The domestic market crashed big time in the last few months and is further falling.

In the last 3 months, most stocks and mutual funds have shown negative signs in this bear market.

But remember, markets never give an indication before bouncing back! Those who continued their SIPs through mutual funds during market falls benefited the most. 

So, take it as an opportunity for your long-term financial planning and stay ahead of others.

We have filtered the top 10 mutual funds for you to bet on in 2019 in various categories like equity, debt and hybrid.

what are mutual funds?

Mutual funds have become an incredibly popular option for a wide variety of investors. Many individuals want to invest in mutual funds these days.

A mutual fund is an investment instrument, which is basically a collection of stocks and/or bonds, managed by professionals of an asset management company.

Investors put their money in different types of mutual fund units depending on their risk appetite and duration of investment. These instruments are well-diversified, low-cost and a tax efficient way of making your savings grow.

Read more: Mutual Funds: Things you should know as a beginner

Why should you invest in Mutual Funds?

Here are the major advantages of investing in mutual funds.

1. Risk diversification

The biggest advantage of investing in mutual funds versus stocks is risk diversification.

Mutual funds help investors diversify unsystematic risks by investing in a diversified portfolio of stocks across different sectors and different investment instruments.

2. Smaller capital outlay

Investors require a large capital outlay to build a diversified portfolio of stocks.

On the other hand, since mutual funds work on the basis of pooling in money, mutual fund investors can have the ownership of a diversified portfolio of stocks with a much smaller capital outlay.

Investors can buy units of a diversified equity fund with an investment as low as Rs. 5,000 only (or even lower for some schemes).

Check out how the general elections of 2019  affect the financial market

3. Investment expertise

A lot of people follow stock markets and wish to invest in shares offered by various companies, but they fear that they don’t have enough knowledge or don’t have sufficient time to keep track and follow the latest buzz about the market, which could lead them to take wrong decisions.

Mutual fund is the perfect solution for them, as investing directly in the equity market is risky.

4. Variety of products

Mutual funds offer investors a variety of products to suit their risk profiles and investment objectives.

Apart from equity funds, there are also balanced funds, monthly income plans, income funds and liquid funds to suit different investment requirements.

5. Variety of modes of investments

Mutual funds also offer investors flexibility in terms of modes of investment and withdrawal.

Investors can opt for different investment modes like lump sum (or one time), systematic investment plans, systematic transfer plans (from other mutual fund schemes), systematic withdrawal plans, switches from one scheme to another etc.

You can invest in the dividend option, if you want regular income from your investment.

Read more: Direct Plans Vs Regular Plans in Mutual Funds: Which Plan is Better for You?

No other investment product offers such wide array of investment modes.

6. Disciplined investing

Systematic investment plans (SIPs) in mutual funds help investors to maintain a disciplined approach to savings and investment.

Many investors fail to build a substantial investment corpus because they are not able to invest in a disciplined way.

Frequent trading often leads the investor to incur losses. Mutual funds encourage investors to invest over a long time horizon, which is essential to creating wealth.

Read more: 13 Things You Need To Know About SIP (Systematic Investment Plans)

By investing through SIPs in a mechanical way, investors can stay disciplined, which is critical to achieving their financial objectives.

Top 10 mutual fund for 2019

Here is the list of to mutual fund schemes you can invest in 2019 from equity, debt and hybrid category.

Equity Category

These schemes invest most of the money gathered from investors into the stock market.

The risk level in equity mutual funds are quite high and investors are advised to invest in these funds as per their risk appetite.

1. Reliance Large Cap Fund – Direct – Growth

This is one of the most popular large cap mutual fund in the market right now and has given 14.4% return since its launch.

Ideal investment duration for this funds: 4 years and above.

Key Information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹32
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹10,898 Cr
Riskometer Moderately High
Minimum SIP ₹100
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 100 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.28%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

reliance large cap
Fund Name 1Y 3Y 5Y Category Risk
Reliance Large Cap Fund - Direct - Growth 2.16% 13.12% 19.67% Equity
(Large Cap)
Moderately High

Investment objective

The scheme aims to generate long term capital growth by investing in a diversified portfolio predominantly consisting of equity & equity related instruments of large cap companies.

