Mutual funds have become an incredibly popular option for a wide variety of investors. This is primarily due to the automatic diversification they offer, as well as the advantages of professional management, liquidity and customizability.
The best thing about mutual funds is that they enable you to invest with very small amounts. Many people ask what is the minimum amount to invest in mutual funds? There is no other way you can invest with reasonable diversification with an amount as low as ₹ 100 and even ₹ 50. SIP ( Systematic Investment Plans) of a lot of mutual funds allow min investment with just ₹ 100 and ₹ 500.
Stock market is broadly divided on basis of market capitalization as among large cap, mid cap, and small cap. Market capitalization is calculated by multiplication of the number of outstanding shares company offered with the current market price of one share.
Lets see the most popular mutual funds investing in different market capitalization and sector they are betting in.
Large-cap are big, well-established companies of the stock market. These companies are strong, reputable and trustworthy. Large-cap companies generally are top 100 companies in a market. There is no consensus on the capitalization as such.
Funds investing in equities of large-cap are Large Cap Mutual Funds. These are the most popular mutual funds in Large Cap category :
This is a Large Cap Equity Oriented Mutual Fund launched in February 14, 2006. It is a fund with moderately high risk and have given a return of 11.69 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 17.20 % |
3 years | 9.89 % |
5 years | 18.57 % |
Here’s the key features of SBI Bluechip Fund :
This fund is one of the most popular large cap fund available in market. But, returns from this large cap fund is lesser as compared to other popular fund in this category.
So, if you are thinking of investing a lump sum amount or for longer duration, this large cap fund is just the perfect choice for you. Large cap funds may give you good returns on your lump sum investment over the long term. The companies in the large cap funds portfolio are steady compounders and pay dividend on regular basis.
This is a Large Cap Equity Oriented Mutual Fund launched in April 04, 2008. It is a fund with moderately high risk and have given a return of 16.88 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 22.13 % |
3 years | 12.32 % |
5 years | 21.54 % |
Here’s the key features of Mirae Asset India Opportunities Fund :
This fund is one of the best large cap fund available in market. Associate with this fund, if you are thinking of investing a lump sum amount or for longer duration. Large cap funds may give you good returns on your lump sum investment over the long term. The companies in the large cap funds portfolio are steady compounders and pay dividend on regular basis.
This is a Large Cap Equity Oriented Mutual Fund launched in August 08, 2007. It is a fund with moderately high risk and have given a return of 11.89 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 22.94 % |
3 years | 10.41 % |
5 years | 18.77 % |
Here’s the key features of Reliance Top 200 Fund :
This fund is one of the best large cap fund available in market. So, if you are thinking of investing a lump sum amount or for longer duration, this large cap fund is just the perfect choice for you. Large cap funds may give you good returns on your lump sum investment over the long term. The companies in the large cap funds portfolio are steady compounders and pay dividend on regular basis.
Mid Cap Fund Category
Mid cap are compact companies of the equity market, falling somewhere between small and large cap companies and are 100-250 companies in a market after large cap companies. Stocks of mid cap companies are riskier then large cap but not as risky investment instrument as small cap
Funds investing in equities of mid cap are Mid Cap Mutual Funds. These are the most popular mutual funds in Mid Cap category :
This is a Mid Cap Equity Oriented Mutual Fund launched in May 31, 2007. It is a fund with high risk and have given a return of 14.24 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 28.93 % |
3 years | 19.77 % |
5 years | 28.30 % |
Here’s the key features of Aditya Birla Sun Life Small & Midcap Fund :
This is one the best performing mid cap fund available in market for 2018. Mid cap fund are in high demand, because the share price of large caps has increased substantially. That results in the prices of the mid-caps, climbing upwards steadily and made them an attractive investment category with high growth potential.
Associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds.
This is a Mid Cap Equity Oriented Mutual Fund launched in August 09, 2004. It is a fund with high risk and have given a return of 21.75 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 29.3 % |
3 years | 18.76 % |
5 years | 29.36 % |
Here’s the key features of L&T Midcap Fund :
This is one the best performing mid cap fund available in market for 2018. Mid cap fund are in high demand, because the share price of large caps has increased substantially. That results in the prices of the mid-caps, climbing upwards steadily and made them an attractive investment category with high growth potential.
Associated with this fund if you want to invest in funds with high return possibilities, without the volatility of small caps and index-related returns like those of large cap funds.
This is a Mid Cap Equity Oriented Mutual Fund launched in July 9, 2010. It is a fund with moderately high risk and have given a return of 23.40 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 23.72 % |
3 years | 19.47 % |
5 years | 30.77 % |
Here’s the key features of Mirae Asset Emerging Bluechip Fund :
This is one of the best performing Mid cap fund available in market right now. This is a diversified fund with holding in companies of different market capitalization. Multi-cap funds are risky as compared to large cap funds and depend a lot on the ability of fund manager. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.
