2018 has remained volatile. Amidst this, what should be an investor’s approach towards investing?

In this blog, we seek to highlight 30 best funds that an investor should look out for in 2019.

Read on!

Best ELSS Fund
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Aditya Birla Sun Life Tax Relief 96 - Direct - Growth 2.4% 14.98% 16.9% 0.99% 1% Equity
(ELSS)
Moderately High
Invesco India Tax Plan - Direct - Growth 6.24% 16.5% 16.65% 0.98% 42% Equity
(ELSS)
Moderately High
Axis Long Term Equity Fund - Direct - Growth 7.9% 16.34% 17.55% 0.66% 40% Equity
(ELSS)
Moderately High
Best Large-cap funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
SBI Bluechip Fund - Direct - Growth 8.46% 13.66% 15.1% 1.09% 73% Equity
(Large Cap)
Moderately High
Aditya Birla Sun Life Frontline Equity Fund - Direct - Growth 8.31% 14.26% 12.74% 1.12% 28% Equity
(Large Cap)
Moderately High
ICICI Prudential Bluechip Equity Fund - Direct - Growth 9.75% 16.67% 13.26% 1.21% 98% Equity
(Large Cap)
Moderately High
Best Mid-cap Mutual Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Kotak Emerging Equity Scheme - Direct - Growth -0.46% 14.74% 19.87% 0.7% 19% Equity
(Mid Cap)
Moderately High
HDFC Mid-Cap Opportunities Fund - Direct - Growth -1.76% 14.7% 16.55% 1.06% 58% Equity
(Mid Cap)
Moderately High
L&T Midcap Fund - Direct - Growth -5% 16.71% 18.45% 0.92% 19% Equity
(Mid Cap)
High
Best Small Cap Mutual Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
HDFC Small Cap Fund - Direct - Growth -2.87% 20.12% 17.43% 0.77% 37% Equity
(Small Cap)
Moderately High
Reliance Small Cap Fund - Direct - Growth -6.11% 18.2% 20.92% 1.2% 146% Equity
(Small Cap)
Moderately High
SBI Small Cap Fund - Direct - Growth -7.25% 18.07% 25.77% 1.26% 64% Equity
(Small Cap)
Moderately High
Best Multi-cap Mutual Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Aditya Birla Sun Life Equity Fund - Direct - Growth 6.71% 16.94% 15.05% 1.03% 32% Equity
(Multi Cap)
Moderately High
SBI Magnum Multi Cap Fund - Direct - Growth 7.82% 16.25% 17.26% 1.14% 65% Equity
(Multi Cap)
Moderately High
Mirae Asset Large Cap Fund - Direct - Growth 14.61% 19.24% 16.77% 0.65% 14% Equity
(Large Cap)
Moderately High
Best Contra and Value Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Invesco India Contra Fund - Direct - Growth 6% 19.15% 17.87% 0.96% 64% Equity
(Contra)
Moderately High
L&T India Value Fund - Direct - Growth 2.62% 16.38% 17.29% 0.92% 25% Equity
(Value)
Moderately High
ICICI Prudential Value Discovery Fund - Direct - Growth 4.54% 11.25% 12.76% 1.27% 70% Equity
(Value)
Moderately High
Best Debt: Medium Duration Fund
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Franklin India Income Opportunities Fund - Direct - Growth 8.96% 9.33% 9.62% 0.86% NA Debt
(Medium Duration)
Moderate
SBI Magnum Medium Duration Fund - Direct - Growth 9.55% 9.86% 10.08% 0.74% NA Debt
(Medium Duration)
Moderate
Axis Strategic Bond Fund - Direct - Growth 7.26% 8.48% 9.62% 1.27% NA Debt
(Medium Duration)
Moderately High
Best Debt: Liquid Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
ICICI Prudential Liquid Fund - Direct - Growth 7.58% 7.17% 7.74% 0.15% NA Debt
(Liquid)
Low
Aditya Birla Sun Life Liquid Fund - Direct - Growth 7.64% 7.22% 7.79% 0.15% NA Debt
(Liquid)
Low
Axis Liquid Fund - Direct - Growth 7.63% 7.23% 7.77% 0.11% NA Debt
(Liquid)
Low
Best Debt: Gilt Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
ICICI Prudential Gilt Fund - Direct - Growth 4.19% 9.78% 5.98% 0.06% NA Debt
(Gilt)
Low
HDFC Gilt Fund - Direct - Growth 9.2% 7.43% 9.52% 0.55% NA Debt
(Gilt)
Moderate
SBI Magnum Constant Maturity Fund - Direct - Growth 10.15% 8.96% 10.57% 0.5% NA Debt
(Gilt)
Moderate
Best Hyrbid/Balanced Funds
Fund Name 1Y 3Y 5Y Expense Ratio Turnover Ratio Category Risk
Mirae Asset Hybrid - Equity Fund - Direct - Growth 14.29% 17.05% NA 0.34% 99% Hybrid
(Aggressive)
Moderately High
ICICI Prudential Equity & Debt Fund - Direct - Growth 10.06% 15.7% 14.46% 1.03% 200% Hybrid
(Aggressive)
Moderately High
SBI Equity Hybrid Fund - Direct - Growth 10.68% 14.24% 14.96% 1.08% 252% Hybrid
(Aggressive)
Moderately High