Large-cap funds invest in large cap companies which are big, well-established companies of the equity market. These companies are strong, reputable, trustworthy, and generally are top 100 companies in a market by market cap.

Holding Analysis

About Fund Manager

Sailesh Raj Bhan: Since Jan 2013

Education

Mr. Bhan is an MBA (Finance) and CFA.

Experience

Mr. Sailesh Raj Bhan has about 19 years experience in equity research and fund management, with over 10 years at Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management Limited).

In addition, for over 9 years, he has been managing two specialized sector funds – Reliance Pharma Sector Fund (the largest pharma sector fund in India) and Reliance Media and Entertainment Fund.

2. Axis Midcap Fund – Direct – Growth

This is one of the most popular mid cap mutual fund in the market right now and has given 17.00% return since its launch.

Ideal investment duration for this funds: 6 years and above.

Key Information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹34.3
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹1,562 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY 50 Total Return since its launch.
Age of the fund 5 years old
Expense Ratio 1.36%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

Axis midcap fund
Fund Name 1Y 3Y 5Y Category Risk
Axis Midcap Fund - Direct - Growth 5.62% 12.75% 23.24% Equity
(Mid Cap)
Moderately High

Investment objective

This scheme seeks to achieve long-term capital appreciation by investing predominantly in equity & equity related instruments of mid cap companies.

Mid-cap funds invest in compact companies of the equity market, falling between small and large cap companies and are 100-250 companies by market capitalization.

Holding Analysis

About Fund Manager

Shreyash Devalkar: since Nov 2016

Education

Mr. Devalkar is a B.Tech from UDCT Mumbai and has completed his PGDM (Management) from JBIMS Mumbai University

Experience

Prior to joining Axis Mutual Fund he has worked with BNP Paribas Mutual Fund, IDFC Capital, JP Morgan Services India and Calyon Bank.

3. HDFC Small Cap Fund – Direct – Growth

This is one of the most popular small cap mutual fund in the market right now and has given 18.38% return since its launch.

Ideal investment duration for this funds: 7 years and above.

Key Information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹42.6
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹4,948 Cr
Riskometer Moderately High
Minimum SIP ₹500
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark NIFTY Small-cap 100 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 0.54%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

HDFC Small Cap Fund
Fund Name 1Y 3Y 5Y Category Risk
HDFC Small Cap Fund - Direct - Growth 1.38% 18.72% NA Equity
(Small Cap)
Moderately High

Investment objective

This scheme seeks to provide long-term capital appreciation /income by investing predominantly in small-cap companies.

Small-cap funds invest in for small companies of the stock market and are all the companies apart from large and mid-cap companies in a market. These funds give high returns but are highly risky mutual funds.

Holding Analysis

About Fund Manager

Chirag Setalvad: since Jun 2014

Education

Mr. Setalvad is a B. Sc and MBA from University of North Carolina.

Experience

Prior to joining HDFC AMC he has worked with New Vernon Advisory Services Ltd., HDFC AMC and ING Barings N.V.

Rakesh Vyas: since Jun 2014

Education

Mr. Vyas is a B.E (Electrical) and PGDM (Business Management) from XLRI Jamshedpur.

Experience

Prior to joining HDFC Mutual Fund in 2009 he has worked with Lehman Brothers and Nomura.

4. Mirae Asset India Equity Fund – Direct – Growth

This is one of the most popular multi cap mutual fund in the market right now and has given 16.9% return since its launch.

Ideal investment duration for this funds: 5 years and above.

Key Information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹47.1
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹8,755 Cr
Riskometer Moderately High
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE 200 TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.32%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

mirrae asset india equity fund
Fund Name 1Y 3Y 5Y Category Risk
Mirae Asset India Equity Fund - Direct - Growth 1.7% 15.4% 20.78% Equity
(Multi Cap)
Moderately High

Investment objective

The scheme aims to maximize long-term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equity and equity related securities.

