Who does not want to build wealth? You must know that Mutual fund can be most helpful in this regard. But do you know the best mutual fund in India for 2019? If not, you can read this post as I have made a list of the best Equity mutual fund from each category of the mutual fund. There are top 5 mutual fund schemes. All the selected funds are open-ended and invest in shares.
Best Large Cap Mutual Fund (2019) – ICICI Prudential Bluechip Fund
This mutual fund scheme should be the best fund for 2019. The fund is very old and performing consistently.
- The scheme mostly invests in large cap shares.
- It adopts the buy and hold approach.
- It selects shares which have potential to give good return in the long term.
- The fund closely follows the benchmark index.
Return of the Fund
The fund has performed quite well in the long term. In fact, in the last 10 years, it is the second-best performer mutual fund scheme in its category. If you had invested ₹10 thousand at the end of 2013, it would have become 19,697 at the end of 2018. The money would have been doubled in 5 years.
If you have started a SIP of ₹1000 five years back, your total investment of ₹60 thousand would have become about 80 thousand. However, the fund has given a negative return in 2018 because of the poor show by the stock market.
Out of the last 10 years, the fund has outperformed the large cap category in 8 years.
How Much Risk Does Fund Take
As ICICI Prudential Bluechip Fund invests only in the large companies, It does not take excessive risk. In fact, it takes low risk in comparison to the category. The volatility of this fund is also 13.68 which is less than the category average. The large cap category mutual funds have average volatility of 14.79.
Best Mid cap Fund – L&T Midcap Fund Growth
The L&T Midcap Fund should be best mutual fund scheme for 2019 in midcap category. The fund has given above-average return in the last 3 and 5 years. but it did not take above average risk.
- The L&T Midcap fund invests only in the share of Midcap companies.
- It selects companies from the Midcap 100 index.
- The fund picks the share after assessing the management quality.
- It also looks for the financial stability of the company and its free cashflow.
- Return on capital employed is an important ratio while selecting the shares.
Performance of L&T Midcap
A SIP of ₹1000 per month (aggregate 60,000) from the beginning of 2014 would have accumulated about 90,000 at the end of 2018. If you had invested ₹10,000 at the end of 2008, it would have become ₹29 thousand at the end of 2018.
In the last 3 year and 5 year period, this fund has been the top performer. Even in the 10 year period, it was on the rank 3. In the last 10 years, the L&T Midcap has beaten the benchmark 9 times. It has also outperformed the category average 7 times.
The fund has given an annualized return of 23.28% during the last 10 years. As other equity mutual funds, it has also given a negative return in 2018. I hope, it would give a positive return in 2019.
Risk of L&T Midcap
The L&T Midcap does not churn its stocks. The turnover ratio is a mere 33%. Also, it took an average risk in comparison to the mid-cap category. The volatility of the fund is 17.62 which is lower than the category. The category had a volatility of 17.77.
Best Multi Cap Fund – Mirae Asset India Equity
The erstwhile name of the Mirae Asset India Equity Fund was Mirae Asset India Opportunities Fund. It is a multicap fund which invests in Large cap, Midcap and Small cap shares. The fund tries to encash opportunities in different market cycles.
Investment Strategy of this Best Fund
The fund has the flexibility to invest across sectors, market capitalization, themes & investment styles
The Mirae Asset India Equity Fund has adopted ‘core and tactical’ approach to building the portfolio.
- Core: investment in good businesses from long term perspective
- Tactical: Taking advantage of short-to-medium opportunities
Performance of the Fund
In the last 10 years, the fund has always but once given the above category average return. In 2009, just after the depression, the fund has given 109% return in one year. It has consistently beaten the benchmark index.
In the last 10 years, the Mirae Asset India Equity Fund has given 22.12% annualized return. In the last 5-year term the return was 18.64%. In the year 2018, it has given -1.5% return. Although it has given a negative return still it was 5% higher than the average return of the multicap category.
The fund is second best performer in the last 10 years. In the last 3 year as well the rank was second. While in the last 5 years it has achieved the sixth rank in the multi-cap category.
Risk of Mirae Asset India Equity Fund
The fund takes below Average risk in comparison to the multi cap category. It does not churn the portfolio frequently. The turnover of the portfolio is a mere 33%. The volatility of the fund is 14.95.
Best ELSS fund – Aditya Birla Sun Life Tax Relief 96
It is one of the oldest tax saving mutual fund. In this fund, your investment gets locked for 3 years. The fund has been a consistent performer.
- The fund works for long-term growth.
- 80% of its corpus is invested in the share while the remaining amount is kept in debt or cash.
- The fund invests in large cap and midcap both. The fund allocates 50% of equity investments into the midcap shares. Thus, it relies more on midcap relative to the ELSS category.
- The ABSL tax relief 96 fund invests in quality companies. It invests into the companies run by professional management. The companies should have the predictability of earnings and a strong safety net.
- It has given a splendid return in the last 10 year period. The annualized return for this period was 19.51%. That is why it got the third rank among ELSS funds during this period.
- During the last 5 years, it has earned an annualized return of 18.75%. It is again a very good result. This return kept it at the third rank.
- During the last 3 years, the fund has earned an annualized return of 12.22%. It seems slightly low, still, the fund was on number 6 during this period.
- In the last 10 years, the ABSL tax relief 96 has outperformed the category return in 7 years. The year 2018 has not been good for the fund and it has given -6% return. Still, it was better than the ELSS category average……Read more>>