In this article

Best ELSS Funds to Invest

Equity Linked Savings Scheme (ELSS) is a mutual fund that invests in equity and equity-related securities. The funds in the segment provide tax benefits under section 80C of the Income Tax Act, and an individual can save up to Rs 1.5 lakh annually.

The funds in the category come with a three year lock-in period which is the lowest among any other investment instruments available in the market. Typically an investor should invest for 4-6 years to reap the benefits of wealth creation in ELSS.

Some of the best mutual funds in the category are:

1.Aditya Birla Sun Life Tax Relief 96 – Direct

The scheme seeks to generate long-term capital growth by investing over 80% of the corpus in equity while the remainder in debt and money market instrument.

15 Things to Know About ELSS Funds

The fund has been consistently performing since July 1999 by adopting a combination of both top-down & bottom-up approach for stock selection.

Minimum SIP amount: ₹500

Performance over the years

Duration 6-month 1-year 3-years 5-years
Returns -3.03 -0.37 14.79 21.06
Benchmark* -1.44 3.31 13.84 14.67
Category Average -3.48 -2.27 12.63 17.46

*NIFTY 200 TRI; Performance as on Dec 13, 2018

2.Invesco India Tax Plan – Direct Plan

The scheme seeks to generate long-term capital appreciation from a diversified portfolio of equity and equity-related securities.

The fund seeks to invest across market capitalization while implementing a bottom-up stock selection approach. The fund aims to have concentrated well-researched portfolio with around 20 – 50 stocks.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns -3.11 3.85 14.69 20.50
Benchmark* -1.44 3.31 13.84 14.67
Category Average -3.48 -2.27 12.63 17.46

*NIFTY 200 TRI; Performance as on Dec 13, 2018

3. Axis Long Term Equity Fund – Direct Plan

The fund seeks to generate regular long-term capital appreciation from a diversified portfolio of equity and equity-related securities. The scheme aims to invest in companies with strong growth & sustainable business model.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns -1.80 7.58 14.78 21.97
Benchmark* -1.44 3.31 13.84 14.67
Category Average -3.48 -2.27 12.63 17.46

*NIFTY 200 TRI; Performance as on Dec 13, 2018

Best Large-Cap Funds

Large-cap funds seek to invest in companies with a high market capitalization that are well established.

These companies are financially healthy, reputable, and trustworthy. These companies typically grow at a moderate yet sustainable rate.

Why Large-Cap Funds Perform Better Than Index Funds?

Ideal investment horizon for such funds is a minimum of four years. The best mutual fund scheme in this category are:

4.SBI Bluechip Fund – Direct Plan

The scheme seeks to provide investors with long-term growth in capital through active management of investments. The fund manager attempts to maintain a diversified basket of large-cap equity stocks.

SBI Bluechip vs Reliance Large Cap – which is the better fund?

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns -4.01 -0.89 11.65 17.39
Benchmark* -0.71 5.35 14.01 14.21
Category Average -1.60 2.89 12.69 14.28

*NIFTY 100 TRI; Performance as on Dec 13, 2018

5.Aditya Birla Sun Life Frontline Equity Fund

The scheme seeks long-term growth of capital, through a portfolio with a target allocation of 100% equity by aiming at being as diversified across various industries and sectors as its chosen benchmark index, Nifty 50.