In these kind of funds, capital is invested in companies across different sectors and of different capitalization. Multi-cap funds are used to minimize the risk and diversify the investment.

Holding Analysis

About Fund Manager

Harshad Borawake: since May 2017

Education

Mr. Borawake is MBA(Finance) & B.E.(Polymers)

Experience

Prior to joining Mirae Asset Mutual Fund, he has worked with Motilal Oswal Securities Ltd. as Vice President and Capmetrics & Risk Solutions Private Ltd. as Research Analyst – Equity.

Neelesh Surana: since Jan 2013

Education

Mr. Surana is B.E (Mechanical) and MBA in Finance.

Experience

Prior to joining Mirae AMC he has worked with ASK Investment Managers Pvt Ltd.

5. ICICI Prudential Technology Fund – Direct – Growth

Technology is the best sector to bet on in the current market scenario and for the future.

This is the best fund in technology sector, which has given 21% return since its launch.

Ideal investment duration for these funds: Variable* (differs with the sector chosen for investment)

Key information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹59
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹495 Cr
Riskometer High
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark S&P BSE IT TRI since its launch.
Age of the fund 5 years old
Expense Ratio 1.74%
Exit Load If redeemed bet. 0 Year to 1 Year; Exit Load is 1%;
Type  Open Ended

Performance over the years

ICICI Prudential Technology Fund
Fund Name 1Y 3Y 5Y Category Risk
ICICI Prudential Technology Fund - Direct - Growth 32.89% 12.83% 16.1% Equity
(Sectoral/Thematic)
High

Investment objective

This scheme seeks long-term capital appreciation by investing in equity and equity-related securities of technology and technology dependent companies.

A sector fund is a type of mutual fund which invests in stocks of companies that operates in a particular industry or sector of the economy. Returns and risk associated with this fund depend on the sector of investment.

The best mutual fund in case of sector funds is very hard to determine. This is so because each and every sector is different. Therefore, each of them behaves differently.

Holding Analysis

About Fund Manager

Ashwin Jain: since Oct 2016

Education 

Mr. Jain is a B.E. and PGDM.

Experience

Prior to joining ICICI Prudential Asset Management Co. Ltd. in 2010 he has worked with HCL Technologies, Irevana and Merill Lynch.

Priyanka Khandelwal since Jun 2017

Education

Ms. Khandelwal is Chartered Accountant and Company Secretary

Experience

She has been Working with ICICI Prudential Mutual Fund Since October 2014.

Sankaran Naren: since Jul 2017

Education

Mr. Naren is a B.Tech from IIT Chennai and MBA (Finance)from IIM Kolkata.

Experience

Prior to joining ICICI Prudential AMC he has worked with Refco Sify Securities India Pvt. Ltd., HDFC Securities Ltd. and Yoha Securities.

Debt Category

Debt mutual funds are associated with much lower risk. The best debt mutual funds can give you more consistent returns when compared to equity mutual funds.

Debt funds are low-risk mutual funds which invest most of the money gathered from investors into fixed income instruments like corporate bonds, government bonds (both state and central), bonds issued by banks, certificate of deposit, treasury bills etc.

6. ICICI Prudential Liquid Fund – Direct – Growth

This is the best liquid fund and invests in debt and money market securities with maturity of up to 91 days only.

Ideal investment duration: Few days – Few weeks

Key information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹267
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹47,395 Cr
Riskometer Moderately Low
Minimum SIP ₹500
Minimum SWP Not Supported
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.15%
Exit Load NIL
Type  Open Ended

Performance over the years

ICICI Prudential Liquid Fund – Direct – Growth
Fund Name 1Y 3Y 5Y Category Risk
ICICI Prudential Liquid Fund - Direct - Growth 7.29% 7.28% 7.93% Debt
(Liquid)
Low

Investment objective

The scheme seeks reasonable returns, commensurate with low risk levels while providing a high level of liquidity.

