Best Performing Mutual Funds in India Last 5 Years ! Investing in mutual funds requires careful consideration of various factors beyond just the historical performance of funds over the last five years. Here’s an in-depth overview of the best performing mutual funds in India over the last five years, including factors to consider before investing in them.
Best Performing Mutual Funds in India Last 5 Years :
- Axis Bluechip Fund:
- An equity-oriented fund primarily investing in large-cap companies.
- Focuses on blue-chip stocks with a track record of consistent growth.
- Has shown stable performance and relatively lower volatility.
- Canara Robeco BlueChip Equity Fund:
- Another large-cap focused fund with a history of investing in well-established companies.
- Aims for long-term capital appreciation by primarily investing in large-cap stocks.
- PGIM India Mid-Cap Opportunities Fund:
- This fund targets mid-cap companies that have the potential for substantial growth.
- Typically involves higher risk due to the volatility associated with mid-cap stocks.
- Axis Mid-Cap:
- Similar to PGIM India Mid-Cap Opportunities Fund, it concentrates on mid-cap stocks, aiming for higher growth potential.
- Nippon India Small Cap Fund Growth:
- Focuses on small-cap companies, which usually have higher growth potential but also higher risk.
- Tends to be more volatile than large or mid-cap funds.
- SBI Small Cap Fund:
- Another small-cap fund that seeks to generate long-term capital growth from a diversified portfolio of small-cap stocks.
- Parag Parikh Flexi-Cap Fund:
- Known for its flexibility in investing across market capitalizations, including domestic and international equities.
- Offers a diversified portfolio with exposure to different sectors and geographies.
- PGIM India Flexi-Cap Fund:
- A flexible fund that invests across market caps and sectors based on market conditions.
- Aims for capital appreciation over the long term.
- Quant Tax Plan-Growth:
- A tax-saving fund that invests primarily in equity and equity-related instruments to provide tax benefits under Section 80C of the Income Tax Act.
- Mirae Asset Tax Saver Fund:
- A tax-saving fund focusing on generating long-term capital appreciation by investing predominantly in equities.
Factors to Consider Before Investing: Best Performing Mutual Funds in India Last 5 Years
- Past Performance:
- While historical performance can be indicative, it’s not a guarantee of future returns. Look for consistency in performance across various market cycles.
- Risk Appetite:
- Assess your risk tolerance before investing. Funds focusing on small or mid-cap stocks tend to be riskier but might offer higher growth potential.
- Fund Manager’s Expertise:
- Evaluate the track record and experience of the fund manager. A skilled manager can navigate different market conditions effectively.
- Expense Ratio:
- Lower expense ratios indicate higher returns for investors. Compare expense ratios across similar funds.
- Investment Objective:
- Align the fund’s objective with your financial goals. Different funds cater to different objectives like growth, income, or tax savings.
- Diversification:
- Consider funds with a diversified portfolio across sectors and market caps to spread risk.
- Exit Load and Tax Implications:
- Understand the exit load (if any) and tax implications associated with the fund.
- Market Conditions:
- Analyze current market conditions and economic trends before making an investment decision.
- Consistency in Performance:
- Look for funds that consistently perform well rather than those with sporadic spikes in returns.
- Investment Horizon:
- Mutual funds are best suited for long-term investments. Align your investment horizon with the fund’s objectives.
In conclusion, while the historical performance of mutual funds is an essential factor, it’s crucial to evaluate other aspects like risk, expense ratios, fund managers, and your own financial goals and risk appetite before making investment decisions. Always consider seeking advice from a financial advisor for personalized guidance based on your individual circumstances and goals.
