Selecting suitable funds becomes critical as more investors turn to mutual funds for wealth-building and portfolio diversification. Mutual funds cater to varied investment goals and offer potential growth with professional management. A recent report by Prabhudas Liladhar Wealth Management identifies the top-performing mutual funds across categories, providing valuable insights for those looking to make informed investment decisions. Find the top-performing mutual funds to invest in with the highest 1-year returns. Expert advice and a complete list are inside.
Overview of Top Performers
The report highlights the strongest performers across multiple fund categories, with each fund demonstrating impressive returns over the past year. For those prioritizing large-cap stability, the Quant Large Cap Fund-Reg(G), led by Sandeep Tandon, was the standout performer, achieving an impressive one-year return of 45.88%. The Baroda BNP Paribas Large Cap Fund-Reg(G) and the Bandhan Large Cap Fund-Reg(G) were not far behind, with 45.16% and 44.23% returns, respectively.
Key Insights by Fund Category
Large Cap Funds
Large-cap funds invest in well-established companies with strong market capitalizations, offering relative stability in the volatile market. The top performers in this segment were:
- Quant Large Cap Fund-Reg(G): AUM of ₹1,620.55 crore, delivering a 45.88% one-year return, managed by Sandeep Tandon.
- Baroda BNP Paribas Large Cap Fund-Reg(G): With AUM at ₹1,883.17 crore and a return of 45.16%, managed by Jitendra Sriram.
- Bandhan Large Cap Fund-Reg(G): AUM of ₹1,398.51 crore and a 44.23% return, managed by Sumit Agrawal.
Large and Mid-Cap Funds
These funds balance investments in large and mid-sized companies, benefiting from growth potential without sacrificing stability. Leading performers included:
- Invesco India Large & Mid Cap Fund(G): AUM of ₹4,906.24 crore, yielding a 61.08% return, managed by Aditya Khemani.
- Motilal Oswal Large & Midcap Fund-Reg(G): AUM of ₹3,690.99 crore, with a 60.53% return managed by Ajay Khandelwal.
- Bandhan Core Equity Fund-Reg(G): AUM of ₹5,157.32 crore and a 56.43% return, managed by Manish Gunwani.
Flexi Cap Funds
Flexi-cap funds offer a diverse approach, with the flexibility to invest across market caps. The top funds in this category were:
- Motilal Oswal Flexi Cap Fund-Reg(G): AUM of ₹6,363.95 crore and a leading 62.83% return, managed by Niket Shah.
- JM Flexicap Fund-Reg(G): With ₹2,188.17 crore in AUM and a 59.04% return, managed by Satish Ramanathan.
- NJ Flexi Cap Fund-Reg(G): AUM of ₹1,607.86 crore, yielding 55.49%, managed by Dhaval Patel.
Multi-Cap Funds
Multi-cap funds invest in stocks across different market caps, diversifying across sectors. The best performers included:
- Axis Multicap Fund-Reg(G): AUM of ₹5,686.85 crore and a return of 56.17%, managed by Shreyash Devalkar.
- Kotak Multicap Fund-Reg(G): ₹12,275.10 crore in AUM, returning 52.6%, managed by Devender Singhal.
- HSBC Multi Cap Fund-Reg(G): AUM of ₹3,719.42 crore, with a 52.08% return, managed by Venugopal Manghat.
Mid-Cap Funds
With growth-driven mid-sized companies, these funds target higher returns but with moderate risk. The top performers were:
- Motilal Oswal Midcap Fund-Reg(G): ₹7,674.98 crore AUM, a notable 71.8% return, managed by Niket Shah.
- ITI Mid Cap Fund-Reg(G): AUM of ₹1,028.64 crore and a 61.47% return, managed by Rohan Korde.
- Edelweiss Mid Cap Fund-Reg(G): With an AUM of ₹6,152.01 crore and a 60.25% return, managed by Trideep Bhattacharya.
Small Cap Funds
Small-cap funds focus on emerging companies with high growth potential. Leading funds were:
- Bandhan Small Cap Fund-Reg(G): AUM of ₹4,371.78 crore and a high 72.13% return, managed by Manish Gunwani.
- Mahindra Manulife Small Cap Fund-Reg(G): With ₹2,904.46 crore AUM, delivering 59.54%, managed by Abhinav Khandelwal.
- ITI Small Cap Fund-Reg(G): AUM of ₹970.15 crore, yielding a 58.61% return, managed by Dhimant Shah.
Focused Funds
These funds target a select few high-potential stocks across market caps. The top performers were:
- Invesco India Focused Fund-Reg(G): AUM of ₹2,387.25 crore and a substantial 68.44% return, managed by Taher Badshah.
- ICICI Pru Focused Equity Fund(G): ₹6,990.76 crore in AUM, with a 52.68% return, managed by Vaibhav Dusad.
- Mahindra Manulife Focused Fund-Reg(G): AUM of ₹1,438.99 crore, yielding 48.71%, managed by Krishna Sanghavi.
Value-Contra-Dividend Yield Funds
These funds invest in undervalued stocks with long-term growth potential and dividend yields. Standouts included:
- Quant Value Fund-Reg(G): AUM of ₹1,456.93 crore, offering a 67.04% return, managed by Sandeep Tandon.
- LIC MF Dividend Yield Fund-Reg(G): ₹315.83 crore in AUM with a 61.54% return, managed by Dikshit Mittal.
- Nippon India Value Fund(G): ₹7,544.31 crore AUM, yielding a 55% return, managed by Dhrumil Shah.
Equity-Linked Savings Schemes (ELSS)
These tax-saving funds offer tax benefits under Section 80C with a lock-in period of three years. Leading performers were:
- Motilal Oswal ELSS Tax Saver Fund-Reg(G): AUM of ₹2,729.58 crore with a 66.56% return, managed by Ajay Khandelwal.
- SBI Long Term Equity Fund-Reg(G): With a substantial AUM of ₹21,195.97 crore and a 54.46% return, managed by Dinesh Balachandran.
- HSBC ELSS Tax Saver Fund-Reg(G): AUM of ₹3,494.40 crore, with a 50.61% return, managed by Abhishek Gupta.
Final Thoughts
This Prabhudas Liladhar Wealth Management analysis illuminates mutual funds that have performed exceptionally well across categories. Investors seeking to maximize returns while aligning with their risk tolerance and financial goals may find these insights invaluable. With a diverse selection of top-performing mutual funds, this guide can help investors make better-informed choices to optimize portfolio growth and economic health in 2024.