Small Cap Fund Category
Small cap are small companies of stock market and are all the companies apart from large and mid cap companies in a market .Stocks of small cap companies highly risky and volatile investment instrument.
Funds investing in equities of mid cap are Small Cap Mutual Funds. These are the most popular mutual funds in Small Cap category :
This is a Small Cap Equity Oriented Mutual Fund launched in April 03, 2008. It is a fund with high risk and have given a return of 16.60 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 44.19 % |
3 years | 21.21 % |
5 years | 25.14 % |
Here’s the key features of HDFC Small Cap Fund:
This funds have exponential growth potential and give high returns on investment and is best suited for investors with high risk appetite or for seasoned investors. Also, this best for investors who have very good ideas of mutual funds and the risks associates with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.
This is a Small Cap Equity Oriented Mutual Fund launched in May 12, 2014. It is a fund with high risk and have given a return of 30.98 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 39.73 % |
3 years | 24.25 % |
5 years | NA |
Here’s the key features of L&T Emerging Businesses Fund :
This funds have exponential growth potential and give high returns on investment and is best suited for investors with high risk appetite or for seasoned investors. This is a new fund and have performed really well, giving more than expected return in last 3 years.
Also, this best for investors who have very good ideas of mutual funds and the risks associates with them. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.
Multi Cap Fund Category
Multicap funds are good to start investing in equities for beginners. Because of the flexibility of investing all type of companies irrespective of size, the fund manager can generate better risk-adjusted returns.These are the most popular mutual funds in Small Cap category :
This is a Multi Cap Equity Oriented Mutual Fund launched in April 28, 2014. It is a fund with moderately high risk and have given a return of 28.83 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 23.72 % |
3 years | 19.47 % |
5 years | NA |
Here’s the key features of Motilal Oswal MOSt Focused Multicap 35 Fund : :
This is one of the best performing Multi cap fund available in market right now, even though it launched just 3 years back. This is a diversified fund with holding in companies of different market capitalization. Multi-cap funds are risky as compared to large cap funds and depend a lot on the ability of fund manager. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.
This is a Multi Cap Equity Oriented Mutual Fund launched in May 16, 2000. It is a fund with moderately high risk and have given a return of 18.91 % since its launch. Returns per annum over the years from this fund are :
Duration | Returns |
1 year | 18.94 % |
3 years | 13.38 % |
5 years | 20.79 % |
Here’s the key features of DSP BlackRock Opportunities Fund :
DSP BlackRock Opportunities Fund is one of the best-performing multi-cap funds in the market today. With returns that are competitive with other multi-cap funds and an experienced fund manager.
This is a diversified fund with holding in companies of different market capitalization. Multi-cap funds are risky as compared to large cap funds and depend a lot on the ability of fund manager. Associated with this fund for some good numbers of years for getting benefit of its high return on investment.
Conclusion
So the sector wise betting done by fund manager for investing in Mutual Funds of various categories are :
Large Cap Mutual Funds : So as seen, the most popular mutual funds in Large Cap Fund category are betting in Financial Services Sector followed by Automobile and Consumer Goods Sectors.
Mid Cap Mutual Funds : So as seen, the most popular mutual funds in Mid Cap Fund category are betting in Financial Services Sector followed by Construction Sector.
Small Cap Mutual Funds : So as seen from above, the most popular mutual funds in Large Cap Fund category are betting in Industrial Manufacturing Sector.
Multi Cap Mutual Funds : So as seen from above, the most popular mutual funds in Large Cap Fund category are betting in Financial Services Sector followed by Energy Sector.
Financial services are doing quit well in last couple of years and is the most preferred sector for investment by mutual fund houses. Most of the fund manager includes stocks of companies from this sector in their portfolio, not depending on the type of fund category.
Latest GDP growth figures, released on Wednesday, come as a bit of a relief for Indian Economy which was under going sluggish due to duel reform of Demonetization and GST. The economy grew at 7.2 per cent in the last three months of 2017, slightly faster than expected.
This data shows Indian economy is on recovery track, which will in term bring in more investments from from both Foreign institute and domestic investors in various sectors.So, there is a great future prospects for Mutual Funds in India.
Things to Remember
Returns have always been the basic benchmarks for investor while going for any investments. These indicate how much the fund has lost or gained during particular investment duration.But don’t just run for returns from investment for investing in Mutual Funds.
There lot of things you should look into before selecting a fund which will match your investment goals. Following the 3 things you should always remember before investing in Mutual Funds :
If you a beginner to investment in mutual funds, especially in equity mutual fund, thinking of the small/mid cap mutual funds may not be the best idea for you. These are best for investors who have very good ideas of mutual funds and the risks associates with them.
To ensure that the fund is in good hands, choose a fund house having fund manager with good amount of experience managing small/mid cap funds and associated with these funds for some good numbers of years.
Happy Investing!
Disclaimer: the views expressed here are of the author and do not reflect those of Groww.