5 Best Large Cap Funds to Invest in 2019: The Least Risky Equity Mutual Funds You Can Invest In

Minimum SIP amount: ₹500

Performance over the years:

Duration 3-month 1-year 3-years 5-years
Returns -4.29 0.88 13.02 16.39
Benchmark* -4.95 7.33 13.80 13.22
Category Average -5.00 2.89 12.69 14.28

*NIFTY 100 TRI; Performance as on Dec 13, 2018

6.ICICI Prudential Bluechip Fund – Direct Plan

The scheme seeks to generate long-term capital appreciation to investors by investing in a portfolio that predominantly comprises of equity and equity-related securities of large-cap companies.

companies.

Minimum SIP amount: ₹100

Performance over the years:

Duration 3-month 1-year 3-years 5-years
Returns -5.09 2.03 14.23 16.08
Benchmark* -5.12 5.35 14.01 14.21
Category Average -5.00 2.89 12.69 14.28

*NIFTY 100 TRI; Performance as on Dec 13, 2018

Best Mid-Cap Mutual Funds

Mid-cap funds invest in small companies of the equity market, falling between small and large cap companies and are 100-250 companies by market capitalization. Typically, the ideal investment horizon for such funds is around six years.

Top Mid-Cap Mutual Funds to Invest in 2019

The best mutual fund scheme in this category are:

7.Kotak Emerging Equity Scheme – Direct Plan

The scheme seeks to generate long-term capital appreciation from a portfolio of equity and equity-related securities, by investing predominantly in mid-sized companies.

Also, check out the best 10 mutual funds of 2019

Minimum SIP amount: ₹1000

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns -6.85 -7.11 14.45 25.65
Benchmark* -6.69 -10.36 12.31 19.55
Category Average -6.35 -7.79 11.77 22.12

*NIFTY Midcap 100 TRI; Performance as on Dec 13, 2018

8.HDFC Mid-Cap Opportunities Fund – Direct Plan

The scheme seeks to provide long-term capital appreciation/income by investing predominantly in Mid-Cap companies.

Minimum SIP amount: ₹500

Are high risk-high return funds your cup of tea?

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns -7.55 -7.03 13.88 23.04
Benchmark* -6.69 -10.36 12.31 19.55
Category Average -6.35 -7.79 11.77 22.12

*NIFTY Midcap 100 TRI; Performance as on Dec 13, 2018

9. L&T Midcap Fund – Direct Plan

To generate capital appreciation by investing primarily in midcap stocks. The Scheme will invest mostly in companies whose market capitalization is between the highest and the lowest constituent of the Nifty Free Float Midcap 100 Index.

L&T Mutual Fund: Renaming and Re-Categorization – The Fully Updated List

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -6.35 -8.10 15.52 26.53
Benchmark (%)* -6.69 -10.36 12.31 19.55
Category Average (%) -6.35 -7.79 11.77 22.12

*NIFTY Midcap 100 TRI; Performance as on Dec 13, 2018

Best Small Cap Mutual Fund

Small-cap funds invest in small-sized companies and tend to provide high returns. Given these are small-companies they also bear the highest risk among equity funds.

Ideally, an investor should remain invested for over seven years in these funds to reap benefits. This is when business typically goes through the entire cycle.

5 Best Small Cap Funds You Can Consider Investing in 2019

The best mutual fund scheme in this category are:

10.HDFC Small Cap Fund

The fund seeks to provide long-term capital appreciation by investing predominantly in small companies.

Minimum SIP amount: ₹500 

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -8.00 -1.1 18.7 22.7
Benchmark (%)* -15.72 -24.29 7.01 16.03

*NIFTY Smallcap 250 TRI; Performance as on Dec 13, 2018

HDFC Small Cap vs L&T Emerging Businesses Fund: Which one is the better small-cap fund?

11.Reliance Small Cap Fund – Direct Plan

The fund seeks to generate long-term capital appreciation by investing predominantly in equity and equity related instruments of small cap companies.

