Top Mutual Funds to invest in Dec 2019

Let us use the 5 year returns criterion to short list 3 funds across 8 key categories. These are the best mutual funds to invest in 2019.

Dec 09, 2019 10:12 IST India Infoline News Service

Feeder Funds
How do you evaluate the top mutual funds in terms of performance? While past returns may not be reflective of the future performance, it is the closest that we can come to taking a quantitative view of the fund performance. Of course, you need to benchmark the performance of the top 10 mutual funds with the index too. Only that will give you the best mutual funds to invest. Let us use the 5 year returns criterion to short list 3 funds across 8 key categories. These are the best mutual funds to invest in 2019. Of course, you still need to do your portfolio-specific due diligence before taking a final call. In this entire analysis, we only consider growth options and we also ignore the Direct Plans.
 
Equity Large Cap Funds
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Mirae Asset Large Cap (G) 13.771% 15.097% 11.081%
Quant Focused Fund (G) 6.529% 8.508% 10.008%
Axis Blue Chip Fund (G) 19.726% 19.176% 9.864%
Data Source: Morningstar
 
Equity Multi-Cap Funds
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Motilal Multi Cap 35 Plan (G) 7.124% 10.735% 11.448%
Kotak Standard Multicap (G) 13.587% 13.479% 10.354%
SBI Magnum Multi Cap (G) 13.001% 11.894% 10.181%
Data Source: Morningstar
 
Equity Linked Savings Schemes (ELSS)
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Tata Tax Saving Fund (G) 15.892% 13.955% 11.371%
Quant Tax Plan (G) 7.793% 9.889% 11.313%
Axis Long Term Equity (G) 15.410% 15.864% 10.843%
Data Source: Morningstar
 
Balanced Funds (Aggressive Allocation)
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
SBI Equity Hybrid Fund (G) 14.879% 11.612% 9.750%
DSP Equity and Bond Fund (G) 15.116% 10.123% 8.989%
Canara Robeco Hybrid G) 12.550% 11.315% 8.927%
Data Source: Morningstar
 
Equity Index Funds
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Nifty Next 50 (G) 3.952% 8.689% 8.326%
HDFC Index Sensex (G) 15.289% 16.135% 8.311%
UTI Nifty Index Fund (G) 13.725% 14.657% 7.906%
Data Source: Morningstar
 
Arbitrage Funds
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon Arbitrage Fund (G) 6.268% 6.268% 6.717%
Edelweiss Arbitrage Fund (G) 6.208% 6.134% 6.635%
Kotak Equity Arbitrage (G) 6.121% 6.152% 6.568%
Data Source: Morningstar
 
Government Securities Funds
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
Nippon India Gilt Sec Fund (G) 11.854% 6.471% 9.244%
Aditya Birla G-Sec Fund (G) 10.997% 5.917% 9.092%
SBI Magnum Gilt Fund (G) 11.989% 6.068% 9.013%
Data Source: Morningstar
 
Credit Risk Funds
 
The leaders in this category based on five year returns (as of 06th Dec 2019) are as under:
Name of Fund 1-Year Return 3-Year Return 5-Year Return
ICICI Pru Credit Risk Fund (G) 9.422% 7.365% 8.257%
Kotak Credit Risk Fund (G) 9.022% 6.881% 8.233%
HDFC Credit Risk Fund (G) 9.001% 6.519% 8.174%
Data Source: Morningstar
 
How to take a buy decision
The big challenge is to take a view on these funds. We have only considered regular funds but if you opt for direct funds then your TER will be lower and hence returns will be higher. Apart from the absolute returns over 5 years, you must also look at the consistency of performance over different time frames. Ideally, prefer a fund that gives more consistent returns as they are more predictable and timing of entry is not too critical in such cases. For equity related funds, it also adds value to look at risk-adjusted returns in the form of Sharpe and Treynor ratios. Lastly, portfolio composition is critical. When you look at categories like multi-cap, mid-cap and credit risk funds, the concentration risk in the portfolio must also be evaluated. A summation of all these perspectives can give you a good view of top mutual funds in India.

Related Story

Open Free Demat Account (Rs699)