these investments should not be done in the last few months with little time and after little thought. These investments should be planned and started in the beginning of the financial year itself. Here is how you can plan your tax-saving investments for FY2017-18 to make maximum gains. Figure out the tax-saving expenses that you can claim Under Section 80C, there are a number of expenses that qualify as tax-saving deductions. This includes the life insurance premium you pay, school tuition fees for two children, repayment of your home loan, etc. These are expenses that you make anyway and they should be used to save taxes. Figure out how much will be the amount of these expenses. This will help you understand how much of the Rs 1.5 lakh 80C limit you need to invest. Build a portfolio of tax-saving investments Once you know how much you will need to invest to fulfil the 80C limit, you should think about where you want to invest that money. There are a number of investment options available, like ELSS funds, PPF, NPS, SukanyaSamriddhi, fixed deposits, NSC, etc. Choose the kind of investment that you are comfortable with, which matches your risk profile and start investing in them right away. It is easier to invest a small amount every month through the year than a big amount in one go at the end of the year. Make good use of ELSS funds ELSS funds are equity <keyword id="6357979" type="ORGANIZATION" weightage="20" keywordseo="mutual-funds">mutual funds</keyword> that come with a lock-in period of 3 years. They are considered to be the best tax-saving investment because of the flexibility they come with and the ability to earn inflation-beating returns. Everyone should invest some amount of their 80C limit in these funds. The equity-related risks get mitigated over the long-term and the returns earned by these funds also become tax-free after a year. Ideally, the younger you are, the more you should invest in ELSS funds. Link investments to goals It is always good to have investment goals. With a target in mind, it would become easier for you to choose a tax-saving investment. For example, for a goal like retirement, you can rely on your investments in EPF or PFF. But for a goal that is just 5-7 years away, you can put money in tax-saving fixed deposits or ELSS funds. This way, investments with different lock-in periods can be used to achieve different short-term and long-term goals. Don’t invest and forget This is a mistake that many investors do, especially with ELSS funds. It is of no use to check a fund’s performance every single day, but you should at least once in 6 months or a year. You can stop your SIPs in an underperforming ELSS fund any time you want and start SIPs in another ELSS fund to avail the same tax benefit. This flexible nature of ELSS funds should be used to earn optimum returns. Think beyond 80C Tax-saving doesn’t end with Section 80C investments and expenses. There are other ways to save taxes that should also be utilized by taxpayers. Medical insurance is tax-deductible under Section 80G. An additional ₹50,000 can be invested in NPS under Section 80CCD. Taxes can also be saved by making certain donations under Section 80G. You should find out about these tax-saving deductions and avail as much benefit as you can. These are some things that the common taxpayer can do to get the most out of saving taxes this year. But the most important thing is to not procrastinate. Plan your investments and start early. (The article is authored by Archit Gupta, Founder &amp; CEO, ClearTax.com)

Here’s how you can plan your investments to gain maximum savings

If you are looking to invest in a <keyword id="6354820" type="ORGANIZATION" weightage="20" keywordseo="mutual-fund">Mutual Fund</keyword> (MF), you will find one that will match your needs but with so many companies, each with so many schemes, it will be a difficult journey to find one that fits the requirement. 
 
Here, we will focus on a few parameters that will help you in choosing the right mutual fund for investment depending on an individual’s requirements. 
 
Ø Identify the objective: Like stated before, there is a right kind of mutual fund for everyone and every need. So, the first thing one needs to do is identify their objective for <keyword id="35175" type="UNKNOWN" weightage="20" keywordseo="investing">investing</keyword> in the mutual fund. This can be based on the timeline for investment (short or long term) or the financial goal. For instance, if Asha is looking to invest in a mutual fund to save tax; an Equity Linked Savings Scheme (ELSS) will suit her requirements, while Mr. Mehta is looking for a regular flow of income so for him a Monthly Income Plan (MIP) is required. So the first step is to be sure about the reason for investing in a MF so that you can focus on that segment and choose a scheme that suits you best. You can have multiple funds to satisfy one objective or different fund to meet different kinds of goal. 
 
Ø Asses your Risk Appetite: Mutual funds are managed by professionals and generally these professionals base their decisions on extensive research. However one cannot forget the MFs are market linked products which means they are susceptible to market risk and they do not have guaranteed but have indicative returns. So before choosing a scheme it is important to understand if it matches your objectives and whether it matches your risk appetite also or not. Equity funds are high risk and high returns, while debt funds lie on the other end of the spectrum. Balanced funds as the name suggests lie somewhere in between. Generally those in advanced years do not prefer equity oriented schemes while the younger investors can afford to invest in equity funds and take some risk. 
 
Ø Focus on History: As stated earlier, MFs are market related instruments so there can be no guaranteed returns. Even for debt funds the returns are indicative; so how does an investor decide if the fund will deliver what it promises in terms of returns? This can be assessed to an extent by looking at the past performance which can be indicative of the expected future returns but again there is no surety that in the future also a similar pattern will be followed. Looking at the past returns can help in assessing a trend that a mutual fund follows in terms of returns. 
 
Ø Use Statistics: Apart from returns, certain other numbers are also important when choosing the right mutual fund. Alpha is one such indicator; it is a measure of MF’s performance on a risk adjusted basis and as compared to the benchmark. A positive alpha indicates that the fund is doing well. Beta is the measure of fund’s volatility as against the benchmark. It measures the fund’s sensitivity to changes in the market. For an investor with low risk appetite a fund which has a beta value less than one is the right choice and the opposite is true for those are willing to have a bigger risk appetite. Standard deviation in terms of a MF will indicate its volatility; how much the returns deviate from the expected returns calculated based on the past performance. An investor should also keep an eye on the various costs that he/she incurs as these costs ultimately impact the overall profitability of a mutual fund. 
 
Ø Pedigree is Important: Another factor that one should focus on while selecting a mutual fund is the fund house that is promoting it and who the fund manager is. Choosing a well known and experienced fund house will ensure that they will not indulge in unethical practices or will go bust while leaving you in the lurch. A fund manager decides which instruments or securities to invest in so an experienced and knowledgeable fund manager will ensure that you get good returns on your investments. Being preemptive and not reactive is what distinguishes a good fund manager from an average one. 
 
The above factors can hopefully help you in choosing the right mutual fund for yourself which not only helps you in meeting your financial goal but is also a safe and profitable investment. 
 
(Rajiv Raj is the Director and Co-Founder of www.creditvidya.com) 
 
(Image: ThinkStock)

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