Minimum SIP amount: ₹100 

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -8.73 -10.96 15.88 30.08
Benchmark (%)* -15.72 -22.73 7.30 18.91
Category Average (%) -11.38 -14.30 11.74 23.79

*NIFTY Smallcap 250 TRI; Performance as on Dec 13, 2018

12.SBI Small Cap Fund – Direct Plan

The fund seeks to provide investors with opportunities for long-term wealth creation with the liquidity of an open-ended scheme by investing predominantly in a well-diversified basket of equity stocks of small-cap companies.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -7.34 -15.54 17.01 32.48
Benchmark (%)* -15.72 -22.73 7.30 18.91
Category Average (%) -11.38 -14.30 11.74 23.79

*NIFTY Smallcap 250 TRI; Performance as on Dec 13, 2018

5 Steps to Reduce Losses When Invested in Small Cap Funds

Multi-Cap Mutual Funds

Multi-cap funds as the name suggest investing in the stocks across market capitalization. These funds are typically used to minimize the risk and diversify the investment. In these funds, an investor should usually remain invested for over five years.

Best SIP Plans for High Growth in the Long Term – 2019

The best mutual fund scheme in this category are:

13.Aditya Birla Sun Life Equity Fund – Direct Plan

The fund seeks to generate long-term capital growth while providing regular income by investing in a portfolio of 90% equities and 10% debt and money market securities.

The fund adopts a top-down & bottom-up approach of investing, and a portion is also invested in IPOs, emerging sectors & other primary market offerings.

Minimum SIP amount: ₹1000

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -1.94 -0.11 16.20 20.82
Benchmark (%)* -1.44 3.31 13.84 14.67
Category Average (%) -3.40 -1.74 12.42 17.26

*NIFTY 200 TRI; Performance as on Dec 13, 2018

14. SBI Magnum Multicap Fund – Direct Plan

The fund seeks to invest in equities and equity related instruments of companies across market capitalization.

The fund aims to invest 50-90 percent of the corpus in large-cap stocks, 10-40 percent in mid-cap stocks and up to 10 percent in small-cap stocks.

SBI Mutual Fund Renaming and Re-Categorization: The Fully Updated List

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -3.51 -1.67 13.82 20.26
Benchmark (%)* -2.58 0.97 13.58 15.11
Category Average (%) -3.40 -1.74 12.42 17.26

*NIFTY 500 TRI; Performance as on Dec 13, 2018

15.Mirae Asset India Equity Fund – Direct Plan

The scheme seeks to provide long-term capital appreciation by investing in equity and equity related opportunities arising from Indian economic growth.

Minimum SIP amount: ₹1000

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 1.44 3.55 16.39 20.49
Benchmark (%)* -1.44 3.31 13.84 14.67
Category Average (%) -3.40 -1.74 12.42 17.26

*NIFTY 200 TRI; Performance as on Dec 13, 2018

Value Funds

The value funds are funds that seek to adopt value investing strategy and seeks to invest in stocks that are undervalued in price based on fundamental characteristics.

5 Best Value Funds to Invest in 2019

Ideal investment duration for these funds is over five to seven years. The best mutual fund scheme in this category are:

16.Invesco India Contra Fund – Direct Plan

The scheme seeks to generate capital appreciation by investing predominantly in Equity and Equity Related Instruments through contrarian investing.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -3.20 2.48 17.40 23.38
Benchmark (%)* -2.58 0.97 13.58 15.11
Category Average (%) -5.61 -4.52 12.66 18.84

*NIFTY 500 TRI; Performance as on Dec 13, 2018

17.L&T India Value Fund – Direct Plan

The fund seeks to generate long-term capital appreciation from a diversified portfolio of equity and equity-related securities with a higher focus on undervalued securities. The fund could also invest in foreign securities in international markets.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -5.74 -6.67 13.23 23.30
Benchmark (%)* -1.44 3.31 13.84 14.67
Category Average (%) -5.61 -4.52 12.66 18.84

*NIFTY 200 TRI; Performance as on Dec 13, 2018

18.ICICI Prudential Value Discovery Fund – Direct Plan

The scheme seeks to generate returns through a combination of dividend income and capital appreciation by investing primarily in a well-diversified portfolio of value stocks.