Approximately 80% of the corpus would be invested in money market securities, while the balance would be placed in high quality debt instruments.

Holding Analysis

 

About Fund Manager

Rahul Goswami: since Jan 2013

Education

Mr. Goswami is a B. Sc (Mathematics and MBA (Finance)

Experience

Prior to joining ICICI Prudential AMC he has worked with UTI Bank Ltd. and Franklin Templeton Asset Management Pvt. Ltd.

Rohan Maru: since Sep 2013

Education

Mr. Maru is M.Com and MBA in Finance.

Experience: Prior to this, he worked with Kotak Mahindra AMC as Fixed Income Dealer and Integreon Managed Solutions as a Research Associate.

7. Franklin India Ultra Short Bond Fund – Direct – Growth

This fund invests in debt & money market instruments, such that the duration of the portfolio is between 3 – 6 months.

Ideal investment duration: 3 to 6 months

Key information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹25.2
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹13,240 Cr
Riskometer Low
Minimum SIP ₹1,000
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.34%
Exit Load NIL
Type  Open Ended

Performance over the years

Duration Returns
1 year  7.7%
3 years  8.8%
5 years  9.3%

Investment objective

The scheme aims to enhance income consistent with a high level of liquidity, through a judicious portfolio mix of money market and debt instruments.

Holding Analysis

 

About Fund Manager

Pallab Roy: since Jan 2013
Education
Mr. Roy is a M.Com and MBA (Finance).
Experience

He has been associated with Franklin Templeton Investments since 2001.

 

Sachin Padwal-Desai: since Jan 2013

Education

Mr. Desai is a B.E and PGDM from IIM Bangalore.

Experience

Prior to joining Sundaram Mutual Fund he has worked with ICICI Bank, Infosys Technologies and Thermax.

This is the best low duration fund and invests in debt & money market instruments, such that the duration of the portfolio is between 6-12 months.

Ideal investment duration: 3 to 6 months

Key information

Launch Date 1 January 2013
NAV (23 Oct2018) ₹21.1
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹6,601 Cr
Riskometer Moderately Low
Minimum SIP ₹500
Minimum SWP ₹1,000
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Short-Term Bond  since its launch.
Age of the fund 5 years old
Expense Ratio 0.42%
Exit Load If redeemed bet. 0 Months to 3 Months; Exit Load is 0.5%;
Type  Open Ended

Performance over the years

Franklin India Ultra short bond fund
Fund Name 1Y 3Y 5Y Category Risk
Franklin India Ultra Short Bond Fund - Direct - Growth 7.87% 8.81% 9.31% Debt
(Ultra Short Duration)
Moderate

Investment objective

The scheme seeks to earn regular income for investors through investment primarily highly rated debt securities in debt securities.

Holding Analysis

About Fund Manager

Kunal Agrawal: since April 2014

Education

Mr. Agrawal is a B.Tech from IIT Delhi and PGDM from IIM C.

Experience

Prior to joining Franklin India AMC he has worked with Credits- Portfolio Management, CRISIL Ltd., IBM Ltd. & Infosys Ltd.

Santosh Kamath: since April 2014

Education

Mr. Kamath is a B.E ( Electronics ) from REC Bhopal and PGDM (Management) from XLRI Jamshedpur.

Experience

Prior to joining Franklin Templeton Investments he has worked with ING Vysya AMC, Zurich Asset Management, SBI Mutual, CRISIL and Jardine Fleming Asset Management.

9. L&T Money Market Fund – Direct – Growth

This fund invests in money market instruments that have a maturity of up to 1 year.

