Mutual funds give attractive returns. Let’s have a look at the best funds in the market

Mutual funds

Mutual funds are very popular. Some prefer them for the returns that they offer, some for the tax benefits under ELSS schemes, some for the diversified portfolio and some for inflation-adjusted returns. Whatever is the reason for preference, the bottom line, which is also the tag line for AMFI (Association of Mutual Funds in India), is simple – ‘Mutual funds sahi hai’.

Mutual fund schemes come in different variants to that every type of investor can get what he is looking for. You can sell equity mutual fund schemes to clients who love taking risks and debt funds to those who prefer to avoid it. Then there are balanced funds for those clients who want the best of equity and debt. 

When it comes to mutual fund returns, the returns depend on the type of scheme that you pick. Equity mutual funds give high returns but they involve a high volatility risk too. Debt mutual funds, on the other hand, offer moderate but stable returns even in volatile times. So, when checking returns of mutual fund schemes, compare similar schemes for a return comparison. 

To make your job easier, here are the top mutual fund schemes in different categories which have given the best returns –

  • Large cap equity funds

    Large cap equity funds are equity schemes which invest primarily in stocks of large cap companies, i.e. companies who have a large market capitalization and are established in their particular sectors. These companies are financially strong to weather bad market cycles and so, large cap funds offer more stable returns compared to other equity schemes. The top-performing large cap funds are as follows –

    Name of the fund

    1-year return

    3-year returns

    5-year returns

    Axis Bluechip Fund – Growth

    4.69%

    10.06%

    10.92%

    Mirae Asset Large Cap Fund – Regular – Growth

    3.69%

    4.70%

    10.19%

    ICICI Prudential Bluechip Fund – Growth

    0.33%

    2.60%

    7.84%

  • ELSS schemes

    ELSS schemes are equity mutual fund schemes which give tax benefits. Investments into the scheme qualify for a deduction under Section 80C up to INR 1.5 lakhs. Moreover, returns earned, up to INR 1 lakh, are also tax-free in the hands of your clients. ELSS schemes have a lock-in period of 3 years and the top schemes are as follows –

    Name of the fund

    1-year return

    3-year returns

    5-year returns

    Axis Long Term Equity Fund – Growth

    2.16%

    7.40%

    9.50%

    Aditya Birla Sun Life Tax Relief 96 – Growth

    4.06%

    2.20%

    8.26%

    Tata India Tax Savings Fund – Regular – Growth

    0.20%

    2.20%

    8.78%

  • Small cap equity funds

    These funds invest in stocks of companies which have a small market capitalization. Small cap funds have a tremendous return potential but the volatility risk is also very high. Some of the top performing funds in this category are as follows –

    Name of the fund

    3-month return

    1-year return

    3-year returns

    Kotak Small Cap Fund – Regular – Growth

    20.27%

    15.63%

    2.29%

    Axis Small Cap Fund – Regular – Growth

    16.30%

    8.66%

    8.15%

    SBI Small Cap Fund – Growth

    15.54%

    12.63%

    4.39%

  • Short term debt fund

    Short term debt fund is a debt mutual fund scheme which invests in instruments with an average maturity period of 1 year to 3 years. The leading funds in this category are as follows –

    Name of the fund

    3-month return

    1-year return

    3-year returns

    HDFC Short Term Debt Fund – Growth

    1.93%

    11.17%

    8.91%

    Kotak Bond Short Term Plan – Regular – Growth

    1.70%

    10.14%

    8.28%

    Axis Short Term Fund – Growth

    1.70%

    10.41%

    8.45%

  • Long term debt fund

    If your clients have a long term investment horizon, they can invest in these funds which invest in instruments having a maturity period of 10 to 15 years. The top long term debt funds are as follows –

    Name of the fund

    3-month return

    1-year return

    3-year returns

    IDFC Government Securities Fund Constant Maturity Plan – Regular – Growth

    1.45%

    13.78%

    12.62%

    SBI Magnum Constant Maturity Fund – Growth

    1.53%

    11.85%

    10.95%

    IDFC G Sec Fund – Investment Plan – Regular – Growth (Re-launched)

    1.42%

    14.13%

    10.56%

  • Equity hybrid funds

    Hybrid funds combine equity and debt investments in their portfolio. Equity hybrid funds have at least 65% of their portfolio invested in equity. The top funds in this category are as follows –

    Name of the fund

    1-year return

    3-year returns

    5-year returns

    ICICI Prudential Equity & Debt Fund – Growth

    -4.67%

    -0.16%

    6.42%

    HDFC Hybrid Equity Fund – Growth

    1.91%

    -0.70%

    4.68%

  • Debt hybrid funds

    These funds invest primarily in debt and, therefore, offer stable returns. The top funds in this category are as follows –

    Name of the fund

    3-month return

    1-year return

    3-year returns

    ICICI Prudential Regular Savings Fund – Growth

    3.68%

    8.96%

    7.32%

    ICICI Prudential Balanced Advantage Fund – Regular – Growth

    4.81%

    5.03%

    5.75%

    UTI Regular Savings Fund – Growth

    4.72%

    4.50%

    3.60%

    (Source of all returns – https://www.turtlemintmoney.com/top-mutual-funds)

You can, therefore, pitch the leading mutual fund schemes to your clients based on their investment preference. You can also introduce MintPacks which combine some of the best mutual fund schemes based on the financial goals of your clients.

This Diwali, help your clients pick the right mutual fund investment for their money’s worth and when they earn attractive returns, your goodwill and business would also grow.

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