Minimum SIP amount: ₹100

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) -4.03 -0.44 9.26 19.89
Benchmark (%)* -2.58 0.97 13.58 15.11
Category Average (%) -5.61 -4.52 12.66 18.84

*NIFTY 500 TRI; Performance as on Dec 13, 2018

Debt: Medium Duration

Debt funds are comparatively safer when compared to equity funds. These funds invest in fixed income securities. Medium duration debt funds invest in securities that have a maturity greater than one year.

10 Best Debt Funds to Invest in 2019

Typically, the duration for such funds is three years.

19.Franklin India Income Opportunities Fund – Direct Plan

The fund seeks to generate regular income by investing in fixed income securities across the yield curve.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 5.00 7.99 8.98 10.01
Benchmark (%)* 4.82 6.16 6.85 7.91
Category Average (%) 3.97 5.87 8.35 9.37

*VR Bond; Performance as on Dec 13, 2018

20.SBI Magnum Medium Duration Fund – Direct Plan

The fund seeks to provide investors with an opportunity to generate attractive returns with a moderate degree of liquidity by investing in debt and money market instruments.

Also, the fund seeks to ensure that the Macaulay duration of the portfolio is between 3 years – 4 years.

Here’s How Investing in Debt Funds Can Protect You When the Market is Performing Poorly

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 4.62 6.52 10.33 11.08
Benchmark (%)* 4.82 6.16 6.85 7.91
Category Average (%) 3.97 5.87 8.35 9.37

*VR Bond; Performance as on Dec 13, 2018

21. Axis Strategic Bond Fund – Direct Plan

The fund seeks to generate optimal returns while maintaining liquidity through investments in debt and money market instruments.

10 Debt Funds with No Exit Load: Take Your Money out Whenever You Wish To

Minimum SIP amount: ₹1000

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 4.57 6.81 9.24 10.48
Benchmark (%)* 4.82 6.16 6.85 7.91
Category Average (%) 3.97 5.87 8.35 9.37

*VR Bond; Performance as on Dec 13, 2018

Debt: Liquid Funds

The liquid funds are a type of debt funds that invest in liquid instruments that are highly safe.

10 Best Liquid Funds to Invest in 2019

The instruments include treasury bills, commercials papers, etc. These funds are an excellent alternative to the bank savings account and are generally used for cash management purpose. The invest horizon is usually less than one year.

22.ICICI Prudential Liquid Fund-Direct Plan

The scheme aims to generate steady returns from a portfolio of quality debt instruments that are liquid in nature.

Is Your Money Lying Idle in a Bank? Invest in These 5 Liquid Funds

Minimum SIP amount: 500

Performance over the years:

Duration 3-month 1-year 3-years 5-years
Returns (%) 1.87 7.42 7.29 7.9
Benchmark (%)* 1.18 4.12 4.31 4.80

23. Aditya Birla Sun Life Liquid Fund – Direct Plan

The scheme seeks to provide high liquidity and safety with reasonable returns through investments in debt and money market instruments.

5 Reasons Why Debt Funds Are Better Than Fixed Deposits

Minimum SIP amount: Not supported

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 3.77 7.48 7.35 7.97
Benchmark (%)* 2.15 4.08 4.27 4.79
Category Average (%) 3.37 6.98 7.06 7.75

*CCIL T Bill Liquidity Weight; Performance as on Dec 13, 2018

24.Axis Liquid Fund – Direct Plan

The fund seeks to generate a reasonable return commensurate with low risk and a high degree of liquidity from a portfolio of money market and high-quality debt securities.

Minimum SIP amount: Not supported

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 3.78 7.47 7.34 7.93
Benchmark (%)* 2.15 4.08 4.27 4.79
Category Average (%) 3.37 6.98 7.06 7.75

*CCIL T Bill Liquidity Weight; Performance as on Dec 13, 2018

Debt: Gilt Funds

Gilt funds are funds where an asset management company invests in a basket of government securities.

These funds are typically very safe, and a fund house makes money by active management aimed at controlling interest rate risk — ideal investment duration for these funds: 5-7 years. Some of the good funds in the category are –

25.ICICI Prudential Gilt Fund – Direct Plan

The fund seeks to generate steady and consistent returns from a basket of government securities across various maturities through proactive fund management aimed at controlling interest rate risk.

The plan seeks to invest gilt including T-Bills with medium to long maturity with average portfolio maturity not exceeding eight years.

