Moneycontrol
Jul 26, 2017 12:36 PM IST | Source: Moneycontrol.com

Want to invest in equity mutual funds? Here are the best performing ones

Mutual funds, too, have risks in varying degrees. One must analyse risks before picking any investment instrument.

Want to invest in equity mutual funds? Here are the best performing ones
Navneet Dubey

Moneycontrol News

Most financial advisors would advise you to invest through mutual funds if you are not adept at investing or lack the time to do your research of market trends. However, mutual funds too come with their own risk which every investor must be aware of.

“Mutual funds, too, have risks varying in varying degrees. There aren’t just market risks, but also other forms of risks of liquidity, inflation, diversification, longevity, etc. One must analyse these factors before picking any investment instrument,” says Adhil Shetty, CEO, bankbazaar.com.

We take a look at the list of schemes under various equity oriented funds which performed well in past few years.

 Large cap funds:
MF Scheme Risk-associated Annualised Returns (%)
1-Year 3-year 5-year
SBI Bluechip Fund Moderately high 16 15 20
DSP Black Rock Focus 25 Fund High 16 15 18
Reliance Top 200 –– Retail Plan Moderately high 24 14 19
Birla Sun Life Frontline Equity Fund Moderately high 19 14 19

Franklin India Bluechip Fund

 
Moderately high 15 14 15
SOURCE: paisabazzar.com
Midcap funds:
MF Scheme Risk-associated Annualised Returns (%)
1-Year 3-year 5-year
Reliance Small Cap Fund Moderately high 41 26 32
Kotak Emerging Equity Scheme Moderately high 26 25 26
Franklin India Smaller Companies Fund Moderately high 24 24 32
SBI Magnum Midcap Fund Moderately high 17 22 28
DSP BlackRock Small and Mid Cap Fund High 27 22 25
SOURCE: paisabazzar.com
Multicap funds:
MF Scheme Risk-associated Annualised Returns (%)
1-Year 3-year 5-year
Kotak Select Focus Fund Moderately high 24 19 22
SBI Magnum Multicap Fund Moderately high 21 19 21
Franklin India High Growth Companies Fund Moderately high 19 19 24
DSP BlackRock Opportunities Fund High 24 18 21
ICICI Prudential Value Discovery Fund Moderately high 11 14 22
SOURCE: paisabazzar.com
ELSS funds:
MF Scheme Risk-associated Annualised Returns (%)
1-Year 3-year 5-year
Birla Sun Life Tax Relief 96 Moderately high 22 19 23

IDFC Tax Advantage (ELSS) Fund

 
High 28 17 22
DSP BlackRock Tax Saver Fund High 23 17 22
Axis Long Term Equity Fund Moderately high 16 16 23
Reliance Tax Saver Fund Moderately high 27 16 23
SOURCE: paisabazzar.com
Equity-oriented hybrid funds:
MF Scheme Risk-associated Annualised Returns (%)
1-Year 3-year 5-year
DSP BlackRock Balanced Fund Moderately high 19 16 16
ICICI Prudential Balanced Fund Moderately high 22 15 20

Birla Sun Life Balanced '95 Fund

 
Moderately high

18

 
15 18
SBI Balanced Fund Moderately high 16 14 19
Reliance Regular Savings Fund Moderately high 21 14 18
SOURCE: paisabazzar.com

Mid cap Investment

If you would have started an SIP of Rs 5000 in a Reliance Small Cap Fund or Franklin India Smaller Companies Fund where the funds had given a return of 32 percent then in such case you would have possibly made Rs 7.4 lakh by investing Rs 3 lakh in a 5 years span.

Large cap or balanced fund Investment

On the other hand, if you would not have taken high risk and had invested Rs 5,000 in an SIP mode in either of the funds like ICICI Prudential Balanced Fund or SBI Bluechip Fund as stated above where the funds had given a return of 20 percent then in such case, you would have made Rs 5 lakh by investing Rs 3 lakh in 5-years.

ELSS investments

If tax saving investors who would have invested lump sum of Rs 1 lakh in FY2011-12 in IDFC Tax Advantage (ELSS) Fund or DSP BlackRock Tax Saver Fund where the funds had given a return of 22 percent, you would have not only have saved taxes for up to Rs 30,000 (a person falling under 30% tax slab) in that financial year, but also, their investment today after 5 years would have also reached to around Rs 3 lakh.

However, all investments carry a degree of risk where most mutual fund schemes tend to have market and liquidity risk associated with them. Hence, one should know that any investment made in market-related securities will involve some element of risk.

“Given the present liquidity-led high valuations in equity markets and stagnation in the corporate earnings front, investment in equity funds for less than 3 years would entail a high amount of risk. Instead, opt for debt accrual funds for financial goals maturing within 3 years as these funds primarily invest in fixed income securities with low interest-rate risk,” says Manish Kothari - Head of Mutual Funds, Paisabazaar.com.
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