Investing in mutual funds has become one of the most popular choices for individuals looking to grow their wealth in India. With a wide range of options available, mutual funds offer both novice and seasoned investors a way to diversify their portfolios while managing risk. In this blog, we’ll guide you through the top mutual funds to invest in India for 2024 and explain how you can choose the right ones to achieve your financial goals.
Why Invest in Mutual Funds?Before we dive into the top mutual fund options, it’s essential to understand why mutual funds have gained such popularity among Indian investors. Here are some of the key benefits:
- Diversification: Mutual funds pool money from various investors to invest in a diversified portfolio of stocks, bonds, and other assets. This helps spread risk.
- Professional Management: Fund managers with expert knowledge handle mutual funds, making them a good choice for investors who lack time or expertise in managing investments.
- Liquidity: Unlike fixed deposits, mutual funds allow you to redeem your units at any time, making them a liquid investment option.
- Affordable: With a small initial investment, mutual funds make it easy for investors to start with as little as ₹500 a month via Systematic Investment Plans (SIPs).
Now, let's explore the top mutual funds that are expected to perform well in 2024.
Top Mutual Funds to Invest in India for 2024 1. Mirae Asset Large Cap Fund- Category: Large Cap
- 1-Year Return: 12.2%
- Expense Ratio: 0.56%
The Mirae Asset Large Cap Fund has consistently delivered strong returns over the years. This fund invests primarily in large-cap stocks that have stable and reliable growth. It is ideal for investors looking for long-term growth while minimizing risk. The fund’s strong portfolio management and low expense ratio make it a favorable choice for risk-averse investors.
2. Axis Bluechip Fund- Category: Large Cap
- 1-Year Return: 14.4%
- Expense Ratio: 0.55%
The Axis Bluechip Fund is known for its stability and consistent performance in the large-cap space. The fund invests in blue-chip companies that are leaders in their respective industries, ensuring growth with relatively lower risk. It's a great option for conservative investors seeking capital appreciation and moderate risk.
3. HDFC Hybrid Equity Fund- Category: Hybrid Fund
- 1-Year Return: 10.8%
- Expense Ratio: 1.25%
For those seeking a mix of equity and debt investments, the HDFC Hybrid Equity Fund is an excellent choice. This hybrid fund balances risk by investing in both high-growth equities and low-risk debt securities. If you are looking for a fund that offers growth potential with reduced volatility, this fund is highly recommended.
4. SBI Small Cap Fund- Category: Small Cap
- 1-Year Return: 18.3%
- Expense Ratio: 0.72%
The SBI Small Cap Fund invests in small-cap companies with high growth potential. Although small-cap stocks are more volatile, they offer greater returns over the long term. If you're willing to take on more risk for the possibility of higher returns, this fund is a solid option.
5. ICICI Prudential Balanced Advantage Fund- Category: Balanced Advantage Fund
- 1-Year Return: 12.0%
- Expense Ratio: 0.94%
The ICICI Prudential Balanced Advantage Fund uses a dynamic strategy to allocate assets between equity and debt based on market conditions. It is an excellent choice for investors who want to minimize risk while achieving reasonable returns. The fund’s strategy of asset allocation based on market conditions allows it to perform well in both bullish and bearish markets.
6. Aditya Birla Sun Life Tax Relief 96- Category: ELSS (Equity Linked Savings Scheme)
- 1-Year Return: 16.7%
- Expense Ratio: 1.90%
If you’re looking to save taxes while investing in equities, the Aditya Birla Sun Life Tax Relief 96 fund is one of the top options. As an ELSS, it provides tax benefits under Section 80C of the Income Tax Act. With a strong performance history and a focus on long-term wealth creation, this fund is ideal for investors looking to save taxes while investing in a diversified equity portfolio.
How to Choose the Best Mutual Fund for Your Investment GoalsWhen selecting a mutual fund, it’s important to consider several factors to ensure it aligns with your financial goals and risk tolerance. Here are some tips for choosing the best mutual fund for you:
- Define Your Investment Objective: Are you looking for long-term growth, regular income, or tax-saving benefits? Define your financial goals first.
- Risk Tolerance: Understand the risk associated with the fund. Large-cap funds are generally safer, while small-cap and mid-cap funds are more volatile but offer higher returns.
- Expense Ratio: A lower expense ratio means higher returns for you. Compare different funds' expense ratios before making your decision.
- Past Performance:While past performance is not a guarantee of future returns, it can give you an idea of how well a fund has performed in different market conditions.
- Fund Manager’s Track Record: - A fund manager’s experience and skill play a major role in the fund’s performance. Choose funds managed by experienced professionals.
Mutual funds remain one of the best investment options for growing wealth in India. Whether you are a seasoned investor or a beginner, there are mutual fund options to suit your risk appetite and financial goals. For 2024, we recommend considering the top mutual funds like Mirae Asset Large Cap Fund, SBI Small Cap Fund and HDFC Hybrid Equity Fund, among others.
At Finwelco, we are committed to providing you with expert guidance on choosing the right mutual funds. We offer a range of investment solutions tailored to your financial goals, helping you make informed decisions for your future.
Contact us today to get personalized investment advice or explore the best mutual fund options for your portfolio!
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By Satish Chandra