Minimum SIP amount: ₹1000

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 5.35 5.90 9.25 10.83
Benchmark (%)* 7.62 6.28 8.19 10.10
Category Average (%) 6.03 5.24 8.35 10.04

* CCIL All Sovereign Bond – TRI; Performance as on Dec 14, 2018

26. HDFC Gilt Fund

The fund seeks to generate optimal credit risk-free returns by investing in sovereign securities, issued by the Central and/or the State Governments.

Minimum SIP amount: ₹100

Performance over the years:

Duration 3-month 1-year 3-years 5-years
Returns (%) 3.98 4.56 8.02 10.13
Benchmark (%)* 7.34 6.28 8.19 10.10

* CCIL All Sovereign Bond – TRI; Performance as on Dec 14, 2018

27.SBI Magnum Gilt Fund – Direct Plan

The fund seeks to generate returns by investing in government securities. It aims to maintain an average maturity of more than three years.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 5.39 4.48 8.86 10.94
Benchmark (%)* 7.62 6.28 8.19 10.10
Category Average (%) 6.03 5.24 8.35 10.04

* CCIL All Sovereign Bond – TRI; Performance as on Dec 14, 2018

Hybrid/Balanced Fund

Hybrid funds are funds where an asset management company invests in both debt and equity.

5 Best Hybrid Funds to Invest in 2019

These well-diversified funds seek to provide a perfect balance between risk and returns on investment. We believe the ideal investment duration for these funds is 2-4 years.

Some of the good funds in the category are –

28. Mirae Asset Hybrid Equity Fund-Direct Plan

The fund seeks to generate chttps://groww.in/mutual-funds/mirae-asset-prudence-fund-direct-growthapital appreciation with current income by investing in a portfolio comprising of equity & equity related instruments and debt and money market instruments.

Why do some investors prefer hybrid funds over equity?

Minimum SIP amount: ₹1000

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 2.88 4.51 14.98 NA
Benchmark (%)* 1.26 6.71 12.44 NA
Category Average (%) -1.11 0.44 11.54 NA

* VR Balanced TRI; Performance as on Dec 14, 2018

29.ICICI Prudential Equity & Debt Fund-Direct Plan

The fund seeks to generate long-term capital appreciation and income by investing in equity and related securities as well as fixed income and money market securities.

The equity portion is 60-80 percent with a minimum of 51 percent, and remaining is debt with a minimum of 20 percent.

Minimum SIP amount: ₹100

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 0.50 0.16 13.71 17.46
Benchmark (%)* 1.26 6.71 12.44 12.26
Category Average (%) -1.11 0.44 11.54 15.26

* VR Balanced TRI; Performance as on Dec 14, 2018

30.SBI Equity Hybrid Fund-Direct Plan

The scheme seeks to provide investors with long-term capital appreciation along with the liquidity by investing in a portfolio of debt and equity.

The fund aims to invest in a diversified portfolio of equities comprising of high growth companies while balancing the risk with fixed income securities that are of a high rating.

Minimum SIP amount: ₹500

Performance over the years:

Duration 6-month 1-year 3-years 5-years
Returns (%) 0.61 2.49 11.83 16.82
Benchmark (%)* 1.26 6.71 12.44 12.26
Category Average (%) -1.11 0.44 11.54 15.26

* VR Balanced TRI; Performance as on Dec 14, 2018

The Things to Remember

Following are points that you should remember before investing in a mutual fund –

1.Higher rates

An investor shouldn’t just run behind the funds that offer high returns. Duration, objective, Risk appetite remains the key parameters that should be looked at in addition to the returns.

2.Systematic Investment Plan

Systematic Investment Plan (SIP) is the best option of investing in equity funds. The plan offers rupee cost averaging ana d shields you from market timing. Follow Grow blog to get details on SIP.

3.Opt for a Direct Plan

Direct plan offers higher returns as compared to the regular plan of a mutual fund. This difference is because the fund bypasses the distributor thereby saving on the commission that is otherwise paid to the distributor.

Direct vs Regular Mutual Fund: 5 Reasons Why Direct Funds Will Make You Wealthier

4.Timely Review of the Portfolio

Investment characteristics change with time, and so does your requirement. Thus, it is recommended to get a thorough review of the investments done every quarter.

Happy Investing!

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