Ideal investment duration: 12 months

Key information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹18.2
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹1,325 Cr
Riskometer Moderately Low
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Liquid since its launch.
Age of the fund 5 years old
Expense Ratio 0.28%
Exit Load NIL
Type  Open Ended

Performance over the years

L&T Money market fund
Fund Name 1Y 3Y 5Y Category Risk
L&T Money Market Fund - Direct - Growth 7.37% 8.46% 8.63% Debt
(Money Market)
Moderately Low

Investment objective

The scheme seeks to generate regular income through investment in a portfolio comprising substantially of money market instruments.

Holding Analysis

About Fund Manager
Jalpan Shah: since Apr 2017
Education
Mr. Shah is a B.E. (Mechanical) and holds a PGDM.
Experience
 

Prior to joining L&T, he was associated with FIL Fund Management Private Limited (Dec 2007-Nov 2012), Lotus India Asset Management Company Private Limited (Sep 2007-Nov 2007) as a Research Analyst, UTI Asset Management Company Private Limited (July 2006-Aug 2007) as a Research Analyst and UTI Asset Management Company Private Limited(May 2004-June 2006) as a Sales & Marketing Manager.

Vikas Garg: since April 2017

Education

Mr. Garg is CFA MBA Finance, B-Tech and M- Tech

Experience

Prior to joining L&T Mutual Fund, he has worked with Fidelity International as a Credit analyst and Research Associate- Credit, ICRA as Sr Analyst and Indian Oil Corporation Ltd as Project manager

Hybrid Category

Hybrid funds are popular among investors because they moderate the returns. They invest in both equity and debt and are good for investors who want to invest ideally for 2-3 years. These funds are moderately risky.

10.ICICI Prudential Equity & Debt Fund – Direct – Growth

A popular hybrid fun, this fund has given a return of 14.08% since its launch.

Ideal investment duration: 3+ years

Key information

Launch Date 1 January 2013
NAV (23 Oct 2018) ₹₹130.2 (As of 26th October)
Plan Type Direct
Rating by Groww 5 Star
AUM (Fund Size) ₹27,342 Cr
Riskometer Moderately high
Minimum SIP ₹1,000
Minimum SWP ₹500
Performance w.r.t its Benchmark Has consistently outperformed its benchmark CRISIL Hybrid 35+65 Aggressive since its launch.
Age of the fund 5 years old
Expense Ratio 1.05%
Exit Load 1% if redeemed between 0-1 year
Type  Open Ended

Holding Analysis

About Fund Manager

S Naren

Education

Sankaran Naren is an alumnus of IIM-Kolkata, where he pursued his MBA.

Experience

Previously, Naren has worked for various financial companies like Refco Sify Securities India and HDFC Securities. He currently manages equity portfolios at ICICI Prudential.

Manish Banthia

Education

Mr.Banthia completed his B.Com and MBA and. He is also a certified chartered accountant.

Experience

Banthia worked at the product department of ICICI AMC and previously worked with Aditya Birla Nuvo Ltd and Aditya Birla Management Corporation Limited.

Atul Patel

Education

Mr. Patel holds a BCom degree and is a qualified chartered accountant.

Experience

Atul Patel has previously been a performance analyst and has been working as a fund manager in  ICICI Prudential Asset Management Company Limited since August 21, 2013.

Why are these funds our top pick?

Mutual Fund schemes in India have grown over the years. As a result, the best performing mutual funds in the market keep on changing.

We have filtered these the top-performing mutual funds based on these 3 parameters.

1.These are the best mutual fund schemes considering all categories. so, investors can choose as per his/her risk appetite.

2.All these funds have a  5 star rating by most of financial institutes in India.

3.Funds that have performed well in the last 1 year have been picked up here.

Conclusion

Mutual fund is one the best investment instrument.

Even though the Indian market is in red as of now, stay ahead of other by taking a bet on this prudent investment option.

Those who continue their SIPs during market falls benefit the most. Markets never give an indication before bouncing back!

There are a lot of factors you should look into before selecting a mutual fund scheme which will match your investment goals.

Investing in mutual funds online is very simple and paperless. Simply log in to your Groww account, choose a fund, and invest using net banking – exactly like you would when shopping online.

Happy Investing!

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