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Best Mutual Funds to Invest in 2022

19 July 2022

Mutual funds are investment vehicles that allow you to pool your money with other investors and invest in a variety of stocks, bonds, and other securities. Mutual funds are professionally managed, can be purchased through a broker or advisor, and come with low fees.

Mutual funds are one of the most popular investment vehicles among investors because they offer the opportunity to diversify across different asset classes without having to manage individual investments. In addition, mutual funds may provide access to investments that would otherwise not be available to an individual investor.

Best Mutual Funds in 2022

Mutual funds are one of the most popular investment avenues in India. Several factors attract people to mutual funds. They provide a wide range of investment options and they have a low expense ratio compared to other investment options. They also offer liquidity, which is not available with many other investments.

Whether you are just starting out as an investor or you have been investing for years, there are some mutual funds that you should consider investing in. Here are some of the best mutual funds that you should consider investing in 2022:

S.No.

Fund Name

1.

Axis Bluechip Fund

2.

Mirae Asset Large Cap Fund

3.

Parag Parikh Long Term Equity Fund

4.

UTI Flexi Cap Fund

5.

Axis Midcap Fund

6.

Kotak Emerging Equity Fund

7.

Axis Small Cap Fund

8.

SBI Small Cap Fund


Factors To Consider Before Investing in Mutual Funds

There are many factors to consider before investing in mutual funds in 2022 in India. Your financial goals, investment horizon, and risk tolerance are just some of the considerations you'll need to make when deciding how and where to invest your money.

  • Your Financial Goals

You should always start with identifying your financial goals first before making any investment decision. This will help you decide whether you need debt or equity-oriented funds for meeting your goals. You can use tools like Google spreadsheets or Excel sheets to create multiple scenarios based on different potential outcomes so that you can choose the best possible option for yourself from among them based on your risk tolerance level as well as other factors like time horizon and liquidity requirements etc.

  • Your Investment Horizon

How long do you plan on holding onto your investment? Mutual fund investments fall into one of two categories: short-term (less than five years) or long-term (more than five years). If you are investing for the short term, look for funds that invest in stocks and bonds with higher risk but higher potential return; if you're investing for the long term, look for low-risk investments with smaller returns but steady growth over time.

  • Risk Tolerance

You should also consider your risk tolerance before investing in mutual funds. This will help you to understand what kind of returns you can expect from the market.

The best time to invest in mutual funds is when the market is performing well and has high growth potential. You should also look at how much volatility there is in the market before investing in mutual funds.

  • Fund Performance

Mutual funds are always trying to outperform the market. If they can't do that, it means they're not doing their job right. You should make sure that any mutual fund you choose has had consistently good returns over the past few years—at least five years' worth of data is best.

  • Expense Ratio

The expense ratio is the amount of money that goes towards paying for the fund manager's salary, advertising costs, and other expenses associated with running a fund. Ideally, this number should be below 1%, but if it's higher than 1% and the fund has been consistently making good returns, then it might be worth it for you to pick up some extra points in your account by paying more for fees upfront rather than later on down the line when those fees would have eaten into your gains anyway (or even worse—caused losses).

  • Fund Manager Experience

The longer a fund manager has been managing funds successfully, the better. This will give them more experience handling situations like downturns in markets.

A seasoned fund manager will have more experience with investing in general, as well as specific market conditions such as bull or bear markets. This experience can help you navigate through tough times and take advantage of good times when they come along.

  • Taxes

Finally, taxes must be taken into consideration when choosing mutual funds; some funds are taxable while others are not.

Top Mutual Funds in India 2022: Performance Overview

1) Axis Bluechip Fund

The Axis Bluechip Fund is a diversified equity fund that invests in stocks of companies across sectors. The fund has been managed by the Axis Mutual Fund since its inception in 2010.

The fund has a long-term track record of generating returns for investors and is one of the most popular funds in India. The fund invests in stocks across sectors and has a long-term track record of generating returns for investors.

2) Mirae Asset Large Cap Fund

The Mirae Asset Large Cap Fund is a mutual fund that invests in large-cap stocks. It belongs to Mirae Asset Mutual Fund House. The fund was established on April 4, 2008, and has been managed by the company since then. It is benchmarked against the NIFTY 100 Total Return Index.

The fund's investment objective is to achieve long-term capital appreciation through investments in stocks with high growth potential.

3) Parag Parikh Long Term Equity Fund

Parag Parikh Long Term Equity Fund is an Open-ended Flexi Cap Equity scheme that invests in stocks and equity-related securities. The fund invests in companies with a long-term perspective.

The fund has been under the fund house PPFAS Mutual Fund since its inception in 2013. It is benchmarked against the NIFTY 500 Total Return Index.

4) UTI Flexi Cap Fund

UTI Flexi Cap Fund is a mutual fund that invests in equity and equity-related securities. It has a flexible investment strategy and can invest in any sector of the Indian economy.

The UTI Flexi Cap Fund is an open-ended equity scheme and can invest in stocks, bonds, money market instruments, etc. The fund invests primarily in equities but also has exposure to other asset classes such as fixed-income securities and money market instruments.

5) Axis Midcap Fund

The Axis Midcap Fund is an Open-ended Mid Cap Equity scheme benchmarked against S&P BSE 150 MidCap Total Return Index. The fund has been managed by the Axis Mutual Fund since its inception in 2011. The fund currently has a net asset value of Rs 61.1900 and has assets under Management worth Rs 17678.92 crore.

Conclusion

Mutual funds have been a lucrative investment option for Indian investors over the last decade. They offer a simple, low-cost way to diversify your portfolio, and they can be used as a way to grow your money while keeping risk levels manageable.

They are an attractive option because they offer access to a wide range of assets that may be difficult or expensive to purchase individually. This includes stocks, bonds, gold, real estate, and more. By pooling money from many investors, mutual funds allow you to get exposure to these assets at lower prices than if you were buying them individually.

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

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Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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